Full Year 2025 InterContinental Hotels Group PLC Earnings Call - Pre-Recorded

February 17, 2026

Operator: Press relations at IHG Hotels & Resorts, and shortly you'll be hearing from Elie Maalouf, our Chief Executive Officer, and Michael Glover, Chief Financial Officer. Before we proceed, I'm obliged to remind all viewers and listeners that the company may make certain forward-looking statements as defined under US law. Please refer to the accompanying results announcement and the company's SEC filings for factors that could lead actual results to differ materially from those expressed in or implied by any such forward-looking statements. In addition, the presentation will refer to certain non-GAAP financial measures. Once again, please refer to the accompanying results announcement and SEC filings for reconciliations of these measures to the most directly comparable line items within the financial statements.

Speaker #1: Relations at IHG Hotels & Resorts, and surely you'll be hearing from Elie Maalouf, our Chief Executive Officer, and Michael Glover, Chief Financial Officer. Before we proceed, I'm obliged to remind all viewers and listeners that the company may make certain forward-looking statements as defined under U.S.

Speaker #1: law. Please refer to the accompanying results announcement and the company's SEC filings for factors that could lead actual results to differ materially from those expressed in or implied by any such forward-looking statements.

Speaker #1: In addition, the presentation will refer to certain non-GAAP financial measures. Once again, please refer to the accompanying results announcement and SEC filings for reconciliations of these measures to the most directly comparable line items within the financial statements.

Speaker #1: The results announcement, together with the usual supplementary data pack, as well as the presentation slides accompanying this webcast, can all be downloaded from the resultsandpresentations section under the Investors tab on ihgplc.com.

Operator: The results announcement, together with the usual supplementary data pack, as well as the presentation slides accompanying this webcast, can all be downloaded from the Results and Presentations section under the Investors tab on ihgplc.com. Now over to our 2025 highlights reel, followed by Elie.

Speaker #1: Now, over to our 2025 highlights reel, followed by Elie. Hello. I'm Elie Maalouf, Chief Executive Officer of IHG Hotels & Resorts. Welcome to IHG's 2025 full-year results presentation.

Speaker #1: Station. I'm Stuart Ford, Senior Vice President and Head of Investor Relations at IHG Hotels & Resorts. And shortly you'll be hearing from Elie Maalouf, our Chief Executive Officer, and Michael Glover, Chief Financial Officer.

Speaker #1: Before we proceed, I'm obliged to remind all viewers and listeners that the company may make certain forward-looking statements as defined under US law. Please refer to the accompanying results announcement and the company's SEC filings for factors that could lead actual results to differ materially from those expressed in or implied by any such forward-looking statements.

Speaker #1: The results announcement, together with the usual supplementary data pack, as well as the presentation slides accompanying this webcast, can all be downloaded from the Results and Presentations section under the Investors tab on IHGplc.com.

Elie Maalouf: Hello, I'm Elie Maalouf, Chief Executive Officer of IHG Hotels & Resorts. Welcome to IHG's 2025 full year results presentation. I will kick things off in a moment by sharing highlights from the year, a period of excellent financial performance and further progress on a clear strategy that's unlocking IHG's full potential for all stakeholders. Michael Glover, our Chief Financial Officer, will then provide a financial review, after which I will share areas of progress on our strategic priorities. We delivered excellent financial performance in 2025. RevPAR grew by 1.5%, driven by rate and occupancy gains, reflecting the breadth of our global footprint and the diversification of our demand drivers. We opened a record 443 hotels in the year to take our total estate to more than 6,900 hotels and over 1 million rooms.

Speaker #1: I will kick things off in a moment by sharing highlights from the year, a period of excellent financial performance and further progress on a clear strategy that's unlocking IHG's full potential for all stakeholders.

Speaker #1: Michael Glover, our Chief Financial Officer, will then provide a financial review, after which I will share areas of progress on our strategic priorities. We delivered excellent financial performance in 2025.

Speaker #1: RefPAR grew by 1.5%, driven by rate and occupancy gains. Reflecting the breadth of our global footprint and the diversification of our demand drivers, we opened a record 443 hotels in the year to take our total estate to more than 6,900 hotels and over 1 million rooms.

Speaker #1: Gross system growth was 6.6%, and net system growth was 4.7%, representing the fourth consecutive year of accelerating growth. We signed 102,000 rooms across almost 700 hotels, 9% ahead of 2024 levels when excluding the Ruby acquisition and Novum conversions.

Elie Maalouf: Gross system growth was 6.6%, and net system growth was 4.7%, representing the fourth consecutive year of accelerating growth. We signed 102,000 rooms across almost 700 hotels, 9% ahead of 2024 levels when excluding the Ruby acquisition and Novum conversions. Signings were driven by strong momentum across our brands, and our pipeline now stands at almost 2,300 hotels, representing 33% future rooms growth. Our fee margin grew by 360 basis points, further increasing operating profit, and EPS grew even faster, supported by 2025's $900 million share buyback program. Today, we're pleased to launch a new $950 million share buyback, which, together with growing our ordinary dividend payments, is expected to return over $1.2 billion to shareholders in 2026.

Speaker #1: Signings were driven by strong momentum across our brands, and our pipeline now stands at almost 2,300 hotels, representing 33% future rooms growth. Our fee margin grew by 360 basis points, further increasing operating profit and EPS grew even faster, supported by 2025's $900 million share buyback program.

Speaker #1: Today, we're pleased to launch a new $950 million share buyback, which together with growing our ordinary dividend payments is expected to return over $1.2 billion to shareholders in 2026.

Speaker #1: Cumulatively, over five years, this will mean IHG has returned more than $5 billion to our shareholders. We're also very excited to announce the launch of our new premium collection brand, Noted Collection.

Elie Maalouf: Cumulatively, over five years, this will mean IHG has returned more than $5 billion to our shareholders. We're also very excited to announce the launch of our new premium collection brand, Noted Collection. Together with the acquisition of Ruby, this new brand will further strengthen our portfolio and growth potential in the critically important premium segment. More on this later. Altogether, we delivered another excellent set of results, demonstrating the strength and resilience of our business model and the power of our growth algorithm, despite some turbulent trading conditions. RevPAR growth, system growth, and margin expansion collectively drove a 13% increase in EBIT, and with the strength of our cash conversion, which funds our investments, dividends, and share buybacks, we delivered adjusted EPS growth of 16%.

Speaker #1: Together with the acquisition of Ruby, this new brand will further strengthen our portfolio and growth potential in the critically important premium segment, more on this later.

Speaker #1: Altogether, we delivered another excellent set of results, demonstrating the strength and resilience of our business model and the power of our growth algorithm, despite some turbulent trading conditions.

Speaker #1: RefPAR Growth, System Growth, and Margin Expansion collectively drove a 13% increase in EBIT, and with a strength of our cash conversion which funds our investments dividends and share buybacks, we delivered adjusted EPS growth of 16%.

Speaker #1: This performance is above the top end of what we laid out as the compound average that we are targeting over the medium to long term.

Elie Maalouf: This performance is above the top end of what we laid out as the compound average that we are targeting over the medium to long term, and we are confident as we enter 2026, that we will continue delivering on this growth algorithm going forward. Let me now hand over to Michael to take you through the details of our financial results.

Speaker #1: And we are confident, as we enter 2026, that we will continue delivering on this growth algorithm going forward. Let me now hand over to Michael to take you through the details of our financial results.

Speaker #2: Thanks, Elie. I'm Michael Glover, Chief Financial Officer for IHG Hotels & Resorts. Let me take you through some more detail on a great set of results for 2025.

Michael Glover: Thanks, Elie. I'm Michael Glover, Chief Financial Officer for IHG Hotels & Resorts. Let me take you to some more detail on a great set of results for 2025. I'll start, as usual, with reportable segments, which includes the fee business and our owned and leased portfolio of 17 hotels. Revenue was $2.5 billion, and EBIT was $1.265 billion, growing 7% and 13%, respectively. Within this, we saw similar trends in fee business revenue and fee business operating profit, which also increased by 7% and 13%, respectively. Fee margin increased by 360 basis points to 64.8%. I'll touch more on this excellent performance shortly.

Speaker #2: I'll start as usual with reportable segments, which includes the fee business and our owned and leased portfolio of 17 hotels, revenue was $2.5 billion, and EBIT was $1,265,000,000, growing 7% in 13% respectively.

Speaker #2: Within this, we saw similar trends in fee business revenue and fee business operating profit, which also increased by 7% in 13% respectively. Fee margin increased by 360 basis points to 64.8%.

Speaker #2: I'll touch more on this excellent performance shortly. Adjusted interest increased to $200 million, which was at the midpoint of our guidance range of $195 to $205 million.

Michael Glover: Adjusted interest increased to $200 million, which was at the midpoint of our guidance range of $195 to 205 million. Our adjusted tax rate was 27%, unchanged from the prior year. Adjusted earnings per share includes the accretion benefit from the $900 million share buyback program executed in the year, as well as the annualized impact of 2024's $800 million program. The combination of strong revenue growth and fee margin progression, together with the accretion from the buybacks, resulted in earnings per share increasing by an impressive 16%. The total dividend is proposed to increase 10%, consistent with the growth rate in each of the past three years. Moving on to a summary of RevPAR performance.

Speaker #2: Our adjusted tax rate was 27%, unchanged from the prior year. Adjusted earnings per share includes the accretion benefit from the $900 million share buyback program executed in the year, as well as the annualized impact of 2024's $800 million program.

Speaker #2: The combination of strong revenue growth and fee margin progression together with the accretion from the buybacks resulted in earnings per share increasing by an impressive 16%.

Speaker #2: The total dividend is proposed to increase 10%, consistent with the growth rate in each of the past three years. Moving on to a summary of RefPAR performance, America's RefPAR grew 0.3% for the year with a 0.5% increase in rate, more than offsetting a slight 0.1 percentage point decline in occupancy.

Michael Glover: Americas RevPAR grew 0.3% for the year, with a 0.5% increase in rate, more than offsetting a slight 0.1 percentage point decline in occupancy. After strong growth of 3.5% in Q1, RevPAR declined 0.5% in Q2, with a shift in timing of Easter between March and April, and the onset of reductions in certain types of business and leisure travel in light of macroeconomic developments. RevPAR declined 0.9% in Q3 and by 1.4% in Q4, when there were tougher year-on-year comparatives due to hurricane-related demand in the fourth quarter of 2024. Outside the US, RevPAR for the year grew 4%, with Canada, Mexico, and the Latin America and Caribbean sub-region all delivering growth.

Speaker #2: After strong growth of 3.5% in Q1, RefPAR declined 0.5% in Q2 with a shift in timing of Easter between March and April, and the onset of reductions in certain types of business and leisure travel in light of macroeconomic developments.

Speaker #2: RefPAR declined 0.9% in Q3, and by 1.4% in Q4 when there were tougher year-on-year comparatives due to hurricane-related demand in the fourth quarter of 2024.

Speaker #2: Outside the U.S., RefPAR for the year grew 4%, with Canada, Mexico, and the Latin America and Caribbean sub-region all delivering growth. In the MEAA, RefPAR grew 4.6% for the year, with occupancy of 1.6 percentage points and rate of 2.4%.

Michael Glover: In EMEA, RevPAR grew 4.6% for the year, with occupancy up 1.6 percentage points and rate up 2.4%. In Q4, RevPAR accelerated strongly to 7.1%, driven broadly, evenly by increases in occupancy and rate, and with good growth in each of business, leisure, and groups. By major geographic markets, full-year RevPAR growth ranged from 1.1% in the UK to 4.2% in continental Europe, 5.5% for the East Asia and Pacific sub-region, and just under 9% in the Middle East. In Greater China, RevPAR for the year declined 1.6%, with occupancy up 0.5 percentage points and rate 2.4% lower.

Speaker #2: In Q4, RefPAR accelerated strongly to 7.1%, driven broadly evenly by increases in occupancy and rate, and with good growth in each of business, leisure, and groups.

Speaker #2: By major geographic markets, full-year RefPAR growth ranged from 1.1% in the UK to 4.2% in continental Europe, 5.5% for the East Asia and Pacific sub-region, and just under 9% in the Middle East.

Speaker #2: In Greater China, RefPAR for the year declined 1.6%, with occupancy of 0.5 percentage points and rate 2.4% lower. The RefPAR decline of 3.5% in Q1 was followed by 3% in Q2, further improving sequentially to a 1.8% decline in Q3 before returning to growth of 1.1% in Q4, with notable improvement in leisure demand.

Michael Glover: The RevPAR decline of 3.5% in Q1 was followed by 3% in Q2, further improving sequentially to a 1.8% decline in Q3, before returning to growth of 1.1% in Q4, with notable improvement in leisure demand. This slide shows the business, leisure, and groups demand drivers presenting booked revenue broken down by room nights and ADR. Global rooms revenue for business bookings grew 2% on a comparable hotel basis, driven by both room nights and rate. Groups revenue increased by 1%, predominantly due to rate, while leisure revenue was unchanged year-on-year, with both occupancy and rate broadly in line with 2024's strong performance.

Speaker #2: This slide shows the business, leisure, and groups demand drivers presenting booked revenue, broken down by room nights and ADR. Global rooms revenue for business bookings grew 2% on a comparable hotel basis, driven by both room nights and rate.

Speaker #2: Groups revenue increased by 1%, predominantly due to rate, while leisure revenue was unchanged year-on-year, with both occupancy and rate broadly in line with 2024's strong performance.

Speaker #2: Turning to development activity, gross growth was 6.6%, as a record number of hotel openings saw over 65,000 rooms added to the system, 10% more year-on-year.

Michael Glover: Turning to development activity, Gross System Growth was 6.6%, as a record number of hotel openings saw over 65,000 rooms added to the system, 10% more year-on-year. Just over half of all openings were conversions. 26,000 rooms left the system, equivalent to a 1.9% removal rate when adjusting for The Venetian. This is slightly higher than the 1.5% average we generally expect, though not indicative of a longer-term trend. Higher removals in China, reflecting lagged post-COVID exits, combined with the natural lumpiness of exits elsewhere, led to this temporary variance. Taken together, reported year-on-year Net System Growth was 4% or 4.7% when adjusting for The Venetian. We signed over 102,000 rooms in 2025.

Speaker #2: Just over half of all openings were conversions. 26,000 rooms left the system, equivalent to a 1.9% removal rate when adjusting for the Venetian. This is slightly higher than the 1.5% average we generally expect, though not indicative of a longer-term trend, higher removals in China reflecting lagged post-COVID exits combined with the natural lumpiness of exits elsewhere led to this temporary variance.

Speaker #2: Taken together, reported year-on-year net system growth was 4% or 4.7% when adjusting for the Venetian. We signed over 102,000 rooms in 2025, a 9% year-on-year increase when adjusted to exclude the Ruby acquisition and the prior year's Novum agreement.

Michael Glover: A 9% year-on-year increase when adjusted to exclude the Ruby acquisition in the prior year's Novum agreement. Pleasingly, both new build developments, up 8%, and conversion activity, up 10%, contributed to this performance. A little over half of all signings were new builds. Moving to cost control, as I noted in our half-year results, IHG has maintained a disciplined approach to cost management for many years, with this mindset embedded in how the business operates. Through process redesign, greater leverage of centralized support, and enhanced use of technology, including AI, we continue to build a highly efficient, scalable cost base with step-change savings delivered in 2025 that are sustainable over the long term. Set up expenditure to realign our business in this manner, resulting in an exceptional cost within the fee business of $12 million.

Speaker #2: Pleasingly, both new build developments up 8% and conversion activity up 10% contributed to this performance. A little over half of all signings were new builds.

Speaker #2: Moving to cost control, as I noted in our half-year results, ISG has maintained a disciplined approach to cost management for many years. With this mindset embedded in how the business operates, through process redesign, greater leverage of centralized support, and enhanced use of technology, including AI, we continue to build a highly efficient scalable cost base, with step change savings delivered in 2025 that are sustainable over the long term.

Speaker #2: Setup expenditure to realign our business in this manner resulted in an exceptional cost within the fee business of $12 million. This delivers a cash-on-cash payback within 12 months, with further savings thereafter.

Michael Glover: This delivers a cash-on-cash payback within 12 months, with further savings thereafter. These actions, alongside those taken in previous years, are therefore already yielding results. Fee business overheads of $666 million in 2025 were $23 million lower than in 2024, a reduction of 3%. Going forward, this sets us up to continue holding overheads growth to a lower rate of increase than revenues and therefore driving further margin expansion. Moving then to fee margin, which increased by a very pleasing 360 basis points. This was achieved through a combination of improved core operating leverage, including the disciplined cost management I highlighted, and step-ups in ancillary fee streams. As a reminder on those step-ups, in 2024, we announced that revenue generated from the sale of loyalty points would begin to flow directly to IHG.

Speaker #2: These actions alongside those taken in previous years are therefore already yielding results, fee business overheads of $666 million in 2025 were 23 million lower than in 2024, a reduction of 3%.

Speaker #2: Going forward, this sets us up to continue holding overheads growth to a lower rate of increase than revenues, and therefore driving further margin expansion.

Speaker #2: Moving then to fee margin, which increased by a very pleasing 360 basis points, this was achieved through a combination of improved core operating leverage, including the disciplined cost management I highlighted, and step-ups in ancillary fee streams.

Speaker #2: As a reminder on those step-ups, in 2024 we announced that revenue generated from the sale of loyalty points would begin to flow directly to ISG.

Speaker #2: Initially, 50% of these revenues were recognized in 2024, representing an incremental 25 million dollars to ISG, with 100% of revenues and therefore a further 25 million step-up recognized in 2025, this delivered an uplift in margin equivalent to 50 basis points.

Michael Glover: Initially, 50% of these revenues were recognized in 2024, representing an incremental $25 million to IHG, with 100% of revenues and therefore a further $25 million step-up recognized in 2025. This delivered an uplift in margin equivalent to 50 basis points. We've also seen a step-up in co-brand credit card fees. When we announced the new arrangements in November 2024, we said we expected an incremental $40 million of co-brand revenue in 2025. This was achieved and delivered a further margin uplift equivalent to 80 basis points. Historically, IHG's central costs exceeded central revenues, resulting in a central loss. With the step-ups in point sales and co-brand fees, this segment now generates a net profit after central overheads.

Speaker #2: We've also seen a step-up in co-brand credit card fees, when we announced the new arrangements in November 2024, we said we expected an incremental 40 million dollars of co-brand revenue in 2025, this was achieved and delivered a further margin uplift equivalent to 80 basis points.

Speaker #2: Historically, ISG's central costs exceeded central revenues, resulting in a central loss, with the step-ups in point sales and co-brand fees this segment now generates a net profit after central overheads, for analysts and investors who maintain models looking to forecast ISG's central division, I'd refer you to an episode of ISG Checks In On released today alongside these 2025 results.

Michael Glover: For analysts and investors who maintain models looking to forecast IHG Central Division, I'd refer you to an episode of IHG Checks In On, released today alongside these 2025 results. This episode provides more detail about the composition of Central, how we report it, what has changed in the last two years, and how you should think about modeling it going forward. So there was a combined 130 basis points of margin improvement from step-ups in ancillaries, and our operational leverage and cost actions drove the other 230 basis points of margin improvement. Both the Americas and EMEA delivered strong margin expansion, while China saw a slight decrease due to strategic one-off cost investments and lower incentive management fees.

Speaker #2: This episode provides more detail about the composition of central, how we report it, what has changed in the last two years, and how you should think about modeling it going forward.

Michael Glover: In 2024, we announced that revenue generated from the sale of loyalty points would begin to flow directly to IHG. Initially, 50% of these revenues were recognized in 2024, representing an incremental $25 million to IHG, with 100% of revenues, and therefore, a further $25 million step up recognized in 2025. This delivered an uplift in margin equivalent to 50 basis points. We've also seen a step-up in co-brand credit card fees. When we announced the new arrangements in November 2024, we said we expected an incremental $40 million of co-brand revenue in 2025. This was achieved and delivered a further margin uplift equivalent to 80 basis points. Historically, IHG's central costs exceeded central revenues, resulting in a central loss. With the step-ups in point sales and co-brand fees, this segment now generates a net profit after central overheads.

Speaker #1: In 2024, we announced that revenue generated from the sale of Loyalty Points would begin to flow directly to IHG. Initially, 50% of these revenues were recognized in 2024, representing an incremental $25 million to IHG.

Speaker #2: So, there was a combined 130 basis points of margin improvement from step-ups in ancillaries, and our operational leverage and cost actions drove the other 230 basis points of margin improvement, both the Americas and EMEA delivered strong margin expansion, while China saw a slight decrease due to strategic one-off cost investments and lower incentive management fees.

Speaker #1: With 100% of revenues, and therefore a further $25 million step-up recognized in 2025, this delivered an uplift in margin equivalent to 50 basis points.

Speaker #1: We've also seen a step up in co-brand credit card fees. When we announced the new arrangements in November 2024, we said we expected an incremental $40 million of co-brand revenue in 2025.

Speaker #2: It's worth reiterating that the overall margin achievement in 2025 was unusually strong, driven by the step-ups in ancillaries and by the additional cost action that was taken, going forward it remains our ambition to expand the fee margin by 100 to 150 basis points a year on average, which would be driven by achieving fee revenue growth of a high single digit while controlling overhead growth to a low single digit increase per year on average.

Michael Glover: It's worth reiterating that the overall margin achievement in 2025 was unusually strong, driven by the step-ups in ancillaries and by the additional cost action that was taken. Going forward, it remains our ambition to expand the fee margin by 100 to 150 basis points a year on average, which would be driven by achieving fee revenue growth of a high single digit while controlling overhead growth to a low single digit increase per year on average. Moving on to cash flow. Adjusted free cash flow was $893 million, representing a year-on-year increase of $238 million. This improvement was driven by the increase in EBITDA of $143 million or 12%.

Speaker #1: This was achieved and delivered a further margin uplift equivalent to 80 basis points. Historically, IHG's central costs exceeded central revenues, resulting in a central loss.

Speaker #1: With the step-ups in point sales and co-brand fees, this segment now generates a net profit after central overheads. For analysts and investors who maintain models looking to forecast IHG's central division, I'd refer you to an episode of IHG Checks In On, released today alongside these 2025 results.

Michael Glover: For analysts and investors who maintain models looking to forecast IHG's central division, I'd refer you to an episode of IHG Checks In On, released today alongside these 2025 results. This episode provides more detail about the composition of Central, how we report it, what has changed in the last two years, and how you should think about modeling it going forward. So there was a combined 130 basis points of margin improvement from step-ups in ancillaries, and our operational leverage and cost actions drove the other 230 basis points of margin improvement. Both the Americas and EMEAA delivered strong margin expansion, while China saw a slight decrease due to strategic one-off cost investments and lower incentive management fees.

Speaker #2: Moving on to cash flow, adjusted free cash flow was $893 million, representing a year-on-year increase of 238 million. This improvement was driven by the increase in EBITDA of $143 million, or 12%.

Speaker #1: This episode provides more detail about the composition of Central, how we report it, what has changed in the last two years, and how you should think about modeling it going forward.

Speaker #2: There was also some lower outflows including cash tax being 36 million lower than the previous year and capex within free cash flow 29 million lower, which I will come on to in just a moment.

Michael Glover: There was also some lower outflows, including cash tax being $36 million lower than the previous year, and CapEx within free cash flow, $29 million lower, which I will come on to in just a moment. Free cash conversion was a very strong 115% of adjusted earnings, well above the around 100% average we expect over the medium to long term. After other flows beneath free cash flow, principally the $1.1 billion of returns to shareholders, the overall increase in net debt was $551 million, which resulted in leverage at the end of the year of 2.5 times net debt to EBITDA, thus returning us back into our target range.

Speaker #1: So, there was a combined 130 basis points of margin improvement from step-ups in ancillaries, and our operational leverage and cost actions drove the other 230 basis points of margin improvement.

Speaker #2: Free cash conversion was a very strong 115% of adjusted earnings, well above the around 100% average we expect over the medium to long term.

Speaker #1: Both the Americas and EMEA delivered strong margin expansion, while China saw a slight decrease due to strategic one-off cost investments and lower incentive management fees.

Speaker #2: After other flows beneath free cash flow, principally the $1.1 billion of returns the shareholders, the overall increase in net debt was $551 million, which resulted in leverage at the end of the year of 2.5 times net debt to EBITDA, thus returning us back into our target range.

Speaker #1: It's worth reiterating that the overall margin achievement in 2025 was unusually strong, driven by the step-ups in ancillaries and by the additional cost action that was taken.

Michael Glover: It's worth reiterating that the overall margin achievement in 2025 was unusually strong, driven by the step-ups in ancillaries and by the additional cost action that was taken. Going forward, it remains our ambition to expand the fee margin by 100 to 150 basis points a year on average, which would be driven by achieving fee revenue growth of a high single digit, while controlling overhead growth to a low single digit increase per year on average. Moving on to cash flow. Adjusted free cash flow was $893 million, representing a year-over-year increase of $238 million. This improvement was driven by the increase in EBITDA of $143 million, or 12%.

Speaker #1: Going forward, it remains our ambition to expand the fee margin by 100 to 150 basis points a year on average, which would be driven by achieving fee revenue growth of a high single digit while controlling overhead growth to a low single digit increase per year on average.

Speaker #2: Back at our Q3 update, I noted that in September we issued an $850 million five-year euro bond, swapped to $990 million, with interest payable semi-annually at 4.9%, in December we then entered into a new $1.5 billion RCF, replacing the previous arrangement.

Michael Glover: Back at our Q3 update, I noted that in September, we issued a EUR 850 million 5-year euro bond, swapped to $990 million, with interest payable semiannually at 4.9%. In December, we then entered into a new $1.5 billion RCF, replacing the previous arrangement. This new 5-year facility is covenant-free and remains undrawn. A look now at capital expenditure. Key money investment totaled $177 million, $29 million lower year-on-year. We previously indicated that we expected key money spend in 2025 to be broadly in line with 2024, but some of the outflows we had expected in late 2025 have shifted into 2026. Importantly, our total key money and maintenance CapEx guidance remains unchanged at $200 to 250 million.

Speaker #1: Moving on to cash flow, adjusted free cash flow was $893 million, representing a year-on-year increase of $238 million. This improvement was driven by the increase in EBITDA of $143 million, or 12%.

Speaker #2: This new five-year facility is covenant-free and remains undrawn. A look now at capital expenditure, key money investment totaled $177 million, 29 million lower year-on-year, we previously indicated that we expected key money spend in 2025 to be broadly in line with 2024, but some of the outflows we had expected in late 2025 have shifted into 2026, importantly our total key money and maintenance capex guidance remains unchanged at $200 to $250 million.

