Revenue growth remains volatile, fluctuating from a 33.5% surge in 2024Q4 to a modest 2.7% in 2025Q4, while operating margins are constrained at 21.5% due to persistent overhead costs.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Sep'02 | Sep'01 | Sep'00 |
|---|
| Sales/Revenue | 5.19B | 4.92B | 3.73B | 3.89B | 2.91B | 2.39B | 4.63B | 4.34B | 4.08B | 1.72B | 1.8B | 1.86B | 1.9B | 1.83B | 1.77B | 1.63B | 1.54B | 1.85B | 1.75B | 1.54B | 1.23B | 4.23B | 6.22B | 5.67B | 3.64B | 5.41B |
| Revenue Growth % | 5.4% | 32.05% | -4.21% | 33.88% | 21.43% | -48.26% | 6.69% | 6.43% | 137.61% | -4.88% | -2.96% | -2.36% | 3.71% | 3.79% | 8.6% | 5.85% | -17.04% | 5.88% | 13.71% | 25.52% | -70.98% | -32.03% | 9.65% | 55.75% | -32.66% | - |
| Cost of Goods Sold | 3.53B | 3.47B | 1.79B | 2.8B | 2.01B | 1.86B | 3.38B | 3.26B | 2.95B | 580M | 640M | 741M | 784M | 772M | 771M | 753M | 860M | 823M | 815.07M | 695.52M | 572.99M | 2.83B | 4.85B | 4.82B | 0 | 0 |
| COGS % of Revenue | 68.05% | 70.44% | 47.99% | 71.99% | 69.28% | 77.61% | 73.11% | 75.07% | 72.39% | 33.82% | 35.5% | 39.88% | 41.2% | 42.07% | 43.61% | 46.25% | 55.92% | 44.39% | 46.55% | 45.17% | 46.7% | 67.01% | 78.01% | 85.03% | - | - |
| Gross Profit | 1.66B | 1.46B | 1.94B | 1.09B | 893M | 536M | 1.24B | 1.08B | 1.13B | 1.14B | 1.16B | 1.12B | 1.12B | 1.06B | 997M | 875M | 678M | 1.03B | 936.04M | 844.42M | 653.86M | 1.39B | 1.37B | 848.91M | 3.64B | 5.41B |
| Gross Margin % | 31.95% | 29.56% | 52.01% | 28.01% | 30.72% | 22.39% | 26.89% | 24.93% | 27.61% | 66.18% | 64.5% | 60.12% | 58.8% | 57.93% | 56.39% | 53.75% | 44.08% | 55.61% | 53.45% | 54.83% | 53.3% | 32.99% | 21.99% | 14.97% | 100% | 100% |
| Gross Profit Growth % | 13.95% | -24.96% | 77.89% | 22.06% | 66.6% | -56.91% | 15.08% | -3.91% | -0.88% | -2.41% | 4.12% | -0.18% | 5.27% | 6.62% | 13.94% | 29.06% | -34.24% | 10.14% | 10.85% | 29.14% | -53.11% | 1.94% | 61.13% | -76.69% | -32.66% | - |
| Operating Expenses | 460M | 414M | 352M | 403M | 387M | 361M | 480M | 410M | 404M | 426M | 485M | 462M | 453M | 449M | 480M | 409M | 491M | 39M | 448.19M | 452.58M | 381.99M | 771.06M | 505.36M | 0 | 2.97B | 6.49B |
| OpEx % of Revenue | 8.86% | 8.41% | 9.44% | 10.35% | 13.31% | 15.08% | 10.37% | 9.45% | 9.91% | 24.84% | 26.9% | 24.87% | 23.8% | 24.47% | 27.15% | 25.12% | 31.92% | 2.1% | 25.59% | 29.39% | 31.14% | 18.24% | 8.13% | - | 81.44% | 119.92% |
| Selling, General & Admin | 381M | 359M | 338M | 353M | 292M | 351M | 791M | 738M | 709M | 339M | 395M | 382M | 374M | 363M | 381M | 301M | 382M | 459M | 372.83M | 352.66M | 258.1M | 398.96M | 505.36M | 0 | 0 | 0 |
| SG&A % of Revenue | 7.34% | 7.29% | 9.07% | 9.07% | 10.04% | 14.66% | 17.1% | 17.02% | 17.4% | 19.77% | 21.91% | 20.56% | 19.65% | 19.78% | 21.55% | 18.49% | 24.84% | 24.76% | 21.29% | 22.9% | 21.04% | 9.44% | 8.13% | - | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | 0.28% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 79M | 55M | 14M | 39M | 87M | 94M | 95M | 66M | 92M | 87M | -795M | -50M | -87M | 86M | 99M | 108M | 109M | 112M | 61.17M | 64M | 159M | -1.26B | 0 | 0 | 2.97B | 6.49B |
