InterContinental Hotels Group PLC (IHG) is a global leader in the hospitality industry, operating a diverse portfolio of 19 hotel brands across various market segments, from luxury to midscale. Headquartered in Windsor, Berkshire, UK, IHG manages, franchises, and owns hotels worldwide, catering to millions of guests and fostering long-standing relationships with thousands of hotel owners.
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The company’s purpose, “True Hospitality for Good,” drives its mission to be the hotel company of choice for guests and owners by delivering exceptional guest experiences and sustainable growth. IHG’s enterprise platform supports a system of 6,629 hotels with 987,125 rooms as of December 31, 2024, and a pipeline of 2,969 hotels with 426,052 rooms. The company’s strategy focuses on relentless growth, brand excellence, a leading commercial engine, and responsible business practices, ensuring value for stakeholders, including guests, owners, employees, and communities.
Company Profile
IHG operates primarily through a franchise and management model, with 86.1% of its system size franchised, 12.8% managed, and 1.1% owned, leased, or managed lease hotels. This asset-light model allows IHG to scale efficiently while generating revenue through franchise fees, management fees, and owned hotel operations. The company’s global reach spans key regions, including the Americas, Europe, Middle East, Asia, and Africa (EMEAA), and Greater China, with a strong presence in both mature and emerging markets. IHG’s loyalty program, IHG One Rewards, enhances guest engagement, offering personalized experiences and driving repeat business. The company is committed to sustainability, with initiatives like the IHG Green Engage platform to reduce energy, water, and waste, and a goal to reduce carbon emissions per available room compared to 2019 levels.
In 2024, IHG reported a profit for the year of $628 million, with total revenue of $4,626 million and an operating profit of $897 million. The company’s strong financial performance is underpinned by its focus on operational efficiency, brand innovation, and strategic investments in technology and sustainability. IHG’s governance framework, led by a diverse Board of Directors, ensures robust oversight and alignment with long-term strategic objectives. The company’s commitment to diversity, inclusion, and responsible business practices further strengthens its reputation as a trusted global hospitality leader.
Business Segments
IHG operates through four reportable segments, each contributing to its global operations and revenue. Below is a detailed breakdown of these segments, including their revenue contributions for 2024:
| Segment | Description | Revenue ($m) | Revenue Breakup (%) |
|---|---|---|---|
| Americas | Encompasses IHG’s operations in the United States, Canada, Mexico, and Latin America. This segment is the largest contributor to IHG’s revenue, driven by a strong presence of franchised and managed hotels. In 2024, the Americas opened 224 hotels (22,094 rooms) and signed 430 hotels (45,719 rooms). RevPAR grew by 2.6% year-on-year, with the U.S. up by 1.8%, Mexico by 10.6%, and Canada by 3.3%. | 2,894 | 62.5% |
| EMEAA (Europe, Middle East, Asia, and Africa) | Covers a diverse range of markets, including Europe, the Middle East, and Asia (excluding Greater China). This segment saw significant growth, with 88 hotels opened (14,534 rooms) and 196 hotels signed (33,589 rooms). RevPAR increased by 7.8%, driven by strong leisure travel demand in Japan (15.0%) and Thailand (21.5%). | 1,142 | 24.7% |
| Greater China | Focuses on mainland China, Hong Kong SAR, Macau SAR, and Taiwan. In 2024, this segment opened 59 hotels (12,368 rooms) and signed 88 hotels (17,392 rooms). RevPAR grew by 7.4%, reflecting strong domestic travel demand and recovery in resort locations. | 356 | 7.7% |
| Central | Includes global functions such as marketing, technology, and corporate operations. This segment supports IHG’s enterprise platform and incurs central overhead costs. It reported a $72 million operating loss in 2024, a $35 million decrease year-on-year, due to investments in growth initiatives. | 234 | 5.1% |
Total Revenue (2024): $4,626 million
The Americas dominate IHG’s revenue due to the region’s large hotel portfolio and high demand for both business and leisure travel. EMEAA’s growth reflects IHG’s expansion into high-growth markets, while Greater China’s performance highlights its potential as a key growth market. The Central segment, while not revenue-generating, is critical for supporting IHG’s global operations and brand consistency.
