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IHG

InterContinental Hotels Group PLC

IHG

InterContinental Hotels Group PLC • NYSE
$134.18 ▼ -1.08% (-1.47)
Market Cap $20.97 B
52w High $137.25
52w Low $94.78
Dividend Yield 1.73%
P/E 28.43
Volume 92.86K
Outstanding Shares 156.31M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2025 $2.541B ▼ $0 ▼ $473.031M ▲ 18.618% ▲ $3.03 ▲ $800.825M ▲
Q4-2024 $2.601B ▲ $1.914B ▲ $281M ▼ 10.804% ▼ $1.77 ▼ $478M ▼
Q2-2024 $2.322B ▲ $49M ▼ $347M ▲ 14.944% ▲ $2.1 ▲ $594M ▲
Q4-2023 $1.948B ▼ $853M ▲ $291M ▼ 14.938% ▼ $1.76 ▼ $534M ▼
Q2-2023 $2.226B $1M $459M 20.62% $2.64 $638M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $619M ▼ $4.938B ▲ $7.578B ▲ $-2.644B ▼
Q4-2024 $1.015B ▲ $4.748B ▲ $7.056B ▲ $-2.312B ▼
Q2-2024 $858M ▼ $4.576B ▼ $6.777B ▲ $-2.204B ▼
Q4-2023 $1.273B ▲ $4.813B ▲ $6.759B ▲ $-1.95B ▼
Q2-2023 $713M $4.152B $5.97B $-1.824B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $473.031M ▲ $314.682M ▼ $-148.264M ▼ $-619.278M ▼ $-397M ▲ $303.587M ▼
Q4-2024 $281M ▼ $562M ▲ $-41M ▲ $-329M ▲ $-797M ▼ $547M ▲
Q2-2024 $347M ▲ $162M ▼ $-58M ▲ $-565M ▼ $-240.5M ▼ $148M ▼
Q4-2023 $291M ▼ $578M ▲ $-94M ▼ $143M ▲ $318.5M ▲ $561M ▲
Q2-2023 $459M $315M $-43M $-560M $-140M $304M

Five-Year Company Overview

Income Statement

Income Statement IHG’s income statement shows a business that has largely recovered from the pandemic shock and is now back to healthy levels of sales and profit, but with some recent pressure on margins. Revenue has climbed steadily over the last few years, reflecting the rebound in global travel and the strength of its brand portfolio. Profitability has improved from losses during the travel downturn to consistent profits, with strong earnings before interest and depreciation. However, the most recent year shows that while sales rose, profits did not grow at the same pace, suggesting higher costs, mix shifts, or investment spending are squeezing margins a bit. Overall, this is a mature, profitable, cyclical business that has regained its footing, but it is not immune to cost inflation and changes in travel demand.

Balance Sheet

Balance Sheet IHG’s balance sheet is typical of an “asset‑light” hotel group, but it looks unusual compared with more traditional companies. The company runs with relatively modest total assets, a fair amount of debt, and a negative equity position. Negative equity is often the result of years of buybacks and distributions combined with an asset‑light, franchise‑heavy model, rather than a sign of imminent distress; but it does mean the business is more financially geared and sensitive to downturns. Cash levels are solid but lower than during the crisis years, when the company held more liquidity as a buffer. Debt has come down from its peak but remains significant, so ongoing access to financing markets and steady cash generation are important watchpoints, especially in a cyclical industry like travel.

Cash Flow

Cash Flow Cash flow is one of IHG’s clear strengths. Operating cash generation has recovered well from the pandemic and now comfortably covers the company’s relatively light capital spending needs. Because the model is based mainly on management and franchise fees rather than owning hotels, IHG does not need to invest heavily in physical assets, which supports healthy free cash flow. This strong and relatively predictable cash inflow gives the company flexibility to service debt, return capital to shareholders, and continue investing in technology and brand development, though it would still be vulnerable in a severe, prolonged travel downturn.

Competitive Edge

Competitive Edge IHG holds a strong competitive position in global hospitality, built on three main pillars: brands, loyalty, and scale. Its portfolio spans well‑known names such as Holiday Inn, InterContinental, Kimpton, and several luxury and lifestyle brands, allowing it to serve many different customer segments from midscale to high‑end. The large, global rewards program ties guests to the ecosystem, encourages direct booking, and makes the network more attractive to hotel owners. The asset‑light franchise and management model allows faster expansion with less capital than owning hotels outright, and the global footprint gives the group meaningful scale advantages in marketing, technology, and distribution. The flip side is exposure to intense competition from other global chains and from alternative accommodation platforms, and sensitivity to global travel cycles and geopolitical or economic shocks.

Innovation and R&D

Innovation and R&D IHG’s “R&D” is mainly about technology, data, and new concepts rather than lab research, and it has been leaning into this quite aggressively. The company has invested heavily in its central reservation and loyalty platforms, with the IHG One Rewards app becoming a key channel for direct bookings and personalized guest experiences. It is experimenting with advanced data tools and generative AI, including a travel‑planning assistant built with a major cloud provider, to simplify trip planning and tailor offers to individual guests. IHG is also rolling out next‑generation digital features like room‑attribute selection, in‑app personalization, improved in‑hotel connectivity, and partnerships that enhance in‑room entertainment. Alongside technology, it is innovating through new brands, upgraded luxury and lifestyle offerings, and sustainability initiatives. The main risk is execution: these projects must deliver real guest and owner value to justify the ongoing spending.

Summary

Overall, IHG looks like a mature, asset‑light hotel group that has navigated the post‑pandemic recovery well and is leaning on its brands, loyalty program, and technology to drive long‑term growth. The business has returned to solid profitability, with robust cash generation and relatively low capital needs, though recent margin pressure suggests costs and mix will be important to monitor. The balance sheet is highly geared and features negative equity, which is structurally common for this kind of model but still increases sensitivity to downturns and funding conditions. Strategically, IHG’s scale, diversified brand portfolio, and large loyalty base form a meaningful competitive moat, and its push into digital personalization, AI‑driven tools, and higher‑end brands could support future growth if executed well. At the same time, the company remains exposed to global travel cycles, intense competition, and macroeconomic risks, so its ability to sustain guest demand and protect margins through different stages of the cycle will be key to its long‑term performance.

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