Speaker #1: There were also some lower outflows, including cash tax being $36 million lower than the previous year, and capex within free cash flow $29 million lower, which I will come on to in just a moment.

Speaker #1: Free cash conversion was a very strong 115% of adjusted earnings, well above the around 100% average we expect over the medium to long term.

Speaker #1: After other flows beneath free cash flow, principally the $1.1 billion of returns to shareholders, the overall increase in net debt was $551 million, which resulted in leverage at the end of the year of 2.5 times net debt to EBITDA, thus returning us back into our target range.

Speaker #2: Gross recyclable capital expenditure of just $16 million was $52 million lower year-on-year, these arrangements are often inherently lumpy and some of these have also carried over into 2026, but such that we still remain within our average annual gross capex guidance of $350 million.

Michael Glover: Gross recyclable capital expenditure of just $16 million was $52 million lower year-on-year. These arrangements are often inherently lumpy, and some of these have also carried over into 2026, but such that we still remain within our average annual gross CapEx guidance of $350 million. This chart shows you the evolution of our capital expenditure deployment. A key takeaway is that our overall CapEx spend has been stable, while revenue and profit has grown. As I will show you on the next slide, this is a testament to our capital discipline. In the earlier four years on this chart, you can see that System Fund CapEx and maintenance CapEx were the largest components.

Speaker #1: Back at our Q3 update, I noted that in September we issued an €850 million five-year euro bond, swapped to $990 million, with interest payable semi-annually at 4.9%.

Michael Glover: Back at our Q3 update, I noted that in September, we issued an EUR 850 million five-year euro bond, swapped to $990 million, with interest payable semi-annually at 4.9%. In December, we then entered into a new $1.5 billion RCF, replacing the previous arrangement. This new five-year facility is covenant-free and remains undrawn. A look now at capital expenditure. Key money investment totaled $177 million, $29 million lower year-on-year. We previously indicated that we expected key money spend in 2025 to be broadly in line with 2024, but some of the outflows we had expected in late 2025 have shifted into 2026. Importantly, our total key money and maintenance CapEx guidance remains unchanged at $200 to 250 million.

Speaker #2: This chart shows you the evolution of our capital expenditure deployment, a key takeaway is that our overall capex spend has been stable, while revenue and profit has grown, as I will show you on the next slide this is a testament to our capital discipline.

Speaker #1: In December, we then entered into a new $1.5 billion RCF, replacing the previous arrangement. This new five-year facility is covenant-free and remains undrawn.

Speaker #2: In the earlier four years on this chart you can see that system fund capex and maintenance capex were the largest components, with the completion of our GRS investment and rollout between 2016 and 2019, together with the ongoing reduction of our owned and leased estate, and along with the greater utilization of software as a service solutions, capex requirements for the system fund and maintenance categories have since decreased.

Michael Glover: With the completion of our GRS investment and rollout between 2016 and 2019, together with the ongoing reduction of our owned and leased estate, and along with the greater utilization of software-as-a-service solutions, CapEx requirements for the system fund and maintenance categories have since decreased. These prior investments have also ensured we have a very well-invested, scalable tech stack and enterprise platform to support future growth. Therefore, in more recent years, the strong growth of our premium, luxury, and lifestyle brands have shifted the mix of CapEx towards expansionary investment in key money and recyclable CapEx. In 2025, overall CapEx spend was lower than anticipated, and in 2026, we may catch up on some timing slippages. But to reiterate, our annual gross CapEx guidance on average of around $350 million remains unchanged.

Speaker #1: A look now at capital expenditure. Key money investment totaled $177 million, $29 million lower year-on-year. We previously indicated that we expected key money spend in 2025 to be broadly in line with 2024, but some of the outflows we had expected in late 2025 have shifted into 2026.

Speaker #2: These prior investments have also ensured we have a very well-invested scalable tech stack and enterprise platform to support future growth. Therefore, in more recent years, the strong growth of our premium and luxury and lifestyle brands have shifted the mix of capex towards expansionary investment in key money and recyclable capex.

Speaker #1: Importantly, our total key money and maintenance capex guidance remains unchanged at $200 to $250 million. Gross recyclable capital expenditure of just $16 million was $52 million lower year-on-year. These arrangements are often inherently lumpy, and some of these have also carried over into 2026.

Michael Glover: Gross recyclable capital expenditure of just $16 million was $52 million lower year-over-year. These arrangements are often inherently lumpy, and some of these have also carried over into 2026, but such that we still remain within our average annual gross CapEx guidance of $350 million. This chart shows you the evolution of our capital expenditure deployment. A key takeaway is that our overall CapEx spend has been stable, while revenue and profit has grown. As I will show you on the next slide, this is a testament to our capital discipline. In the earlier 4 years on this chart, you can see that System Fund CapEx and maintenance CapEx were the largest components.

Speaker #2: In 2025, overall capex spend was lower than anticipated, and in 2026 we may catch up on some timing slippages. But to reiterate our annual gross capex guidance on average of around $350 million, remains unchanged.

Speaker #1: But such that we still remain within our average annual gross capex guidance of $350 million. This chart shows you the evolution of our capital expenditure deployment. A key takeaway is that our overall capex spend has been stable, while revenue and profit have grown. As I will show you on the next slide, this is a testament to our capital discipline.

Speaker #2: The strength of our model is resoundingly evident when comparing the acceleration of our fee business revenue, which has grown at a CAGR of 4% over the last decade, and fee business profit, which has grown at a CAGR of 7%, against our gross and net capex, which continues to represent a small proportion of our income.

Michael Glover: The strength of our model is resoundingly evident when comparing the acceleration of our fee business revenue, which has grown at a CAGR of 4% over the last decade, and fee business profit, which has grown at a CAGR of 7%, against our gross and net CapEx, which continues to represent a small proportion of our income. The takeaway is clear: we are achieving very attractive returns on the relatively limited capital required, which supports our medium to long-term growth ambitions, as already shown by the acceleration of fee revenues and profits in the more recent years. For analysts and investors who want to understand in more detail IHG's approach to capital expenditure and with particular focus on key money, today, we have released a mini teach-in on this topic as a further episode of IHG Checks In On.

Speaker #1: In the earlier four years on this chart, you can see that system fund capex and maintenance capex were the largest components. With the completion of our GRS investment and rollout between 2016 and 2019, together with the ongoing reduction of our owned and leased estate, and along with the greater utilization of software as a service solutions, capex requirements for the system fund and maintenance categories have since decreased.

Speaker #2: The takeaway is clear, we are achieving very attractive returns on the relatively limited capital required, with supports are medium to long-term growth ambitions as already shown by the acceleration of fee revenues and profits in the more recent years.

Michael Glover: With the completion of our GRS investment and rollout between 2016 and 2019, together with the ongoing reduction of our owned and leased estate, and along with the greater utilization of software as a service solutions, CapEx requirements for the system fund and maintenance categories have since decreased. These prior investments have also ensured we have a very well-invested, scalable tech stack and enterprise platform to support future growth. Therefore, in more recent years, the strong growth of our premium and luxury and lifestyle brands have shifted the mix of CapEx towards expansionary investment in key money and recyclable CapEx. In 2025, overall CapEx spend was lower than anticipated, and in 2026, we may catch up on some timing slippages. But to reiterate, our annual gross CapEx guidance on average of around $350 million remains unchanged.

Speaker #2: For analysts and investors who want to understand in more detail ISG's approach to capital expenditure and with particular focus on key money today we have released a mini teach-in on this topic as a further episode of ISG Checks In On.

Speaker #1: These prior investments have also ensured we have a very well-invested, scalable tech stack and enterprise platform to support future growth. Therefore, in more recent years, the strong growth of our premium, luxury, and lifestyle brands has shifted the mix of capex towards expansionary investment in key money and recyclable capex.

Speaker #2: In this episode I discuss these areas with Stuart Ford, head of investor relations, and two of our regional chief financial officers, Blake Longstaff, CFO Americas, and Matt Woolard, CFO of the EMEAA region.

Michael Glover: In this episode, I discuss these areas with Stuart Ford, Head of Investor Relations, and two of our regional chief financial officers, Blake Longstaff, CFO, Americas, and Matt Woollard, CFO of the EMEA region. Our strategy for uses of cash remains unchanged. After investing behind long-term growth, which is the foremost priority, we look to sustainably grow the ordinary dividend. In this regard, as mentioned, we are pleased to propose a final dividend growing by 10%. That rate of growth has been consistent for each of our dividend payments over the last three years. A year ago, we announced a $900 million buyback program, which completed in December. This repurchased 7.6 million shares and reduced the share count by 4.8%.

Speaker #1: In 2025, overall capex spend was lower than anticipated. And in 2026, we may catch up on some timing slippages. But to reiterate, our annual gross capex guidance, on average, of around $350 million remains unchanged.

Speaker #2: Our strategy for uses of cash remains unchanged, after investing behind long-term growth, which is the foremost priority we look to sustainably grow the ordinary dividend, in this regard as mentioned we are pleased to propose a final dividend growing by 10%.

Speaker #1: The strength of our model is resoundingly evident when comparing the acceleration of our fee business revenue, which has grown at a CAGR of 4% over the last decade, and fee business profit, which has grown at a CAGR of 7%, against our gross and net capex, which continues to represent a small proportion of our income.

Michael Glover: The strength of our model is resoundingly evident when comparing the acceleration of our fee business revenue, which has grown at a CAGR of 4% over the last decade, and fee business profit, which has grown at a CAGR of 7%, against our gross and net CapEx, which continues to represent a small proportion of our income. The takeaway is clear: we are achieving very attractive returns on the relatively limited capital required, which supports our medium to long-term growth ambitions, as already shown by the acceleration of fee revenues and profits in the more recent years. For analysts and investors who want to understand in more detail IHG's approach to capital expenditure and with particular focus on Key Money, today, we have released a mini teach-in on this topic as a further episode of IHG Checks In On.

Speaker #2: That rate of growth has been consistent for each of our dividend payments over the last three years. A year ago we announced a $900 million buyback program, which completed in December.

Speaker #2: This repurchased $7.6 million shares and reduced the share count by 4.8%. Together with ordinary dividend payments we returned over $1.1 billion to shareholders, which was equivalent to $5.9% of ISG's market capitalization at the start of 2025.

Speaker #1: The takeaway is clear: we are achieving very attractive returns on the relatively limited capital required, which supports our medium- to long-term growth ambitions, as already shown by the acceleration of fee revenues and profits in recent years.

Michael Glover: Together with ordinary dividend payments, we returned over $1.1 billion to shareholders, which was equivalent to 5.9% of IHG's market capitalization at the start of 2025. Today, we are pleased to announce that a new share buyback program will commence immediately, returning a further $950 million. Together with the anticipated sustainable growth in ordinary dividend payments, this will return another $1.2 billion to shareholders, equivalent to 5.8% of IHG's market capitalization at the start of 2026. Cumulatively, for the five years of 2022 to 2026, this will mean IHG has returned more than $5 billion to our shareholders. And finally, modeling considerations.

Speaker #2: Today we are pleased to announce that a new share buyback program will commence immediately, returning a further $950 million. Together with the anticipated sustainable growth in ordinary dividend payments this will return another $1.2 billion, to shareholders, equivalent to $5.8% of ISG's market capitalization at the start of 2026.

Speaker #1: For analysts and investors who want to understand in more detail ISG's approach to capital expenditure, and with particular focus on key money, today we have released a mini teach-in on this topic as a further episode of ISG Checks In On.

Speaker #1: In this episode, I discuss these areas with Stuart Ford, Head of Investor Relations, and two of our regional Chief Financial Officers: Blake Longstaff, CFO Americas, and Matt Woolard, CFO of the EMEAA region.

Michael Glover: In this episode, I discuss these areas with Stuart Ford, Head of Investor Relations, and two of our regional chief financial officers, Blake Longstaff, CFO, Americas, and Matthew Woollard, CFO of the EMEAA region. Our strategy for uses of cash remains unchanged. After investing behind long-term growth, which is the foremost priority, we look to sustainably grow the ordinary dividend. In this regard, as mentioned, we are pleased to propose a final dividend growing by 10%. That rate of growth has been consistent for each of our dividend payments over the last three years. A year ago, we announced a $900 million buyback program, which completed in December. This repurchased 7.6 million shares and reduced the share count by 4.8%.

Speaker #2: Cumulatively for the five years of 2022 to 2026 this will mean ISG has returned more than $5 billion to our shareholders. And finally, modeling considerations.

Speaker #1: Our strategy for uses of cash remains unchanged. After investing behind long-term growth, which is the foremost priority, we look to sustainably grow the ordinary dividend.

Speaker #2: The interest expense is expected to increase to within a range of $230 to $250 million for 2026, given the increase in average net debt and a slightly higher blended cost of borrowing, we anticipate no change to our adjusted tax rate of 27%.

Michael Glover: The interest expense is expected to increase to within a range of $230 to 250 million for 2026, given the increase in average net debt and a slightly higher blended cost of borrowing. We anticipate no change to our adjusted tax rate of 27%. Capital expenditure guidance also remains unchanged, with key money and maintenance CapEx of $200 to 250 million within a gross total of up to $350 million on average annually. For reference, this slide also shows a summary of our growth ambitions over the medium to long term. With that, let me now hand back to Elie.

Speaker #1: In this regard, as mentioned, we are pleased to propose a final dividend growing by 10%. That rate of growth has been consistent for each of our dividend payments over the last three years.

Speaker #2: Capital expenditure guidance also remains unchanged, with key money and maintenance capex of $200 to $250 million within a gross total of up to $350 million on average annually.

Speaker #1: A year ago, we announced a $900 million buyback program, which completed in December. This repurchased 7.6 million shares and reduced the share count by 4.8%.

Speaker #1: Together with ordinary dividend payments, we returned over $1.1 billion to shareholders, which was equivalent to 5.9% of IHG's market capitalization at the start of 2025.

Speaker #2: For reference, this slide also shows a summary of our growth ambitions over the medium to long term. With that, let me now hand back to Ellie.

Speaker #2: Thank you, Michael. I will now share an update on our strategic progress in 2025 across the five areas shown here. Starting with excellent development activity across our brands.

Elie Maalouf: Thank you, Michael. I will now share an update on our strategic progress in 2025 across the five areas shown here. Starting with excellent development activity across our brands. Between 2015 and 2025, we doubled our brand portfolio from 10 to 20 brands, and today we are pleased to announce the launch of our 21st, Noted Collection, in the premium collection space. Across these brands, we are capturing more guests at more price points and more owner interest than ever before. At the top end, in ultra-luxury, Six Senses is delivering exclusive, one-of-a-kind experiences and sought-after leisure destinations, driving average daily rates of over $1,000 per night. At the other end of our portfolio is essentials. Garner is rapidly scaling and further broadens our presence in the affordable midscale space.

Speaker #1: Today, we are pleased to announce that a new share buyback program will commence immediately, returning a further $950 million. Together with the anticipated sustainable growth in ordinary dividend payments, this will return another $1.2 billion to shareholders, equivalent to 5.8% of ISG's market capitalization at the start of 2026.

Speaker #2: Between 2015 and 2025 we doubled our brand portfolio from 10 to 20 brands. And today we are pleased to announce the launch of our 21st, noted collection, and the premium collection space.

Speaker #2: Across these brands we are capturing more guests, at more price points, and more owner interest than ever before. At the top end, an ultra-luxury, Six Senses is delivering exclusive one-of-a-kind experiences and sought-after leisure destinations.

Speaker #1: Cumulatively, for the five years of 2022 to 2026, this will mean ISG has returned more than $5 billion to our shareholders. And finally, modeling considerations.

Speaker #1: The interest expense is expected to increase to within a range of $230 to $250 million for 2026, given the increase in average net debt and a slightly higher blended cost of borrowing.

Michael Glover: The interest expense is expected to increase to within a range of $230 to 250 million for 2026, given the increase in average net debt and a slightly higher blended cost of borrowing. We anticipate no change to our adjusted tax rate of 27%. Capital expenditure guidance also remains unchanged, with Key Money and maintenance CapEx of $200 to 250 million within a gross total of up to $350 million on average annually. For reference, this slide also shows a summary of our growth ambitions over the medium to long term. With that, let me now hand back to Elie.

Speaker #2: Driving average daily rates of over $1,000 per night. At the other end of our portfolio is Essentials, Garner is rapidly scaling and further broadens our presence in the affordable mid-scale space.

Speaker #1: We anticipate no change to our adjusted tax rate of 27%. Capital expenditure guidance also remains unchanged, with key money and maintenance capex of $200 to $250 million, within a gross total of up to $350 million on average annually.

Speaker #2: In the middle of the brand ladder we have doubled down on the fastest growing premium segments with the acquisition of Ruby in 2025, and today's launch of noted collection.

Elie Maalouf: In the middle of the brand ladder, we have doubled down on the fastest-growing premium segments with the acquisition of Ruby in 2025 and today's launch of Noted Collection. Across all our brands, new and established, we are unlocking the power of our industry-leading enterprise platform for even more owners. Our expanded brand portfolio diversifies our customer mix, enhances the value of our loyalty program, and brings more property types into our system, and we continue to consider options to further develop our portfolio in the future. In 2025, we opened a record 443 hotels and added a further 694 into our pipeline. Our 10 established brands, which include InterContinental, Crowne Plaza, Holiday Inn, and Holiday Inn Express, drove the majority of development activity, accounting for around two-thirds of openings and signings.

Speaker #2: Across all our brands, new and established, we are unlocking the power of our industry-leading enterprise platform for even more owners. Our expanded brand portfolio diversifies our customer mix, enhances the value of our loyalty program, and brings more property types into our system.

Speaker #1: For reference, this slide also shows a summary of our growth ambitions over the medium to long term. With that, let me now hand back to Elie.

Speaker #2: Thank you, Michael. I will now share an update on our strategic progress in 2025 across the five areas shown here, starting with excellent development activity across our brands.

Elie Maalouf: Thank you, Michael. I will now share an update on our strategic progress in 2025 across the five areas shown here. Starting with excellent development activity across our brands. Between 2015 and 2025, we doubled our brand portfolio from 10 to 20 brands, and today we are pleased to announce the launch of our 21st Noted Collection in the premium collection space. Across these brands, we are capturing more guests at more price points and more owner interest than ever before. At the top end, in ultra-luxury, Six Senses is delivering exclusive, one-of-a-kind experiences and sought-after leisure destinations, driving average daily rates of over $1,000 per night. At the other end of our portfolio is Essentials. Garner is rapidly scaling and further broadens our presence in the affordable mid-scale space.

Speaker #2: And we continue to consider options to further develop our portfolio in the future. In 2025 we opened a record $443 hotels and added a further $694 into our pipeline.

Speaker #2: Between 2015 and 2025, we doubled our brand portfolio from 10 to 20 brands. And today, we are pleased to announce the launch of our 21st: Noted Collection, and the premium collection space.

Speaker #2: Our 10 established brands, which include InterContinental, Grand Plaza, Holiday Inn, and Holiday Inn Express, drove the majority of development activity, accounting for around two-thirds of openings and signings.

Speaker #2: Across these brands, we are capturing more guests at more price points, and more owner interest than ever before. At the top end, in ultra-luxury, Six Senses is delivering exclusive one-of-a-kind experiences and sought-after leisure destinations.

Speaker #2: And with over 900,000 rooms already in our system and nearly 30% growth in the pipeline, these established brands will continue delivering system growth going forward.

Elie Maalouf: With over 900,000 rooms already in our system and nearly 30% growth in the pipeline, these established brands will continue delivering system growth going forward. Meanwhile, our newer brands are scaling quickly, accounting for 1/3 of openings and signings in the year. They've grown to already represent 10% of our current system size and 22% of the pipeline. By brand segment, we are very pleased with the continued evolution of each of our 6 brands in luxury and lifestyle. Together, these higher fee per key rooms account for 14% of our system size and 22% of the pipeline. Our 2 ultra-luxury brands, Six Senses and Regent, are creating a halo effect and opening up new ancillary fee opportunities in areas like branded residential.

Speaker #2: Driving average daily rates of over $1,000 per night. At the other end of our portfolio is Essentials. Garner is rapidly scaling and further broadens our presence in the affordable mid-scale space.

Speaker #2: Meanwhile, our newer brands are scaling quickly, accounting for one-third of openings and signings in the year. They've grown to already represent 10% of our current system size in 22% of the pipeline.

Speaker #2: In the middle of the brand ladder, we have doubled down on the fastest-growing premium segments with the acquisition of Ruby in 2025, and today's launch of Noted Collection.

Speaker #2: By brand segment we are very pleased with the continued evolution of each of our six brands in luxury and lifestyle. Together these higher fee-per-key rooms account for 14% of our system size and 22% of the pipeline.

Speaker #2: Our two ultra-luxury brands, Six Senses and Regent, are creating a halo effect and opening up new ancillary fee opportunities in areas like branded residential.

Speaker #2: And we continue to consider options to further develop our portfolio in the future. In 2025, we opened a record 443 hotels and added a further 694 into our pipeline.

Speaker #2: Regent was recently voted one of the top three most-loved hotel brands in travel and leisure's prestigious 2025 World's Best Awards. And we are thrilled in a few weeks' time to be celebrating the opening of Six Senses London.

Elie Maalouf: Regent was recently voted one of the top three most loved hotel brands in Travel + Leisure's prestigious 2025 World's Best Awards, and we are thrilled, in a few weeks' time, to be celebrating the opening of Six Senses London. This landmark hotel will be a cornerstone in the brand's exclusive and growing portfolio and will redefine urban luxury. InterContinental is delivering even higher guest satisfaction as we continue to reimagine the luxury experience for today's modern traveler. With over 240 hotels open in more than 60 countries, InterContinental is the world's largest international luxury hotel brand. Eighty years since its launch, the brand is still young and has a long runway for growth, with over 100 hotels in the pipeline. We are also very pleased with the continued growth of Vignette Collection, Kimpton, and Hotel Indigo.

Speaker #2: Our ten established brands, which include InterContinental, Grand Plaza, Holiday Inn, and Holiday Inn Express, drove the majority of development activity, accounting for around two-thirds of openings and signings.

Speaker #2: This landmark hotel will be a cornerstone in the brand's exclusive and growing portfolio and will redefine urban luxury. InterContinental is delivering even higher guest satisfaction as we continue to reimagine the luxury experience for today's modern traveler.

Speaker #2: And with over 900,000 rooms already in our system, and nearly 30% growth in the pipeline, these established brands will continue delivering system growth going forward.

Speaker #2: With over 240 hotels open in more than 60 countries, InterContinental is the world's largest international luxury hotel brand. And 80 years since its launch the brand is still young and has a long runway for growth with over 100 hotels in the pipeline.

Speaker #2: By brand segment, we are very pleased with the continued evolution of each of our six brands in luxury and lifestyle. Together, these higher-fee-per-key rooms account for 14% of our system size and 22% of the pipeline.

Speaker #2: We are also very pleased with the continued growth of vignette collection, Kimpton and Hotel Indigo. Vignette collection launched in 2021 is tracking ahead of its goal to reach 100 hotels open in a decade.

Elie Maalouf: Vignette Collection, launched in 2021, is tracking ahead of its goal to reach 100 hotels open in a decade. Kimpton further expanded its global footprint with notable openings, including a first hotel in Hong Kong, and Hotel Indigo has now exceeded 320 open and pipeline hotels in nearly 50 countries, reflecting its accelerated pace of development. Turning to premium, we are focused on expanding our offer in this large and fast-growing category, which is key to unlocking cross-category demand between luxury and essentials. Each of our six brands in this category is highly differentiated, capturing a range of stay occasions and guests. Our premium portfolio is anchored by Crowne Plaza, a trusted name for both business and blended travelers.

Speaker #2: Kimpton further expanded its global footprint with notable openings including a first hotel in Hong Kong, and Hotel Indigo has now exceeded 320 nearly 50 countries reflecting its accelerated pace of development.

Speaker #2: Our two ultra-luxury brands, Six Senses and Regent, are creating a halo effect and opening up new ancillary fee opportunities in areas like branded residential.

Speaker #2: Regent was recently voted one of the top three most-loved hotel brands in Travel + Leisure's prestigious 2025 World's Best Awards. And we are thrilled that, in a few weeks' time, we will be celebrating the opening of Six Senses London. This landmark hotel will be a cornerstone in the brand's exclusive and growing portfolio, and will redefine urban luxury.

Elie Maalouf: Regent was recently voted one of the top three most loved hotel brands in Travel + Leisure's prestigious 2025 World's Best Awards. We are thrilled, in a few weeks' time, to be celebrating the opening of Six Senses, London. This landmark hotel will be a cornerstone in the brand's exclusive and growing portfolio and will redefine urban luxury. InterContinental is delivering even higher guest satisfaction as we continue to reimagine the luxury experience for today's modern traveler. With over 240 hotels open in more than 60 countries, InterContinental is the world's largest international luxury hotel brand. Eighty years since its launch, the brand is still young and has a long runway for growth, with over 100 hotels in the pipeline. We are also very pleased with the continued growth of Vignette Collection, Kimpton, and Hotel Indigo.

Speaker #2: Turning to premium, we are focused on expanding our offer in this large and fast-growing category. Which is key to unlocking cross-category demand between luxury and essentials.

Speaker #2: Each of our six brands in this category is highly differentiated, capturing a range of stay occasions and guests. Our premium portfolio is anchored by Crown Plaza, a trusted name for both business and blended travelers.

Speaker #2: InterContinental is delivering even higher guest satisfaction as we continue to reimagine the luxury experience for today's modern traveler. With over 240 hotels open in more than 60 countries, InterContinental is the world's largest international luxury hotel brand.

Speaker #2: The hotel openings and signings increasing over the past four years, taking its total open and pipeline hotels to 578. And with 34% rooms growth embedded in the pipeline, Crown Plaza's growth prospects are at their highest level in over 15 years.

Elie Maalouf: The brand is building strong momentum, with hotel openings and signings increasing over the past 4 years, taking its total open and pipeline hotels to 578. With 34% rooms growth embedded in the pipeline, Crowne Plaza's growth prospects are at their highest level in over 15 years. Driving this demand is a successful evolution of the brand and enhanced quality of the estate. Today, 70% of Crowne Plaza properties in the Americas and more than 60% globally are new to the system or have undergone a renovation. At the same time, we are doubling down on premium's fastest-growing segments. Our versatile premium conversion brand, voco, already has 124 open hotels across more than 30 countries since launching in 2018, with a further 108 pipeline hotels as signings continue to accelerate.

