Half-year Financial Report

InterContinental Hotels Group PLC

11 August 2026

6 months ended 30 June	2026	2025	% change		Underlying1 % change
Results from reportable segments1:
Revenue1	$1,255m	$1,175m	+7%		+6%
Revenue from fee business1	$971m	$908m	+7%		+6%
Operating profit1	$665m	$604m	+10%		+10%
Fee margin1	65.9%	64.7%	+1.2%pts
Adjusted EPS1	274.7¢	242.5¢	+13%
IFRS results:
Total revenue	$2,659m	$2,519m	+6%
Operating profit	$671m	$623m	+8%
Basic EPS	283.3¢	300.1¢	(6)%
Interim dividend per share	64.5¢	58.6¢	+10%
Net debt1	$3,663m	$3,361m	+9%

1.         Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Financial Statements.

●    H1 Global RevPAR¹ +4.1%, with Americas +4.8%, EMEAA +3.0% and Greater China +3.1%

●    Average daily rate +2.5%, occupancy +1.0%pts

●    Total gross revenue¹ $18.2bn, +7% at constant currency

●    Gross system growth +6.5% YOY and net system growth of +5.0% YOY

●    Opened 31.5k rooms (197 hotels), a record level, and up +8% YOY when excluding the Ruby brand acquisition in 2025

●    Global estate of 1,049k rooms (7,109 hotels)

●    Signed 49.2k rooms (352 hotels), also up +8% YOY on an organic basis

●    Global pipeline of 348k rooms (2,385 hotels), up +3% YOY, and represents 33% of current system size

●    Fee margin¹ 65.9%, up +1.2%pts, with fee business revenue¹ growth of +7% exceeding cost growth of +4%

●    Operating profit from reportable segments¹ of $665m, up +10%, after the impact of $5m insurance-related expense on a fire‑damaged leased hotel, and $6m net benefit from the YOY movement in average currency rates

●    IFRS operating profit of $671m includes System Fund and reimbursables $9m profit (2025: $31m profit) and $3m exceptional costs (2025: $12m)

●    Adjusted EPS¹ of 274.7¢, up +13%, includes adjusted interest expense¹ of $106m (2025: $91m), an adjusted tax¹ rate of 26% (2025: 26%) and a 4.0% reduction in the basic weighted average number of ordinary shares

●    IFRS basic EPS includes foreign exchange losses of $7m (2025: gains of $79m) predominantly due to translation of intra-group monetary assets and liabilities held between subsidiaries with differing functional currencies

●    Net cash from operating activities of $355m (2025: $312m) and adjusted free cash flow¹ of $360m (2025: $302m), driven by the increase in profit

●    Net debt¹ increase of $330m since the start of the year, driven by $564m related to shareholder returns through dividend payments and share buybacks; $11m foreign exchange net favourable impact on net debt

●     Trailing 12-month Adjusted EBITDA¹ of $1,392m, +11% YOY; net debt:adjusted EBITDA ratio of 2.63x

●     $950m share buyback programme for 2026, 42% completed as at 30 June; interim dividend +10% to 64.5¢

●    On track to return $1.2bn+ to shareholders in 2026, equivalent to 5.8% of market capitalisation at start of year

We had record levels of development activity with almost 200 hotel openings in the first half. This drove net system growth of 5% and expanded our global estate to 7,100 hotels. Our pipeline grew to 2,400 hotels with increases in all three regions and 352 signings in total - almost two a day - representing +8% growth year-on-year.

Thanks to the hard work of our teams, we're making excellent progress on growing our brands, expanding in key geographic markets, developing our leading technology and enterprise platform, and driving ancillary fee streams. While there are ongoing impacts from the Middle East conflict, including some wider disruption to international travel flows, we continue to expect these to be fully offset by growth in demand elsewhere. This demonstrates the strength of IHG's business model which is strategically diversified and resilient, with our ability to capture demand across geographies, chainscales and the different stay occasions of business, leisure and groups travel, as well as being heavily weighted to domestic and intra-regional travel.

We remain on track to meet full year consensus profit and earnings expectations. We are also confident in the successful delivery of our growth algorithm, which is driven by the strength of IHG's enterprise platform and our ability to further capitalise on our scale, leading positions and the attractive long-term demand drivers for our markets."

A live Q&A session will be hosted later this morning at 9:30am (London time). This can be listened to via www.ihgplc.com/en/investors/results-and-presentations (pre-registration required). Analysts and institutional investors wishing to ask questions are required to register at the IHG Hotels & Resorts Half Year 2026 Results Live Q&A Registration Page (https://registrations.events/direct/LON6705197). Dial-in details for the Q&A are provided when you register and will appear in the calendar invite sent to you following registration.

-     Luxury & Lifestyle: Six Senses, Regent, InterContinental, Vignette Collection, Kimpton, Hotel Indigo

-     Premium: Noted Collection, voco, Ruby, HUALUXE, Crowne Plaza, EVEN

-     Essentials: Holiday Inn Express, Holiday Inn Hotels & Resorts, Garner, avid

-     Suites: Atwell Suites, Staybridge Suites, Holiday Inn Club Vacations, Candlewood Suites

-     Exclusive Partners: Iberostar Beachfront Resorts

Visit us online for more about our hotels and reservations and IHG One Rewards. To download the IHG One Rewards app, visit the Apple App or Google Play stores.

This announcement contains certain forward-looking statements as defined under United States law (Section 21E of the Securities Exchange Act of 1934) and otherwise. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe' or other words of similar meaning. These statements are based on assumptions and assessments made by InterContinental Hotels Group PLC's management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty. There are a number of factors that could cause actual results and developments to differ materially from those expressed in, or implied by, such forward-looking statements. The main factors that could affect the business and the financial results are described in the 'Risk Factors' section in the current InterContinental Hotels Group PLC's Annual report and Form 20-F filed with the United States Securities and Exchange Commission.

Reflecting the breadth of our global footprint, RevPAR grew +4.1% in H1 2026 (Q1 +4.4%, Q2 +3.5%).

Global RevPAR growth of +4.1% in H1 included increases in every brand, 3-4% growth for each of the Midscale, Upper Midscale and Upscale chainscales, with our brands in the Upper Upscale and Luxury chainscales growing the strongest.

The desire for travel and experiences drove growth in all three guest stay occasion categories. H1 global rooms revenue on a comparable hotels basis was led by Groups at +6% YOY (+4% rate, +2% room nights), followed by Leisure +3% (+2% rate, +1% room nights), and then Business +2% (rate +2%, room nights flat).

●     Hotel industry revenue has outpaced global economic growth in 19 out of 26 years between 2000 and 2025, with a CAGR of +4.2% (versus +2.9% CAGR for GDP).

●     The World Travel and Tourism Council (WTTC) expects the industry to add $12tn to global GDP in 2026, accounting for 10% of total output, a +3.2% growth on 2025 and ahead of wider global economic expansion.

●     Whilst in some countries geopolitical risk and the economic outlook present shorter-term uncertainties, overall conditions for the global industry remain positive for continued long-term growth, supported by stable employment markets and robust levels of business activity and economic growth. Research continues to point to consumers prioritising spend on travel and experiences, and business surveys indicate expectations for ongoing growth in corporate travel budgets.

●     For 2026 global economic output growth of +3% is still expected on top of +3.5% last year, according to the latest update of the IMF's World Economic Outlook. Meanwhile, forecasts for global air passenger travel have recently increased, with Oxford Economics now expecting growth of +4.3%, up from a +3.6% forecast in March.

