IHG earnings: guidance, results and what to watch
MyStockButler's October 2026 analysis: In H1 2026, revenue rose from $2,519 million to $2,659 million and operating income increased from $623 million to $671 million, while net income fell from $469 million to $425 million. The next release will test RevPAR, openings and fee growth.
What has IHG guided for 2026–2027?
Management targets adjusted EPS growth of 12–15% a year across 2026–2027. It targets annual fee-margin expansion of 100–150 basis points. Adjusted earnings should convert fully into adjusted free cash flow on average across 2026–2027, with net debt to adjusted EBITDA targeted at 2.5–3.0 times. Annual key money—funds that may support hotel openings or renovations—and maintenance CapEx is $200–250 million for 2026–2027. Gross CapEx is expected to average $350 million a year.
| Period | Low | High | Given on | |
|---|---|---|---|---|
| Fee business cost base increase (%) | Year to Dec 2026 | 1.0% | 3.0% | Aug 11, 2026 |
| Key money and maintenance CapEx (US$ millions) | 2026–2027; annually | 200 | 250 | Aug 11, 2026 |
| Gross CapEx (US$ millions) | 2026–2027; annual average | 350 | 350 | Aug 11, 2026 |
| Net debt:adjusted EBITDA ratio (x) | Year to Dec 2026 | 2.5x | 3.0x | Aug 11, 2026 |
| Fee margin expansion (basis points) | 2026–2027; annual average | 100 | 150 | Aug 11, 2026 |
| Compound growth in adjusted EPS (%) | 2026–2027; annual average | 12.0% | 15.0% | Aug 11, 2026 |
What this means. The company's total returns to shareholders are a minimum of 1,200 million United States dollars, not an exact total, because the source says more than that amount.
What were IHG’s last eight reported periods like?
Revenue rose from $2,519 million to $2,659 million. Operating income increased from $623 million to $671 million. Net income nevertheless fell from $469 million to $425 million, while diluted EPS declined. The apparent contradiction is mainly below operating profit.
Cash from operations rose from $312 million to $355 million. Free cash flow rose from $145 million to $317 million, helped by capital spending falling from $152 million to $33 million after Ruby’s purchase passed out of the comparison.
| 6 months to Jun 2026 | 6 months to Dec 2025 | 6 months to Jun 2025 | 6 months to Dec 2024 | 6 months to Jun 2024 | 6 months to Dec 2023 | 6 months to Jun 2023 | 6 months to Dec 2022 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2,659 | 2,670 | 2,519 | 2,601 | 2,322 | 2,398 | 2,226 | 2,098 |
| Operating income | 671 | 575 | 623 | 516 | 525 | 482 | 584 | 267 |
| Net income | 425 | 289 | 469 | 281 | 347 | 291 | 459 | 159 |
| EPS, diluted | 281.30 | 189.30 | 297.20 | 174.90 | 210.40 | 177.40 | 263.80 | 89.20 |
| Cash from operations | 355 | 586 | 312 | 562 | 162 | 578 | 315 | 471 |
| = Free cash flow | 317 | 526 | 145 | 490 | 110 | 518 | 265 | 387 |
What this means. The December columns show only the second half of each year, not the full year.
What should I watch in IHG’s next release?
The next immediate test is IHG’s 22 October 2026 trading update. Investors will look at RevPAR, openings and fee growth to see whether existing hotels remain healthy and new rooms are contributing.