# EDGAR Filing Document

**Accession Number:** 0000858446
**File Stem:** 0000858446-26-000010
**Filing Date:** 2026-2
**Character Count:** 1969936
**Document Hash:** 901f427e6f6baaaf51e3661dd3d47336
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000858446-26-000010.hdr.sgml**: 20260226

**ACCESSION NUMBER**: 0000858446-26-000010

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 641

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260226

**DATE AS OF CHANGE**: 20260226

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** INTERCONTINENTAL HOTELS GROUP PLC /NEW/
- **CENTRAL INDEX KEY:** 0000858446
- **STANDARD INDUSTRIAL CLASSIFICATION:** HOTELS & MOTELS [7011]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 250420260
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-10409
- **FILM NUMBER:** 26681784

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 1 WINDSOR DIALS, ARTHUR ROAD, WINDSOR
- **CITY:** BERKSHIRE
- **NON US STATE TERRITORY:** BERKSHIRE
- **PROVINCE COUNTRY:** X0
- **ZIP:** X0 SL4 1RS
- **BUSINESS PHONE:** 4045513500

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 1 WINDSOR DIALS, ARTHUR ROAD, WINDSOR
- **CITY:** BERKSHIRE
- **NON US STATE TERRITORY:** BERKSHIRE
- **PROVINCE COUNTRY:** X0
- **ZIP:** X0 SL4 1RS

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SIX CONTINENTS PLC
- **DATE OF NAME CHANGE:** 19950531

?xml version='1.0' encoding='ASCII'? ihg-20251231

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

______________________

## Form 20-F
______________________

**(Mark One)**

**☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ACT OF 1934**

**or**

**☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended December 31, 2025**

**or**

**☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**or**

**☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ACT OF 1934**

**Commission file number: 1-10409**

_____________________

**InterContinental Hotels Group PLC**

**(Exact name of Registrant as specified in its charter)**

_____________________

**England and Wales**

**(Jurisdiction of incorporation or organization)**

**1 Windsor Dials, Arthur Road, Windsor, Berkshire, SL4 1RS**

**(Address of principal executive oﬃces)**

**Nicolette Henfrey**

**General Counsel and Company Secretary**

**+44 (0)1753 972000**

**companysecretariat@ihg.com**

Securities registered or to be registered pursuant to Section 12(b) of the Act.

---

| | |
|:---|:---|
| **<u>Title of each class</u>** | **<u>Name of each exchange on which registered</u>** |
| **American Depositary Shares**<br> **IHG** | **New York Stock Exchange** |
| **Ordinary Shares of 20** <sup>340</sup> **⁄ 399 pence each**<br> **IHG** | **New York Stock Exchange\*** |

---

_____________

\*Not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and

Exchange Commission.

**Securities registered or to be registered pursuant to Section 12(g) of the Act.**

**None**

**Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.**

**None**

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual

report:

---

| | |
|:---|:---|
| **Ordinary Shares of 20** <sup>340</sup> **⁄ 399 pence each** | **164711854** |

---

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act: Yes 🗷 No ☐

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934: Yes ☐ No 🗷

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of

1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such

filing requirements for the past 90 days: Yes 🗷 No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant

to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to

submit such files). Yes 🗷 No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth

company. See definition of "large accelerated filer, "accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer🗷

Non-accelerated filer☐

Accelerated filer☐

Emerging growth company☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has

elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to

Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the eﬀectiveness of its

internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b) by the registered public accounting firm

that prepared or issued its audit report. 🗷

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included

in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation

received by any of the registrant's executive oﬃcers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

---

| | | |
|:---|:---|:---|
| U.S. GAAP ☐ | International Financial Reporting Standards as issued by <br>the International Accounting Standards Board 🗷<br>| Other ☐ |

---

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected

to follow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ Item 17 ☐ Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

Yes ☐ No 🗷

(Applicable only to issuers involved in bankruptcy proceedings during the past five years).

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities

Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

☐ Yes☐ No

---

| | | |
|:---|:---|:---|
| Auditor Firm Id: 876 | Auditor Name: PricewaterhouseCoopers LLP | Auditor Location: Birmingham, United Kingdom |

---

![OFC_main image.jpg](ihg-20251231_g1.jpg)

Annual Report and Form 20-F 2025

**True Hospitality** 

**for Good**

---

| | | |
|:---|:---|:---|
| 2 | IHG | Annual Report and Form 20-F 2025 |

---

Welcome to IHG® Hotels & Resorts<br>

In this year's report…<br>

---

| | |
|:---|:---|
| **Strategic Report** |  |
| [Chair's statement](#i8de52f7da8cb42fcba7bb475e53ba9b6_10) | [4](#i8de52f7da8cb42fcba7bb475e53ba9b6_10) |
| [Our brands](#i8de52f7da8cb42fcba7bb475e53ba9b6_13) | [6](#i8de52f7da8cb42fcba7bb475e53ba9b6_13) |
| [2025 in review](#i8de52f7da8cb42fcba7bb475e53ba9b6_16) | [8](#i8de52f7da8cb42fcba7bb475e53ba9b6_16) |
| [Chief Executive Officer's review](#i8de52f7da8cb42fcba7bb475e53ba9b6_19) | [18](#i8de52f7da8cb42fcba7bb475e53ba9b6_19) |
| [Industry overview](#i8de52f7da8cb42fcba7bb475e53ba9b6_22) | [20](#i8de52f7da8cb42fcba7bb475e53ba9b6_22) |
| [Trends shaping our industry](#i8de52f7da8cb42fcba7bb475e53ba9b6_25) | [22](#i8de52f7da8cb42fcba7bb475e53ba9b6_25) |
| [Our business model](#i8de52f7da8cb42fcba7bb475e53ba9b6_28) | [24](#i8de52f7da8cb42fcba7bb475e53ba9b6_28) |
| [Our strategy](#i8de52f7da8cb42fcba7bb475e53ba9b6_31) | [30](#i8de52f7da8cb42fcba7bb475e53ba9b6_31) |
| [Our key performance](#i8de52f7da8cb42fcba7bb475e53ba9b6_37)<br>[indicators (KPIs)](#i8de52f7da8cb42fcba7bb475e53ba9b6_37)<br>| [40](#i8de52f7da8cb42fcba7bb475e53ba9b6_37) |
| [Our stakeholders](#i8de52f7da8cb42fcba7bb475e53ba9b6_40) | [44](#i8de52f7da8cb42fcba7bb475e53ba9b6_40) |
| [Our](#i8de52f7da8cb42fcba7bb475e53ba9b6_43)approach to risk <br>and resilience<br>| [46](#i8de52f7da8cb42fcba7bb475e53ba9b6_43) |
| [Our principal risks](#i8de52f7da8cb42fcba7bb475e53ba9b6_46)<br>[and uncertainties](#i8de52f7da8cb42fcba7bb475e53ba9b6_46)<br>| [48](#i8de52f7da8cb42fcba7bb475e53ba9b6_46) |
| [Being a responsible business](#i8de52f7da8cb42fcba7bb475e53ba9b6_49) | [54](#i8de52f7da8cb42fcba7bb475e53ba9b6_49) |
| Our c[ulture](#i8de52f7da8cb42fcba7bb475e53ba9b6_52) | [56](#i8de52f7da8cb42fcba7bb475e53ba9b6_52) |
| [Our people](#i8de52f7da8cb42fcba7bb475e53ba9b6_58) | [62](#i8de52f7da8cb42fcba7bb475e53ba9b6_58) |
| [Our communities](#i8de52f7da8cb42fcba7bb475e53ba9b6_61) | [68](#i8de52f7da8cb42fcba7bb475e53ba9b6_61) |
| [Our planet](#i8de52f7da8cb42fcba7bb475e53ba9b6_64) | [70](#i8de52f7da8cb42fcba7bb475e53ba9b6_64) |
| [Managing climate risks](#i8de52f7da8cb42fcba7bb475e53ba9b6_70)<br>[and opportunities](#i8de52f7da8cb42fcba7bb475e53ba9b6_70)<br>| [77](#i8de52f7da8cb42fcba7bb475e53ba9b6_70) |
| [Streamlined Energy and](#i8de52f7da8cb42fcba7bb475e53ba9b6_73)<br>[Carbon Reporting (SECR)](#i8de52f7da8cb42fcba7bb475e53ba9b6_73) <br>| [82](#i8de52f7da8cb42fcba7bb475e53ba9b6_73) |
| [Chief Financial Officer's review](#i8de52f7da8cb42fcba7bb475e53ba9b6_76) | [85](#i8de52f7da8cb42fcba7bb475e53ba9b6_76) |
| [Performance](#i8de52f7da8cb42fcba7bb475e53ba9b6_79) | [86](#i8de52f7da8cb42fcba7bb475e53ba9b6_79) |
| [Group](#i8de52f7da8cb42fcba7bb475e53ba9b6_82) | [86](#i8de52f7da8cb42fcba7bb475e53ba9b6_82) |
| [Americas](#i8de52f7da8cb42fcba7bb475e53ba9b6_103) | [94](#i8de52f7da8cb42fcba7bb475e53ba9b6_103) |
| [Europe, Middle East,](#i8de52f7da8cb42fcba7bb475e53ba9b6_115)<br>[Asia & Africa (EMEAA)](#i8de52f7da8cb42fcba7bb475e53ba9b6_115)<br>| [98](#i8de52f7da8cb42fcba7bb475e53ba9b6_115) |
| [Greater China](#i8de52f7da8cb42fcba7bb475e53ba9b6_127) | [102](#i8de52f7da8cb42fcba7bb475e53ba9b6_127) |
| [Central](#i8de52f7da8cb42fcba7bb475e53ba9b6_139) | [106](#i8de52f7da8cb42fcba7bb475e53ba9b6_139) |
| [Key performance measures](#i8de52f7da8cb42fcba7bb475e53ba9b6_142)<br>[and Non-GAAP measures](#i8de52f7da8cb42fcba7bb475e53ba9b6_142)<br>| [107](#i8de52f7da8cb42fcba7bb475e53ba9b6_142) |
| [Viability statement](#i8de52f7da8cb42fcba7bb475e53ba9b6_145) | [113](#i8de52f7da8cb42fcba7bb475e53ba9b6_145) |

---

---

| | |
|:---|:---|
| **Governance** | **Governance** |
| [Chair's overview](#i8de52f7da8cb42fcba7bb475e53ba9b6_151) | [116](#i8de52f7da8cb42fcba7bb475e53ba9b6_151) |
| [Changes to the Board,](#i22404849fa8840f693f37c64fedc41ff_0-0-4-3-345997)<br>[and its Committees, and](#i22404849fa8840f693f37c64fedc41ff_0-0-4-3-345997)<br>[Executive Committee](#i22404849fa8840f693f37c64fedc41ff_0-0-4-3-345997)<br>| [117](#i22404849fa8840f693f37c64fedc41ff_0-0-4-3-345997) |
| [Board and Committee](#i50fa970a9a22443d9c54ff79ff131daa_0-0-2-1-345997)<br>[membership and](#i50fa970a9a22443d9c54ff79ff131daa_0-0-2-1-345997)<br>[attendance](#i50fa970a9a22443d9c54ff79ff131daa_0-0-2-1-345997) [in 202](#i50fa970a9a22443d9c54ff79ff131daa_0-0-2-1-345997)5<br>| [117](#i50fa970a9a22443d9c54ff79ff131daa_0-0-2-1-345997) |
| [Our Board of Directors](#i8de52f7da8cb42fcba7bb475e53ba9b6_154) | [118](#i8de52f7da8cb42fcba7bb475e53ba9b6_154) |
| [Our Executive Committee](#i8de52f7da8cb42fcba7bb475e53ba9b6_157) | [120](#i8de52f7da8cb42fcba7bb475e53ba9b6_157) |
| [Governance structure](#i8de52f7da8cb42fcba7bb475e53ba9b6_160) | [122](#i8de52f7da8cb42fcba7bb475e53ba9b6_160) |
| [Board activities](#i8de52f7da8cb42fcba7bb475e53ba9b6_163) | [123](#i8de52f7da8cb42fcba7bb475e53ba9b6_163) |
| [Key areas of focus](#i8de52f7da8cb42fcba7bb475e53ba9b6_166)<br>[during the year](#i8de52f7da8cb42fcba7bb475e53ba9b6_166)<br>| [123](#i8de52f7da8cb42fcba7bb475e53ba9b6_166) |
| [Key matters discussed in 2025](#i8de52f7da8cb42fcba7bb475e53ba9b6_169)<br>[and Section 172 statement](#i8de52f7da8cb42fcba7bb475e53ba9b6_169)<br>| [124](#i8de52f7da8cb42fcba7bb475e53ba9b6_169) |
| [Our shareholders and investors](#i8de52f7da8cb42fcba7bb475e53ba9b6_172) | [126](#i8de52f7da8cb42fcba7bb475e53ba9b6_172) |
| [Board](#i8de52f7da8cb42fcba7bb475e53ba9b6_175)performance review | [127](#i8de52f7da8cb42fcba7bb475e53ba9b6_175) |
| [Audit Committee Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_178) | [128](#i8de52f7da8cb42fcba7bb475e53ba9b6_178) |
| [Responsible Business](#i8de52f7da8cb42fcba7bb475e53ba9b6_181)<br>[Committee Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_181)<br>| [134](#i8de52f7da8cb42fcba7bb475e53ba9b6_181) |
| [Nomination Committee Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_184) | [136](#i8de52f7da8cb42fcba7bb475e53ba9b6_184) |
| [Directors' Remuneration Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_187) | [138](#i8de52f7da8cb42fcba7bb475e53ba9b6_187) |
| [Statement of compliance](#i8de52f7da8cb42fcba7bb475e53ba9b6_202) | [162](#i8de52f7da8cb42fcba7bb475e53ba9b6_202) |
| **Group Financial Statements** | **Group Financial Statements** |
| [Statement of Directors'](#i8de52f7da8cb42fcba7bb475e53ba9b6_208)<br>[Responsibilities](#i8de52f7da8cb42fcba7bb475e53ba9b6_208)<br>| [165](#i8de52f7da8cb42fcba7bb475e53ba9b6_208) |
| [Independent Auditors' US Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_214) | [174](#i8de52f7da8cb42fcba7bb475e53ba9b6_214) |
| [Group Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_217) | [176](#i8de52f7da8cb42fcba7bb475e53ba9b6_217) |
| [Group income statement](#i8de52f7da8cb42fcba7bb475e53ba9b6_217) | [176](#i8de52f7da8cb42fcba7bb475e53ba9b6_217) |
| [Group statement of](#i8de52f7da8cb42fcba7bb475e53ba9b6_220)<br>[comprehensive income](#i8de52f7da8cb42fcba7bb475e53ba9b6_220) <br>| [177](#i8de52f7da8cb42fcba7bb475e53ba9b6_220) |
| [Group statement](#i8de52f7da8cb42fcba7bb475e53ba9b6_223)<br>[of changes in equity](#i8de52f7da8cb42fcba7bb475e53ba9b6_223)<br>| [178](#i8de52f7da8cb42fcba7bb475e53ba9b6_223) |
| [Group statement](#i8de52f7da8cb42fcba7bb475e53ba9b6_226)<br>[of financial position](#i8de52f7da8cb42fcba7bb475e53ba9b6_226)<br>| [181](#i8de52f7da8cb42fcba7bb475e53ba9b6_226) |
| [Group statement of cash flows](#i8de52f7da8cb42fcba7bb475e53ba9b6_229) | [182](#i8de52f7da8cb42fcba7bb475e53ba9b6_229) |
| [Accounting policies](#i8de52f7da8cb42fcba7bb475e53ba9b6_232) | [183](#i8de52f7da8cb42fcba7bb475e53ba9b6_232) |
| [Notes to the Group](#i8de52f7da8cb42fcba7bb475e53ba9b6_235)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_235)<br>| [195](#i8de52f7da8cb42fcba7bb475e53ba9b6_235) |

---

---

| | |
|:---|:---|
| **Additional Information** |  |
| [Other financial information](#i8de52f7da8cb42fcba7bb475e53ba9b6_391) | [250](#i8de52f7da8cb42fcba7bb475e53ba9b6_391) |
| [Directors' Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_418) | [260](#i8de52f7da8cb42fcba7bb475e53ba9b6_418) |
| [Group information](#i8de52f7da8cb42fcba7bb475e53ba9b6_421) | [264](#i8de52f7da8cb42fcba7bb475e53ba9b6_421) |
| [Shareholder information](#i8de52f7da8cb42fcba7bb475e53ba9b6_454) | [280](#i8de52f7da8cb42fcba7bb475e53ba9b6_454) |
| [Schedule 1: Condensed Parent](#i8de52f7da8cb42fcba7bb475e53ba9b6_472)<br>[Company financial information](#i8de52f7da8cb42fcba7bb475e53ba9b6_472)<br>| [288](#i8de52f7da8cb42fcba7bb475e53ba9b6_472) |
| [Exhibits](#i8de52f7da8cb42fcba7bb475e53ba9b6_475) | [292](#i8de52f7da8cb42fcba7bb475e53ba9b6_475) |
| [Forward-looking statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_478) | [293](#i8de52f7da8cb42fcba7bb475e53ba9b6_478) |
| [Form 20-F cross-reference guide](#i8de52f7da8cb42fcba7bb475e53ba9b6_481) | [294](#i8de52f7da8cb42fcba7bb475e53ba9b6_481) |
| [Glossary](#i8de52f7da8cb42fcba7bb475e53ba9b6_484) | [297](#i8de52f7da8cb42fcba7bb475e53ba9b6_484) |
| [Useful information](#i8de52f7da8cb42fcba7bb475e53ba9b6_487) | [300](#i8de52f7da8cb42fcba7bb475e53ba9b6_487) |
| [Contacts](#i8de52f7da8cb42fcba7bb475e53ba9b6_490) | [302](#i8de52f7da8cb42fcba7bb475e53ba9b6_490) |

---

![](ihg-20251231_g2.gif)

![](ihg-20251231_g2.gif)

The Strategic Report on pages

4 to 114 was approved by the

Board on 16 February 2026.

Nicolette Henfrey

Company Secretary

Front cover image:

Ciel Dubai Marina, Vignette™ Collection,

Dubai, United Arab Emirates.

![IFC_laptop_with_bgrd.jpg](ihg-20251231_g3.jpg)

**IHG® Hotels & Resorts is a global hospitality company with** 

**20 hotel brands, one of the industry's largest loyalty programmes,** 

**over 6,900 open hotels in more than 100 countries, and almost** 

**2,300 hotels in our development pipeline.**

---

| | |
|:---|:---|
| **+** | Keep up to date and find out more at: [ihgplc.com/en/investors](ihgplc.com/en/investors) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 3 |
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---

![Intro_main image.jpg](ihg-20251231_g4.jpg)

The past year was packed

with landmark moments:

we opened a record number

of hotels, surpassed one million

open rooms, launched

new technology and added

another brand to our portfolio.

It was also one of elevating

guest experiences, deepening

support for colleagues,

extending care across our

communities and making our

hotels more sustainable to

ensure 2025 was about…

InterContinental Bora Bora Le Moana Resort,

Bora Bora, French Polynesia.

---

| | | |
|:---|:---|:---|
| 4 | IHG | Annual Report and Form 20-F 2025 |

---

Chair's statement<br>

**Celebrating progress, shaping** 

**what's next**

![Chair_headshot.jpg](ihg-20251231_g5.jpg)

"During my time spent with our many

stakeholders in 2025, I heard first-hand about

the impact of our work and can see how

this translates into a strong track record

of trust and long-term value creation for

investors and all other IHG stakeholders."

Deanna Oppenheimer

**Non-Executive Chair**

Important strategic progress was made

in 2025, with the power of IHG® Hotels

& Resorts' global scale, resilient business

model and talented colleagues driving

a strong financial performance, system

size growth and further enterprise-wide

enhancements.

These achievements, made against

the backdrop of a challenging economic

and geopolitical environment, underline

the success of IHG's long-standing

strategy to develop a broad portfolio

of distinct brands that deliver great

guest experiences and strong owner

returns, allied to a resilient, asset-light,

fee-based, predominantly franchised

business model. This approach forms a

strong base from which to build global

scale, attract millions of guests, form

enduring relationships with thousands

of owners, and continually invest in

core aspects of our offer.

Importantly, it is a model that is highly cash

generative and enables reinvestment in

critical areas. This has further strengthened

IHG in 2025, enhancing performance,

efficiency, competitiveness and growth,

alongside creating surplus funds to

return to shareholders. This includes

elevating the quality and operation of

existing brands, such as our Holiday Inn®

Brand Family, and meeting the evolving

needs of guests and owners with

the acquisition of Ruby™ and the

development of Noted Collection™,

our new premium collection brand,

which we recently launched to build on

the successes of our other collection

and conversion brands. The ability

to properly harness transformational

technological change is also essential

in driving competitive advantage and

remains a key focus in our efforts to

deliver richer guest experiences and

stronger owner returns.

Critical to our progress is close

collaboration and regular dialogue

throughout the year with our

thousands of owners and through

the IHG Owners Association.

As we grow, we place great importance

on ensuring we do so sustainably,

reflecting our values as a business and

those of our stakeholders. I was pleased

to see further progress made during

the year on our Journey to Tomorrow

responsible business plan, guided by

our purpose of providing True Hospitality

for Good – a commitment to care for

our people and the world around us that

helps ensure our hotels not only bring

prosperity to thousands of communities

but also care where it is needed most.

Equally, it is also important we acknowledge

areas where we can drive even greater

impact, and we will be reviewing

and updating our plans and approach

in 2026.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
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| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Colleague engagement**

IHG's overall progress is a testament

to the in-depth, shared understanding

colleagues have of the Company's

strategic direction and focus areas,

which was reflected in various feedback

forums, including the work of our

designated Voice of the Employee

Non-Executive Director and IHG's

Colleague HeartBeat survey.

I saw the impact of this alignment

throughout the year, including when

visiting Dubai in the United Arab Emirates,

where the Board and I toured several of

IHG's world-class properties, and assessed

plans to capitalise on the wider region's

significant growth opportunities. This is

echoed across high-value markets globally

and during my time spent with our many

stakeholders in 2025, I heard first-hand

about the impact of our work and can

see how this translates into a strong

track record of trust and long-term value

creation for investors and all other IHG

stakeholders. On behalf of the Board,

I would like to congratulate Elie and his

executive team for delivering success

across so many fronts this year.

**The role of the Board**

Amid a shifting global landscape,

strong governance is fundamental to

the success of any business, as is the

flexibility to adapt thinking and plans

while progressing towards longer-term

ambitions. The Board's role is to support

and constructively challenge the Executive

Committee on how we prioritise, manage

risk, grow and generate future value.

Focus areas in 2025 spanned brand

growth; the effective and responsible use

of artificial intelligence; in-depth analysis

of our operations and performance across

our three regions; talent attraction and

Company culture; and our approach to

cybersecurity risk management, including

assessing threats and recovery plans.

A key aspect of my role as Chair is

to encourage the Board's ongoing

development and to oversee changes

that bring new expertise and insights,

reflecting the evolving nature of the

business and stakeholder expectations.

During the year, we appointed Nicholas

Cadbury as Non-Executive Director,

who will join the Board on 1 March 2026.

Nicholas brings extensive experience

in global hospitality and the travel sector,

alongside expertise in finance, technology,

sustainability and commercial property.

---

| |
|:---|
| 125.9¢<br>Final dividend proposed for 2025 <br>(2024: 114.4¢).<br>|
| 184.5¢<br>Total dividend proposed for 2025 <br>(2024: 167.6¢).<br>|
| >$1.1bn<br>returned to shareholders through share <br>buyback programme (completed in <br>December 2025) and ordinary dividends.<br>|
| $950m<br>share buyback programme approved <br>for 2026.<br>|

---

As part of a sustained focus on talent

within the business, IHG revised its

Directors' Remuneration Policy during

2025 following a comprehensive review

of arrangements for Executive Directors

and other senior roles. This was a priority

to help secure talent that has been highly

effective in advancing strategic priorities

and creating shareholder value. We

undertook several rounds of shareholder

consultation and carefully considered

feedback before presenting resolutions

for our report and revised policy at

the 2025 AGM. We were pleased

with shareholders' support of these

resolutions, which provide a robust

framework for attracting and retaining

senior talent in the future.

We also announced one leadership

change during the year, with Tejas

Katre succeeding Wayne Hoare as Chief

Human Resources Officer, following

Wayne's retirement at the end of 2025.

I would like to thank Wayne for his

tremendous contribution, particularly

for his role in enriching IHG's culture

to position the Company for long-term

success. I would also like to congratulate

Tejas on his appointment. Succession

planning and talent development have

been hallmarks of IHG for many years

and Tejas brings substantial experience

to the role, including a strong track

record of excellent results during his

eight years with IHG in global and

EMEAA-based HR positions.

**Shareholder returns**

Following a strong financial performance

this year, I am pleased to announce

the Board is recommending a final

dividend of 125.9 cents per ordinary share,

an increase of 10% on the final dividend

for 2024. An interim dividend of 58.6 cents

was paid in October 2025, taking the

total dividend for the year to 184.5 cents,

representing a year-on-year increase

of 10% for the fourth consecutive year.

We continued our strong track record

of delivering shareholder returns by

successfully completing a $900m share

buyback programme in December 2025,

taking the total returns for the year

to over $1.1bn. The Board has approved

a further share buyback of $950m over

the course of 2026, which will result in

cumulative returns of more than $5bn

over five years. The Board expects IHG's

business model to continue its long-term

track record of generating substantial

capacity to enable investment plans

that drive growth, fund a sustainably

growing ordinary dividend, and return

surplus capital to our shareholders.

Looking ahead, we must remain alive

to a shifting global landscape shaped

by macro-economic and geopolitical

uncertainty and conflict in parts of

the world. What remain unchanged,

however, are the industry's long-term

growth drivers, such as people's

enduring desire to travel, rising GDP

in emerging markets and increasing

appetite for branded hotel players,

all of which are contributing to record

levels of travel. We have strategically

positioned the business to capture

this demand, with investment across

our enterprise designed to drive

both guest and owner preference

for IHG and, in turn, the responsible

growth of our brands in key markets

and segments.

As ever, our success has been driven

by dedicated, passionate colleagues

throughout our hotels and offices,

who put guests and owners at the

heart of our plans. I would like to

thank them for all their hard work

and commitment and our owners for

their continued confidence in IHG.

![DeannaOppenheimer_sig.jpg](ihg-20251231_g6.jpg)

Deanna Oppenheimer

Non-Executive Chair

---

| | | |
|:---|:---|:---|
| 6 | IHG | Annual Report and Form 20-F 2025 |

---

Our brands<br>

**A brand for**

**everyone** 

A broad selection of brands

and an estate of more than

6,900 hotels thoughtfully

designed to meet the needs

of a range of guests and

owners globally.

Complementing our portfolio of

established brands, we have launched

or acquired 10 new brands in the

past decade to increase the breadth

of our offer across segments, from

Essentials to Luxury & Lifestyle.

The breadth of our portfolio and strength

of our wider enterprise allows us to meet

growing demand for branded hotels

and is accelerating our expansion in

high-growth markets, as guests seek

new experiences and owners look

to use the advantages of our global

scale and systems.

This demand includes increasing

appetite for quicker-to-market

conversions, which generated over

50% of all room openings in 2025, as

independent owners seek fast access

to IHG's scale and enterprise platform,

including our digital channels, IHG

One Rewards loyalty programme,

hotel technology and IHG Hotels

& Resorts masterbrand.

Illustrating the confidence owners

have in IHG, in 2025 we opened

a record 443 hotels and signed

another 694 to take our pipeline

to 2,292 properties.

---

| |
|:---|
| Our masterbrand and <br>loyalty programme<br>|
| Our masterbrand is increasing the <br>visibility and appeal of our brands and <br>capturing demand for our hotels, with <br>our strategy putting it in more places, <br>more often. This includes our global <br>Guest How You Guest marketing <br>campaign, strategic partnerships <br>and 'By IHG' brand endorsement – <br>all of which combine to lift awareness <br>and brand favourability.<br>|
| Our IHG One Rewards loyalty <br>programme is critical to our business <br>and future growth. In 2025, the <br>programme grew to over 160 million <br>members, who booked 66% of all <br>room nights globally.<br>|

---

![Brand_Image2.jpg](ihg-20251231_g7.jpg)

![IHG_Primary_Centred_Logo_White_CMYK.gif](ihg-20251231_g8.gif)

![](ihg-20251231_g9.gif)

---

| | |
|:---|:---|
| **+** | More on pages 34 to 35. |

---

![Brand_Image3.jpg](ihg-20251231_g10.jpg)

![Brand_Image1.jpg](ihg-20251231_g11.jpg)

![IHG_One_Rewards_Logo_White_CMYK.gif](ihg-20251231_g12.gif)

---

| | |
|:---|:---|
| **+** | More on pages 36 to 37. |

---

InterContinental Indianapolis, US.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 7 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Luxury &** <br>**Lifestyle** |  |  |  |  |  |  |
| **Luxury &** <br>**Lifestyle** | 27 | 11 | 242 | 31 | 85 | 191 |
| **Luxury &** <br>**Lifestyle** | open | open | open | open | open | open |
| **Luxury &** <br>**Lifestyle** | | | | | | |
| **Luxury &** <br>**Lifestyle** | 39 | 12 | 104 | 45 | 69 | 131 |
| **Luxury &** <br>**Lifestyle** | pipeline | pipeline | pipeline | pipeline | pipeline | pipeline |

---

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![REGENT Logo_pms2182.gif](ihg-20251231_g14.gif)

![Six Senses Logo_pms2182.gif](ihg-20251231_g15.gif)

![InterContinental logo_pms2182.gif](ihg-20251231_g16.gif)

![Hotel Indigo Logo_pms2182.gif](ihg-20251231_g17.gif)

![Vignette Collection Logo_pms2182.gif](ihg-20251231_g18.gif)

![Kimpton Logo2024_pms2182.gif](ihg-20251231_g19.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Premium** |  |  |  |  |  |
| **Premium** | 124 | 17 | 24 | 424 | 46 |
| **Premium** | open | open | open | open | open |
| **Premium** | | | | | |
| **Premium** | 108 | 19 | 23 | 154 | 26 |
| **Premium** | pipeline | pipeline | pipeline | pipeline | pipeline |

---

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![Hualuxe Logo_pms2182.gif](ihg-20251231_g20.gif)

![Crowne Plaza Logo_pms2182_NEW.gif](ihg-20251231_g21.gif)

![Voco Logo_pms2182.gif](ihg-20251231_g22.gif)

![Ruby_Logo.jpg](ihg-20251231_g23.jpg)

![Even Logo_pms2182.gif](ihg-20251231_g24.gif)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Essentials** |  |  |  |  |
| **Essentials** | 1,247 | 3,292 | 89 | 87 |
| **Essentials** | open | open | open | open |
| **Essentials** | | | | |
| **Essentials** | 295 | 655 | 77 | 116 |
| **Essentials** | pipeline | pipeline | pipeline | pipeline |

---

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![Holiday Inn Secondary Logo_pms2182.gif](ihg-20251231_g25.gif)

![Avid Logo_pms2182.gif](ihg-20251231_g26.gif)

![Holiday Inn Express Logo_pms2182.gif](ihg-20251231_g27.gif)

![Garner Logo_pms2182.gif](ihg-20251231_g28.gif)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Suites** |  |  |  |  |
| **Suites** | 9 | 350 | 26 | 423 |
| **Suites** | open | open | open | open |
| **Suites** | | | | |
| **Suites** | 56 | 150 |  | 194 |
| **Suites** | pipeline | pipeline | pipeline | pipeline |

---

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![](ihg-20251231_g13.gif)

![Candlewood Suites Logo_pms2182.gif](ihg-20251231_g29.gif)

![Atwell Logo_small use_pms2182.gif](ihg-20251231_g30.gif)

![Staybridge Logo_pms2182.gif](ihg-20251231_g31.gif)

![Holiday Inn Club Vacations Logo_pms2182.gif](ihg-20251231_g32.gif)

---

| | |
|:---|:---|
| **Exclusive** <br>**Partners** |  |
| **Exclusive** <br>**Partners** | 62 |
| **Exclusive** <br>**Partners** | open |
| **Exclusive** <br>**Partners** | 5 |
| **Exclusive** <br>**Partners** | pipeline |

---

![](ihg-20251231_g13.gif)

![Iberostar Logo_pms2182.gif](ihg-20251231_g33.gif)

---

| | | |
|:---|:---|:---|
| 8 | IHG | Annual Report and Form 20-F 2025 |

---

2025 in review<br>

![2025 in Review_main image1.jpg](ihg-20251231_g34.jpg)

Over $1.1bn returned to

shareholders in 2025.