●     Global hotel room nights consumed have grown at a CAGR of +2.7% over the decade to 2025 according to Oxford Economics, with a forecast CAGR of +3.6% through to 2035. The US market is expected to increase by a +2.4% CAGR from 2.2 billion to 2.8 billion room nights over the next decade, and China to be faster at a +4.0% CAGR, with the rest of world (excluding both the US and China) also forecast to grow at a CAGR of +3.8%.

●     Global hotel room net new supply grew at a CAGR of +2.3% over the decade to 2025, and was +1.0% in the US, according to STR. Their latest forecasts for US industry net supply growth are +0.4% in 2026 and +0.8% in 2027, with growth rates increasing to around +1% in the subsequent three years. Industry net new supply growth is forecast to be stronger in many emerging markets and high economic growth countries within our EMEAA region and in Greater China.

●     Over the long term, and in addition to the industry's RevPAR growth, further new hotel supply will still be needed to satisfy the demands of growing populations and rising middle classes, to drive business and commerce, and to meet the inherent desire for people to travel, connect in person and seek out new experiences.

●    Global leading hotel brands are expected to continue their long-term trend of taking market share. In periods when developers are adding less new supply, RevPAR growth from existing room inventory is expected to be stronger, as are conversion opportunities, which IHG has proven highly successful at capturing.

Openings and signings to date in 2026 reflect the strength of IHG's brand portfolio and the overall enterprise platform that we provide to hotel owners, together with the long-term attractiveness of the markets we operate in:

●    Global system of 1,049k rooms (7,109 hotels) at 30 June 2026, weighted 65% across midscale segments and 35% across upscale and luxury

●    Gross system growth +6.5% YOY, with a record 31.5k rooms opened across 197 hotels in H1 2026; openings increased +8% YOY excluding additions from the Ruby brand acquisition (0.6k in H1 2026, 2.7k rooms in H1 2025); 16.6k rooms (114 hotels) opened in Q2

●    Removal of 8.9k rooms (51 hotels) in H1 2026, representing a removal rate of 1.5% over the last 12 months, a rate which has trended back down to the anticipated underlying rate of ~1.5% on average over the medium to long term

●    Net system growth of +5.0% YOY

●     Signed 49.2k rooms (352 hotels) in H1 2026 an increase of +8% YOY excluding Ruby (5.7k rooms in H1 2025); 27.8k rooms (189 hotels) signed in Q2

●     Signings mix drives pipeline to a weighting of 52% across midscale segments and 48% across upscale and luxury, which over the coming years will continue to drive a more balanced system mix and fee stream

●     Conversions represented 43% of openings in H1 2026 and 49% of signings

●    Global pipeline of 348k rooms (2,385 hotels), representing 33% of current system size and growth of +3% YOY

●    Around 50% of the global pipeline is under construction

System and pipeline summary of movements in H1 2026 and closing positions (rooms):

●    Relentless Focus on Growth: a targeted approach to expanding our brands in high-value and growth markets

●    Brands Guests and Owners Love: our explicit intention to deliver for both groups, every time

●    Leading Commercial Engine: investment in the technology and tools that drive commercial success and make the biggest difference to guests, owners and hotel teams

●    Care for our People, Communities and Planet: a focus aligned to our 2030 Journey to Tomorrow plan

These strategic pillars allow us to build on prior investments in our brand portfolio, IHG One Rewards and the wider enterprise, and will drive IHG towards realising its full potential in a sustainable and responsible way. Over the long term, with disciplined execution, our strategy creates value for all our stakeholders by delivering growth in profits and cash flows, which can be reinvested in our business and returned to shareholders, reflecting how IHG delivers on our growth algorithm and investment case.

In 2026, we are making significant further progress on these priorities, including:

1.   Growing our brands

2.   Expanding in key geographic markets

3.   Developing our leading technology and enterprise platform

4.   Driving ancillary fee streams

5.   Delivering increased dividends and returning surplus capital to our shareholders

Each of these are summarised below. Together, these have driven further progress in H1 2026 on our growth algorithm, which we first set out in 2024 as central to delivering value creation over the medium to long term.

Building on our strong track record of driving growth and shareholder returns, in 2024 IHG set out a clear framework for value creation over the medium to long term:

●    high-single digit percentage growth in fee revenue annually on average over the medium to long term, driven largely by the combination of RevPAR growth and net system growth;

●    100-150bps expansion in fee margin annually on average over the medium to long term, driven largely by operational leverage;

●    ~100% conversion of adjusted earnings into adjusted free cash flow, on average over the medium to long term;

●    sustainably growing the ordinary dividend;

●    returning additional capital to shareholders, such as through regular share buyback programmes, further enhancing EPS growth; and

●    the opportunity for compound growth in adjusted EPS of +12-15% annually on average over the medium to long term, driven by the combination of the above and including the assumption of ongoing share buybacks.

IHG's total fee revenue growth is largely driven by the combination of RevPAR and net system growth. We expect positive operational leverage as fee revenues are anticipated to grow faster than the increase in our cost base. Additional drivers of this include structural shifts over time such as a growing proportion of franchising and increasing scale efficiencies in EMEAA and Greater China.

In addition to fee margin progress from operational leverage, IHG actively develops further opportunities to drive fee margin over the longer term. These include cost base efficiency and effectiveness initiatives, and the expansion of ancillary fee streams including growth from loyalty point sales, co-brand cards and branded residences.

Summary of progress on our growth algorithm in the first half of 2026:

IHG made strong progress on all components of our growth algorithm:

●    +7% growth in fee revenue¹;

●    +120bps expansion in fee margin¹;

●    >100% conversion of adjusted earnings¹ into adjusted free cash flow¹ on a trailing 12-month basis;

●    +10% growth in the ordinary dividend, a growth rate consistent with that delivered for each of the last four years;

●     42% progressed through 2026's $950m share buyback programme to return additional capital to shareholders; and

●     +13% growth in adjusted EPS¹ through the combination of the above.

The +120bps of fee margin¹ expansion was driven by operational leverage, with +7% growth in fee business revenue¹ achieved on a 4% YOY increase in the fee business cost base. Historically over the longer term, IHG has a strong track record of containing annual fee business costs to a low single digit percentage average annual increase, and we expect to continue this in the future. For the full year of 2026, the fee business cost base is still anticipated to increase within the range of 1-3%.

In the prior two years, additional fee margin¹ expansion has come from changes in arrangements leading to incremental fees from the US co-brand credit card agreements and from the sale of certain loyalty points (together with certain other ancillary revenues). These changes in arrangements for these two fee streams achieved the anticipated incremental step-ups within IHG's results from reportable segments in 2024 and 2025, with growth in fees and fee margin¹ therefore normalised coming into 2026. From this year onwards, the further growth that is anticipated from these fee streams therefore contributes to the 100-150bps expansion in fee margin annually on average over the medium to long term.

The combination of the fee revenue growth and fee margin¹ expansion drove a +10% increase in operating profit from reportable segments to $665m for the first half of 2026. Adjusted interest expense¹ of $106m rose +16% on the first half of last year, driven largely by the effect of returning capital to shareholders; our expected range for adjusted interest expense¹ for 2026 has narrowed to $230-240m. Our adjusted tax¹ rate was 26% in the first half of the year, which was broadly level with the comparable period last year, and a rate around 26-27% continues to be anticipated for the near term based on current legislation. Our buyback programmes led to a further 4.0% reduction year-on-year in the basic weighted average number of ordinary shares, which additionally enhances EPS growth. The combined effect of our growth algorithm drivers was therefore an increase in adjusted EPS of +13%.

