SECURITIES
AND EXCHANGE COMMISSION
Washington
DC 20549
FORM 6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 AND 15d-16
OF
THE
SECURITIES EXCHANGE ACT OF 1934
For 08
May 2025
InterContinental Hotels Group PLC
(Registrant's
name)
1
Windsor Dials, Arthur Road, Windsor, SL4 1RS, United
Kingdom
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F
Form 40-F
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EXHIBIT
INDEX
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99.1
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2025
First Quarter Trading Update dated 08 May 2025
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Exhibit
No: 99.1
InterContinental Hotels Group PLC
2025 First Quarter Trading Update
8 May 2025
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Global RevPAR +3.3%, driven by globally diverse footprint and
growth in each of Business, Leisure and Groups; strong quarter of
development performance, with openings and signings well ahead of
last year;whilst at an early stage, on track to meet full year
consensus profit expectations
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Highlights
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●
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Q1
global RevPAR +3.3%, with Americas +3.5%, EMEAA +5.0% and Greater
China -3.5%
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●
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Q1
global rooms revenue on a comparable basis saw Business +3%,
Leisure +2% and Groups +5%
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●
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Average
daily rate +2.2% and occupancy +0.6%pts
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●
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Gross
system size growth accelerated to +7.1% YOY, +1.5% YTD; opened
14.6k rooms (86 hotels) in Q1, more than double the same period
last year
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●
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Net
system size growth +4.3% YOY, 0.0% YTD (or +5.0% YOY and +0.7% YTD
excluding the impact of removing rooms previously affiliated with
The Venetian Resort Las Vegas); global system of 987k rooms (6,668
hotels)
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●
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Signed
25.8k rooms (158 hotels) in Q1, or 20.2k excluding the Ruby brand
acquisition, compared to 17.7k in the same quarter last year;
global pipeline of 334k rooms (2,265 hotels), +9.4%
YOY
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●
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$324m
of 2025's $900m share buyback programme completed to date, reducing
the share count by 1.9%
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Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts,
said:
"We had strong trading performance and development activity for our
world class brands in Q1, despite increased volatility in the macro
environment. Global RevPAR grew +3.3%, reflecting the strength of
our globally diverse footprint and increases across each of our
three demand drivers of Business, Leisure and Groups. Americas
RevPAR increased by +3.5% led by continued growth in the US, and
our EMEAA region also had strong performance, up +5.0%. In Greater
China, a -3.5% RevPAR reduction was similar to the previous
quarter, as we came up against strong comparatives and further
increases in outbound leisure travel.
We celebrated the opening of 14.6k rooms across 86 hotels in the
quarter, well over double the same period last year. A strong
signings performance of 25.8k rooms across 158 properties was also
well ahead of 2024, leading to a +9.4% year-on-year increase in our
pipeline. This included 5.7k rooms across 30 hotels from our
acquisition in February of premium urban lifestyle brand, Ruby.
Since acquiring the brand, a further two Ruby signings have already
been added. Demand for quick-to-market conversions to IHG's brands
and enterprise platform continues to be high, representing around
60% of openings and 40% of organic signings in the
quarter.
Looking ahead, while noting that some forward economic indicators
have softened, our comparable on-the-books global revenue for Q2
continues to show growth on the same position a year ago. Our
ability to capture demand across geographies and chain scales, as
well as being heavily weighted to domestic stay occasions, are
resilient strengths of our business. As a result, while still
early, we remain on track to meet full year consensus profit
expectations.
The outlook of attractive long-term structural growth drivers for
both demand and supply remain unaltered for the travel industry and
for IHG in particular. The power of our growth algorithm comes from
the compounding nature of increasing fee revenues through the
combination of RevPAR, system expansion and ancillary fee streams,
which in turn helps to grow margins and, with our strong cash
generation, allows us to reinvest in our business and return
surplus capital to shareholders. Notwithstanding shorter term
macro-economic uncertainties, we remain confident in the strength
and resilience of IHG's enterprise platform and our ability to
capitalise further on our scale, leading positions and the
fundamental growth drivers for our markets."
Regional performance
Americas
Q1 RevPAR grew by +3.5% for the region as a whole and was also up
+3.5% in the US, ahead of FY 2024's +2.5% for the region and +1.7%
in the US. Occupancy for the region was up +0.7%pts to 63.4% for
the quarter, and rate was up +2.4%. Last year's trends by demand
driver continued, with Q1 rooms revenue on a comparable basis
strongest for Groups at +6%, Business was up +4% and Leisure was
+2% on 2024 levels. The first two months of the quarter were
strongest, whereas the rolling 8 weeks to Saturday 3 May in
aggregate, which also normalises for the shift in timing of Easter
between March and April, has seen RevPAR broadly flat. The current
position of revenue on-the-books for comparable hotels for the
balance of Q2 is also currently broadly flat. We remain confident
for growth beyond, as economic uncertainty subsides and industry
fundamental tailwinds prevail.