Regent Hong Kong,

Tsim Sha Tsui, Hong Kong.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 9 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| | | |
|:---|:---|:---|
| Financial performance  | Financial performance  | Regional growth |
| **In 2025, we delivered a strong financial performance, with growth in** <br>**revenue and operating profit supporting a solid increase in adjusted EPS,** <br>**with over $1.1 billion returned to shareholders.** | **In 2025, we delivered a strong financial performance, with growth in** <br>**revenue and operating profit supporting a solid increase in adjusted EPS,** <br>**with over $1.1 billion returned to shareholders.** | **We opened a record 443 hotels** <br>**in the year and added a further** <br>**694 properties into our pipeline,** <br>**reflecting the strength in owner** <br>**demand for our world-class** <br>**brand portfolio.**<br>|
| **Global RevPAR**<sup>a</sup> | **Net system size growth** | **Americas** |
| +1.5% | 4.7%<sup>c</sup> |  |
| **Signings (rooms)** | **Total gross revenue in IHG's system**<sup>a</sup> |  |
| 102054 | $35.2bn |  |
| **Total revenue** | **Revenue from reportable segments**<sup>b</sup> | **EMEAA** |
| $5,189m | $2,468m |  |
| **Operating profit** | **Operating profit from** <br>**reportable segments**<sup>b</sup><br>|  |
| $1,198m | $1,265m |  |
| **Basic EPS** | **Adjusted EPS**<sup>a,b</sup> | **Greater China** |
| 490.9¢ | 501.3¢ |  |
| **Total dividend for the year** | **Share buyback programme** |  |
| 184.5¢ | $900m |  |

---

---

| | |
|:---|:---|
| **+** | More on pages 96 to 97. |

---

![49](ihg-20251231_g35.gif)

![120](ihg-20251231_g36.gif)

![132](ihg-20251231_g37.gif)

**2025**

**2024**

**2025**

**2024**

**4.7%**<sup>c</sup>

---

| | |
|:---|:---|
| **2025** | **2024** |
| **Room openings** | **Room openings** |

---

![156](ihg-20251231_g38.gif)

![144](ihg-20251231_g39.gif)

![719](ihg-20251231_g40.gif)

**2025**

**2024**

**2025**

**2024**

**025**

**2024**

---

| | |
|:---|:---|
| **2025** | **2024** |
| **Room signings** | **Room signings** |

---

---

| | |
|:---|:---|
| **+** | More on page 100 to 101. |

---

![210](ihg-20251231_g41.gif)

![747](ihg-20251231_g42.gif)

![775](ihg-20251231_g43.gif)

**2025**

**2024**

**2025**

**2024**

**20252024**

---

| | |
|:---|:---|
| **2025** | **2024** |
| **Room openings** | **Room openings** |

---

![225](ihg-20251231_g44.gif)

![803](ihg-20251231_g45.gif)

![831](ihg-20251231_g46.gif)

**2025**

**2024**

**2025**

**2024**

---

| | |
|:---|:---|
| **2025** | **2024** |
| **Room signings** | **Room signings** |

---

---

| | |
|:---|:---|
| **+** | More on page 104 to 105. |

---

![240](ihg-20251231_g47.gif)

![859](ihg-20251231_g48.gif)

![887](ihg-20251231_g49.gif)

**2025**

**2024**

**2025**

**2024**

**2025**

**2024**

---

| | |
|:---|:---|
| **2025** | **2024** |
| **Room openings** | **Room openings** |

---

![270](ihg-20251231_g50.gif)

![915](ihg-20251231_g51.gif)

![172](ihg-20251231_g52.gif)

**2025**

**2024**

**2025**

**2024**

---

| | |
|:---|:---|
| **2025** | **2024** |
| **Room signings** | **Room signings** |

---

a.Definitions for key performance measures can be found in the use of key performance measures and Non-GAAP measures section, which can be found on pages 107 to 112.

b.Use of Non-GAAP measures: In addition to performance measures directly observable in the Group Financial Statements (IFRS measures), additional financial measures

(described as Non-GAAP) are presented that are used internally by management as key measures to assess performance. Non-GAAP measures are either not defined

under IFRS or are adjusted IFRS figures. Further explanation in relation to these measures can be found on pages 107 to 112, and reconciliations to IFRS figures,

where they have been adjusted, are on pages 250 to 256.

c.Net system size growth of 4.7% after adjusting for the impact of removing 7,092 rooms previously affiliated with The Venetian Resort Las Vegas in January 2025.

Net system size growth of 4.0% on a reported basis.

---

| | | |
|:---|:---|:---|
| 10 | IHG | Annual Report and Form 20-F 2025 |

---

2025 in review continued<br>

---

| | |
|:---|:---|
|  | Stakeholders |
| **By investing in our iconic brands and our leading loyalty programme, while at the same time prioritising digital innovation** <br>**and sustainability, we have continued to improve guest experiences, expand our portfolio, and deliver strong returns for** <br>**our hotel owners and shareholders.** | **By investing in our iconic brands and our leading loyalty programme, while at the same time prioritising digital innovation** <br>**and sustainability, we have continued to improve guest experiences, expand our portfolio, and deliver strong returns for** <br>**our hotel owners and shareholders.** |

---

![Stakeholders_image1.jpg](ihg-20251231_g53.jpg)

![Stakeholders_image2.jpg](ihg-20251231_g54.jpg)

**Shareholders and investors**<br>

**Hotel owners**<br>

---

| | |
|:---|:---|
| **+** | More on page 126. |

---

+16%

Adjusted EPS<sup>b</sup> growth.

–Total dividend payments of $270m

and $900m share buyback

programme completed, delivering

combined returns of over $1.1bn.

–New $950m share buyback

programme approved for 2026.

–Americas RevPAR growth +0.3%;

EMEAA +4.6%; Greater China -1.6%.

–Reached 6,963 open hotels;

adjusted net system growth +4.7%<sup>a</sup>.

–Pipeline growth +4%.

–Operating profit of $1,198m

and basic EPS of 490.9¢.

–Fee margin<sup>b</sup> 64.8%, up +3.6%pts,

driven by positive operating

leverage and step-ups in ancillary

fee streams.

---

| | |
|:---|:---|
| **+** | More on pages 25 and 44. |

---

83%

of room revenue booked

through IHG-managed

channels and sources,

providing higher value

customers at lower cost

of acquisition.

–Expanded tech rollout to

capture demand, drive revenue

and optimise operations.

–Guest How You Guest marketing

campaign and strategic

partnerships helped achieve

all-time high of IHG masterbrand

awareness in the US.

–New brand prototypes and

procurement solutions launched to

drive revenue and reduce costs.

–Acquired Ruby, providing

owners with a flexible city

concept to grow with IHG.

**Guests**<br>

**People**<br>

![Stakeholders_image3.jpg](ihg-20251231_g55.jpg)

---

| | |
|:---|:---|
| **+** | More on page 44. |

---

>160m

members for IHG One

Rewards loyalty programme,

with enrolments up 25% YOY.

![Stakeholders_image4.jpg](ihg-20251231_g56.jpg)

–Year-on-year improvement in

global Guest Love; outperformed

key competitors on Guest

Satisfaction Index in all

three regions.

–Elevated guest experience

through new destinations and

AI-powered technology.

–New and continued loyalty

partnerships and experiences.

–Enhanced award-winning

mobile app, which achieved

nine million downloads

in the year.

–New features delivered through

updated hotel designs, F&B

and service.

---

| | |
|:---|:---|
| **+** | More on page 45 and pages 62 to 67. |

---

87%

employee engagement

to maintain place in top

quartile of employers.

–Enriched culture with greater

focus on performance;

enhanced colleague benefits.

–Strengthened learning and

development offer through

IHG® University.

–Named in the Fortune 100

Best Companies to Work

For® 2025 list by Great Place

To Work® and Fortune, reflecting

our ongoing commitment to

enhancing workplace culture

and colleague benefits.

**Communities and suppliers**<br>

**Planet**<br>

![Stakeholders_image5.jpg](ihg-20251231_g57.jpg)

---

| | |
|:---|:---|
| **+** | More on page 45 and pages 68 to 69.  |

---

10.2m

lives improved since 2021

through our collective

action and work with

charity partners.

![Stakeholders_image6.jpg](ihg-20251231_g58.jpg)

–Teamed up with charities

to provide skills training and

job opportunities through

IHG® Academy.

–40,000 colleagues supported

work of more than 700 charities.

–Supported charities in relief

and recovery efforts following

22 natural disasters.

–5.4 million people supported

through partnership with

Action Against Hunger since

2024 launch.

---

| | |
|:---|:---|
| **+** | More on pages 70 to 73. |

---

hotel energy conservation

measures now in place to

increase energy efficiency

and reduce costs for owners.

–10.2% reduction in energy

per available room and a

11.0% reduction in carbon

per available room compared

with 2019 baseline. Total

carbon emissions increased

7.7% over same period as

system size grew significantly.

–Expanded Low Carbon

Pioneers programme to help

us test, learn and share findings

on sustainability measures.

–Launched water conservation

guidebook for hotels in

Americas and EMEAA.

a.Net system size growth of 4.7% after adjusting for the impact of removing 7,092 rooms previously affiliated

with The Venetian Resort Las Vegas in January 2025. Net system size growth of 4.0% on a reported basis.

b.Definitions for Non-GAAP measures can be found on pages 107 to 112. Reconciliations of these measures to the

most directly comparable line items within the Group Financial Statements can be found on pages 250 to 256.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 11 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

![2025 in Review_main image4.jpg](ihg-20251231_g59.jpg)

IHG opened a record

443 hotels in 2025 and

signed 694 properties

into its pipeline.

Regent Bali Canggu, Bali, Indonesia.

---

| | | |
|:---|:---|:---|
| 12 | IHG | Annual Report and Form 20-F 2025 |

---

2025 in review continued<br>

![2025 in Review_main image3.jpg](ihg-20251231_g60.jpg)

IHG's brand portfolio

has grown to 20

following the acquisition

of Ruby in 2025.

Holiday Inn Resort Ho Tram Beach,

Xuyen Moc, Vietnam.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 13 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

![p13 bgrd_images.jpg](ihg-20251231_g61.jpg)

**1**<br>

**Thanks a million!**

In 2025 we recognised a landmark

moment for IHG: one million open

rooms globally. But we didn't stop there.

We opened more hotels than ever before,

surpassing several milestones along the

way, including 4,100 open hotels in the

US, 800 in Greater China and 50 in India.

Plus, we celebrated our 50th anniversary

in Greater China and in Saudi Arabia.

**2**<br>

**Going above and beyond**

Our dedicated hotel teams around

the world deliver warm welcomes and

magical memories every single day.

Driving this success is our passion for

delivering True Hospitality for Good,

which was beautifully captured at the

Hotel Indigo® Madrid – Gran Via when

a guest discovered she had lost

her purse on her return to the hotel

following a day out. On hearing this,

a member of the team drove several

hours to retrace her steps, found it

and quietly left it at the front desk

for her to collect.

**3**<br>

**Brand new**

Our acquisition of premium urban

lifestyle brand Ruby in 2025 brought an

exciting, distinct and high-quality offer

for both guests and owners in popular

city destinations. "This acquisition

demonstrates our focus on building

our presence in large, attractive industry

segments and using our experience

of integrating and growing brands

and hotel portfolios," said Elie Maalouf,

Chief Executive Officer, IHG Hotels

& Resorts. "The urban micro space

is a franchise-friendly model with

attractive owner economics, and we

see excellent opportunities to not

only expand Ruby's strong European

base but also rapidly take this exciting

brand to the Americas and across

Asia, as we have successfully done

with previous brand acquisitions."

---

| | | |
|:---|:---|:---|
| 14 | IHG | Annual Report and Form 20-F 2025 |

---

2025 in review continued<br>

![2025 in Review_main image2.jpg](ihg-20251231_g62.jpg)

IHG has improved 10.2m

lives since 2021 through its

collective action and work

with charity partners.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 15 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**4**<br>

**Staying power**

Fuelled by new partnerships, rewards

and experiences, our IHG One Rewards

loyalty programme keeps on growing.

Fresh from winning five 2025 Global

Traveler Awards, a 25% increase

in enrolments pushed membership

beyond 160 million, with members

now booking 66% of all room nights.

**5**<br>

**Caring for our people** 

**and the world around us**

Looking after our people, communities

and planet has been at the heart of

what we do for many years at IHG.

In 2025, we enriched our inclusive

culture and delivered improved

colleague benefits; we have supported

5.4m people globally through our

partnership with Action Against Hunger

since its 2024 launch; and we added

more properties to our industry-first

Low Carbon Pioneers programme

to help IHG test, learn and share

findings on sustainability measures.

**6**<br>

**Game. Set. And masterbrand**

Our IHG Hotels & Resorts brand

continued to show up in more places,

more often in 2025 through the

expansion of our Guest How You

Guest global marketing campaign, our

simplified 'By IHG' brand endorsement,

and partnerships with other leading

brands and sporting events. This included

being the official hotel and hotel loyalty

programme of the US Open Tennis

Championships for a seventh year,

which helped achieve an all-time high

of IHG masterbrand awareness in

the US.

4<br>

![2025 in review_small image4.jpg](ihg-20251231_g63.jpg)

![2025 in review_small image5.jpg](ihg-20251231_g64.jpg)

5<br>

6<br>

![2025 in review_small image6.jpg](ihg-20251231_g65.jpg)

---

| | | |
|:---|:---|:---|
| 16 | IHG | Annual Report and Form 20-F 2025 |

---

2025 in review continued<br>

**7**<br>

**Game-changing tech**

Our powerful suite of technology is

deepening loyalty to our brands and

sharpening our competitive edge.

We are driving advantages from

artificial intelligence (AI) across our

entire enterprise, including improved

guest experiences, customer acquisition

and hotel performance. Examples of

this include our revenue management

system incorporating data science,

machine learning and forecasting tools

![2025 in review_small image7.jpg](ihg-20251231_g66.jpg)

to deliver advanced insights and

recommendations along with

enhancements to our IHG One Rewards

mobile app that are unlocking the

full power of our loyalty programme

in fresh ways.

7<br>

**8**<br>

**That winning feeling**

The investment, quality and trust

placed in our brands again resulted

in an award-winning year in 2025.

Among the many highlights were

Holiday Inn being recognised by Time

magazine as one of the World's Best

Brands and voco hotels™ being voted

World's Leading Premium Hotel Brand

at the 2025 World Travel Awards.

Our strong reputation in Luxury &

Lifestyle was reflected in dozens of

accolades across individual properties

and brands, including Regent® being

ranked among Travel + Leisure's

Most Loved Hotel Brands. Bravo!

**9**<br>

**Reaching new markets** 

Global demand for our brands

continued to grow at pace in 2025,

with 32 country debuts for individual

IHG brands. These included Garner™

in Mexico, Atwell Suites™ in Greater

China and Kimpton® Hotels &

Restaurants reaching Germany

and Portugal for the first time.

![2025 in review_small image8.jpg](ihg-20251231_g67.jpg)

8<br>

9<br>

![2025 in review_small image9.jpg](ihg-20251231_g68.jpg)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
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| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

![2025 in Review_main image5.jpg](ihg-20251231_g69.jpg)

32 new country debuts

for individual IHG brands

in 2025.

Kimpton Atlantico Algarve, Portugal.

---

| | | |
|:---|:---|:---|
| 18 | IHG | Annual Report and Form 20-F 2025 |

---

Chief Executive Officer's review<br>

**Accelerating growth, achieving** 

**potential**

![CEO_headshot.jpg](ihg-20251231_g70.jpg)

"I am incredibly proud of our accomplishments

and ability to capture travel demand across

geographies, chain scales and stay occasions

through an unwavering commitment to care,

quality and trust that underpins our purpose

to provide True Hospitality for Good."

Elie Maalouf

**Chief Executive Officer**

This year we have accelerated the

growth of our brands, deepened

owner and guest relationships, made

significant strategic progress and

delivered strong financial performance.

Through these achievements, we've

collectively propelled the business

to several growth milestones,

including surpassing one million

open rooms globally.

I am incredibly proud of our

accomplishments and ability to

capture travel demand across

geographies, chain scales and stay

occasions through an unwavering

commitment to care, quality and

trust that underpins our purpose

to provide True Hospitality for Good.

Global RevPAR was up +1.5% year-on-

year, despite some turbulent trading

conditions. In the Americas, RevPAR

was up +0.3%, with US RevPAR -0.1%.

In EMEAA, RevPAR grew +4.6%, driven

by particularly strong performances

in Continental Europe, East Asia &

Pacific and the Middle East. In Greater

China, RevPAR was down -1.6%,

however, the region returned to

growth in Q4.

This performance, coupled with fee

margin growth and disciplined cost

management, helped drive operating

profit up 15% year-on-year to $1,198m.

Operating profit from reportable

segments rose 13% to $1,265m. Basic

EPS was 490.9 cents, while adjusted

EPS grew 16%, ahead of our target of

12%–15% average annual growth over

the medium to long term. We also

returned more than $1.1bn to shareholders

through ordinary dividend payments and

a $900m share buyback programme,

and a new $950m share buyback

programme has been approved

for 2026.

Owner confidence in our brands and

powerful enterprise led to the opening

of 443 hotels – a record number – which

contributed to adjusted net system

size growth of 4.7%<sup>a</sup>. We signed a further

694, taking our development pipeline

to 2,292 hotels, which represents

future system size growth of 33%.

**Strategic progress**

Our performance is driven by investment

in our brands and the enterprise that

supports them. We continued to invest

in our established brands, with our

Holiday Inn Brand Family generating

35% of openings and signings in 2025.

A transformed presence in Luxury

& Lifestyle in recent years means

these brands now represent 14% of our

system size and 22% of our pipeline.

Among key openings in 2025 were

Kimpton Naluria Kuala Lumpur – the

brand's first in Malaysia – InterContinental®

a.Net system size growth of 4.7% after adjusting for the impact of removing 7,092 rooms previously affiliated with The Venetian Resort Las Vegas

in January 2025. Net system size growth of 4.0% on a reported basis.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 19 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Presidente Monterrey in Mexico and

Ciel Dubai Marina, Vignette Collection

in the United Arab Emirates – the world's

tallest hotel.

In 2025 we also met growing guest

and owner demand in the premium

segment with the acquisition of urban

lifestyle brand Ruby to strengthen our

presence in popular city destinations,

and began 2026 with the launch of

Noted Collection, a new premium

collection brand.

These two additions join a stable of

newer brands already gaining traction

in key markets globally. This includes

premium conversion brand voco, which

has reached more than 100 open hotels

in just seven years since launch; midscale

conversion brand Garner, which has

grown to 166 open and pipeline hotels

across 12 countries in just over two years

and is IHG's fastest-ever scaling of a

brand globally; and Atwell Suites, which

expanded from the US into Greater China

in 2025. Collectively, our 10 newer brands

now account for 10% of total current

system size and 22% of the pipeline,

underlining their future growth potential.

Our leading IHG One Rewards loyalty

programme is a critical component

of our wider enterprise. Enrolments

increased by 25% in 2025, helping grow

membership to more than 160 million,

with Reward Night redemptions up 9%

year-on-year as members increasingly

engage with and receive value from

IHG One Rewards. The programme

also played a key role in elevating

awareness of our IHG Hotels & Resorts

masterbrand, supported by our strategic

partnerships with sporting events and

other leading brands, the growth of

our US co-brand credit card customer

base, and the expansion of the latest

instalment in our Guest How You

Guest global marketing campaign.

**The role of technology**

Our leading suite of technology continues

to strengthen how owners promote their

hotels, optimise operations and engage

with guests. Nine million mobile app

downloads were made in 2025, fuelled

by improvements to drive direct bookings

and loyalty engagement. We made

significant progress working with third-

party suppliers on our cloud-based

platforms: our Guest Reservation System

is helping maximise guest choice and

owner value across our global estate;

an AI-powered revenue management

system is incorporating leading forecasting

tools to drive top-line revenue in every

eligible IHG hotel globally; and new

cloud-based property management

systems are rolling out globally to deliver

fast, efficient enhancements to hotels.

We also began work on a new customer

relationship management platform to

strengthen customer acquisition and

deepen loyalty with our guests, and a

new digital content platform to support

owners in showcasing their hotels more

effectively in an increasingly AI-driven

world. We are embedding AI across our

technology eco-system to elevate guest

experiences, customer acquisition and

hotel performance, while at the same time

driving efficiencies across the business.

Collectively, our strategic progress

led to 83% of room revenue at hotels

in our system being booked through

IHG-managed channels and sources,

demonstrating our growing ability

to provide owners with higher value

customers at a lower cost of acquisition.

Controlling costs is a core part of

the value we provide owners and we

collaborate closely to reduce the cost

to build, open and operate our hotels,

while at the same time working with trade

bodies and governments on behalf of

owners to secure policy support for their

businesses and the wider hospitality

and travel industry.

**Growing responsibly**

As we operate and grow our business,

we do so responsibly for our people

and the world around us. Whether in our

hotels or offices, our inclusive, welcoming

culture is central to our progress, and

we took further steps in 2025 to attract

and retain the talent we need to succeed

globally and work with partners to create

opportunities and skills building for all.

In our communities, we provided support

in times of natural disaster, created job

opportunities, and have helped combat

food insecurity for more than five million

people since the 2024 launch of our

partnership with Action Against Hunger,

alongside giving back to thousands

more during our annual Giving for Good

month. We also continued to test, learn,

and share findings on sustainability

measures by expanding our industry-first

Low Carbon Pioneers programme, and

took further action to reduce emissions,

water usage and waste through new

technology, updated brand standards

and hotel guidance.

Through work to improve the efficiency

of our hotels, we achieved double-digit

reductions in both emissions and energy

per available room compared with a

2019 baseline. However, as set out during

the year, the lack of sufficient clean energy

infrastructure in our markets, alongside our

successful opening of more hotels, means

that total carbon emissions have increased

overall since 2019. Looking ahead to 2026,

we will refresh elements of our Journey

to Tomorrow responsible business plan.

This will be an important step towards

strengthening our ability to navigate varied

and complex energy infrastructure and

regulatory landscapes across our global

markets, and further drive impact in the

programme's priority areas.

Among my many highlights of 2025

was spending time with guests, owners,

colleagues and investors in different

markets – from the US, China and

Germany to Japan, Saudi Arabia, the

United Arab Emirates and Singapore –

seeing and hearing how the exceptional

work we are doing is driving economic

development, hotel performance, brand

growth and further trust in IHG. Our

partnership with owners is the foundation

of our progress and I was inspired to

see how closely we work together to

achieve outstanding guest experiences,

with year-on-year improvement in Guest

Love and outperformance versus key

competitors in all three regions in the

external Guest Satisfaction Index.

We are generating considerable

momentum across the business, and

have plenty to look forward to in 2026

and beyond, fuelled by continued

execution of our strategy and strong

industry growth drivers. Oxford

Economics forecasts the number of

global hotel room nights consumed

to grow annually at an average rate of

+3.6% through to 2035, with new room

supply globally projected to continue

its healthy growth.

I would like to thank our Board for its

support throughout 2025, our talented

and dedicated colleagues for bringing

True Hospitality to so many new

destinations around the world, and our

owners for their continued partnership.

I look forward to driving further

success together.

![Elie Maalouf_sig.jpg](ihg-20251231_g71.jpg)

Elie Maalouf

Chief Executive Officer

---

| | | |
|:---|:---|:---|
| 20 | IHG | Annual Report and Form 20-F 2025 |

---

Industry overview<br>

**A strong and resilient** 

**sector full of**

**opportunity**

We operate in an industry with

high growth potential, underpinned by

strong long-term fundamentals.

The global hotel industry remains

poised for long-term growth, supported

by stable employment markets, robust

levels of business activity and resilient

leisure demand. While in some countries

geopolitical risk and the economic

outlook present uncertainties, the overall

environment is one that is supportive to

the industry.

The $750 billion hotel industry has

compelling structural growth drivers,

underpinned by factors including the

inherent needs and desires to travel

for business and leisure purposes, and

an expanding middle class in emerging

markets with increasing disposable

incomes. Travel continues to be an area

of resilient discretionary spending by

consumers, while demand for business

travel remains robust. Easing inflationary

pressures and the turn in the interest

rate cycle over the past 12 months has

supported robust levels of business

activity and economic growth.

In what is a relatively fragmented sector,

with 57% of rooms affiliated with a global

or regional chain, competitor pressure

in the branded space remains intense, as

all major players pursue growth strategies

through a combination of organic

growth, partnership arrangements

and acquisitions.

Branded hotel penetration has steadily

increased as a long-term trend, with

this expected to continue to grow

as consumers look to trusted brands

to meet their evolving expectations,

particularly when it comes to state-of-

the-art technology and the skills, scale

and resources required to provide

enjoyable, effective and sustainable

stays. Hotels affiliated with a major

global brand and enterprise system also

tend to generate higher owner returns.

There remains a long-term need for

new hotel supply to satisfy the demand

drivers previously mentioned. Global

hotel room net new supply increased

at a CAGR of 2.3% over the 10 years

from 2015 to 2025, with industry

forecasts showing a similar rate in

the years beyond.

Cost remains a significant barrier to

building a scale position in the global

hotel industry, whether that's due

to investment to build and maintain

the properties, establishing strong

loyalty programmes and technology

platforms, or developing and marketing

leading brands.

The hotel industry is cyclical: long-term

fluctuations in RevPAR tend to reflect

the interplay between industry demand,

supply and the macro-economic

environment. At a local level, political

and economic factors, as well as those

such as terrorism, oil market conditions

and significant weather events, can

also impact demand and supply. While

the potential for macro-economic

challenges from factors such as

lingering inflation, international trade

barriers and geopolitical flashpoints

create some ongoing uncertainty

going into 2026, the attractive industry

fundamentals that led to the sector

outpacing global economic growth

in 19 out of 26 years between 2000

and 2025 remain firmly in place for

the long term.

As a global business, with a footprint

in more than 100 countries, operating

in the midst of change and uncertainty

is something IHG is very used to, and

one of our greatest strengths. Our

strategy of developing a strong brand

portfolio that is diversified by geography,

brand segment and fee-based income

programme, means IHG is well positioned

to remain resilient through varying

economic cycles.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
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| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 21 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| | | |
|:---|:---|:---|
| The hotel industry has long-term growth drivers… | The hotel industry has long-term growth drivers… | The hotel industry has long-term growth drivers… |
| 1.6%<br>US disposable personal income <br>grew on average by 1.6% per <br>annum between 2000 and 2025<br>a.Source: Federal Reserve Economic <br>Data (FRED)<br>| $62tn<br>The global consumer class spent <br>an estimated $62tn in 2025, with this <br>expected to increase to $80tn by 2030<br>a.Source: World Data Lab<br>| 2.3%<br>Global hotel room net new <br>supply grew 2.3% per annum <br>between 2015 and 2025<br>a.Source: STR<br>|

---

---

| | | |
|:---|:---|:---|
| with significant barriers to entry… | with significant barriers to entry… | with significant barriers to entry… |
| **The top five hotel groups**<sup>a</sup> **have** <br>**almost a quarter of market share**<br>Share of top five branded hotel <br>groups as % of global rooms supply<br>a.Source: STR<br>| **Share expected to further expand**<br>Branded share of global industry <br>supply and share of global industry <br>active pipeline <br>a.Source: STR<br>| **Consumers value loyalty** <br>**membership, which requires** <br>**a large-scale enterprise to deliver**<br>79%<br>of consumers are more likely to <br>recommend brands with good <br>loyalty programmes<br>a.Source: Bond, in partnership with Visa<br>85%<br>of consumers are more likely to <br>use a brand if they are members <br>of its loyalty programme<br>b.Source: Bond, in partnership with Visa<br>|

---

![13](ihg-20251231_g72.gif)

![259](ihg-20251231_g73.gif)

![](ihg-20251231_g74.gif)

![](ihg-20251231_g75.gif)

1.4x

---

| | |
|:---|:---|
| A | Top five: 24% |
| B | Smaller brand groups and independents: 76% |

---

a.Includes IHG, Marriott International, Inc.,

Hilton Worldwide Holdings Inc., Wyndham

Hotels & Resorts Inc., Accor S.A.

---

| | |
|:---|:---|
| and a track record of growth. | and a track record of growth. |
| **Global hotel revenues have continued to outpace GDP growth** <br>Global industry revenue vs global GDP, indexed to 1999 | **Global industry RevPAR ($)**<br>RevPAR movements are illustrative <br>of lodging demand<br>a.Source: STR<br>**Global rooms supply (m rooms)**<br>Supply growth further reflects the <br>attractiveness of the hotel industry<br>b.Source: STR<br>|

---

![78](ihg-20251231_g76.gif)

**2025**

**2024**

**2023**

**2022**

**2021**

![66](ihg-20251231_g77.gif)

**Hotel industry revenue**

![](ihg-20251231_g78.gif)

![](ihg-20251231_g79.gif)

![90](ihg-20251231_g80.gif)

**2025**

**2024**

**2023**

**2022**

**2021**

**2020**

**GDP**

![](ihg-20251231_g81.gif)

---

| | | |
|:---|:---|:---|
| 22 | IHG | Annual Report and Form 20-F 2025 |

---

Trends shaping our industry<br>

**Continuing to**

**evolve and** 

**adapt**

The travel and tourism industry continues

to demonstrate strong fundamentals.

Despite the current backdrop of

macro-economic uncertainty, intent

to travel remains high.

Continued technological advancement

in AI is changing consumer behaviours

and expectations, and transforming

operations across the hospitality

landscape. Meanwhile, the growing

attractiveness and potential of Asian

and Middle Eastern markets, alongside

the emergence of experience-

driven consumers, is redefining

global travel demand.

---

| | | |
|:---|:---|:---|
| AI transforming travel | AI transforming travel | AI transforming travel |
| | | **Our responses include:**<br>–Embedding AI into core <br>operating platforms, including:<br>–deploying a new revenue <br>management system that <br>leverages AI to deliver advanced <br>insights and recommendations <br>to owners; and<br>–developing an AI-enabled <br>CRM platform to empower <br>corporate and hotel teams <br>with unified guest insights, and <br>to enhance loyalty delivery.<br>–Leveraging AI to enable new <br>content types, including building <br>a new digital content platform <br>to unlock additional capabilities <br>for owners, such as AI-powered <br>translations, expanded video <br>capabilities, and accelerated <br>content publishing across our <br>digital channels.<br>–Developing AI-powered trip-<br>planning capabilities in partnership <br>with Google – a key step towards <br>enabling a more elevated search <br>experience on IHG's owned sites. |
|  |  | **Our responses include:**<br>–Embedding AI into core <br>operating platforms, including:<br>–deploying a new revenue <br>management system that <br>leverages AI to deliver advanced <br>insights and recommendations <br>to owners; and<br>–developing an AI-enabled <br>CRM platform to empower <br>corporate and hotel teams <br>with unified guest insights, and <br>to enhance loyalty delivery.<br>–Leveraging AI to enable new <br>content types, including building <br>a new digital content platform <br>to unlock additional capabilities <br>for owners, such as AI-powered <br>translations, expanded video <br>capabilities, and accelerated <br>content publishing across our <br>digital channels.<br>–Developing AI-powered trip-<br>planning capabilities in partnership <br>with Google – a key step towards <br>enabling a more elevated search <br>experience on IHG's owned sites. |
| Artificial intelligence is driving significant <br>transformation across the hospitality <br>sector. AI technologies are redefining the <br>end-to-end travel purchase journey and <br>enhancing the operational capabilities <br>of accommodation providers.<br>Generative AI is providing inspiration <br>to a broad range of travellers, gaining <br>particular traction among younger <br>travellers and those in Asia. Meanwhile, <br>advanced solutions such as AI-powered <br>smart search and integrated trip-planning <br>platforms are redefining how guests <br>research, book and experience travel.<br>| Accommodation providers are also <br>unlocking new capabilities through <br>embedding AI into their core systems, <br>often in collaboration with specialist <br>partners, to remain at the forefront <br>of technological progress. Predictive <br>analytics are optimising pricing and <br>staffing models, providing hotels <br>with improved clarity in anticipating <br>occupancy and demand shifts.<br>On the guest-facing side, advanced <br>language models are transforming <br>customer service, including assisting <br>with guest queries and supporting <br>multilingual content translation.<br>| **Our responses include:**<br>–Embedding AI into core <br>operating platforms, including:<br>–deploying a new revenue <br>management system that <br>leverages AI to deliver advanced <br>insights and recommendations <br>to owners; and<br>–developing an AI-enabled <br>CRM platform to empower <br>corporate and hotel teams <br>with unified guest insights, and <br>to enhance loyalty delivery.<br>–Leveraging AI to enable new <br>content types, including building <br>a new digital content platform <br>to unlock additional capabilities <br>for owners, such as AI-powered <br>translations, expanded video <br>capabilities, and accelerated <br>content publishing across our <br>digital channels.<br>–Developing AI-powered trip-<br>planning capabilities in partnership <br>with Google – a key step towards <br>enabling a more elevated search <br>experience on IHG's owned sites. |