The Board is confident of a continued delivery of further value creation over the medium to long term, consistent with our growth algorithm.

1.     Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Financial Statements.

●    Acquired brands growing very strongly. Ruby, the premium urban lifestyle brand acquired in February 2025, has already grown from 30 open and pipeline hotels at the time of acquisition to 42 today. The first two signings in the US will take the brand to New York and Chicago, and with Ruby's premium urban micro format and franchise-friendly model delivering attractive owner economics, we see excellent opportunities to further expand Ruby's strong European base to elsewhere in the Americas and Asia. Just over a decade on from IHG's first brand acquisition, Kimpton, this brand has gone from 78 open and pipeline hotels to double that at 159 currently, which will take its presence to more than 25 countries. When the first 51% of the Regent brand was acquired in 2018 there were 9 open and pipeline hotels, and today there are 25, and we completed the next pre-agreed step to acquire the remaining stake in the brand in recent months. Six Senses at the time of acquisition in 2019 had 16 open and 18 pipeline hotels, and today IHG has already significantly expanded these to 27 open hotels and a pipeline of 33 more. In March, Six Senses London opened, a further global flagship property as the brand develops its upper luxury presence in leading urban leisure locations as well as resort destinations, with numerous further iconic openings scheduled over the coming years.

●    Organically created brands expanding at pace. In recent years, four of the newer brands added to IHG's portfolio have been created to target more hotels joining our system as conversion or collection brands. Our versatile premium conversion brand, voco, now stands at 148 open hotels across more than 35 countries since launching in 2018, with a further 122 pipeline properties. Our Luxury & Lifestyle brand, Vignette Collection, continues to track ahead of its goal to reach 100 hotels in a decade, with 38 open since launching in 2021 and 46 in the pipeline. Our midscale conversion brand, Garner, has reached 222 open and pipeline hotels across 17 countries in less than three years since launch, making it IHG's fastest-ever scaling of a brand globally. To further capitalise on guest and owner demand in the large and fast-growing premium segment, IHG launched Noted Collection in February, with the first three signings already achieved. Addressing other customer segments, avid, our midscale new-build brand which first opened in 2018, now has 87 open hotels and 118 more in its pipeline. Whilst Atwell, created to expand IHG's presence in studio suites and related stay occasions, has reached 11 openings with a further 61 pipeline properties.

●    Powering ahead with our established brands. InterContinental, Hotel Indigo, HUALUXE, Crowne Plaza, EVEN, Holiday Inn, Holiday Inn Express, Staybridge Suites and Candlewood Suites each have pipelines representing at least 20% of current system size. Across these brands, we signed more than 200 hotels in the first half of 2026, ahead of last year. We continuously invest in new formats to deliver outperformance in key guest metrics and further increase owner returns. For example, our world-leading Holiday Inn Express brand, which recently exceeded 3,300 open hotels and has nearly 700 more in the pipeline, continues to benefit from new openings across EMEAA in its Gen 5 design, which introduces even more flexible and experiential environments, including the EXPRESS Café & Bar. Hotel Indigo, now with 198 open hotels and another 134 in its pipeline, is benefiting from the brand's recently launched Design Studio service, which helps to lower build and conversion costs and accelerates the time it takes to open.

●    Continuing to accelerate quicker-to-market conversions. Our four conversion-focused brands - voco, Garner, Vignette Collection and Noted Collection - represented around one-third of conversion signings in the first half of 2026, with the remaining two-thirds of conversion signings across our other brands. Conversion signings are frequently for portfolios of hotels and often multi-brand - an example includes 11 hotels across Germany, Belgium and France currently trading as PentaHotels, which will be converted to our Holiday Inn, voco and Garner brands. Three other multi-brand portfolio deals were signed in Vietnam, India and Japan during H1. Owners are drawn to the strength of IHG's enterprise, the high contribution of IHG One Rewards members to their hotels, our AI-powered revenue management, and IHG's leading marketing and distribution.

●    IHG selection for US Air Force lodging a further reflection of the strength of our brands and overall enterprise. In May 2026, IHG and our partner Centinel Public Partnerships LLC (Centinel) were selected by the Department of the Air Force (DAF) as its commercial partner for on-base lodging. IHG and Centinel have already worked together since 2009 to provide equivalent services through the Privatization of Army Lodging (PAL) programme, covering a portfolio of 70+ hotels and 12,000+ rooms across 40 army installations. Finalising the new 50-year agreement with DAF is in progress and operational transfer of the hotels into IHG's system will begin later in 2027. This is expected to initially include hotels on 23 Air Force installations across the US and its territories.

●    Growing in every chainscale from Midscale to Upper Luxury. Our more recent brand additions in Midscale of avid and Garner, together with Candlewood Suites in the same chainscale, currently represent 6% of system size and 10% of our pipeline. Upper Midscale, driven by the Holiday Inn Brand Family, is 60% of system size and 43% of pipeline. Our brands in Upscale account for 20% of system size and 26% of pipeline. Meanwhile, in Luxury & Lifestyle, our highest fee-per-key category, these six brands represent 14% of system size and 21% of pipeline. Our brand development and overall strength across our leading technology and enterprise platform are successfully fuelling growth across the portfolio.

●    Driving deeper brand awareness and guest connections. Our individual hotels continue to receive important recognition. There was a growing number of highly influential awards from Forbes Travel Guide, Condé Nast, Vogue and Travel + Leisure across hotels in our Luxury & Lifestyle category. Kimpton was also ranked as the #1 Upper Upscale hotel brand in North America based on guest satisfaction by JD Power, and, within Essentials, Holiday Inn has once again been ranked as the most trusted hotel brand among US consumers. Other examples of building brand awareness include Regent's expanded partnerships across global film festivals, and renewed IHG masterbrand partnerships with Rugby Australia for a further three years following IHG's support of last year's Lions Tour. In China, an esports partnership King Pro League (KPL), alongside student-exclusive offers via the IHG One Rewards WeChat channel and curated itineraries, are strengthening guest connections and long-term loyalty with next generation travellers amid the country's 230 million Gen Z consumers. We are reinforcing our brand as a leading employer through investment in talent development, career pathways, wellbeing and inclusion. To that end, we are pleased that IHG has additionally been recognised as a top employer in the Middle East in the 2026 Great Place to Work rankings.

●    Reaching new markets. In the first half of 2026, there were 13 opening debuts to new countries for individual IHG brands, including two countries with no prior IHG presence. Garner has become IHG's fastest ever brand to scale globally, now already present in 12 countries with important debut openings in the first half of 2026 including in Greater China. Vignette Collection and voco also entered six more countries between them, including voco in Malaysia, Vignette in Italy and both brands entering Turkey. Kimpton marked its debut opening in Greece, and the debut of Hotel Indigo in Turks & Caicos will soon be followed by both Kimpton and InterContinental. The opening of Six Senses London marked the brand's 23^rd country across its portfolio of 27 hotels in exclusive locations around the world.

●    Growing in each of our three largest markets. Our US estate reached 4,129 hotels, with net system growth of +1.4% YOY, and is set to accelerate in the coming years supported by the US pipeline representing 20% of current system size. In Greater China, in early 2026 we celebrated our 900th opening, and net system growth accelerated to +11.7% YOY with another record period of both hotel openings and signings, the latter taking the pipeline to 591 hotels, which represents +52% future rooms growth. After the US and China, our next largest country market is the UK with 378 hotels, with net system growth of +4.1% YOY driven largely by conversion activity.