| Operating Income | 1.2B | 1.04B | 1.07B | 628M | 494M | 165M | 630M | 566M | 728M | 678M | 1.5B | 680M | 673M | 610M | 594M | 459M | -10M | 403M | 529.5M | 444.74M | 259.83M | 569.66M | 771.43M | 848.91M | 652.41M | 779.22M |
| Operating Margin % | 23.09% | 21.15% | 28.59% | 16.14% | 16.99% | 6.89% | 13.62% | 13.05% | 17.87% | 39.53% | 83.14% | 36.6% | 35.37% | 33.24% | 33.6% | 28.19% | -0.65% | 21.74% | 30.24% | 28.88% | 21.18% | 13.48% | 12.4% | 14.97% | 17.91% | 14.41% |
| Operating Income Growth % | 15.08% | -2.35% | 69.75% | 27.13% | 199.39% | -73.81% | 11.31% | -22.25% | 7.37% | -54.77% | 120.44% | 1.04% | 10.33% | 2.69% | 29.41% | 4690% | -102.48% | -23.89% | 19.06% | 71.17% | -54.39% | -26.15% | -9.13% | 30.12% | -16.27% | - |
| EBITDA | 1.34B | 1.19B | 1.22B | 782M | 686M | 337M | 800M | 691M | 806M | 805M | 1.59B | 776M | 758M | 704M | 693M | 567M | 99M | 515M | 644.52M | 570.13M | 483.52M | 901.49M | 1.31B | 765.74M | 864.48M | 1.06B |
| EBITDA Margin % | 25.9% | 24.09% | 32.62% | 20.09% | 23.6% | 14.08% | 17.29% | 15.93% | 19.78% | 46.94% | 88.46% | 41.77% | 39.83% | 38.37% | 39.2% | 34.83% | 6.44% | 27.78% | 36.81% | 37.02% | 39.41% | 21.32% | 21.1% | 13.5% | 23.74% | 19.65% |
| EBITDA Growth % | 13.32% | -2.47% | 55.5% | 13.99% | 103.56% | -57.88% | 15.77% | -14.27% | 0.12% | -49.53% | 105.54% | 2.37% | 7.67% | 1.59% | 22.22% | 472.73% | -80.78% | -20.1% | 13.05% | 17.91% | -46.36% | -31.32% | 71.4% | -11.42% | -18.64% | - |
| D&A (Non-Cash Add-back) | 146M | 145M | 150M | 154M | 192M | 172M | 170M | 125M | 78M | 127M | 96M | 96M | 85M | 94M | 99M | 108M | 109M | 112M | 115.02M | 125.39M | 223.69M | 331.82M | 541.07M | 0 | 212.07M | 283.35M |
| EBIT | 1.2B | 1.1B | 1.13B | 661M | 500M | -141M | 657M | 578M | 744M | 718M | 683M | 683M | 678M | 603M | 614M | 439M | -7M | 411M | 534M | 392M | 282M | 157M | 333.93M | 765.74M | 1.1B | 7.61B |
| Net Interest Income | -153M | -140M | -52M | -106M | -139M | -140M | -115M | -95M | -72M | -80M | -87M | -80M | -73M | -54M | -58M | -62M | -54M | -84M | -90M | -21.55M | -41.3M | -63.3M | -83.93M | 0 | -1.47M | -101.83M |
| Interest Income | 0 | 63M | 39M | 22M | 8M | 4M | 6M | 5M | 4M | 6M | 5M | 3M | 5M | 2M | 2M | 2M | 3M | 12M | 17.85M | 50.94M | 51.62M | 134.26M | 185.71M | 0 | 334.31M | 205.14M |
| Interest Expense | 0 | 203M | 91M | 128M | 147M | 144M | 121M | 100M | 76M | 86M | 92M | 83M | 78M | 56M | 64M | 64M | 57M | 113M | 107.09M | 72.49M | 92.92M | 197.56M | 269.64M | 0 | 335.78M | 306.97M |
| Other Income/Expense | -124M | -144M | -56M | -88M | -133M | -127M | -88M | -100M | -91M | -80M | -87M | -80M | -73M | -55M | -40M | -40M | -54M | -101M | -85.5M | 31.19M | -42M | -496.66M | -707.14M | -10.98M | -86.89M | 1.78B |
| Pretax Income | 1.07B | 897M | 1.01B | 540M | 361M | -280M | 542M | 485M | 656M | 591M | 1.41B | 600M | 600M | 556M | 532M | 397M | -64M | 302M | 440.26M | 423.19M | 218.53M | 506.37M | 64.29M | 837.92M | 703.96M | 2.56B |
| Pretax Margin % | 20.7% | 18.22% | 27.09% | 13.87% | 12.42% | -11.7% | 11.71% | 11.18% | 16.1% | 34.46% | 78.31% | 32.29% | 31.53% | 30.3% | 30.09% | 24.39% | -4.16% | 16.29% | 25.14% | 27.48% | 17.81% | 11.98% | 1.03% | 14.77% | 19.33% | 47.29% |
