Half Year Results to 30 June 2024

¹Definitions for non-GAAP measures can be found in the ‘Key performance measures and non-GAAP measures’ section, along with reconciliations of these measures to the most directly comparable line items within the Interim Financial Statements.

Trading and revenue

• H1 Global RevPAR¹ +3.0% (Q2 +3.2%), Americas +1.7% (Q2 +3.3%), EMEAA +7.5% (Q2 +6.3%) and Greater China -2.6% (Q2 -7.0%); US RevPAR positive from April, and +2.5% for Q2
• Average daily rate +2.0%, occupancy +0.6%pts
• Total gross revenue¹ $16.1bn, +6%

System size and pipeline

• Gross system growth +4.9% YOY; net system growth +3.2% YOY
• Opened 18.0k rooms (126 hotels) in H1; global estate of 955k rooms (6,430 hotels)
• Signed 57.1k rooms (384 hotels) in H1, +67% YOY in total (or +15% adjusting for Iberostar and NOVUM); global pipeline of 330k rooms (2,225 hotels), +15% YOY
• Opened 11.7k rooms (80 hotels) in Q2, representing good sequential improvement on 6.3k in Q1
• Signed 39.4k rooms (255 hotels) in Q2, compared to 17.7k in Q1; Q2 signings were up +123% YOY in total, or up +23% adjusting for Iberostar and NOVUM

Margin and profit

• Fee margin¹ 60.6%, up +1.8%pts driven by trading performance and new revenue from sale of loyalty points
• Operating profit from reportable segments¹ of $535m, up +12%, includes a $10m adverse currency impact
• Reported operating profit of $525m includes System Fund and reimbursables loss of $10m (2023: $87m profit) driven by planned reduction of prior System Fund surplus, and $nil exceptional items (2023: $18m exceptional profit)
• Adjusted EPS¹ of 203.9¢, up +12%, includes increased adjusted interest expense¹ of $79m (2023: $58m), an adjusted tax¹ rate of 27% (2023: 25%) and a 5.6% reduction in the weighted average number of ordinary shares

Cash flow and net debt

• Net cash from operating activities of $162m (2023: $315m) and adjusted free cash flow¹ of $132m (2023: $277m), with the decrease driven by planned reduction of prior System Fund surplus
• Net debt increase of $510m since start of the year, driven by $539m of shareholder returns through dividend payments and share buybacks; $3m foreign exchange adverse impact on net debt
• Trailing 12-month adjusted EBITDA¹ of $1,140m, +14% YOY; net debt:adjusted EBITDA ratio of 2.4x

Shareholder returns

• $800m share buyback programme for 2024 was 47% completed as at 30 June
• Interim dividend +10% to 53.2¢; together with buybacks, on track to return over $1bn to shareholders in 2024

Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts, said:
“With thanks to our teams around the world, we are making great progress on the delivery of our strategic priorities and the clear framework to drive future value creation that we set out in February. RevPAR growth accelerated in the latest quarter, reflecting a strong US rebound in Q2 and the breadth of our global footprint, and development activity continues to increase. Together with system growth, notable margin expansion and the benefit of returning surplus capital through buybacks, adjusted EPS growth was +12%.

We celebrated 126 hotel openings in the half and the signing of a record-breaking 384 properties, equivalent to more than two a day. These included the first six openings and 118 signings from the NOVUM Hospitality agreement, which doubles our presence in the important and attractive German market. After growth of +7% in Q1, a very busy Q2 saw +23% more signings year‑on‑year or a more than doubling when including NOVUM, and this keeps us on track for net system size growth expectations.

We continue to strengthen our enterprise to position IHG as first choice for guests and owners, further improving and growing our brands, driving loyalty contribution, rolling out new hotel technology and increasing our ancillary fee streams. Our cash generation and strong balance sheet continue to support further investment in growth, and we are confident in capitalising on our scale, leading positions and the attractive, long-term demand drivers for our markets.”

Download the full announcement of our 2024 interim results here.