●    Expanding in other high value, developed markets. Germany is one of Europe's largest hotel markets, with strong domestic consumption and inbound travel, and is also one of the largest sources of international outbound travel globally. Net system growth was +7.0% YOY in Germany, and IHG's combined open and pipeline hotels now stand at 253, more than double the 110 at the start of 2024. With strong progress in many other priority country markets, our Europe sub-region is approaching 1,000 open hotels, with over 250 more in the pipeline. Japan, another example of a high value developed market, now has 62 open hotels and 34 in the pipeline, with 3 openings and 14 signings achieved in the first half of 2026. IHG has also further grown its presence of 73 hotels in Australia and New Zealand.

●    More than doubling IHG's presence in high growth, emerging markets. In India, a record 24 signings in the first half of 2026 took the pipeline to 110 hotels, on top of 53 already open, with this rapidly accelerating momentum supporting IHG's ambition to reach more than 400 open and pipeline hotels within the next five years. Signings included a landmark five-hotel portfolio with India's largest private airport operator, and three signings for the InterContinental brand. Saudi Arabia has 48 open and 63 pipeline hotels, with the country set to have all six of IHG's Luxury & Lifestyle brands present by 2028. Across the emerging markets in our East Asia & Pacific sub-region, we have 144 open hotels currently and almost 100 more properties in the pipeline. Notable developments in the period include signing a four-brand portfolio in Ho Chi Min City, Vietnam, and a further five signings in Thailand.

3. Developing our leading technology and enterprise platform

●    Strong mobile and digital channels growth. IHG's direct digital booking channels delivered 26% of total room revenue in the first half of 2026. Usage of the IHG app continues to drive this, with visits growing +9% in the last 12 months and 65% of elite loyalty members used the app during this period. Our mobile and digital channels maximise guest choice and value through IHG's Guest Reservation System (GRS). Recent developments, which are activated by rolling out cloud-based Property Management Systems (PMS), provide hotel owners with a full-service digital solution from initial search and booking flow, and throughout the guest stay. These include new pre-arrival guest messaging which will activate further upsell opportunities, improved mobile check-in, digital room key solutions, enhanced digital F&B ordering and tipping services, and additional digital guest hub and in-stay enquiry services over communications platforms such as WhatsApp. These services will be made available at a lower cost to owners, reflecting the scale advantages of IHG's enterprise platform.

●    Enhancing guest acquisition through AI. Latest developments include:

o    IHG's new hotel content management platform is in phased rollout over 2026 across our app and all IHG booking websites, making it easier and faster for hotel owners to create and update compelling content to showcase their properties using AI. This includes machine translation into multiple languages and optimised AI search of structured content, new media types such as video, 360 images, floor plans and virtual tours, and enriched information on the properties and nearby attractions.

o    A new Customer Relationship Management (CRM) platform is also in development this year to help deepen loyalty and drive guest satisfaction, delivering a unified guest view that will support better guest engagement and more tailored, high-touch personalised experiences during booking and on-property.

o    Our investments in cloud-based data and AI are also unlocking marketing efficiencies. More personalised marketing campaigns employing predictive analytics have been driving 3-4x higher returns on investment. Other AI-driven technology is creating improvements in relevancy, speed and investment return, such as using GenAI to localise TV advertising for individual countries, which significantly reduces the development timeline and costs, whilst increasing guest relevancy.

o    In July we launched conversational search across our websites and app to allow travellers to describe in their own words what they are looking for. Similarly, our ChatGPT plug-in recommends IHG hotels based on travellers' preferences, surfacing real-time availability, pricing, interactive maps and amenities, helping guests move naturally from discovery to comparison and onward to IHG's direct booking channels. IHG is also participating in Google's Agentic AI booking pilot which allows guests to book hotels within Google's AI Mode experience (which are still processed as direct bookings for IHG), or guests are redirected to IHG.com to book loyalty member rates. Also with Google, IHG is part of their Direct Offers pilot to surface special promotions directly within a person's AI-assisted trip planning that provides a link to book directly with IHG.

●    Driving additional commercial optimisation across IHG's technology ecosystem. Our new Revenue Management System (RMS) is delivering revenue uplifts and market share gains for owners and receiving very positive user feedback. The RMS is fully rolled out across our global estate since the start of this year, and provides hotel owners with a best-in-class cloud-based platform that incorporates data science, AI machine learning and forecasting tools to deliver advanced insights. Similarly, we are providing owners with best-in-class cloud-based Property Management Systems (PMS) that optimise their day-to-day operations and deliver improvements such as streamlined front desk processes, colleague onboarding and training. These next-generation PMS solutions from HotelKey, Oracle and Shiji will reach 4,000 hotels by the end of 2026. Meanwhile, Digital Check-Out has already reached over 4,000 hotels, and we have further grown IHG's digital chatbot service, which helps solve guest queries, saves hotel teams time and improves customer satisfaction, and is on track to top 6 million conversations this year.

●    Boosting loyalty and brand awareness even further. IHG One Rewards had over 160 million members globally at the start of 2026. Gross enrolments continue to grow strongly, up +15% YOY in the first half of the year, and loyalty penetration further increased to 67% of all room nights booked, topping 73% in the US. Loyalty members typically spend ~20% more in hotels than non-members and are around 10x more likely to book direct. The number of Reward Night redemptions continues to grow and there was +7% growth YOY in the number of Milestone Rewards selected, reflecting the active engagement of loyalty members. IHG also continues to add loyalty partnerships through airlines and business traveller programmes, including in the first half of 2026 with ANA Mileage Club, the programme for Japan's largest airline, and another with Germany's leading consumer loyalty programme, PAYBACK, offering new ways for its more than 35 million customers to earn and redeem rewards. Masterbrand awareness of both IHG Hotels & Resorts and IHG One Rewards continues to strengthen through key partnerships and campaigns, including our ongoing sponsorship of premier sporting events like Six Nations Rugby and the US Open, as well as the ongoing roll-out of the masterbrand endorsement for our hotels 'By IHG' across on-property, digital and marketing.

●    Delivering on the scale and skill advantages of the System Fund. The System Fund is managed for the benefit of hotels in the IHG system, and not to a surplus or deficit for IHG over the longer term. System Fund revenues in the 2025 financial year totalled $1.7bn, +25% more than 2019. In the first half of 2026, System Fund revenues increased a further +7% YOY, which, together with our focus on driving efficiencies and effectiveness, supports the strength of funding arrangements. Following a review in 2024 and leveraging the growing scale and efficiency improvements in the System Fund, IHG lowered from the start of that year its standard loyalty assessment fee that owners pay into the Fund and increased certain Reward Night reimbursements owners receive from the Fund when points are redeemed for stays, which additionally improves owner economics. From the Marketing & Reservation fee that owners pay into the Fund, expenditure by the Fund on marketing in the 2025 financial year totalled $542m, +18% higher than 2019, and we continue to increase both the quantum of marketing and the effectiveness of what is spent by the System Fund on behalf of IHG owners. As IHG's RevPAR and system size continues to grow in the future, so too will System Fund capacity, which in turn will drive further scale advantage and efficiencies, enabling IHG's ongoing investment in leading technology and the wider enterprise for the benefit of hotels and owners.

