Intercontinental Hotels Group PLC (LSE:IHG) hiked its interim dividend 10% as first-half profits came in well above forecasts, despite slowing revenue numbers in the second quarter.
Pre-tax profit for the Holiday Inn and Crowne Plaza brand owner jumped 34% to $633 million in the first six months of 2025, comfortably ahead of analysts’ estimates of $516.9 million, as revenue rose 6% to $1.2 billion amidst record hotel openings.
Operating profit from reportable segments rose by 13% to $604 million, while group revenue from the fee business climbed 7% to $908 million.
The company raised its interim dividend by 10% to 58.6 cents per share, as it progresses through its $900 million share buyback programme, which is nearly halfway complete.
Global revenue per available room (revPAR) growth slowed to 1.8% for the half from the 3.3% growth seen in the first quarter.
RevPAR growth slowed most in the Americas, softening to 1.4% for the half after the 3.5% gain in Q1, while EMEAA (Europe, Middle East, Asia & Africa) increased 4.1% (Q1: 5%) and Greater China fell 3.2% (Q1: -3.5%).
A record 207 hotels were opened in the first half, up 75% year-on-year, and the group crossed the milestone of one million open rooms, with net system size growth of 5.4% year-on-year.
CEO Elie Maalouf said: "We remain on track to meet full year consensus profit and earnings expectations.
"While some shorter term macro-economic uncertainties remain, many are subsiding, and we are confident in the ongoing successful delivery of our growth algorithm".
The global pipeline stood at 2,276 hotels (338,000 rooms) at 30 June, representing 34% of the current system size.