InterContinental Hotels Group
Website:
InterContinental Hotels Group
Index:
FTSE 100
EPIC: IHG
Supersector:
Travel and Leisure
Sector:
Travel and Leisure
Subsector:
Hotels
Market Cap:
£15.8B
Payout Frequency: Semi-Annual
InterContinental Hotels Group Dividend Analysis and Summary
Key Dividend Details (Final FY2025)
- Final dividend per share: 125.9¢ (USD), up +10% YoY
- Total dividend for FY2025: 184.5¢ (USD), up +10% YoY
- Ex-dividend date (Ordinary shares): 09/04/2026 (ADRs: 10/04/2026)
- Record date: 10/04/2026
- Payment date: 14/05/2026 (subject to AGM approval on 07/05/2026)
- Currency: Declared in USD; sterling amount to be announced on 27/04/2026 (based on FX over 22–24 April)
- Optionality: USD currency election available; DRIP offered (election deadline 23/04/2026, 5:00pm UK)
- Indicative payout ratio: c.37% of adjusted EPS (184.5¢ DPS vs 501.3¢ adjusted EPS)
Dividend Sustainability and Growth
- Cover: Strong. Adjusted EPS rose +16% to 501.3¢, covering the FY DPS ~2.7x; adjusted free cash flow (AFCF) of $893m vs cash dividends of $270m in 2025 implies >3x cash cover.
- Track record and policy: Fourth consecutive year of +10% ordinary dividend growth. Management explicitly targets a “sustainably growing” dividend within its capital allocation framework.
- Earnings and margins: Fee business operating profit up +13.5%; fee margin expanded +360bps to 64.8%, supporting ongoing dividend capacity.
- Balance sheet: Net debt $3.33bn, leverage at 2.5x net debt/Adjusted EBITDA—within the 2.5–3.0x target range.
Support from Financial Performance and Capital Allocation
- Cash generation: Net cash from operating activities $898m; AFCF $893m. Dividends comfortably funded from organic cash flow.
- Capital returns mix: Ordinary dividends supplemented by material buybacks—$900m in 2025; new $950m programme for 2026. While EPS-accretive, buybacks lift interest expense and keep leverage within, but near, target.
- Growth engine: Asset-light, fee-based model with +4.0% reported (adjusted +4.7%) net system growth and a healthy pipeline (340k rooms). Medium/long-term algorithm (high single-digit fee revenue growth, 100–150bps margin expansion) underpins dividend progression.
Structural and Strategic Developments Affecting Future Dividends
- Share buybacks: Ongoing programmes reduce share count (-4.8% in 2025), supporting per-share metrics and dividend affordability.
- Brand portfolio expansion: Acquisition of the Ruby brand (Feb 2025) and launch of Noted Collection (Feb 2026) broaden higher-fee segments—potentially supportive for longer-term fee growth and dividend capacity.
- No demergers/share consolidations announced. Balance sheet liquidity strengthened with a new $1.5bn RCF (matures 2030); IG ratings maintained (BBB/Baa2).
Risks and Flags to Dividend Stability
- Leverage and interest costs: Net debt up +20% YoY; adjusted interest expense rose to $200m (guidance $230–250m for 2026). Higher financing costs could modestly tighten headroom if trading softens.
- Cyclical exposure: 2025 RevPAR softness in the Americas (+0.3%) and -1.6% in Greater China highlights demand cyclicality; management expects improvement in 2026 but macro/geopolitical risks remain.
- FX for UK holders: DPS declared in USD; sterling payout varies with FX, introducing currency volatility to UK income.
- Refinancing profile: Upcoming bond maturities in Aug 2026 (£350m) and May 2027 (€500m); ample liquidity mitigates risk, but market conditions bear monitoring.
- One-offs: Ongoing efficiency programme and litigation costs were modest in 2025; not a structural threat but worth tracking.
Read more
InterContinental Hotels Group Annual Dividend Yield - 87.84%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 03/04/2025 |
15/05/2025 |
Final |
114.40¢ |
USX |
| 21/08/2025 |
02/10/2025 |
Interim |
58.60¢ |
USX |
Total (Annual Dividends Per Share):
127.37p
(Using exchange rate on 30/04/2026
$ = £0.73627)
Dividend Yield =
Annual Dividends Per Share (127.37p)
÷ Share Price (145p)
= 87.84%
InterContinental Hotels Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 09/04/2026 |
14/05/2026 |
Final |
125.90¢ |
USX |
| 21/08/2025 |
02/10/2025 |