●    Further enhancements to hotel owners' commercial delivery. IHG is continuously building upon the enterprise platform which already provides core benefits to our hotel owners. By leveraging IHG's growing scale and capabilities, our enterprise is reducing costs for owners and improving their performance and returns. Starting in the Americas, where a large number of owners already select additional commercial support from IHG beyond the core tech stack and enterprise services, we are currently piloting enhanced commercial solutions in 500 hotels. These new solutions provide even more advanced support at an overall cost that is lower than current paid-for revenue management services for approximately 75% of participating owners. The new service combines IHG's established revenue management services with expanded local sales programmes and digital marketing support, using the latest technology, data and insights. Owner feedback to date has been very positive, and we expect to roll out the new service in 2027 to the remainder of the 2,000+ Americas hotels already benefitting from IHG's existing revenue management services, then extend it to the 1,500+ hotels not participating in the current service.

●    Sale of loyalty points to consumers. The concluding step-change in arrangements delivered the expected annual run-rate of this fee stream of over $50m in 2025, with these fees fully recognised within IHG's revenue and operating profit from reportable segments. Further growth is expected in future years, which will continue to enhance IHG's growth algorithm, driven by the ongoing strengthening and expansion of the IHG One Rewards programme.

●    US co-brand credit cards. IHG's US co-brand credit card business entered into new agreements with our issuing and financial services partners in November 2024, which delivered in 2025 the expected $80m+ annual run-rate of this fee stream in terms of the portion recognised within IHG's revenue and operating profit from reportable segments. Progress to date in 2026 continues to support this fee stream to growing to $120m+ by 2028, with further growth anticipated in the years beyond. The balance of fees that is recognised within System Fund revenue is also expected to grow meaningfully over the term of the new agreements. The number of US co-brand card members has continued to grow in 2026, alongside growth in total card spend. Card products will evolve over the course of the agreement with Chase, and we continue to deepen our partnership across travel-related services.

●    Expanding with further co-brand agreements in additional markets. The attraction of co-branded IHG One Rewards cards is intrinsically linked to the overall appeal and growth of the loyalty programme. They drive further membership and loyalty to that programme, deepen guest relationships and deliver more business to our hotels. Co-brand card holders stay even more frequently and spend more in IHG hotels. Beyond the US, further co-brand priority growth markets are targeted for expansion in the coming years. In February, we signed a new UK co-branded IHG One Rewards debit card agreement with Revolut, the UK's largest fintech company, alongside Visa, with two card products launched on 30 June. In recent months we also announced a new agreement with Sumitomo Mitsui Card Company, one of the largest credit card issuers in Japan, along with Visa, with new co-brand card products to launch in 2027 in this important market.

●    Branded residential properties. A further example of driving ancillary fees through the strength of IHG's brands is their ability to generate increased sales of residential property, typically alongside a hotel development with shared services and facilities. This industry segment has almost tripled in number of branded residential developments worldwide over the last decade and, based solely on the schemes already signed, is forecast by Savills to approximately double in size between 2025 and 2032. Hotel developers, particularly in the Luxury category, are increasingly pursuing mixed-use developments that incorporate a residential component, and our brands are also seeing growing interest for use in residential-only developments. IHG currently has 35 branded residential projects open or selling across 19 countries, with additional opportunities in the pipeline. In H1 2026, we earned further fees from sales of branded residences at Six Senses Dubai Marina, building on the success of the previously fully sold development at Six Senses The Palm, Dubai, and from the sale of further units at locations such as InterContinental Halong Bay. Signings in 2026 to date for future branded residences developments included The Regent Ho Tram in Vietnam, adding to our leading Luxury position in the country. Fee growth is expected to be more substantial in 2027 and beyond, as additional residential units under development are sold, and as we continue to leverage the global reach and potential of IHG's Luxury & Lifestyle brands.

●    Consistent capital allocation approach. IHG's asset-light business model is highly cash-generative through the cycle and enables us to invest in our brands and strengthen our enterprise platform. We have a disciplined approach to capital allocation which ensures that the business is appropriately invested in, whilst looking to maintain an efficient and conservative balance sheet. IHG's perspectives on the uses of cash generated by the business remain unchanged: ensuring we invest in the business to optimise growth that will drive long-term shareholder value creation, funding a sustainably growing dividend, and then returning surplus capital to shareholders, whilst targeting our leverage ratio within a range of 2.5-3.0x net debt:adjusted EBITDA to maintain an investment grade credit rating.

●    Sustainably growing the ordinary dividend. IHG typically pays dividends weighted approximately one-third to the interim and two-thirds to the final payment. The total dividend for 2025 was 184.5¢, an increase of +10% on the prior year. The interim dividend for 2026 will be 64.5¢, representing a further +10% increase which is an annual growth rate consistently delivered for shareholders since 2022. The ex-dividend date for the interim dividend is Thursday 20 August 2026 (Friday 21 August 2026 for ADRs) and the record date is Friday 21 August 2026. The interim dividend will be paid on Thursday 1 October 2026, resulting in a cash outflow of around $96m. Total dividends paid to shareholders in 2026 will amount to approximately $285m.

●    Returning surplus capital. As announced at our 2025 FY results, a $950m share buyback programme is returning surplus capital to shareholders in 2026. This follows the $900m programme in 2025, $800m in 2024, $750m in 2023 and the $500m programme announced in 2022, which already reduced the total number of voting rights in the Company in these years by 4.8%, 4.6%, 6.1% and 5.0%, respectively. The 2026 programme was 42% complete with $397m cumulatively spent to 30 June, repurchasing 2.7m shares. The 2026 programme to that date had therefore reduced the total number of voting rights by a further 1.8% to 149.0m.

●    Total returns to shareholders. The $950m share buyback programme, together with the anticipated sustainable growth in ordinary dividend payments which IHG has increased at a rate of 10% a year for each of the last four years, would result in over $1.2bn being returned to shareholders in 2026. This is equivalent to 5.8% of IHG's $21.3bn market capitalisation at the start of 2026, and 5.3% of IHG's most recent $23.1bn market capitalisation.

●    Leverage maintained within 2.5-3.0x target range. IHG's net debt:adjusted EBITDA ratio was 2.5x at 31 December 2025 and 2.6x at 30 June 2026. On a prospective basis, given analyst consensus expectations for growth in EBITDA and cash generation in 2026, together with the $950m share buyback programme, leverage at the end of 2026 would be expected to remain within our target range of 2.5-3.0x.

a.         Re-presented to present foreign exchange (losses)/gains on a separate line which was previously presented within 'Net financial expenses'.

b.         Americas and EMEAA include revenue and operating profit before exceptional items from both fee business and owned & leased hotels. Greater China includes revenue and operating profit before exceptional items from fee business.

c.         Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Interim Financial Statements.

d.         Adjusted earnings as used within adjusted earnings per share, a non-GAAP measure.

e.         Percentage change considered not meaningful, such as where a positive balance in the latest period is comparable to a negative or zero balance in the prior period.

Global RevPAR increased year-on-year by 4.4% in the first quarter, 3.5% in the second quarter and 4.1% in the first half, reflecting the diversity of our global portfolio. Our other key driver of revenue, net system size, increased by 5.0% year-on-year to 1,048,731 rooms.

Total revenue increased by $140m (5.6%) to $2,659m, including a $60m increase in System Fund and reimbursable revenue. Revenue from reportable segments^a increased by $80m (6.8%) to $1,255m, driven by a combination of system and RevPAR growth. Underlying revenue^a increased by $70m (6.0%) to $1,238m, with underlying fee revenue^a increasing by $57m (6.3%) to $958m. Owned & leased revenue increased by $15m (5.9%) to $270m.

