Intercontinental Hotels Group - ADR

Strong Financial Performance and Growth: IHG reported a solid financial year with revenue of $2.3 billion and EBIT growth of 10%. Key highlights include a 3% year-on-year (YOY) growth in RevPAR, driven by increases in both average daily rate (ADR) and occupancy, and a 10% increase in operating profit from reportable segments. Adjusted EPS grew by 15%, supported by the company’s share buyback program that returned over $1 billion to shareholders in 2024.

Significant System Expansion: The hotel chain added 59,000 rooms, representing a gross system growth of 6.2% and net system growth of 4.3%. The company signed 106,000 rooms across 714 hotels — marking a 34% increase compared to 2023 — pushing the total pipeline to over 2,200 hotels. This strong development pipeline bodes well for future revenue growth, with IHG targeting over 4% net system growth in 2025.

Increased Share Buyback Program: IHG announced a new $900 million share buyback program for 2025, reflecting confidence in its cash generation capabilities. The prior $800 million buyback program completed in December 2024 contributed to a share count reduction of 4.6%. Alongside this, a 10% increase in the annual dividend to $1.144 per share has been proposed, demonstrating the company’s commitment to returning capital to shareholders.