InterContinental Hotels Group PLC

IHG reported H1 2026 reportable-segment revenue of $1.255 billion and EBIT of $655 million, up 7% and 10% respectively. Fee business revenue increased 7% to $971 million and fee business operating profit increased 8% to $640 million; fee margin expanded 120 bps to 65.9%. Adjusted EPS rose 13% to $2.747, while the interim dividend was increased 10% to $0.645. Global RevPAR increased 4.1% in H1, with Q2 RevPAR up 3.5%; Americas RevPAR rose 4.8% in H1, EMEAA 3%, and Greater China 3.1%. Adjusted free cash flow was $360 million, adjusted tax rate was 26%, adjusted interest was $106 million, and full-year adjusted interest guidance was narrowed to $230 million to $240 million. For the full year, management reiterated key money and maintenance CapEx of around $200 million to $250 million annually, gross CapEx of around $350 million on average, and leverage expected to remain within the 2.5x to 3x net debt-to-EBITDA target range. The $950 million buyback was 42% complete at the half-year date, and 2026 shareholder returns are expected to exceed $1.2 billion.

Elie Maalouf said the first half showed IHG’s strategy is working, citing broad-based RevPAR growth, record openings and signings, stronger margins, and continued capital returns. He emphasized the diversification of the business across geographies, stay occasions and fee streams, saying that even with conflict in the Middle East the rest of the portfolio more than offset it. His tone was confident and upbeat, especially on China, the U.S. and the long-term growth algorithm.

Michael Glover focused on the numbers behind the quarter: $1.255 billion of reportable-segment revenue, $655 million of EBIT, 65.9% fee margin, and $2.747 adjusted EPS, all supported by margin expansion and buyback accretion. He said adjusted free cash flow was $360 million, cash conversion stayed above 100% on a trailing 12-month basis, and net debt rose mainly because of ordinary dividends and share repurchases, while leverage remained within target. He also reiterated full-year discipline on overhead growth, expecting 1% to 3% overhead growth, and kept CapEx guidance unchanged.

Analysts pressed on weaker China RevPAR trends, the gap between RevPAR and fee growth, owner economics, key money, and pipeline changes. Management said China’s Q2 softness mainly reflected timing shifts from Chinese New Year and added holidays, not structural weakness, and pointed to strong openings, profits and long-term demand. On the fee gap, they said new hotels take time to mature and many fee structures step up over time, while on owner economics they stressed prior reductions in loyalty assessments, reward reimbursements, Ignite costs and other owner-facing expenses, plus the new commercial services pilot. They also said Revo bankruptcy exposure is minimal, and that pipeline growth was held back mainly by record openings rather than unusual cancellations, especially in the Middle East.