Operating profit increased by $48m from $623m to $671m, including $3m operating exceptional costs in relation to the global efficiency programme, compared to operating exceptional items of $12m recorded in the comparable period. The System Fund and reimbursable result declined by $22m, to a profit of $9m.

Operating profit from reportable segments^a increased by $61m (10.1%) to $665m. Fee business operating profit increased by $50m (8.5%) to $640m, driven by RevPAR and system growth. Owned & leased operating profit improved from $18m to $20m. Underlying operating profit^a increased by $62m (10.4%) to $659m.

Fee margin^a increased by 1.2%pts to 65.9%, reflecting positive operating leverage.

The impact of the movement in average USD exchange rates for 2026 netted to a $6m benefit to operating profit from reportable segments^a, compared to the same measure when calculated restating 2026 figures at 2025 exchange rates.

If the average exchange rate during July 2026 had existed throughout the first half of 2026, the 2026 operating profit from reportable segments^a would have been $2m lower.

The Group operates a System Fund to collect and administer assessments from hotel owners for specified purposes of use including marketing, reservations, certain hotel services and the Group's loyalty programme, IHG One Rewards. The System Fund also benefits from certain proceeds from the sale of loyalty points under third-party co-branding arrangements and the sale of points directly to members and other third parties. The Fund is not managed to generate a surplus or deficit for IHG over the longer term, but is managed for the benefit of hotels in the IHG system with the objective of driving revenues for the hotels in the system.

The growth in the IHG One Rewards programme means that, although assessments are received from hotels upfront when a member earns points, more revenue is deferred each year than is recognised in the System Fund. This can lead to accounting losses in the System Fund each year as the deferred revenue balance grows which does not necessarily reflect the Fund's position and the Group's capacity to invest.

Reimbursable revenues represent reimbursements of expenses incurred on behalf of managed and franchised properties and relate, predominantly, to payroll costs at managed properties where IHG is the employer. As IHG records reimbursable expenses based upon costs incurred with no added mark up, this revenue and related expenses have no impact on either operating profit or net profit.

In the six months to 30 June 2026, System Fund and reimbursable revenues increased $60m (4.5%) to $1,404m. This was driven by the growth in System Fund revenue driven by the continued increase in net system size together with RevPAR growth.

The System Fund and reimbursable result declined from a $31m profit to a $9m profit, primarily due to additional investments in marketing and loyalty aligning to the Fund's objective to operate broadly at breakeven over the longer term.

a.         Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Interim Financial Statements.

Operating exceptional items for the six months to 30 June 2026 of $3m (2025: $12m) comprised costs relating to ongoing delivery of the global efficiency programme. Further information on operating exceptional items can be found in note 5 to the Interim Financial Statements.

Net financial expenses increased to $86m from $66m. Adjusted interest^a, which adds back interest attributable to the System Fund, increased by $15m to an expense of $106m, largely driven by an $18m increase in total interest costs on public bonds due to a rise in total borrowings and average interest rates. Adjusted interest^a increased by a lesser amount due to a $5m decrease in System Fund interest.

Foreign exchange losses for the six months to 30 June 2026 were $7m (2025: gains of $79m). Foreign exchange gains and losses are predominantly due to the Group's internal funding structure whereby subsidiaries with a sterling functional currency hold intra-group monetary assets and liabilities denominated in other currencies, including US Dollars.

Contingent purchase consideration arose on the acquisitions of Regent and the Ruby brand. The net effect of remeasurements was nil for the six months to 30 June 2026 (2025: $3m loss). The total contingent purchase consideration liability at 30 June 2026 is $59m (31 December 2025: $98m). During 2026, the Group exercised an option to acquire a further 25% of the Regent shareholding for $39m, of which $20m was paid in the first half of 2026. Further information can be found in note 12 to the Interim Financial Statements.

Adjusted tax^a has been calculated by applying a blended effective tax rate of 26% (2025: 26%). This represents the weighting of the annual tax rates of the Group's key territories using corporate income tax rates substantively enacted at 30 June 2026 to provide the best estimate for the full financial year. Further information on tax can be found in note 6 to the Interim Financial Statements.

The Group's basic earnings per ordinary share is 283.3¢ (2025: 300.1¢). Adjusted earnings per ordinary share^a increased by 32.2¢ (13.3%) to 274.7¢.

The Board is declaring an interim dividend of 64.5¢, an increase of 10% on the 58.6¢ paid in 2025. The ex-dividend date for ordinary shares is Thursday 20 August 2026 and for American Depositary Receipts the ex-dividend date is Friday 21 August 2026. The record date (for both ordinary shares and American Depositary Receipts) is Friday 21 August 2026. The corresponding dividend amount in pence sterling per ordinary share will be announced on Friday 11 September 2026, calculated based on the average of the market exchange rates for the three working days commencing 8 September 2026. The dividend will be paid on Thursday 1 October 2026, resulting in a cash outflow of around $96m. This will result in total dividends paid to shareholders in 2026 amounting to approximately $285m.

Registered shareholders may elect to receive their dividend payments in US Dollars (USD) instead of British Pounds (GBP). Elections to receive dividend payments in USD can be made by completing the Currency Form which is available from www.shareview.info/products/directdividends. Alternatively, registered shareholders can contact the Company's Registrar, Equiniti, by telephone on +44 (0) 371 384 2132 to request a Currency Form. For shares held in CREST, an election for USD will be permitted using the CREST dividend election process. CREST participants should ensure a USD CREST Memorandum Account has been enabled.

A Dividend Reinvestment Plan ("DRIP") is provided by Equiniti Financial Services Limited. The DRIP enables the Company's shareholders to elect to have their cash dividend payments used to purchase the Company's shares. More information can be found at www.shareview.info/products/drip. The cut-off date and time for the receipt of USD payment elections and DRIP elections for the interim dividend referred to above is 11 September 2026 at 5:00pm (UK time).

In February 2026, the Board approved a $950m share buyback programme to be completed in 2026. This follows the $900m programme in 2025, the $800m programme announced in 2024, the $750m programme announced in 2023 and the $500m programme in 2022, which already reduced the total number of voting rights in the Company by 4.8%, 4.6%, 6.1% and 5.0%, respectively. In the six months to 30 June 2026, 2.7m shares were repurchased for $397m.

a.         Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Interim Financial Statements.

Adjusted EBITDAa reconciliation	6 months ended 30 June
	2026	2025
	$m	$m
Cash flow from operations	601	543
Cash flows relating to operating exceptional items	7	4
Impairment loss on financial assets	(11)	(14)
Other non-cash adjustments to operating profit	(53)	(44)
System Fund and reimbursable result	(9)	(31)
System Fund depreciation and amortisation	(33)	(40)
Other non-cash adjustments to System Fund result	(24)	(26)
Working capital and other adjustments	121	158
Capital expenditure: contract acquisition costs, net of repayments	98	87
	_____	_____
Adjusted EBITDAa	697	637
	_____	_____

a.         Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Interim Financial Statements.

For the six months ended 30 June 2026, cash flow from operations was $601m, an increase of $58m on the comparable period. This was predominantly due to the higher operating profit from reportable segments^a.

Cash flow from operations is the principal source of cash used to fund interest and tax payments, capital expenditure, ordinary dividend payments and additional returns of capital to shareholders.