---

![Trends_image1.jpg](ihg-20251231_g82.jpg)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 23 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| | | |
|:---|:---|:---|
| Accelerating growth in Asia and the Middle East | Accelerating growth in Asia and the Middle East | Accelerating growth in Asia and the Middle East |
|  | Oxford Economics predicts that Asia <br>Pacific and the Middle East will account <br>for over 15 billion domestic and inbound <br>nights by 2035 (up from 10 billion in 2025), <br>representing 45% of global nights. <br>To address emerging demand, <br>hotel companies must adapt to varied <br>consumer preferences and behaviours, <br>including varying travel motivations, <br>the use of local planning sources, and <br>purchases through local channels.<br>Loyalty programmes will need to <br>be tailored to regional expectations, <br>offering benefits and experiences that <br>resonate with local customers, and are <br>delivered in their native language.<br>Hotel stay product and formats <br>also need to be carefully tailored to <br>reflect local preferences and cultural <br>expectations for domestic travellers. <br>This includes adapting amenities, <br>food and beverage offerings, and guest <br>services to meet the unique needs of <br>regional travellers. By aligning product <br>features and service delivery with local <br>tastes, hotel companies can enhance <br>guest satisfaction and loyalty, ensuring <br>their offerings resonate with both <br>domestic and international visitors. | **Our responses include:**<br>–Expanding our presence in key <br>future growth markets, including <br>surpassing 50 open hotels in India, <br>reaching 100 open and pipeline <br>hotels in Saudi Arabia, and growing <br>to more than 800 open hotels <br>in China.<br>–Adapting to local booking preferences <br>in key markets, such as partnering <br>with Rakuten and launching the LINE <br>mini app in Japan, to connect guests <br>and IHG via preferred channels.<br>–Launching the next generation <br>Holiday Inn Express® format in China <br>to improve guest satisfaction and <br>investment returns, alongside debuting <br>lifestyle brand Atwell Suites in China. |
|  | Oxford Economics predicts that Asia <br>Pacific and the Middle East will account <br>for over 15 billion domestic and inbound <br>nights by 2035 (up from 10 billion in 2025), <br>representing 45% of global nights. <br>To address emerging demand, <br>hotel companies must adapt to varied <br>consumer preferences and behaviours, <br>including varying travel motivations, <br>the use of local planning sources, and <br>purchases through local channels.<br>Loyalty programmes will need to <br>be tailored to regional expectations, <br>offering benefits and experiences that <br>resonate with local customers, and are <br>delivered in their native language.<br>Hotel stay product and formats <br>also need to be carefully tailored to <br>reflect local preferences and cultural <br>expectations for domestic travellers. <br>This includes adapting amenities, <br>food and beverage offerings, and guest <br>services to meet the unique needs of <br>regional travellers. By aligning product <br>features and service delivery with local <br>tastes, hotel companies can enhance <br>guest satisfaction and loyalty, ensuring <br>their offerings resonate with both <br>domestic and international visitors. | **Our responses include:**<br>–Expanding our presence in key <br>future growth markets, including <br>surpassing 50 open hotels in India, <br>reaching 100 open and pipeline <br>hotels in Saudi Arabia, and growing <br>to more than 800 open hotels <br>in China.<br>–Adapting to local booking preferences <br>in key markets, such as partnering <br>with Rakuten and launching the LINE <br>mini app in Japan, to connect guests <br>and IHG via preferred channels.<br>–Launching the next generation <br>Holiday Inn Express® format in China <br>to improve guest satisfaction and <br>investment returns, alongside debuting <br>lifestyle brand Atwell Suites in China. |
| Asia Pacific and the Middle East are <br>becoming increasingly significant <br>contributors to the global travel market, <br>with the economic development of <br>countries such as China, India and Saudi <br>Arabia driving higher travel demand. <br>| Oxford Economics predicts that Asia <br>Pacific and the Middle East will account <br>for over 15 billion domestic and inbound <br>nights by 2035 (up from 10 billion in 2025), <br>representing 45% of global nights. <br>To address emerging demand, <br>hotel companies must adapt to varied <br>consumer preferences and behaviours, <br>including varying travel motivations, <br>the use of local planning sources, and <br>purchases through local channels.<br>Loyalty programmes will need to <br>be tailored to regional expectations, <br>offering benefits and experiences that <br>resonate with local customers, and are <br>delivered in their native language.<br>Hotel stay product and formats <br>also need to be carefully tailored to <br>reflect local preferences and cultural <br>expectations for domestic travellers. <br>This includes adapting amenities, <br>food and beverage offerings, and guest <br>services to meet the unique needs of <br>regional travellers. By aligning product <br>features and service delivery with local <br>tastes, hotel companies can enhance <br>guest satisfaction and loyalty, ensuring <br>their offerings resonate with both <br>domestic and international visitors. | **Our responses include:**<br>–Expanding our presence in key <br>future growth markets, including <br>surpassing 50 open hotels in India, <br>reaching 100 open and pipeline <br>hotels in Saudi Arabia, and growing <br>to more than 800 open hotels <br>in China.<br>–Adapting to local booking preferences <br>in key markets, such as partnering <br>with Rakuten and launching the LINE <br>mini app in Japan, to connect guests <br>and IHG via preferred channels.<br>–Launching the next generation <br>Holiday Inn Express® format in China <br>to improve guest satisfaction and <br>investment returns, alongside debuting <br>lifestyle brand Atwell Suites in China. |

---

1<br>

![Trends_image2.jpg](ihg-20251231_g83.jpg)

---

| |
|:---|
| 1 |
| Kimpton KAFD Riyadh, Saudi Arabia, <br>which opened in August 2025, <br>marking the debut of Kimpton in <br>the Middle East. |

---

---

| | | |
|:---|:---|:---|
| The next stage of the experience economy | The next stage of the experience economy | The next stage of the experience economy |
| Consumers continue to place strong value <br>on experiences, with younger generations <br>leading this shift; approximately two-thirds <br>of 18- to 35-year-olds report that live <br>experiences are more fulfilling than <br>purchasing items of equivalent value.<br>This trend is boosting experience-related <br>travel archetypes, such as live-event-<br>focused tourism, where trips are centred <br>around activities such as concerts or <br>sports fixtures, which reflect guests' <br>interests, values and lifestyle.<br>Hotels are increasingly evolving from <br>simply being a place to stay to becoming <br>an integral component of the overall <br>travel experience.<br>| Brand portfolios are adapting to <br>include more lifestyle-focused offerings <br>catering to specific interests such as <br>wellness, inter-generational family travel <br>and live-event-driven stays. By broadening <br>product offerings, accommodation <br>providers can better meet the needs <br>of experience-driven guests.<br>Loyalty programmes are increasingly <br>capturing demand by offering members <br>a curated selection of activities, in <br>addition to core accommodation options. <br>These platforms enable guests to earn <br>and redeem points across a broader <br>range of experiences, enhancing the <br>overall value proposition and fostering <br>deeper engagement with the brand.<br>| **Our responses include:**<br>–Growing our Luxury & Lifestyle portfolio <br>to six distinct brands, providing guests <br>with a variety of authentic, experience-<br>driven stays to suit their specific tastes.<br>–Scaling our estate in key cultural <br>destinations around the world, providing a <br>base for experience-driven guests travelling <br>for sport, music or other occasions.<br>–Acquiring Ruby, expanding our estate <br>with design-led lifestyle properties based <br>in cultural hub locations across Europe, <br>and growing the brand globally.<br>–Partnering with organisations such as the <br>US Open Tennis and Six Nations Rugby <br>to provide members with culturally <br>relevant and personalised experiences.<br>–Launching 'Doors Unlocked by <br>InterContinental' – a luxury programme <br>across six InterContinental properties, <br>offering curated insider experiences <br>such as private Fashion Week events <br>and VIP film screenings.<br>–Developing Six Senses destinations <br>that combine crafted experiences, <br>pioneering wellness programmes, and <br>sensory led design to cater for growing <br>demand for experiential luxury. |
|  |  | **Our responses include:**<br>–Growing our Luxury & Lifestyle portfolio <br>to six distinct brands, providing guests <br>with a variety of authentic, experience-<br>driven stays to suit their specific tastes.<br>–Scaling our estate in key cultural <br>destinations around the world, providing a <br>base for experience-driven guests travelling <br>for sport, music or other occasions.<br>–Acquiring Ruby, expanding our estate <br>with design-led lifestyle properties based <br>in cultural hub locations across Europe, <br>and growing the brand globally.<br>–Partnering with organisations such as the <br>US Open Tennis and Six Nations Rugby <br>to provide members with culturally <br>relevant and personalised experiences.<br>–Launching 'Doors Unlocked by <br>InterContinental' – a luxury programme <br>across six InterContinental properties, <br>offering curated insider experiences <br>such as private Fashion Week events <br>and VIP film screenings.<br>–Developing Six Senses destinations <br>that combine crafted experiences, <br>pioneering wellness programmes, and <br>sensory led design to cater for growing <br>demand for experiential luxury. |
|  |  | **Our responses include:**<br>–Growing our Luxury & Lifestyle portfolio <br>to six distinct brands, providing guests <br>with a variety of authentic, experience-<br>driven stays to suit their specific tastes.<br>–Scaling our estate in key cultural <br>destinations around the world, providing a <br>base for experience-driven guests travelling <br>for sport, music or other occasions.<br>–Acquiring Ruby, expanding our estate <br>with design-led lifestyle properties based <br>in cultural hub locations across Europe, <br>and growing the brand globally.<br>–Partnering with organisations such as the <br>US Open Tennis and Six Nations Rugby <br>to provide members with culturally <br>relevant and personalised experiences.<br>–Launching 'Doors Unlocked by <br>InterContinental' – a luxury programme <br>across six InterContinental properties, <br>offering curated insider experiences <br>such as private Fashion Week events <br>and VIP film screenings.<br>–Developing Six Senses destinations <br>that combine crafted experiences, <br>pioneering wellness programmes, and <br>sensory led design to cater for growing <br>demand for experiential luxury. |

---

![Trends_image3.jpg](ihg-20251231_g84.jpg)

---

| |
|:---|
| 2 |
| The Racquet Bar by IHG at the 2025 <br>US Open Tennis Championships. |

---

2<br>

---

| | | |
|:---|:---|:---|
| 24 | IHG | Annual Report and Form 20-F 2025 |

---

Our business model<br>

---

| |
|:---|
| What we do |
| We provide an enterprise platform for hotel owners to join the IHG system through a <br>family of 20 hotel brands and IHG One Rewards, one of the world's largest hotel loyalty <br>programmes. Our overall enterprise, including our brands and technology, meets clear <br>guest needs and generates strong returns for our hotel owners. This in turn attracts <br>further new-build hotel investment and existing hotels to convert to IHG's brands, which <br>grows our system size. We predominantly franchise our brands and manage hotels on <br>behalf of third-party hotel owners, with the decision largely driven by market maturity, <br>segment complexity and owner preference.<br>|

---

**The growth of our business relies on two fundamental drivers:**<br>

**–increasing revenue per** <br>**available room (RevPAR); and**<br>

**–expanding the number of rooms** <br>**in our system.**<br>

RevPAR indicates the value guests ascribe

to a given hotel brand or market, and

grows when they stay more often or pay

higher prices. Room supply and the size

of our system also reflect capturing

structural growth drivers of increasing

demand to travel and experience, as well

as the attractiveness of the hotel industry,

and IHG, as an investment opportunity

from a hotel owner's perspective.

**IHG is an asset-light business,** with a

focus on growing fee revenues and fee

margins, which we can do with limited

capital requirements. This enables us

to grow and invest in our business while

generating high returns on invested

capital and strong cash flow.

Hotels in the Essentials category tend

to be franchised, while Luxury & Lifestyle

hotels are predominantly managed. Our

broad geographic spread and weighting

towards essential business and domestic

leisure drives comparative resilience

during times of economic downturn.

We have made excellent progress in

expanding our presence in the Luxury

& Lifestyle segment, which generally

generates higher fees per room.

This category is currently 14% of

IHG's system size and comprises

22% of the future growth pipeline.

**We do not employ colleagues** 

**in franchise hotels, nor do we** 

**control their day-to-day operations,** 

**policies or procedures.** That being

said, IHG and our franchise hotels are

committed to delivering a consistent

brand experience and conducting

business responsibly and sustainably.

**Total system size**<br>

1,026,177

rooms

![1469](ihg-20251231_g85.gif)

System size by

Type

---

| | |
|:---|:---|
| Franchised<sup>a</sup> | 73% |
| Managed | 27% |
| Owned & Leased | <1% |

---

![1473](ihg-20251231_g86.gif)

System size by

Region

---

| | |
|:---|:---|
| Americas | 52% |
| EMEAA | 28% |
| Greater China | 20% |

---

![1477](ihg-20251231_g87.gif)

System size by

Category<sup>b</sup>

---

| | |
|:---|:---|
| Luxury & Lifestyle | 14% |
| Premium | 15% |
| Essentials | 60% |
| Suites | 9% |
| Exclusive Partners | 2% |

---

**Total development** <br>**pipeline**<br>

339,526

rooms

a.Includes Iberostar Beachfront

Resorts, which joined

IHG's system and pipeline

as part of a long-term

commercial agreement.

b.Adjusts for the small number

of hotels currently categorised

as 'Other' for example where

these are prior to conversion).

![1494](ihg-20251231_g88.gif)

Pipeline by

Type

---

| | |
|:---|:---|
| Franchised<sup>a</sup> | 59% |
| Managed | 41% |
| Owned & Leased | 0% |

---

![1498](ihg-20251231_g89.gif)

Pipeline by

Region

---

| | |
|:---|:---|
| Americas | 31% |
| EMEAA | 34% |
| Greater China | 35% |

---

![1502](ihg-20251231_g90.gif)

Pipeline by

Category<sup>b</sup>

---

| | |
|:---|:---|
| Luxury & Lifestyle | 22% |
| Premium | 22% |
| Essentials | 44% |
| Suites | 11% |
| Exclusive Partners | 1% |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 25 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| |
|:---|
| How we generate revenue |
| As an asset-light business, revenue attributable to IHG is predominantly the fees charged <br>to third-party hotel owners, rather than the entire revenue base of the hotels themselves. <br>IHG also receives various ancillary fee streams.<br>In 2025, IHG's revenue from fee business was $1,897m (which generated an operating profit of $1,231m<sup>a</sup>). <br>Revenue from the small number of owned & leased hotels, which is entirely attributable to IHG, was $544m in 2025 <br>(generating an operating profit of $43m). Total revenue reported for IHG in 2025 was $5,189m, which additionally <br>includes $1,717m of System Fund revenue, $1,004m of reimbursable revenue, and $27m of insurance activities revenue.<br>|

---

---

| | | |
|:---|:---|:---|
| **Third-party hotel owners pay…** | **Third-party hotel owners pay…** |  |
| **Fees** to IHG in relation to the licensing <br>of our brands and, if applicable, <br>hotel management services.<br>| **Assessments and contributions** that are collected for specific use within <br>the System Fund, as well as reimbursable revenues. | **Assessments and contributions** that are collected for specific use within <br>the System Fund, as well as reimbursable revenues. |
| **Franchised hotels**<br>We receive franchise fees based upon <br>a fixed percentage of rooms revenue <br>when a guest stays at one of our hotels.<br>| **System Fund**<br>IHG manages a System Fund for <br>the benefit of hotels within the IHG <br>system and their third-party owners, <br>who pay assessments into it for <br>certain hotel services. This includes a <br>marketing and reservation assessment <br>and a loyalty assessment.<br>Revenue recognised by the System <br>Fund also includes a portion of <br>revenue on consumption of IHG <br>One Rewards loyalty points. Given <br>the significant scale of the System <br>Fund, IHG can make substantial <br>investments in marketing brands, <br>creating a leading loyalty programme <br>and developing powerful technology <br>systems, thereby strengthening the <br>whole IHG enterprise for the benefit <br>of all our hotel owners.<br>The System Fund is not managed <br>to surplus or deficit for IHG over <br>the longer term, but for the benefit <br>of hotels in the IHG system. | **Reimbursable revenues**<br>In a managed property, the Group <br>typically acts as employer of the <br>general manager and, in some cases, <br>other employees at the hotel, and is <br>entitled to reimbursement of these <br>costs. The performance obligation is <br>satisfied over time as the employees <br>perform their duties, consistent with <br>when reimbursement is received. |
| RevPAR X rooms X royalty rate | **System Fund**<br>IHG manages a System Fund for <br>the benefit of hotels within the IHG <br>system and their third-party owners, <br>who pay assessments into it for <br>certain hotel services. This includes a <br>marketing and reservation assessment <br>and a loyalty assessment.<br>Revenue recognised by the System <br>Fund also includes a portion of <br>revenue on consumption of IHG <br>One Rewards loyalty points. Given <br>the significant scale of the System <br>Fund, IHG can make substantial <br>investments in marketing brands, <br>creating a leading loyalty programme <br>and developing powerful technology <br>systems, thereby strengthening the <br>whole IHG enterprise for the benefit <br>of all our hotel owners.<br>The System Fund is not managed <br>to surplus or deficit for IHG over <br>the longer term, but for the benefit <br>of hotels in the IHG system. | **Reimbursable revenues**<br>In a managed property, the Group <br>typically acts as employer of the <br>general manager and, in some cases, <br>other employees at the hotel, and is <br>entitled to reimbursement of these <br>costs. The performance obligation is <br>satisfied over time as the employees <br>perform their duties, consistent with <br>when reimbursement is received. |
|  | **System Fund**<br>IHG manages a System Fund for <br>the benefit of hotels within the IHG <br>system and their third-party owners, <br>who pay assessments into it for <br>certain hotel services. This includes a <br>marketing and reservation assessment <br>and a loyalty assessment.<br>Revenue recognised by the System <br>Fund also includes a portion of <br>revenue on consumption of IHG <br>One Rewards loyalty points. Given <br>the significant scale of the System <br>Fund, IHG can make substantial <br>investments in marketing brands, <br>creating a leading loyalty programme <br>and developing powerful technology <br>systems, thereby strengthening the <br>whole IHG enterprise for the benefit <br>of all our hotel owners.<br>The System Fund is not managed <br>to surplus or deficit for IHG over <br>the longer term, but for the benefit <br>of hotels in the IHG system. | **Reimbursable revenues**<br>In a managed property, the Group <br>typically acts as employer of the <br>general manager and, in some cases, <br>other employees at the hotel, and is <br>entitled to reimbursement of these <br>costs. The performance obligation is <br>satisfied over time as the employees <br>perform their duties, consistent with <br>when reimbursement is received. |
| **Managed hotels**<br>We generate revenue through base <br>management fees and incentive <br>management fees.<br>| **System Fund**<br>IHG manages a System Fund for <br>the benefit of hotels within the IHG <br>system and their third-party owners, <br>who pay assessments into it for <br>certain hotel services. This includes a <br>marketing and reservation assessment <br>and a loyalty assessment.<br>Revenue recognised by the System <br>Fund also includes a portion of <br>revenue on consumption of IHG <br>One Rewards loyalty points. Given <br>the significant scale of the System <br>Fund, IHG can make substantial <br>investments in marketing brands, <br>creating a leading loyalty programme <br>and developing powerful technology <br>systems, thereby strengthening the <br>whole IHG enterprise for the benefit <br>of all our hotel owners.<br>The System Fund is not managed <br>to surplus or deficit for IHG over <br>the longer term, but for the benefit <br>of hotels in the IHG system. | **Reimbursable revenues**<br>In a managed property, the Group <br>typically acts as employer of the <br>general manager and, in some cases, <br>other employees at the hotel, and is <br>entitled to reimbursement of these <br>costs. The performance obligation is <br>satisfied over time as the employees <br>perform their duties, consistent with <br>when reimbursement is received. |
| Fixed % of total hotel revenue as a <br>management fee, and typically a share <br>of hotel gross operating profit after <br>deduction of management fees<br>| **System Fund**<br>IHG manages a System Fund for <br>the benefit of hotels within the IHG <br>system and their third-party owners, <br>who pay assessments into it for <br>certain hotel services. This includes a <br>marketing and reservation assessment <br>and a loyalty assessment.<br>Revenue recognised by the System <br>Fund also includes a portion of <br>revenue on consumption of IHG <br>One Rewards loyalty points. Given <br>the significant scale of the System <br>Fund, IHG can make substantial <br>investments in marketing brands, <br>creating a leading loyalty programme <br>and developing powerful technology <br>systems, thereby strengthening the <br>whole IHG enterprise for the benefit <br>of all our hotel owners.<br>The System Fund is not managed <br>to surplus or deficit for IHG over <br>the longer term, but for the benefit <br>of hotels in the IHG system. | **Reimbursable revenues**<br>In a managed property, the Group <br>typically acts as employer of the <br>general manager and, in some cases, <br>other employees at the hotel, and is <br>entitled to reimbursement of these <br>costs. The performance obligation is <br>satisfied over time as the employees <br>perform their duties, consistent with <br>when reimbursement is received. |
|  | **System Fund**<br>IHG manages a System Fund for <br>the benefit of hotels within the IHG <br>system and their third-party owners, <br>who pay assessments into it for <br>certain hotel services. This includes a <br>marketing and reservation assessment <br>and a loyalty assessment.<br>Revenue recognised by the System <br>Fund also includes a portion of <br>revenue on consumption of IHG <br>One Rewards loyalty points. Given <br>the significant scale of the System <br>Fund, IHG can make substantial <br>investments in marketing brands, <br>creating a leading loyalty programme <br>and developing powerful technology <br>systems, thereby strengthening the <br>whole IHG enterprise for the benefit <br>of all our hotel owners.<br>The System Fund is not managed <br>to surplus or deficit for IHG over <br>the longer term, but for the benefit <br>of hotels in the IHG system. | **Reimbursable revenues**<br>In a managed property, the Group <br>typically acts as employer of the <br>general manager and, in some cases, <br>other employees at the hotel, and is <br>entitled to reimbursement of these <br>costs. The performance obligation is <br>satisfied over time as the employees <br>perform their duties, consistent with <br>when reimbursement is received. |
| **Exclusive Partners**<br>We receive marketing, distribution, <br>technology and other fees for providing <br>access to our enterprise platform.<br>| **System Fund**<br>IHG manages a System Fund for <br>the benefit of hotels within the IHG <br>system and their third-party owners, <br>who pay assessments into it for <br>certain hotel services. This includes a <br>marketing and reservation assessment <br>and a loyalty assessment.<br>Revenue recognised by the System <br>Fund also includes a portion of <br>revenue on consumption of IHG <br>One Rewards loyalty points. Given <br>the significant scale of the System <br>Fund, IHG can make substantial <br>investments in marketing brands, <br>creating a leading loyalty programme <br>and developing powerful technology <br>systems, thereby strengthening the <br>whole IHG enterprise for the benefit <br>of all our hotel owners.<br>The System Fund is not managed <br>to surplus or deficit for IHG over <br>the longer term, but for the benefit <br>of hotels in the IHG system. | **Reimbursable revenues**<br>In a managed property, the Group <br>typically acts as employer of the <br>general manager and, in some cases, <br>other employees at the hotel, and is <br>entitled to reimbursement of these <br>costs. The performance obligation is <br>satisfied over time as the employees <br>perform their duties, consistent with <br>when reimbursement is received. |
| Fee streams similar to our <br>asset-light model<br>| **System Fund**<br>IHG manages a System Fund for <br>the benefit of hotels within the IHG <br>system and their third-party owners, <br>who pay assessments into it for <br>certain hotel services. This includes a <br>marketing and reservation assessment <br>and a loyalty assessment.<br>Revenue recognised by the System <br>Fund also includes a portion of <br>revenue on consumption of IHG <br>One Rewards loyalty points. Given <br>the significant scale of the System <br>Fund, IHG can make substantial <br>investments in marketing brands, <br>creating a leading loyalty programme <br>and developing powerful technology <br>systems, thereby strengthening the <br>whole IHG enterprise for the benefit <br>of all our hotel owners.<br>The System Fund is not managed <br>to surplus or deficit for IHG over <br>the longer term, but for the benefit <br>of hotels in the IHG system. | **Reimbursable revenues**<br>In a managed property, the Group <br>typically acts as employer of the <br>general manager and, in some cases, <br>other employees at the hotel, and is <br>entitled to reimbursement of these <br>costs. The performance obligation is <br>satisfied over time as the employees <br>perform their duties, consistent with <br>when reimbursement is received. |
|  | **System Fund**<br>IHG manages a System Fund for <br>the benefit of hotels within the IHG <br>system and their third-party owners, <br>who pay assessments into it for <br>certain hotel services. This includes a <br>marketing and reservation assessment <br>and a loyalty assessment.<br>Revenue recognised by the System <br>Fund also includes a portion of <br>revenue on consumption of IHG <br>One Rewards loyalty points. Given <br>the significant scale of the System <br>Fund, IHG can make substantial <br>investments in marketing brands, <br>creating a leading loyalty programme <br>and developing powerful technology <br>systems, thereby strengthening the <br>whole IHG enterprise for the benefit <br>of all our hotel owners.<br>The System Fund is not managed <br>to surplus or deficit for IHG over <br>the longer term, but for the benefit <br>of hotels in the IHG system. | **Reimbursable revenues**<br>In a managed property, the Group <br>typically acts as employer of the <br>general manager and, in some cases, <br>other employees at the hotel, and is <br>entitled to reimbursement of these <br>costs. The performance obligation is <br>satisfied over time as the employees <br>perform their duties, consistent with <br>when reimbursement is received. |
| The above fee streams drive the fee <br>revenue that IHG recognises in its three <br>reporting regions. Certain other fees <br>paid by third-party hotel owners, such <br>as technology fees, are additionally <br>recognised in Central revenue.<br>| **System Fund**<br>IHG manages a System Fund for <br>the benefit of hotels within the IHG <br>system and their third-party owners, <br>who pay assessments into it for <br>certain hotel services. This includes a <br>marketing and reservation assessment <br>and a loyalty assessment.<br>Revenue recognised by the System <br>Fund also includes a portion of <br>revenue on consumption of IHG <br>One Rewards loyalty points. Given <br>the significant scale of the System <br>Fund, IHG can make substantial <br>investments in marketing brands, <br>creating a leading loyalty programme <br>and developing powerful technology <br>systems, thereby strengthening the <br>whole IHG enterprise for the benefit <br>of all our hotel owners.<br>The System Fund is not managed <br>to surplus or deficit for IHG over <br>the longer term, but for the benefit <br>of hotels in the IHG system. | **Reimbursable revenues**<br>In a managed property, the Group <br>typically acts as employer of the <br>general manager and, in some cases, <br>other employees at the hotel, and is <br>entitled to reimbursement of these <br>costs. The performance obligation is <br>satisfied over time as the employees <br>perform their duties, consistent with <br>when reimbursement is received. |

---

![](ihg-20251231_g91.gif)

![](ihg-20251231_g91.gif)

![Bus model_graphic rule2.gif](ihg-20251231_g92.gif)

![Bus model_graphic rule1.gif](ihg-20251231_g93.gif)

---

| | |
|:---|:---|
| **+** | More on pages 185 and 186. |

---

---

| | |
|:---|:---|
| **Ancillary fee streams** | **Owned & leased hotels** |
| Aside from fees paid to IHG from third-party hotel owners, <br>IHG also receives ancillary fee streams. These include <br>fees related to co-branded credit cards, a portion of <br>proceeds from the sale of loyalty points to consumers, <br>and other fees related to branded residential properties. <br>For more details, see page 28.<br>| For the small number of hotels that we own or <br>lease (representing less than 1% of our system size), <br>we record the entire revenue and profit of the <br>hotel in our financial statements.<br>|

---

![](ihg-20251231_g91.gif)

![](ihg-20251231_g91.gif)

a.Definitions for Non-GAAP revenue and operating profit measures can be found on pages 107 to 112. Reconciliations of these measures to the most

directly comparable line items within the Group Financial Statements can be found on pages 250 to 256.

---

| | | |
|:---|:---|:---|
| 26 | IHG | Annual Report and Form 20-F 2025 |

---

Our business model continued<br>

---

| |
|:---|
| How we drive operating profit |
| Our asset-light business model requires a limited increase in IHG's own operating expenditure <br>to support our revenue growth, which delivers operating profit and fee margin growth.<br>|

---

The benefit of operational efficiencies,

along with brands and markets

becoming more mature, supported

fee margin expansion that averaged

around 130bps a year between

2009 and 2019 in total for IHG.

In 2025, our fee margin increased

by 360bps, driven by operating

leverage and our ongoing actions to

drive cost efficiency, together with

step-ups in ancillary fee streams. This

was ahead of the 100–150bps average

annual improvement that is expected

on a medium- to long-term basis.

For franchised hotels, the flow-through

of revenue to operating profit is higher

than it is at managed hotels, given the

fee model and our well-invested scale

platform, where limited resources

are required to support the addition

of an incremental hotel.

This is most evident in our Americas

region, where fee margins are the

highest, reflecting our scale, and more

than 90% of our hotels operating

under our franchised model.

Across our managed hotels, the

flow-through of revenue to profit can

be slightly lower, given some additional

operating expenditure on operations

teams supporting the hotel network.

Our owned & leased hotels tend

to have significantly lower margins

than our fee business. This is because

we not only record the entire revenue

of the hotel, but also the entire cost

base, which includes staff, supplies

and maintenance costs of the hotel.

**Fee margin by region**<br>

**Americas**

![2869](ihg-20251231_g94.gif)

**FY2025**

**FY2024**

**FY2023**

**FY2025**

**FY2024**

**FY2023**

**Greater China**

![2885](ihg-20251231_g95.gif)

**EMEAA**

![2893](ihg-20251231_g96.gif)

**Total IHG**

![2905](ihg-20251231_g97.gif)

**FY2025**

**FY2024**

**FY2023**

**FY2025**

**FY2024**

**FY2023**

---

| |
|:---|
| Capital allocation |
| Our priorities for the uses of the cash flow that IHG generates are consistent with previous <br>years and comprise three pillars:<br>|

---

1<br>

**Invest in the** 

**business to** 

**drive growth**

We look to strategically

drive growth, while

maintaining strict

control on investments

and our day-to-day

capital expenditures.

2<br>

**Target sustainable** 

**growth in the** 

**ordinary dividend**

IHG has a dividend

policy where we would

look to grow the

ordinary dividend each

year, while balancing

all our stakeholder

interests and ensuring

our long-term success.

3<br>

**Return surplus** 

**capital to** 

**shareholders**

The Board expects

our asset-light

model to provide

the opportunity

to routinely return

additional capital

to shareholders such

as through share

buybacks.

**Shareholder returns 2023–25 ($bn)**

![358](ihg-20251231_g98.gif)

![](ihg-20251231_g99.gif)

![](ihg-20251231_g100.gif)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 27 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| |
|:---|
| Capital expenditure |
| Spend incurred by IHG can be summarised as follows: |

---

---

| | | |
|:---|:---|:---|
| **Type** | **What is it?** | **Recent examples** |
| **Key money and** <br>**maintenance capital** <br>**expenditure**<br>| Key money is expenditure used to <br>access strategic opportunities, particularly <br>in high-quality and sought-after locations, <br>when returns are financially and/or <br>strategically attractive.<br>Maintenance capital expenditure is devoted <br>to the maintenance of our systems and <br>corporate offices, along with our owned <br>& leased hotels.<br>| Examples of key money include investments <br>to secure representation for our brands <br>in prime locations.<br>Examples of maintenance spend include <br>investment in corporate technology and software, <br>as well as office refurbishment and maintenance. <br>Across our owned & leased hotels, we invest <br>in refurbishment of public spaces and <br>guest rooms.<br>|
| **Recyclable** <br>**investments to** <br>**drive the growth** <br>**of our brands and** <br>**our expansion in** <br>**priority markets**<br>| Recyclable investments are capital used <br>to acquire real estate or investment through <br>joint ventures, equity capital, or loans to <br>facilitate third-party ownership of hotel assets. <br>This expenditure is strategic to help build <br>brand presence.<br>We would look to divest these investments <br>at an appropriate time and reinvest the <br>proceeds across the business.<br>| Examples include recyclable investments where <br>we used our capital to develop initial properties <br>for a previous new brand to showcase the <br>concept, and we then subsequently sold the <br>hotels and now operate them under franchise <br>agreements. <br>Other examples include the initial purchasing <br>of sites or temporary investment in the partial <br>financing of flagship hotels in key markets.<br>|
| **System Fund capital** <br>**investments for** <br>**strategic investment** <br>**to drive growth at** <br>**hotel level**<br>| The development of tools and systems <br>that hotels use to drive performance. <br>This is charged back to the System Fund <br>over the life of the asset.<br>| We continue to invest in a range of upgraded <br>technology solutions, including the ongoing <br>development of IHG's mobile app and IHG <br>One Rewards loyalty evolution.<br>|

---

---

| |
|:---|
| Dividend policy and shareholder returns |
| The Board consistently reviews the Group's approach to capital allocation and seeks <br>to maintain an efficient balance sheet and investment grade credit rating.<br>|

---

IHG has an excellent track record

of returning funds to shareholders

through ordinary and special dividends,

and share buybacks. The ordinary

dividend paid to shareholders

increased at an 11% CAGR between

2004 and 2019, and at a 10% CAGR

after resuming dividend payments

at the end of 2021.

Our asset-light business model is highly

cash generative through the cycle

and enables us to invest in our brands

and strengthen our enterprise. When

reviewing dividend recommendations,

the Board looks to ensure that any

recommendation does not harm

the sustainable success of the

Company and that there are sufficient

distributable reserves to pay any

recommended dividend. The Board

assesses the Group's ability to pay

a dividend bearing in mind its

responsibilities to its stakeholders

and its objective of maintaining an

investment grade credit rating.

One of the measures we use to monitor

this is net debt:adjusted EBITDA, where

we aim for a ratio of 2.5–3.0x.

Surplus capital was returned via a

$500m buyback programme announced

in August 2022, a $750m programme

announced in February 2023, an $800m

programme announced in February

2024, and then a further $900m

programme in 2025. The highly cash

generative nature of our business model

means we expect to have substantial

ongoing capacity to return further surplus

capital to shareholders, such as through

share buybacks, as we look to maintain

leverage within our target range.

The Board intends to continue

sustainably growing the ordinary

dividend and to typically pay dividends

weighted approximately one-third to

the interim and two-thirds to the final

payment. In February 2025, IHG's Board

proposed a final dividend of 114.4¢ in

respect of 2024, representing growth

of 10% on that for 2023.

The proposal was subsequently

approved at the AGM and paid to

shareholders on 14 May 2025.

In August 2025, IHG's Board declared

an interim dividend of 58.6¢ per share,

representing growth of 10% on 2024's

interim dividend. This was paid to

shareholders on 2 October 2025.

The Board is proposing a final

dividend of 125.9¢ in respect of

2025, representing growth of 10%

on that for 2024. The proposed

total dividend for the year is

therefore 184.5¢. Further, the

Board has approved a share buyback

programme for 2026 to return an

additional $950m of surplus capital.

Given expectations for growth and

EBITDA in 2026, leverage is expected

to remain within our target range

of 2.5–3.0x.