Interim |
58.60¢ |
USX |
| 03/04/2025 |
15/05/2025 |
Final |
114.40¢ |
USX |
| 29/08/2024 |
03/10/2024 |
Interim |
53.20¢ |
USX |
| 04/04/2024 |
14/05/2024 |
Final |
104.00¢ |
USX |
| 31/08/2023 |
05/10/2023 |
Interim |
48.30¢ |
USX |
| 30/03/2023 |
16/05/2023 |
Final |
94.50¢ |
USX |
| 01/09/2022 |
06/10/2022 |
Interim |
43.90¢ |
USX |
| 31/03/2022 |
17/05/2022 |
Final |
85.90¢ |
USX |
| 29/08/2019 |
03/10/2019 |
Interim |
32.00¢ |
USX |
| 28/03/2019 |
14/05/2019 |
Final |
60.40¢ |
USX |
| 10/01/2019 |
29/01/2019 |
Special |
203.80¢ |
USX |
| 30/08/2018 |
05/10/2018 |
Interim |
27.70¢ |
USX |
| 29/03/2018 |
11/05/2018 |
Final |
50.20¢ |
USX |
| 31/08/2017 |
06/10/2017 |
Interim |
24.40¢ |
USX |
| 08/05/2017 |
22/05/2017 |
Special |
156.40p |
GBX |
| 04/05/2017 |
22/05/2017 |
Final |
49.40p |
GBX |
| 01/09/2016 |
07/10/2016 |
Interim |
22.60p |
GBX |
| 05/05/2016 |
23/05/2016 |
Special |
438.20p |
GBX |
| 31/03/2016 |
13/05/2016 |
Final |
40.30p |
GBX |
| 27/08/2015 |
02/10/2015 |
Interim |
17.70p |
GBX |
| 02/04/2015 |
15/05/2015 |
Final |
33.80p |
GBX |
| 20/08/2014 |
26/09/2014 |
Interim |
14.80p |
GBX |
| 26/06/2014 |
14/07/2014 |
Special |
174.90p |
GBX |
| 19/03/2014 |
09/05/2014 |
Final |
28.10p |
GBX |
| 21/08/2013 |
04/10/2013 |
Interim |
15.10p |
GBX |
| 21/08/2013 |
04/10/2013 |
Special |
87.10p |
GBX |
| 20/03/2013 |
31/05/2013 |
Final |
27.70p |
GBX |
| 04/10/2012 |
22/10/2012 |
Special |
108.40p |
GBX |
| 22/08/2012 |
28/09/2012 |
Interim |
13.50p |
GBX |
| 21/03/2012 |
01/06/2012 |
Final |
24.70p |
GBX |
| 24/08/2011 |
07/10/2011 |
Interim |
9.80p |
GBX |
| 23/03/2011 |
03/06/2011 |
Final |
22.00p |
GBX |
| 25/08/2010 |
01/10/2010 |
Interim |
8.00p |
GBX |
| 24/03/2010 |
04/06/2010 |
Final |
18.70p |
GBX |
| 26/08/2009 |
02/10/2009 |
Interim |
7.30p |
GBX |
| 25/03/2009 |
05/06/2009 |
Final |
20.20p |
GBX |
| 27/08/2008 |
03/10/2008 |
Interim |
6.40p |
GBX |
| 26/03/2008 |
06/06/2008 |
Final |
14.90p |
GBX |
| 29/08/2007 |
05/10/2007 |
Interim |
5.70p |
GBX |
| 30/05/2007 |
15/06/2007 |
Special |
200.00p |
GBX |
| 21/03/2007 |
08/06/2007 |
Final |
13.30p |
GBX |
| 30/08/2006 |
05/10/2006 |
Interim |
5.10p |
GBX |
| 07/06/2006 |
22/06/2006 |
Special |
118.00p |
GBX |
| 29/03/2006 |
05/06/2006 |
Final |
10.70p |
GBX |
| 21/09/2005 |
17/10/2005 |
Interim |
4.60p |
GBX |
| 30/03/2005 |
03/06/2005 |
Final |
10.00p |
GBX |
| 08/12/2004 |
17/12/2004 |
Special |
72.00p |
GBX |
| 22/09/2004 |
18/10/2004 |
Interim |
4.30p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
53.200 |
104.000 |
|
USX |
157.200 |
225.460 |
| 2023 |
48.300 |
|
|
USX |
48.300 |
-65.100 |
| 2022 |
43.900 |
94.500 |
|
USX |
138.400 |
61.110 |
| 2021 |
|
85.900 |
|
USX |
85.900 |
-63.570 |
| 2019 |
32.000 |
|
203.800 |
USX |
235.800 |
167.650 |
| 2018 |
27.700 |
60.400 |
|
USX |
88.100 |
-68.580 |
| 2017 |
24.400 |
99.600 |
156.400 |
GBX |
280.400 |
-39.140 |
| 2016 |
22.600 |
|
438.200 |
GBX |
460.800 |
401.960 |
| 2015 |
17.700 |
74.100 |
|
GBX |
91.800 |
-51.600 |
| 2014 |
14.800 |
|
174.900 |
GBX |
189.700 |
45.580 |
| 2013 |
15.100 |
28.100 |
87.100 |
GBX |
130.300 |
-12.900 |
| 2012 |
13.500 |
27.700 |
108.400 |
GBX |
149.600 |
333.620 |
| 2011 |
9.800 |
24.700 |
|
GBX |
34.500 |
15.000 |
| 2010 |
8.000 |
22.000 |
|
GBX |
30.000 |
15.380 |
| 2009 |
7.300 |
18.700 |
|
GBX |
26.000 |
-2.250 |
| 2008 |
6.400 |
20.200 |
|
GBX |
26.600 |
-87.940 |
| 2007 |
5.700 |
14.900 |
200.000 |
GBX |
220.600 |
61.730 |
| 2006 |
5.100 |
13.300 |
118.000 |
GBX |
136.400 |
791.500 |
| 2005 |
4.600 |
10.700 |
|
GBX |
15.300 |
-82.270 |
| 2004 |
4.300 |
10.000 |
72.000 |
GBX |
86.300 |
|
InterContinental Hotels Group Dividend Calculator
InterContinental Hotels Group Dividend Growth
| Dividend Growth (1Y) |
8.99%
|
| Dividend CAGR (5Y) |
15.21%
|
| Years of Growth |
3
|
| Payout Ratio |
35.62%
|
| Buyback Yield |
4.42%
|
| Shareholder Yield |
5.69%
|
| P/E Ratio (TTM) | 29.22 |
|---|
| Forward P/E | 25.18 |
|---|
| P/FCF | 24.34 |
|---|
| Earnings Yield | 3.58% |
|---|
| FCF Yield | 4.11% |
|---|
| ROE | – |
|---|
| ROCE | 37.38% |
|---|
| Profit Margin | 14.61% |
|---|
| Operating Margin | 23.38% |
|---|
| Gross Margin | 61.94% |
|---|