Adjusted free cash flow^a was an inflow of $360m, an increase of $58m on the prior year. Adjusted EBITDA^a increased by $60m due to the higher operating profit from reportable segments^a. Key money contract acquisition costs net of repayments reduced by $3m, and tax payments were $18m lower due to phasing of payments in the US. These movements were partly offset by a $22m reduction in the System Fund and reimbursable result, which was primarily due to additional investments in marketing and loyalty aligning to the Fund's objective to operate broadly at breakeven over the longer term, and a $27m increase in net interest paid reflecting the increase in average net debt. Working capital and other adjustments of $121m includes $85m of cash inflow related to deferred revenue, driven primarily by $68m related to the loyalty programme.

Net capital expenditure^a was $123m (2025: $85m) and gross capital expenditure^a was $158m (2025: $124m). Gross capital expenditure^a comprised: $83m key money contract acquisition costs, $12m maintenance, $42m gross recyclable investments and $21m System Fund capital investments. Net capital expenditure^a includes offsets from other disposals and repayments of $2m, and $33m System Fund depreciation and amortisation.

Net debt^a increased by $330m from $3,333m at 31 December 2025 to $3,663m at 30 June 2026. During the period there were $564m of payments related to ordinary dividends and the share buyback programmes, including transaction costs. The change in net debt^a includes positive net foreign exchange impacts of $11m and $53m adverse impacts for other non-cash adjustments.

As at 30 June 2026, the Group had total liquidity of $2,298m (31 December 2025: $2,599m), comprising $1,500m of undrawn bank facilities and $798m of cash and cash equivalents (net of overdrafts and restricted cash). The decrease in total liquidity from 31 December 2025 of $301m is primarily due to net cash outflows of $293m.

The Group currently has $4,144m of sterling and euro bonds outstanding. The bonds mature in August 2026 (£350m), May 2027 (€500m), October 2028 (£400m), November 2029 (€600m), September 2030 (€850m) and September 2031 (€750m). There are currency swaps in place on the euro bonds, fixing the May 2027 bond at £436m, the November 2029 bond at $657m, the September 2030 bond at $990m and the September 2031 bond at $834m. The Group currently has senior unsecured long-term credit ratings of BBB from S&P and Baa2 from Moody's.

The Group is further financed by a $1,500m syndicated bank revolving credit facility (RCF) which matures in December 2030. There are two one-year extension options that are at the lenders' discretion. There are no financial covenants in the RCF. The RCF was undrawn at 30 June 2026.

It is management's opinion that the current working capital levels and available facilities are sufficient for the Group's present liquidity requirements.

a.         Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Interim Financial Statements.

Total gross revenue^a provides a measure of the overall strength of the Group's brands. It comprises total rooms revenue from franchised hotels and total hotel revenue from managed, exclusive partner and owned & leased hotels and excludes revenue from the System Fund and reimbursement of costs. Other than owned & leased hotels, total gross revenue is not revenue attributable to IHG as it is derived from hotels owned by third parties.

Total gross revenue in IHG's system increased by 9.1% (7.1% increase at constant currency) to $18.2bn, driven by the combination of RevPAR growth and the increase in the number of hotels in our system.

a.     Definitions for total gross revenue can be found in the 'Key performance measures and non-GAAP measures' section to accompany the above reconciliation to the Interim Financial Statements

b.     Year-on-year percentage movement calculated from unrounded source figures to provide more precise growth indicators for these figures which are presented in billions of dollars.

c.     Includes exclusive partner hotels.

Global RevPARa movement by brand	6 months ended 30 June 2026
Total comparable estate by brand
InterContinental	5.3%
Kimpton	14.3%
Hotel Indigo	6.0%
voco	3.4%
Crowne Plaza	3.9%
Holiday Inn Express	3.0%
Holiday Inn	2.0%
Staybridge Suites	2.8%
Candlewood Suites	4.4%
All brands	4.1%
Fee business: all brands	4.0%
Owned & leased: all brands	6.2%

a.     RevPAR (revenue per available room), ADR (average daily rate) and occupancy are on a comparable basis, based on comparability as at 30 June 2026 and include hotels that have traded in all months in both the current and the prior year. The principal exclusions in deriving these measures are new openings, properties under major refurbishments and removals. See 'Key performance measures and non-GAAP measures' section for further information on the definition of RevPAR.

a.     Includes exclusive partner hotels.

a.     Includes exclusive partner hotels.

AMERICAS
	6 months ended 30 June
Americas results
	2026	2025	%
	$m	$m	change
Revenue from the reportable segmenta
Fee business	493	475	3.8
Owned & leased	91	86	5.8
	_____	_____	_____
	584	561	4.1
	_____	_____	_____
Operating profit from the reportable segmenta
Fee business	415	394	5.3
Owned & leased	27	21	28.6
	_____	_____	_____
	442	415	6.5
Operating exceptional items	(1)	(1)	-
	_____	_____	_____
Operating profit	441	414	6.5
	_____	_____	_____

a.     Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Interim Financial Statements.

b.     Percentage change considered not meaningful, such as where a positive balance in the latest period is comparable to a negative or zero balance in the prior period.

a.     Includes exclusive partner hotels.

a.     Includes exclusive partner hotels.

EMEAA RevPARa movement by brand	6 months ended 30 June 2026
Total comparable estate by brand
Six Senses	2.4%
InterContinental	3.8%
Hotel Indigo	3.8%
voco	2.1%
Crowne Plaza	2.7%
Holiday Inn Express	2.4%
Holiday Inn	1.1%
Staybridge Suites	(4.8)%
All brands	3.0%
Fee business: all brands	3.0%
Owned & leased: all brands	4.3%

a.     Includes exclusive partner hotels.

a.     Includes exclusive partner hotels.

Greater China RevPARa movement by brand	6 months ended 30 June 2026
Total comparable estate by brand
Regent	26.3%
InterContinental	3.8%
Hotel Indigo	9.5%
HUALUXE	3.8%
Crowne Plaza	2.0%
Holiday Inn Express	(2.3)%
Holiday Inn	(1.0)%
All brands	3.1%

a.     Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Interim Financial Statements.

CENTRAL

Central fee business revenue is mainly comprised of technology fee income, co-brand licensing fees and a portion of revenue from the consumption of certain IHG One Rewards points. Central revenue additionally includes revenue recognised from insurance activities relating to the managed hotel insurance programme. Central revenue increased by $22m (12.9%) to $192m, primarily driven by the growth of IHG's system size.

Gross costs increased by $12m (7.8%) year on year, driven by investment to support growth initiatives, technology and AI capabilities, and spend phasing that is expected to reverse in the second half of the year, partly offset by lower claims associated with the insurance programme.

The resulting $27m operating profit from the reportable segment^a was an increase of $10m year-on-year. Operating profit of $26m included a $1m exceptional cost in relation to the global efficiency programme (further information on exceptional items can be found in note 5 to the Interim Financial Statements).

●    Total rooms revenue from franchised hotels;

●    Total hotel revenue from managed and exclusive partner hotels including food and beverage, meetings and other revenues, reflecting the value driven by IHG and the base upon which fees are typically earned; and

●    Total hotel revenue from owned & leased hotels.

Total gross revenue is used to describe this measure as it aligns with terms used in the Group's management, franchise and exclusive partner agreements and therefore is well understood by owners and other stakeholders.