---

| | | |
|:---|:---|:---|
| 28 | IHG | Annual Report and Form 20-F 2025 |

---

Our business model continued<br>

---

| |
|:---|
| Driving ancillary fee streams |
| Ancillary fee streams further leverage the strength of IHG's brands and our powerful <br>enterprise platform. As well as additional fee revenue, they typically flow through to operating <br>profit at a high incremental margin, therefore contributing to overall fee margin accretion.<br>|

---

![Bus model_bgrd_images1-3.jpg](ihg-20251231_g101.jpg)

---

| | |
|:---|:---|
| **Loyalty points sales to consumers**<br>Our loyalty programme, IHG One Rewards, allows <br>members to earn points through qualifying stays and <br>through third-party partnerships and programmes. <br>Points revenue is generated through hotel assessments <br>from qualifying stays, third-party points purchases to <br>support partnership arrangements and points purchased <br>by members. Further points revenue growth from selling <br>loyalty points to consumers is expected in future years, <br>driven by the growth in the attraction and scale of the <br>IHG One Rewards programme. In 2025, the programme <br>grew to over 160 million members who are responsible <br>for 66% of room nights consumed globally.<br>|  |
|  | **Co-brand credit cards**<br>Co-brand credit cards drive further membership and <br>loyalty to our IHG One Rewards programme, deepening <br>guest relationships and delivering more business to <br>our hotels. Co-brand credit card partners pay fees <br>to IHG for:<br>–access to our loyalty programme and customer <br>base and the rights to use IHG brands;<br>–arranging for the provision of future benefits to members <br>who have earned points or free night certificates; and<br>–performing marketing services.<br>IHG One Rewards co-brand credit card holders stay even <br>more frequently and spend more in IHG hotels. 2025 was <br>a record-breaking year for new account applications; driving <br>further growth in total card customers and total card spend.<br>|
| **Branded residential properties**<br>A further example of driving ancillary fees through <br>the strength of IHG's brands is their use to generate <br>increased sales of residential property, typically alongside <br>a hotel development with shared services and facilities. <br>This industry segment has tripled in number of branded <br>residential developments over the past decade. IHG has <br>30+ branded residential projects open or selling properties <br>across 15+ countries, and more in the pipeline. Fees earned <br>by IHG from branded residences increased in 2025, <br>benefitting from strong sales at Six Senses® Dubai Marina, <br>which have added to the success of the previously fully <br>sold development at Six Senses The Palm, Dubai, and <br>growth in this latest year also from the near-complete <br>sale of residences at Six Senses, London.<br>|  |

---

![](ihg-20251231_g102.gif)

![](ihg-20251231_g103.gif)

![](ihg-20251231_g104.gif)

![](ihg-20251231_g105.gif)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 29 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| |
|:---|
| Why hotel owners choose to work with IHG |
| Hotel owners choose to work with IHG because of the trust they have in our brands, <br>the strength of our wider enterprise and our track record in delivering strong returns.<br>|

---

![p29 graphic_bgrd.jpg](ihg-20251231_g106.jpg)

**Strength** 

**of brands**

A portfolio of

brands across

industry segments,

designed to drive

owner returns.

**Commercial engine**

We invest in our digital platforms,

data and analytics, revenue

management, marketing and

partnerships to provide guests

with more choice and benefits

and owners with higher value

customers at lower cost

of acquisition.

**Technology**

We work with third-party

suppliers and invest in

leading technology that

makes the biggest difference

to guests, owners and hotel

teams, leveraging AI and

cloud-based platforms to

streamline operations and

drive revenue.

**Procurement**

We use our scale to

reduce costs for owners,

with procurement

programmes for

hotel goods, services

and renovations.

**Global sales** 

**organisation**

Our global sales

enterprise drives higher

quality, lower-cost

revenue to our hotels.

**People**

We are committed

to creating a culture

where everyone feels

valued and can thrive,

supported by a strong

framework that attracts,

develops and grows

exceptional talent.

**Hotel lifecycle** 

**management and** 

**operations**

We invest in technology,

systems and processes

to support performance,

increase efficiencies

and drive returns for

our owners.

**Strong loyalty** 

**programme and** 

**enterprise contribution**

Our IHG One Rewards

programme has more

than 160 million members,

helping drive direct

bookings. In 2025, 83% of

room revenue was booked

through IHG-managed

channels and sources.

**Sustainability tools** 

**and expertise**

We have developed

tools, training and

programmes to support

hotels and provide better

data and insights to

enable them to reduce

their energy, waste and

water consumption.

---

| | | |
|:---|:---|:---|
| 30 | IHG | Annual Report and Form 20-F 2025 |

---

Our strategy<br>

**Unlocking our**

**potential**

Our strategy is designed to deliver

on our ambition to be the hotel

company of choice for guests

and owners by capitalising on our

investments in our brands, people,

technology and scale.

Over the long term, with disciplined

**What we do**

Provide True Hospitality for Good

**Why we do it**

To be the hotel company of choice

for guests and owners

execution, our strategy drives the

growth of our brands in high-value

markets. It creates value for all of our

stakeholders and delivers sustained

growth in profits and cash flows,

which can be reinvested in our

business and returned to shareholders.

Our strategic priorities and the

behaviours that drive them have been

designed to put the expanded brand

portfolio we have built in recent years

**How we make it happen**

at the heart of our business, and our

owners and guests at the heart of our

thinking. They recognise the crucial

role of a sophisticated, well-invested

digital approach, and ensure we

meet our growing responsibility to

care for and invest in our people,

and to make a positive difference

to our communities and planet.

Our strategy is inspired and informed

by our purpose of providing True

Hospitality for Good, which is

underpinned by our commitment

to a culture of operating and growing

in a responsible, ethical and inclusive

manner. This sets the tone for how

**Our growth behaviours**

we do business, enabling us to focus

on creating value for all stakeholders

as we build an even stronger IHG.

![OurStrategy_IntroPanel.gif](ihg-20251231_g107.gif)

**Relentless** 

**focus on** 

**growth**

**Leading** 

**commercial** 

**engine**

**Care for** 

**our people,** 

**communities** 

**and planet**

**Brands** 

**guests and** 

**owners love**

**Ambitious**

**Dedicated**

**Courageous**

**Caring**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 31 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

![OurStrategy_image1.jpg](ihg-20251231_g108.jpg)

**Relentless focus** 

**on growth**

The global growth of our brands and expanding

portfolio is providing greater choice for guests and

more investment opportunities for owners than

ever before. In 2025, we opened a record number

of hotels, achieved record development activity

in a number of key markets and strengthened

both new and existing brands across segments.

---

| | |
|:---|:---|
| **+** | More on pages 32 to 33.  |

---

![OurStrategy_image3.jpg](ihg-20251231_g109.jpg)

**Leading commercial engine**

We are investing in the tools, technology and

solutions that make the biggest difference for

guests and owners. Among the key highlights in

2025 was achieving a 25% increase in enrolments

for IHG One Rewards, rolling out hotel technology

to elevate the guest experience, drive top-line

revenue and simplify operations systems, and

growing enterprise contribution.

---

| | |
|:---|:---|
| **+** | More on pages 36 to 37. |

---

![OurStrategy_image2.jpg](ihg-20251231_g110.jpg)

**Brands guests** 

**and owners love**

We are focused on delivering elevated experiences

for guests and strong returns for owners. In 2025,

we launched fresh designs for several of our market-

leading brands, delivered new procurement

solutions and continued to grow awareness

of our IHG Hotels & Resorts masterbrand.

---

| | |
|:---|:---|
| **+** | More on pages 34 to 35. |

---

![OurStrategy_image4.jpg](ihg-20251231_g111.jpg)

**Care for our people,** 

**communities and planet**

With more than 6,900 hotels in our global estate,

it is vital that as we grow, we do so responsibly and

sustainably for our communities, the environment

and the long-term success of our business. In 2025,

we took further steps to invest in our people and

culture, provide care where it's needed most in our

communities and make our hotels more sustainable.

---

| | |
|:---|:---|
| **+** | More on pages 38 to 39. |

---

---

| | | |
|:---|:---|:---|
| 32 | IHG | Annual Report and Form 20-F 2025 |

---

Our strategy continued<br>

![Growth_main image.jpg](ihg-20251231_g112.jpg)

**Relentless focus** 

**on growth**

We've grown from 10 to 20 brands in a decade while at the

same time focusing on the quality of our established brands.

Our transformed portfolio is expanding our offer across

segments, fuelling demand from guests and owners globally,

and is supported by a well-invested enterprise platform

that includes a leading loyalty programme, masterbrand

strategy and powerful suite of technology.

More than 6,900

hotels open globally.

Kimpton Mas Olas Resort & Spa,

El Pescadero, Mexico.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 33 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**What we achieved in 2025**

We opened a record 443 hotels during

the year to surpass 6,900 globally. We

also signed 694 hotels into our pipeline

in 2025, taking it to 2,292 in total – the

equivalent of 33% of today's system

size, which, together with investments

in our enterprise, lays the foundation

for continued system size growth in

the years ahead.

We expanded our presence in high-

growth markets, including opening

a record 147 hotels in EMEAA and

achieving record openings and

signings in Greater China. In addition,

32 openings represented a country

debut for a particular IHG brand.

One of our proudest achievements

during the year was surpassing

one million open rooms globally –

a testament to the enduring appeal of

our brands to guests and owners. This

was complemented by several other

milestones across established and high-

growth markets, including exceeding

4,100 open hotels in the US and

800 in Greater China, where we also

reached a pipeline of 582 hotels, which

represents 56% future rooms growth in

the region. Notable progress was made

in EMEAA, with Germany reaching 242

open and pipeline hotels – more than

doubling its number since the start of

2024 – Japan reaching 59 open hotels,

and Saudi Arabia surpassing 100 open

and pipeline properties. Additionally,

India reached 50 open hotels, while

35 signings marked a record year, with

momentum continuing to support

IHG's ambition to reach more than

400 open and pipeline hotels within

the next five years.

The appeal of our established brands

was illustrated by our Holiday Inn Brand

Family generating 35% of openings

and signings globally. There were also

several key signings for Crowne Plaza®

Hotels & Resorts on the back of an

exciting brand evolution for our largest

premium brand. These included

properties in Australia, near Disneyland

Paris in France and Nigeria on the way to

reaching 578 open and pipeline hotels.

Our fastest growing premium brand,

voco, surpassed a milestone 100 open

hotels, expanded its pipeline to over

100 properties and entered seven more

countries, including Thailand and Aruba.

It has now more than doubled its system

and pipeline since 2023 and was voted

the World's Leading Premium Hotel

Brand at the 2025 World Travel Awards

in 2025. Also in our premium collection,

our wellness brand EVEN® Hotels grew

to 72 open and pipeline properties

across the Americas and Greater China,

and we launched the brand in Saudi

Arabia, which also marked its first

signing in the Middle East.

We have accelerated the growth and

performance of our Luxury & Lifestyle

brands in recent years to establish

one of the world's largest portfolios.

In 2025, we opened and signed a

further 152 hotels across our six brands,

with Regent reaching 23 open and

pipeline hotels, including the signing

of Regent Karuizawa – the brand's first

resort location in Japan. Reflecting the

brand's growing reputation, it was also

recognised as one of the most loved

hotel brands in Travel + Leisure's 2025

World's Best Awards, while Regent

Santa Monica Beach in the US was

among Afar's Best New Hotels of 2025

and Regent Hong Kong in Greater

China won Best Brand Hotel at the 2025

Virtuoso Global Awards. Six Senses

reached 66 open and pipeline hotels,

including a signing in Bangkok, as the

brand continued to expand beyond its

resort roots into key urban locations.

Kimpton continued its rapid expansion

in key leisure destinations, reaching

154 open and pipeline hotels, including

debut openings in Portugal and

Germany, and a first signing in the United

Arab Emirates. InterContinental added

38 openings and signings, including

in Vietnam's Halong Bay and Brisbane,

Australia, as it took its system size to 242.

Its pipeline of 104 hotels represents future

growth of 43%. A debut opening in

New Zealand was among 49 openings

and signings for Hotel Indigo, which

surpassed 320 open and pipeline hotels

in almost 50 countries, reflecting its

accelerated pace of development.

A standout year for Vignette Collection

featured the opening of the tallest

hotel in the world – Ciel Dubai Marina

in the UAE – alongside debut signings

in India, Italy and on the Greek islands.

Our strong future growth prospects

in Luxury & Lifestyle are reflected

by our portfolio now representing

14% of our current system size

and 22% of our pipeline.

Our strategic focus on driving quick-

to-market conversion deals continued

to fuel growth, generating over 50%

of all room openings and more than

300 hotel signings, as independent

owners seek fast access to our revenue-

generating systems, marketing and

loyalty programme. Supporting this,

we have increased the breadth of our

portfolio in recent years by launching

our conversion-friendly brands Vignette

Collection, voco and Garner, which

together represented around one-third

of conversion signings in 2025.

Momentum continued to build behind our

newer brands, with the 10 most recently

added to our portfolio accounting for

10% of total current system size and 22%

of the pipeline. Midscale conversion brand

Garner reached 166 open and pipeline

hotels across 12 countries in just over two

years since launch, with debut openings

in France, Thailand and Mexico, making

it IHG's fastest-ever scaling of a brand

globally. We opened our first Atwell Suites

in Greater China, and grew its pipeline to

56 properties, while Essentials brand

avid™ hotels reached its 80th opening.

In 2025, we added a new brand to

our portfolio with the acquisition of

premium urban lifestyle brand Ruby,

bringing an exciting, distinct and high-

quality offer for guests and owners

in popular city destinations. We have

already signed a further six properties

in key European cities, made it available

for development in the US and further

international expansion is planned

for 2026. The recent launch of Noted

Collection, a new collection brand in

the large and fast-growing premium

segment, will target an upscale to upper

upscale price point and will build on

the well-established successes we have

already delivered with our other collection

and conversion brands. Noted Collection

will initially focus on our EMEAA region,

where there is a large proportion of high-

quality hotels with distinct identities, and

where a collection brand will broaden our

guest offer and enable more owners to

benefit from our enterprise platform.

In our Exclusive Partners category,

our Iberostar Beachfront Resorts brand

opened seven hotels and signed

another six into its pipeline to reach

67 open and pipeline properties.

---

| |
|:---|
| 2,292<br>pipeline hotels, representing future <br>system size growth of 33%.<br>|
| ~50%<br>of global pipeline under construction.<br>|

---

---

| | | |
|:---|:---|:---|
| 34 | IHG | Annual Report and Form 20-F 2025 |

---

Our strategy continued<br>

![Brands_main image.jpg](ihg-20251231_g113.jpg)

**Brands guests** 

**and owners love**

Staying successful means putting our guests and owners

at the heart of everything we do. This is how we create

memorable hotel experiences, deepen guest loyalty,

grow brand awareness, and unlock investment

opportunities for our owners with strong returns.

Our IHG One Rewards loyalty

programme has grown to

over 160 million members.

InterContinental Maldives

Maamunagau Resort, Raa Atoll, Maldives.

Name of hotel, Country

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 35 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**What we achieved in 2025**

With travel reaching record levels in 2025,

we are focused on greeting guests with

elevated experiences, outstanding service

and leading technology to meet their

evolving expectations.

Our IHG One Rewards loyalty programme

is a cornerstone of how we are capturing

demand, with fresh experiences, more

points and stay enhancements helping

drive enrolments up 25% and membership

beyond 160 million in 2025. Reward

Night redemptions were also up 9%

year-on-year, illustrating strong member

engagement and driving increased owner

returns. The programme earned notable

industry recognition, including several

wins at both the Global Traveler and

Frequent Traveler Awards.

Our IHG One Rewards mobile app

provides seamless access to our hotels

and loyalty programme, with regular

updates elevating the guest experience.

Further enhancements in 2025 were

the ability to book different room types

under a single reservation, store multiple

payment cards, and take advantage

of new and improved Food & Beverage

redemption rewards.

Our technology continues to improve

customer service, including solutions

as our Digital Concierge chatbot. Newly

expanded digital payment solutions were

also rolled out on property in partnership

with leading providers Apple Pay, PayPal

and FreedomPay in the Americas and

EMEAA to increase flexibility and reduce

check-in times for guests, alongside

lowering fees for owners.

---

| | |
|:---|:---|
| **+** | For more on our technology, <br>see Leading commercial engine <br>on pages 36 and 37. |
|  | For more on our technology, <br>see Leading commercial engine <br>on pages 36 and 37. |
|  | For more on our technology, <br>see Leading commercial engine <br>on pages 36 and 37. |

---

We continuously invest in new design

formats to deliver outperformance in

key guest metrics and further increase

owner returns. Key brand updates

during the year included the new

bean-to-cup upgraded coffee service

rolled out to 85% of all Holiday Inn

Express hotels in the US, along with its

fifth generation room and lobby design

opening in Greater China and Europe

to boost both investment returns and

guest satisfaction. The latest Holiday

Inn design has launched in more

hotels in the US and seen good

performance uplifts.

Investment in our brands to keep

them feeling fresh was reflected in

several industry awards, including

Time magazine recognising Holiday

Inn among the World's Best Brands

in 2025 for each of the US, Mexico,

UK and Germany markets.

These enhancements, combined

with the work we are doing in

collaboration with our owners and hotel

teams, helped IHG drive year-on-year

improvement in Global Guest Love.

We also maintained our outperformance

versus key competitors on the externally

measured Guest Satisfaction Index

in all three regions.

For corporate guests, we are focused on

providing organisations with consistently

excellent stays and meetings. We

launched the IHG Travel Agent Portal to

connect travel agents with our brands

and hotel portfolio more effectively and

efficiently. Built to drive more bookings

to IHG hotels, the portal provides agents

with tailored information, educational

resources and access to exclusive

benefits for their own personal travel.

Travel planners can also earn extra loyalty

points through IHG Business Rewards,

while IHG Business Edge – our long-

standing SME travel programme – grew

its member base to reach more than

160,000 accounts in 2025. During the

year, we added new exclusive benefits

through partnerships with other leading

companies, including Delta Air Lines'

Business Traveler platform and Qatar

Airways' Beyond Business corporate

rewards programme.

For our hotel owners, we remain focused

on capturing demand and strengthening

hotel performance. IHG One Rewards

is at the heart of our approach, which,

together with our IHG Hotels & Resorts

masterbrand, showcases the breadth

of our offer and sharpens perception

of our brands. In 2025, we made further

significant gains through increasing

visibility across the guest journey,

breakthrough marketing, and a sharper

focus on quality and excellence at scale.

This included partnering with sporting

events and other leading brands to

reach new audiences, drive business

to our hotels and provide stronger

owner returns. Reflecting our success,

we achieved an all-time high of IHG

masterbrand awareness in the US.

We work closely with our hotel teams

and owners to drive performance,

providing training, connecting with

General Managers on calls and at

regional conferences, and with owners

through webinars, meetings and events.

The foundation of our strong owner

relationships is a heightened focus on the

cost to build, open and operate our hotels.

In 2025, we extended our procurement

services to cover more products and

categories tailored to different markets.

In the US, this included a new centralised

procurement platform enabling limited-

service Essentials and Suites hotels

to consolidate purchasing – covering

everything from operating supplies

to maintenance – into one efficient

solution, while more hotels joined our

US Food & Beverage procurement

programme. In EMEAA, we provided

additional purchasing support for new

openings, while in Greater China we

introduced a one-stop Hotel Procurement

Services solution covering the hotel

lifecycle to boost cost efficiency and

compliance for owners. Additionally,

we rolled out a series of targeted

enhancements across four brands in

the region – Atwell Suites, EVEN, Holiday

Inn and Holiday Inn Express – that use

our global scale and 50 years of local

experience to strengthen performance

across the hotel lifecycle.

Developing sustainable solutions is

vital to the long-term success of IHG,

our owners' businesses and the wider

industry, and this year we continued to

advance our efforts while strengthening

owner returns. We integrated additional

energy conservation measures into

brand standards to cut energy usage

and costs. Our Meeting for Good page

is now live on the IHG Hotels & Resorts

website, showcasing how over 650

hotels worldwide are supporting meeting

and event planners in delivering more

sustainable events. More properties

also joined our Low Carbon Pioneers

programme to help us test, learn and

share insights on sustainability measures.

---

| | |
|:---|:---|
| **+** | For more on Planet, see pages 70 to 73. |

---

We continue to work with the IHG

Owners Association, which represents

the interests of thousands of owners

and operators, to roll out key projects

and ensure full visibility of the operational

and commercial support we provide.

This includes supporting the industry

on a broader scale by collaborating

with governments, peers and trade

bodies on prominent issues.

---

| | | |
|:---|:---|:---|
| 36 | IHG | Annual Report and Form 20-F 2025 |

---

Our strategy continued<br>

![Leading Comm_main image.jpg](ihg-20251231_g114.jpg)

**Leading** 

**commercial engine**

Our investments in technology and tools to drive

commercial success are deepening our relationships

with guests and delivering fresh experiences, while

at the same time improving the operational efficiency

of our hotels and driving greater value for owners.

Enterprise contribution

increased two percentage

points year-on-year to 83%.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 37 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**What we achieved in 2025**

In 2025, 83% of room revenue was

booked through IHG-managed channels

and sources, illustrating the success

of our commercial engine across our

technology platforms and sales and

distribution channels in providing hotel

owners with higher value customers

at a lower cost of customer acquisition.

Our IHG One Rewards loyalty programme

is central to our progress, with members

accounting for 66% of all rooms booked

globally, growing by over three percentage

points in each region and highest in the

US and Americas overall at 73%. These

members also typically spend around 20%

more in hotels than non-members and

are 10 times more likely to book direct.

Co-branded IHG One Rewards credit

card holders stay even more frequently

and spend more in hotels. Following new

agreements with our US co-brand partners

in the previous year, we approximately

doubled our fees recognised in operating

profit from reportable segments in 2025.

The number of US co-brand card members

saw high single-digit percentage growth

in 2025, alongside a comparable uplift

in total card spend, and we expanded

our partnership with Chase by introducing

new IHG One Rewards status benefits

for Chase Sapphire Reserve and Chase

Sapphire Reserve for Business cardholders.

Separately, we recently signed a new UK

co-branded IHG One Rewards debit card

agreement with Revolut, alongside Visa,

with card products scheduled to be

launched later this year. Further co-brand

priority growth markets are targeted

for future years.

The transformation of our technology

in recent years is strengthening how we

promote our hotels, optimise operations

and engage with guests. Our IHG One

Rewards mobile app is central to driving

engagement across our direct channels,

with nine million downloads during the year.

Building on our work to create compelling

content that drives bookings, we are

developing a new digital content

management platform, with a phased

rollout beginning in 2026 across our app

and all IHG booking websites to support

owners in showcasing their hotels more

effectively in an increasingly AI-driven world.

Our digital partnerships are another way

we encourage guests to book through

our direct channels and connect with IHG

One Rewards via their preferred platforms.

During the year, we teamed up with

Rakuten and launched the LINE mini

app in Japan.

Working with third-party suppliers,

industry-leading technology helps owners

keep hotels running smoothly and

efficiently by providing sophisticated

solutions across more than 100

enterprise-wide applications.

This includes cloud-based systems, such

as our revenue management system (RMS),

which has now completed rollout across

our global estate of 6,800 eligible hotels

and is using data science, AI machine

learning and forecasting tools to deliver

advanced insights. User feedback is very

positive, and indicative levels of revenue

uplift and market share gains have been

encouraging.

Our best-in-class property management

systems (PMS) are creating even greater

value for owners by providing 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, such

as mobile and remote access. HotelKey

was our first approved PMS solution in the

Americas and EMEAA, and an equivalent

platform from Shiji has been deployed to

hotels in Greater China. In addition, we

recently established a new agreement to

provide Oracle OPERA Cloud as a further

PMS solution for IHG hotel owners. The

accelerated roll out of these cloud-based

PMS solutions reached 2,000 hotels in 2025,

and we expect to double this to 4,000

by the end of 2026.

Our Guest Reservation System (GRS)

enables upselling of unique room attributes

so guests can seamlessly select add-ons

while owners maximise revenue. Now live

across our global estate, approximately

half of customers saw an up-sell offer at

some point in their booking journey in 2025,

up from 30% in 2024. When selected,

these offers are achieving average nightly

room revenue increases approaching $50

for Luxury & Lifestyle and $20 across

our Essentials and Suites brands. This

is driving more bookings into premium

rooms and more revenue to hotel owners.

Updates in 2025 included marketing texts

highlighting the leading room attribute,

such as Pacific Ocean View, instead of room-

type names, so guests better understand

what they are paying for. We also introduced

an elevated display allowing up to six

offers to be shown simultaneously on

direct channels.

Our technology is driving engagement

with guests through seamless, elevated

experiences, such as IHG Wi-Fi Auto Connect

automatically connecting IHG One Rewards

members to hotel wi-fi without passwords

or logins. Another notable example includes

the expansion of digital check-out, which

is now available at more than 3,500 hotels,

and we are piloting both digital check-in

and a messaging service so that guests can

easily connect with hotel colleagues during

their stay. Development is also underway

on a new loyalty and customer relationship

management (CRM) platform to drive

guest engagement and more personalised

experiences during booking and on-property

to help increase guest satisfaction and

deepen loyalty.

Just as it is expected to transform most

sectors, AI is set to be a game-changer for

travel. We are harnessing every dimension –

automation, machine learning, generative

AI and agentic – while tracking emerging

trends to deliver competitive advantage in

how we elevate guest experiences, unlock

revenue opportunities and drive returns

for owners. This includes working with

best-in-class suppliers to fulfil specific

needs, from cloud-based integration of

different technology platforms, to using

AI across our distribution and marketing

channels to improve customer acquisition

and deepen guest relationships. AI is

also supporting the lowering of costs and

increasing the effectiveness of service

delivery for our hotel owners in other areas.

For example, in powering more than 700

delivery robots in over 500 hotels across

Greater China to assist staff with cleaning

and delivering food to guestrooms, as well

as our Digital Concierge chatbot service

handling 5.1 million guest conversations

in 2025 – up 40% year-on-year – with new

features such as bill requests and loyalty

points tracking saving hotel teams time

and improving customer satisfaction.

Within IHG's own operations, we have

also launched numerous AI-powered

automations as part of our ongoing

efficiency programmes to sharpen

our cost base and boost productivity.

---

| |
|:---|
| 6,800<br>eligible hotels now featuring our <br>new revenue management system.<br>|
| 66%<br>of room nights globally booked <br>by IHG One Rewards members – <br>increasing loyalty penetration.<br>|
| ~50%<br>of guests saw an up-sell offer at <br>some point in their booking journey <br>in 2025, up from 30% in 2024.<br>|
| 26%<br>of total room revenue driven by <br>IHG's direct digital booking channels.<br>|

---

---

| | | |
|:---|:---|:---|
| 38 | IHG | Annual Report and Form 20-F 2025 |

---

Our strategy continued<br>

![Care_main image.jpg](ihg-20251231_g115.jpg)

**Care for our people,** 

**communities and planet**

Caring for our people, communities and planet has

been at the heart of what we do for many years. With more

than 6,900 hotels in neighbourhoods around the world,

we value the opportunity to be a force for good by

positively impacting the lives of millions every day

and protecting the world around us.

87% employee engagement

places IHG in the top quartile

of most engaged employers.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 39 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**What we achieved in 2025**

**Our people**

Our success is underpinned by our inclusive

culture, which attracts the talent we need

to succeed as a global business. This is

supported by a clear framework that aligns

our global and local priorities to maximise

impact in creating opportunities for all.

This is important to us all at IHG, reflected

by our 2025 Colleague HeartBeat survey,

where nine in 10 colleagues said IHG has an

inclusive culture. In 2025, we strengthened

our approach by focusing on three areas:

talent and leadership; culture and

experiences; and community and

partnerships.

During the year, we helped accelerate

our growth through a sharper focus on

performance, strengthening the link

between individual achievement and

collective success. Steps included fine-

tuning goal-setting and feedback, support

for leaders and colleagues, as well as

activating changes to better reward

high performers.

Engaging with colleagues is a cornerstone

of our culture, and we provide listening

forums throughout the year so they

can express their views. This includes our

colleague engagement survey, Colleague

HeartBeat, where we achieved a score of

87% in 2025 to maintain our place in the

top quartile of most engaged employers.

In addition, we were also named in the

Fortune 100 Best Companies to Work

For® 2025 list by Great Place To Work®

and Fortune.

We are committed to attracting and

retaining a skilled workforce<sup>a</sup>. During the

year, we refined our search and selection

practices and used technology to improve

efficiency and streamline parts of the

recruitment process. We continued to build

engagement with our careers website,

while extending our social media presence

across our careers channels. We also

enhanced colleague travel benefits to

increase our attractiveness as an employer

and to reward and retain colleagues.

We also strengthened our talent pipeline

and leadership capabilities for managed

hotels through programmes such as

the RISE mentoring programme and the

Journey to General Manager programme,

which welcomed hundreds of participants

and successfully placed candidates in

General Manager roles. In 2025, we also

launched our Journey to Supervisor and

Journey to Manager programmes for

managed and franchised hotels to create

clearer pathways for talented colleagues

to build rewarding careers in IHG hotels.

An integral part of our global approach

to responsible business is to promote

respect for and advance human rights

in accordance with internationally

recognised standards.

a.We do not employ colleagues in franchise hotels, nor do we control their day-to-day operations, policies or procedures.

---

| |
|:---|
| 10.2m<br>lives improved since 2021 <br>through our collective action <br>and work with charity partners.<br>|
| 10.2%<br>reduction in energy per available <br>room compared with 2019.<br>|

---

In 2025, we continued to drive compliance

with our Responsible Labour Requirements

and, recognising the important role hotels

can play in preventing human trafficking,

we launched new, survivor-informed

training developed in partnership with

a leading anti-trafficking NGO and

industry peers, which is mandated for

all colleagues globally.

**Our communities**

We are proud to be at the heart of

thousands of communities worldwide,

and central to our Journey to Tomorrow

responsible business plan is a plan to

improve the lives of 30 million people

through skills training, disaster response

and food security.

We have helped improve the lives of

10.2 million people since 2021 through

our community partnerships, volunteering

days and programmes. This includes our

IHG Academy, which helps future talent

to explore a rewarding career in travel.

During the year, we trained and upskilled

over 80,000 people, including launching

Virtual Discover sessions so participants

could find out more about hospitality from

IHG hotel colleagues. We also worked

with organisations to help provide

job opportunities across our markets,

including Springboard in the UK, China

Youth Development Foundation in Greater

China, the Tourism and Hospitality Skill

Council in India, and the Al Noor Training

Centre for People of Determination

in Dubai.

We responded to 22 natural disasters

in 2025, working closely with charity

partners to support relief and recovery

efforts. We are also working with global

NGO Action Against Hunger to combat

food insecurity and hunger for millions

around the globe. Since launching the

partnership in 2024, we have helped

support 5.4m people as part of Action

Against Hunger's global nutrition

programmes in over 50 countries, through

colleague fundraising, loyalty points

donations and hotel initiatives. We also

worked with our long-standing partners

to strengthen food systems within our

communities, including OzHarvest –

a food rescue organisation in Australia.

Every September, IHG colleagues take

part in Giving for Good month to give

back to their communities. Colleagues

take part in activities ranging from clean-

up events and supporting homeless

shelters and food banks, to fundraising

for local organisations.

**Our planet**

Our commitment to improve the efficiency

of our hotels has achieved double-digit

reductions in both emissions and energy

use per available room compared with

our 2019 baseline. Yet, as we highlighted

during the year, access to clean-energy

infrastructure remains limited in many

of our markets which, combined with the

successful expansion of our estate, has

increased total carbon emissions by 7.7%

since 2019. In 2026, we will refine elements

of our Journey to Tomorrow responsible

business plan to sharpen our focus on

areas where we can make the greatest

impact as we drive further progress

against our priorities.

We are dedicated to assisting hotel

owners in reducing carbon emissions, and

in 2025 we continued to implement brand

standards to drive energy efficiency, as

well as reduce waste, and we expanded

our Low Carbon Pioneers programme to

help us test, learn and share findings on

sustainability measures. The programme

now has hotels spanning Asia, Europe

and South America.

We continue to explore ways our hotels can

reduce energy consumption, and almost

95% of our managed, owned & leased

hotels have now been upgraded with LED

lighting and have water-efficient fixtures,

including in back-of-house areas.

More than 650 hotels participated in our

Meeting for Good programme, which helps

meet demand for sustainable meetings

and events, and it was named 2025 Gold

Medal winner in Northstar's Stella Awards

for Best Sustainability Initiative.

To reduce plastic waste, we extended

brand standards to eliminate plastic

water bottles from guestrooms, meetings

and events to further markets in EMEAA,

and introduced a new brand standard to

remove plastic bin liners from guestrooms

across the entire region. To reduce

food waste, we expanded collaboration

with food redistribution organisation

Xishi Magic Bag in Greater China, which

connects hotels with customers when

they have unsold surplus food.

Steps taken to reduce water usage included

launching a new water conservation

guidebook for hotels in the Americas

and EMEAA, which shares best practice

on driving efficiency across departments,

from heating to landscaping.

