Q1 Trading Update to 31 March 2024 – InterContinental Hotels Group PLC

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  • Q1 global RevPAR +2.6% YOY, with Americas -0.3%, EMEAA +8.9% and Greater China +2.5%
  • Average daily rate +2.3%, occupancy +0.2%pts
  • Gross system size growth +5.0% YOY, +0.7% YTD; opened 6.3k rooms (46 hotels) in Q1, +11.1% more YOY adjusting for Iberostar
  • Net system size growth +3.4% YOY, +0.0% YTD; adjusting for Iberostar +3.2% YOY, +0.0% YTD
  • Global system of 946k rooms (6,368 hotels); 66% across midscale segments, 34% across upscale and luxury
  • Signed 17.7k rooms (129 hotels) in Q1, +7.1% YOY; global pipeline of 305k rooms (2,079 hotels), +6.6% YOY
  • $239m of 2024’s $800m share buyback programme completed to date, reducing share count by 1.4%
  • Agreement in Germany with NOVUM Hospitality signed in April, adding up to 17.7k rooms (119 hotels) or +1.9% to global system growth
  • Changes to System Fund arrangements, improving owner economics and growing IHG’s ancillary fee streams

Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts, said:

“Global RevPAR in the first quarter of 2024 continued to grow, up +2.6%, reflecting the strength of our globally diverse footprint. There was an impressive performance in EMEAA which was up nearly +9%. The Americas, having already recovered very strongly, was broadly flat due to some adverse calendar timing, and Greater China grew by +2.5% and will continue to benefit from returning international inbound travel this year. Global occupancy moved up to 62% and average daily rate increased by a further +2% as pricing remained robust, reflecting the complete return of leisure, business, and group travel.

We opened more than 6,200 rooms across 46 hotels in the quarter, and signed nearly 18,000 rooms across 129 properties to increase our pipeline +6.6% year-on-year. Compared to the same quarter last year, room openings rose +11% adjusting for Iberostar, and signings grew +7%. ‘Quicker to market’ conversions generated over 35% of openings and signings in the quarter, reflecting the attractiveness of our brands and enterprise platform. In April, we were delighted to announce an agreement with NOVUM Hospitality that will double IHG’s presence in Germany through even more conversions and strengthen our position in a priority market for domestic, inbound and outbound travel. The deal adds up to 119 hotels (17,700 rooms) or +1.9% to our global system over the coming years. This further validates the attraction to hotel owners of joining IHG’s enterprise, and boosts confidence for our net system growth outlook.

In our separate announcement today, changes to our System Fund arrangements will improve economics for our owners and the continued growth in ancillary fee streams will deliver value through our growth algorithm, consistent with our strategic priorities. The combined power of our platform and efficiency of our operating model will continue to drive IHG forward. We are excited about the future and our ability to capitalise further on our strengths, scale and leading positions, and on the attractive, long-term demand drivers for our markets.”

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