Speaker #2: And, 80 years since its launch, the brand is still young and has a long runway for growth, with over 100 hotels in the pipeline.

Speaker #2: Driving this demand is a successful evolution of the brand and enhanced quality of the estate. e. Today 70% of Crown Plaza properties in the Americas and more than 60% globally are new to the system or have undergone a renovation.

Speaker #2: We are also very pleased with the continued growth of Vignette Collection, Kimpton, and Hotel Indigo. Vignette Collection, launched in 2021, is tracking ahead of its goal to reach 100 hotels open in a decade.

Speaker #2: At the same time, we are doubling down on premiums, fastest-growing segments. Our versatile premium conversion brand Voco already has 124 open hotels across more than 30 countries since launching in 2018.

Speaker #2: Kimpton further expanded its global footprint with notable openings, including its first hotel in Hong Kong. Hotel Indigo has now exceeded 320 open and pipeline hotels in nearly 50 countries, reflecting its accelerated pace of development.

Speaker #2: With a further 108 pipeline hotels and signings continue to accelerate. Our recently acquired brand Ruby had 20 open hotels at the time of acquisition, has signed new deals in new exciting destinations including the US, and we expect it to reach 120 hotels within 10 years.

Elie Maalouf: Our recently acquired brand, Ruby, had 20 open hotels at the time of acquisition, has signed new deals in new, exciting destinations, including the US, and we expect it to reach 120 hotels within 10 years. Noted Collection, launched today, we expect to also scale rapidly. Let's take a look at this short reel to give you a brief flavor of the brand. Noted Collection, which is designed to power the performance of high-quality, upscale to upper upscale hotels with their own unique identity, fills a key space in our brand ladder and further expands our offer for guests. It will initially focus on our EMEAA region, where there is a significant proportion of high-quality hotels with strong individual brand equity that would benefit from fast connection to our powerful enterprise, global scale, and expertise.

Speaker #2: Turning to premium, we are focused on expanding our offer in this large and fast-growing category, which is key to unlocking cross-category demand between luxury and essentials.

Speaker #2: Each of our six brands in this category is highly differentiated, capturing a range of stay occasions and guests. Our premium portfolio is anchored by Crowne Plaza, a trusted name for both business and blended travelers.

Speaker #2: And noted collection launched today we expect to also scale rapidly. Let's take a look at the short reel to give you a brief flavor of the brand.

Speaker #2: The brand is building strong momentum, with hotel openings and signings increasing over the past four years, taking its total open and pipeline hotels to 578.

Speaker #2: And with 34% rooms growth embedded in the pipeline, Crowne Plaza's growth prospects are at their highest level in over 15 years. Driving this demand is a successful evolution of the brand and enhanced quality of the estate.

Speaker #2: Today, 70% of Crowne Plaza properties in the Americas, and more than 60% globally, are new to the system or have undergone a renovation. At the same time, we are doubling down on premium's fastest-growing segments.

Speaker #2: Our versatile premium conversion brand, Voco, already has 124 open hotels across more than 30 countries since launching in 2018, with a further 108 pipeline hotels, and signings continue to accelerate.

Speaker #2: Our recently acquired brand, Ruby, had 20 open hotels at the time of acquisition, has signed new deals in exciting new destinations including the US, and we expect it to reach 120 hotels within 10 years.

Elie Maalouf: Our recently acquired brand, Ruby, had 20 open hotels at the time of acquisition, has signed new deals in new, exciting destinations, including the US, and we expect it to reach 120 hotels within 10 years. Noted Collection, launched today, we expect to also scale rapidly. Let's take a look at this short reel to give you a brief flavor of the brand. Noted Collection, which is designed to power the performance of high-quality, upscale to upper upscale hotels with their own unique identity, fills a key space in our brand ladder and further expands our offer for guests. It will initially focus on our EMEA region, where there is a significant proportion of high-quality hotels with strong individual brand equity that would benefit from fast connection to our powerful enterprise, global scale, and expertise....

Speaker #2: Noted collection, which is designed to power the performance of high-quality upscale-to-upper-upscale hotels with their own unique identity, fills a key space in our brand ladder and further expands our offer for guests.

Speaker #2: And Noted Collection launched today; we expect to also scale rapidly. Let's take a look at the short reel to give you a brief flavor of the brand.

Speaker #2: It will initially focus on our EMEAA region where there is a significant proportion of high-quality hotels with strong individual brand equity that would benefit from fast connection to our powerful enterprise global scale and expertise.

Speaker #2: We are already an initial discussions with multiple owners including several with portfolios of hotels, and we expect to reach more than 150 hotels over the next decade.

Elie Maalouf: We are already in initial discussions with multiple owners, including several with portfolios of hotels, and we expect to reach more than 150 hotels over the next decade. More details about the brand, including the media release and the full highlights reel, can be found on our corporate website. We also continue to extend our mainstream leadership through our powerhouse Essentials and Suites brands. Our world-leading Holiday Inn Express brand opened another 95 hotels in 2025, taking its open estate to 3,300. Its strongest level of signings in 6 years, around 170 hotels, takes its pipeline to 655. During the year, we also opened the brand's first Gen Five hotels in Greater China and Europe, a format designed to boost both owner returns and guest satisfaction.

Speaker #2: More details about the brand including the media release and the full highlights reel can be found on our corporate website. We also continue to extend our mainstream leadership through our powerhouse essentials and suites brands.

Speaker #2: Our world-leading holiday and express brand open another 95 hotels in 2025, taking its open estate to 3,300. Its strongest level of signings in six years around 170 hotels takes its pipeline to 655.

Speaker #2: And during the year we also open the brand's first Gen 5 hotels in Greater China and Europe, a format designed to boost both owner returns and guest satisfaction.

Speaker #2: Our latest holiday in design has also expanded in the US and is delivering performance uplifts. And as mentioned earlier, we are very pleased with the speed of Garner's growth becoming ISG's fastest-ever brand-to-scale globally.

Speaker #2: Noted Collection, which is designed to power the performance of high-quality upscale-to-upper-upscale hotels with their own unique identity, fills a key space in our brand ladder and further expands our offer for guests.

Elie Maalouf: Our latest Holiday Inn design has also expanded in the US and is delivering performance uplifts. As mentioned earlier, we are very pleased with the speed of Garner's growth, becoming IHG's fastest-ever brand to scale globally. Garner entered 6 new countries in 2025 alone: Mexico, Austria, the Netherlands, Italy, Turkey, and Thailand. Finally, we continued the strong momentum of our Suites brands with 50 hotel openings in 2025, up around 30% year-over-year based on rooms, and we signed a further 90 hotels into the pipeline. We now have over 1,200 open and under development Suites hotels. Let's now turn to priority growth geographies, where we are achieving impressive development activity across our regions. Let me first begin with a reminder of our global position today.

Speaker #2: It will initially focus on our EMEAA region, where there is a significant proportion of high-quality hotels with strong individual brand equity that would benefit from fast connection to our powerful enterprise, global scale, and expertise.

Speaker #2: Garner entered six new countries in 2025 alone, Mexico, Austria, the Netherlands, Italy, Turkey, and Thailand. Finally, we continue the strong momentum of our suites brands with 50 hotel openings in 2025, up around 30% year-over-year based on rooms, and we signed a further 90 hotels into the pipeline.

Speaker #2: We are already in initial discussions with multiple owners, including several with portfolios of hotels, and we expect to reach more than 150 hotels over the next decade.

Elie Maalouf: We are already in initial discussions with multiple owners, including several with portfolios of hotels, and we expect to reach more than 150 hotels over the next decade. More details about the brand, including the media release and the full highlights reel, can be found on our corporate website. We also continue to extend our mainstream leadership through our powerhouse Essentials and Suites brands. Our world-leading Holiday Inn Express brand opened another 95 hotels in 2025, taking its open estate to 3,300. Its strongest level of signings in six years, around 170 hotels, takes its pipeline to 655. During the year, we also opened the brand's first Gen Five hotels in Greater China and Europe, a format designed to boost both owner returns and guest satisfaction.

Speaker #2: We now have over 1,200 open and underdevelopment suites hotels. Let's now turn to priority growth geographies where we are achieving impressive development activity across our regions.

Speaker #2: More details about the brand, including the media release and the full highlights reel, can be found on our corporate website. We also continue to extend our mainstream leadership through our powerhouse Essentials and Suites brands, our world-leading Holiday and Express brand. Open another 95 hotels in 2025, taking its open estate to 3,300.

Speaker #2: Let me first begin with a reminder of our global position today. IHG is a large domestic player in large domestic markets with the US, Europe, and China collectively accounting for 79% of our current system size.

Elie Maalouf: IHG is a large domestic player in large domestic markets, with the US, Europe, and China collectively accounting for 79% of our current system size. We are also large domestic players in Canada, Mexico, Saudi Arabia, Japan, and Australia. This is by strategic design. In 2025, approximately 90% of guests staying at our hotels around the world traveled either domestically or from nearby countries. Therefore, shifting travel flows, while impactful to certain markets and regions, usually have limited impact on IHG's global performance. And as we approach 7,000 hotels in over 100 countries, we are well-positioned to capture guests even further, wherever and whenever they choose to travel. Our pipeline of 2,300 hotels also deepens our presence in the world's fastest-growing economies.

Speaker #2: Its strongest level of signings in six years—around 170 hotels—takes its pipeline to 655. And during the year, we also opened the brand's first Gen 5 hotels in Greater China and Europe, a format designed to boost both owner returns and guest satisfaction.

Speaker #2: We are also large domestic players in Canada, Mexico, Saudi Arabia, Japan, and Australia. This is by strategic design. In 2025, approximately 90% of guests staying at our hotels around the world traveled either domestically or from nearby countries.

Speaker #2: Therefore, shifting travel flows, while impactful to certain markets and regions, usually have limited impact on ISG's global performance. And as we approach 7,000 hotels in over 100 countries, we are well positioned to capture guests even further wherever and whenever they choose to travel.

Speaker #2: Our latest Holiday Inn design has also expanded in the US and is delivering performance uplifts. And as mentioned earlier, we are very pleased with the speed of Garner's growth, becoming IHG's fastest-ever brand to scale globally.

Elie Maalouf: Our latest Holiday Inn design has also expanded in the US and is delivering performance uplifts. As mentioned earlier, we are very pleased with the speed of Garner's growth, becoming IHG's fastest-ever brand to scale globally. Garner entered six new countries in 2025 alone: Mexico, Austria, the Netherlands, Italy, Turkey, and Thailand. Finally, we continued the strong momentum of our suites brands with 50 hotel openings in 2025, up around 30% year-over-year based on rooms, and we signed a further 90 hotels into the pipeline. We now have over 1,200 open and under development suites hotels. Let's now turn to priority growth geographies, where we are achieving impressive development activity across our regions. Let me first begin with a reminder of our global position today.

Speaker #2: Garner entered six new countries in 2025 alone: Mexico, Austria, the Netherlands, Italy, Turkey, and Thailand. Finally, we continue the strong momentum of our suites brands with 50 hotel openings in 2025, up around 30% year-over-year based on rooms, and we signed a further 90 hotels into the pipeline.

Speaker #2: Our pipeline of 2,300 hotels also deepens our presence in the world's fastest-growing economies. Almost 60% of this pipeline is located east of Europe and in countries that will collectively see economic output rapidly increase by more than 40% over the next 10 years, and the number of middle-income households increase by more than 80%.

Elie Maalouf: Almost 60% of this pipeline is located east of Europe and in countries that will collectively see economic output rapidly increase by more than 40% over the next 10 years, and the number of middle-income households increase by more than 80%. Taking a closer look at our largest market, the US, development momentum continued to pick up in 2025, with gross openings accelerating for the second consecutive year to grow 11% year-over-year. We opened 156 hotels, driven by momentum across our Premium, Essentials, and Suites brands, and signed 233 hotels into the pipeline, highlighting owners' continued confidence in investing behind our brands. In Greater China, we celebrated IHG's 50th anniversary and our 800th opening in early 2025. By year-end, we reached 882 open hotels, with net system growth of nearly 9%.

Speaker #2: We now have over 1,200 open and under-development suites hotels. Let's now turn to priority growth geographies, where we are achieving impressive development activity across our regions.

Speaker #2: Taking a closer look at our largest market, the US, development momentum continued to pick up in 2025 with gross openings accelerating for the second consecutive year to grow 11% year-over-year.

Speaker #2: Let me first begin with a reminder of our global position today. IHG is a large domestic player in large domestic markets, with the US, Europe, and China collectively accounting for 79% of our current system size.

Elie Maalouf: IHG is a large domestic player in large domestic markets, with the US, Europe, and China collectively accounting for 79% of our current system size. We are also large domestic players in Canada, Mexico, Saudi Arabia, Japan, and Australia. This is by strategic design. In 2025, approximately 90% of guests staying at our hotels around the world traveled either domestically or from nearby countries. Therefore, shifting travel flows, while impactful to certain markets and regions, usually have limited impact on IHG's global performance. As we approach 7,000 hotels in over 100 countries, we are well-positioned to capture guests even further, wherever and whenever they choose to travel. Our pipeline of 2,300 hotels also deepens our presence in the world's fastest-growing economies.

Speaker #2: We opened 156 hotels, driven by momentum across our premium, essentials, and suites brands, and signed 233 hotels into the pipeline, highlighting owner's continued confidence in investing behind our brands.

Speaker #2: In Greater China, we celebrated ISG's 50th anniversary and our 800th opening in early 2025. By year-end, we reached 882 open hotels with net system growth of nearly 9%.

Speaker #2: Therefore, shifting travel flows, while impactful to certain markets and regions, usually have limited impact on Ice Sheet's global performance. And as we approach 7,000 hotels in over 100 countries, we are well positioned to capture guests even further, wherever and whenever they choose to travel.

Speaker #2: It was another record year of both hotel openings and signings with the latter taking our pipeline to 582 hotels. During 2025, we also opened our first at-will hotel, so 13 of our brands are now present in Greater China.

Elie Maalouf: It was another record year of both hotel openings and signings, with the latter taking our pipeline to 582 hotels. During 2025, we also opened our first Atwell hotel, so 13 of our brands are now present in Greater China. Many of these brands are still in their infancy in the region, and we will introduce additional brands into this vast market in the coming years, including Garner in 2026. Looking ahead, 56% growth is embedded in our pipeline, and we remain confident in the market's long-term structural growth drivers, supported by a middle-class forecast to approximately double over the next 10 years and a significant under-penetration of hotels per capita relative to the US. Turning now to EMEA and four priority growth geographies, where our strategic focus is delivering strong growth momentum and market share gains.

Speaker #2: Many of these brands are still in their infancy in the region, and we will introduce additional brands into this vast market in the coming years including Garner, in 2026.

Speaker #2: Our pipeline of 2,300 hotels also deepens our presence in the world's fastest-growing economies. Almost 60% of this pipeline is located east of Europe, in countries that will collectively see economic output rapidly increase by more than 40% over the next 10 years, and the number of middle-income households increase by more than 80%.

Elie Maalouf: Almost 60% of this pipeline is located east of Europe and in countries that will collectively see economic output rapidly increase by more than 40% over the next 10 years, and the number of middle-income households increase by more than 80%. Taking a closer look at our largest market, the US, development momentum continued to pick up in 2025, with gross openings accelerating for the second consecutive year to grow 11% year-over-year. We opened 156 hotels, driven by momentum across our premium, essentials, and suites brands, and signed 233 hotels into the pipeline, highlighting owners' continued confidence in investing behind our brands. In Greater China, we celebrated IHG's 50th anniversary and our 800th opening in early 2025. By year-end, we reached 882 open hotels, with net system growth of nearly 9%.

Speaker #2: Looking ahead, 56% growth is embedded in our pipeline, and we remain confident in the market's long-term structural growth drivers. Supported by a middle-class forecast to approximately double over the next 10 years and a significant under-penetration of hotels per capita relative to the US.

Speaker #2: Taking a closer look at our largest market, the US, development momentum continued to pick up in 2025, with gross openings accelerating for the second consecutive year to grow 11% year-over-year.

Speaker #2: Turning now to EMEAA and four priority growth geographies where our strategic focus is delivering strong growth momentum and market share gains. Starting with Germany, one of Europe's largest hotel markets with strong domestic consumption and inbound travel, and also one of the largest sources of international outbound travel globally.

Speaker #2: We opened 156 hotels, driven by momentum across our premium, essentials, and suites brands, and signed 233 hotels into the pipeline, highlighting owners' continued confidence in investing behind our brands.

Elie Maalouf: Starting with Germany, one of Europe's largest hotel markets, with strong domestic consumption and inbound travel, and also one of the largest sources of international outbound travel globally. In 2025, we doubled our presence in the country to 190 hotels from 96 in 2023. We are also pleased to have signed a further 25 hotels into the pipeline as growth momentum in this strategically important market accelerates. Momentum is also accelerating in Japan, where the top three global players account for only 5% of industry supply. In 2025, we opened 8 hotels and signed another 18, our strongest year in the country since 2007. We also launched several successful local partnership initiatives, including an IHG mini app in Japan's most popular messaging platform, LINE. We now have 4 million followers, 4 times more than our closest competitors.

Speaker #2: In Greater China, we celebrated Ice Sheet's 50th anniversary and our 800th opening in early 2025. By year-end, we reached 882 open hotels, with net system growth of nearly 9%.

Speaker #2: In 2025, we doubled our presence in the country to 190 hotels from 96 in 2023. We are also pleased to have signed a further 25 hotels into the pipeline as growth momentum in the strategically important market accelerates.

Speaker #2: It was another record year of both hotel openings and signings, with the latter taking our pipeline to 582 hotels. During 2025, we also opened our first at-will hotel, so 13 of our brands are now present in Greater China.

Elie Maalouf: It was another record year of both hotel openings and signings, with the latter taking our pipeline to 582 hotels. During 2025, we also opened our first Atwell Suites, so 13 of our brands are now present in Greater China. Many of these brands are still in their infancy in the region, and we will introduce additional brands into this vast market in the coming years, including Garner in 2026. Looking ahead, 56% growth is embedded in our pipeline, and we remain confident in the market's long-term structural growth drivers, supported by a middle-class forecast to approximately double over the next 10 years and a significant under-penetration of hotels per capita relative to the US. Turning now to EMEA and four priority growth geographies where our strategic focus is delivering strong growth momentum and market share gains.

Speaker #2: Momentum is also accelerating in Japan. Where the top three global players account for only 5% of industry supply, in 2025, we opened eight hotels and signed another 18, our strongest year in the country since 2007.

Speaker #2: Many of these brands are still in their infancy in the region, and we will introduce additional brands into this vast market in the coming years, including Garner in 2026.

Speaker #2: We also launched several successful local partnership initiatives, including an IHG mini-app in Japan's most popular messaging platform, The Line, we now have 4 million followers, four times more than our closest competitors.

Speaker #2: Looking ahead, 56% growth is embedded in our pipeline, and we remain confident in the market's long-term structural growth drivers, supported by a middle class forecast to approximately double over the next 10 years and a significant underpenetration of hotels per capita relative to the US.

Speaker #2: In Saudi Arabia, we opened our first Kimpton in 2025, which takes the number of brands present in the country to seven. We also signed a record 21 hotels including the launch of even hotels for the wider EMEAA region, as well as two portfolios totaling six hotels across five different ISG brands.

Elie Maalouf: In Saudi Arabia, we opened our first Kimpton in 2025, which takes the number of brands present in the country to 7. We also signed a record 21 hotels, including the launch of EVEN Hotels for the wider EMEA region, as well as two portfolios totaling 6 hotels across 5 different IHG brands. We continue to see tremendous opportunity in Saudi Arabia, with over 80% rooms growth embedded in our pipeline, industry-leading signing share in the first 9 months of 2025, and nearly 20% share of future industry supply. In India, we surpassed a major milestone of 50 open hotels in 2025 and delivered record signings in this rapidly growing market, taking our pipeline to 89 hotels. Notable signings included the first 5 Garner hotels, and we opened our first Vignette Collection.

Speaker #2: We continue to see tremendous opportunity in Saudi Arabia with over 80% rooms growth embedded in our pipeline, industry-leading signing share in the first nine months of 2025, and nearly 20% share of future industry supply.

Elie Maalouf: Starting with Germany, one of Europe's largest hotel markets, with strong domestic consumption and inbound travel, and also one of the largest sources of international outbound travel globally. In 2025, we doubled our presence in the country to 190 hotels from 96 in 2023. We are also pleased to have signed a further 25 hotels into the pipeline as growth momentum in this strategically important market accelerates. Momentum is also accelerating in Japan, where the top three global players account for only 5% of industry supply. In 2025, we opened eight hotels and signed another 18, our strongest year in the country since 2007. We also launched several successful local partnership initiatives, including an IHG mini app in Japan's most popular messaging platform, the LINE. We now have 4 million followers, four times more than our closest competitors.

Speaker #2: In 2025, we doubled our presence in the country to 190 hotels from 96 in 2023. We are also pleased to have signed a further 25 hotels into the pipeline, as growth momentum in this strategically important market accelerates.

Speaker #2: In India, we surpassed a major milestone of 50 open hotels in 2025 and delivered record signings in this rapidly growing market. Taking our pipeline to 89 hotels.

Speaker #2: Momentum is also accelerating in Japan, where the top three global players account for only 5% of industry supply. In 2025, we opened eight hotels and signed another 18.

Speaker #2: Notable signings included the first five Garner hotels, and we opened our first vignette collection. This momentum reflects strong owner confidence in our brand portfolio and the power of our enterprise platform in this rapidly growing market.

Elie Maalouf: This momentum reflects strong owner confidence in our brand portfolio and the power of our enterprise platform in this rapidly growing market. We see large and long-term potential going forward, with around 160% growth embedded in our pipeline and an ambition to triple our open and pipeline hotels over the next five years. Overall, the strength of our brands and global geographic positioning drove our strongest gross and net system size growth performance in six years, with 33% further rooms growth embedded in our pipeline, around 50% of which is currently under construction and attractive long-term structural industry growth drivers at play. We remain confident in the momentum of our system growth going forward. Now, turning to the important progress we're making in developing our leading technology and enterprise platform to capture demand, deepen guest loyalty, and drive hotel owner returns.

Speaker #2: This was our strongest year in the country since 2007. We also launched several successful local partnership initiatives, including an IHG mini-app in Japan's most popular messaging platform, The Line. We now have 4 million followers, four times more than our closest competitors.

Speaker #2: We see large and long-term potential going forward with around 160% growth embedded in our pipeline and an ambition to triple or open in pipeline hotels over the next five years.

Speaker #2: Overall, the strength of our brands and global geographic positioning drove our strongest gross and net system size growth performance in six years. With 33% further rooms growth embedded in our pipeline, around 50% of which is currently under construction, and attractive long-term structural industry growth drivers at play, we remain confident in the momentum of our system growth going forward.

Speaker #2: In Saudi Arabia, we opened our first Kimpton in 2025, which takes the number of brands present in the country to seven. We also signed a record 21 hotels, including the launch of EVEN Hotels for the wider EMEAA region, as well as two portfolios totaling six hotels across five different IHG brands.

Elie Maalouf: In Saudi Arabia, we opened our first Kimpton in 2025, which takes the number of brands present in the country to seven. We also signed a record 21 hotels, including the launch of even hotels for the wider EMEA region, as well as two portfolios totaling six hotels across five different IHG brands. We continue to see tremendous opportunity in Saudi Arabia, with over 80% rooms growth embedded in our pipeline, industry-leading signing share in the first nine months of 2025, and nearly 20% share of future industry supply. In India, we surpassed a major milestone of 50 open hotels in 2025 and delivered record signings in this rapidly growing market, taking our pipeline to 89 hotels. Notable signings included the first five Garner hotels, and we opened our first Vignette Collection.

Speaker #2: We continue to see tremendous opportunity in Saudi Arabia, with over 80% rooms growth embedded in our pipeline, industry-leading signing share in the first nine months of 2025, and nearly 20% share of future industry supply.

Speaker #2: Now, turning to the important progress we're making in developing our leading technology and enterprise platform to capture demand, deepen guest loyalty, and drive hotel owner returns.

Speaker #2: Our industry-leading connected technology ecosystem is the backbone of our enterprise platform and one of our key competitive advantages. Enabling us and our hotel owners to capitalize on the opportunities that new technologies like artificial intelligence are creating.

Elie Maalouf: Our industry-leading connected technology ecosystem is the backbone of our enterprise platform and one of our key competitive advantages, enabling us and our hotel owners to capitalize on the opportunities that new technologies like artificial intelligence are creating. At the center of how we optimize operations for owners is our first in the industry guest reservation system, which is extremely well invested in and is the backbone upon which other core systems connect. The GRS interconnectivity is also central to how we leverage the ecosystem to promote all IHG hotels and engage our guests. I will come back to developments across the promote and engage pillars in just a moment. Before that, touching on core systems a little further. In 2025, a further 3,400 hotels adopted our new revenue management system, completing the rollout of the platform across the eligible estate.

Speaker #2: In India, we surpassed a major milestone of 50 open hotels in 2025 and delivered record signings in this rapidly growing market, taking our pipeline to 89 hotels.

Speaker #2: Notable signings included the first five Garner hotels, and we opened our first Vignette Collection. This momentum reflects strong owner confidence in our brand portfolio and the power of our enterprise platform in this rapidly growing market.

Speaker #2: At the center of how we optimize operations for owners is our first-in-the-industry guest reservation system. Which is extremely well invested in and is the backbone upon which other core systems connect.

Elie Maalouf: This momentum reflects strong owner confidence in our brand portfolio and the power of our enterprise platform in this rapidly growing market. We see large and long-term potential going forward, with around 160% growth embedded in our pipeline and an ambition to triple our open and pipeline hotels over the next five years. Overall, the strength of our brands and global geographic positioning drove our strongest gross and net system size growth performance in six years, with 33% further rooms growth embedded in our pipeline, around 50% of which is currently under construction, and attractive long-term structural industry growth drivers at play. We remain confident in the momentum of our system growth going forward. Now, turning to the important progress we're making in developing our leading technology and enterprise platform to capture demand, deepen guest loyalty, and drive hotel owner returns.

Speaker #2: We see large and long-term potential going forward, with around 160% growth embedded in our pipeline and an ambition to triple or open in-pipeline hotels over the next five years.

Speaker #2: The GRS interconnectivity is also central to how we leverage the ecosystem to promote, all ISG hotels, and engage our guests. I will come back to developments across the promote and engage pillars in just a moment.