---

| | |
|:---|:---|
| **+** | For more on people, communities and <br>planet, see our Responsible Business <br>chapter on pages 54 to 84. |
|  | For more on people, communities and <br>planet, see our Responsible Business <br>chapter on pages 54 to 84. |
|  | For more on people, communities and <br>planet, see our Responsible Business <br>chapter on pages 54 to 84. |

---

---

| | | |
|:---|:---|:---|
| 40 | IHG | Annual Report and Form 20-F 2025 |

---

Our key performance indicators (KPIs)<br>

---

| |
|:---|
| How we measure our progress |
| Our KPIs are carefully selected to allow us to monitor the delivery of our strategy and long-term <br>success. They are organised around our strategy, which articulates our purpose, ambition <br>and priorities (see page 30). KPIs are reviewed annually by senior management to ensure <br>continued alignment, and are included in internal reporting and regularly monitored.<br>Measures included are those considered most relevant in assessing the performance of the business and relate to our <br>growth and commitment to key stakeholders including owners, guests, employees, shareholders and the communities <br>in which we work. KPIs should be read in conjunction with the other sections of the Strategic Report, and where applicable, <br>references to specific relevant topics are noted against each KPI.<br>|

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Link between KPIs and** <br>**Director remuneration**<br>As we continue to focus on delivering <br>high-quality growth, Directors' remuneration <br>for 2025 was directly related to key aspects <br>of our strategy. The following indicates which <br>KPIs have impacted Directors' remuneration: | **A** | **Annual Performance Plan**<br>–70% was linked to operating <br>profit from reportable segments<sup>a</sup>.<br>–15% was linked to strategic <br>focus on net system size growth <br>through openings.<br>–15% was linked to strategic <br>focus on future net system size <br>growth through signings. | **LT** | **Long Term Incentive Plan**<br>–20% was linked to relative <br>Total Shareholder Return.<br>–20% was linked to relative <br>net system size growth.<br>–20% was linked to absolute <br>cash flow generation.<br>–20% was linked to adjusted EPS<sup>a</sup>.<br>–20% was linked to Carbon <br>and People<sup>b</sup>. |
| **Link between KPIs and** <br>**Director remuneration**<br>As we continue to focus on delivering <br>high-quality growth, Directors' remuneration <br>for 2025 was directly related to key aspects <br>of our strategy. The following indicates which <br>KPIs have impacted Directors' remuneration: |  | **Annual Performance Plan**<br>–70% was linked to operating <br>profit from reportable segments<sup>a</sup>.<br>–15% was linked to strategic <br>focus on net system size growth <br>through openings.<br>–15% was linked to strategic <br>focus on future net system size <br>growth through signings. |  | **Long Term Incentive Plan**<br>–20% was linked to relative <br>Total Shareholder Return.<br>–20% was linked to relative <br>net system size growth.<br>–20% was linked to absolute <br>cash flow generation.<br>–20% was linked to adjusted EPS<sup>a</sup>.<br>–20% was linked to Carbon <br>and People<sup>b</sup>. |
| **Link between KPIs and** <br>**Director remuneration**<br>As we continue to focus on delivering <br>high-quality growth, Directors' remuneration <br>for 2025 was directly related to key aspects <br>of our strategy. The following indicates which <br>KPIs have impacted Directors' remuneration: |  | **Annual Performance Plan**<br>–70% was linked to operating <br>profit from reportable segments<sup>a</sup>.<br>–15% was linked to strategic <br>focus on net system size growth <br>through openings.<br>–15% was linked to strategic <br>focus on future net system size <br>growth through signings. |  | **Long Term Incentive Plan**<br>–20% was linked to relative <br>Total Shareholder Return.<br>–20% was linked to relative <br>net system size growth.<br>–20% was linked to absolute <br>cash flow generation.<br>–20% was linked to adjusted EPS<sup>a</sup>.<br>–20% was linked to Carbon <br>and People<sup>b</sup>. |

---

---

| | |
|:---|:---|
| **+** | For more information on Directors' remuneration, <br>see pages 138 to 161. |
|  | For more information on Directors' remuneration, <br>see pages 138 to 161. |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Link to our strategy**<br>Our four strategic priorities are core to <br>our success and represented as follows: | ![KPI_icon1.gif](ihg-20251231_g116.gif) | ![KPI_icon2.gif](ihg-20251231_g117.gif) | ![KPI_icon3.gif](ihg-20251231_g118.gif) | ![KPI_icon4.gif](ihg-20251231_g119.gif) |
| **Link to our strategy**<br>Our four strategic priorities are core to <br>our success and represented as follows: | **Relentless focus** <br>**on growth**<br>| **Brands guests** <br>**and owners love**<br>| **Leading** <br>**commercial** <br>**engine**<br>| **Care for our people,** <br>**communities** <br>**and planet**<br>|

---

**System size**<br>

**Signings**<br>

Total number of rooms

in the IHG system.

Increasing our rooms supply

provides significant advantages

of scale, including increasing the

value of our loyalty programme.

This measure is a key indicator

of achievement of our growth

agenda (see page 32).

![266](ihg-20251231_g120.gif)

**2025**

**2024**

**2023**

**2022**

**2021**

---

| | | | |
|:---|:---|:---|:---|
| **A** | **LT** | ![KPI_icon1_no_bgrd.gif](ihg-20251231_g121.gif) | ![KPI_icon2_no_bgrd.gif](ihg-20251231_g122.gif) |

---

Gross total number of rooms

added to the IHG pipeline.

Continued signings secure

the future growth of our system

and ongoing efficiencies of scale.

Signings indicate our ability

to deliver sustained growth

(see page 32).

![491](ihg-20251231_g123.gif)

**2025**

**2024**

**2023**

**2022**

**2021**

---

| | | |
|:---|:---|:---|
| **A** | ![KPI_icon1_no_bgrd.gif](ihg-20251231_g121.gif) | ![KPI_icon2_no_bgrd.gif](ihg-20251231_g122.gif) |

---

**2025 status**<br>

–System size increased by 4.0% on

a reported basis. After adjusting for the

impact of removing 7,092 rooms previously

affiliated with The Venetian Resort Las Vegas,

our net system growth accelerated to

4.7%, with gross system growth of 6.6%

and a removals rate of 1.9%.

–Total rooms supply surpassed the one million

milestone, with 1,026,177 rooms open at

31 December 2025.

–During the year, signings totalled 102,054

rooms (694 hotels). This included 6,741 Ruby

rooms (36 hotels), of which 5,718 rooms

(30 hotels) were part of the initial agreement;

the first 2,952 Ruby rooms (17 hotels) joined

IHG's system in the year. Overall signings

decreased by 3.9% year-on-year, reflecting the

inclusion in 2024 of 17,703 rooms (119 hotels)

as part of the NOVUM Hospitality agreement.

–Total pipeline of 339,526 rooms increased

by 4.4% year-on-year, with around half

under construction.

–Strengthened the Holiday Inn Brand Family

with 20,338 rooms opened and 37,809 rooms

signed, representing 35% of openings and

signings globally.

–voco signings of 10,563 rooms, with 124

properties open across more than 30 countries

since launch in 2018, and a further 108 hotels

in the pipeline.

–Continued momentum of our Luxury & Lifestyle

portfolio with 11,635 rooms opened and 18,635

rooms signed.

–Expansion of our newer brands with:

–Nine Atwell Suites open, including its debut in

Greater China, and 56 properties in the pipeline;

–Vignette Collection growing to 31 open and

45 pipeline hotels since its launch in 2022;

–11 avid hotels openings and 11 signings,

taking the estate to 87 hotels open with a

further 116 properties in the pipeline; and

–Further global rollout of Garner since

its launch in 2023 to 89 properties open,

representing year-on-year growth of

6,101 rooms to 8,501 rooms, and a further

77 properties in the pipeline.

**2026 priorities**

–Further expansion into our core markets

and targeted entry into new geographies

across all segments and regions to deliver

strong net system size growth.

–Accelerate growth of our newer brands

to increase market share and scale.

–Continue to strengthen our Luxury &

Lifestyle offer and capabilities, including

branded residences and resorts.

–Strengthen Premium offer through the

international expansion of Ruby and

the launch of Noted Collection.

a.Use of Non-GAAP measures: In addition to performance measures directly observable in the Group Financial Statements (IFRS measures),

additional financial measures (described as Non-GAAP) are presented that are used internally by management as key measures to assess performance.

Non-GAAP measures are either not defined under IFRS or are adjusted IFRS figures. Further explanation in relation to these measures can be found

on pages 107 to 112, and reconciliations to IFRS figures, where they have been adjusted, are on pages 250 to 256.

b.People targets subsequently removed. Further explanation can be found in the Directors' Remuneration Report on pages 138 to 161.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 41 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Global RevPAR growth**<br>

**Growth in underlying fee revenues**<sup>a</sup><br>

Revenue per available room:

rooms revenue divided by the

number of available rooms.

RevPAR growth indicates the

increased value guests ascribe

to our brands in the markets in

which we operate and is a key

measure widely used in our

industry (see page 20). Definition

of this key performance measure

can be found on page 107.

![2978](ihg-20251231_g124.gif)

&nbsp;&nbsp;&nbsp;&nbsp;

**2025 1.5%**

&nbsp;&nbsp;&nbsp;&nbsp;**2024 3.0%**

**2023**

**2022**

**2021**

---

| | | |
|:---|:---|:---|
| ![KPI_icon1_no_bgrd.gif](ihg-20251231_g121.gif) | ![KPI_icon2_no_bgrd.gif](ihg-20251231_g122.gif) | ![KPI_icon3_no_bgrd.gif](ihg-20251231_g125.gif) |

---

Revenue from reportable

**2025**

**2024**

**2023**

**2022**

segments excluding revenue

from insurance activities, revenue

from owned & leased hotels,

significant liquidated damages

and current year acquisitions,

stated at constant currency.

Underlying fee revenue growth

demonstrates the continued

attractiveness to owners and

guests of IHG's franchised and

managed business (see page 25).

![3336](ihg-20251231_g126.gif)

---

| | | |
|:---|:---|:---|
| ![KPI_icon1_no_bgrd.gif](ihg-20251231_g121.gif) | ![KPI_icon2_no_bgrd.gif](ihg-20251231_g122.gif) | ![KPI_icon3_no_bgrd.gif](ihg-20251231_g125.gif) |

---

**Total gross revenue from** <br>**hotels in IHG's system**<br>

**Enterprise contribution** <br>**to revenue**<br>

Total rooms revenue from

franchised hotels and total

hotel revenue from managed,

exclusive partner and owned

& leased hotels. Other than

for owned & leased hotels, it is

not revenue wholly attributable

to IHG, as it is mainly derived from

hotels owned by third parties.

The growth in gross revenue

from IHG's system illustrates the

value of our overall system to our

owners (see page 25). Definition

of this key performance measure

can be found on page 107.

![3802](ihg-20251231_g127.gif)

**2025**

**2024**

**2023**

**2022**

**2021**

---

| | | |
|:---|:---|:---|
| ![KPI_icon1_no_bgrd.gif](ihg-20251231_g121.gif) | ![KPI_icon2_no_bgrd.gif](ihg-20251231_g122.gif) | ![KPI_icon3_no_bgrd.gif](ihg-20251231_g125.gif) |

---

The percentage of room revenue

**2025**

**2024**

**2023**

**2022**

**2021**

booked through IHG-managed

channels and sources: direct via

our websites, apps and call centres;

through our interfaces with Global

Distribution Systems (GDS) and

agreements with Online Travel

Agencies (OTAs); other distribution

partners directly connected

to our reservation system; and

Global Sales Office business

or IHG One Reward members

that book directly at a hotel.

Enterprise contribution is one

indicator of IHG value-add and

the success of our technology

platforms, and our marketing,

sales and loyalty distribution

channels (see page 36).

![4388](ihg-20251231_g128.gif)

---

| | | |
|:---|:---|:---|
| ![KPI_icon1_no_bgrd.gif](ihg-20251231_g121.gif) | ![KPI_icon2_no_bgrd.gif](ihg-20251231_g122.gif) | ![KPI_icon3_no_bgrd.gif](ihg-20251231_g125.gif) |

---

**2025 status**<br>

–RevPAR growth of 1.5% in 2025 was driven

by both average daily rate and occupancy,

as Business and Groups demand increased,

with Leisure flat year-on-year.

–Grew underlying fee revenue<sup>a</sup> by 6.2%,

driven by a combination of RevPAR growth,

the further broadening of our global estate

and the expansion of ancillary fee streams.

–Total gross revenue increased by 5.3% to

$35.2bn, as we continued to strengthen

owner returns and enhance the guest

experience by investing in our enterprise:

–maximising guest choice and driving

incremental value for owners from the

continued rollout in the up-sell of unique

room attributes through our industry-

leading Guest Reservation System;

–delivered our new cloud-based Revenue

Management System (RMS), completing the

roll-out across our global estate of 6,800

eligible hotels, which utilises leading data

science, machine learning and forecasting

tools to provide advanced insights and

recommendations to owners; and

–continued roll-out of next-generation

PMS, a cloud-based, above-property

platform, enabling deployment of efficient

enhancements, including streamlined

front desk processes.

–Improved overall enterprise contribution by

2%pts year-on-year, with IHG's direct digital

booking channels accounting for over

26% of total room revenue.

–Further development in our mobile app

and AI-backed digital chatbot technology,

resulting in growth in direct mobile and

digital bookings.

–Boosted loyalty and brand awareness,

with over 160 million IHG One Rewards

members, and enrolments up +25% year-

on-year, demonstrating strong member

engagement and driving owner returns.

**2026 priorities**

–Drive hotel performance through the

RMS with evolved revenue services.

–Continue to grow the co-brand credit

cards programme in the US, and

launch in international markets.

–Further leverage data analysis to

drive performance, create insights

and power AI opportunities.

–Continued scale and investment

in IHG One Rewards to further

grow and deepen engagement of

loyalty members through continued

enhancements in guest benefits

and personalisation.

–Expand procurement solutions to

drive development and operating

cost efficiencies that generate

greater owner value.

a.Use of Non-GAAP measures: In addition to performance measures directly observable in the Group Financial Statements (IFRS measures),

additional financial measures (described as Non-GAAP) are presented that are used internally by management as key measures to assess performance.

Non-GAAP measures are either not defined under IFRS or are adjusted IFRS figures. Further explanation in relation to these measures can be found

on pages 107 to 112, and reconciliations to IFRS figures, where they have been adjusted, are on pages 250 to 256.

b.The 2021 growth figure is excluded from the comparison as the 2020 figure was not re-presented following the adoption of IFRS 17 'Insurance

Contracts' in 2023.

---

| | | |
|:---|:---|:---|
| 42 | IHG | Annual Report and Form 20-F 2025 |

---

Our key performance indicators (KPIs) continued<br>

**Fee margin**<sup>a</sup><br>

**Adjusted earnings per share**<sup>a</sup><br>

Operating profit as a percentage

of revenue, excluding System

Fund, reimbursement of costs,

revenue and operating profit from

owned & leased hotels, significant

liquidated damages, insurance

activities and exceptional items.

Our fee margin indicates the

profitability of our fee revenue

and the benefit of our asset-light

business model (see page 24).

![6910](ihg-20251231_g129.gif)

**2025**

**2024**

**2023**

**2022**

**2021**

---

| | | |
|:---|:---|:---|
| ![KPI_icon1_no_bgrd.gif](ihg-20251231_g121.gif) | ![KPI_icon2_no_bgrd.gif](ihg-20251231_g122.gif) | ![KPI_icon3_no_bgrd.gif](ihg-20251231_g125.gif) |

---

Adjusted earnings per share takes

**2025**

**2024**

**2023**

**2022**

**2021**

the profit available for equity

holders used in the calculation

of basic earnings per share and

adjusts this to exclude certain

items in order to provide a value

that is consistent with how

management monitors the

business (see page 109).

This measure reflects shareholder

value creation, including that

through capital allocation, such

as the effect of increasing the

measure by reducing the number

of shares through buybacks.

![7377](ihg-20251231_g130.gif)

---

| | |
|:---|:---|
| **LT** | ![KPI_icon1_no_bgrd.gif](ihg-20251231_g121.gif) |

---

It has become an increasingly

important measure as part of

IHG's ongoing return of surplus

capital to shareholders, and is

already a defined performance

measure within the LTIP.

**2025 status**<br>–Fee margin increased by 3.6%pts to 64.8%, driven by growth <br>in our system, RevPAR and ancillary fee streams, combined <br>with continued cost efficiencies.<br>–Around 2.3%pts was driven by operational leverage, including <br>the benefits from our global efficiency programme, and a further <br>1.3%pts was due to incremental fees from the US co-brand <br>credit card agreements and from the sale of certain loyalty <br>points (together with certain other ancillary revenues).<br>**2026 priorities**<br>–Continued focus on cost and efficiency.<br>–Utilise technology applications and process enhancements <br>to achieve operational efficiencies.<br>–Further reinvestment to drive growth and expand margin <br>over the long term.<br>

**2025 status**<br>–Adjusted earnings per share grew by 15.9%, driven by 11.0% <br>growth in adjusted earnings reflecting revenue and system growth, <br>fee margin expansion through efficiency and cost control, <br>together with the cumulative impact of share buybacks lowering <br>the weighted average share count by 4.2%.<br> **2026 priorities**<br>–Drive continued adjusted EPS growth through maximising <br>system and revenue growth, sustainable fee margin expansion, <br>disciplined cash conversion, and a new $950m share buyback <br>programme, supporting the growth algorithm while investing <br>in future growth of the business.<br>

**Adjusted free cash flow**<sup>a</sup><br>

**Employee engagement survey scores**<br>

Cash flow from operating activities

excluding payments of deferred or

contingent purchase consideration,

recyclable contract acquisition

costs, cash flows relating to

exceptional items, interest receipts

related to owner loans and lease

incentives, less purchase of

shares by employee share trusts,

gross maintenance capital

expenditure, and lease payments,

and including finance lease income

relating to sub-leases, and any

payments or repayments related

to investments supporting the

Group's insurance activities.

![8084](ihg-20251231_g131.gif)

**2025**

**2024**

**2023**

**2022**

**2021**

---

| | | | |
|:---|:---|:---|:---|
| **LT** | ![KPI_icon1_no_bgrd.gif](ihg-20251231_g121.gif) | ![KPI_icon2_no_bgrd.gif](ihg-20251231_g122.gif) | ![KPI_icon3_no_bgrd.gif](ihg-20251231_g125.gif) |

---

Adjusted free cash flow<sup>a</sup> provides

funds to invest in the business,

sustainably grow the dividend and

return any surplus to shareholders

(see page 26). It is a key component

in measuring the ongoing viability

of our business (see page 113).

Colleague HeartBeat survey,

**2025**

**2024**

**2023**

**2022**

**2021**

completed by IHG colleagues

employed in corporate and

reservations offices and owned

& leased or managed hotels.

We measure employee

engagement to monitor risks

relating to talent (see page 50)

and to help us understand the

issues that are relevant to our

people as we build an inclusive

culture (see page 39).

![8667](ihg-20251231_g132.gif)

![KPI_icon4_no_bgrd.gif](ihg-20251231_g133.gif)<br>

**2025 status**<br>–Adjusted free cash flow increased by $238m to $893m <br>due to growth in operating profit from reportable segments<sup>a</sup>, <br>an improvement in the System Fund and reimbursable result, <br>a reduction in contract acquisition costs and lower tax payments, <br>partially offset by higher interest payments. <br>**2026 priorities**<br>–Continue to deliver strong conversion of adjusted earnings<sup>a</sup><br>into adjusted free cash flow.<br>–Timely management of capital deployment in line with <br>business priorities.<br>

**2025 status**<br>–Our score of 87% in 2025 is 10%pts higher than the external <br>top quartile benchmark.<br>–We consistently achieved high engagement scores across our <br>Hotel and Corporate populations, demonstrating our ongoing <br>commitments to global colleague development and retention.<br>**2026 priorities**<br>–Further strengthen leadership capability to embed our <br>high performance culture and drive colleague engagement.<br>–Enhance our people technology and expand AI use to help <br>colleagues and leaders make faster, better informed decisions.<br>–Expand and embed our HR service model to provide more <br>consistent and effective support for hotel and corporate teams.<br>

---

| | | | | | | | |
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| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 43 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Guest Love** <br>

**Greenhouse gas emissions**<sup>b</sup><br>

IHG's guest satisfaction

measurement indicator.

Guest satisfaction is fundamental

to our continued success and

is a key measure to monitor our

ability to deliver an experience

that meets and exceeds guests'

expectations (see page 34

for details).

![8926](ihg-20251231_g134.gif)

**2025**

**2024**

**2023**

**2022**

**2021**

---

| | | |
|:---|:---|:---|
| ![KPI_icon1_no_bgrd.gif](ihg-20251231_g121.gif) | ![KPI_icon2_no_bgrd.gif](ihg-20251231_g122.gif) | ![KPI_icon3_no_bgrd.gif](ihg-20251231_g125.gif) |

---

Total market-based greenhouse

**2025**

**2024**

**2019**

gas (GHG) emissions (measured

in tonnes of CO2e) across our

corporate offices, franchised

estate, managed and owned

& leased hotels. For further

details on our carbon footprint

methodology, please refer

to pages 82 to 83.

![9182](ihg-20251231_g135.gif)

![KPI_icon4_no_bgrd.gif](ihg-20251231_g133.gif)<br>

**2025 status**<br>–Guest satisfaction of 82.3% continued to improve, reflecting <br>increases in quality and investment in the guest experience.<br>–Externally measured Guest Satisfaction Index (GSI) achieved <br>scores over 100 in all three regions, showing we are outperforming <br>our peers as we focus on guest experience improvements.<br>–Continued plans to ensure a consistent high-quality experience <br>for each of our brands, including improvements in food and <br>beverage, hotel condition and service.<br>**2026 priorities**<br>–Improve the guest experience and elevate brand performance <br>by prioritising quality and experience across areas such as <br>loyalty recognition, groups and meetings, digital engagement, <br>service and public spaces.<br>–Continued focus on data-driven insights, targeted improvement <br>plans, cross-team collaboration, and ongoing renovations to <br>increase the number of high-performing properties within <br>the portfolio.<br>–Utilise GenAI to deliver actionable guest insights that drive strategic <br>decision-making and property-level solutions to enhance the <br>brand and hotel experience.<br>

**2025 status**<br>–Our ongoing commitment to energy reduction and decarbonisation <br>has delivered a 10.2% reduction in energy per available room and <br>an 11.0% reduction in carbon emissions per available room in 2025 <br>compared with 2019.<br>–Last year, we reported that we were off track to meet our 2030 target <br>(46% reduction in greenhouse gas emissions by 2030), and this <br>continues to be the case in 2025 due to the continued lack of a clean <br>energy infrastructure in many of our markets, alongside the successful <br>opening of more hotels globally. This means total carbon emissions <br>are up 7.7% since 2019.<br>–We remain dedicated to the actions we are taking to assist hotel <br>owners in reducing carbon emissions, and while our programmes <br>will require time to scale, the actions we are taking today will <br>improve operational efficiency of IHG hotels and prepare us <br>for accelerated decarbonisation once market factors are <br>more favourable.<br>**2026 priorities**<br>–Continue implementing our decarbonisation roadmap focusing <br>on energy efficiency measures in hotels, transitioning to renewable <br>energy and developing new-build hotels operating with very low <br>or zero carbon emissions.<br>–We are re-evaluating our targets, taking into account the evolving <br>sustainability landscape, including updates to carbon accounting <br>and target validation criteria and focusing on what IHG is able <br>to control and influence. <br>

a.Use of Non-GAAP measures: In addition to performance measures directly observable in the Group Financial Statements (IFRS measures),

additional financial measures (described as Non-GAAP) are presented that are used internally by management as key measures to assess performance.

Non-GAAP measures are either not defined under IFRS or are adjusted IFRS figures. Further explanation in relation to these measures can be found

on pages 107 to 112, and reconciliations to IFRS figures, where they have been adjusted, are on pages 250 to 256.

b.See pages 82 to 83 for detailed energy and carbon data. Figures are restated annually (see page 83 for our data methodology). Given 2025 revisions,

performance trends should be assessed using only the restated figures in this report. GHG emissions are presented for 2019, 2024 and 2025 only

to show progress against target and year-on-year change. Data for 2020–2023 has been removed for simplicity.

---

| | | |
|:---|:---|:---|
| 44 | IHG | Annual Report and Form 20-F 2025 |

---

Our stakeholders<br>

By engaging closely with our internal and external stakeholders, we build strong,

trusted relationships that support resilient growth, foster collaboration and innovation,

and underpin the long-term success and sustainability of IHG.

Shareholders and investors <br>

Our ability to maintain strong relationships with shareholders and institutional investors is fundamental to our ability

to access capital markets and ensure IHG's long-term success.

What impacted them in 2025

–The impact of geopolitical unrest on the

hospitality sector in certain regions, which

could affect IHG's trading performance

and financial results or influence its

capital allocation policy.

–Executive remuneration policies, including

the potential use of discretion, alignment

with workforce pay and talent retention.

–Environmental concerns and wider

sustainability issues.

Engagement

–Regular investor meetings and participation at

investor conferences by Executive Directors,

senior leadership and the Investor Relations

team.

–Extensive consultations between the

Chair of the Remuneration Committee,

the Chair and institutional investors

and proxy vote advisers.

Outcomes

–Continued investor confidence in

IHG's performance, long-term viability

and leadership, as demonstrated through

feedback received and across AGM results.

–Enhanced understanding of shareholder

and investor focus areas, including in relation

to strategy, remuneration policy and

environmental, social and governance matters.

–Continued investor confidence in

the composition of IHG's Board and

Executive Committee.

---

| | |
|:---|:---|
| **+** | See a description of our dividend policy on page 27, our KPIs on pages 40 to 43, key matters discussed by the Board on pages 124 and 125 <br>and engagement with shareholders relating to Executive Director remuneration on pages 138 to 139 and 142. |
|  | See a description of our dividend policy on page 27, our KPIs on pages 40 to 43, key matters discussed by the Board on pages 124 and 125 <br>and engagement with shareholders relating to Executive Director remuneration on pages 138 to 139 and 142. |

---

---

| | |
|:---|:---|
| **+** | Visit [ihg.plc/investors](ihg.plc/investors) for more information. |

---

Guests<br>

Our ability to offer a wide selection of brands with high-quality stay experiences, great value and loyalty rewards is

key to attracting and building trust with IHG's guests, while continuing to drive commercial performance and revenue.

What impacted them in 2025

–Increased demand for travel and access to a

broader range of locations and experiences.

–Continued desire to book and stay seamlessly.

–Rising cost of living.

–Increased competition among brands to

capture travel demand and brand loyalty.

–Interest in the social and sustainability

profiles of companies.

Engagement

–Major partnerships to enable IHG One Rewards

members to redeem points in exchange for

unique experiences.

–Continued improvement of next-generation

mobile app.

–Guest satisfaction surveys.

–New public space and guest room designs.

Outcomes

–Expanded brand portfolio providing

more choice for guests and more

ways for owners to grow with us.

–Increased choice in growth markets,

including Greater China, India,

Saudi Arabia, Japan and Germany.

–Strengthened IHG One Rewards

programme, providing more ways

to earn and redeem points.

–Increased impact of global partnership

with Action Against Hunger and continued

focus on hotel sustainability practices.

---

| | |
|:---|:---|
| **+** | See our Guest Love KPI on page 43 and how the Board had regard for guests as part of its consideration of strategic and operational matters <br>on pages 124 to 125. |
|  | See our Guest Love KPI on page 43 and how the Board had regard for guests as part of its consideration of strategic and operational matters <br>on pages 124 to 125. |

---

Hotel owners<br>

IHG's success relies on hotel owners investing in our brands. To remain attractive, we focus on the breadth of our brand

portfolio and the effectiveness of our IHG One Rewards loyalty programme and wider enterprise.

What impacted them in 2025

–High operating costs, including energy,

food and beverage.

–Labour shortages, supply chain challenges

and financial and operational constraints

caused by global macro-economic factors.

–Ability to capture and drive high levels

of demand for their hotels.

–Rollout of new technology to drive

efficiency and revenue.

Engagement

–Direct meetings with CEO and Regional CEOs.

–IHG Owners Association collaboration.

–Portfolio and individual hotel reviews covering

operational, strategic and industry trend updates.

–Conferences, training, webinars, regular

newsletters and bulletins.

–Hotel lifecycle and finance team support.

–Collaboration with governments and industry

to support owners' businesses and sector

more broadly.

Outcomes

–Launched and acquired new brands.

–Introduced existing brands to more

high-growth markets.

–Continued focus on IHG One Rewards

loyalty contribution.

–Continued incorporating energy conservation

measures into brand standards to reduce

utility bills.

–Introduced or enhanced technology systems

to support owners in managing their

properties, revenue and guest reservations.

–Expanded procurement services across

hotel lifecycle to drive savings.

---

| | |
|:---|:---|
| **+** | See Brands Guest and Owners Love on pages 34 to 35. |

---

–Next-generation formats for Holiday Inn

Express and Crowne Plaza brand evolution.

---

| | |
|:---|:---|
| **+** | Visit [owners.org](owners.org) for further information about the IHG Owners Association. |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 45 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

The Company measures engagement effectiveness through KPIs, performance,

talent retention, surveys and adherence to policies. It also considers external stakeholders'

views to enhance reputation as well as commercial and social awareness.

People<br>

Delivery of our purpose to provide True Hospitality for Good means upholding our Room for You promise and working

in a responsible way to cultivate IHG's strong, global culture and respect for all stakeholders.

What impacted them in 2025

–Continued economic uncertainty and cost-

of-living pressures; increased focus on total

rewards.

–Pressure for hotel and corporate talent,

with requirements for flexible roles,

skills and new capabilities.

–Increased use of AI technologies with

new capabilities required.

–Colleague experience in career development

flexibility, voice and increasing people

leader expectations.

Engagement

–Continued our 'employee voice'

listening interventions and strengthened

our Employer Brand.

–Activated changes to our performance

and reward approach through our

high-performance culture.

–Built clear expectations and tools

for our people leaders to embed our

high-performance culture.

–Anchored our growth behaviours

through introduction of a global feedback

campaign to grow capability.

Outcomes

–In 2025, we maintained our global

employee engagement score of 87%.

–Reshaped our LTIP and bonus structures

to align to our high-performance culture.

–Launched our IHG One Pass employee

benefits, expanding access to improve

attraction and retention of hotel talent.

–Built strong General Manager pipelines

through our 'Journey To' capability

programmes.

---

| | |
|:---|:---|
| **+** | See our employee engagement KPI on page 42, how the Board had regard for people in Board and remuneration decisions on pages 139, <br>145 and 163. Voice of the Employee disclosure on page 135, and our statement on employee engagement on page 261. |
|  | See our employee engagement KPI on page 42, how the Board had regard for people in Board and remuneration decisions on pages 139, <br>145 and 163. Voice of the Employee disclosure on page 135, and our statement on employee engagement on page 261. |

---

Communities<br>

Our responsible business approach and the commitments we have made to create a better and more sustainable future

through our Journey to Tomorrow programme actively involve and support the communities in which we operate.

What impacted them in 2025

–Cost-of-living pressures and rising levels

of food insecurity, influenced by ongoing

geopolitical tensions.

–Access to business skills development

and local employment opportunities.

–The impact of environmental challenges

across many of the communities where

we operate.

–Natural disasters, including hurricanes in

the US and typhoons in South East Asia.

Engagement

–Partner with specialist organisations – from

Action Against Hunger on food insecurity,

to disaster relief experts CARE International

and The International Federation of Red

Cross and Red Crescent Societies.

–Work with local education providers and

community organisations to offer skills

building and training opportunities.

–Run our annual Giving for Good month:

offering volunteering and community

activities for colleagues.

–Collaboration on human rights, including

launching new training on preventing human

trafficking developed with industry peers.

Outcomes

–10.2 million lives improved since 2021

through our collective action and work

with charity partners.

–Teamed up with charities to provide skills

training and job opportunities through

IHG Academy.

–Colleagues worked with over 700 charities

across events spanning 88 countries.

–Responded to 22 natural disasters

around the world.

---

| | |
|:---|:---|
| **+** | See the Responsible Business Committee Report on pages 134 and 135. |

---

---

| | |
|:---|:---|
| **+** | Visit [ihgplc.com/responsible-business](ihgplc.com/responsible-business) for further information on our community commitments. |

---

Suppliers<br>

Responsible supplier relationships are vital for IHG in driving efficiency and effectiveness throughout our supply chains.

What impacted them in 2025

–Ongoing uncertainty and disruption in

supply chains.

–Increased focus on sustainability and integrity

within supply chains.

–Increased consumer desire for sustainable

goods and services.

Engagement

–Delivered a targeted carbon management

webinar, supporting selected suppliers

to further develop their decarbonisation

strategies.

–In collaboration with Sedex, progressed

our supplier audit approach by introducing

targeted self-assessment questions for

shortlisted hotel suppliers.

–Introduced a supplier financial health

outreach programme to enhance

visibility of supplier resilience, focusing

on critical suppliers.

Outcomes

–Identified alternative solutions with

suppliers where supply was impacted

across our corporate and hotel estate.

–Remained agile by adjusting our approach

to goods and services sourced from

affected regions.

–Increased collaboration opportunities

with sustainable suppliers and for

sustainable goods in alignment with

our Journey to Tomorrow ambitions.

–Increased visibility and engagement with

critical suppliers to strengthen supply chain

resilience and sustainability performance.

---

| | |
|:---|:---|
| **+** | Further information about how the Board considered supply chain and procurement is on page 57, and our business relationships, <br>including our statement of business relationships with suppliers, customers and others, is on page 262. |
|  | Further information about how the Board considered supply chain and procurement is on page 57, and our business relationships, <br>including our statement of business relationships with suppliers, customers and others, is on page 262. |

---

---

| | |
|:---|:---|
| **+** | Visit [ihgplc.com/responsible-business](ihgplc.com/responsible-business) for further information about our approach to responsible procurement. |

---

---

| | | |
|:---|:---|:---|
| 46 | IHG | Annual Report and Form 20-F 2025 |

---

Our approach to risk and resilience<br>

Delivering IHG's strategic objectives requires balancing growth opportunities with resilience

and agility. Our risk management framework underpins this balance, ensuring decisions

are informed, controls are robust and emerging risks anticipated.

**How we define and review our** <br>**risk appetite and risk tolerance**<br>

**Key accountabilities and activities**

The Board, supported by the Audit Committee, Executive

Committee and delegated committees, is accountable for:

–maintaining a robust framework of effective controls

that enable risks to be managed;

–ongoing consideration of emerging and evolving

uncertainties across a wide range of topics and

timeframes;

–reviewing the overall levels of risk within the business,

our resilience to individual and aggregated uncertainties

and implications for strategic decision-making;

–evaluating our risk appetite and tolerance as part of

setting strategy, and cascading expectations through:

–our values and behaviours, reinforcing a risk

aware culture;

–our Code of Conduct, delegations of authority

and other key global policies;

–our goals and targets;

–frequent leadership communications to guide

decisions and set priorities; and

–reviewing policies, initiatives and learnings to determine

if they have operated within acceptable risk tolerances

where priorities have shifted or additional actions were

required to continuously enhance our future resilience.

**Key milestones and outcomes**

–Executive Committee and Board strategy meetings,

considering the level of risk we are willing to take

across our strategic priorities.

–Refining and communicating our bold ambitions

through our strategic priorities and associated

growth behaviours.