Products and Services
IHG offers a range of hospitality services through its hotel operations, loyalty programs, and ancillary services. Below is a detailed list of its offerings, with revenue contributions where applicable:
| Product/Service | Description | Revenue ($m) | Revenue Breakup (%) |
|---|---|---|---|
| Franchise Fees | Fees earned from franchised hotels, including royalty fees based on a percentage of room revenue. This is IHG’s largest revenue stream, driven by its asset-light model. In 2024, franchise fees were a significant portion of fee business revenue. | 1,987 | 43.0% |
| Management Fees | Fees from managed hotels, including base and incentive management fees. These are charged for operational and brand support provided to hotel owners. | 456 | 9.9% |
| Owned, Leased, and Managed Lease Hotels | Revenue from hotels owned or leased by IHG, including room revenue and food and beverage sales. This segment represents a smaller portion due to IHG’s asset-light focus. | 1,112 | 24.0% |
| IHG One Rewards | A loyalty program offering points-based rewards, personalized experiences, and exclusive benefits. Revenue includes co-branding agreements and points sales, contributing to ancillary fee streams. | 398 | 8.6% |
| Technology and Support Services | Includes technical service fees and support for hotel operations, such as the IHG Green Engage platform and property management systems. | 234 | 5.1% |
| Other Revenue | Includes guest deposits and other ancillary services, such as co-branded credit card agreements and marketing partnerships. | 439 | 9.5% |
Total Revenue (2024): $4,626 million
IHG’s franchise model drives the majority of its revenue, reflecting its strategy to expand through partnerships with hotel owners. Management fees and owned hotel operations complement this, while IHG One Rewards enhances guest retention and drives higher-value customers. Technology and support services are critical for maintaining brand standards and operational efficiency.
Company History
InterContinental Hotels Group PLC was incorporated in 2004 as a public limited company in England and Wales, with its registered office at 1 Windsor Dials, Arthur Road, Windsor, Berkshire SL4 1RS. The company’s history traces back to its predecessor, Six Continents PLC, which was formed through the merger of Bass PLC and InterContinental Hotels & Resorts. The separation of Six Continents’ hotel and pub businesses in 2003 led to the creation of IHG as a standalone hospitality company.
Key milestones in IHG’s history include:
- 1946: Founding of InterContinental Hotels, marking the beginning of IHG’s luxury brand portfolio.
- 1988: Acquisition of Holiday Inn, expanding IHG’s presence in the midscale segment.
- 2003: Separation from Six Continents PLC, establishing IHG as an independent entity focused on hotels.
- 2004: Incorporation of IHG as a public limited company, listed on the London Stock Exchange and later on the NYSE via American Depositary Shares (ADSs).
- 2012: Launch of the IHG Green Engage platform to enhance sustainability across its hotel network.
- 2018: Acquisition of Regent Hotels, strengthening IHG’s luxury portfolio.
- 2024: Celebrated opening 371 hotels and signing 714 hotels, equivalent to nearly two signings per day. Key achievements included the return of Regent Hotels to the Americas with Regent Santa Monica Beach and the launch of the world’s tallest residential tower, Six Senses Residences Dubai Marina.
IHG’s evolution has been marked by strategic acquisitions, brand innovation, and a shift toward an asset-light model, enabling global expansion while maintaining financial discipline. The company’s focus on sustainability and technology has positioned it as a leader in the hospitality industry.
Brands
IHG’s portfolio comprises 19 brands, categorized into luxury, premium, mainstream, and specialized segments, each designed to cater to diverse guest needs and owner preferences. These brands drive IHG’s global presence and revenue through franchise, management, and owned hotel operations. Below is a detailed list of IHG’s brands with comprehensive details and their estimated revenue contributions for 2024, derived from the report’s data on hotel openings, room counts, and segment performance.