Speaker #2: Overall, the strength of our brands and global geographic positioning drove our strongest gross and net system size growth performance in six years. With 33% further rooms growth embedded in our pipeline—around 50% of which is currently under construction—and attractive long-term structural industry growth drivers at play, we remain confident in the momentum of our system growth going forward.

Speaker #2: Before that, touching on core systems a little further. In 2025, a further 3,400 hotels adopted our new revenue management system completing the rollout of the platform across the eligible estate.

Speaker #2: This new RMS offers best-in-class cloud-based solutions that incorporates data science, machine learning, AI, and forecasting tools to deliver advanced insights and recommendations to owners.

Elie Maalouf: This new RMS offers best-in-class cloud-based solutions that incorporates data science, machine learning, AI, and forecasting tools to deliver advanced insights and recommendations to owners. This significant innovation is made possible by the previous rollout of our GRS. We are creating even greater value for owners by providing hotels with a next-generation property management system through cloud-based, above-property solutions that apply the latest technology and allow the deployment of fast, efficient enhancements. Benefits include quicker colleague onboarding, training, and streamlined front desk processes via mobile and remote access. The accelerated rollout of our new PMS solutions reached 2,000 hotels in 2025, and we expect to double this to 4,000 by the end of 2026. Turning then to the next phase of our technology evolution and the ways we are weaving artificial intelligence throughout our enterprise platform and transforming how we deliver on our growth algorithm.

Speaker #2: This significant innovation is made possible by the previous rollout of our GRS. We are creating even greater value for owners by providing hotels with a next-generation property management system through cloud-based above-property solutions that apply the latest technology and allow the deployment of fast, efficient, enhancements.

Speaker #2: Our industry-leading connected technology ecosystem is the backbone of our enterprise platform and one of our key competitive advantages, enabling us and our hotel owners to capitalize on the opportunities that new technologies like artificial intelligence are creating.

Speaker #2: Benefits include quicker colleague onboarding and training and streamlined front-desk processes via mobile and remote access. The accelerated rollout of our new PMS solutions reached 2,000 hotels in 2025, and we expect to double this to 4,000 by the end of 2026.

Speaker #2: At the center of how we optimize operations for owners is our first-in-the-industry guest reservation system, which is extremely well-invested in and is the backbone upon which other core systems connect.

Speaker #2: The GRS interconnectivity is also central to how we leverage the ecosystem to promote all Ice Sheet hotels and engage our guests. I will come back to developments across the promote and engage pillars in just a moment.

Speaker #2: Turning then to the next phase of our technology evolution and the ways we are weaving artificial intelligence throughout our enterprise platform and transforming how we deliver on our growth algorithm.

Speaker #2: Our approach to artificial intelligence can be grouped into three distinct areas. Guest acquisition, commercial optimization, and cost efficiency. Starting with guest acquisition, our teams are leveraging the latest technology to develop new ways to promote our hotels and drive bookings and deliver more memorable stays for our guests.

Elie Maalouf: Our approach to artificial intelligence can be grouped into three distinct areas: guest acquisition, commercial optimization, and cost efficiency. Starting with guest acquisition, our teams are leveraging the latest technology to develop new ways to promote our hotels, drive bookings, and deliver more memorable stays for our guests. Within this area, we are pursuing four key initiatives: search, discover, book, and stay. First, we will begin rolling out our new content platform this year, ensuring the right hotel information is showing up in the right channels at the right time. Second, we are developing foundational AI-powered trip planning capabilities in partnership with Google, a key step in moving towards a more conversational search experience on IHG's owned websites and apps. Third, we are piloting new AI-powered marketing tools that are delivering meaningful improvement in click-through rates and ROI in initial testing.

Speaker #2: Before that, touching on core systems a little further—in 2025, a further 3,400 hotels adopted our new revenue management system, completing the rollout of the platform across the eligible estate.

Speaker #2: This new RMS offers best-in-class cloud-based solutions that incorporate data science, machine learning, AI, and forecasting tools to deliver advanced insights and recommendations to owners.

Elie Maalouf: This new RMS offers best-in-class cloud-based solutions that incorporates data science, machine learning, AI, and forecasting tools to deliver advanced insights and recommendations to owners. This significant innovation is made possible by the previous rollout of our GRS. We are creating even greater value for owners by providing hotels with a next-generation property management system through cloud-based, above property solutions that apply the latest technology and allow the deployment of fast, efficient enhancements. Benefits include quicker colleague onboarding and training, and streamlined front desk processes via mobile and remote access. The accelerated rollout of our new PMS solutions reached 2,000 hotels in 2025, and we expect to double this to 4,000 by the end of 2026.

Speaker #2: Within this area, we are pursuing four key initiatives. Search, discover, book, and stay. First, we will begin rolling out our new content platform this year, ensuring the right hotel information and showing up in the right channels at the right time.

Speaker #2: This significant innovation is made possible by the previous rollout of our GRS. We are creating even greater value for owners by providing hotels with a next-generation property management system through cloud-based, above-property solutions that apply the latest technology and allow the deployment of fast, efficient enhancements.

Speaker #2: Second, we are developing foundational AI-powered trip planning capabilities in partnership with Google, a key step in moving towards a more conversational search experience on ISG's owned websites and apps.

Speaker #2: Benefits include quicker colleague onboarding and training, as well as streamlined front desk processes via mobile and remote access. The accelerated rollout of our new PMS solutions reached 2,000 hotels in 2025, and we expect to double this to 4,000 by the end of 2026.

Speaker #2: Third, we are piloting new AI-powered marketing tools that are delivering meaningful improvement in click-through rates and ROI in initial testing. Fourth, we are refreshing our loyalty platforms and deploying a new AI-enhanced CRM platform this year that will help our hotels know their guests on a more personal level and drive deeper loyalty.

Elie Maalouf: Fourth, we are refreshing our loyalty platforms and deploying a new AI-enhanced CRM platform this year that will help our hotels know their guests on a more personal level and drive deeper loyalty. I will touch on this and the content platform in more detail shortly. Together, these capabilities will strengthen our direct channels, bring more guests to our hotels, and keep our most loyal guests coming back. Turning to our second area, commercial optimization. Our new RMS, which builds upon our previous investment in GRS and leverages machine learning AI, is fully rolled out and achieving positive impact on owners' top-line performance in the form of revenue uplift and market share gains. Our hotels are also seeing efficiency gains through the use of automatic language translation and digital assistants that answer common guest questions, freeing up time for our hotel colleagues to focus on more value-added activities.

Speaker #2: Turning, then, to the next phase of our technology evolution and the ways we are weaving artificial intelligence throughout our enterprise platform and transforming how we deliver on our growth algorithm.

Elie Maalouf: Turning then to the next phase of our technology evolution and the ways we are weaving artificial intelligence throughout our enterprise platform and transforming how we deliver on our growth algorithm. Our approach to artificial intelligence can be grouped into three distinct areas: guest acquisition, commercial optimization, and cost efficiency. Starting with guest acquisition, our teams are leveraging the latest technology to develop new ways to promote our hotels, drive bookings, and deliver more memorable stays for our guests. Within this area, we are pursuing four key initiatives: search, discover, book, and stay. First, we will begin rolling out our new content platform this year, ensuring the right hotel information is showing up in the right channels at the right time.

Speaker #2: I will touch on this and the content platform in more detail shortly. Together, these capabilities will strengthen our direct channels and bring more guests to our hotels and keep our most loyal guests coming back.

Speaker #2: Our approach to artificial intelligence can be grouped into three distinct areas: guest acquisition, commercial optimization, and cost efficiency. Starting with guest acquisition, our teams are leveraging the latest technology to develop new ways to promote our hotels, drive bookings, and deliver more memorable stays for our guests.

Speaker #2: Turning to our second area, commercial optimization. Our new RMS, which builds upon our previous investment in GRS and leverages machine learning AI, is fully rolled out and achieving positive impact on owners' top-line performance in the form of revenue uplift and market share gains.

Speaker #2: Within this area, we are pursuing four key initiatives: search, discover, book, and stay. First, we will begin rolling out our new content platform this year, ensuring the right hotel information is showing up in the right channels at the right time.

Speaker #2: Our hotels are also seeing efficiency gains through the use of automatic language translation and digital assistance that answer common guest questions, freeing up time for our hotel colleagues to focus on more value-added activities.

Elie Maalouf: Second, we are developing foundational AI-powered trip planning capabilities in partnership with Google, a key step in moving towards a more conversational search experience on IHG's owned websites and apps. Third, we are piloting new AI-powered marketing tools that are delivering meaningful improvement in click-through rates and ROI in initial testing. Fourth, we are refreshing our loyalty platforms and deploying a new AI-enhanced CRM platform this year that will help our hotels know their guests on a more personal level and drive deeper loyalty. I will touch on this and the content platform in more detail shortly. Together, these capabilities will strengthen our direct channels, bring more guests to our hotels, and keep our most loyal guests coming back. Turning to our second area, commercial optimization.

Speaker #2: Finishing with our third area, we are leveraging AI to drive cost efficiencies and transform how we deliver on our growth algorithm. By providing our colleagues with the latest technology, we're establishing new ways of working, automating routine tasks, and delivering insights across the business faster and more effectively.

Elie Maalouf: Finishing with our third area, we are leveraging AI to drive cost efficiencies and transform how we deliver on our growth algorithm. By providing our colleagues with the latest technology, we're establishing new ways of working, automating routine tasks, and delivering insights across the business faster and more effectively. As you heard Michael say earlier, this technology, together with process redesign and greater leverage of centralized support, is unlocking a more efficient, scalable cost base with step-change savings delivered in 2025 that are sustainable over the long term. Now, let's take a closer look at our new digital and AI-compatible hotel content platform. This platform, which we will begin deploying this year, will bring property features and attractions to life in new and exciting ways, with videos, 360-degree images, floor plans, virtual tours, automated language translation, and more.

Speaker #2: As you heard Michael say earlier, this technology together with process redesign and greater leverage of centralized support is unlocking a more efficient, scalable cost base with step-change savings delivered in 2025 that are sustainable over the long term.

Speaker #2: I will touch on this—and the content platform—in more detail shortly. Together, these capabilities will strengthen our direct channels, bring more guests to our hotels, and keep our most loyal guests coming back.

Speaker #2: Now, let's take a closer look at our new digital and AI-compatible hotel content platform. This platform, which we will begin deploying this year, will bring property features and attractions to life in new and exciting ways with videos, 360-degree images, floor plans, virtual tours, automated language translation, and more.

Elie Maalouf: Our new RMS, which builds upon our previous investment in GRS and leverages machine learning AI, is fully rolled out and achieving positive impact on owners' top-line performance in the form of revenue uplift and market share gains. Our hotels are also seeing efficiency gains through the use of automatic language translation and digital assistants that answer common guest questions, freeing up time for our hotel colleagues to focus on more value-added activities. Finishing with our third area, we are leveraging AI to drive cost efficiencies and transform how we deliver on our growth algorithm. By providing our colleagues with the latest technology, we're establishing new ways of working, automating routine tasks, and delivering insights across the business faster and more effectively.

Speaker #2: It will transform how we structure hotel content and strengthen the digital hooks needed for our hotels to be recommended by AI agents. It will also create new ways to combine and display information, unlocking greater flexibility in how content is created, delivered, and personalized.

Elie Maalouf: It will transform how we structure hotel content and strengthen the digital hooks needed for our hotels to be recommended by AI agents. It will also create new ways to combine and display information, unlocking greater flexibility in how content is created, delivered, and personalized. Importantly, this will create new advantages for IHG and our hotels as the search environment continues to evolve. To deepen loyalty, we are also making big advances to get more familiar with our guests, especially our most loyal guests. We are refreshing our loyalty platform and unifying our customer data with a new cloud-based CRM. We began the rollout of select functionality in 2025 and will continue scaling this in 2026.

Speaker #2: Our hotels are also seeing efficiency gains through the use of automatic language translation and

Speaker #1: And digital assistants that answer common guest questions , freeing up time for our hotel colleagues to focus on more value added activities . Finishing with our third area , we are leveraging AI to drive cost efficiencies in transform .

Speaker #2: Importantly, this will create new advantages for ISG and our hotels as the search environment continues to evolve. To deepen loyalty, we are also making big advances to get more familiar with our guests, especially our most loyal guests.

Speaker #1: How we deliver on our growth algorithm is by providing our colleagues with the latest technology, establishing new ways of working, automating routine tasks, and delivering insights across the business faster and more effectively, as you heard Michael say earlier.

Speaker #2: We are refreshing our loyalty platform and unifying our customer data with a new cloud-based CRM. We began the rollout of select functionality in 2025 and will continue scaling this in 2026.

Elie Maalouf: As you heard Michael say earlier, this technology, together with process redesign and greater leverage of centralized support, is unlocking a more efficient, scalable cost base with step-change savings delivered in 2025 that are sustainable over the long term. Now, let's take a closer look at our new digital and AI-compatible hotel content platform. This platform, which we will begin deploying this year, will bring property features and attractions to life in new and exciting ways, with videos, 360-degree images, floor plans, virtual tours, automated language translation, and more. It will transform how we structure hotel content and strengthen the digital hooks needed for our hotels to be recommended by AI agents. It will also create new ways to combine and display information, unlocking greater flexibility in how content is created, delivered, and personalized.

Speaker #1: This technology , together with process redesign and greater leverage of centralized support , is unlocking a more efficient , scalable cost base with step change savings delivered in 2025 that are sustainable over the long term Now , let's take a closer look at our new digital and AI compatible hotel content platform This platform , which we will begin deploying this year , will bring property , features and attractions to life in you and exciting ways with videos , 360 degree images , floor plans , virtual tours , automated language translation and more .

Speaker #2: This refresh will provide a seamless view of our customer throughout their ISG experience, whether they are engaging digitally, calling a customer care center, checking into one of our hotels, or requesting a copy of their bill post-checkout.

Elie Maalouf: This refresh will provide a seamless view of our customer throughout their IHG experience, whether they are engaging digitally, calling a customer care center, checking into one of our hotels, or requesting a copy of their bill post-checkout. Combined with AI, we will be able to anticipate their needs, personalize their experience, offer more relevant promotions and benefits, and extend loyalty rewards faster and more effectively. The loyalty platform evolution will bolster our customer acquisition capabilities, widen our competitive moat, and unlock the full potential from IHG One Rewards from an already strong base. In 2025, our IHG One Rewards membership base rose to more than 160 million members. This means it has grown approximately 60% since the program was relaunched, an outstanding achievement.

Speaker #2: Combined with AI, we will be able to anticipate their needs, personalize their experience, offer more relevant promotions and benefits, and extend loyalty rewards faster and more effectively.

Speaker #2: The loyalty platform evolution will bolster our customer acquisition capabilities, widen our competitive moat, and unlock the full potential from ISG One rewards, from an already strong base.

Speaker #1: It will transform how we structure hotel content and strengthen the digital hooks needed for our hotels to be recommended by AI agents . It will also create new ways to combine and display information , unlocking greater flexibility in how content is created , delivered and personalized Importantly , this will create new advantages for IG and our hotels as the search environment continues to evolve to loyalty .

Speaker #2: In 2025, our ISG One rewards membership base rose to more than 160 million members. This means it has grown approximately 60% since the program was relaunched, an outstanding achievement.

Elie Maalouf: Importantly, this will create new advantages for IHG and our hotels as the search environment continues to evolve. To deepen loyalty, we are also making big advances to get more familiar with our guests, especially our most loyal guests. We are refreshing our loyalty platform and unifying our customer data with a new cloud-based CRM. We began the rollout of select functionality in 2025 and will continue scaling this in 2026. This refresh will provide a seamless view of our customer throughout their IHG experience, whether they are engaging digitally, calling a customer care center, checking into one of our hotels, or requesting a copy of their bill post-checkout. Combined with AI, we will be able to anticipate their needs, personalize their experience, offer more relevant promotions and benefits, and extend loyalty rewards faster and more effectively.

Speaker #2: Globally, loyalty penetration is now approximately 66% of all room nights booked, growing by over 3 percentage points in each region, and it is highest in the US and America's overall at 73%.

Elie Maalouf: Globally, loyalty penetration is now approximately 66% of all room nights booked, growing by over 3 percentage points in each region, and it is highest in the US and Americas overall at 73%. Loyalty members spend more and are 10 times more likely to book direct, which drives enormous value for owners. Our engaged members are the ones driving this program growth. Reward night redemptions increased by 9% year on year, and there was 12% growth in the number of milestone rewards selected as we delivered value to our most frequent guests. Overall, the strength of IHG One Rewards, together with our industry-leading technology ecosystem and all the channels and sources we manage for our owners, is driving increased total enterprise contribution that provides hotels with 83% of all the rooms revenue booked.

Speaker #1: We are also making big advances to get more familiar with our guests, especially our most loyal guests. We are refreshing our loyalty platform and unifying our customer data with a new cloud-based CRM. We began the rollout of select functionality in 2025 and will continue scaling this in 2026.

Speaker #2: Loyalty members spend more, and are 10 times more likely to book direct, which drives enormous value for owners. And our engaged members are the ones driving this program growth, reward night redemptions increased by 9% year on year, and there was 12% growth in the number of milestone rewards selected, as we delivered value to our most frequent guests.

Speaker #1: This refresh will provide a seamless view of our customer throughout their IG experience , whether they are engaging digitally , calling a customer care center , checking into one of our hotels , or requesting a copy of their bill post checkout Combined with AI , we will be able to needs , personalize their experience , offer more relevant promotions and benefits , and extend loyalty rewards faster and more effectively .

Speaker #2: Overall, the strength of ISG One rewards together with our industry-leading technology ecosystem and all the channels and sources we manage for our owners is driving increased total enterprise contribution that provides hotels with 83% of all the rooms' revenue booked.

Speaker #1: The loyalty platform evolution will bolster our customer acquisition capabilities, widen our competitive moat, and unlock the full potential from IHG One Rewards from an already strong base. In 2025, our IHG One Rewards membership base rose to more than 160 million members.

Elie Maalouf: The loyalty platform evolution will bolster our customer acquisition capabilities, widen our competitive moat, and unlock the full potential from IHG One Rewards from an already strong base. In 2025, our IHG One Rewards membership base rose to more than 160 million members. This means it has grown approximately 60% since the program was relaunched, an outstanding achievement. Globally, loyalty penetration is now approximately 66% of all room nights booked, growing by over 3 percentage points in each region, and it is highest in the US and Americas overall at 73%. Loyalty members spend more and are 10 times more likely to book direct, which drives enormous value for owners. And our engaged members are the ones driving this program growth.

Speaker #2: This is generating more high-quality revenue for owners, lowering their costs, and enhancing their returns. Now, an update on our valuable ancillary fee streams driven by the strength of ISG One rewards and our powerful brand portfolio and enterprise platform.

Elie Maalouf: This is generating more high-quality revenue for owners, lowering their costs, and enhancing their returns. Now, an update on our valuable ancillary fee streams driven by the strength of IHG One Rewards and our powerful brand portfolio and enterprise platform. We've said before that our loyalty members are our most valuable guests, spending more and booking direct. Our co-brand credit card holders stay even more frequently and spend even more in our hotels. In 2025, the number of US co-brand card members saw high single-digit percentage growth, alongside a comparable uplift in total card spend as we delivered more rewards to more cardholders. The continued growth in the program, together with the new agreements between IHG and our US issuing and financial services partners, is driving the step change in co-brand credit card fees that Michael spoke about earlier.

Speaker #2: We've said before, there are loyalty members who are our most valuable guests, spending more and booking direct. Our co-brand credit card holders stay even more frequently and spend even more on our hotels.

Speaker #1: This means it has grown approximately 60% since the program was relaunched . And outstanding achievement globally . Loyalty penetration is now approximately 66% of all room nights booked , growing by over three percentage points in each region , and it is highest in the US in Americas overall at 73% .

Speaker #2: In 2025, the number of US co-brand card members saw high single-digit percentage growth, alongside a comparable uplift in total card spend as we delivered more rewards to more card holders.

Speaker #1: Loyalty members spend more and are ten times more likely to book direct, which drives enormous value for owners, and our members are the ones driving this program.

Speaker #2: The continued growth in the program, together with the new agreements between IHG and our US-issuing and financial services partners, is driving the step-changing co-brand credit card fees that Michael spoke about earlier.

Speaker #1: Growth Reward night redemptions increased by 9% year on year , and there was 12% growth in the number of milestone rewards selected . As we delivered value to our most frequent guests Overall , the strength of IG one rewards together with our industry leading technology ecosystem and all the channels and sources we manage for our owners , is driving increased total enterprise contribution that provides hotels with 83% of all the room's revenue booked .

Elie Maalouf: Reward night redemptions increased by 9% year on year, and there was 12% growth in the number of milestone rewards selected as we delivered value to our most frequent guests. Overall, the strength of IHG One Rewards, together with our industry-leading technology ecosystem and all the channels and sources we manage for our owners, is driving increased total enterprise contribution that provides hotels with 83% of all the rooms revenue booked. This is generating more high-quality revenue for owners, lowering their costs, and enhancing their returns. Now, an update on our valuable ancillary fee streams, driven by the strength of IHG One Rewards and our powerful brand portfolio and enterprise platform. We've said before that our loyalty members are our most valuable guests, spending more and booking direct. Our co-brand credit card holders stay even more frequently and spend even more in our hotels.

Speaker #2: We're also excited to announce that we have recently agreed a new UK co-brand debit card partnership with Revolut, alongside Visa, with card products scheduled to be launched later this year.

Elie Maalouf: We're also excited to announce that we have recently agreed a new UK co-brand debit card partnership with Revolut, alongside Visa, with card products scheduled to be launched later this year. Further co-brand opportunities in priority growth markets are targeted for future years. Turning to point sales, we are very pleased with the growth of ancillary fees as consumers engage with IHG One Rewards while buying and redeeming points across our global estate. We expect this product and fee stream to continue growing in the future as our loyalty program and system size expand further. Finally, we continue to see meaningful fee growth potential from branded residential developments. The number of properties in this industry segment is forecast to approximately double by 2032, and our industry-leading luxury and lifestyle brands give us an advantageous position to capture that growth.

Speaker #2: Further co-brand opportunities and priority growth markets are targeted for future years. Turning to point sales, we are very pleased with the growth of ancillary fees as consumers engage with ISG One rewards while buying and redeeming points across our global estate.

Speaker #1: This is generating more high quality revenue for owners , lowering their costs and enhancing their returns Now , an update on our valuable ancillary fee streams driven by the strength of IG one , rewards and our powerful brand portfolio and enterprise platform We've said before that our loyalty members are our most valuable guests , spending more and booking direct Our Co-brand credit card holders stay even more frequently and spend even more on our hotels In 2025 , the number of us co-brand card members saw high single digit percentage growth alongside a comparable uplift in total card spend .

Speaker #2: We expect this product and fee stream to continue growing in the future as our loyalty program and system size expand further. Finally, we continue to see meaningful fee growth potential from branded residential developments.

Speaker #2: The number of properties in this industry segment is forecast to approximately double by 2032, and our industry-leading luxury and lifestyle brands give us an advantageous position to capture that growth.

Elie Maalouf: In 2025, the number of US co-brand card members saw high single-digit percentage growth, alongside a comparable uplift in total card spend as we delivered more rewards to more cardholders. The continued growth in the program, together with the new agreements between IHG and our US issuing and financial services partners, is driving the step change in co-brand credit card fees that Michael spoke about earlier. We're also excited to announce that we have recently agreed a new UK co-brand debit card partnership with Revolut, alongside Visa, with card products scheduled to be launched later this year. Further co-brand opportunities in priority growth markets are targeted for future years. Turning to point sales, we are very pleased with the growth of ancillary fees as consumers engage with IHG One Rewards while buying and redeeming points across our global estate.

Speaker #2: We currently have more than 30 open or selling projects in the market across 15-plus countries and more in the pipeline. Fees earned by ISG from branded residences increased in 2025, benefiting from strong sales at six census Dubai Marina.

Elie Maalouf: We currently have more than 30 open or selling projects in the market across 15+ countries and more in the pipeline. Fees earned by IHG from branded residences increased in 2025, benefiting from strong sales at Six Senses Dubai Marina. Signings in 2025 for future branded residences developments included Six Senses Miyako, Japan, and two in Thailand at the InterContinental Phuket Resort and the InterContinental Residences, Bangkok Asoke. Further fee growth is expected to be substantial in 2027 and beyond, as more of the current residential units under development are sold, and as we continue to leverage the global reach and potential of our luxury and lifestyle brands.

Speaker #1: As we delivered more rewards to more cardholders . The continued growth in the program , together with the new agreements between IHG and our US issuing and financial services partners , is driving the step change in Co-brand credit card fees that Michael spoke about earlier We're also excited to announce that we have recently agreed a new UK Co-brand debit card partnership with Revolut , alongside visa , with card products scheduled to be launched later this year Further , Co-brand opportunities in priority growth markets are targeted for future years .

Speaker #2: Signings in 2025 for future branded residences developments included six census Miyoko Japan, and two in Thailand at the Intercontinental Phuket Resort and the Intercontinental Residences Bangkok Asoke.

Speaker #2: Further fee growth is expected to be substantial in 2027 and beyond, as more of the current residential units under development are sold, and as we continue to leverage the global reach and potential of our luxury and lifestyle brands.

Speaker #1: Turning to point sales. We are very pleased with the growth of ancillary fees as consumers engage with IHG One Rewards, while buying and redeeming points across our global estate.

Speaker #2: To conclude, we are very pleased with the strength of our financial performance, the growth of our brands, and progress made in 2025 against a clear strategy that is unlocking the full potential of our business for all stakeholders.

Elie Maalouf: To conclude, we are very pleased with the strength of our financial performance, the growth of our brands, and progress made in 2025 against a clear strategy that is unlocking the full potential of our business for all stakeholders. The strong performance went beyond the growth algorithm, delivering RevPAR growth of 1.5%, net system size growth of 4.7%, and 360 basis points of fee margin expansion. We returned over $1.1 billion to shareholders, and this culminated in adjusted EPS growth of 16%.

Speaker #1: We expect this product and fee stream to continue growing in the future as our loyalty program and system size expand further. Finally, we continue to see meaningful fee growth potential from branded residential developments.