| Income Tax | 315M | 269M | 260M | 164M | 96M | -20M | 156M | 133M | 115M | 174M | 188M | 208M | 226M | 11M | 72M | 106M | -272M | 54M | 23.8M | -103.84M | 41.3M | -243.59M | 30.36M | 81.6M | 207.65M | 340.91M |
| Effective Tax Rate % | 29.33% | 29.99% | 25.74% | 30.37% | 26.59% | 7.14% | 28.78% | 27.42% | 17.53% | 29.44% | 13.31% | 34.67% | 37.67% | 1.98% | 13.53% | 26.7% | 425% | 17.88% | 5.41% | -24.54% | 18.9% | -48.11% | 47.22% | 9.74% | 29.5% | 13.33% |
| Net Income | 758M | 628M | 750M | 375M | 266M | -260M | 385M | 351M | 540M | 414M | 1.22B | 391M | 372M | 544M | 460M | 293M | 214M | 262M | 458.11M | 793.48M | 853.47M | 734.62M | 33.93M | 756.33M | 460.96M | 2.19B |
| Net Margin % | 14.61% | 12.76% | 20.12% | 9.64% | 9.15% | -10.86% | 8.32% | 8.09% | 13.25% | 24.14% | 67.78% | 21.04% | 19.55% | 29.65% | 26.02% | 18% | 13.91% | 14.13% | 26.16% | 51.53% | 69.57% | 17.38% | 0.55% | 13.33% | 12.66% | 40.55% |
| Net Income Growth % | 20.7% | -16.27% | 100% | 40.98% | 202.31% | -167.53% | 9.69% | -35% | 30.43% | -66.12% | 212.53% | 5.11% | -31.62% | 18.26% | 57% | 36.92% | -18.32% | -42.81% | -42.27% | -7.03% | 16.18% | 2065.19% | -95.51% | 64.08% | -78.98% | - |
| Net Income (Continuing) | 759M | 628M | 750M | 376M | 265M | -260M | 386M | 350M | 535M | 459M | 1.22B | 392M | 374M | 538M | 473M | 278M | 208M | 257M | 420M | 527M | 177M | 449M | 33.93M | 756.33M | 687.76M | 2.52B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 5M | 4M | 4M | 7M | 7M | 8M | 8M | 8M | 7M | 8M | 10M | 8M | 8M | 9M | 8M | 7M | 7M | 0 | 5.95M | 15.67M | 34.41M | 224.41M | 291.07M | 233.8M | 195.87M | 168.24M |
| EPS (Diluted) | 4.87 | 3.85 | 4.41 | 2.04 | 1.45 | -1.43 | 2.09 | 1.92 | 2.93 | 2.13 | 6.77 | 2.06 | 1.99 | 2.66 | 2.38 | 1.52 | 1.11 | 1.36 | 2.13 | 3.63 | 3.34 | 2.91 | 0.15 | 3.11 | 2.82 | 10.83 |
| EPS Growth % | 26.49% | -12.7% | 116.18% | 40.69% | 201.4% | -168.42% | 8.85% | -34.47% | 37.56% | -68.54% | 228.64% | 3.52% | -25.19% | 11.76% | 56.58% | 36.94% | -18.38% | -36.15% | -41.32% | 8.68% | 14.78% | 1840% | -95.18% | 10.28% | -73.96% | - |
| EPS (Basic) | 4.91 | 3.90 | 4.41 | 2.05 | 1.45 | -1.43 | 2.10 | 1.94 | 2.95 | 2.15 | 6.86 | 2.09 | 2.01 | 2.71 | 2.44 | 1.56 | 1.14 | 1.40 | 2.19 | 3.72 | 3.42 | 2.94 | 0.15 | 3.12 | 2.84 | 10.83 |
| Diluted Shares Outstanding | 155.8M | 163.12M | 170M | 184M | 184M | 182M | 184M | 182.4M | 184.3M | 194.65M | 180.4M | 189.49M | 186.81M | 197.78M | 193.3M | 193.3M | 193.56M | 193.33M | 197.78M | 197.78M | 200.05M | 200.05M | 200.05M | 200.05M | 200.05M | 200.05M |
| Basic Shares Outstanding | 155.81M | 161.03M | 169.99M | 181M | 183M | 181.95M | 183M | 180.5M | 183.35M | 192.83M | 178.12M | 187.22M | 184.71M | 197.78M | 188.72M | 188.07M | 187.08M | 187.4M | 197.78M | 197.78M | 194.02M | 194.02M | 194.02M | 194.02M | 194.02M | 194.02M |
| Dividend Payout Ratio | 35.62% | 41.24% | 32.67% | 62.13% | - | - | 187.27% | 56.7% | 109.81% | 408.94% | 15.38% | 240.92% | 143.28% | 124.82% | 32.17% | 41.3% | 55.14% | 45.04% | 334.63% | 138.52% | 16.33% | 156.54% | 1573.68% | 2.7% | - | - |
Franchisee financing and construction headwinds