–Periodic review of key global policies, including

the Delegation of Authority.

–Dedicated Executive Sub-Committee to review

our risk financing and insurance strategy.

–Annual mandatory Code of Conduct training

to all colleagues.

**How we identify, discuss** <br>**and escalate risks, including** <br>**emerging factors**<br>

**Key accountabilities and activities**

Management teams across IHG are aware of the

challenges our current industry context creates. Risks

are identified, discussed and escalated through a variety

of steps across our decision-making calendar, including

specific interventions facilitated by our global Risk and

Assurance team. In 2025, these have included:

–portfolio risk reviews with the full Executive Committee;

–deep-dive discussions of each principal risk with

nominated Executive Committee sponsors;

–regional and functional leadership risk conversations

on risk prioritisation and preparedness to inform

strategic planning and investment decisions across

their area of the business;

–ongoing engagement with first-line teams with

day-to-day responsibilities for identifying and managing

risk within key decisions, programmes and transactions,

and escalating where appropriate; and

–targeted discussions of identified emerging topics,

including generative AI, supply chain resilience, and

social and ethical expectations factors, with external

insight where valuable. We think about emerging

risks as:

–new risks, or existing risks in a new context,

when the nature and value of the impact are

not yet known or understood; and

–factors with an increasing impact and probability

over a longer time horizon.

**Key milestones and outcomes**

–Risk and Assurance team partnered with the Strategy

team to guide regional and functional leadership

teams in reviewing their risk profiles as part of

2026 strategic planning and investment requests.

–Refreshed risk profiles for each principal risk,

considering trend indicators and key controls,

reviewed with Executive Committee sponsors.

–Mid- and full-year Executive Committee principal

risk review, reported to the Board.

**This section should be read together with the 2025 Board focus areas and activities and its delegated committees, and:**

![](ihg-20251231_g136.gif)

---

| | |
|:---|:---|
| **+** | Pages 123 to 137 for 2025 focus activities <br>and its delegated committees. |
|  | Pages 123 to 137 for 2025 focus activities <br>and its delegated committees. |

---

---

| | |
|:---|:---|
| **+** | Pages 30 to 39 for Our Strategy. |

---

---

| | |
|:---|:---|
| **+** | Pages 22 and 23 for more detailed <br>discussion of trends impacting our industry. |
|  | Pages 22 and 23 for more detailed <br>discussion of trends impacting our industry. |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 47 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**How we integrate our risk** <br>**management and internal control** <br>**framework components within** <br>**our business processes**<br>

**Key accountabilities and activities**

–Managing risk isn't one dimensional and management

teams across IHG apply many levers and routines

to anticipate, address and respond to uncertainty

as they drive to achieve business objectives.

–To align across the many different operational

and functional teams, the Risk and Assurance team

describe our risk management and internal control

framework using a deliberately simple structure

that can be applied to any principal risk area.

---

| | | |
|:---|:---|:---|
| ![Culture_Leadership_icon.gif](ihg-20251231_g137.gif) | ![Processes_Control_icon.gif](ihg-20251231_g138.gif) | ![Monitoring_Reporting_icon.gif](ihg-20251231_g139.gif) |
| **Culture** <br>**and leadership**<br>Leadership/<br>accountability<br>Policy/standards<br>Targets/incentives<br>Communication/<br>training<br>| **Processes** <br>**and controls**<br>Risk assessments <br>for key topics<br>Specific process/<br>control routines<br>Specific <br>measurement <br>activities<br>| **Monitoring** <br>**and reporting**<br>Indicators/<br>dashboards<br>Internal/external <br>reporting<br>|

---

–Elements of the framework are subject to ongoing

review and adjustment by management teams,

supported by subject matter experts including

consideration of how AI can be integrated.

–The Audit Committee reviews the ongoing effectiveness

of the risk management and internal control framework.

**Key milestones and outcomes**

–Review of key controls for each principal risk

with relevant Executive Committee sponsors.

–Consideration of confidence in the effectiveness

of our controls and resilience to risk with each of the

Executive Committee member's leadership team.

**The following pages describe examples of our key** <br>**controls, and we will be reviewing the effectiveness** <br>**of the most important controls in 2026.**<br>

**How the Board obtains assurance** <br>**in our risk management and resilience**<br>

**Key accountabilities and activities**

–Our governance arrangements enable the Board

and its delegated committees to receive insight

and conclude on the appropriateness of our risk

management and overall resilience during the year.

These include:

–risk and control considerations within presentations

from executive leadership on strategic delivery

and major programmes and technology initiatives,

including adoption of AI capabilities;

–updates on matters potentially impacting our

overall resilience, including our increased reliance

on third-party suppliers, and our crisis management

and business continuity frameworks;

–briefings on specific risk and control topics from

key second-line teams, such as information security,

privacy, ethics and compliance, financial governance,

operational safety and security, loyalty and System

Fund controls;

–review of our Group insurance arrangements,

including cyber;

–independent third-line internal audit reporting

on specific reviews, thematic observations on the

effectiveness of the risk management and internal

control framework, and trends from confidential

disclosure channel reporting and investigations; and

–updates from Risk and Assurance and the external

auditors to the Audit Committee in relation to

corporate governance developments.

For further information on how the Board and senior

management obtain assurance in our risk management

and resilience, see pages 123 to 137, which detail the

2025 focus areas and activities for the Board and its

delegated committees.

**Key milestones and outcomes**

–The Board concludes on the effectiveness of IHG's

risk management and internal control framework.

–Annual assessment of Global Internal Audit.

–

![](ihg-20251231_g140.gif)

---

| | |
|:---|:---|
| **+** | Our Risk Factors on pages 264 to 271. |

---

---

| | |
|:---|:---|
| **+** | Further detail on formal risk appetite and tolerance is provided in this report. For example, <br>our appetite for financial risk is described in note 23 to the Group Financial Statements <br>on pages 220 to 224. |
|  | Further detail on formal risk appetite and tolerance is provided in this report. For example, <br>our appetite for financial risk is described in note 23 to the Group Financial Statements <br>on pages 220 to 224. |
|  | Further detail on formal risk appetite and tolerance is provided in this report. For example, <br>our appetite for financial risk is described in note 23 to the Group Financial Statements <br>on pages 220 to 224. |

---

---

| | | |
|:---|:---|:---|
| 48 | IHG | Annual Report and Form 20-F 2025 |

---

Our principal risks and uncertainties<br>

Like many companies, we continue to face a dynamic environment, which includes multiple

factors from outside IHG and other inherent execution risks relating to our own initiatives

which have the potential to affect the level of uncertainty in relation to our principal risks.

Each of our principal risks often present

opportunity and threat at the same time.

We consider all risks to be material in

absolute terms with further detail of how

they have developed in 2025 shown on

the following pages.

Executive management monitors

indicators of changes in trends for key

uncertainties we face. These are shown

for each risk below. We also discuss

our existing levels of preparedness

and whether we need to evolve

our risk management and internal

control response, refresh our resilience

plans to anticipate threats or position

ourselves to exploit opportunities.

---

| | | | |
|:---|:---|:---|:---|
| **Existing and emerging** <br>**realities for 2026–2028…**<br>| **Refreshed principal risks** <br>**for 2026–2028.** | **Refreshed principal risks** <br>**for 2026–2028.** |  |
| –Government policy pivots <br>(tariffs, labour, tax).<br>–Escalating or spiking geopolitical tensions.<br>–Market or financial turbulence (including <br>cost of capital, supplier financial stress).<br>–Evolving cyber-attack methods.<br>–Variability and uncertainty in regulatory <br>enforcement.<br>–Litigation and regulatory complaints <br>by pressure and special interest groups.<br>–Social trends and attitudes – including <br>expectations on franchisors.<br>–Embedding of high performance <br>culture across IHG teams. | Refreshed principal risks – 2026–2028 | Executive risk sponsor | Trend |
| –Government policy pivots <br>(tariffs, labour, tax).<br>–Escalating or spiking geopolitical tensions.<br>–Market or financial turbulence (including <br>cost of capital, supplier financial stress).<br>–Evolving cyber-attack methods.<br>–Variability and uncertainty in regulatory <br>enforcement.<br>–Litigation and regulatory complaints <br>by pressure and special interest groups.<br>–Social trends and attitudes – including <br>expectations on franchisors.<br>–Embedding of high performance <br>culture across IHG teams. | Guest preferences for, or <br>loyalty to, IHG-branded hotel <br>experiences and channels<br>| –Global Chief Commercial <br>and Marketing Officer<br>|  |
| –Government policy pivots <br>(tariffs, labour, tax).<br>–Escalating or spiking geopolitical tensions.<br>–Market or financial turbulence (including <br>cost of capital, supplier financial stress).<br>–Evolving cyber-attack methods.<br>–Variability and uncertainty in regulatory <br>enforcement.<br>–Litigation and regulatory complaints <br>by pressure and special interest groups.<br>–Social trends and attitudes – including <br>expectations on franchisors.<br>–Embedding of high performance <br>culture across IHG teams. | Owner preferences for, or <br>ability to invest in, our brands<br>| –Global Chief Commercial <br>and Marketing Officer<br>–Regional CEOs<br>|  |
| –Government policy pivots <br>(tariffs, labour, tax).<br>–Escalating or spiking geopolitical tensions.<br>–Market or financial turbulence (including <br>cost of capital, supplier financial stress).<br>–Evolving cyber-attack methods.<br>–Variability and uncertainty in regulatory <br>enforcement.<br>–Litigation and regulatory complaints <br>by pressure and special interest groups.<br>–Social trends and attitudes – including <br>expectations on franchisors.<br>–Embedding of high performance <br>culture across IHG teams. | Talent and capability attraction <br>or retention <br>| –Chief Human Resources Officer |  |
| –Government policy pivots <br>(tariffs, labour, tax).<br>–Escalating or spiking geopolitical tensions.<br>–Market or financial turbulence (including <br>cost of capital, supplier financial stress).<br>–Evolving cyber-attack methods.<br>–Variability and uncertainty in regulatory <br>enforcement.<br>–Litigation and regulatory complaints <br>by pressure and special interest groups.<br>–Social trends and attitudes – including <br>expectations on franchisors.<br>–Embedding of high performance <br>culture across IHG teams. | Data and information usage, <br>storage, security and transfer<br>| –Global Chief Product <br>and Technology Officer<br>–Global Chief Commercial <br>and Marketing Officer<br>–Executive Vice President <br>General Counsel <br>and Company Secretary<br>|  |
|  | Ethical and social expectations | –Executive Vice President <br>General Counsel <br>and Company Secretary<br>–Executive Vice President Global <br>Corporate Affairs<br>–Chief Human Resources Officer<br>–Chief Financial Officer |  |
|  | Ethical and social expectations | –Executive Vice President <br>General Counsel <br>and Company Secretary<br>–Executive Vice President Global <br>Corporate Affairs<br>–Chief Human Resources Officer<br>–Chief Financial Officer |  |
|  | Legal, regulatory and contractual <br>complexity or litigation exposures<br>| –Executive Vice President <br>General Counsel <br>and Company Secretary<br>|  |
|  | Supply chain efficiency and resilience <br>(including corporate and hotel products <br>and services)<br>| –Chief Financial Officer<br>–Chief Product and Technology Officer<br>–Executive Vice President <br>General Counsel <br>and Company Secretary<br>|  |
|  | Operational resilience to incidents <br>or disruption or control breakdown <br>(including geopolitical, safety and security, <br>cybersecurity, fraud and health-related)<br>| –Executive Vice President <br>General Counsel <br>and Company Secretary<br>–Chief Financial Officer<br>–Chief Product and Technology Officer<br>–Regional CEOs<br>|  |
|  | Our ability to deliver technological <br>or digital performance or innovation <br>(at scale, speed, etc.)<br>| –Chief Product and Technology Officer<br>–Global Chief Commercial <br>and Marketing Officer<br>|  |
|  | The impact of climate-related <br>physical and transition risks<br>| –Chief Financial Officer<br>–Executive Vice President Global <br>Corporate Affairs<br>–Executive Vice President <br>General Counsel <br>and Company Secretary<br>|  |

---

![](ihg-20251231_g141.gif)

![PRU_arrow.gif](ihg-20251231_g142.gif)

![PRU_arrow.gif](ihg-20251231_g142.gif)

![PRU_arrow.gif](ihg-20251231_g142.gif)

![PRU_arrow.gif](ihg-20251231_g142.gif)

**We do not treat artificial intelligence** 

**as a standalone principal risk as we** 

**consider AI-related scenarios, including** 

**those affecting distribution, loyalty,** 

**data usage and regulatory compliance,** 

**within many of the principal risks** 

**described in this section.**

![PRU_arrow.gif](ihg-20251231_g142.gif)

**Link to our strategy**

Our four strategic priorities are core

to our success and represented

as follows; we consider all principal

risks to be interconnected with, and

influential to, the successful delivery

of all our strategic pillars.

![PRU_arrow.gif](ihg-20251231_g142.gif)

![PRU_arrow.gif](ihg-20251231_g142.gif)

---

| |
|:---|
| **Relentless focus** <br>**on growth**<br>|
| **Brands guests** <br>**and owners love**<br>|
| **Leading** <br>**commercial engine**<br>|
| **Care for our people,** <br>**communities and planet**<br>|

---

![KPI_icon1.gif](ihg-20251231_g116.gif)

![PRU_arrow.gif](ihg-20251231_g142.gif)

![KPI_icon2.gif](ihg-20251231_g117.gif)

![KPI_icon3.gif](ihg-20251231_g118.gif)

![PRU_arrow.gif](ihg-20251231_g142.gif)

![KPI_icon4.gif](ihg-20251231_g119.gif)

![PRU_arrow.gif](ihg-20251231_g142.gif)

---

| | |
|:---|:---|
| **+** | For more on our strategy, <br>see pages 30 to 39. |
|  | For more on our strategy, <br>see pages 30 to 39. |

---

---

| | | | |
|:---|:---|:---|:---|
| **Key to trend indicators** | **Key to trend indicators** | **Key to trend indicators** |  |
|  | **Increasing**<br>(from previous year)<br>| **Stable**<br>(from previous year)<br>| **Decreasing**<br>(from previous year)<br>|

---

![PRU_arrow.gif](ihg-20251231_g142.gif)

![PRU_arrow.gif](ihg-20251231_g142.gif)

![PRU_arrow.gif](ihg-20251231_g142.gif)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 49 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| |
|:---|
| **Guest preferences for, or loyalty to, IHG-**<br>**branded hotel experiences and channels**<br>|
| **Why this uncertainty is important to the achievement** <br>**of our strategic objectives over the next 1–3 years**<br>Our growth ambitions rely on targeted investment in brand building, <br>loyalty, partnerships and digital platforms, supported by timely <br>insight into evolving guest experiences. Preference and trust in our <br>brands depend on our ability to deliver the fundamentals consistently <br>while meeting rising expectations for personalisation and seamless, <br>cross-channel experiences.<br>These expectations sit alongside enduring priorities, such as safety and <br>sustainability and scrutiny of environmental impact. As we strengthen <br>our masterbrand, expand new brands and enhance our digital and <br>loyalty propositions, we are making strategic choices that require us <br>to move at pace in areas shaped by changing consumer behaviour.<br>Failure to manage this uncertainty effectively could erode competitive <br>positioning, slow delivery against our growth agenda and weaken <br>preference among guests and owners.<br>|

---

**Example factors discussed with management** 

**to monitor trending**

–Future consumer travel preferences and megatrends.

–Loyalty proposition, competitiveness and ability to deliver change

(including at property level through our business model).

–Brand positioning relative to competitors, as measured by social

reviews and guest preference indices.

–Brand awareness and health, including for our masterbrand

and loyalty programmes.

**Key controls that support our response to this uncertainty**

Culture and leadership:

–Brand strategies and standards to define consistent guest experiences.

–Defined accountabilities for individual brands and brand segmentations,

including IHG masterbrand and loyalty.

–Targets for brand and loyalty performance guided by a multi-year roadmap.

–Brand, service and loyalty colleague training and educational resources.

Processes and controls:

–Governance processes for the introduction of brand standards,

new campaigns and marketing launches, loyalty, technology,

and hotel projects.

–Ongoing initiatives to automate benefit delivery and improve consistency.

Monitoring and reporting:

–Measurement of guest experience through social reviews,

guest surveys and hotel quality evaluations.

–Executive reporting on key guest-facing metrics.

**Examples of how the Board obtained assurance** 

**on our risk management and resilience during 2025**

–Reviews of brand category and masterbrand awareness,

loyalty strategies and responsible business strategies.

–Review of competitor activity analysis.

–Updates on readiness for artificial intelligence-enabled guest

experience tools.

–Internal Audit assurance over guest delivery governance processes.

---

| |
|:---|
| **Owner preferences for, or ability** <br>**to invest in, our brands**<br>|
| **Why this uncertainty is important to the achievement** <br>**of our strategic objectives over the next 1–3 years**<br>Our ability to grow depends on owners seeing clear, enduring value <br>in investing in our brands at a time of economic pressure, inflation <br>and elevated expectations for returns. Confidence in the combined <br>strength of our brands, technology and loyalty platforms influences <br>signings, estate quality and the attractiveness of long-term partnerships.<br>As we refine service delivery models and advance growth avenues, <br>such as branded residences, we are making choices that involve <br>shifting perceptions of value and support. These changes require <br>careful signalling and execution to maintain advocacy.<br>Failure to manage these dynamics could reduce owner appetite, <br>affect pipeline momentum and weaken our competitive standing.<br>|

---

**Example factors discussed with management** 

**to monitor trending**

–Owners' financial capacity and investment appetite.

–Confidence in IHG's platforms and technology integrations.

–Estate health indicators (length of ownership, Guest Love scores,

social media rankings).

–Feedback from owner relationships and advocacy forums.

–Market trends in loyalty and technology propositions.

**Key controls that support our response to this uncertainty**

Culture and leadership:

–Clear priorities for brand, loyalty, and technology strategies.

–Governance structures and leadership responsibilities to monitor

owner returns and support owner finance.

–Colleague training on drivers of loyalty and owner returns.

Processes and controls:

–Initiatives to reduce opening and operating costs and improve efficiency.

–Controls for technology rollouts, including pre-launch testing.

–Compliance processes such as Guest Love and quality.

Monitoring and reporting:

–Regular tracking of cost to build, open and operate hotels.

–Key Executive Committee metrics on Growth and Enterprise,

and Loyalty contribution.

–Measurement of ongoing performance and strategy delivery.

**Examples of how the Board obtained assurance** 

**on our risk management and resilience during 2025**

–Market updates from regional CEOs on owner sentiment

and financial capacity.

–Reviews of new brand launches, partnership and owner-facing technology.

–Updates on loyalty programme changes and procurement strategies.

–Update on energy, water and waste initiatives.

–Oversight of branded residence initiatives and service model transitions.

–Internal Audit reviews of capital expenditure and partnership practices.

---

| | |
|:---|:---|
| **+** | For further information on why hotel owners choose to work <br>with IHG see page 29. |
|  | For further information on why hotel owners choose to work <br>with IHG see page 29. |

---

---

| | | |
|:---|:---|:---|
| 50 | IHG | Annual Report and Form 20-F 2025 |

---

Our principal risks and uncertainties continued<br>

---

| |
|:---|
| **Talent and capability attraction,** <br>**retention and development**<br>|
| **Why this uncertainty is important to the achievement** <br>**of our strategic objectives over the next 1–3 years**<br>Delivering our strategic ambitions depends on our ability to attract, <br>develop and retain high-quality talent across our hotels, reservations <br>offices and corporate functions. Labour market conditions and evolving <br>policy developments in key markets such as the US, China and India <br>influence talent availability and the pace at which we can build skills <br>and capabilities.<br>Our ability to sustain attraction, engagement and retention while <br>navigating the introduction of automation and AI and addressing <br>increasing costs will require continued organisational resilience. <br>Continued people-cost pressures heighten the challenge for hotels <br>and owners to attract and retain talent. <br>Where talent-related responsibilities sit with hotel owners, outcomes <br>are dependent on the effectiveness of their practices as well as our own.<br>Failure to respond effectively could impair hotel operations, weaken <br>leadership and capability pipelines, and increase exposure to <br>non-compliance or litigation.<br>|

---

**Example factors discussed with management** 

**to monitor trending**

–The competitiveness and attractiveness of our recruitment, learning

and talent development offer within the hospitality market as well

as alternative industries.

–The health of our internal talent and succession pipeline and

development pathways, including the impact of expectations

of productivity, agility, and performance.

–Key talent engagement and turnover.

–External macro factors, including evolving expectations on inclusion

in the workplace, labour practices, operational practices, remuneration

structures, and potential for political and regulatory volatility.

**Key controls that support our response to this uncertainty**

Culture and leadership:

–Employer brand strategies and policies.

–Defined accountabilities and steering structures for key talent

leadership topics, including leadership boards and employee

resource groups.

–Short- and long-term incentive programmes, incorporating

specific incentives for key teams and colleague travel benefits.

–Training and education resources on people leadership and

management skills.

Processes and controls:

–Specific recruitment, hiring onboarding and offboarding processes.

–Compensation and benefits benchmarking, including executive

remuneration, competitive offering aligned with budgets and

payroll processes.

–Global annual talent and performance cadence, including talent

forums and supporting technology.

Monitoring and reporting:

–Ongoing Executive Committee tracking of performance, culture

and key people metrics.

**Examples of how the Board obtained assurance** 

**on our risk management and resilience during 2025**

–Review of Executive Committee talent and succession pipeline.

–Review of remuneration and incentive strategies and policies.

–Review of Voice of the Employee feedback.

–Review of Journey to Tomorrow people targets.

–Internal Audit reviewed governance of employee engagement

metrics and colleague travel benefits.

---

| | |
|:---|:---|
| **+** | For further information see Our People pages 62 to 67. |

---

---

| |
|:---|
| **Data and information usage,** <br>**storage, security and transfer**<br>|
| **Why this uncertainty is important to the achievement** <br>**of our strategic objectives over the next 1–3 years**<br>Data underpins our ability to drive revenue, enhance loyalty and <br>support decision-making. As we transition to cloud-based and <br>third-party platforms, we face increasing dependency on external <br>infrastructure, new governance demands and more complex <br>data flows across regions.<br>Global divergence in privacy, localisation and consent requirements, <br>together with accelerating AI adoption, creates uncertainty and <br>elevates the importance of data integrity and lifecycle management. <br>We are building new capabilities and expanding partnerships to <br>support our strategy, which introduces additional points of exposure.<br>Failure to manage these dynamics could result in operational <br>disruption, financial or reputational harm and reduced stakeholder <br>trust in how we use and protect high-value information assets.<br>|

---

**Example factors discussed with management** 

**to monitor trending**

–Expectations for personalisation, commercialisation and monetisation

of data in support of commercial performance.

–Data infrastructure complexity, including relationships with third-party

cloud providers, loyalty/customer platforms and hotel systems.

–Cybersecurity threats and trends, including agile threat actors

and fraudsters, and growing use of AI tools to perpetrate attacks.

–Developments in regulatory complexity and enforcement, including

privacy laws and growing expectations for data integrity.

**Key controls that support our response to this uncertainty**

Culture and leadership:

–Information governance operating framework.

–Policies for information security and personal data handling, including

emerging requirements related to AI and cloud-based platforms.

–Colleague awareness campaigns on phishing, data integrity,

and general security education and testing.

–Centralised expertise for information security, privacy and governance.

Processes and controls:

–Privacy and information security risk assessments and horizon scanning,

including third-party dependencies.

–IHG privacy framework, including privacy impact assessment process.

–Third-party risk management and threat management programme,

including due diligence for key vendors.

–Data tagging and classification processes.

Monitoring and reporting:

–Sarbanes-Oxley Act 2002 (SOX) compliance testing of key data controls.

–Management monitoring of information security issues and privacy

programme development.

–Independent assessments of key controls for payment cardholder

data and international money and security transfers.

**Examples of how the Board obtained assurance** 

**on our risk management and resilience during 2025**

–Presentations on guest and hotel technology strategy, cyber risks

and infrastructure evolution.

–Review of data privacy programme.

–Updates on cyber insurance renewal strategy.

–External cybersecurity assessments on emerging AI-related cyber risks.

–Audit Committee discussion of AI deployment plans and associated

control considerations.

–The Internal Audit plan included several independent reviews

of processes for verifying and validating key metrics, and

programme and configuration governance.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 51 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| |
|:---|
| **Ethical and social expectations** |
| **Why this uncertainty is important to the achievement** <br>**of our strategic objectives over the next 1–3 years**<br>Operating in more than 100 countries exposes us to rapidly <br>shifting expectations about ethical and responsible business <br>conduct. Scrutiny of corporate values and social positions is <br>intensifying, with local dynamics varying across markets <br>and brand segments.<br>As a franchisor operating across a varied estate, we must balance <br>influence and accountability while continuing to advance <br>our inclusion and responsible business commitments. Entering <br>new markets, evolving brand propositions and responding to <br>social flashpoints require judgement and adaptability. <br>Misalignment with stakeholder expectations – or a failure to respond <br>to emerging issues – could undermine trust, constrain growth and <br>create reputational exposure.<br>|

---

**Example factors discussed with management** 

**to monitor trending**

–Interest in our ethical and social performance from the media and investors.

–External stakeholder expectations for IHG to manage and drive ethical

and responsible business through our supply chains and across our

wider business, including our franchised properties.

–Industry benchmarking, noting the challenging operating environment

in many markets to build brands while also considering stakeholder

responsibilities.

–Corporate account interest in travel and hospitality ethical and

social performance.

–Colleague perceptions of our performance.

**Key controls that support our response to this uncertainty**

Culture and leadership:

–IHG Code of Conduct supported by individual policies and brand

standards on ethical and social topics.

–Formal IHG position statements including Modern Slavery Statement

and Approach to Tax.

–Defined accountabilities for key responsible business topic steering

and oversight.

–Journey to Tomorrow goals, community strategy, partnerships,

and engagement in cross-industry groups.

–Mandatory and support training on responsible business topics.

Processes and controls:

–Periodic risk assessments (anti-bribery, human rights, new country entry).

–Owner and supplier due diligence processes.

–Responsible labour requirements for hotels.

Monitoring and reporting:

–Executive tracking of human rights performance, responsible

procurement metrics and confidential disclosure channel

reporting trends.

–Tracking of Code of Conduct training levels for key leaders.

–Tracking of supplier code acceptance and monitoring of adverse

supplier practices.

**Examples of how the Board obtained assurance** 

**on our risk management and resilience during 2025**

–Review of Code of Conduct.

–Updates on strategies for ethics and compliance, community

partnerships, human rights and responsible procurement supported

by external perspectives.

–The Internal Audit team maintained oversight of the confidential

reporting hotline and supported independent investigations

where required.

---

| | |
|:---|:---|
| **+** | For further information see our Being a responsible business <br>pages 54 to 84. |
|  | For further information see our Being a responsible business <br>pages 54 to 84. |

---

---

| |
|:---|
| **Legal, regulatory and contractual** <br>**complexity or litigation exposures**<br>|
| **Why this uncertainty is important to the achievement** <br>**of our strategic objectives over the next 1–3 years**<br>Our growth ambitions and digital transformation expose us <br>to a wide and evolving set of legal, regulatory and contractual <br>requirements across multiple jurisdictions. Rapid legislative <br>change, differing enforcement approaches, sanctions regimes <br>and the rise of litigation, including class actions and joint-employer <br>theories, require ongoing attention.<br>Our business model depends on complex owner and supplier <br>relationships, including partnerships with major technology providers. <br>These arrangements bring significant opportunity but also increase <br>the importance of contractual clarity, governance discipline <br>and compliance. <br>Failure to navigate these uncertainties could result in regulatory <br>breaches, monetary or non-monetary penalties, adverse litigation <br>outcomes and reputational harm.<br>|

---

**Example factors discussed with management** 

**to monitor trending**

–The scope and maturity of regulation, encompassing ongoing

legislative developments that impact our franchise relationships

with hotel owners, our supplier interactions, our obligations to

consumers and colleagues, and emerging requirements related

to generative AI.

–The frequency and severity of regulatory enforcement, which

can vary considerably between territories, and which is subject

to political influence. This includes ongoing use of sanctions

and countermeasures as foreign policy tools.

–The rapid evolution of litigation and class action lawsuits, including

the impact of external funding on both costs and claim volumes.

**Key controls that support our response to this uncertainty**

Culture and leadership:

–IHG Code of Conduct and Delegation of Authorities supported

by individual policies on regulatory matters (anti-bribery, sanctions,

anti-trust, etc.) and an overarching policy governance framework.

–Defined legal accountabilities and organisational structures for

information governance, safety, privacy and regulatory compliance.

–Education and training resources for first-line colleagues, including

hotel general managers, on key legal, regulatory, and contractual

requirements.

Processes and controls:

–Risk assessments on specific regulatory matters.

–Specific control processes, including third-party due diligence,

franchise disclosure, new country entry, sanctions monitoring,

HR procedures and entity management.

–Compliance programmes for safety, anti-bribery, anti-trust and privacy.

Monitoring and reporting:

–Executive-level reporting on operational safety and security, privacy,

ethics and compliance, human rights trends and litigation matters.

–Corporate governance and regulatory developments updates.

**Examples of how the Board obtained assurance** 

**on our risk management and resilience during 2025**

–Review of corporate governance, regulatory and corporate affairs

developments (including external advice).

–Specific updates on regulatory topics including privacy, tax,

fraud and litigation.

–The Internal Audit team assessed governance for compliance

with incoming regulatory changes.

---

| | | |
|:---|:---|:---|
| 52 | IHG | Annual Report and Form 20-F 2025 |

---

Our principal risks and uncertainties continued<br>

---

| |
|:---|
| **Supply chain efficiency and resilience** <br>**(including corporate and hotel products** <br>**and services)**<br>|
| **Why this uncertainty is important to the achievement** <br>**of our strategic objectives over the next 1–3 years**<br>Geopolitical fragmentation, regionalisation and shifts in trade policy <br>increase uncertainty in sourcing, input costs and supply continuity. <br>Supporting owners navigating cost pressures and disruption is central <br>to our competitiveness and the resilience of our global estate.<br>As we broaden our supplier base and integrate more <br>technology-enabled and AI-driven providers, including new <br>entrants to the market, we are expanding the range of capabilities <br>we depend on. This requires clear accountability for performance, <br>security and commercial outcomes. <br>Failure to adapt effectively could affect hotel openings and renovations, <br>commercial channel performance, margins and overall reputation.<br>|

---

**Example factors discussed with management** 

**to monitor trending**

–The complexity of our corporate supply chain (including partners

we work with, marketing investments and outsourced services).

–External geopolitical, economic and environmental instability,

including trade, labour and other government policies.

–Key supplier financial health and resilience, including exposures

to conflict-affected geographies and the potential for disruption

from technology and AI.

–Legislative, regulatory, and code changes, including demands

for transparency and due diligence across global supply chains.

–The complexity and competitiveness of the hotel supply chain

(including partners we work with, market investments and outsourced

services) with increasing regionalisation and deglobalisation trends.

**Key controls that support our response to this uncertainty**

Culture and leadership:

–Key policies and delegated authorities, supported by training resources,

to structure how we engage with suppliers (for example, capital

expenditure controls, policies for procurement, information security,

supplier conduct).

–Dedicated cross-business forum to review supply chain risk

and control matters.

Processes and controls:

–Supplier financial risk ratings, due diligence assessments and

certifications, and onboarding and offboarding processes.

–Regular validation of supplier security controls.

Monitoring and reporting:

–Tracking of service level agreements, regular meetings

and executive status updates for strategic suppliers.

**Examples of how the Board obtained assurance** 

**on our risk management and resilience during 2025**

–Audit Committee oversight of emerging supply chain risks

and governance.

–Procurement considerations within market updates from regional CEOs.

–Review of specific major supplier contracts.

–The Internal Audit plan included independent assurance over

procurement processes within a key market.

---

| | |
|:---|:---|
| **+** | For our approach to Responsible Procurement see pages 57 to 59. |

---

---

| |
|:---|
| **Operational resilience to incidents** <br>**or disruption or control breakdown** <br>**(including geopolitical, safety and security,** <br>**cybersecurity, fraud and health-related)**<br>|
| **Why this uncertainty is important to the achievement** <br>**of our strategic objectives over the next 1–3 years**<br>Operating at global scale exposes us to a wide range of disruptive <br>uncertainties, including geopolitical volatility, cyber threats <br>(amplified by AI), fraud, natural disasters and health-related incidents. <br>Foundational controls for safety, security and resilience must <br>remain robust as we expand into new markets, modernise systems <br>and adopt AI-enabled technologies.<br>These changes increase the complexity of our operating <br>environment and the risk of control breakdown, particularly where <br>processes become more automated or where dependencies <br>on third parties rise. <br>Failure to anticipate or respond effectively could disrupt operations, <br>lead to financial loss or claims and reduce stakeholder confidence.<br>|

---

**Example factors discussed with management** 

**to monitor trending**

–Internal and external threat levels linked to geopolitics, cyber-crime,

fraud, insider threats, natural catastrophes and extreme weather events.

–Exposure to system and infrastructure failures, including age of key

infrastructure and evolving supplier and data ecosystems.

–Potential for human-related control breakdowns caused by organisational

change, automation and fatigue.

–Stakeholder expectations of how IHG responds to disruption, including

new notification requirements in key territories.

–AI-related risks, including misinformation, vendor risk and litigation exposure.

**Key controls that support our response to this uncertainty**

Culture and leadership:

–Centralised expertise in resilience, safety and security, threat management

and information security, supported by third-party specialists.

–Crisis management framework, supported by training for duty directors

and leadership teams on escalation protocols and crisis communications.

–Cross-business fraud oversight and updated Fraud Prevention Policy.

–Targeted awareness campaigns for potential threats (for example, phishing).