Elie Maalouf: We expect this product and fee stream to continue growing in the future as our loyalty program and system size expand further. Finally, we continue to see meaningful fee growth potential from branded residential developments. The number of properties in this industry segment is forecast to approximately double by 2032, and our industry-leading luxury and lifestyle brands give us an advantageous position to capture that growth. We currently have more than 30 open or selling projects in the market across 15+ countries and more in the pipeline. Fees earned by IHG from branded residences increased in 2025, benefiting from strong sales at Six Senses Dubai Marina. Signings in 2025 for future branded residences developments included Six Senses Miyako, Japan, and two in Thailand at the InterContinental Phuket Resort and the InterContinental Residences Bangkok Asoke.

Speaker #2: The strong performance went beyond the growth algorithm, delivering RevPAR growth of 1.5%, net system size growth of 4.7%, and 360 basis points of fee margin expansion.

Speaker #1: The number of properties in this industry segment is forecast to approximately double by 2032, and our industry-leading luxury and lifestyle brands give us an advantageous position to capture that growth.

Speaker #2: We returned over $1.1 billion to shareholders, and this culminated in adjusted EPS growth of 16%. We remain confident in our ability to continue delivering the growth algorithm on average over the medium to long term driven by high single-digit fee revenue growth, 100 to 150 basis points of margin expansion per annum from operating leverage, approximately 100% adjusted earnings converting into free cash flow, sustainable dividend growth, returning surplus capital to shareholders while targeting financial leverage between 2.5 and 3 times, and ultimately delivering 12 to 15% adjusted EPS growth as a compound annual growth rate.

Speaker #1: We currently have more than 30 open or selling projects in the market across 15 plus countries , and more in the pipeline Fees earned by IHG from branded residences increased in 2025 , benefiting from strong sales at Six Senses Dubai Marina signings in 2025 for future branded residences developments included Six Senses , Myoko , Japan , and two in Thailand at the Intercontinental Phuket Resort and the Intercontinental Residences Bangkok .

Elie Maalouf: We remain confident in our ability to continue delivering the growth algorithm on average over the medium to long term, driven by high single-digit fee revenue growth, 100 to 150 basis points of margin expansion per annum from operating leverage, approximately 100% adjusted earnings converting into free cash flow, sustainable dividend growth, returning surplus capital to shareholders while targeting financial leverage between 2.5 and 3 times, and ultimately delivering 12% to 15% adjusted EPS growth as a compound annual growth rate. And with that, we thank you for listening to our 2025 results presentation.

Speaker #1: Asoke, further fee growth is expected to be substantial in 2027 and beyond, as more of the current residential units under development are sold, and as we continue to leverage the global reach and potential of our luxury and lifestyle brands. To conclude, we are very pleased with the strength of our financial performance, the growth of our brands, and the progress made in 2025 against a clear strategy that is unlocking the full potential of our business for all stakeholders.

Elie Maalouf: Further fee growth is expected to be substantial in 2027 and beyond, as more of the current residential units under development are sold and as we continue to leverage the global reach and potential of our luxury and lifestyle brands. To conclude, we are very pleased with the strength of our financial performance, the growth of our brands, and progress made in 2025 against a clear strategy that is unlocking the full potential of our business for all stakeholders. The strong performance went beyond the growth algorithm, delivering RevPAR growth of 1.5%, net system size growth of 4.7%, and 360 basis points of fee margin expansion. We returned over $1.1 billion to shareholders, and this culminated in adjusted EPS growth of 16%.

Speaker #1: The strong performance went beyond the growth algorithm, delivering RevPAR growth of 1.5%. Net system size growth was 4.7%, and there was a 360 basis point fee margin expansion. We returned over $1.1 billion to shareholders, and this culminated in adjusted EPS growth of 16%.

Speaker #1: We remain confident in our ability to continue delivering the growth algorithm. On average, over the medium to long term, we're driven by high single-digit fee revenue growth and 100 to 150 basis points of margin expansion per annum from operating leverage.

Elie Maalouf: We remain confident in our ability to continue delivering the growth algorithm on average over the medium to long term, driven by high single-digit fee revenue growth, 100 to 150 basis points of margin expansion per annum from operating leverage, approximately 100% adjusted earnings converting into free cash flow, sustainable dividend growth, returning surplus capital to shareholders while targeting financial leverage between 2.5 and 3 times, and ultimately delivering 12% to 15% Adjusted EPS growth as a compound annual growth rate. With that, we thank you for listening to our 2025 results presentation.

Speaker #1: Approximately 100% of adjusted earnings, converting into free cash flow. Sustainable dividend growth, returning surplus capital to shareholders while targeting financial leverage.

Speaker #1: Between two and a half and three times, and ultimately delivering 12% to 15% adjusted EPS growth as a compound annual growth rate.

Speaker #1: And with that, we thank you for listening to our 2025 results presentation.

Speaker #2: Trust me, trust me with this.

Speaker #3: At IHG Hotels & Resorts, you can simply arrive or make an entrance, stick to the agenda or experience something unexpected with IHG's 20 hotel brands.

Michael Glover: At IHG Hotels & Resorts, you can simply arrive or make an entrance. Stick to the agenda or experience something unexpected. With IHG's 20 hotel brands, you can guest how you guest. At IHG Hotels & Resorts, you can guest a guest. Explore the neighborhood or live like a local at Hotel Indigo. Unplug for the day or plunge into a long weekend at a Holiday Inn. Take on Miami, Mexico City, Minneapolis, or any Holiday Inn Express destination. Choose from 20 IHG hotel brands and earn points for free nights with IHG One Rewards.

Speaker #3: You can guess how you guessed at IHG Hotels and Resorts . You can guess how you guessed Explore the neighborhood or live like a local at Hotel Indigo Unplug for the day or plunge into a long weekend at a Holiday Inn Take on Miami , Mexico City , Minneapolis , or any Holiday Inn Express destination Choose from 20 IHG hotel brands and earn points for free nights with IHG .

Speaker #3: One rewards

Operator: We will now begin the Q&A session. If you are listening by phone and would like to ask a question, please press star followed by one on your telephone keypad to raise your hand and join the queue. To withdraw your question, press the star one again. When called upon to ask your questions, please use your device handset and ensure you are not on mute. Again, that is star one to raise your hand, and I will now hand over to Elie Maalouf to introduce the Q&A session.

Speaker #4: We will now begin the Q&A session. If you are listening by phone and would like to ask a question, please press star followed by one on your telephone keypad.

Speaker #4: To raise your hand and join the queue . To withdraw your question , press the star one again . When called upon to ask your questions , please use your device handset and ensure you are not on mute .

Speaker #4: Again, that is *star one* to raise your hand, and I will now hand over to Elie Maalouf to introduce the Q&A session.

Speaker #5: Thank you and welcome to this Q&A session . I'm Elie Maalouf chief Executive Officer of Hotels and Resorts Hopefully you've all had a chance to watch the results presentation , which we made available at 7:00 UK time this morning It featured myself and Michael Glover , our chief Financial officer .

Elie Maalouf: Thank you, and welcome to this Q&A session. I'm Elie Maalouf, Chief Executive Officer of IHG Hotels & Resorts. Hopefully, you've all had a chance to watch the results presentation, which we made available at 7:00AM UK time this morning. It featured myself and Michael Glover, our Chief Financial Officer. Michael and I are in different locations today. Michael is at our headquarters in Windsor, and I am currently with our business in the US. So do bear with us as we coordinate sharing the questions. Before we open the line to take the first questions, I will briefly summarize our excellent performance in 2025. Our RevPAR grew by 1.5%, reflecting the breadth of our geographic footprint, the depth of our brands, and the resilience of our operating model.

Speaker #5: Michael and I are in different locations today Michael is at our headquarters in Windsor and I am currently with our business in the US So do bear with us as we coordinate sharing the questions before we open the lines to take the first questions .

Speaker #5: I will briefly summarize our excellent performance in 2025 . Our revenue grew by 1.5% , reflecting the breadth of our geographic footprint . The depth of our brands , and the resilience of our operating model We delivered gross system growth of 6.6% and net system growth of 4.7% , driven by outstanding development activity and record hotel openings We signed over 102,000 rooms across 694 hotels , a 9% increase with over 2024 .

Elie Maalouf: We delivered gross system growth of 6.6% and net system growth of 4.7%, driven by outstanding development activity and record hotel openings. We signed over 102,000 rooms across 694 hotels, a 9% increase with over 2024, when excluding the Ruby acquisition in 2025 and the Novum Hospitality agreement in 2024. We expanded our fee margin by 360 basis points, driven by operating leverage and step-ups in ancillary fee streams. EBIT grew 13%, and adjusted EPS grew 16%, supported by the completion of 2025's $900 million share buyback. In summary, we made excellent progress on our strategic priorities, and we are confident in the strength of our enterprise platform and the attractive long-term growth outlook.

Speaker #5: When excluding the Ruby acquisition in 2025 and the Novum Hospitality Agreement in 2024 . We expanded our fee margin by 360 basis points , driven by operating leverage and step ups in and salary fee streams Ebit grew 13% and adjusted EPs grew 16% , supported by the completion of 2025 , $900 million share buyback In summary , we made excellent progress on our strategic priorities and we are confident in the strength of our enterprise platform and the attractive long term growth outlook .

Speaker #5: Touching briefly on 2026, while it is very early in the year, we have seen and are pleased with the trading performance to date in all three regions.

Elie Maalouf: Touching briefly on 2026, while very early in the year, we have seen and are pleased with the trading performance to date in all three regions. We have also announced today a new $950 million share buyback program and formally launched our latest brand, Noted Collection. With that, let me turn it over to the operator to take the first question.

Speaker #5: We have also announced a new today , a new $950 million share buyback program and formally launched our latest brand , noted collection .

Speaker #5: And with that, let me turn it over to the operator to take the first question.

Speaker #4: Thank you, Elie. Your first question comes from the line of Richard Clark of Bernstein. Please go ahead.

Operator: Thank you, Elie. Your first question comes from the line of Richard Clarke of Bernstein. Please go ahead.

Speaker #6: Hi . Ellie . Hi , Michael . Thanks for taking my questions . If I'm allowed , I'll do three . I guess if I look back at 20 , 25 , if I was to strip out the the cost savings and the boost on card revenues and points revenues , I think your EPs would have grown off algorithm about somewhere in the mid single digits .

Richard Clarke: Hi, Elie. Hi, Michael. Thanks for taking my questions. If I'm allowed, I'll do three. I guess, if I look back at 2025, if I was to strip out the cost savings and the boost on card revenues and points revenues, I think your EPS would have grown off algorithm about somewhere in the mid-single digits. Appreciate it wasn't the best RevPAR year. If RevPAR doesn't play ball in 2026 or going forward, do you have other levers to pull to kind of make sure you hit your algorithm?

Speaker #6: Preciate . Wasn't the best rev par year . If Repar doesn't play ball in 2026 or going forward , do you have do you have other levers to pull to kind of make sure you hit your algorithm I guess second question , you said a couple of times , Michael , that there's some key money that's being deferred into the first quarter of 2026 , just the scope of that .

Michael Glover: ... I guess second question, you said a couple of times, Michael, that there's some key money that's been deferred into Q1 2026. Just the scope of that, and whether that should make us quite optimistic about unit growth, and sort of luxury unit growth in 2026. And then thirdly, I think there was your margins down in China. You made a comment about improving unit economics or owner returns in China. I guess Holiday Inn Express now a $22 RevPAR brand in China. I don't think you'd open a $22 RevPAR brand in the US. So do you need to improve those RevPAR numbers? Do you need to improve owner returns? Does the brand work at that level of RevPAR?

Speaker #6: And whether that should make us quite optimistic about unit growth and, sort of, luxury unit growth in 2026. And then, thirdly, I think there was your margins down in China.

Speaker #6: You made a comment about improving unit economics or owner returns in China. I guess Holiday Inn Express now has about $22 RevPAR per brand in China.

Speaker #6: I don't think you'd open a $22 RevPAR brand in the U.S., so do you need to improve those RevPAR numbers?

Speaker #6: Do you need to improve owner returns? Does the brand work at that level of repair?

Speaker #5: Thank you, Richard. I'll take your key money question first, and then I'll turn over to the fee. Margin triangulation—while I'll touch on it briefly.

Elie Maalouf: Thank you, Richard. I'll take the key money question first, and then I'll turn over the fee margin triangulation, while I'll touch on it briefly, then hand over to Michael for some details and turn over to him the margin question on China. So first on key money. As you saw in Michael's presentation, we have been very prudent and thoughtful deployers of capital across a range of places and manners in which we deploy capital, whether it's key money, recyclable, maintenance, and of course, our capital returns to shareholders. If you go back over an extended period of time, our capital has been fundamentally stable, up some years, down some years, because some of it's lumpy, but it's been pretty stable. While our revenues and profits have grown significantly, something we're very pleased with.

Speaker #5: Then hand over to Michael for some details and turn over to him . The margin question on China . So first on key money , as you saw in Michael's presentation , we have been very prudent and thoughtful deployers of capital across a range of of places .

Speaker #5: We and manners in which we deploy capital , whether it's qi , money or recyclable maintenance and of course , our capital returns to shareholders .

Speaker #5: If you go back over an extended period of time , our capital has been fundamentally stable up some years , down some years , because some of it's lumpy , but we it's been pretty stable .

Speaker #5: While our revenues and profits have grown significantly , something we're very pleased with . But some of these investments , whether it's Qi money , or they're recyclable , can be lumpy instead of happening towards the end of one year .

Elie Maalouf: But some of these investments, whether it's key money, whether recyclable, can be lumpy. Instead of happening towards the end of one year, they happen in the other. So we're flagging that some of it may roll over from 25 into 26, but then you never know what rolls over from 26 to 27. Nonetheless, we are confident in the growth track record that we have. Our 4.7 system size growth in 2025 is the fourth year of acceleration, our best in 6 years. Our signings were strong, as you can see, up 9%. Our pipeline grew 4.4%. Our openings were strong at 10%. And that just shows that we have a lot of firepower. Now we have more brands with Noted Collection being announced today.

Speaker #5: They may happen in the other. So we're flagging that some of it may roll over from '25 into '26, but then you never know what rolls over from '26 to '27.

Speaker #5: Nonetheless , we are confident in the growth track record that we have our 4.7in system size growth in 2025 is the fourth year of acceleration our six our best in six years .

Speaker #5: Our signings were strong . As you can see , up 9% . Our pipeline grew 4.4% . Our openings were strong at 10% .

Speaker #5: And that just shows that we have a lot of firepower now. We have more brands, with Noted Collection being announced today. We're not putting a ceiling on our growth potential for 2026.

Elie Maalouf: We're not putting a ceiling on our growth potential for 2026. The consensus is 4.4. I would say there's more upside than downside to that number, but we're comfortable with it where it sits, and we think we have even more potential to continue to accelerate that system size growth. Michael will touch on the fee triangulation for 2025, before he takes on the China margin thing. Look, we have a lot of confidence in our trajectory in China. I've been saying for 2 years now that China is bottoming out, bottoming out gradually. It turned out to actually be true at some point, right? And we saw it gradually bottom out in 2025, quarter after quarter. Turned positive in Q4.

Speaker #5: The consensus is 4.4. I would say there’s more upside than downside to that number. But we’re comfortable with it where it sits, and we think we have even more potential to continue to accelerate that system size growth.

Speaker #5: Michael will touch on the fee triangulation for 2025 before he takes on the China margin thing. Look, we have a lot of confidence in our trajectory in China.

Speaker #5: I've been saying for two years now that China is bottoming out gradually. It turned out to actually be true at some point.

Speaker #5: Right . And we saw it gradually bottom out in 2025 , quarter after quarter turned positive in the fourth quarter . Indications are that that will continue in the first quarter of 2026 and into the year .

Elie Maalouf: Indications are that will continue in Q1 2026 and into the year. We have a bigger system now with over 880 hotels open, over 550 under development, record signings and openings again. The economics, at a general level, Michael will take you through the details. Our economics work across our brands. We had strong signings, strong performance, strong openings of Express in China last year, where we keep the full economics. Economics work for our owners. Now, different tier markets have different, have different, you know, rates, as you know. But because of the very strong openings that we have, that RevPAR is also influenced by the ramp up, right? So many of those hotels are new in the year in China. Express is our fastest growing brand.

Speaker #5: We have a bigger system now with over 880 hotels open , over 550 under development , record signings and openings again , and the economy at a general level , Michael will take you through the details .

Speaker #5: Our economics work across our brands at strong signings, strong performance, strong openings of Express in China last year, where we keep the full economics. Economics work for owners.

Speaker #5: Now different markets have different , have different . You know , rates , as you know , but because of the very strong openings that we have that red bars are also influenced by the ramp up .

Speaker #5: Right . So many of those hotels are are new in the year in China expresses our fastest growing brand . It was our latest growing brand to the one that started growing .

Elie Maalouf: It was our latest growing brand, too. The one that started growing the latest, if we started with Holiday Inn, Crowne Plaza, and InterContinental. So a lot of these brands are still in ramp up, and some of them, in fact, some of the hotels are still ramping up post-pandemic. So I think that that is influencing the RevPAR. If you look at the RevPAR in total in China, it's about half of where it is in the US, which, you know, is a good place to be for a GDP that's per capita; it's probably an eighth of what it is in the US, right? So you actually see leverage on the RevPAR from the GDP per capita.

Speaker #5: The latest because we started with Holiday Inn and Crowne Plaza and Intercontinental . So a lot of these brands are still in ramp up , and some of them , in fact , some of those hotels are still ramping up post-pandemic .

Speaker #5: So I think that that is influencing the referee . If you look at the red part in total in China , it's about half of where it is in the US , which you know , is a good place to be for a GDP .

Speaker #5: That per capita is probably an eighth of what it is in the US, right? So you actually see leverage on the red bar from the GDP per capita and an economy that’s growing at 5%.

Elie Maalouf: An economy that's growing at 5%, a technology sector that, you know, is actually competitive with the US technology sector, leaders in renewables, leaders in many industries. Exports, again, had a record last year. We're confident in the Chinese economy. We're confident in our business in China. We're confident in how our hotels are going to perform in China. Michael, over to you.

Speaker #5: A technology sector that , you know , is actually competitive with the US technology sector leaders in in renewables , leaders in many industries , exports again at a record last year .

Speaker #5: We're confident in the Chinese economy. We're confident in our business in China. We're confident in how our hotels are going to perform in China.

Speaker #5: Michael, over to you.

Speaker #7: Thanks , Ellie . Yeah . Let me Richard let me first go to your first question on kind of 2025 and earnings per share without the ancillaries and cost savings , I guess the first thing I would say there is the ancillaries are not going to stop growing .

Michael Glover: Thanks, Elie. Yeah, let me, Richard, let me first go to your first question on kind of 2025 and earnings per share, without the ancillaries and cost savings. I guess the first thing I would say there is the ancillaries are not going to stop growing. And so, if you look at what we've said, kind of moving forward, while we don't have the step-ups next year, we do see strong growth there and at a rate in the double digits above 10%. So we do still see that, moving forward. The second thing around cost, you know, obviously, you know, we've talked about this a bit at the half year.

Speaker #7: And so if you look at what we've said , kind of moving forward , while we don't have the step ups next year , we do see strong growth there .

Speaker #7: And at a rate in the double digits above 10% . So we do still see that moving forward . The second thing around cost , you know , obviously , you know , we've talked about this a bit at the half year .

Speaker #7: You know, when Ellie and I came in, we really started to focus and look at how we could look at this cost base, and how we could change the curve, and change, and really be able to take more dollars of revenue to the bottom line.

Michael Glover: You know, when Elie and I came in, we really started to focus and look at how we could look at this cost base and how we could change the curve and really be able to take more dollars of revenue to the bottom line. And obviously, you've seen us do that in 2025, with costs being down about 3%. Now next year, we're in 2026, what we're looking at is that being coming back and being around an increase of 1%, but still having some of that savings come through that we've been doing with our programs. And so we still feel like we'll have strong cost control as we move into 2026.

Speaker #7: And obviously , you've seen us do that In in 2025 , with costs being down about 3% now , next year we're in 2026 .

Speaker #7: What we're looking at is that being coming back and being around an increase of 1%, but still having some of that savings.

Speaker #7: Come through that we've been doing with our programs. And so we still feel like we'll have strong cost control as we move into 2026.

Speaker #7: And then I think the other thing that we also mentioned at the half year was really around the fee triangulation, where I think we talk about—many of you will know—where you look at rupture and system size and look at them.

Michael Glover: And then I think the other thing that we also mentioned at the half year was really around the fee triangulation, where I think we talk about, and, and many of you will know, where you look at RevPAR and system size and look at then fee revenue growth. And we mentioned kind of a few things that were really impacting us in 2025. First and foremost, which is a really - it's a good thing, is that we've had record number of openings. And obviously, as those hotels open, they, they're not fully ramped, so you don't get the fee income as quickly as you would normally, because you're actually accelerating those openings. So it's not normalized yet year over year, and so you're having a bit of that impact in there as well.

Speaker #7: Fee revenue growth . And we mentioned kind of a few things that were really impacting us in in 2025 . First and foremost , which is a really it's a good thing is that we've had record number of openings and obviously as those hotels open , they're not fully ramped .

Speaker #7: So you don't get the fee income as quickly as you would normally, because you're actually accelerating those openings. So it's not normalized yet year over year.

Speaker #7: And so you're having a bit of that impact in there as well. We also mentioned we have a large number of hotels under renovation that obviously has a fee impact.

Michael Glover: We also mentioned we have a large number of hotels under renovation. That obviously has a fee impact as those hotels close and renovate and then come open, again. And then the third thing was, we mentioned at the half year, was that we had a few, large exits, particularly, you know, two hotels in New York, where the replacement hotel hasn't come in, but will be coming in and ramping up soon. So that's, that's affected that fee, triangulation and fee growth in the Americas. So we expect that to normalize as we move into this year and not have some of those effects. The other effect is you have, you know, the Novum hotels who came in, and are in the process of ramping up. That was a large impact, as they...

Speaker #7: As those hotels close and renovate . And then come open again . And then the third thing was we mentioned at the half year was that we had a few large exits , particularly , you know , two hotels in New York where the replacement hotel hasn't come in .

Speaker #7: But we'll be coming in and ramping up soon . So that's that's affected that fee triangulation and fee growth in the Americas . So we expect that to normalize as we move in into this year and not have some of those effects .

Speaker #7: The other effect is you have , you know , the hotels who came in and are in the process of ramping up . That was a large impact as they because a large set of hotels have come in over the last year or so and then , you know , some smaller things like you had one less day with a leap year this year .

Michael Glover: Because a large set of hotels have come in over the last year or so. And then, you know, some smaller things, like you had one less day with leap year this year. So a few smaller things there. I think we feel confident over the medium to long term, we can still get back to our growth algorithm, and that's still gonna grow. I think what we showed this year is really the breadth of our organization and how we can actually, even in a turbulent time, as we've said, we can still deliver that growth algorithm, and we feel confident that we can continue to do that. And, and just - I'll just add to Elie's key money point.

Speaker #7: So, a few smaller things there. I think we feel confident over the medium to long term. We can still get back to our growth algorithm.

Speaker #7: And that's still going to grow . I think what we showed this year is really the breadth of our organization , organization and how we can actually , even in a turbulent time , as as we've said , we can still deliver that growth algorithm and we feel confident that we can continue to do that .

Speaker #7: And just I'll just add to Ellie's key money point , you know , it is lumpy and and certainly we have not changed that guidance at all , that we're going to be in that 200 to 250 million range .

Michael Glover: You know, it is lumpy, and, and certainly, we have not changed that guidance at all, that we're gonna be in that GBP 200 to 250 million range, so same as what we said last year. And that overall capital will, will, be around that GBP 350 million a year mark. So we'll continue with that guidance and, and view there. In terms of China, the margin was down very slightly, and, but yet overall profit was still up by GBP 1 million. So overall, a good result in a year where you had RevPAR negative. And so I think as we go forward, you know, we, we've talked about, and been saying for quite some time, that China RevPAR is bottoming out.

Speaker #7: So same as what we said last year . And that overall capital will will be around that 350 million a year mark . So we'll continue with that guidance .

Speaker #7: In view . There . In terms of China , the margin was down very slightly . And but yet overall profit was still up by 1 million .

Speaker #7: So overall a good result in a year where you had negative . And so I think as we go forward , you know , we've talked about and been saying for quite some time that China Repar is bottoming out and we really saw that happen throughout the year with the fourth quarter actually turning positive , 1.1% .

Michael Glover: And we really saw that happen throughout the year, with the fourth quarter actually turning positive, 1.1%. And as Ellie mentioned, we're really pleased with how RevPAR is starting to shape up in Q1. You know, we mentioned last year at the Q3 announcements, we felt like Q4 could, sorry, Q1 into 2026 might look negative because of, you know, some of the tougher comps. As we sit here today, it looks like all three regions will be positive, and that includes China. And so, you know, early trading indicating that it looks good. So let me pass back to Ellie and just see if he wants to add anything on there.

Speaker #7: And as Ellie mentioned , we're really pleased with how Repar is starting to shape up in Q1 . You know , we mentioned last year at the at the Q3 announcements , we felt like Q4 could or sorry , Q1 into 2026 might look negative because of , you know , some of the tougher comps as we sit here today , it looks like all three regions will be positive , and that includes China .

Speaker #7: And so, you know, early trading indicating that it looks good. So let me pass back to Elie and just see if he wants to add anything on there.

Speaker #5: No Michael . That was great . And I just on those factors affecting the fee triangulation for 2025 . Just note that most of us are positive things , right ?

Elie Maalouf: No, Michael, that was great. Just on those factors affecting the fee triangulation for 2025, just note that most of those are positive things, right? You know, strong openings, way above the prior years', renovations, then all those other factors, whether it was a leap year or whatever, all those we start to comp against in a better way. So there were good factors in one end, and then, and then they become tailwinds as we go forward. Thank you, Richard.

Speaker #5: Fast . So you know , strong openings way above the prior years renovations . Then all those other factors , whether it was a leap year or whatever , all those we start to comp against in a better way .

Speaker #5: So they were good factors in one end, and then, and then they become tailwinds as we go forward. Thank you, Richard.

Speaker #4: And your next question comes from the line of Jafar Mystery of BNP Paribas. Please go ahead.

Operator: Your next question comes from the line of Jafar Mestari of BNP Paribas. Please go ahead.

Speaker #8: Hi . Good morning . I have two of those . Okay . The first one is just on the fee business overheads . Those $23 million of cost efficiencies in 25 .

Jaafar Mestari: Hi, good morning. I have two, if that's okay. The first one is just on the Fee Business overheads. Those $23 million of cost efficiencies in 2025, should we assume they were broad-based across the three regions, across central costs? Or was the restructuring this year particularly targeted in one region, thinking specifically Americas, were you able to flex the costs more in response to what's been a turbulent year? And then on credit card fees and ancillary fees in general, when you announced your two big renegotiations 18 months ago, loyalty point sales and then credit card fees, you were the only major global company to have something of that materiality going on, really.