Gross system growth was +3.4% YOY and +0.8% YTD, with 4.0k rooms
(31 hotels) opened in the quarter which was +30% more than last
year. Net system size change was -0.1% YOY and -1.6% YTD. Excluding
the impact of removing 7.1k rooms that were previously affiliated
to IHG's system with The Venetian Resort Las Vegas, net system size
growth was +1.3% YOY and broadly flat YTD. There were 4.5k rooms
(42 hotels) added to the pipeline in the quarter, including 12
hotels signed across the Holiday Inn Brand Family, and 18 across
our extended stay brands. With further progress in the quarter, our
midscale conversion brand, Garner, now has 59 open and pipeline
hotels in the region.
EMEAA
We saw another quarter of strong demand for this diverse region
overall. Q1 RevPAR was up +5.0%, compared with growth of +6.6%
achieved for FY 2024. Occupancy for the quarter was up +0.6%pts to
66.7%, and rate up +4.0%. By major geographic markets within the
region, RevPAR ranged from broadly flat in the UK, to up +5.6% in
Continental Europe, +6.2% in the Middle East and +6.8% in East Asia
& Pacific. The latter continued to benefit from increased
levels of inbound leisure travel from Greater China which
contributed to strong double-digit growth in numerous countries, on
top of very strong increases last year.
Gross system growth was +11.6% YOY and +2.3% YTD, with 6.2k rooms
(30 hotels) opened in the quarter which was almost six-fold last
year. Openings included 1.5k rooms from a further 13 conversions as
part of the initial April 2024 NOVUM Hospitality agreement, taking
the total converted to date to 11.7k rooms and 71 hotels. Net
system size growth was +9.8% YOY and +1.7% YTD. There were 12.9k
rooms (72 hotels) added to the pipeline, including 5.7k from the
acquisition of the Ruby brand in February 2025 (comprising 3.5k
rooms across 20 open hotels that will begin to be added into IHG's
system this year, and 2.2k rooms across 10 hotels in the Ruby
pipeline at the time of acquisition). There was also a further 0.6k
rooms added to the pipeline from the first two Ruby hotel signings
since the acquisition. Conversions represented the majority of room
openings and 45% of organic room signings in the quarter. Signings
included 3 further Garner properties as it develops across the
region, and 8 signings across the voco and Vignette Collection
brands as their rollouts continue.
Greater China
Q1 RevPAR was down -3.5% which was broadly in line with the
previous quarter and compares to the -4.8% reduction for FY 2024.
Looking forward from here, there is an easing in the strong
comparatives from the prior resurgent return of post-Covid travel
demand. We remain encouraged of further improvement to come, and by
the continued attractiveness of the longer-term demand drivers for
the region. Occupancy for the quarter was up +0.4%pts to 52.8%,
while rate was down -4.3%. Tier 1 cities saw RevPAR down -2.2%,
whilst Tier 2-4 cities were -5.7% with further impact from
increased outbound leisure travel, though rooms revenue on a
comparable basis saw Leisure broadly flat for the region
overall.
Record-breaking momentum in development activity has continued.
Gross system growth was +11.6% YOY and +2.3% YTD, with 4.4k rooms
(25 hotels) opened in the quarter which was more than double the
same quarter last year and included the milestone of exceeding 800
open hotels in the region. Net system size growth was +9.1% YOY and
+1.8% YTD. There were 8.5k rooms (44 hotels) added to the pipeline,
also well ahead of the same quarter last year.
Share buyback progress
As announced at the time of reporting our 2024 full year results on
18 February, a new $900m share buyback programme is returning
surplus capital to shareholders in 2025. This follows the $800m
programme in 2024, $750m in 2023 and the $500m programme announced
in 2022, which already reduced the total number of voting rights in
the Company by 4.6%, 6.1% and 5.0%, respectively. The 2025
programme is 36% complete with $324m (£251m) having been
cumulatively spent to date, repurchasing 2.9 million shares. The
2025 programme to date has therefore reduced the total number of
voting rights in the Company by a further 1.9% to 155.6 million as
at market close on Wednesday 7 May 2025.