Processes and controls:

–Ongoing management risk assessments in executive leadership teams,

supported by geopolitical intelligence.

–Contractual provisions for resilience, insurance and information security.

–Specific preventative controls, including privileged access reviews

and localised fraud risk strategies.

–Business continuity and disaster recovery planning for key processes

and services and supplier relationships.

–Brand Safety Standards, including digital self-assessments for

managed hotels.

Monitoring and reporting:

–Periodic external benchmarking of programme maturity (safety, cyber,

threat management).

–Compliance reporting to senior management.

–Ongoing control monitoring, including SOX testing (financial, IT controls).

**Examples of how the Board obtained assurance** 

**on our risk management and resilience during 2025** 

–Reviews of operational safety and security, serious incidents and threats,

financial control and governance, fraud risk management and cybersecurity.

–Specific updates on geopolitical risks, including within regional CEO

updates in relation to priority growth markets.

–PwC assurance on SOC1 control reports.

–Internal Audit assessed the Identity and Access Management programme.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 53 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| |
|:---|
| **Our ability to deliver technological** <br>**or digital performance or innovation** <br>**(at scale, speed, etc.)**<br>|
| **Why this uncertainty is important to the achievement** <br>**of our strategic objectives over the next 1–3 years**<br>Technology and digital innovation are central to guest experience, <br>operational efficiency and our competitive position. The pace of <br>development in AI, generative AI and cloud platforms, combined with <br>expanding ecosystem complexity, creates uncertainty in execution, <br>governance and resilience.<br>Our multi-year roadmap requires us to modernise core platforms, <br>retire technical debt and deliver at pace – often in partnership <br>with third parties. These choices introduce dependencies that <br>must be managed carefully. <br>Failure to do so could slow the realisation of benefits, impair <br>competitiveness and heighten operational or reputational risks.<br>|

---

**Example factors discussed with management** 

**to monitor trending**

–The current state of our foundational technology infrastructure

and applications, and readiness for innovation.

–Status of multi-year investment programmes, particularly where

we are reliant on third parties.

–Pace of change in AI and digital behaviours, and implications

for guest expectations, owners, suppliers and colleagues.

–Talent and capabilities to deliver change, including partnerships

with suppliers, academic institutions and thought leaders.

**Key controls that support our response to this uncertainty**

Culture and leadership:

–Product and Technology leadership team, including defined

senior leadership accountability for AI and technology architecture

and accountabilities for product ownership across website,

app and loyalty platforms, supported by development teams.

–External networking and thought leadership, including

engagement with educational institutions and consultants.

–AI Steering Committee.

Processes and controls:

–Formalised change management processes, including phased

rollout roadmaps.

–Centralised agile delivery and portfolio management tools.

–Defined governance processes for generative AI initiatives.

–Colleague training on generative AI tools supported by guidance

on responsible use.

Monitoring and reporting:

–Executive-level monitoring of programme execution and

technology debt.

–Portfolio confidence metrics and reporting on cross-functional priorities.

–Specific assessments, including analysis of field services and

organisational readiness.

**Examples of how the Board obtained assurance** 

**on our risk management and resilience during 2025**

–External benchmarking and strategic planning discussion

on AI-related disruption and risk appetite.

–Audit Committee review of spend governance and control

of key products.

–Internal Audit reviewed governance for generative artificial

intelligence adoption.

---

| |
|:---|
| **The impact of climate-related** <br>**physical and transition risks**<br>|
| **Why this uncertainty is important to the achievement** <br>**of our strategic objectives over the next 1–3 years**<br>Climate-related physical and transition risks create uncertainty <br>for IHG and the owners who invest behind our brands. While acute <br>physical impacts may materialise beyond the near term, investor <br>and regulatory expectations require credible transition planning <br>and visible progress today.<br>Exposure varies significantly by geography, asset type and brand <br>positioning, influencing cost, investment needs, reporting obligations <br>and corporate client expectations. Operating across a range of <br>markets means we must navigate differing levels of readiness <br>and regulatory maturity. <br>Failure to prepare effectively could result in reputational harm, <br>reduced stakeholder confidence and impacts on performance <br>and growth in key markets.<br>|

---

**Example factors discussed with management** 

**to monitor trending**

–Evolving regulatory and fiscal interventions, including reporting

requirements on corporates.

–Expectations of investors and ratings agencies.

–Cost implications for owners, for example, to build, convert and

renovate hotel assets.

–Corporate client preferences and whether climate considerations

influence travel and spending decisions.

–Exposure to acute and chronic physical risks for our open

and pipeline hotels over the short, medium and longer term.

**Key controls that support our response to this uncertainty**

Culture and leadership:

–Definition of planet-related goals and programmes within overall strategy.

–Industry, investor and stakeholder engagement on key topics,

including industry standards and financial incentives.

–Steering Committee accountabilities for Journey to Tomorrow

and decarbonisation.

Processes and controls:

–Physical and transition risk assessments, supported periodically

by external resources.

–Energy reduction processes and resources (including brand

standards and e-learning) to help mitigate cost risks for owners.

Monitoring and reporting:

–Hotel energy use reporting via IHG Green Engage tool.

–Executive tracking of TCFD metrics and governance oversight

of climate-related reporting and resource allocation.

**Examples of how the Board obtained assurance** 

**on our risk management and resilience during 2025** 

–Review of TCFD disclosures and the embedding of climate

considerations in strategy, governance, risk management and

performance management.

–Review of climate data, including Internal Audit assurance over energy

data estimation methodologies and governance of Environmental,

Social and Governance metrics.

---

| | |
|:---|:---|
| **+** | For further information see Our planet pages 70 to 84. |

---

---

| | | |
|:---|:---|:---|
| 54 | IHG | Annual Report and Form 20-F 2025 |

---

Being a responsible business<br>

![JourneyToTomorrow_White_COLOUR_CMYK.gif](ihg-20251231_g143.gif)

**Growing**

 **responsibly**

Our purpose of True Hospitality for Good

brings our brands to life, shapes our

culture and reflects our commitment

to making a positive difference to our

people, guests and communities.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Culture** |  | **Journey to Tomorrow** | **Journey to Tomorrow** |  | **Additional information** |  |
| Values | 56 | Making stays more sustainable | Making stays more sustainable | 60 | Transition plan | 75 |
| Structure and governance | 56 | Our people | Our people | 62 | Managing climate risks <br>and opportunities | 77 |
| Code of conduct | 56 | Our communities | Our communities | 68 | Managing climate risks <br>and opportunities | 77 |
| Responsible procurement | 57 | Our planet | Carbon and energy | 70 | Streamlined Energy and <br>Carbon Reporting (SECR) | 82 |
|  |  | Our planet | Waste | 72 | Streamlined Energy and <br>Carbon Reporting (SECR) | 82 |
|  |  | Our planet | Water | 73 |  |  |

---

![RBR_intro_image1.jpg](ihg-20251231_g144.jpg)

Colleagues in the East Asia Pacific

sub-region supporting our annual

Giving for Good Month.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 55 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Our approach to** 

**responsible business**

Creating a culture of responsibility that permeates every level of our organisation is central

to how we operate. Alongside our Journey to Tomorrow plan, this commitment is reflected

more widely in our strategy, policies, initiatives and engagement with colleagues, customers,

industry and communities.

Our approach to responsible business

guides our operations and underpins

our performance. We recognise

that stakeholders value how we grow

and contribute to positive change.

To align our work with the most

critical responsible business issues,

we conduct materiality assessments

to understand our impact and set

our priorities. These assessments help

us stay focused on the issues most

relevant to our stakeholders, industry and

long-term success. For more details

on how we engage with stakeholders,

please read pages 44 to 45.

'Care for our people, communities

and planet' is one of IHG's four key

strategic pillars and our Journey to

Tomorrow responsible business plan

is a critical element of how we deliver

on this. The commitments that sit

within this plan build on important work

achieved over the years, and at the core

of our responsible business commitment

is strong leadership. The Board oversees

our ethical standards of governance,

reinforcing our culture, values and

responsible business conduct.

The Responsible Business Committee

of the Board oversees the Journey

to Tomorrow plan, ensuring our

responsible business commitments

are embedded within our strategy

and regularly reviewed for progress

and accountability.

**How our Journey to Tomorrow plan supports our strategic priorities:**<br>

![](ihg-20251231_g145.gif)

![](ihg-20251231_g145.gif)

![](ihg-20251231_g145.gif)

![KPI_icon1_no_bgrd_DeepBlue_40%.gif](ihg-20251231_g146.gif)

![KPI_icon2_no_bgrd_DeepBlue_40%.gif](ihg-20251231_g147.gif)

![KPI_icon3_no_bgrd_DeepBlue_40%.gif](ihg-20251231_g148.gif)

![KPI_icon4_no_bgrd_Orange.gif](ihg-20251231_g149.gif)

**Relentless focus** 

**on growth**

**Brands guests and** 

**owners love**

**Leading commercial** 

**engine**

**Care for our people,** 

**communities and planet**

![RBR_Intro_bgrd_grad.gif](ihg-20251231_g150.gif)

![J2T_People_icon.gif](ihg-20251231_g151.gif)

![J2T_Communities_icon.gif](ihg-20251231_g152.gif)

![J2T_Carbon_Energy_icon.gif](ihg-20251231_g153.gif)

![J2T_Waste_icon.gif](ihg-20251231_g154.gif)

![J2T_Water_icon.gif](ihg-20251231_g155.gif)

**Our people**

Champion an

inclusive culture

where everyone

can thrive

**Communities**

Improve the lives of

30 million people in

our communities

around the world

**Carbon and energy**

Reduce our

energy use and

carbon emissions

in line with

climate science

**Waste**

Pioneer the

transformation to

a minimal-waste

hospitality industry

**Water**

Conserve water

and help secure

water access in

those areas

at greatest risk

---

| | |
|:---|:---|
| **+** | More on <br>pages 62 to 67. |
|  | More on <br>pages 62 to 67. |

---

---

| | |
|:---|:---|
| **+** | More on <br>pages 68 to 69. |
|  | More on <br>pages 68 to 69. |

---

---

| | |
|:---|:---|
| **+** | More on <br>pages 70 to 71. |
|  | More on <br>pages 70 to 71. |

---

---

| | |
|:---|:---|
| **+** | More on <br>page 72. |
|  | More on <br>page 72. |

---

---

| | |
|:---|:---|
| **+** | More on <br>page 73. |
|  | More on <br>page 73. |

---

---

| | | |
|:---|:---|:---|
| 56 | IHG | Annual Report and Form 20-F 2025 |

---

Being a responsible business continued<br>

**Our culture** 

---

| |
|:---|
| Guiding our approach and purpose |
| Our culture, shaped by our values and growth behaviours, informs our decisions and <br>how we execute our strategy. Our culture provides the foundation for how we behave <br>responsibly and how we deliver our purpose of True Hospitality for Good. <br>|

---

![OurCultureGraphic_bgrd_grad_v2.gif](ihg-20251231_g156.gif)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Our values | Our values | Our values | Our values | Our values |
| **Do the** <br>**right thing** | **Show** <br>**we care**  | **Aim** <br>**higher**  | **Celebrate** <br>**difference**  | **Work better** <br>**together** |
| Our growth behaviours | Our growth behaviours | Our growth behaviours | Our growth behaviours | Our growth behaviours |

---

![ShowWeCare_White_icon.gif](ihg-20251231_g157.gif)

![DoTheRightThing_White_icon.gif](ihg-20251231_g158.gif)

**Ambitious**

**Dedicated**

**Our structure** 

**and governance**

The IHG Board has ultimate

responsibility for ensuring our culture

and ways of working align with our

purpose and strategy. Throughout

the year, the Board and its Committees

review updates and reports on strategic

progress through a governance and

culture lens.

The Board actively challenges and

supports senior leaders, particularly

when policies or initiatives need

adjustment to maintain alignment

between strategy and culture.

Day-to-day responsibility for shaping

and embedding culture is delegated

to the CEO, who, together with the

Executive Committee (EC), sets the

tone from the top by fostering an open,

honest and empowering workplace.

The EC is responsible for executing

the Group's strategy and keeping the

Board informed on operations and

workplace culture.

IHG's hotel development and

operations are organised regionally –

Americas, EMEAA, and Greater China –

supported by global functions

including Commercial and Marketing,

Product and Technology, Finance,

Human Resources, Corporate Affairs,

and Business Reputation and

Responsibility.

![AimHigher_White_icon.gif](ihg-20251231_g159.gif)

![CelebrateDifference_White_icon.gif](ihg-20251231_g160.gif)

**Courageous**

Regional and global leadership teams

execute strategic priorities in line

with the Group's culture and values.

Decisions on hotel developments

and capital expenditure are reviewed

by the relevant deal approval and

expenditure committees in line with

the Group's Global Delegation of

Authority Policy, which sets out

controls for financial commitments

and approvals. Proposals above certain

thresholds require approval from the

Group's Capital Committee, which

reports to the EC.

The Group operates through over

340 subsidiaries worldwide, providing

the legal framework to enter into

contracts and commitments.

---

| | |
|:---|:---|
| **+** | Information on the Board's monitoring <br>and assessment of our culture is <br>included on page 125. |
|  | Information on the Board's monitoring <br>and assessment of our culture is <br>included on page 125. |
|  | Information on the Board's monitoring <br>and assessment of our culture is <br>included on page 125. |

---

**Code of Conduct** 

**and related policies**

IHG's Code of Conduct (Code) sets

the standard for how we do business

and underpins our commitment to

providing True Hospitality for Good.

The Code seeks to enable colleagues to

make the right decisions, in compliance

with the law and IHG's expectations

about conduct.

![WorkBetterTogether_White_icon.gif](ihg-20251231_g161.gif)

**Caring**

The Board, EC and all colleagues

working in IHG corporate offices,

reservation centres, and owned &

leased and managed hotels must

comply with the Code. We expect

those we do business with, including

our franchisees, to uphold similar

principles and standards.

The Code is reviewed and approved

by the Board on an annual basis,

and is supported by annual e-learning

requirements. We monitor and assess

how our values are being embedded

into our culture through a variety

of methods, such as through direct

engagement, employee engagement

surveys, tracking of e-learning

completion and our confidential

reporting hotline.

The Code contains an overview of

our values and Group-level policies,

including those relating to human

rights, respect in the workplace, equal

opportunities, accurate reporting,

information security, anti-bribery

and corruption, and the environment.

It also provides guidance on how

colleagues can raise concerns or

seek further help.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 57 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Additional detail regarding other areas

of the Code, such as our commitment

to creating a culture of inclusion, is on

pages 62 and 63, and driving respect

for human rights is on page 66. Initiatives

to respond to legal and regulatory

uncertainties and ethical and social

expectations are on page 51.

---

| | |
|:---|:---|
| **+** | IHG's Code of Conduct is available in <br>14 languages on the Company's intranet <br>and at ihgplc.com/en/investors/<br>corporategovernance/code-of-conduct |
|  | IHG's Code of Conduct is available in <br>14 languages on the Company's intranet <br>and at ihgplc.com/en/investors/<br>corporategovernance/code-of-conduct |
|  | IHG's Code of Conduct is available in <br>14 languages on the Company's intranet <br>and at ihgplc.com/en/investors/<br>corporategovernance/code-of-conduct |
|  | IHG's Code of Conduct is available in <br>14 languages on the Company's intranet <br>and at ihgplc.com/en/investors/<br>corporategovernance/code-of-conduct |

---

**Speaking up**

A core component of our people culture

is respect in the workplace. IHG has zero

tolerance for any form of discrimination,

harassment or bullying, in line with our

Respect in the Workplace Policy. While

we uphold our responsibility to behave

ethically and protect IHG's reputation,

it is possible that in limited instances, a

colleague may act in a way that conflicts

with the principles set out in the Code.

Guidance is given to report concerns

directly to line managers, supervisors or

local HR representatives. A confidential

reporting hotline and online reporting

facility are available and globally advertised.

Concerns can also be reported to

the Head of Risk and Assurance or the

General Counsel and Company Secretary.

The Board routinely reviews summaries

of reported concerns and ensures that

processes are in place for investigations

and follow-up.

**Safety and security**

IHG is dedicated to ensuring a safe,

secure and healthy environment

for all colleagues, guests and visitors.

All operations must adhere to relevant

health, safety and security laws. In addition

to legal compliance, IHG proactively

seeks opportunities to enhance the

management of safety and security risks,

implementing mandatory Brand Safety

Standards across all hotels to ensure

consistency. Initiatives addressing safety

and security risks can be found on

**Bribery and corruption**

IHG is committed to operating with

integrity. Colleagues are not permitted

to engage in bribery or any form of

financial crime, including fraud, money

laundering, violations or circumvention

of economic and trade sanctions and

tax evasion or the facilitation of tax

evasion. This standard also applies to

agents, consultants and other service

providers who do work on our behalf.

Our Anti-Bribery Policy sets out

our zero-tolerance approach and is

applicable to all Directors, EC members,

employees and colleagues in owned

& leased and managed hotels. It is

accompanied by anti-bribery content

in our mandatory Code of Conduct

e-learning module.

Our Gifts and Entertainment Policy

and guidance further support our

approach in this area.

Initiatives to respond to legal,

regulatory, ethical and compliance

risks are more broadly discussed

on page 51.

---

| |
|:---|
| IHG is a member of Transparency <br>International UK's Business <br>Integrity Forum.<br>|
| ![Transparencyinternationaluk_logo.jpg](ihg-20251231_g162.jpg) |

---

**Handling information responsibly**

We are committed to ensuring that

guests, loyalty programme members,

colleagues, shareholders, owners and

other stakeholders trust the way we

manage data. As part of our privacy

and information security programmes,

we have standards, policies and

procedures in place to manage how

personal data can be used and should

be protected. Our e-learning training

for employees on handling information

responsibly is a mandatory annual

requirement and covers topics such

as password and email security, using

personal data in accordance with our

policies and privacy commitments,

how to work with vendors and

transferring data securely. This year

we held tabletop exercises to practise

our ability to detect and respond to

potential security events, as well as

phishing exercises.

We continue to develop our privacy

and security programmes to address

evolving requirements and take

account of developing best practice.

The Board regards cybersecurity

as a critical business discipline, and

it regularly receives updates on the

Group's cybersecurity risk management

and control arrangements.

---

| | |
|:---|:---|
| **+** | See page 50 for further detail on <br>uncertainties relating to data and <br>information usage, storage, security <br>and transfer. |
|  | See page 50 for further detail on <br>uncertainties relating to data and <br>information usage, storage, security <br>and transfer. |
|  | See page 50 for further detail on <br>uncertainties relating to data and <br>information usage, storage, security <br>and transfer. |
|  | See page 50 for further detail on <br>uncertainties relating to data and <br>information usage, storage, security <br>and transfer. |

---

**Our behaviours**

By demonstrating our growth

behaviours – ambitious, dedicated,

courageous, caring – our leaders and

employees create an environment

that encourages high performance,

while operating responsibly in a way

that helps us achieve our strategic

priorities and purpose. Our policies,

communications, learning programmes

and performance management

processes reflect these behaviours,

ensuring they act as a compass for

how we do things and help us create

an inclusive culture for all.

**Responsible procurement**

We grow our business with innovation

and sustainability at the core, guided

by high standards of conduct. These

principles shape how we select and

engage with suppliers. We strive to

work with suppliers who uphold our

ethical standards and share the ethos

of our Journey to Tomorrow plan.

Our supply chains span hotel and

corporate spend. Purchasing of hotel

goods and services predominantly

occurs locally, as most hotels are

independently owned and manage

their own supply chains. In key

markets, IHG Global Procurement

offers procurement programmes for

certain goods and services related

to building, opening, renovating,

and operating hotels, enabling hotels

and owners to leverage IHG's scale.

Hotel procurement programmes are

available in the US, Canada, Mexico,

the Caribbean, Greater China, and

EMEAA, covering the UK, Germany,

France, the United Arab Emirates,

Saudi Arabia, India, Australia, New

Zealand, Japan and Singapore. Our

corporate supply chain encompasses

the procurement of technology,

office facilities and professional

services such as marketing

and consultancy.

To manage and monitor this, IHG has

implemented a Global Procurement

Policy, Centralised Purchase Order Desk,

and a Source-to-Pay system to oversee

third-party corporate expenditure,

while continuing to roll out purchasing

systems to support owned & leased,

managed and franchised hotels in

key markets.

---

| | | |
|:---|:---|:---|
| 58 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Being a responsible business continued |
| Our culture continued |

---

1<br>

![RBR_culture_image1.jpg](ihg-20251231_g163.jpg)

Strategic supplier relationships,

particularly with global technology and

outsourcing providers, are regularly

reviewed to ensure alignment with

business objectives, to harness

innovation, manage risk and drive

value realisation.

Global Procurement, supported by

our digital solutions and policies (like the

Supplier Code of Conduct (SCC) and the

Procurement Policy), plays a pivotal role

in setting our expectations for suppliers

and business stakeholders to conduct

business ethically. This involves ensuring

that responsible business criteria are

incorporated into our supplier selection

process. Our Responsible Procurement

team offers training and guidance

across corporate, managed and

franchised teams, including procurement

colleagues in our corporate offices.

IHG continues to comply with the UK

statutory reporting duties on payment

practices and performance.

**Policy and guidance**

We acknowledge the environmental

and social impacts associated with our

supply chain and expect our suppliers

to uphold principles of integrity and

respect consistent with our own.

Accordingly, all new corporate

suppliers are required to either accept

the Supplier Code of Conduct (SCC)

during onboarding or demonstrate

equivalent policies. In 2025, 100%

of new corporate suppliers signed

the SCC.

---

| |
|:---|
| 1 |
| Partnering With Suppliers in the Americas <br>and Greater China for Energy Efficient Kitchen <br>Solutions – Demand Based Kitchen Ventilation <br>(DBKV) system procurement solutions have <br>been supported in the Americas region and <br>Greater China, with six new hotels across <br>Greater China adopting the technology. <br>This energy conservation measure reduces <br>energy use in kitchens, including heating <br>and cooling.  |
| Partnering With Suppliers in the Americas <br>and Greater China for Energy Efficient Kitchen <br>Solutions – Demand Based Kitchen Ventilation <br>(DBKV) system procurement solutions have <br>been supported in the Americas region and <br>Greater China, with six new hotels across <br>Greater China adopting the technology. <br>This energy conservation measure reduces <br>energy use in kitchens, including heating <br>and cooling.  |
| Partnering With Suppliers in the Americas <br>and Greater China for Energy Efficient Kitchen <br>Solutions – Demand Based Kitchen Ventilation <br>(DBKV) system procurement solutions have <br>been supported in the Americas region and <br>Greater China, with six new hotels across <br>Greater China adopting the technology. <br>This energy conservation measure reduces <br>energy use in kitchens, including heating <br>and cooling.  |

---

This requirement is reflected in

the contractual terms for central

procurement programmes accessible

to our hotels. While we endeavour to

resolve identified issues collaboratively,

significant breaches of the SCC may

result in contract termination.

We regularly review our key governance

documents, and this year we have

updated our SCC. Following a

comprehensive benchmarking and gap

analysis, the SCC now reflects changes

in the external environment, including

increased geopolitical uncertainties,

evolving regulatory requirements,

and shifting customer expectations.

Key enhancements include clarified

expectations for suppliers on human

rights due diligence and animal welfare.

The updated SCC is now accessible

on IHG's website in 14 languages.

To advance our sustainable sourcing

efforts and ensure supplier compliance

with our standards, contract templates

incorporate ethical, social and

environmental reporting requirements.

Furthermore, we have refined our

Responsible Sourcing Guidance, which

is now available to hotels and owners

in 12 languages. This resource provides

an overview of third-party certifications

and commodity-specific information,

supporting informed supplier selection

and promoting responsible practices

within selected supply chains.

To promote responsible procurement

across corporate, managed, and

franchised teams, we provide an

education programme that has been

completed more than 27,100 times

since its inception in 2019.

As part of this ongoing initiative, the

Human Rights Team facilitated a training

session focused on identifying and

mitigating human rights risks within our

supply chains. We also expanded our

Global Procurement team's expertise

through sessions on Circular Solutions

and Renewable Energy, while continuing

to provide annual core modules such

as legal and contract training and

category management for new joiners.

In 2023, IHG co-founded the Hospitality

Alliance for Responsible Procurement

(HARP), which is facilitated by EcoVadis.

This year, EcoVadis hosted carbon

management webinars for suppliers

invited by HARP member companies.

**Due diligence and risk management**

The new Enterprise Supplier

Management (ESM) team centralises

and standardises third-party risk and

relationship management for IHG's

corporate and hotel procurement

programme supply chains. Our goal

is to build a strong risk management

framework and improve supply chain

resilience. We identify key risks, develop

strategies and tools to address them,

and review sourcing, contract and

supplier management procedures to

implement the required improvements.

To maintain strong alignment with

our Executive Committee's risk agenda

and ensure programme relevance

to business objectives, our Supply

Chain Risk Council fosters robust

cross-functional collaboration with senior

leaders across the organisation. This

systematic approach helps facilitate

effective identification and mitigation

of enterprise-level supply chain risks.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 59 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Additionally, by collaborating with leading

industry experts, we aim to anticipate

emerging risks that could affect our global

supply chain, thereby helping to ensure

ongoing resilience and adaptability

within an evolving market landscape.

**Financial risk**

This year, we launched a supplier

financial health outreach programme,

building on our work to improve due

diligence processes. This initiative

provides deeper insight into the financial

stability of our suppliers by conducting

thorough reviews of their financial

statements. Through evaluation of

default risks and core financial metrics,

we adopt a proactive approach to

strengthening supply chain resilience,

directly engaging with critical suppliers

whose financial health may warrant

closer attention. In 2025, these efforts

encompassed focused engagement

with suppliers in the Americas region,

as well as selected corporate suppliers.

**Social and environmental risk**

We assess social and environmental

risks in our supply chain in several ways,

including through our own scorecard,

EcoVadis assessments and audits.

All new corporate and hotel procurement

programme suppliers are required to

complete a pre-contract questionnaire

detailing where goods are sourced

and/or manufactured, and the type

of service they provide.

Those suppliers operating in higher-risk

countries or industries and who have

not already received an EcoVadis rating

are required to complete additional

questions related to the policies and

processes they have in place regarding

labour practices (covering key human

rights risks, including passport retention,

payment of recruitment fees and

costs, worker accommodation and

grievance mechanisms).

As part of our ongoing post-contract

due diligence approach, strategic

suppliers and certain higher-risk

suppliers are asked to complete an

EcoVadis assessment, which measures

their environmental, human rights,

ethics and sustainable procurement

risk management capabilities.

Over the past year, we have increased

our coverage of suppliers across hotel

procurement programmes. In 2025,

93 suppliers were assessed and rated

by EcoVadis. This assessment helps us

identify risks and work collaboratively

with suppliers to improve performance.

Those who score below our expected

standards receive corrective actions

and support resources.

Continuing from 2024, we are

collaborating with Sedex, a prominent

platform for companies to manage and

share site-level audit data, to progress

the development of our approach to

supplier audits in the Americas and

EMEAA, starting with collecting critical

site-level information from our highest-

risk Tier 1 centralised hotel procurement

programme suppliers. So far, 60

suppliers have been invited to complete

a Sedex self-assessment questionnaire.

We are now working to drive completion

by the remaining suppliers and will be

analysing results to determine which

suppliers will be invited to participate in

a Sedex Members Ethical Trade Audit.

We will increase the scope over time.

This continues to build on the existing

on-site supplier audit programme

in Greater China.

**Supplier engagement**

We have teamed up with a leading

procurement consultancy to strengthen

supplier relationships through two

main initiatives.

First, we surveyed over 200 suppliers

and conducted 16 follow-up interviews

to gather honest feedback and

benchmark IHG against competitors,

guiding our action plan to become

the trusted premier hospitality

supply management partner.

Second, we are holding segmentation

workshops across hotel and corporate

procurement categories in all regions,

helping category managers identify

strategic suppliers and improve

collaboration. These efforts allow

us to allocate resources efficiently

and build resilient partnerships.

By actively listening to suppliers and

thoughtfully segmenting our supply

base, we are boosting transparency,

accountability and collaboration –

essential for sustainable procurement

success.

**Food and beverage**

With millions of meals served weekly in

hotels worldwide, we support our hotels

in making considered choices about the

origins of their food and beverages to

help minimise environmental impact.

Our guidance and brand standards

encourage hotels to offer broad dining

options for both business and leisure

guests, with a focus on health, wellbeing,

and ethical sourcing. For example, certain

brand standards require that hotels

use locally sourced produce, which can

also help to reduce carbon emissions.

We are committed to promoting

improved animal welfare standards

in our supply chain. Our approach

includes focusing on priority categories

where we can meaningfully influence

welfare outcomes across our brands

and regions. We will continue

collaborating with suppliers and

hotels to responsibly source

animal-derived products, adapting

to local supply, cost, and availability.

2<br>

![RBR_culture_image2.jpg](ihg-20251231_g164.jpg)

---

| |
|:---|
| 2 |
| Supplier Innovation Across the UK – Driving <br>improved sustainable practices in the UK, our <br>procurement team has been working closely <br>with suppliers to replace plastic-wrapped <br>linen deliveries with reusable crates and <br>fabric bags. Following a successful launch <br>in Scotland last year, the initiative has <br>now expanded to England, with several <br>suppliers adopting the approach. |

---

---

| | | |
|:---|:---|:---|
| 60 | IHG | Annual Report and Form 20-F 2025 |

---

Being a responsible business continued<br>

**Making stays** 

**more sustainable**

We work closely with our owners to deliver elevated experiences for our guests, engage with

them in meaningful ways throughout their stay and meet growing demand from business

customers and other stakeholders to minimise the impact of travel on the world around us.

**Meeting for Good**

In 2025, more than

650 hotels participated

in Meeting for Good, a

programme that supports

our hotels in delivering more

sustainable meetings for

those who host events at

IHG hotels. The programme

was named the 2025 Gold

Medal winner in Northstar's

Stella Awards for the

'Best Sustainability Initiative',

supporting meeting and

event planners in delivering

more sustainable events

worldwide.

![RBR_JtT_image1.jpg](ihg-20251231_g165.jpg)

![RBR_JtT_image2.jpg](ihg-20251231_g166.jpg)

**Supporting certified** 

**sustainable hotels**

We partner with leading

certification programmes,

including Green Key (FEE)

and Green Key Global,

to help hotels reference

sustainability credentials to

guests. In 2025, more than

340 hotels had achieved

third-party certification.

![RBR_JtT_image3.jpg](ihg-20251231_g167.jpg)

**Making it simple** 

**for guests to search** 

**for EV charging**

Guests can search for

hotels with EV charging

through the IHG One

Rewards app.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 61 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

![JourneyToTomorrow_White_COLOUR_CMYK.gif](ihg-20251231_g143.gif)

**Journey to** 

**Tomorrow**

Our goal is to help shape the future of

responsible travel together with those

who stay, work and partner with us.

We will support our people and make a

positive difference to local communities,

while preserving our planet's beauty

and biodiversity… not just today but

long into the future.

![RBR_JtT_image4.jpg](ihg-20251231_g168.jpg)

---

| |
|:---|
| **Our people**<br>Champion an inclusive culture <br>where everyone can thrive<br>|
| **Our communities**<br>Improve the lives of 30 million people <br>in our communities around the world<br>|
| **Our Planet:** |
| **Carbon and energy**<br>Reduce our energy use and carbon <br>emissions in line with climate science<br>|
| **Waste**<br>Pioneer the transformation to a <br>minimal waste hospitality industry<br>|
| **Water**<br>Conserve water and help secure water <br>access in those areas at greatest risk<br>|

---

![J2T_People_icon.gif](ihg-20251231_g151.gif)

![J2T_Communities_icon.gif](ihg-20251231_g152.gif)

**Hotels engaging in** 

**local conservation**

Hotels are taking action to

preserve nature and engage

guests in conservation

across our estate.

From coral reef restoration in

Bali to rooftop beekeeping

at InterContinental London

Park Lane, properties are

working with local NGOs

and community groups

to protect biodiversity

and wildlife.

![J2T_Carbon_Energy_icon.gif](ihg-20251231_g153.gif)

---

| | |
|:---|:---|
| **+** | Read more at ihgplc.com/<br>en/responsible-business/<br>case-studies |
|  | Read more at ihgplc.com/<br>en/responsible-business/<br>case-studies |
|  | Read more at ihgplc.com/<br>en/responsible-business/<br>case-studies |

---

![J2T_Waste_icon.gif](ihg-20251231_g154.gif)

![RBR_JtT_image5.jpg](ihg-20251231_g169.jpg)

![J2T_Water_icon.gif](ihg-20251231_g155.gif)

**Greener Stay** 

**initiative reducing** 

**resource use**

Guests can forgo daily

housekeeping and reuse

linen and towels in return

for IHG One Rewards points,

helping to cut water and

energy consumption.