Speaker #8: Should we assume there were broad-based cuts across the three regions, across central costs? Or was the restructuring this year particularly targeted in one region?

Speaker #8: Thinking specifically Americas , were you able to flex the costs more in response to what's been a turbulent year ? And then on credit card fees and ancillary fees in general , when you announced your two big renegotiations , 18 months ago , loyalty point sales and then credit card fees , you were the only major global company to have something of that materiality going on .

Speaker #8: Really , it looks like you were closing the gap with us peers who had historically more material contribution from those . And it's great that you're able to to to have a bit of a market to market with , with issuers that you're much stronger today , etc.

Jaafar Mestari: It looked like you were closing the gap with US peers who had historically more material contribution from those, and it's great that you're able to have a bit of a mark to market with issuers, that you're much stronger today, et cetera. But since then, we've now seen Hyatt last November, and then Marriott just last week, also announce their own major renegotiations, big explicit millions of dollars targets for increases in fee contributions over the next few years. My question is, once everyone's fully ramped up, so you've had your step-up, will continue to grow. They will have their step-up in the next 12, 18 months. When everyone's fully ramped up, where do you think that gap will be? Because historically, you were saying, "Well, we're a bit behind.

Speaker #8: . But since then we've , we've now seen hired last November and then Marriott just last week . Also announced their own major renegotiations , big explicit millions of dollars targets for for increased in fee contributions over the next few years .

Speaker #8: And my question is , once once everyone's fully ramped up . So you're you've had your step up . It will continue to grow .

Speaker #8: They will have their step up in the next 12 to 18 months, when everyone's fully ramped up. Where do you think that gap will be?

Speaker #8: Because historically you were saying , well , we're a bit behind . We can convince issuers and increase that and catch up . Where do you think that will be ?

Jaafar Mestari: We can convince issuers and increase debts and catch up." Where do you think that will be? Will the gap have closed over 36 months as everyone gets the renegotiations, or will it have just translated your level of ancillaries and their level of ancillaries, please?

Speaker #8: Will the gap have closed over 36 months as everyone gets their renegotiations, or will it have just translated your level of ancillaries and their level of ancillaries?

Speaker #8: Please ?

Speaker #5: Thank you . Let me take those questions . And Michael , of course , jump in and build on on that . So on the fee business costs , I think we just have to pull back and touch on what Michael said in his presentation earlier , what he mentioned when speaking to Richard's questions .

Elie Maalouf: Thank you, Jafar. Let me take those questions, and Michael, of course, jump in and build on that. So on the fee business cost, I think we just have to pull back and touch on what Michael said in his presentation earlier, what he mentioned when speaking to Richard's questions. We've always maintained a highly disciplined approach to cost management. If you look in the presentation, you know, our cost growth over a long period of time has been well below revenue and profit growth.

Speaker #5: We've always maintained a highly disciplined approach to cost management. If you look in the presentation, you know, our cost growth over a long period of time has been well below revenue and profit growth.

Speaker #5: But since Michael and I came in , we've taken a more philosophical view of how do we just shape the whole cost structure for the future , make it future ready , scalable , using technology , new processes , shared services , locations , and now artificial intelligence so we can continue in the future to grow revenues and profits at a much higher rate than cost .

Elie Maalouf: But since Michael and I came in, we've taken a more philosophical view of how do we just shape the whole cost structure for the future, make it future-ready, scalable, using technology, processes, shared services, locations, and now artificial intelligence, so we can continue in the future to grow revenues and profits at a much higher gradient than cost. This was not a reaction to last year, because actually we started our work, our strategic work, when he and I assumed our positions in 2023, and it took some time to redesign it strategically. We had outside help, we had inside teams. We had a long, you know, runway of work that we started deploying in 2024. We saw our cost growth in 2024 be only 1%.

Speaker #5: So this was not a reaction to last year because actually we started our work , our strategic work when he and I assumed our positions in 2023 and it took some time to really design it strategically , we had outside help .

Speaker #5: We had inside teams , we had a long , you know , runway of work that we started deploying in 2024 . You saw our cost growth in 2024 be only 1% .

Speaker #5: Then you saw cost reduction of up to -3% in 2025. So there's been a trajectory of us bringing in these initiatives in a thoughtful, strategic way, not a reaction to a market that was up or a market that was down.

Elie Maalouf: Then you saw, cost reduction of, up to minus 3% in 2025. So there's been a trajectory of us bringing in these initiatives in a thoughtful, strategic way, not a reaction to a market that was up or a market that was down. It's just really reshaping our cost base and our processes and our technology and taking advantage of new technologies like AI. So that is generally how we achieved the, the benefits of 2024 +1, 2025 -3. And we're saying that going forward, low or very low single digits is what would happen on average. It could be a little bit different from year to year, but, we're not actually done with the opportunities in cost efficiency as technology continues to give us more opportunity.

Speaker #5: It's just a really reshaping our cost base . And our processes and our technology and taking advantage of new technologies like AI . So that is generally how we achieve the benefits of 2024 plus one , 20 , 25 , minus three .

Speaker #5: And we're saying that, going forward, low or very low single digits is what would happen on average. It could be a little bit different from year to year, but we're not actually done with the opportunities in cost efficiency.

Speaker #5: As technology continues to give us more opportunity on the credit card fees... Look, I won't comment on what others have renegotiated, are renegotiating, or will renegotiate.

Elie Maalouf: On the credit card fees, look, I won't comment on what others have renegotiated, are renegotiating, will renegotiate. Those are questions for them, and we don't have the particulars of all their arrangements or where they plan to be in the future. What we do know is, we have a lot of upside and a lot of exciting upside. Maybe the most upside. I don't know about other businesses, but we believe we have a lot or maybe the most upside in the industry. We started delivering that in 2025 by doubling the fees and credit cards earned from 2023. Then we, you know, continue to be on the right track to triple it by 2028. We're not putting a ceiling on it whatsoever. We think it continues to grow from there.

Speaker #5: Those are questions for them. And we don't have the particulars of all their arrangements or where they plan to be in the future.

Speaker #5: What we do know is we we have a lot of upside and a lot of exciting upside . Maybe the most upside I don't know about other businesses , but we believe we have a lot .

Speaker #5: Or maybe the most upside in the industry. And we started delivering that in 2025 by doubling the fees and credit cards earned from 2023.

Speaker #5: And then we, you know, continue to be on the right track to triple by 2028. We're not putting a ceiling on it whatsoever.

Speaker #5: We think it continues to grow from there . And I think that the as we grow our system , number of hotels , as we grow our membership and actually won awards is now 160 million members .

Elie Maalouf: I think that as we grow our system, number of hotels, as we grow our membership, and IHG One Rewards is now 160 million members, at a fast growth rate from 145. As we grow the engagement of our guests, it's not really how many members you have, it's how engaged they are. And now we're at 66% of our members constituting, you know, our nightly stays, 72, 73 in the United States. So we're right up there in the industry. So we've got more members, they're more engaged, they're spending more, they're taking out more credit cards. Our sign-ups are up double digits for cards, and that is all fueling, you know, our growth in card fees, and that will continue. We don't see a ceiling to it. How it compares to others?

Speaker #5: At a fast growth rate from 145. As we grow the engagement of our guests, it's not really how many members you have; it's how engaged they are.

Speaker #5: And now we're at 66% of our members constituting , you know , our nightly stays , 72 , 73 in the United States .

Speaker #5: So we're right up there in the industry . So we've got more members , they're more engaged . They're spending more . They're taking out more credit cards .

Speaker #5: Our sign ups are up double digits for cards . And that is all fueling , you our growth in card fees . And that will continue .

Speaker #5: We don't see a ceiling to it . How it compares to others . I'm confident it will compare very favorably to others and frankly , the more potential others reveal , the higher our ceiling goes .

Elie Maalouf: I'm confident it will compare very favorably to others. And frankly, the more potential others reveal, the higher our ceiling goes. So I'm not, I'm not discouraged by what others are doing. In fact, it encourages me.

Speaker #5: So, I'm not discouraged by what others are doing. In fact, it encourages me.

Speaker #8: Super . Thank you .

Jaafar Mestari: Super. Thank you.

Speaker #7: Ellie, can I just... yeah. Let me...

Michael Glover: Elie, can I just,

Elie Maalouf: Michael, do you want to come in on the credit card?

Michael Glover: Yeah, let me just... Yeah, let me, let me jump in on both of those, actually. Jafar, you know, great question on the overheads, and Elie mentioned it is broad-based, but he also mainly covered the P&L. I'd say we've also done this within the System Fund as well, because that gives us more firepower as well. So actually, in terms of total dollars, we've saved more as a part of this program in the System Fund than we have in the P&L, which is actually great because it allows us to reinvest and go after things that drive revenue. Then if you look at kind of by region and it being broad-based, it was across every region and every function within IHG, but we also had investment, and I think that's important to note as well.

Speaker #9: Just .

Speaker #7: Yeah . Let me let me jump in on both of those actually . And and you know , great question on the overheads .

Speaker #7: And Elie mentioned it is broad-based, but he also mainly covered the P&L. And I'd say we've also done this within the system fund as well, because that gives us more firepower as well.

Speaker #7: And so, actually, in terms of total dollars, we've saved more as a part of this program in the system fund than we have in the P&L, which is actually great because it allows us to reinvest and go after things that drive revenue.

Speaker #7: And then, if you look at it kind of by region and being broad-based, it was across every region and every function within ISG.

Speaker #7: But we also had investment . And I think that's important to note as well . Certainly , you know , we had the investment about integrating Ruby come in in the NBA .

Michael Glover: Certainly, you know, we had the investment about integrating Ruby coming in the EMEAA. That's why you might see some of the, the costs a little, not as, not as, as much down in EMEAA. Actually, I think it was slightly, slightly up. But we're also investing in places like India, and I think that's really important, that it's not just about cost, cost reduction, it's about investing our dollars where we can get the most growth in the future and repurposing those dollars. And that's what we want to do, because we've said many, many times our biggest risk is not capturing our share of that growth in the future, because this is a growth industry. It's an industry that's going to achieve higher highs and higher lows, and we want to be a part of that.

Speaker #7: That's why you might see some of the the costs a little . Not as not as as much down in EMEA actually . I think it was slightly slightly up .

Speaker #7: But we are also investing in places like India, and I think that's really important—that it's not just about cost reduction. It's about investing our dollars where we can get the most growth in the future.

Speaker #7: And repurposing those dollars. And that's what we want to do, because we've said many, many times, our biggest risk is not capturing our share of that growth in the future, because this is a growth industry.

Speaker #7: It's an industry that's going to achieve higher highs and higher lows, and we want to be a part of that. We want to participate.

Michael Glover: We want to participate, we want to compete in that. On the credit card fees, the only thing I'd add there is we announced a new credit card, Revolut, a deal here in the UK with Revolut. We have more countries we can go to. Now, it doesn't bring the quantum for sure, that the US does, and it's much smaller, but that just shows the power of the loyalty program. As it grows, we have more opportunity in different countries around the world to continue to launch that. It's great to launch one here in the UK, and we're in the process of launching others around the world as we get those agreements done, we'll let you know about them.... I'll pass it back to you, Michael, you were there.

Speaker #7: We want to that . On the credit card fees . The only thing I'd add there is we announced a new credit card , Revolut , a deal here in the UK with Revolut , we have more countries .

Speaker #7: We can go to now. It doesn't bring the quantum for sure that the US does, and it's much smaller, but that just shows the power of the loyalty program as it grows.

Speaker #7: We have more opportunity in different countries around the world to continue to launch that. It's great to launch one here in the UK, and we're in the process of launching others around the world.

Speaker #7: And as we get those agreements done, we'll let you know about them. I'll pass it back to you. Thank you for the

Speaker #5: Thank you , Michael . Thank you . Jennifer , I'll just add that in addition to credit cards and our ancillaries , let's not forget our point sales business , which grows very nicely and also has no ceiling to it .

Elie Maalouf: Thank you, Michael. Thank you, Jeff. I'll just add that in addition to credit cards and our ancillaries, let's not forget our point sales business, which grows very nicely and also has no ceiling to it, and our emerging and rapidly growing branded residencies, all of which, you know, are high margin accretive to our bottom line. Next call. Next question.

Speaker #5: And our emerging and rapidly growing branded residence fees , all of which , you know , are high margin accretive to our bottom line .

Speaker #5: Next call, next question.

Speaker #4: Yeah. Next question comes from the line of Jamie Rollo of Morgan Stanley. Your line is open.

Operator: Your next question comes from the line of Jamie Rollo of Morgan Stanley. Your line is open.

Jamie Rollo: Thanks. Morning, everyone. Three questions, two, please. First, just on that branded residence income, I don't think you've quantified it yet. I know you've got 30 projects, both open and in the pipeline, but what did those generate for you last year? And when you say substantial increase in 2027 and beyond, could you sort of give us some numbers behind that, please? Secondly, on the removals rate, I think it was 1.9% ex-Venetian. Should we expect that to fall back towards sort of 1.5%, this year? Is that, is that what's giving you confidence to the upside, to the consensus, 4.4% net unit growth? And then just coming back, if I may, on the sort of gap between the comparable and the total RevPAR, and then looking at the fees.

Speaker #6: Thanks . Morning , everyone . Three questions to please . First , just on that branded residence income . I don't think you've quantified it yet .

Speaker #6: I know you've got 30 projects, both open and in the pipeline, but what do those generate for you? Last year?

Speaker #6: And when you say substantial increase in 27 and beyond , could you sort of give us some numbers behind that , please ? Secondly , on the removals rate , I think it was 1.9% x to Venetian .

Speaker #6: Should we expect that to fall back towards sort of 1.5% this year? Is that what's giving you confidence to the upside to the consensus?

Speaker #6: 4.4% net unit growth, and then just coming back, if I may, on the sort of gap between the comparable and the total RevPAR.

Speaker #6: And then looking at the fees , you've got to helpful slide on on slide 56 . So there's about a two point gap between comparable and total rev par .

Jamie Rollo: You've got a helpful slide on slide 56. So there's about a 2-point gap between comparable and total RevPAR, and there's also another couple of points in the 3 regions, between underlying fee income and the sum of total RevPAR and available rooms. Are you saying that those timing issues mean that those negative figures turn positive this year or at some point in the future? Just to sort of clarify the algorithm. Thank you.

Speaker #6: And there's also another couple of points in the three regions between underlying fee income and the sum of of of of of total rev par and available rooms .

Speaker #6: Are you saying that those timing issues mean that those negative figures turn positive this year, or at some point in the future? Just to clarify, the algorithm.

Speaker #6: Thank you

Speaker #5: Thank you . Jamie . I'll take Brandon Residences removals . I'll turn it over . The fee income to Michael and anything else he wants to build on .

Elie Maalouf: Thank you, Jamie. I'll take branded residences, removals, I'll turn over the fee income to Michael, anything else he wants to build on. So look, branded residences, we're very excited about that business. You know, it builds on the power of our luxury and lifestyle portfolio that just keeps growing with the six brands we have now, mainly the ultra-luxury brand, Six Senses, and Regent. I mean, just let me just give you an anecdote. I've already been to six countries, it's not even mid-February yet, and or it is just mid-February. And I was in Bangkok early this month, late last month, and we have an InterContinental Residences project that had just started sales in the heart of the city.

Speaker #5: So look, branded residents are very excited about that business. You know, it builds on the power of our luxury and lifestyle portfolios.

Speaker #5: It just keeps growing with the six brands we have now , mainly the ultra luxury brands , Six Senses and Regent . I mean , just let me just give you an anecdote .

Speaker #5: I was I've already been to six countries . It's not even mid-February yet . And or it is just in February . And I was in Bangkok early this month , late last month , and we have an Intercontinental Residences project that had just started sales in the heart of the city in December .

Elie Maalouf: In December, I was speaking to the owner; they were 40% sold by mid-January, and they raised prices 4 times. I told them they have to raise prices again to slow these sales down. So, and that's InterContinental; it's not even Regent and Six Senses, where we have most of our projects. So there's more coming across more brands. Yes, we have 30 projects today. We have many more that are going into the sales phase. There in London, you know, when Six Senses London is opening this coming month, the branded residences are all sold out, or maybe there's one left, I understand. Up to now, I'd say the fees range have not been that material; has been $5 to 10 million. However, we see substantial increase in that starting in 2027 and beyond.

Speaker #5: Speaking to the owner , they were 40% sold by mid January and they raised prices four times . I told him he had to raise prices again to slow sales down , so and that's intercontinental .

Speaker #5: It's not even a region. And six census where we have most of our projects. So there's more coming across, more brands.

Speaker #5: Yes , we have 30 projects today . We have many more that are going into the sales phase They're in London . You know , when success is London is opening this coming month .

Speaker #5: The Branded residences are all sold out . Or maybe there's one left . I understand Up to now , I'd say the fees range have not been that material has been 5 to 10 million .

Speaker #5: However , we see substantial in that starting in 2027 and beyond . So again , we're not putting a ceiling on that . We think it's totally creative .

Elie Maalouf: So again, we're not putting a ceiling on that. We think it's totally accretive, and we're very excited about where it's going. On the removals rate, yes, we're confident it will go back towards the 1.5%, over the next few years. There was just a lot of lumpiness going on right now, especially in China, as things normalize post-pandemic, but we see a path to clearly back to the 1.5%. I don't think that's the only thing that can give us, it is one thing, but I don't think it's the only thing that can give us more upside in 2026.

Speaker #5: And I'm very excited about where it's going on the removals rate. Yes, we're confident it will go back towards the 1.5% over the next few years.

Speaker #5: There was just a lot of lumpiness going on right now, especially in China, as things normalize post-pandemic. But we see a path clearly back to the 1.5%.

Speaker #5: I don't think that's the only thing that can give us. It is one thing, but I don't think it's the only thing that can give us more upside in 2026.

Elie Maalouf: The strength of our signings, the strength of our brand portfolio, the proven, you know, enterprise to get more openings going, whether it's conversion or even new build, all of that put together gives us more confidence in our system growth over the medium to long term. Yes, there's opportunity also in lower removals, but that's not, that's not the primary thing, it's a combination of everything. Michael, if you want to build on those and answer the question on fee income.

Speaker #5: The strength of our signings , the strength of our brand portfolio , the proven , you know , enterprise to get more openings going , whether it's conversion or even new build , all of that put together gives us more confidence in our system growth over the medium to long term .

Speaker #5: Yes , there's opportunity also in lower removals , but that's not that's not the primary thing . It's the combination of everything . Michael , if you want to build on those and answer the question on fee income .

Speaker #7: Yeah , sure . I mean , I was going to say the similar on the net system size . I mean , we've been saying , you know , consensus is at 4.4% for next year .

Michael Glover: Yeah, sure. I mean, I was gonna say the similar on the net system size. I mean, we've been saying, you know, consensus is at 4.4% for next year. We certainly feel like there's more opportunity on the upside of that than there is risk to the downside as we move into the year based on the visibility we have. And really, you know, Jamie, it's not just about removals coming down, which we do believe they will. It's really about those openings and how things are proving out. And what we look at, we see really strong growth across EMEA and China. You saw that in our results this year.

Speaker #7: We certainly feel like there's more opportunity on the upside of that than there is risk to the downside . As we move into the year , based on the visibility we have and really , you know , Jamie , it's not just about removals coming down , which we do believe they will .

Speaker #7: It's really about those openings, and how things are proving out, and what we look at. We see really strong growth across EMEA and China.

Speaker #7: You saw that in our results this year . You know , we see if you exclude the Venetian , the US at 1.5% were on the right track record or the Americas at 1.5% were on the right track there .

Michael Glover: You know, we see, if you exclude the Venetian, the US at 1.5%, we're on the right track record, or the Americas at 1.5%, we're on the right track there. So I think we feel confident in that, and that's why we're willing to say and, that there's more opportunity to the upside to that 4.4%. And then when you look back, and on your third question regarding the table in the chart, in the presentation, thank you. We, we thought that would be helpful. It is, it is helpful, but it also goes back to what we talked about earlier and the reason for that total RevPAR being less than the comparable RevPAR, particularly the ramp-up of hotels.

Speaker #7: So I think we feel confident in that. And that's why we're willing to say that there's more opportunity to the upside to that 4.4%.

Speaker #7: And then when you look back and on your third question regarding the the table in the chart , in the presentation , thank you .

Speaker #7: We thought that would be helpful. It is, it is helpful. But it also goes back to what we talked about earlier.

Speaker #7: And the reason for that total repar being less than the comparable repar , particularly the ramp up of hotels . So it takes it takes , you know , some time for hotels once they open to build that base business and then begin to yield as you open more hotels and we have that acceleration in openings , you've got more hotels in that as a percentage of your system than you used to have .

Michael Glover: So it takes, you know, some time for hotels once they open, to build that base business and then begin to yield. As you open more hotels, and we have that acceleration in openings, you've got more hotels in that as a percentage of your system than you used to have, and so that's affecting that. You also have the renovation effect. There's also, you know, of course, the leap year effect, but then also the mix effect of when as hotels are opening around the world. So, I think over time, yeah, that gets back and that normalizes. We're gonna still open as many hotels as we can. So, we wanna continue that as you see that acceleration. And really, you go back to Ellie's point of us growing our system size over the last four years.

Speaker #7: And so that's affecting that . You also have the renovation effect . There's also , you know , of course , the the leap year effect , but then also the mix effect of when as hotels are opening around the world , so I think over time , yeah , that gets back in that normalizes .

Speaker #7: We're going to still open as many hotels as we can . So we want to continue that . As you see that acceleration and and really you go back to Ellie's point of us growing our system size over the last four years .

Speaker #7: It just puts more openings in there, and more hotels ramping up as a percent of the system size versus what we used to have.

Michael Glover: It just puts more openings in there and more hotels ramping up as a percent of the system size versus what we used to have. And so I do think that normalizes over time, and we get to a better position. And I'll pass back to Ellie if there's anything else.

Speaker #7: And so I do think that normalizes over time, and we get to a better position. And I'll pass back to Elie if there's anything else.

Speaker #5: Thank you, Jamie. Next.

Elie Maalouf: Thank you, Jamie. Next,

Ricardo Freitas: Thank you.

Speaker #9: Thank you

Speaker #4: And your next question comes from the line of Ricardo Benavides Freitas of Santander. Please go ahead.

Operator: Your next question comes from the line of Ricardo Freitas of Santander. Please go ahead.

Speaker #10: Thank you very much . Two questions from my end . Firstly , on the brand portfolio , we've seen , you know , these two recent additions to your collections brand portfolio .

Ricardo Freitas: Thank you very much. Two questions from my end. Firstly, on the brand portfolio, we've seen, you know, these two recent additions to your collections, brand portfolio, right? What I wanted to ask is, what other thematics, let's say, are you willing to approach on further brand acquisitions or entering? Is it more collections or any other specific theme? And I wanted to ask you regarding, I mean, you've had a very strong cash flow generation this year. Your net debt seems to be very under control. Why not a bit more allocated towards your share buyback program? Thank you.

Speaker #10: Right . What I wanted to ask is what other thematics , let's say are you willing to approach on on further further brand acquisitions or entering ?

Speaker #10: Is it more collections or any , any other specific theme ? And I wanted to ask you regarding I mean , you've had a very strong cash flow generation this year .

Speaker #10: Your net debt seems to be very under control. Why not a bit more towards your share buyback program? Thank you.

Speaker #5: Thank you . Ricardo . I'll take the two questions and , Michael , you can build on the cash generation and leverage if you wish .

Elie Maalouf: Thank you, Ricardo. I'll take the two questions, and Michael, you can build on the cash generation and leverage, if you wish. Look, obviously, we don't comment on what else we're going to launch until we launch and tell you, like today. And so actually, we indicated this collection in Q3, and we just named it today and formally launched, and we're very excited about it, reaching 150 hotels. We're starting in EMEA with Noted Collection, really, because EMEA has the largest percentage of unbranded hotels, and we've typically launched our collection and conversion brands in EMEA before going east and west from there. So that's the future of the brand, won't be just in EMEA, but it'll go east and west, but establish itself in EMEA first.

Speaker #5: The look , obviously we don't comment on on what else we're going to launch until we launch and tell you like the . And so actually we we indicated this collection in Q3 and we just named it today and formally launched .

Speaker #5: And we're very excited about it reaching out to 50 hotels. We're starting in EMEA with Noted Collection, really because MTA has the largest percentage of unbranded hotels, and we typically launched our collection and conversion brands in EMEA before going east and west from there.

Speaker #5: So that's the future of the brand . Won't be just an MTA , but it'll go east and west . But establish itself in EMEA first , we do look at M&A from time to time , as you know , and we did Ruby acquisition last year .

Elie Maalouf: We do look at M&A from time to time, as you know, and we did Ruby acquisition last year. We don't need M&A to grow. It's helpful if we find the right opportunity in the portfolio. It's most likely, although I won't say exclusively, it's most likely to be in premium and above premium, upper upscale, luxury lifestyle, and we tend to launch our own brands when it's a soft brand, like Noted Collection, or when it's a mainstream brand like Garner. Those we tend to launch on our own, although there could be exceptions to that. But we don't need M&A to grow. We have 21 very strong brands now, 11 of which launched in the last 11 years with a lot of runway. So those are still new. Those are basically still new and new to new countries.

Speaker #5: We don't need M&A . The grow . It's helpful if we find the right opportunity in the portfolio . It's most likely although exclusively it's most likely to be in premium and above premium upper upscale luxury lifestyle .

Speaker #5: We tend to launch our own brands when it's a soft brand, like Noted Collection, or when it's a mainstream brand, like Garnier.

Speaker #5: Those we tend to launch on our own, although there could be exceptions to that. But we don't need M&A to grow.

Speaker #5: We have 21 very strong brands now, 11 of which launched in the last 11 years, with a lot of runway. So those are still new.

Speaker #5: Those are basically still new, and new to new to new countries. I think in 2025, there were 32 or 33 instances when we took one of our existing brands to a new country.

Elie Maalouf: I think in 2025, there were 32 or 33 instances when we took one of our existing brands to a new country. As far as that country's concerned, that's a new brand launch, right? That's a new brand launch. So, we have many more of these new country launches ahead of us for our brand portfolio while we look at what else we could be interested in. What are some territories that could be appealing to us? We've been very successful in ultra-luxury with the Regent and Six Senses. I'd say extremely successful, not just in the hotel brand itself, by expanding it, also expanding it into branded residences. If there was the right opportunity, we could add more there. We've talked before about looking at branded shared home rentals. It's something we'll continue to explore. Anything in premium lifestyle, like Ruby, is interesting.