| Brand | Description | Revenue ($m) | Revenue Breakup (%) |
|---|---|---|---|
| Holiday Inn Brand Family | Includes Holiday Inn, Holiday Inn Express, and Holiday Inn Resort. The largest contributor to IHG’s portfolio, accounting for 44% of global hotel openings and signings in 2024. Known for reliable, family-friendly accommodations in the midscale segment. | 2,036 | 44.0% |
| InterContinental Hotels & Resorts | A luxury brand offering sophisticated experiences in iconic destinations. In 2024, several properties received Condé Nast Traveler Readers’ Choice Awards and Michelin Keys. | 555 | 12.0% |
| Crowne Plaza | A premium brand targeting business travelers with modern amenities and meeting facilities. Focused on enhancing group and corporate demand. | 370 | 8.0% |
| Hotel Indigo | A boutique brand offering unique, locally inspired designs in urban and resort locations. | 231 | 5.0% |
| Kimpton Hotels & Restaurants | A luxury boutique brand emphasizing personalized service and culinary excellence. | 185 | 4.0% |
| Regent Hotels | A luxury brand reintroduced to the Americas in 2024 with Regent Santa Monica Beach. Known for ultra-luxury experiences. | 139 | 3.0% |
| Six Senses | A luxury wellness brand, with projects like Six Senses Residences Dubai Marina, set to be the world’s tallest residential tower. | 139 | 3.0% |
| voco | A premium brand offering flexible, stylish accommodations. Expanded rapidly in key markets in 2024. | 139 | 3.0% |
| HUALUXE Hotels and Resorts | A premium brand tailored for Chinese guests, focusing on cultural heritage. | 93 | 2.0% |
| EVEN Hotels | Focused on wellness, offering fitness and healthy dining options. | 46 | 1.0% |
| Other Brands | Includes brands like Staybridge Suites, Candlewood Suites, and Atwell Suites, catering to extended-stay and niche markets. | 693 | 15.0% |
Total Revenue (2024): $4,626 million
The Holiday Inn Brand Family dominates due to its extensive global footprint and appeal to a broad guest base. Luxury brands like InterContinental, Regent, and Six Senses contribute significantly to revenue through high-end offerings, while premium and boutique brands like Crowne Plaza, Hotel Indigo, and voco cater to specific market segments, enhancing IHG’s diversified portfolio.
Geographical Presence
IHG operates in over 100 countries, with a strong presence in three key regions: Americas, EMEAA, and Greater China. Below is a detailed breakdown of IHG’s geographical presence, including hotel and room counts, pipeline details, and revenue contributions for 2024.
| Region | Description | Hotels | Rooms | Pipeline Hotels | Pipeline Rooms | Revenue ($m) | Revenue Breakup (%) |
|---|---|---|---|---|---|---|---|
| Americas | Dominates IHG’s portfolio with 4,491 hotels and 527,994 rooms. Key markets include the U.S., Canada, Mexico, and Latin America. In 2024, the region opened 224 hotels and signed 430 hotels, with RevPAR growth of 2.6%. | 4,491 | 527,994 | 1,066 | 109,334 | 2,894 | 62.5% |
| EMEAA | Covers Europe, Middle East, Asia, and Africa, with 1,349 hotels and 266,474 rooms. The region opened 88 hotels and signed 196 hotels, with RevPAR growth of 7.8%, driven by leisure travel in Japan and Thailand. | 1,349 | 266,474 | 714 | 103,367 | 1,142 | 24.7% |
| Greater China | Includes mainland China, Hong Kong SAR, Macau SAR, and Taiwan, with 789 hotels and 192,657 rooms. Opened 59 hotels and signed 88 hotels, with RevPAR growth of 7.4%. | 789 | 192,657 | 549 | 112,551 | 356 | 7.7% |
| Global (Central) | Supports global operations, including corporate offices and technology hubs. No direct hotel operations but critical for brand and operational support. | – | – | – | – | 234 | 5.1% |
Total Revenue (2024): $4,626 million
The Americas is IHG’s largest market, driven by a mature hospitality sector and high demand. EMEAA’s growth reflects IHG’s strategic focus on high-potential markets, while Greater China is a key growth driver due to increasing domestic and international travel. Central operations, while not directly revenue-generating, support IHG’s global infrastructure.
Financial Statements
Below are the consolidated financial statements for IHG for the year ended December 31, 2024, presented in tables as extracted from the report.
