IHG launches $950m share buyback as FY profit, revenue rise

(Sharecast News) - InterContinental Hotels reported a jump in full-year operating profit and revenue on Tuesday, hiked its dividend and announced a new $950m share buyback, amid strength in the EMEEA region. In the year to the end of December 2025, operating profit rose 13% to $1.3bn, with total revenue 5% higher at $5.2bn,

Global revenue per available room (RevPAR) grew 1.5%, with EMEEA seeing growth of 4.6%. Growth in the Americas was 0.3%, while Greater China suffered a 1.6% decline in RevPAR.

IHG said it opened 65,1000 rooms during the period, up 10% on the year, across a record 443 hotels.

The company - which owns brands Holiday Inn, Kimpton, Hotel Indigo and Crowne Plaza, among others - announced a final dividend of 125.9 cents, taking the total dividend for the year to 184.5 cents, up 10% on the previous year.

Chief executive Elie Maalouf said the company had delivered an "excellent" financial performance "in the face of some turbulent trading conditions".

"Our cash generation and strong balance sheet support our investments to drive growth, and we continue to sustainably increase our ordinary dividend as well as regularly return surplus capital through share buybacks," he said.

"The board is pleased to propose a fourth consecutive year of increasing the dividend by +10% and the launch of a new $950m share buyback programme. Cumulatively over five years, this will mean IHG has returned more than $5bn to our shareholders. Supported by attractive long-term industry demand drivers and our proven ability to capitalise on our scale and diverse fee streams across segments and geographies, we enter 2026 with confidence."

At 0950 GMT, the shares were up 0.7% at 145.45p.

Russ Mould, investment director at AJ Bell, said: "InterContinental Hotels has dangled two big rewards to get investors to check in with the business in the form of a double-digit dividend increase and substantial new share buyback.

"IHG's ability to demonstrate generosity towards shareholders reflects a strong showing in Europe, the Middle East and East Asia which reflects a better-than-expected 2025 showing for the group as whole.

"It wasn't all good news. Trading in the Americas was only a little better than flat and its Chinese business remains stuck in reverse.

"Overall, this was a solid showing from IHG, particularly given the softness in its largest market. The company will be hoping the World Cup can help revive a US tourist trade which has been affected by recent tensions across the Atlantic.

"Because InterContinental only owns a small proportion of its hotels and instead focuses on franchising and managing premises, it can generate strong margins and grow without employing lots of capital. The company is taking advantage of that flexibility as it develops a growing pipeline of new sites."