Speaker #5: As far as that country is concerned , that's a new brand launch , right ? That's a new brand launch . So we have many more of these new country launches ahead of us for our brand portfolio .

Speaker #5: While we look at what else we could be interested in, what are some territories that could be appealing to us? We've been very successful in ultra luxury with the region in Six Senses.

Speaker #5: I'd say extremely successful , not just in the hotel brand itself . By expanding it , also expanding it into branded residences . If there was a right opportunity , we could add more .

Speaker #5: There . We've talked before about looking at branded shared home rentals . It's something we'll continue to explore . Anything in premium lifestyle like Ruby is interesting only if it's accretive , if it's different and differentiated from the brands you already have .

Elie Maalouf: Only if it's accretive, if it's different and differentiated from the brands you already have, if it's at the right valuation also, or the right trajectory if we launch it ourselves. We don't need it, given the strength of our portfolio. But look, it's a dynamic industry, right? Guests' interests are dynamic, owner investment interests are dynamic, so our strategy can't be static. That's why we've added to our portfolio thoughtfully, but we're not competing with anybody to have the most number of brands. I don't think that that is a recipe for success. We're competing for having the right brands for the right guests and the right owners. On cash generation, we have a very clear capital allocation policy and philosophy.

Speaker #5: If it's at the right valuation also, or the right trajectory if we launch it ourselves, we don't need it, given the strength of our portfolio.

Speaker #5: But look , it's a dynamic industry , right ? Guests interests are dynamic . Owner investment interests are dynamic . So our strategy can't be static .

Speaker #5: That's why we've added to our portfolio thoughtfully. But we're not competing with anybody to have the most number of brands. I don't think that that is a recipe for success.

Speaker #5: We're competing for having the right brands, for the right guests, and the right owners. On cash generation, we have a very clear...

Speaker #5: Capital allocation policy in philosophy . First , we invest in the business just like launching , noted or buying Ruby to grow the business , because that's where the highest returns on on invested capital come from .

Elie Maalouf: First, we invest in the business, just like launching Noted or buying Ruby, to grow the business, because that's where the highest returns on, on invested capital come from for our shareholders. Number two, we maintain and grow our ordinary dividend. And number three, we return surplus capital to shareholders, and only when it's surplus. And fortunately, we have a strong asset-light, growing cash-generating business that converts 100% on average of, of adjusted earnings into cash flow. And again, in 2025, we did that, and so we can return surplus capital. And we wanted to get back into the stated leverage range of 2.5 to 3, and we are. So we're confident that our, that our business model can continue to generate surplus cash flow over the years, and that we can return surplus cash flow to shareholders.

Speaker #5: For our shareholders . Number two , we maintain and grow our ordinary dividend . Number three , we return surplus capital to shareholders .

Speaker #5: And only when it's surplus and fortunately we have a strong asset light growing , cash generating business . That's converts 100% on average of of adjusted earnings into cash flow .

Speaker #5: And again in 2025 we did that . And so we can return surplus capital . And we wanted to get it back into the stated leverage range of two and a half to three .

Speaker #5: And we are. So we're confident that our business model can continue to generate surplus cash flow over the years, and that we can return surplus cash flow to shareholders.

Speaker #5: But , you know , we're not we're not commenting on where else our share buyback will go in the future . Michael , if you wish to build on that .

Elie Maalouf: But, you know, we're not commenting on where else our share buyback will go in the future. Michael, do you wish to build on that?

Speaker #7: Yeah , I mean , you said that really ? Well , what I would also just say if you go back and look at kind of where we were in when we first started the buybacks again back in 2023 , we were well below the the leverage range .

Michael Glover: Yeah, I mean, you said that really well. What I would also just say, if you go back and look at kind of where we were in, when we first started the buybacks again back in, 2023, we were well below the, the leverage range. And so a lot of what you had, going on in our buybacks was a step up to get back into the range, and we finally have arrived in that. And I think what's exciting about this buyback is that we're able to actually grow the buyback, again this year, and to be in the range.

Speaker #7: And so a lot of what you had going on in our buybacks was a step up to get back into the range.

Speaker #7: And we finally have arrived in that. And I think what's exciting about this buyback is that we're able to actually grow the buyback again this year.

Speaker #7: And and be in the range . So we're no longer getting that by delivering the buyback and having any of the step up come in as part of that buyback , which is really , you know , a good indication of the kind of cash generation that this business can do .

Michael Glover: So we're no longer getting that buyback, delivering the buyback, and having any of the step-up come in as part of that buyback, which is really, you know, a good indication of the kind of cash generation that this business can do. I'm very happy with that. And I'm also, there's just a couple other things kind of nuanced in there that are really, really helpful. One, we've eliminated that, we've greatly eliminated the currency translation on our debt. That's a huge benefit for us, and by the end of this year, in Q1 of next year, we will have completely eliminated that. Many of you who have followed us for many years have known about that.

Speaker #7: I'm very happy with that. And also, there's a couple of other things kind of nuanced in there that are really, really helpful.

Speaker #7: One , we've eliminated that . We've greatly eliminated the currency translation on our on our debt . That's a huge benefit for us .

Speaker #7: And by the end of this year , in the first quarter of next year , we will have completely eliminated that . Many of you who have followed us for many years have have known about that .

Speaker #7: The other thing is , we refinanced our RCF this year and have taken out and no longer have debt covenants on that . That gives us a lot of flexibility .

Michael Glover: The other thing was we refinanced our RCF this year and have taken out, and no longer have debt covenants on that. That gives us a lot of flexibility. As we've said many times with our shareholders, you know, and the expectation is that we will continue to do buybacks. So whether it's delivering cash this year or at the next one, you know, we will do that. We're committed to do that. You've seen our, track record on that from, the GBP 500 million we did in 2023 to the GBP 750 million we did in 2024. And, excuse me, in the GBP 750 million we did in 2023, the GBP 800 million we did in 2024, and the GBP 900 million we did in 2025. We've built that track record and we can, we'll continue to do that.

Speaker #7: And as we've said many times with our shareholders, you know, the expectation is that we will continue to do buybacks.

Speaker #7: And so whether it's delivering cash this year or at the next one, you know, we will do that. And we're committed to do that.

Speaker #7: You've seen our track record on that, from the $500 million we did in 2023 to the $750 million we did in '24.

Speaker #7: And, excuse me, in the 750 we did in '23, the 800 we did in '24, and the 900 we did in '25.

Speaker #7: We built that track record, and we will continue to do that.

Speaker #5: Thank you. Next caller, please.

Elie Maalouf: Thank you. Next caller, please.

Speaker #4: Your next question comes from the line of Dana Mystery of Barclays. Please go ahead.

Operator: Yeah, next question comes from the line of Jaina Mistry of Barclays. Please go ahead.

Speaker #11: Hi . Good morning Michael . Good morning Ellie . I have three questions as well . Two are follow ups . One , so the first follow up is around branded resi .

Jaina Mistry: Hi. Good morning, Michael. Good morning, Elie. I have three questions as well, two are follow-ups. One, so the first follow-up is around branded resi. When we're thinking about your growth algo of 100 to 150 bps from the margin, or you know, roughly 10% EBIT growth, should we think about branded resi next year as contributing to growth over and above that algo? Then the second question is around net unit growth. I mean, your, your, your commentary sounded really quite confident and bullish around it. You know, if, if we're thinking about net unit growth being around the 4.5 mark in 2026, is this the right run rate going forward for the medium term as well, you know, somewhere between 4.5 and 5?

Speaker #11: When we're thinking about your growth algo of 100 to 150 bips on the margin, or roughly 10% EBIT growth, should we think about branded resi next year as contributing to growth over and above that algo?

Speaker #11: And then second question is around net unit growth . I mean your your commentary sounded really quite confident and bullish around it . You know , if we're thinking about net unit growth being around the four and a half mark in 2026 , is this the right one rate going forwards for the medium term as well .

Speaker #11: You know, somewhere between four and a half and five. And then, very lastly, just on ref PA, I wondered if you could set the stage for '26.

Jaina Mistry: And then very lastly, just on RevPAR, I wondered if you could set the stage for 2026. You know, why are you confident in an inflection, or indeed, are you confident in an inflection? And could you give some color by region about what you're expecting? Thank you.

Speaker #11: You know , why are you confident in an inflection or indeed . Are you confident in an inflection ? And could you give some color by region about what you're expecting ?

Speaker #11: Thank you

Speaker #5: Thank you, Gina. Let me start with your last question, and then we'll work our way back. Michael, please build on my responses.

Elie Maalouf: Thank you, Jaina. Let me start with your last question and then work our way back. Michael, please build on my responses, if you wish. So, let me start with RevPAR outlook. Understanding we don't give guidance either by quarter or by year, but just give you some context also by region. Let's start where I'm sitting today in the United States, although by tomorrow morning I'll be back in London. You know, if you look at 2025, we're very pleased with our performance in 2025 in the United States. We believe it was competitive, but we also know there was some burden on the industry in 2025, which started very well in January, February, and then we had a series of things that became sort of headwinds. You had the tariff anxiety and uncertainty.

Speaker #5: If you wish. So let me start with reference to outlook understanding. We don't give guidance either by quarter or by year, but just to give you some context.

Speaker #5: Also , by region . So let's start where I'm sitting today in the United States . Although by tomorrow morning I'll be back in London and you know , if you look at 2025 , we're very pleased with our performance in 2025 .

Speaker #5: In the United States, we believe it was competitive, but we also know there were some burdens on the industry in 2025, which started very well in January and February.

Speaker #5: And then we had a series of things that that became sort of headwinds . You had the the tariff anxiety and uncertainty . You had reductions in government spending .

Elie Maalouf: You had reductions in government spending, the DOGE project, which affected government travel down, say, 20% on average. Then you had reductions in inbound, mostly from Canada, but a little bit also from Mexico and from Europe. Inbound for the US ends up being down 4%. And then you had a record government length shutdown in the Q4. You take all those things, and yet I think we performed competitively in 2025. Those things either don't reappear in 2026 in the US or, or they don't get worse. We don't think government travel gets worse. It may not get better. We don't think there's going to be a government shutdown of that length, or maybe not even one whatsoever. Instead of reduced international travel, we got the World Cup, we got US 250.

Speaker #5: The Doge project , which affected government travel down , say , 20% on average . Then you had reductions in inbound , mostly from Canada , but a little bit also from Mexico and from Europe .

Speaker #5: Inbound for the US ended up being down 4%, and then you had a record government shutdown in the fourth quarter. You take all those things.

Speaker #5: And yet I think we performed competitively in 2025. Those things either don't reappear in 2026 in the US, or they don't get worse.

Speaker #5: We don't think government travel gets worse. It may not get better. We don't think there's going to be a government shutdown of that length, or maybe not even one whatsoever.

Speaker #5: Instead of reduced international travel , we got the World Cup . We got us 250 many cases . We got a weaker dollar , which is not unhelpful .

Elie Maalouf: In many cases, we got a weaker US dollar, which is not unhelpful. And so the comps get better going into 2025. But on top of that, on top of that, the structural reasons to be confident in the US are not a few. You have strong GDP growth as an exit rate from 2025. You have strong employment. You know, some months the job report is higher than others, but, you know, January was surprisingly strong. Regardless, we're still at record number of people employed in the US, low unemployment, real wage growth, diminishing inflation, improving trajectory for interest rates. They're at least stable to going down. Consumers are still spending, you know, up in October, November, 2.6%. Wages are pacing inflation.

Speaker #5: And so the comps get better going into 2020. But on top of that, on top of that, the structural reasons to be confident in the US are not a few.

Speaker #5: You have strong GDP growth as an exit rate from 2025. You have strong employment. You know, some months the job report is higher than others.

Speaker #5: But , you know , January was surprisingly strong . Regardless , we're still at record number of people employed in the US . Low unemployment .

Speaker #5: Real wage growth , diminishing inflation , improving trajectory for interest rates . There , at least at least stable to going down . Consumers are still spending , you know , up in October , November , 2.6% wages are pacing inflation .

Speaker #5: The corporate the corporate area has clarity on tax after last year's tax bill . And that starts to to be beneficial to individuals and to corporations this year with accelerated depreciation and higher refunds coming back .

Elie Maalouf: The corporate, the corporate area has clarity on tax after last year's, tax bill, and that starts to be beneficial to individuals and to corporations this year with accelerated depreciation and higher refunds coming back. And so you put those things together in addition with the super cycle of capital investment from technology companies, not just in AI and in technology, but also in the energy to provide that and infrastructure to provide that. That's just private sector investment. I mean, four companies have announced spending $660 billion. That's just four companies, let alone the others. So we've got a lot of capital investment going in. So I think that gives you confidence that the US starts to comp against some negative factors last year. It's got a lot of positive factors.

Speaker #5: And so you put those things together . In addition , with the super cycle of capital investment from technology companies , not just in AI and in technology , but also in the energy to provide that and infrastructure to provide that .

Speaker #5: That's just private sector investment . I mean , for companies have announced spending $660 billion . That's just for companies , let alone the others .

Speaker #5: So we've got a lot of capital investment going in, so I think that gives you confidence that the US starts to comp against some negative factors.

Speaker #5: Last year , it's got a lot of positive factors . We're not putting a number on where the US could be this year , but you'd have to you'd have to be a big pessimist to believe it doesn't have better fundamentals in 26 and 2025 .

Elie Maalouf: We're not putting a number on where the US could be this year, but you'd have to be a big pessimist to believe it doesn't have better fundamentals in 2026 and 2025. Then I flip to the other side of the world. In China, I think it's visible, right? That we're bottomed out. We've always said it won't be a V-shaped recovery, and we don't think it'll be, but it's a recovery. It's a U-shaped recovery. We think the gradient is upward from where we are already, and that becomes a tailwind for us with a much bigger system, strong signing, strong openings, a leading position in the industry, across all tiers. So we're confident about what's happening there. And then that China outbound, that was up 22% last year at high rates.

Speaker #5: Then I flip to the other side of the world . In China , I think it's visible , right ? That that we're we've bottomed out .

Speaker #5: We've always said it won't be a V-shaped recovery . And we don't think it will be , but it's a recovery . It's a U-shaped recovery .

Speaker #5: As we think the gradient is upward from where we are already . And that becomes a a tailwind for us with a much bigger system , strong signings , strong openings , a leading position in the industry Across all tiers .

Speaker #5: So, we're confident about what's happening there. And then that China outbound that was up 22% last year at high rates—that is fueling our growth in Southeast Asia.

Elie Maalouf: That is fueling our growth in Southeast Asia. Big numbers in RevPAR, whether it's in Vietnam, Japan, South Korea, Indonesia. All those markets are strong for us because of the Chinese outbound. The Middle East, strong, you know, double digit to high single digit RevPAR, whether it's in the UAE, in Dubai. Regardless of the uncertainty, Middle East, our RevPAR was very strong there. So that region is doing well. In Europe, you know, yes, low GDP growth, but, what do you know? Strong travel growth. You know, mid-fours RevPAR last year, strong exit rate in Q4, and, people traveled to Europe from the US was up 3%, you know, last year. Middle East going to Europe, Chinese travelers coming back to Europe.

Speaker #5: Big numbers in red bar , whether it's in Vietnam , Japan , South Korea , Indonesia , all those markets are are strong for us because of the Chinese outbound , the Middle East strong , you know , double digit to high single digit red bar , whether it's in Neo in UAE , in Dubai , regardless of the uncertainty , at least RF bar was very strong there .

Speaker #5: So that region is doing well in Europe , you know . Yes , low GDP growth , but what do you know , strong travel growth .

Speaker #5: You know , mid fours , Repar last year strong exit rate in Q4 and people travel to Europe from the US was was up 3% .

Speaker #5: You know last year . Middle East going to Europe Chinese travelers going back to Europe . So when I look . Across , you know , the globe Everything seems to be favorable compared to 2025 , where we were negative in China , returning positive , where things were flat in the US , there is there's fundamental for a little more optimism and our EMEA region continues to move at a good pace .

Elie Maalouf: So when I look across, you know, the globe, everything seems to be favorable compared to 2025, where we were negative in China, returning positive, where things were flat in the US, there's fundamental for a little more optimism, and our EMEA region continues to move at a good pace. So that's kind of why we are constructive about RevPAR going into 2026. And the early indicators, while early, and I'll say that, you know, we have a short booking windows, you know, 60% of our bookings come in the last week, but early indicators so far are positive in all regions. On NUG, on net unit growth, I think I talked about it earlier. We, we've had a consistent trajectory now for 4 years of growing net unit growth, best in 6 years in 2025.

Speaker #5: So that's kind of why we are constructive about red bar going into 2026 and the early indicators . While early . And I'll say that , you know , we have a short booking windows , you know , 60% of our bookings come in the last week .

Speaker #5: But early indicators so far are positive in all on net unit growth. I think I talked about it earlier. We've had a consistent trajectory now for four years of growing that unit growth—best in six years. In 2025, our strong signings and strong construction starts, with 50% of our pipeline now under construction, are a strong sign.

Elie Maalouf: Our strong signings and strong construction starts with 50% of our pipeline now under construction give us confidence in more openings. Our strong signings give us confidence in owner demand for our brands. Our brand portfolio is stronger. We're not putting a ceiling on where our net unit growth can be. We're comfortable with consensus where it is. Michael and I have both said that we think there's more upside than downside, but we're really more focused about the long-term trajectory for that to be sustainable, so that we're not just, you know, doing, say, unproductive, uneconomic things to increase our NUG. We're. You've heard me speak for years now, but keys with fees, not just keys. That's what we're focused on in all of our markets, but we think that's what we're achieving.

Speaker #5: We have confidence in more openings. Our strong signings give us confidence in owner demand for our brands. Our brand portfolio is stronger.

Speaker #5: We're not . We're not putting our a ceiling on where our net unit growth can be . We're comfortable with consensus , where it is .

Speaker #5: Michael and I have both said that we think there's more upside than downside, but we're really more focused on the long-term trajectory for that to be sustainable.

Speaker #5: So that we're not just , you know , doing say , unproductive , uneconomic things to to increase our you've heard me speak for years now , but keys with fees , not just keys .

Speaker #5: That's what we're focused on, and all of our markets. But we think that's what we're achieving. We're not putting a ceiling on where we can go.

Elie Maalouf: We're not putting a ceiling on where we can go. We're very ambitious, but we're comfortable with consensus. Branded residences. It's gonna be a significant contributor over time. I think that probably starts in 2027, given the time it takes for some of these projects to come for sale. You know, when you start to look at it within the growth algorithm, all these things start to fall in it. We have a range of a hundred to 150. Sometimes, some years, some things will push us to the upper end of the range or slightly above the range. Some years it won't happen quite like that, but at some point, it all starts to work within the algorithm.

Speaker #5: We're very ambitious , but we're comfortable with consensus And branded residences It's going to be a significant contributor over time . I think that probably starts in 27 , given that the time it takes for some of these projects to come for sale and we you know , when you start to look at it within the the growth algorithm , all these things start to fall and fall in it .

Speaker #5: We have a range of 100 of 100 to 150 . Sometimes some years , some things will push us to the upper end of the range above the range .

Speaker #5: Some years, it won't happen quite like that, but at some point, it all starts to work within the algorithm. So we're comfortable that branded residences just give us more confidence about our growth algorithm going forward.

Elie Maalouf: So we're comfortable that branded residences just gives us more confidence about our growth algorithm going forward. Michael, please jump in.

Speaker #5: Michael , please jump in .

Speaker #7: Ellie . No , I mean , I think you covered it in detail , nothing more for me to add .

Michael Glover: Elie, no. I mean, I think you covered it, in detail.

Elie Maalouf: Okay.

Michael Glover: Nothing more for me to add.

Elie Maalouf: Let's take the next caller.

Speaker #5: But take the next caller

Speaker #4: And your next question comes from the line of Alex Brignole of Rothschild & Co. Redburn. Please go ahead.

Operator: Your next question comes from the line of Alex Brignall of Redburn Atlantic. Please go ahead.

Speaker #6: Good morning . Thank you . Thank you very much for taking the question . I'm just going to stick to one if that's okay .

Alex Brignall: Good morning. Thank you. Thank you very much for taking my question. I'm just gonna stick to one, if that's okay. It's a similar vein to Richard and Jamie earlier. If I take your fee revenues, less your non-RevPAR fee revenues, then your sort of take rate as a percentage of gross revenues was down 8 basis points this year, and it was down 6 basis points the year before, and it was down sort of 25, 30 basis points from pre-COVID levels, despite some noise in the COVID years. I can't imagine that this is from existing contracts. So how do we solve for that in terms of the contribution of new properties? The same trend is exactly seen at Marriott and actually also Hilton this year.

Speaker #6: It's a similar vein to Richard and Jamie earlier. If I take your fee revenues less your non-fee revenues, then your take rate as a percentage of gross revenues was down eight basis points this year, and it was down six basis points the year before.

Speaker #6: And it's down sort of 2530 basis points from pre Covid levels . There was some noise in the Covid years . I can't imagine that this is from existing contracts .

Speaker #6: So, how do we solve for that in terms of the contribution of new properties? The same trend is exactly as seen at Marriott.

Speaker #6: And actually also Hilton. This year. So how do we—how does that not mean that new rooms are coming with a slightly lower effective royalty rate?

Alex Brignall: So, how does that not mean that new rooms are coming with a slightly lower sort of effective royalty rate? Thank you.

Speaker #6: Thank you

Elie Maalouf: Hello, Alex. Thank you for your question. I'll take it, then Michael build on it. Our take rate is not reducing. I can tell you, I can tell you that. So there may be... There are a few factors working into it. As we, as we moved into more luxury lifestyle and premium, and we've been very open about it, our Key Money has moved up, too, because we're now participating by strategic choice in a sector that has more Key Money to play in it, but also has higher fees. So that Key Money amortization is starting to come through and affect a little bit of the fee revenue, and we've quantified that, actually for you. And so I think that there's, there's that factor in there.

Speaker #5: Hello Alex . Thank you for your question . I'll take it then . Michael bailed on it . Our take rate is not reducing .

Speaker #5: I can tell you . I can tell you that . So there may be if there are few factors working into it . As we as we moved into more luxury lifestyle premium .

Speaker #5: And we've been very open about it, our key money has moved up too because we're now participating, by strategic choice, in a sector that has more key money to play in it, but also has higher fees.

Speaker #5: So that key money amortization is starting to come through and affect a little bit of the fee revenue. And we've quantified that actually for you. And so I think that there's that factor in there.

Elie Maalouf: But our fee rates that we get, whether it's mainstream, whether it's some premium, whether luxury lifestyle, have not been diminishing. And so you might be seeing some, you know, year-over-year fluctuations due to normalization of Key Money or other factors, but it's not a headline, fee rate change. Michael?

Speaker #5: But our , our our fee rates that we get , whether it's mainstream , whether it's in premium , whether in luxury lifestyle have not been diminishing .

Speaker #5: And so you might be seeing some , you know , year over year fluctuations due to normalization of key money or other factors .

Speaker #5: But it's not a headline fee rate change, Michael.

Speaker #7: Yeah . I mean , I just would go back to the same factors . We I said when on Jamie's question and Richard's question as well , I mean , it's just a bit of noise , Alex , right now , it goes back to these record level of openings being incrementally more than what we've had in in the past .

Michael Glover: Yeah, I mean, I just would go back to the same factors I said when on Jamie's question and Richard's question as well. I mean, it's just a bit of noise, Alex, right now. It goes back to these record level of openings being incrementally more than what we've had in the past. And just to, you know, give you an idea, it takes time for a hotel to ramp up. And because we've had such strong openings, you've got a greater percentage of that in your system. Over time, if those normal openings are normalized, that and it equals, but you've got more hotels earning less fees as they come in, and so that's affecting your fee triangulation and some of that fee growth.

Speaker #7: And just to , you know , give you an idea . It takes time for a hotel to ramp up . And because we've had such strong openings , you've got a greater percentage of that in your system over time .

Speaker #7: If those are normal openings, are normalized, that— and it equals, it equals. But you've got more hotels earning less fees as they come in.

Speaker #7: And so that's affecting your fee triangulation and some of that fee growth. Now, that normalizes over time, so that's why I say it's a bit of noise.

Michael Glover: Now, that normalizes over time, so that's why I say it's a bit of noise. Eli discussed the key money, which we talked about as well. We've talked about leap year, we've talked about renovations. There's a number of things like that that's kind of in there that's affecting this. As we look out and we look forward and we model this business, there is nothing to suggest that we will not still be able to hit that high single digit fee revenue growth over time. I go back to the algorithm. There's no reason to believe we can't generate the 100 to 150 basis points of margin improvement.

Speaker #7: Ellie discussed the key money , which we we talked about as well . We've talked about leap year . We've talked about renovations .

Speaker #7: There are a number of things like that that are kind of in there that's affecting this. As we look out and we look forward and we model this business, there is nothing to suggest that we will not still be able to hit that high.

Speaker #7: Single-digit fee revenue growth over time. I go back to the algorithm. There's no reason to believe we can't generate the 100 to 150 basis points of margin improvement.

Speaker #7: We've been demonstrating that over the past several years , and including , you know , that Ebit growth of around 10% and that earnings per share growth in the 12 to 15% range , everything we do , everything we look at , how we model the business , nothing of that has changed with this noise that we're kind of seeing right now .

Michael Glover: We've been demonstrating that over the past several years and including, you know, that EBIT growth of around 10% and that earnings per share growth in the 12% to 15% range. Everything we do, everything we look at, how we model the business, nothing of that has changed with this noise that we're kind of seeing right now.

Speaker #9: I mean, if you look at...

Elie Maalouf: I mean, if you look at the-

Speaker #6: The just .

Alex Brignall: Okay, thank you. Just-

Speaker #9: If you look at the pace.

Elie Maalouf: If you look at the pace of openings, Alex, not only was it a record in number of hotels last year, but a lot of our openings tend to be skewed to the second half. Our Q4 tends to be our biggest opening. So from an arithmetic point of view, you're not really even getting six months of fees in that given year for those openings, while the unit, you know, of NUG counts for the full year. Now, that's okay if you have the same percentage increase in openings year-over-year because you start to lap over the same amount. But when you have a surge of openings like we've had, then you get a bit of dislocation, which normalizes. We're happy with that. We would rather have more openings happening sooner, and as the hotels ramp up, the fees will come through.