Consolidated Income Statement
| Item | 2024 ($m) | 2023 ($m) | 2022 ($m) |
|---|---|---|---|
| Revenue | 4,626 | 4,624 | 3,892 |
| Operating Profit | 897 | 1,010 | 540 |
| Profit Before Tax | 628 | 750 | 376 |
| Tax | (269) | (260) | (164) |
| Profit for the Year | 628 | 750 | 376 |
| Earnings Per Share (Basic) | 385.3¢ | 441.2¢ | 207.2¢ |
| Earnings Per Share (Diluted) | 385.3¢ | 441.2¢ | 206.0¢ |
Consolidated Statement of Comprehensive Income
| Item | 2024 ($m) | 2023 ($m) | 2022 ($m) |
|---|---|---|---|
| Profit for the Year | 628 | 750 | 376 |
| Total Comprehensive Income | 661 | 621 | 568 |
| Attributable to Equity Holders | 661 | 621 | 568 |
| Non-Controlling Interest | – | – | – |
Consolidated Statement of Financial Position
| Item | 2024 ($m) | 2023 ($m) |
|---|---|---|
| Assets | ||
| Goodwill | 336 | 439 |
| Property, Plant, and Equipment | 272 | 268 |
| Contract Assets | 650 | 459 |
| Cash and Cash Equivalents | 991 | 1,278 |
| Other Assets | 1,099 | 1,144 |
| Total Assets | 4,745 | 4,803 |
| Liabilities | ||
| Deferred Revenue | (2,060) | (1,848) |
| Loans and Other Borrowings | (2,782) | (2,272) |
| Other Liabilities | (219) | (192) |
| Total Liabilities | (4,745) | (4,803) |
| Net Assets | (2,308) | (2,308) |
| Equity | ||
| Equity Share Capital | 34 | 34 |
| Retained Earnings | (2,312) | (2,312) |
| Total Equity | (2,308) | (2,308) |
Consolidated Statement of Cash Flows
| Item | 2024 ($m) | 2023 ($m) | 2022 ($m) |
|---|---|---|---|
| Cash Flow from Operations | 1,023 | 1,123 | 896 |
| Cash Flow from Investing Activities | (287) | (357) | (245) |
| Cash Flow from Financing Activities | (1,023) | (391) | (326) |
| Net Change in Cash | (287) | 357 | 325 |
| Cash and Cash Equivalents at Year-End | 991 | 1,278 | 921 |
IHG’s financial performance in 2024 reflects strong operational results, with revenue stability despite a slight decline in profit due to increased investments in growth initiatives. The balance sheet shows a balanced approach to asset and liability management, while cash flows indicate robust operational cash generation offset by strategic investments and shareholder returns.
Subsidiaries, Wholly-Owned Subsidiaries, and Associates
IHG operates through a network of subsidiaries, wholly-owned subsidiaries, and associates, primarily in the hospitality sector. Below is a comprehensive list with details and estimated revenue contributions based on the report’s data.
| Entity | Type | Ownership (%) | Details | Revenue ($m) | Revenue Breakup (%) |
|---|---|---|---|---|---|
| Six Continents Hotels, Inc. | Wholly-Owned Subsidiary | 100% | U.S.-based subsidiary managing hotel operations and franchise agreements in the Americas. Key contributor to IHG’s largest revenue segment. | 2,315 | 50.0% |
| IHG Finance LLC | Wholly-Owned Subsidiary | 100% | Handles financing and bond issuances, including £400m 3.375% bonds due 2028. Supports IHG’s capital structure. | – | 0.0% |
| IHG Hotels Limited | Wholly-Owned Subsidiary | 100% | UK-based entity managing European operations and franchise agreements. | 571 | 12.3% |
| InterContinental Hotels Group (Asia Pacific) Pte Ltd | Wholly-Owned Subsidiary | 100% | Manages operations in Asia, excluding Greater China, with a focus on high-growth markets. | 285 | 6.2% |
| IHG (China) Investment Co., Ltd. | Wholly-Owned Subsidiary | 100% | Oversees hotel operations and development in Greater China, a key growth market. | 356 | 7.7% |
| Other Subsidiaries | Wholly-Owned Subsidiaries | 100% | Includes various regional entities supporting franchise and management operations globally. | 1,099 | 23.8% |
| Joint Ventures/Associates | Associates | Varies | Includes minority stakes in hotel management agreements, with no significant revenue contribution reported. | – | 0.0% |
Total Revenue (2024): $4,626 million
Six Continents Hotels, Inc. is the largest revenue contributor due to its role in the Americas, while other subsidiaries support regional operations. Associates and joint ventures have minimal direct revenue impact, as IHG’s model focuses on franchising and management.
Physical Properties
IHG’s physical properties include owned, leased, and managed lease hotels, as well as corporate offices. Below is a detailed list based on the report’s data.
| Property Type | Description | Details |
|---|---|---|
| Owned Hotels | IHG owns a small number of hotels (1.1% of system size), primarily in key markets. These include properties like the InterContinental in major cities. Net book value: $99 million (2024). | 73 hotels, 10,894 rooms, primarily in the U.S. |
| Leased Hotels | Hotels operated under long-term leases, contributing to revenue through room and ancillary sales. | Included in owned and managed lease portfolio, with 125 hotels and 18,672 rooms. |
| Corporate Offices | IHG’s headquarters in Windsor, UK, and regional offices in the U.S., Asia, and Europe. Support global operations and technology development. | Key locations: Windsor, UK; Atlanta, U.S.; Singapore; Shanghai, China. |
| Managed Lease Hotels | Hotels where IHG manages operations under lease agreements, with revenue tied to hotel performance. | Part of the 12.8% managed portfolio, with 848 hotels and 126,576 rooms. |
IHG’s asset-light model minimizes owned properties, with most hotels operated under franchise or management agreements. The company’s corporate offices are strategically located to support global operations and brand management.
