IHG Hotels & Resorts delivered strong financial performance in 2024, with revenue from reportable segments rising 7% to $2.3bn and operating profit up 10% to $1.1bn.
Fee business revenue grew 6%, and fee margin improved by 1.9 percentage points to 61.2%. Adjusted EPS climbed 15% to 432.4¢.
IFRS results showed total revenue of $4.9bn (+6%) and a total dividend per share up 10% to 167.6¢. Net debt increased 22% to $2.8bn, driven by shareholder returns.
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Global RevPAR rose 3%, with strong growth in the Americas (+2.5%), EMEAA (+6.6%), and a decline in Greater China (-4.8%). The U.S. saw RevPAR acceleration from 0.6% in H1 to 2.6% in H2. The average daily rate increased by 2.1%, while occupancy improved by 0.6 percentage points.
System growth was robust, with 6.2% gross growth and 4.3% net growth. IHG opened 59,100 rooms (+23% YoY) and signed 106,200 rooms (+34% YoY), expanding its global estate to 987,000 rooms across 6,629 hotels. Q4 saw the second-largest quarter of openings, with 23,600 new rooms.
Operating profit of $1.1bn included a $16m currency impact and a System Fund and reimbursables loss of $83m due to planned fund reductions. Adjusted free cash flow totaled $655m, while adjusted EBITDA grew 9.5% to $1.2bn. The company maintained a net debt-to-EBITDA ratio of 2.3x.
IHG completed an $800m share buyback and paid $259m in dividends, with a new $900m buyback set to return over $1.1bn in 2025. The company remains committed to long-term adjusted EPS growth of 12-15% annually, supported by brand expansion, fee growth, and shareholder returns.
CEO Elie Maalouf highlighted the strong demand for IHG brands, with over 700 new properties added to the pipeline in 2024.
The acquisition of the Ruby brand for ~$116m further strengthens IHG’s urban lifestyle segment. Looking ahead, IHG plans to leverage its global scale, strong financial position, and brand strength to drive continued growth in 2025 and beyond.
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