The $900m share buyback programme, together with the anticipated
sustainable growth in ordinary dividend payments which IHG has
increased at a rate of 10% a year for each of the last three years,
would result in over $1.1bn being returned to shareholders in 2025.
This is equivalent to 5.9% of IHG's $19.8bn (£15.8bn) market
capitalisation at the start of 2025, and 6.5% of IHG's most recent
$17.9bn (£13.4bn) market capitalisation.
Additional comments on current trading conditions and 2025
outlook
As noted above, whilst we are still at an early stage of the
financial year, we are on track to meet current full year 2025
consensus profit expectations. This would result in another year of
IHG delivering on our growth algorithm.
As an asset-light, fee-based, predominantly franchised business
model, IHG has no material direct exposure to tariffs on the fees
charged to and therefore the revenues received from hotel owners,
or on the operating costs that IHG incurs. As part of the many
benefits provided to hotel owners of joining IHG's enterprise
platform, we use our scale to help reduce owner costs through
procurement programmes for hotel goods and services, and we are
actively working with owners and our diversified and typically
localised supply chains to further enhance these benefits. IHG does
not directly assume supply chain risk for these programmes, and
instead focuses on providing resilient and responsible supply chain
options for owners.
Periods of macro-economic uncertainties and challenges can lead to
broader impacts on business and consumer confidence, which can in
turn impact travel spending patterns in the shorter-term.
Nevertheless, we are encouraged by the global revenue on-the-books
for Q2 as described above, and we remain confident that the
attractive long-term structural growth drivers for both demand and
supply remain unaltered. IHG's fee-based income streams, together
with diverse demand drivers across geographies, chain scales and
stay occasions, mean IHG is well positioned to remain resilient
through varying cycles. We are also ensuring our cost base remains
highly efficient and agile, whilst continuing to make cost and
capital expenditure investments that drive long-term growth. No
material changes are currently envisaged to any areas of IHG's
investment priorities.
IHG's Board expects the company to continue its strong track record
of generating substantial capacity to support the investment plans
that drive growth, to fund a sustainably growing ordinary dividend,
and to routinely return surplus capital to shareholders. IHG has a
consistent capital allocation approach, targeting a leverage ratio
within a range of 2.5-3.0x net debt:adjusted EBITDA and to maintain
an investment grade credit rating. As previously described, the
$900m share buyback programme for 2025, together with our other
investments including the acquisition of the Ruby brand, are
expected to result in leverage at the end of 2025 to be comfortably
around the lower end of our target range.
For further information, please contact:
Investor
Relations: Stuart Ford
(+44 (0)7823 828 739); Kate Carpenter (+44 (0)7825 655
702);
Joe Simpson (+44 (0)7976 862 072)
Media
Relations:
Neil Maidment (+44 (0)7970 668 250); Mike Ward (+44 (0)7795 257
407)
Conference call for analysts and institutional
investors:
Elie Maalouf, Chief Executive Officer, and Michael Glover, Chief
Financial Officer, will host a conference call commencing at 9:00am
(London time) today, 8 May 2025. A listen-only audio webcast can be
accessed at https://www.investis-live.com/ihg/67e3c7150a60c30015481a28/martn or
via www.ihgplc.com/en/investors/results-and-presentations.
Analysts and institutional investors wishing to ask questions
should use the following dial-in details for a Q&A
facility:
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UK:
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020
3936 2999
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US:
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646 233
4753
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Other
international numbers:
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Click here
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Passcode:
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437852
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An archived replay is expected to be available within 24 hours and
will remain available, accessed at www.ihgplc.com/en/investors/results-and-presentations.