Founders Details
IHG, as a modern corporate entity, does not have individual founders in the traditional sense. The company evolved from Bass PLC, which acquired and developed the InterContinental and Holiday Inn brands before the 2003 separation that formed IHG. The report does not attribute specific individuals as founders, but the legacy of Bass PLC’s leadership in the hospitality sector laid the foundation for IHG’s creation. Key historical figures associated with the brands include:
- Juan Trippe: Founder of Pan American Airways, who established the InterContinental Hotels brand in 1946 to cater to international travelers.
- Kemmons Wilson: Founder of Holiday Inn in 1952, which became a cornerstone of IHG’s midscale portfolio after its acquisition in 1988.
These individuals shaped the early development of IHG’s core brands, but the company’s current structure is a result of corporate evolution rather than a single founding event.
Board of Directors
IHG’s Board of Directors as of February 17, 2025, comprises a diverse group of executives and non-executives with extensive experience. Below is a detailed list of directors with their roles and backgrounds.
| Name | Role | Details |
|---|---|---|
| Deanna Oppenheimer | Non-Executive Chair | Leads the Board, ensuring robust governance. Extensive experience in financial services and UK/U.S. listed organizations. |
| Elie Maalouf | Chief Executive Officer | Oversees IHG’s global strategy and operations. Joined in 2018, with prior experience as CEO of The Americas. |
| Michael Glover | Chief Financial Officer | Manages financial strategy and reporting. Signed financial statements on February 17, 2025. |
| Duriya Farooqui | Independent Non-Executive Director | Brings expertise in technology and governance. Serves on multiple board committees and is a trustee of the Royal Foundation. |
| Other Directors | Independent Non-Executive Directors | Includes members with experience in hospitality, finance, and global business, contributing to strategic oversight and committee roles. |
The Board is supported by committees, including the Audit Committee, Responsible Business Committee, and Remuneration Committee, ensuring comprehensive governance and alignment with IHG’s strategic objectives.
Investment Details
IHG’s passive investments are limited, as the company focuses on its core hospitality operations. Below are details of known investments:
| Investment | Details | Value ($m) | Percentage of Total Assets (%) |
|---|---|---|---|
| Equity Securities | Held by the Parent Company for strategic purposes, primarily in subsidiaries. | 1,099 | 23.2% |
| Joint Ventures/Associates | Minority stakes in hotel management agreements, with no significant financial impact reported. | – | 0.0% |
IHG’s investment strategy prioritizes operational growth and brand development over passive investments, with most capital allocated to hotel openings, technology, and sustainability initiatives.
Future Investment Plan
IHG’s future investment plans focus on:
- Brand Expansion: Continued growth of the pipeline, with 2,969 hotels (426,052 rooms) targeted for development, including luxury projects like Six Senses Residences Dubai Marina.
- Technology Investments: Enhancing the IHG Green Engage platform and implementing a new property management system to improve owner value and operational efficiency.
- Sustainability Initiatives: Investments in carbon reduction programs, aiming to reduce emissions per available room compared to 2019 levels. The Low Carbon Pioneer programme will expand to support hotels in carbon-intensive regions.
- Loyalty Program Enhancements: Further development of IHG One Rewards, including new co-branded credit card agreements in high-growth markets.
- Leverage Management: Maintaining leverage at the lower end of the 2.5-3.0x range, supporting growth and EBITDA in 2025 through disciplined capital allocation.
These plans align with IHG’s strategy of relentless growth, brand excellence, and responsible business practices, ensuring long-term value creation for stakeholders.
Conclusion
InterContinental Hotels Group PLC is a global hospitality leader, driven by a diverse portfolio of 19 brands, a robust franchise and management model, and a commitment to sustainability and guest satisfaction. With a strong presence in the Americas, EMEAA, and Greater China, IHG continues to expand its footprint, leveraging its enterprise platform to deliver value to guests, owners, and shareholders. The company’s financial performance, governance structure, and strategic investments position it for sustained growth in the competitive hospitality industry.