Speaker #5: Of openings, Alex, not only was it a record in number of hotels last year, but a lot of openings tend to be skewed to the second half.

Speaker #5: Our fourth quarter tends to be our biggest opening, so from an arithmetic point of view, you're not really even getting six months of fees in that given year.

Speaker #5: For those openings . While the unit you know , of of Nog counts for the full year now , that's okay . If you have the same percentage increase in openings year over year , because you start to lap over the same amount .

Speaker #5: But when you have a surge of openings like we've had, then you get a bit of dislocation, which normalizes. We're happy with that.

Speaker #5: We’d rather have more openings happening sooner. And as the hotels ramp up, the fees will come through. That doesn’t concern us.

Elie Maalouf: That doesn't concern us.

Speaker #6: Okay . I just that's why I didn't ask the question . Like Richard and Jamie , I asked it as a percentage of the gross revenues , which would be , I guess , is there a reason for the the fee revenues ?

Alex Brignall: Okay. That's why I didn't ask the question, like Richard and Jamie, but I asked it as a percentage of the gross revenues, which would be, I guess, is there a reason for the fee revenues if the net fee revenues and the gross revenues to have different timing? I wouldn't have thought that would affect in a year.

Speaker #6: Just the net fee revenues and the gross revenues to have different timing? I wouldn't have thought that that would, would have, would affect in a year.

Elie Maalouf: No, I mean, I think the gross... I mean, you get the fee-

Speaker #9: No , I mean , I think gross .

Speaker #5: I mean , you get the fee . because Michael , maybe you can help with that . But the you get to the net fee from the gross fees and you're not earning gross fees .

Alex Brignall: Because I-

Elie Maalouf: Michael, maybe you can help with that, but you get to the net fee from the gross fees, and you're not earning the gross fees if the hotel opens in October. You're not earning the same amount of gross fees from a hotel that has a partial year of revenue, but has a full year of denominators and net unit growth. So I think that it's, you're not earning the full fees yet, so it's the same thing.

Speaker #5: If the hotel opens in October , you're not you're not earning the same amount of gross fees from a hotel that that has a partial year of revenue .

Speaker #5: But as a full year of denominators , the net unit growth . So I think that it's you're not you're not earning the full fees yet .

Speaker #5: So it’s the same thing.

Speaker #6: But the gross revenues would be, and the gross fees are counted in the same way. That's why I'm not looking at it versus now.

Alex Brignall: But the gross revenues would be, and the gross fees are counted in the same way. That's why I'm not looking at it versus NUG. I'm just looking at it versus gross revenues, which you've disclosed in the release, and the net revenues that you've disclosed in the release, and then that's where the royalty rates just come down a bit. But we can take it offline. Thank you so much for answering.

Speaker #6: I'm just looking at it versus gross revenues, which you've disclosed in the release, and the net revenues that you've disclosed in the release.

Speaker #6: And then that's where the royalty rates just come down a bit . But we can take it offline . Thank you so much for answering .

Speaker #5: Yeah , just I want to conclude that there's there is nothing that we see where our , our royalty rate is decreasing across any of our brands or our management fees .

Elie Maalouf: Yeah, just, I want to conclude that there is nothing that we see where our royalty rate is decreasing across any of our brands, or our management fees neither. Thank you, Alex.

Speaker #5: Neither. Thank you. Alex.

Speaker #4: And your next question comes from the line of Andre Juilliard of Deutsche Bank. Please go ahead. Good morning, gentlemen. Just to...

Operator: Your next question comes from the line of Andre Juillard of Deutsche Bank. Please go ahead.

André Juillard [Managing Director, Equity Research: Good morning, gentlemen. Just two follow-up questions for me. First one is on segmentation. Could you give us some more color about the trend you're seeing segment by segment? And do you see a pickup in the My segment, especially?

Speaker #12: Follow-up questions for me. The first one is segmentation. Could you give us some more color about the trend you're seeing, segment by segment?

Speaker #12: And do you see a pickup in in the segment especially second question about AI really appreciate the slide 4041 . It give us some more granularity about the disruption .

André Juillard [Managing Director, Equity Research: ... Second question about AI, really appreciate the slide 40, 41. Could you give us some more granularity about the disruption you're expecting from AI? Is it mainly a top-line driver, a mix of top line and cost optimization? Is it a real change in the yield management? So we'd appreciate any information you could give us. Thank you.

Speaker #12: You are expecting from AI . Is it mainly a top line driver A mix of top line and and cost optimization ? Is it a real change in the yield management ?

Speaker #12: So we appreciate any information you could give us. Thank you.

Elie Maalouf: Okay. Well, thank you, Andre. I'll start with your second question on AI. I'll turn over the question on segmentation to Michael, okay? So just bear with me because when we talk about artificial intelligence, we shouldn't just focus on one small thing because our strategy around artificial intelligence and what we're seeing is broad and enterprise-wide. Yes, there is disruption, but I wanna start by saying that there are two things that we fundamentally believe are not changing. The first one is that there will always be a guest that will want to travel for business or for leisure. We absolutely see no change in that. In fact, we see more interest in that. And on the other end, they want to go to a destination that has a live real experience.

Speaker #5: Okay . Well thank you Andre I'll start with your second question on AI . I'll turn it over . The question on segmentation to Michael .

Speaker #5: Okay . So just bear with me because when we talk about artificial intelligence , we shouldn't just just focus on one small thing because our strategy around artificial intelligence and what we're seeing is broad and enterprise wide .

Speaker #5: Yes, there is disruption, but I want to start by saying that there are two things that we fundamentally believe are not changing.

Speaker #5: The first one is that there will always be a guest that will want to travel for business or for leisure. We absolutely see no change in that.

Speaker #5: In fact , we see more interest in that . And on the other end , they want to go to a destination that has a live , real experience .

Speaker #5: The more people experience the virtual , the artificial , the digital , the more they favor live experiences , sports , events , theater , restaurant , bar and hotel .

Elie Maalouf: The more people experience the virtual, the artificial, the digital, the more they favor live experiences, sports events, theater, restaurant, bar, and hotel. People want live experience. Everything in between, the distribution, how you get there, how you book, how you view it, how you share it, how you search it, that is changing. We don't think it's a disruption for us. We think it's an opportunity for us. And we feel like we're in a strong position to capitalize on these opportunities and, and to actually deepen our competitive moat because of the huge strides we've made in recent years to modernize our tech stack. We're in a fortunate position because of the work we've been doing over five, six years. You've heard me talk about our guest reservation system on the call. We're the first to roll out this industry-leading guest reservation system.

Speaker #5: People want live experience . Everything in between the distribution . How you get there , how you book , how you view it , how you share it , how you search it .

Speaker #5: That is changing. We don't think it's disruption for us. We think it's an opportunity for us, and we feel like we're in a strong position to capitalize on these opportunities and to actually deepen our competitive moat.

Speaker #5: Because of the huge strides we've made in recent years to modernize our tech stack . We're in a fortunate position because of the work we've been doing over five , six years .

Speaker #5: You've heard me talk about our guest reservation system on the call. We were the first to roll out this industry-leading guest reservation system.

Elie Maalouf: Then we migrated our core enterprise data to the cloud, and that allowed us to quickly plug AI-powered systems into our tech ecosystem. Since then, we were the first to deploy machine learning, AI revenue management to all of our hotels. So to your question about revenue management, we're already doing it. It's all of our hotels, AI-powered. Then we added new cloud-based PMS platform that will be in most of our hotels by the end of this year. And now we're adding new loyalty and digital content platforms. So this foundation of systems, platforms, data solutions, places us in a very strong place to be AI ready. And the areas of focus are generally the ones that you touched on, guest acquisition, commercial optimization, cost efficiency.

Speaker #5: Then we migrated our core enterprise data to the cloud, and that allowed us to quickly plug AI-powered systems into our tech ecosystem.

Speaker #5: Since then , we were the first to deploy machine learning , AI , revenue management to all of our hotels . To your question about revenue management , we're already doing it .

Speaker #5: It's in all of our hotels, AI powered. Then we added a new cloud-based PMS platform that will be in most of our hotels by the end of this year.

Speaker #5: And now we're adding new loyalty and digital content platforms. So this foundation of systems, platforms, and data solutions places us in a very strong position and enables us to be AI ready.

Speaker #5: And the air is a focus . Are generally ones that you touched on . Guest acquisition , commercial optimization , cost efficiency , so on guest acquisition , you know , yes , it's about delivering top funnel visibility , driving booking conversions and deepening guest loyalty .

Elie Maalouf: So on guest acquisition, you know, yes, it's about delivering top funnel visibility, driving booking conversions, and deepening guest loyalty. I mean, today, 66% of our global room nights come through IHG One Rewards. So strengthening that incredible foundation is a big opportunity, and we do that, you know, first in search. With this new content platform that we discussed in my presentation today, now we're gonna be able... which we're launching this content platform at scale this year. We already started launching some elements this year. You're gonna be able to take all that digital information, the right information, put it in the right channel at the right time. That strengthens those digital hooks needed for our hotels to be recommended by AI agents. This matters as travel search patterns evolve.

Speaker #5: I mean, today, 66% of our global room nights come through IHG One Rewards. So strengthening that incredible foundation is a big opportunity.

Speaker #5: And we do that . You know , first in search with this new content platform that we discussed in my presentation today . Now we're going to be able which we're launching this content platform at scale this year .

Speaker #5: We've already started launching some elements this year. You're going to be able to take all that digital information, the right information, put it in the right channel at the right time.

Speaker #5: That strengthens those digital hooks needed for our hotels to be recommended by AI agents . This matters as travel search patterns evolve . It'll also create new ways to combine information digitally , move it around , shift it , recombine it , unlocking , you know , the greater flexibility in how this content is created , delivered , personalized so it makes it an even more powerful factor when layering AI generated search on top of it .

Elie Maalouf: It'll also create new ways to combine information digitally, move it around, shift it, recombine it, unlocking, you know, the greater flexibility in how this content is created, delivered, personalized. So it makes it an even more powerful factor when layering the AI-generated search on top of it. And you're gonna have more engaging types of content, which we don't have today, but we will. Video, 360 images, virtual tours, automated language translation, floor plans, everything to get the attention of guests searching directly or of their agents doing it. And we're gonna begin deploying this platform this year. Second, in Discover, sort of, we're working on trip planning capabilities and partnership with Google. It's not a standalone project for us. It's an evolution of how our guests plan trips and, you know, enabling a more conversational search experience on IHG's owned websites and apps.

Speaker #5: And you're going to have more engaging types of content , which we don't have today . But we will . Video 360 images , virtual tours , automated language translation , floor plans , everything to get the attention a of guests searching directly or of their agents doing it .

Speaker #5: And we're going to begin deploying this platform this year. Second, in Discover, we're working on trip planning capabilities and a partnership with Google.

Speaker #5: It's not a standalone project for us . It's an evolution of how our guests plan trips . And , you know , enabling a more conversational search experience on .

Speaker #5: She's owned websites and apps. So we are going to be leaders ourselves in this, and we're going to be testing these capabilities with external customers later this year.

Elie Maalouf: So we are gonna be leaders ourselves in this. And we're gonna be testing these capabilities with external customers later this year. And then we're adding AI-powered marketing across all of our tools for more targeted, more personalized, you know, meaningful improvements on click-through rates and on ROI. Then, we mentioned in our—in my presentation, a brand new CRM system powered by Salesforce that launches this year for our loyalty platform, unifying all of our customer data in a new cloud-based system. This gives us a seamless view of our loyalty members, all their experiences, whether they're calling a customer care center, checking into a hotel, requesting a copy of their bill. We can provide more personalized experiences, more relevant promotions, better benefits, loyalty rewards faster, more efficiently, and so we can scale our platform across the state.

Speaker #5: And then we're adding AI powered marketing of our tools . For more targeted , more personalized . You know , meaningful improvements on click through rates and on ROI .

Speaker #5: Then we mentioned in our in my presentation , a brand new CRM system powered by Salesforce that launches this year for our loyalty platform , unifying all of our customer data in a new cloud based system .

Speaker #5: This gives us a seamless view of our loyalty . Members , all their experiences , whether they're calling a customer care center , checking into a hotel , requesting a copy of their bill , we can provide more personalized experiences , more relevant promotions , better benefits , loyalty rewards , faster , more efficiently .

Speaker #5: And so we can scale our platform across the state. We're going to take this CRM platform and scale it across the state in 2026.

Elie Maalouf: We're gonna take this CRM platform and scale it across the estate in 2026. And there are many other things that build around these tools to rapidly analyze huge amounts of data, guest feedback, and be more responsive to our guests. Last, you know, we talked about the commercial optimization. This, through the revenue management system that we have launched already, is already creating revenue uplifts. You asked about cost efficiency. You see it in our results in 2025, with our costs being down 3%. We're using the latest technology, new ways of working, automating routine tasks, delivering insights through AI across the business. You know, you've heard us say this technology, together with the process redesigns and greater leverage of our centralized support, it's unlocking a more efficient, more scalable cost base for us.

Speaker #5: And there are many other things that build around these tools to rapidly analyze huge amounts of data, guest feedback, and be more responsive to our guests.

Speaker #5: Last , you know , we talked about the the commercial optimization this through the revenue management system that we have launched already , is already creating revenue uplifts .

Speaker #5: You asked about cost efficiency . You see it in our results in 2025 , with our costs being down 3% . We're using the latest technology , new ways of working , automating routine tasks , delivering insights through AI across the business .

Speaker #5: You know , you've heard us say that this technology , together with the process redesigns in greater leverage of our centralized support . It's unlocking a more efficient , more scalable cost base for us .

Speaker #5: In addition to the step change savings we delivered in 2025 , we believe those are sustainable for the long term . So we think this actually is an opportunity to make our business stronger , more scalable , more efficient , build a deeper and wider moat , and give us a competitive advantage So , Michael , do you want to address Andre's question on segmentation ?

Elie Maalouf: In addition to the step change savings we delivered in 2025, we believe those are sustainable for the long term. So we think this actually is an opportunity to make our business stronger, more scalable, more efficient, build a deeper and wider moat, and give us a competitive advantage. So, Michael, do you want to address Andre's question on segmentation?

Speaker #7: Yeah , sure . Happy to do that . Well , first I'll just start with where we ended up the year as we discussed in my presentation , that business was up 2% .

Michael Glover: Yeah, sure, happy to do that. Well, first, I'll just start with where we ended up the year. As we discussed in my presentation, that business was up 2%, leisure was flat for the group, and groups were up 1%. And that's been very pleasing to see in, as Ellie described, a turbulent year across, particularly the US. And so as we look forward and what we're seeing right now, as we started 2026, we actually saw really solid business demand coming in. Obviously, in the US, that then began to get affected by the storms and the cold weather that hit the US, but overall, still positive and moving forward.

Speaker #7: Leisure was flat for the group, and Groups were up 1%. And that's been very pleasing to see in, as Elie described, a turbulent year across, particularly, the US.

Speaker #7: And so as we look forward, and what we're seeing right now as we started 2026, we actually saw really solid business demand coming in.

Speaker #7: Obviously in the US , that then then began to get infected by the storms and the cold weather that hit the US . But overall , still positive and and moving forward .

Speaker #7: And so then, if you then look at groups and what we see right now, what we see on the books is still almost double digits up year over year.

Michael Glover: If you then look at groups, and what we see right now, what we see on the books is still almost double digits up year-over-year. So it looks like groups are gonna be strong. And remember, particularly in the US, 2025 was lapping against the election year, which had the big events like the Democratic National Convention, the Republican National Convention, and then all the other events that happened as part of the election. So you're now out of that, and so you should have better comparables there as well as you get in it. So we look at groups continuing to be strong. We have less visibility in leisure, as, of course, the window booking windows on that are shorter.

Speaker #7: So it looks like groups are are going to be strong . And remember , particularly in the US , 2025 was lapping against the election year , which had the big events like the Democratic National Convention in the Republican National Convention , and then all the other Events that happen as part of the election .

Speaker #7: So you're now out of that, and so you should have better comparables there as well as you get into it. So we looked at groups continuing to be strong.

Speaker #7: We have less visibility in leisure as of course , the booking windows on that are are shorter . However , there's nothing right now to indicate things would be slowing down there .

Michael Glover: However, there's nothing right now to indicate things would be slowing down there. If you go back to Elie's comments on the different markets and how we're seeing things shake up, it seems to be more positive than the previous year. Now, we're obviously very early in the year, so we'll need to see how that progresses, but that's how we're seeing it shape up as we sit today.

Speaker #7: If you go back to Elie's comments on the different markets and how we're seeing things shake up, it seems to be more positive than the previous year.

Speaker #7: Now , we're obviously very early in the in the year , so we'll need to see how that progresses . But that's how we're seeing it shape up as we sit today .

Speaker #5: Thank you Michael .

Elie Maalouf: Thank you, Michael.

André Juillard [Managing Director, Equity Research: Thank you very much. Maybe one additional question, which is a follow-up. If you consider that you have two-thirds of your clients, which are a part of the loyalty program, what is a reasonable target for you, and what is the proportion of new clients you're welcoming every year?

Speaker #12: Thank you very much . Maybe one one additional question , which is a follow up . If you consider that you have two thirds of your clients , which are part of the loyalty program , what is a reasonable target for you and what is the proportion of new clients you're welcoming every year

Elie Maalouf: We're very pleased with the progress of our IHG One Rewards program, hitting 160 million members. We believe that on a member per room, we're right up there in the leadership across the industry. The important thing is that they're very engaged, too. You know, you go back five years, we're below 50% room nights contribution from our loyalty plan. Now we're over 66% globally, over 72% in the US. That's a remarkable move up. So they're engaged, they're staying more, they're spending more, they're joining our co-brand products. They're spending on those co-brand products. So it's a whole flywheel of virtuous behavior that we're fostering. And so we're not putting a ceiling on what our membership could be. We're not putting a ceiling on what our contribution could be.

Speaker #5: We're very pleased with the progress of our IHG One Rewards program, hitting 160 million members. We believe that, on a member per room...

Speaker #5: We're right up there in the leadership across the industry . The important thing is that they're very engaged to , you know , you go back five years , we're below 50% room nights .

Speaker #5: Contribution from our loyalty plan . Now we're over 66% globally , over 72% in the US . That's a remarkable move up . So they're engaged .

Speaker #5: They're staying more . They're spending more . They're joining our co-brand products . They're spending spending on those Co-brand products . So it's a it's a whole flywheel of of virtuous behavior that , that we're fostering .

Speaker #5: And so we're not putting a ceiling on what our membership could be. We're not putting a ceiling on what our contribution could be.

Speaker #5: We're growing business . Look , we you know , with all of this , we still have only 4% of the rooms in the world with 10% of the pipeline .

Elie Maalouf: We're a growing business. Look, we, you know, with all of this, we still have only 4% of the rooms in the world, with 10% of the pipeline. So as we grow our openings, or grow our brands, or grow our system around the world, the opportunities for greater membership and greater penetration just continue to expand. We're ambitious, but we're not putting a ceiling on it.

Speaker #5: So as we grow , our openings , grow our brands , or grow our system around the world , the the opportunities for greater membership and greater penetration just continue to expand .

Speaker #5: We were ambitious, but we're not putting a ceiling on it.

Speaker #12: Okay. Thank you, Andre.

André Juillard [Managing Director, Equity Research: Okay, thank you.

Elie Maalouf: Andre, and next caller.

Speaker #5: And next caller

Speaker #4: And we have one more question in the queue. This comes from the line of Kate Shell of Bank of America. Please go ahead.

Operator: We have one more question in the queue, and this comes from the line of Kate Sherwood of Bank of America. Please go ahead.

Speaker #13: Great . Thank you very much . Just a quick follow up question from me . Just I wanted to ask about your pipeline .

Kate Sherwood: Great. Thank you very much. Just a quick follow-up question from me. I wanted to ask about your pipeline, obviously 33%, relative pipeline size, and you mentioned over 50% of that is under construction. Is it possible to give some color around, you know, which bit of the pipeline is new build versus conversion? I'm asking that because, you know, in the context of conversion accounting for over 50% of the new openings last year, and obviously, the 4.7% underlying, excluding the Nishan impact, was helped by a bit of, you know, conversion and some conversion deals.

Speaker #13: Obviously , 33% relative pipeline size . And you mentioned over 50% of that is under construction . It is possible is it possible to get some color around , you know , which bit of the pipeline is new build versus conversion ?

Speaker #13: I'm asking that because , you know , in the context of conversion accounting for over 50% of the new openings last year , and obviously the 4.7% underlying excluding Venetian impact was helped by a bit of , you know , conversion and some conversion deals .

Speaker #13: I'm just thinking your visibility into kind of conversion , this year . Are you looking at new conversion deals that could help kind of maybe give you a bit more confidence to really hit that 4.7% kind of run rate and maybe accelerate after that ?

Kate Sherwood: I'm just thinking your visibility into kind of conversion this year, are you looking at new conversion deals that could help kind of maybe give you a bit more confidence to really hit that 4.7% kind of run rate and maybe accelerate after that? Thank you.

Speaker #13: Thank you .

Speaker #5: Well , thank you , Kate . I'll I'll just touch on conversions in general and Michael can take you through the proportions and what that's been .

Elie Maalouf: Thank you, Kate. I'll just touch on conversions in general, and Michael can take you through the proportions and what that's been. I just wanna address sort of conversion opportunity and tell you that what we firmly believe is that the conversion opportunity is not as limited as some in, you know, in the industry might have mentioned, analyst industry might have mentioned. It is not, for us, strictly converting from independence. The addressable market is much larger. Most of our conversions actually come from branded operators, whether large, small, or regional, it's owners who see the strength of our enterprise, the strength of our brand portfolio, the strength of our support of our people, and want to join a stronger system.

Speaker #5: I just want to address sort of conversion opportunity and and tell you that what we firmly believe is that the conversion opportunity is not as limited as some , you know , in the industry might have mentioned analyst industry might have mentioned it is not for us strictly converting from independence .

Speaker #5: The addressable market is much larger. Most of our conversions actually come from branded operators, whether large or small, or regional.

Speaker #5: It's owners who see the strength of our enterprise, the strength of our brand portfolio, the strength of our support of our people, and want to join a stronger system.

Speaker #5: So we don't think it's limited , just independents . And therefore we think that the addressable market is very large . And we have now more conversion brands and products with the addition today of noted collection , the success of Voco vignette of Garner , all of which are way ahead of our initial projections and are many more markets than we thought they would be early on .

Elie Maalouf: So we don't think it's limited just independents, and therefore, we think that the addressable market is very large, and we have now more conversion brands and products with the addition today of Noted Collection, the success of voco, Vignette, of Garner, all of which are way ahead of our initial projections, and are many more markets than we thought they would be early on. Many of our conversions actually come from our non-specific, you know, conversion brand. So we can convert across most of our brand portfolio already, and we have more dedicated conversion brands, and the addressable market is broad. And it's not just US, it's actually EMEA, where there's a large, you know, the largest unbranded proportion of hotels, and in China, conversions are picking up.

Speaker #5: So, and many of our conversions actually come from our non, you know, specific conversion brand. So we can convert across most of our brand portfolio already.

Speaker #5: And we have more dedicated conversion brands and addressable market is broad . And it's not just the US . It's actually EMEA where there's a large you know the largest unbranded proportion of hotels .

Speaker #5: And in China, conversions are picking up. So we think there's a lot of runway in conversions. And we're not looking at it as a percentage of signings and openings.

Elie Maalouf: So we think there's a lot of runway in conversions, and we're not looking at it as a percentage of signings and openings. Actually, I don't really care about the percentage; what I care is that both grow. I care that new build signings grow, and they grew globally, and that, you know, conversions grow, and they grow in absolute figures, and the proportions can fall wherever they may. Michael, let me turn it over to you for the details.

Speaker #5: Actually, I don't really care about the percentage. What I care about is that both grow. I care that new build signings grow, and they grew globally.

Speaker #5: And that , you conversions grow and they grow and absolute figures and the and the proportions can fall wherever they may . Michael , let me turn it over to you for the detail .

Speaker #7: Sure . Thanks , Ellie . Just to give you the numbers here , you know , I think it may be a little surprising to say and to hear that only 20% of our pipeline is typically conversion around that .

Michael Glover: Sure. Thanks, Eli. Just to give you the numbers here, you know, I think it may be a little surprising to say and to hear that only 20% of our pipeline is typically conversion around that, but there's logic behind that. It's because they come in and out of the pipeline much quicker, as obviously it takes not as much time to get those open as it does a new build. But if you look at 2025, just to give you a feel of that, if you look at our openings, roughly 40% of those openings around the world were conversions, with roughly 54% being new build, and then there were some other items in there as well.

Speaker #7: But there's logic behind that. It's because they come in and out of the pipeline much quicker, as obviously it does not take as much time to get those open as it does a new build.

Speaker #7: And so but if you look at 2025 , just to give you a feel of that , if you look at our openings , roughly 40% of those openings around the world were conversions with 50 roughly , roughly 54% being new build .

Speaker #7: And then there were some other items in there as well. And then, of course, our signings were 52% conversion and 43% new build.

Michael Glover: And then, of course, our signings were 52% conversion and 43% new build. So the reason you see those higher numbers in the signings and openings is that they come out quicker. And so that's why we would see overall the pipeline having a smaller percentage over time than what you see opening and signing.

Speaker #7: So, the reason you see those higher numbers in the signings and openings is that they come out quicker. And so that's why we would see, overall, the pipeline having a smaller percentage over time than what you see in openings and signings.

Speaker #5: Well, thank you. Thank you, Kate.

Elie Maalouf: Well, thank you. Thank you, Jason.

Speaker #4: And this does conclude our Q&A session. I would like to hand the call back over to Elie for closing remarks.

Operator: This does conclude our Q&A session. I would like to hand the call back over to Elie for closing remarks.

Speaker #5: Thank you everyone . It's been great to connect with you today . We're very proud of what our teams have accomplished in 2025 , and we remain confident in our ability to continue delivering on our strategy and driving shareholder value creation , going forward .

Elie Maalouf: Thank you, everyone. It's been great to connect with you today. We're very proud of what our teams have accomplished in 2025, and we remain confident in our ability to continue delivering on our strategy and driving shareholder value creation going forward. Our next market communication will be our Q1 trading update on Thursday, 7 May. Thank you for your time and your interest in IHG, and I look forward to catching up with you soon.

Speaker #5: Our next market communication will be our first quarter trading update on Thursday, the 7th of May. Thank you for your time and your interest in IHG.

Full Year 2025 InterContinental Hotels Group PLC Earnings Call - Pre-Recorded

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