Appendix 1: RevPARa movement
summary at constant exchange rates (CER)
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Q1 2025 vs 2024
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RevPAR
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ADR
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Occupancy
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Global
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+3.3%
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+2.2%
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+0.6%pts
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Americas
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+3.5%
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+2.4%
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+0.7%pts
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EMEAA
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+5.0%
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+4.0%
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+0.6%pts
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Greater
China
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-3.5%
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-4.3%
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+0.4%pts
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Appendix 2: RevPARa movement
at CER vs actual exchange rates (AER)
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Q1 2025 vs 2024
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CER (as above)
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AER
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Difference
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Global
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+3.3%
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+1.9%
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-1.4%pts
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Americas
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+3.5%
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+2.4%
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-1.1%pts
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EMEAA
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+5.0%
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+3.0%
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-2.0%pts
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Greater
China
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-3.5%
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-4.5%
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-1.0%pts
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Appendix 3: System and pipeline summary of Q1 2025 YTD and YOY
growths, and closing positions (rooms)
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System
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Pipeline
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Openings
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Removalsb
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Net
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Total
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YTD%
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YOY%
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YTD%
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YOY%
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Signings
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Total
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Reported
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Reported
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Adjustedb
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Adjustedb
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Global
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14,556
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(15,048)
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(492)
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986,633
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0.0%
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+4.3%
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+0.7%
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+5.0%
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25,823
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333,992
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Americas
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4,028
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(12,556)
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(8,528)
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519,466
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-1.6%
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-0.1%
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-0.3%
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+1.3%
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4,472
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108,364
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EMEAA
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6,172
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(1,581)
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4,591
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271,065
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+1.7%
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+9.8%
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+1.7%
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+9.8%
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12,862
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109,184
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Greater
China
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4,356
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(911)
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3,445
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196,102
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+1.8%
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+9.1%
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+1.8%
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+9.1%
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8,489
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116,444
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a. RevPAR
(revenue per available room), ADR (average daily rate) and
occupancy are on a comparable basis, based on comparability as at
31 March 2025 and includes hotels that have traded in all months in
both the current and the prior year. The principal exclusions in
deriving these measures are new openings, properties under major
refurbishments and removals. See 'Use of key performance measures
and non-GAAP measures' in IHG's full year and half year results
announcements for further information on the
definitions.
b. Removals
include 7,092 rooms previously affiliated with the Venetian Resort
Las Vegas which exited IHG's system in January 2025. The adjusted
measures of YTD system size growth and YOY system size growth are
presented for the Americas region and globally to show the impact
of if these rooms had been excluded from the comparable opening
position.
Website:
The full release and supplementary data will be available
on www.ihgplc.com/en/investors/results-and-presentations from
7:00am (London time) on 8 May 2025.
About IHG Hotels & Resorts:
IHG Hotels & Resorts (tickers:
LON:IHG for Ordinary Shares; NYSE:IHG for ADRs) is a global
hospitality company, with a purpose to provide True Hospitality for
Good.
With a family of 20 hotel brands and IHG
One Rewards, one of the world's
largest hotel loyalty programmes with over 145 million members, IHG
has more than 6,600 open hotels in over 100 countries, and a
development pipeline of more than 2,200
properties.
-
Luxury & Lifestyle: Six
Senses, Regent
Hotels & Resorts, InterContinental
Hotels & Resorts, Vignette
Collection, Kimpton
Hotels & Restaurants, Hotel
Indigo
-
Premium: voco
hotels, Ruby, HUALUXE
Hotels & Resorts, Crowne
Plaza Hotels & Resorts, EVEN
Hotels
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Essentials: Holiday
Inn Express, Holiday
Inn Hotels & Resorts, Garner
hotels, avid
hotels
- Suites: Atwell
Suites, Staybridge
Suites, Holiday
Inn Club Vacations, Candlewood
Suites
- Exclusive
Partners: Iberostar
Beachfront Resorts
InterContinental Hotels Group PLC is the Group's holding company
and is incorporated and registered in England and Wales.
Approximately 385,000 people work across IHG's hotels and corporate
offices globally.
Visit us online for more about our hotels
and reservations and IHG
One Rewards. To
download the IHG One Rewards app, visit the Apple
App or Google
Play stores.
For our latest news, visit our Newsroom and
follow us on LinkedIn.
Cautionary note regarding forward-looking statements:
This announcement contains certain forward-looking statements as
defined under United States law (Section 21E of the Securities
Exchange Act of 1934) and otherwise. These forward-looking
statements can be identified by the fact that they do not relate
only to historical or current facts. Forward-looking statements
often use words such as 'anticipate', 'target', 'expect',
'estimate', 'intend', 'plan', 'goal', 'believe' or other words of
similar meaning. These statements are based on assumptions and
assessments made by InterContinental Hotels Group PLC's management
in light of their experience and their perception of historical
trends, current conditions, expected future developments and other
factors they believe to be appropriate. By their nature,
forward-looking statements are inherently predictive, speculative
and involve risk and uncertainty. There are a number of factors
that could cause actual results and developments to differ
materially from those expressed in, or implied by, such
forward-looking statements. The main factors that could affect the
business and the financial results are described in the 'Risk
Factors' section in the current InterContinental Hotels Group PLC's
Annual report and Form 20-F filed with the United States Securities
and Exchange Commission.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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InterContinental Hotels Group PLC
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(Registrant)
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By:
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/s/
C. Bates
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Name:
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C.
BATES
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Title:
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SENIOR
ASSISTANT COMPANY SECRETARY
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Date:
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08 May
2025
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