As reported in recent financial statements, IHG's revenue growth has exhibited significant volatility, with the most recent quarterly growth rate of 2.7% contrasting sharply against the 33.5% surge observed in 2024Q4, reflecting the inherent sensitivity of the lodging sector to broader macroeconomic demand cycles.
The inconsistent top-line performance suggests that while the core fee-based model provides a degree of stability, the company remains susceptible to fluctuations in global travel demand. Investors should monitor whether the current deceleration in growth signals a broader cooling of the hospitality market or merely a normalization following previous periods of rapid recovery.
Based on IHG's reported figures, gross margins have fluctuated wildly between 24.7% and 93.4% over the last ten quarters, largely due to the accounting treatment of pass-through items like the System Fund which can obscure the underlying profitability of the core franchise business.
The extreme variance in reported gross margins warrants further investigation into the consistency of revenue recognition practices. It appears that the company's true operational efficiency is better reflected in the more stable operating margins, which have generally hovered in the low-to-mid 20% range.
According to recent SEC filings, IHG's operating income has struggled to scale linearly with revenue, as evidenced by an operating margin of 21.5% in 2025Q4 despite a revenue base of $2.7B, suggesting that overhead and administrative costs remain a persistent drag on profitability.
The lack of clear operating leverage indicates that the company may be facing rising costs associated with maintaining its global technology and loyalty infrastructure. This may indicate that the asset-light model is not as immune to inflationary pressures as previously assumed, particularly regarding corporate-level SG&A expenses.
Based on the provided data, IHG's net income is consistently impacted by stock-based compensation, which reached $35.0M in 2025Q4, representing a non-trivial portion of the company's quarterly earnings and potentially diluting the quality of reported EPS for shareholders.
The persistent use of stock-based compensation suggests that management is utilizing equity to align incentives, yet this practice effectively lowers the cash-equivalent earnings available to investors. Analysts should carefully adjust for these non-cash charges when evaluating the true underlying profitability of the firm's operations.
Quick answers to the most common questions about buying IHG stock.
For fiscal year 2025, InterContinental Hotels Group PLC (IHG) reported total revenue of $5.19B. This represents a 4.1% decline compared to $5.41B in 2000.
InterContinental Hotels Group PLC (IHG) is profitable, generating $758.0M in net income for the fiscal year ending 2025 with a net profit margin of 14.6%.
InterContinental Hotels Group PLC (IHG) reported an operating income of $1.20B, resulting in an operating profit margin of 23.1%. This margin reflects the operational efficiency of the business before interest and taxes.
InterContinental Hotels Group PLC (IHG) generated $1.66B in gross profit for the year, representing a gross profit margin of 32.0%. This demonstrates the company's core pricing power and production efficiency.