●    System Fund and reimbursables - the System Fund is not managed to generate a surplus or deficit for IHG over the longer term; it is managed for the benefit of the hotels within the IHG system. The System Fund is operated to collect and administer cash assessments from hotel owners for specific purposes of use including marketing, the Guest Reservation System, certain hotel services and the Group's loyalty programme. There is a cost equal to reimbursable revenues so there is no profit impact. Cost reimbursements are not applicable to all hotels, and growth in these revenues is not reflective of growth in the performance of the Group. As such, management does not include these revenues in their analysis of results.

●    Exceptional items - these are identified by virtue of their size, nature or incidence with consideration given to consistency of treatment with prior years (including items that impact more than one reporting period) and between gains and losses. Examples of exceptional items include, but are not restricted to, gains and losses on the disposal of assets, impairment charges and reversals, the costs of individually significant legal cases or commercial disputes, and reorganisation costs. As each item is different in nature and scope, there will be little continuity in the detailed composition and size of the reported amounts which affect performance in successive periods. Separate disclosure of these amounts facilitates the understanding of performance including and excluding such items. Further detail of amounts presented as exceptional is included in notes 5 and 6 to the Interim Financial Statements.

●    Underlying revenue;

●    Underlying operating profit;

●    Underlying fee revenue; and

●    Fee margin.

●    Interest income is recorded in the System Fund on the outstanding cash balance relating to the IHG loyalty programme. These interest payments are recognised as interest expense for IHG.

●    Other components of System Fund interest income and expense, including capitalised interest, lease interest expense and interest income on overdue receivables.

●    Key money, which reflects amounts paid to owners to secure management and franchise agreements;

●    Maintenance capital expenditure, which reflects investments to maintain our systems, corporate offices and owned & leased hotels;

●    System Fund capital investments which are strategic investments to drive growth at hotel level; and

●    Recyclable investments, such as all investments in associates and joint ventures and any loans to facilitate third-party ownership of hotel assets, which are generally intended to be recoverable in the medium term and are to drive growth of the Group's brands and expansion in primary markets.

a.     Percentage change considered not meaningful, such as where a positive balance in the latest period is comparable to a negative or zero balance in the prior period.

a.     Before exceptional items.

b.     Percentage change considered not meaningful, such as where a positive balance in the latest period is comparable to a negative or zero balance in the prior period.

EMEAA

a.     Before exceptional items.

b.     Percentage change considered not meaningful, such as where a positive balance in the latest period is comparable to a negative or zero balance in the prior period.

a.     Central fee business revenue and operating profit as per note 3 to the Interim Financial Statements, and excludes revenue and operating profit from insurance activities of $14m and $5m, respectively (2025: $12m and $4m loss).

a.     Excludes depreciation of right-of-use assets

a.     An adjustment was previously made to remove foreign exchange gains presented within 'financial income'. These are now reported separately in the Group Income Statement. This change does not affect the total adjusted interest.

The principal risks and uncertainties that could substantially affect IHG's business and results are set out on pages 48 to 53 of the IHG Annual Report and Form 20-F 2025 (the 2025 Annual Report).

Our Board and management continue to regularly review our principal risks and uncertainties, opportunities and emerging risks, risk management and internal control arrangements, considering a range of developments across the operating environment, including geopolitical instability particularly the ongoing conflict in the Middle East (and related disruption to regional travel flows, impact on supply chains, energy markets, inflation and interest rates), evolving legislative and regulatory developments, continuing cybersecurity threats and the rapid pace of technology development across the travel and hospitality sector.

While these developments have affected the level of uncertainty associated with, and the interactions between, a number of the Group's principal risks, the Board considers that the principal risks and uncertainties which the Group faces in relation to the achievement of our objectives for the remainder of 2026, summarised below, remain substantively unchanged from those disclosed in the 2025 Annual Report:

•   Guest preferences or loyalty for IHG branded hotel experiences and channels

•   Owner preferences for, or ability to invest in, our brands

•   Talent and capability attraction, retention and development

•   Data and information usage, storage, security and transfer

•   Ethical and social expectations

•   Legal, regulatory and contractual complexity or litigation exposures

•   Supply chain efficiency and resilience (including corporate and hotel products and services)

•   Operational resilience to incidents or disruption or control breakdown (including geopolitical, safety and security, cybersecurity, fraud and health-related)

•   Our ability to deliver technological or digital performance or innovation at scale and speed

•   The impact of climate-related physical and transition risks

These principal risks and uncertainties are supported by a broader description of risk factors set out on pages 264 to 271 of the 2025 Annual Report.

There were no material related party transactions during the six months to 30 June 2026.

As at 30 June 2026, the Group had total liquidity of $2,298m, comprising $1,500m of undrawn bank facilities and $798m of cash and cash equivalents (net of overdrafts and restricted cash). There remains a wide range of possible planning scenarios over the going concern period. The scenarios considered and assessment made by the Directors in adopting the going concern basis for preparing these financial statements are included in note 1 to the Interim Financial Statements.

Based on the assessment completed, the Directors have a reasonable expectation that the Group has sufficient resources to continue operating until at least 31 December 2027. Accordingly, they continue to adopt the going concern basis in preparing the Interim Financial Statements.

The Directors confirm that to the best of their knowledge:

•   The condensed set of Financial Statements has been prepared in accordance with UK-adopted IAS 34 and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority;

•   The interim management report includes a fair review of the important events during the first six months, and their impact on the financial statements and a description of the principal risks and uncertainties for the remaining six months of the year, as required by DTR 4.2.7R; and

•   The interim management report includes a fair review of related party transactions and changes therein, as required by DTR 4.2.8R.

On behalf of the Board

*Other reserves comprise the capital redemption reserve, shares held by employee share trusts, other reserves, fair value reserve, cash flow hedge reserves and currency translation reserve.

All items within total comprehensive income are shown net of tax.

		Hierarchy of fair value measurement		Fair value	Amortised cost	Not categorised as a financial instrument	Total
				$m	$m	$m	$m
	Financial assets
	Other financial assets	1,3		163	79	-	242
	Cash and cash equivalents	1		280	545	-	825
	Derivative financial instruments	2		113	-	-	113
	Deferred compensation plan investments	1		337	-	-	337
	Trade and other receivables	-		-	866	97	963
	Financial liabilities
	Derivative financial instruments	2		(18)	-	-	(18)
	Deferred compensation plan liabilities	1		(337)	-	-	(337)
	Loans and other borrowings	-		-	(4,147)	-	(4,147)
	Trade and other payables	3		(39)	(742)	(55)	(836)

INDEPENDENT REVIEW REPORT TO INTERCONTINENTAL HOTELS GROUP PLC

REPORT ON THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

We have reviewed InterContinental Hotels Group PLC's condensed consolidated interim financial statements (the "interim financial statements") in the Half Year Results of InterContinental Hotels Group PLC for the 6 month period ended 30 June 2026 (the "period").

Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

The interim financial statements comprise:

●    the group statement of financial position as at 30 June 2026;

●    the group income statement and the group statement of comprehensive income for the period then ended;

●    the group statement of cash flows for the period then ended;

●    the group statement of changes in equity for the period then ended; and

●    the explanatory notes to the interim financial statements.

The interim financial statements included in the Half Year Results of InterContinental Hotels Group PLC have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the Half Year Results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the group to cease to continue as a going concern.

RESPONSIBILITIES FOR THE INTERIM FINANCIAL STATEMENTS AND THE REVIEW

The Half Year Results, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the Half Year Results in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the Half Year Results, including the interim financial statements, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.

Our responsibility is to express a conclusion on the interim financial statements in the Half Year Results based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report.

This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.