![](ihg-20251231_g170.gif)

Empower our people to help shape

the future of responsible travel

---

| | | |
|:---|:---|:---|
| 62 | IHG | Annual Report and Form 20-F 2025 |

---

Being a responsible business continued<br>

**Our people**

**Our communities**

**Carbon and energy**

**Waste**

**Water**

![J2T_People_icon.gif](ihg-20251231_g151.gif)

**Our people**

---

| | | |
|:---|:---|:---|
|  | Championing an inclusive culture where everyone can thrive | Championing an inclusive culture where everyone can thrive |
| **–D**<br>**r**<br>**i**<br>**v**<br>**e**<br>**g**<br>**e**<br>**n**<br>**d**<br>**e**<br>**r**<br>**b**<br>**a**<br>**l**<br>**a**<br>**n**<br>**c**<br>**e**<br>**a**<br>**n**<br>**d**<br>**a**<br>**d**<br>**o**<br>**u**<br>**b**<br>**l**<br>**i**<br>**n**<br>**g**<br>**o**<br>**f**<br>**u**<br>**n**<br>**d**<br>**e**<br>**r**<br>**-**<br>**r**<br>**e**<br>**p**<br>**r**<br>**e**<br>**s**<br>**e**<br>**n**<br>**t**<br>**e**<br>**d**<br>**g**<br>**r**<br>**o**<br>**u**<br>**p**<br>**s**<br>**a**<br>**c**<br>**r**<br>**o**<br>**s**<br>**s**<br>**o**<br>**u**<br>**r**<br>**l**<br>**e**<br>**a**<br>**d**<br>**e**<br>**r**<br>**s**<br>**h**<br>**i**<br>**p**<br>**.**<br>**–C**<br>**u**<br>**l**<br>**t**<br>**i**<br>**v**<br>**a**<br>**t**<br>**e**<br>**a**<br>**n**<br>**i**<br>**n**<br>**c**<br>**l**<br>**u**<br>**s**<br>**i**<br>**v**<br>**e**<br>**c**<br>**u**<br>**l**<br>**t**<br>**u**<br>**r**<br>**e**<br>**f**<br>**o**<br>**r**<br>**o**<br>**u**<br>**r**<br>**c**<br>**o**<br>**l**<br>**l**<br>**e**<br>**a**<br>**g**<br>**u**<br>**e**<br>**s,**<br>**o**<br>**w**<br>**n**<br>**e**<br>**r**<br>**s**<br>**a**<br>**n**<br>**d**<br>**s**<br>**u**<br>**p**<br>**p**<br>**l**<br>**i**<br>**e**<br>**r**<br>**s**<br>**.**<br>**–S**<br>**u**<br>**p**<br>**p**<br>**o**<br>**r**<br>**t**<br>**a**<br>**l**<br>**l**<br>**c**<br>**o**<br>**l**<br>**l**<br>**e**<br>**a**<br>**g**<br>**u**<br>**e**<br>**s**<br>**t**<br>**o**<br>**p**<br>**r**<br>**i**<br>**o**<br>**r**<br>**i**<br>**t**<br>**i**<br>**s**<br>**e**<br>**t**<br>**h**<br>**e**<br>**i**<br>**r**<br>**w**<br>**e**<br>**l**<br>**l**<br>**b**<br>**e**<br>**i**<br>**n**<br>**g**<br>**a**<br>**n**<br>**d**<br>**t**<br>**h**<br>**e**<br>**w**<br>**e**<br>**l**<br>**l**<br>**b**<br>**e**<br>**i**<br>**n**<br>**g**<br>**o**<br>**f**<br>**o**<br>**t**<br>**h**<br>**e**<br>**r**<br>**s**<br>**.**<br>**–D**<br>**r**<br>**i**<br>**v**<br>**e**<br>**r**<br>**e**<br>**s**<br>**p**<br>**e**<br>**c**<br>**t**<br>**f**<br>**o**<br>**r**<br>**a**<br>**n**<br>**d**<br>**a**<br>**d**<br>**v**<br>**a**<br>**n**<br>**c**<br>**e**<br>**h**<br>**u**<br>**m**<br>**a**<br>**n**<br>**r**<br>**i**<br>**g**<br>**h**<br>**t**<br>**s**<br>**.**<br>| **–Cultivate a culture of inclusion for colleagues and owners.**<br>**–Support all colleagues to prioritise their wellbeing and the wellbeing** <br>**of others.**<br>**–Drive respect for and advance human rights.**  |  |
| | **–Cultivate a culture of inclusion for colleagues and owners.**<br>**–Support all colleagues to prioritise their wellbeing and the wellbeing** <br>**of others.**<br>**–Drive respect for and advance human rights.**  | **Contributing** <br>**to the following** <br>**UN Sustainable** <br>**Development** <br>**Goals (SDGs)** |
| | **–Cultivate a culture of inclusion for colleagues and owners.**<br>**–Support all colleagues to prioritise their wellbeing and the wellbeing** <br>**of others.**<br>**–Drive respect for and advance human rights.**  | **Contributing** <br>**to the following** <br>**UN Sustainable** <br>**Development** <br>**Goals (SDGs)** |
| | **–Cultivate a culture of inclusion for colleagues and owners.**<br>**–Support all colleagues to prioritise their wellbeing and the wellbeing** <br>**of others.**<br>**–Drive respect for and advance human rights.**  | **Contributing** <br>**to the following** <br>**UN Sustainable** <br>**Development** <br>**Goals (SDGs)** |
| | **–Cultivate a culture of inclusion for colleagues and owners.**<br>**–Support all colleagues to prioritise their wellbeing and the wellbeing** <br>**of others.**<br>**–Drive respect for and advance human rights.**  |  |

---

**2025 highlights**

87%<br>employee engagement, <br>placing IHG in the top quartile <br>of most engaged employers. <br>

**Employee engagement**

Employees can share their thoughts

through several forums, including

Employee Resource Groups (ERGs),

a designated Non-Executive Director

for workforce engagement, and

Colleague HeartBeat, our employee

engagement survey, for colleagues in

corporate and reservations offices and

owned & leased or managed hotels.

The survey allows people to express

their views on key aspects of

working at IHG.

In our 2025 survey, our overall

employee engagement remained

at 87%, which maintained our place

in the top quartile of most engaged

employers, according to Mercer, and

reflects strong colleague engagement

with our growth strategy.

**Embedding our high-**

**performance culture**

In 2025, we strengthened our culture

and what makes working at IHG so special

by sharpening our focus on performance

to drive competitive advantage.

To embed our new approach, we

engaged corporate colleagues across

key areas, including introducing a simple,

consistent definition of high performance.

We increased the effectiveness of our

work together by launching a structured

feedback campaign built around our

growth behaviours that apply to the

work we do every day, and we clarified

the expectations of our people leaders

by providing tools to build our talent

capabilities in support of IHG's growth.

![SDG_5.jpg](ihg-20251231_g171.jpg)

![SDG_3.jpg](ihg-20251231_g172.jpg)

![SDG_10.jpg](ihg-20251231_g173.jpg)

![SDG_17.jpg](ihg-20251231_g174.jpg)

We also strengthened the link between

performance and reward for those

who are excelling, with greater

differentiation across all elements

of pay, which is underpinned by a

new Annual Performance Plan aimed

at driving the growth of the Company

and sharing in its success.

**An inclusive workplace**

Our culture of inclusion is essential

to attracting, developing and engaging

the talent that drives our growth. At IHG,

inclusion means ensuring everyone feels

like they belong, are valued for their unique

contributions, are empowered to thrive

and are connected to the communities

we serve. In 2025, we advanced our

global approach with a focus on three

areas: talent and leadership; culture

and experiences; and community

and partnerships. This focus guides

the steps we take around inclusion

both globally and locally, strengthening

our culture where everyone can thrive

and making a positive difference in

the communities we serve.

Our Global Inclusion Board and Regional

Inclusion Councils meet quarterly to set

priorities, monitor progress and ensure

we continue creating an environment

where colleagues and owners across

our markets can grow. This work is

underpinned by our Global Inclusion

Policy (**ihgplc.com/en/responsible-**

**business/policies-and-position-**

**statements**).

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 63 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| |
|:---|
| 1 |
| The Story Suite is a colleague advocacy <br>programme which empowers employees <br>as brand ambassadors.  |

---

1<br>

![RBR_people_image1.jpg](ihg-20251231_g175.jpg)

Our 2025 Colleague Heartbeat survey

showed nine in 10 colleagues believe

IHG has an inclusive culture. To continue

strengthening our approach, we

expanded our Europe Inclusion Hotel

Ambassadors programme to selected

hotels in the Americas to support

more inclusive guest and colleague

experiences.

Our ERGs are central to creating

and maintaining IHG's culture. These

employee-organised groups are open

to all corporate colleagues who want

to join and bring together people of

various backgrounds, experiences and

skills to share perspectives, support

personal and professional growth

through mentorship, educational

and development initiatives, as well

as provide ongoing feedback.

We continue to grow our business

responsibly, with inclusive community

partnerships a key part of our strategy.

In Greater China, we signed a three-year

partnership with the China Disabled

Persons Federation to provide

employment, internships and develop

skills. In EMEAA, we continued working

with Singapore-based charity APSN

and created a partnership with the

AI Noor Training Centre in Dubai

to provide skills development and

training for people of disability.

**Attracting talent**

In 2025, IHG strengthened its

position as an employer of choice

by enhancing the ways we attract

and engage talent for our corporate

colleagues and managed hotels<sup>a</sup>.

Room for You is our refreshed global

Employer Value Proposition (EVP),

which sits at the heart of our employer

brand and underpins our global

careers platform (**careers.ihg.com**).

Our social presence continued

to expand, amplifying our brand

visibility and reach.

We were also named in the Fortune

100 Best Companies to Work For®

2025 list by Great Place To Work®

and Fortune, reflecting our ongoing

commitment to enhancing workplace

culture and colleague benefits.

IHG won five industry awards in 2025,

including accolades for recruitment

innovation and in-house marketing

excellence. We also launched Leading

a New Era, our new podcast series

that takes listeners behind the scenes

of some of our Luxury & Lifestyle

hotels and into the minds of

the inspiring GMs who lead them,

to help support further growth

of our GM talent pipeline.

We also launched 'The Story Suite',

a colleague advocacy programme

designed to empower colleagues

as brand ambassadors.

a.We do not employ colleagues in franchise hotels, nor do we control their day-to-day operations, policies or procedures.

---

| | | |
|:---|:---|:---|
| 64 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Being a responsible business continued |
| Our people continued |

---

**Our people**

**Our communities**

**Carbon and energy**

**Waste**

**Water**

![J2T_People_icon.gif](ihg-20251231_g151.gif)

---

| |
|:---|
| 1 |
| IHG is the only international hotel <br>group in Mainland China recognised <br>by the Top Employer Institute.  |
| 2 |
| In 2025, we invested in our hotel learning <br>by expanding IHG University solutions. |

---

1<br>

![RBR_people_image2.jpg](ihg-20251231_g176.jpg)

In addition to strengthening the link

between performance and reward as

part of our high-performance culture

for corporate colleagues, in 2025,

we launched our IHG One Pass

exclusive colleague travel benefits,

which strengthens our employee

room rate offering, a key milestone

for colleagues and their friends

and families.

In 2025, we launched a new AI-powered

candidate experience system to

transform the way we engage and

hire talent for our corporate colleagues

and managed hotels. Automating key

stages of the hiring journey through

our virtual assistant 'Alex', has delivered

efficiencies across multiple markets,

improving the candidate experience

and strengthening our hiring capabilities

by enabling us to build and nurture

talent pools through our global

Candidate Relationship Management

(CRM) platform.

**Developing and** 

**retaining talent**

Our hotel business thrives on

exceptional leadership, and General

Managers (GMs) are the driving force

behind operational performance and

brand delivery. To sustain and accelerate

growth, we've made building a strong

hotel GM pipeline a strategic priority

for our managed estate, ensuring every

property has the leadership needed

to maximise revenue and guest

satisfaction.

Our Journey to GM dedicated talent

programme for managed hotels, which

we launched in 2021, is a cornerstone

of this strategy. Today, it represents

a strong pipeline with many graduates

already in GM roles.

Complementing this, our RISE

programme, open to colleagues from

managed hotels with aspirations of

leadership roles, continues to thrive

as a global initiative driving development

through mentorship, networking and

skills acceleration.

To strengthen global talent capability

and support future growth, we established

the Global Hotel Talent Service Centre

in India. This team centralises processes,

data, and analytics to improve efficiency

and consistency in talent management

worldwide.

Alongside global programmes, we

deploy targeted regional initiatives to

stay agile and meet local market needs.

**Investing in our learning offer**

IHG University continued to strengthen

a culture of learning for owners and

hotel colleagues in our managed

and franchised hotels, as well as for

corporate employees throughout 2025.

During the year, IHG University

further expanded its Owner Learning

Solutions library with five new solutions

addressing critical drivers of hotel

success. These focused on equipping

owners and owner representatives with

insights to fine-tune hotel operations,

including elevating quality to drive

hotel performance, increasing loyalty

engagement and speeding up high-

quality renovations.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 65 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Supporting our purpose of providing

True Hospitality for Good, we are

committed to developing hotel

leaders who focus not only on what

they deliver, but also on how they lead.

In 2025, we scaled our Journey To

programmes to deliver a structured

development pathway that grows

talent in our managed and franchised

hotels from line-level roles through

to GM, building leadership capabilities

at every stage of a hotel career.

The Journey to Supervisor curriculum

focuses on building foundational

supervisory capabilities, while the

Journey to Manager programme

deepens leadership capability

in delegation, coaching, feedback,

and performance management. To

further strengthen career pathways,

Journey to Senior Manager is currently

in development and scheduled for

launch in 2026.

IHG University continued to play

a central role in the opening of new

properties through the New Hotels

and Conversions learning approach.

We also introduced a customisable

model so that hotels can create

individual training plans tailored to

the unique needs of each opening

or conversion.

IHG University also supported the

embedding of our high-performance

culture across our corporate offices,

with sessions focused on role-

modelling open and honest feedback

conversations, as well as enabling

leaders to lead through the

performance transformation.

---

| | |
|:---|:---|
| **+** | Further information on the profile of <br>the Board and Executive Committee <br>is included on pages 118 to 121. |
|  | Further information on the profile of <br>the Board and Executive Committee <br>is included on pages 118 to 121. |
|  | Further information on the profile of <br>the Board and Executive Committee <br>is included on pages 118 to 121. |

---

---

| | | | |
|:---|:---|:---|:---|
| In accordance with UK reporting requirements, information on the Directors <br>and relevant employees is set out below: | In accordance with UK reporting requirements, information on the Directors <br>and relevant employees is set out below: | In accordance with UK reporting requirements, information on the Directors <br>and relevant employees is set out below: | In accordance with UK reporting requirements, information on the Directors <br>and relevant employees is set out below: |
| As at 31 December 2025 | Male | Female | Total |
| Directors | 6 | 4 | 10 |
| Executive Committee | 6 | 4 | 10 |
| Executive Committee direct reports | 41 | 20 | 61 |
| Senior managers<br>(including subsidiary directors)<br>| 82 | 27 | 109 |
| All employees<sup>a</sup><br>(whose costs were borne by the <br>Group or the System Fund)<br>| 5893 | 7156 | 13049 |

---

![RBR_people_image3.jpg](ihg-20251231_g177.jpg)

2<br>

a.All employees figure includes only those

employees whose costs were borne by

the Group or the System Fund and not

those who are reimbursed. For details

on reimbursed colleague numbers,

please see page 200.

---

| | | |
|:---|:---|:---|
| 66 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Being a responsible business continued |
| Our people continued |

---

**Our people**

**Our communities**

**Carbon and energy**

**Waste**

**Water**

![J2T_People_icon.gif](ihg-20251231_g151.gif)

**Driving respect for and** 

**advancing human rights**

Driving respect for and advancing

human rights is integral to our

approach to responsible business,

and our commitment is set out in

our Human Rights Policy.

Our human rights work focuses

on our salient human rights issues –

those human rights at risk of being

the most severely impacted through

our business activities or relationships.

These are currently identified as: guest

welfare; freedom of association and

collective bargaining; discrimination

and harassment; wages and working

hours; health and safety, forced labour

and child labour; sex trafficking and

sexual exploitation; and environment

and community.

While we continue to collaborate

with colleagues across the business

to better understand and manage

issues, our efforts this year focused

on addressing risks related to forced

labour, sex trafficking and sexual

exploitation, and our supply chain.

To ensure our actions are consistent,

measurable and targeted towards

the activities that will have the biggest

impact, our approach focuses on

the following areas.

**Governance and policies**

We work to ensure clear accountability

for human rights risks and the alignment

of relevant policies with international

human rights standards across the

business. Overall accountability for

the programme sits with our Executive

Vice President, General Counsel and

Company Secretary, who is a member

of IHG's Executive Committee. Our

Human Rights team is responsible

for integrating human rights into the

business and works closely with other

teams across the organisation to

bring our commitments to life.

This year we expanded our brand

standard that requires IHG hotel

colleagues to complete annual training

on preventing human trafficking to

have global coverage.

**Due diligence**

We conduct ongoing human rights

due diligence across our business and

supply chain through risk and impact

assessments, integrating findings and

tracking the effectiveness of actions

taken. We utilise a wide range of

internal and external data to support

these efforts and strive to meaningfully

engage with rights holders such

as workers.

We continue to drive compliance with

IHG's Responsible Labour Requirements

(RLRs), which set out minimum

standards for our managed, owned

& leased hotels on ethical recruitment,

staff accommodation, worker voice

and the use of third parties to source

labour. In 2025, we rolled out new digital

self-assessments globally, enhancing

transparency, monitoring and the quality

of corrective actions. Over 92% of

hotels completed the self-assessment

and generally demonstrated good

understanding and alignment with

the RLRs.

This year, we have worked on addressing

the findings from our on-site assessments

conducted across selected hotels in

the United Arab Emirates, Saudi Arabia

and Kuwait at the end of 2024.

These assessments included focus groups

and one-to-one interviews with a range

of colleagues, interviews with managers,

engagement with selected labour

suppliers and tours of different

departments and staff accommodation.

The on-site assessments generally

identified examples of good responsible

labour practices across all hotels,

demonstrating the ongoing progress

being made and the value of the RLRs.

However, areas of improvement were

noted, particularly in relation to colleagues

employed by labour suppliers. We have

taken action to address the findings,

working with the hotels to drive stronger

labour standards across our operations.

1<br>

![RBR_people_image4.jpg](ihg-20251231_g178.jpg)

For further information on how some

of the gaps and adverse impacts

identified through the on-site

assessment are being addressed,

see page 14 of our 2025 Modern

Slavery Statement.

---

| |
|:---|
| 1 |
| Developing the next generation <br>of hospitality talent through the <br>IHG Internship Programme.  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 67 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

2<br>

![RBR_people_image5.jpg](ihg-20251231_g179.jpg)

To help support our franchised

hotels' efforts on this topic, this year

we made guidance on responsible

labour practices available to them.

In 2025, we also continued to strengthen

human rights due diligence across our

supply chain by progressing our work

to trial supplier assessments and audits

with Sedex. For further information,

please see the Responsible Procurement

section on page 57.

**Remediation**

We work to provide access to

reporting channels for anyone whose

human rights may have been affected

by our business activities or business

relationships and provide remedy

for those impacts we have caused

or contributed towards. This year, we

continued to address recommendations

from the 2024 review of our confidential

reporting channel against the

effectiveness criteria set out in the UN

Guiding Principles on Business and

Human Rights. We made key materials

for users available in additional

languages and strengthened

communication with reporters.

---

| |
|:---|
| 2 |
| In 2025, IHG embedded a new <br>approach to high performance. |

---

**Capabilities and engagement**

We drive awareness of human rights

through our mandatory Code of

Conduct e-learning module and via

targeted training for colleagues to

understand the commitments and

actions relevant to their role.

This includes training for colleagues in

owned & leased, managed and franchised

hotels on how to identify and report

suspected human trafficking activities.

This year, in partnership with leading

anti-trafficking NGO PACT and industry

peers, we updated this training to reflect

the latest guidance from experts

and insights from survivors. We also

continued to drive completion of our

responsible labour e-learning for

owned & leased and managed hotels

and hosted internal learning sessions

for colleagues in procurement, legal

and corporate responsibility.

We strongly believe that collaboration

with experts and peers, both in our

industry and beyond, plays an important

role in addressing human rights risks

through focusing attention and action

towards a joint purpose, with the

potential of driving systemic change.

For example, IHG is participating in

a multi-stakeholder, cross-industry

initiative facilitated by Impactt to

develop a freely available map of

labour migration corridors at higher

risk of recruitment fees and related

costs. This resource aims to provide

companies across all sectors with

data on recruitment fees and related

costs paid by workers to inform human

rights due diligence processes and

decisions affecting migrant workers'

human rights. Further information

on our key human rights partnerships

can be found on page 21 of our

2025 Modern Slavery Statement.

---

| | | |
|:---|:---|:---|
| 68 | IHG | Annual Report and Form 20-F 2025 |

---

Being a responsible business continued<br>

**Our people**

**Our communities**

**Carbon and energy**

**Waste**

**Water**

![J2T_Communities_icon.gif](ihg-20251231_g152.gif)

**Our communities**

---

| | | |
|:---|:---|:---|
|  | Improve the lives of 30 million people in our communities around the world | Improve the lives of 30 million people in our communities around the world |
| **–D**<br>**r**<br>**i**<br>**v**<br>**e**<br>**g**<br>**e**<br>**n**<br>**d**<br>**e**<br>**r**<br>**b**<br>**a**<br>**l**<br>**a**<br>**n**<br>**c**<br>**e**<br>**a**<br>**n**<br>**d**<br>**a**<br>**d**<br>**o**<br>**u**<br>**b**<br>**l**<br>**i**<br>**n**<br>**g**<br>**o**<br>**f**<br>**u**<br>**n**<br>**d**<br>**e**<br>**r**<br>**-**<br>**r**<br>**e**<br>**p**<br>**r**<br>**e**<br>**s**<br>**e**<br>**n**<br>**t**<br>**e**<br>**d**<br>**g**<br>**r**<br>**o**<br>**u**<br>**p**<br>**s**<br>**a**<br>**c**<br>**r**<br>**o**<br>**s**<br>**s**<br>**o**<br>**u**<br>**r**<br>**l**<br>**e**<br>**a**<br>**d**<br>**e**<br>**r**<br>**s**<br>**h**<br>**i**<br>**p**<br>**.**<br>**–C**<br>**u**<br>**l**<br>**t**<br>**i**<br>**v**<br>**a**<br>**t**<br>**e**<br>**a**<br>**n**<br>**i**<br>**n**<br>**c**<br>**l**<br>**u**<br>**s**<br>**i**<br>**v**<br>**e**<br>**c**<br>**u**<br>**l**<br>**t**<br>**u**<br>**r**<br>**e**<br>**f**<br>**o**<br>**r**<br>**o**<br>**u**<br>**r**<br>**c**<br>**o**<br>**l**<br>**l**<br>**e**<br>**a**<br>**g**<br>**u**<br>**e**<br>**s,**<br>**o**<br>**w**<br>**n**<br>**e**<br>**r**<br>**s**<br>**a**<br>**n**<br>**d**<br>**s**<br>**u**<br>**p**<br>**p**<br>**l**<br>**i**<br>**e**<br>**r**<br>**s**<br>**.**<br>**–S**<br>**u**<br>**p**<br>**p**<br>**o**<br>**r**<br>**t**<br>**a**<br>**l**<br>**l**<br>**c**<br>**o**<br>**l**<br>**l**<br>**e**<br>**a**<br>**g**<br>**u**<br>**e**<br>**s**<br>**t**<br>**o**<br>**p**<br>**r**<br>**i**<br>**o**<br>**r**<br>**i**<br>**t**<br>**i**<br>**s**<br>**e**<br>**t**<br>**h**<br>**e**<br>**i**<br>**r**<br>**w**<br>**e**<br>**l**<br>**l**<br>**b**<br>**e**<br>**i**<br>**n**<br>**g**<br>**a**<br>**n**<br>**d**<br>**t**<br>**h**<br>**e**<br>**w**<br>**e**<br>**l**<br>**l**<br>**b**<br>**e**<br>**i**<br>**n**<br>**g**<br>**o**<br>**f**<br>**o**<br>**t**<br>**h**<br>**e**<br>**r**<br>**s**<br>**.**<br>**–D**<br>**r**<br>**i**<br>**v**<br>**e**<br>**r**<br>**e**<br>**s**<br>**p**<br>**e**<br>**c**<br>**t**<br>**f**<br>**o**<br>**r**<br>**a**<br>**n**<br>**d**<br>**a**<br>**d**<br>**v**<br>**a**<br>**n**<br>**c**<br>**e**<br>**h**<br>**u**<br>**m**<br>**a**<br>**n**<br>**r**<br>**i**<br>**g**<br>**h**<br>**t**<br>**s**<br>**.**<br>| **–Drive economic and social change through skills training and innovation.**<br>**–Support our communities when natural disasters strike.**<br>**–Collaborate to aid those facing food poverty.** |  |
|  | **–Drive economic and social change through skills training and innovation.**<br>**–Support our communities when natural disasters strike.**<br>**–Collaborate to aid those facing food poverty.** | **Contributing** <br>**to the following** <br>**UN SDGs** |
|  | **–Drive economic and social change through skills training and innovation.**<br>**–Support our communities when natural disasters strike.**<br>**–Collaborate to aid those facing food poverty.** | **Contributing** <br>**to the following** <br>**UN SDGs** |
|  | **–Drive economic and social change through skills training and innovation.**<br>**–Support our communities when natural disasters strike.**<br>**–Collaborate to aid those facing food poverty.** | **Contributing** <br>**to the following** <br>**UN SDGs** |
|  | **–Drive economic and social change through skills training and innovation.**<br>**–Support our communities when natural disasters strike.**<br>**–Collaborate to aid those facing food poverty.** |  |

---

**2025 highlights**

---

| |
|:---|
| >10.2m<sup>a</sup><br>lives improved through our <br>collective action and work with <br>our charity partners since 2021.<br>|
| 22<br>natural disasters responded to, <br>supporting charities in critical <br>recovery efforts.<br>|

---

Sitting at the heart of our work in

communities is a pledge to improve

the lives of 30 million people through

focusing on skills training, disaster

response and food security. We do this

through direct funding and working in

partnership with expert organisations,

with our colleagues also sharing their

time, skills and passion to address

social needs in their communities.

**Local action and** 

**Giving for Good month**

Throughout the year, teams support

a wide range of local causes, and each

September we amplify this impact

through Giving for Good month.

Colleagues take part in activities ranging

from clean-up events and supporting

homeless shelters and food banks,

to fundraising for local organisations.

Highlights this year included Greater

China's Decathlon of Charity, which

engaged more than 8,000 colleagues,

and Singapore's fourth annual Giving

for Good relay, which raised funds for

![RBR_communities_image1.jpg](ihg-20251231_g180.jpg)

an organisation that provides training

and job opportunities for people

with learning disabilities.

Our guests are also given the

opportunity to show their support to

communities by donating their IHG

One Rewards points for good. We work

with a range of non-profits, from food

banks to job-training organisations,

where donated points are converted

into dollars to support their work.

![SDG_1.jpg](ihg-20251231_g181.jpg)

![SDG_2.jpg](ihg-20251231_g182.jpg)

![SDG_8.jpg](ihg-20251231_g183.jpg)

![SDG_17.jpg](ihg-20251231_g174.jpg)

In total, we have improved over 10.2 million

lives through our collective action and

work with our charity partners since 2021.

**Skills training**

The travel and tourism industry plays a

vital role in economic growth, accounting

for one in 10 jobs worldwide and offering

a variety of career pathways. Since 2006,

the IHG Academy has supported

communities by helping people build the

skills, confidence and access needed to

pursue meaningful careers in hospitality.

The IHG Academy is structured around

three interconnected pillars – Discover,

Skills Builder and Career Launcher –

designed to engage, educate and inspire

talent at every stage of their journey

into hospitality. As the programme

approaches its 20ᵗʰ anniversary in 2026,

it continues to evolve to meet changing

industry needs and expand access

to opportunity.

Through IHG Discover, we introduce

people to the breadth of roles available

in hospitality. In 2025, we delivered

interactive sessions across countries,

engaging participants through schools,

NGOs and charities. This included a

pilot of Virtual IHG Discover Career

Workshops, improving accessibility and

broadening our reach to new audiences.

IHG Skills Builder, our free online learning

platform, supports learners around

the world to develop both hospitality-

specific and transferable skills.

a.The methodology IHG uses for 'lives improved' focuses on the number of individuals directly

engaged through IHG's community impact programmes, using the Business for Societal Impact

(B4SI) framework to assess IHG's community investments, measuring inputs, outputs, outcomes

and long-term societal impacts.

1<br>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 69 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

![RBR_communities_image3.jpg](ihg-20251231_g184.jpg)

In 2025, learners signed up to

complete courses and earn digital

badges to recognise their progress.

The platform was further enhanced

through new content, including

the launch of Careers in Hospitality

e-learning in Arabic and English,

alongside increased global awareness

through social media campaigns.

Through IHG Career Launcher,

we provide structured, on-property

opportunities that help individuals

transition into employment. In 2025,

the programme delivered internships,

work placements and apprenticeships

across multiple countries, offering

practical experience and pathways into

long-term careers. This included a new

partnership in the UK with The King's Trust,

where our events have already resulted

in employment opportunities. We also

established the IHG Academy alumni

talent community, strengthening

ongoing engagement with future

talent beyond individual programmes.

Together, these initiatives reflect

our continued commitment to

strengthening communities, fostering

inclusive growth and developing

the next generation of hotel talent.

**Disaster response**

Across all our regions, our swift and

coordinated responses to natural disasters

in 2025 reflect our deep commitment to

supporting communities and colleagues.

We have supported the response to

multiple **disasters over the years –** including

wildfires, tropical storms and flooding –

and have a proud record of being there

when our communities need us most.

In 2025, we **supported 22 disaster relief** 

**efforts around the globe**, including in the

US, China and South East Asia, working

closely with charity relief experts such as

CARE International and The International

Federation of Red Cross and Red Crescent

Societies. We activated the IHG Disaster

Colleague Assistance Fund to provide

financial support for colleagues needing

food and secure living conditions

following natural disasters.

**Collaborating to aid** 

**those facing food poverty**

Food insecurity continues to affect

billions worldwide, and addressing

it remains a key focus. In 2025,

we marked the one-year anniversary

of our global partnership with Action

Against Hunger, supporting its mission

to combat hunger and malnutrition

globally. From funding nutrition

screenings to strengthening local

health systems, our partnership delivers

both immediate relief and long-term

impact, with 5.4 million people supported

through our partnership since launch.

Locally, we continue to work with

food banks and charities. In the US,

a number of hotels are participating

in initiatives with surplus food recovery

organisations to help support local

communities. We supported No Kid

Hungry's Taste of the Nation events

in Houston and Chicago, which

both helped to raise funds to support

the organisation's work in addressing

childhood hunger. In Australia and

New Zealand, 49 hotels took part in our

Stay for Good initiative with OzHarvest

and KiwiHarvest in which participating

2<br>

![RBR_communities_image2.jpg](ihg-20251231_g185.jpg)

guests donated $1 per stay. This resulted

in over 140,000 meals being donated

to local communities. The programme

was also expanded to Singapore,

Indonesia, Vietnam and Thailand.

By combining global reach with

local action, we are helping reduce

food waste, improve access to

nutrition and support healthier futures

for communities around the world.

3<br>

---

| |
|:---|
| 1 |
| Colleagues from the EVEN Hotel Pittsburgh <br>Downtown, US, supporting a community <br>food bank during Giving for Good month. |
| 2 |
| Our Atlanta-based interns embody <br>IHG's commitment to developing the <br>next generation of hospitality leaders <br>and strengthening local communities. |
| 3 |
| Amina, Nutrition Assistant at Action <br>Against Hunger, assisting women in <br>the preparation of tom brown porridge <br>that improves children's health. <br>Bagarawa, Sokoto State, Nigeria. |

---

---

| | | |
|:---|:---|:---|
| 70 | IHG | Annual Report and Form 20-F 2025 |

---

Being a responsible business continued<br>

**Our people**

**Our communities**

**Carbon and energy**

**Waste**

**Water**

![J2T_Carbon_Energy_icon.gif](ihg-20251231_g153.gif)

**Our planet**

---

| | | |
|:---|:---|:---|
|  | Carbon and energy: Reduce our energy use and carbon emissions in line with climate science | Carbon and energy: Reduce our energy use and carbon emissions in line with climate science |
| **–D**<br>**r**<br>**i**<br>**v**<br>**e**<br>**g**<br>**e**<br>**n**<br>**d**<br>**e**<br>**r**<br>**b**<br>**a**<br>**l**<br>**a**<br>**n**<br>**c**<br>**e**<br>**a**<br>**n**<br>**d**<br>**a**<br>**d**<br>**o**<br>**u**<br>**b**<br>**l**<br>**i**<br>**n**<br>**g**<br>**o**<br>**f**<br>**u**<br>**n**<br>**d**<br>**e**<br>**r**<br>**-**<br>**r**<br>**e**<br>**p**<br>**r**<br>**e**<br>**s**<br>**e**<br>**n**<br>**t**<br>**e**<br>**d**<br>**g**<br>**r**<br>**o**<br>**u**<br>**p**<br>**s**<br>**a**<br>**c**<br>**r**<br>**o**<br>**s**<br>**s**<br>**o**<br>**u**<br>**r**<br>**l**<br>**e**<br>**a**<br>**d**<br>**e**<br>**r**<br>**s**<br>**h**<br>**i**<br>**p**<br>**.**<br>**–C**<br>**u**<br>**l**<br>**t**<br>**i**<br>**v**<br>**a**<br>**t**<br>**e**<br>**a**<br>**n**<br>**i**<br>**n**<br>**c**<br>**l**<br>**u**<br>**s**<br>**i**<br>**v**<br>**e**<br>**c**<br>**u**<br>**l**<br>**t**<br>**u**<br>**r**<br>**e**<br>**f**<br>**o**<br>**r**<br>**o**<br>**u**<br>**r**<br>**c**<br>**o**<br>**l**<br>**l**<br>**e**<br>**a**<br>**g**<br>**u**<br>**e**<br>**s,**<br>**o**<br>**w**<br>**n**<br>**e**<br>**r**<br>**s**<br>**a**<br>**n**<br>**d**<br>**s**<br>**u**<br>**p**<br>**p**<br>**l**<br>**i**<br>**e**<br>**r**<br>**s**<br>**.**<br>**–S**<br>**u**<br>**p**<br>**p**<br>**o**<br>**r**<br>**t**<br>**a**<br>**l**<br>**l**<br>**c**<br>**o**<br>**l**<br>**l**<br>**e**<br>**a**<br>**g**<br>**u**<br>**e**<br>**s**<br>**t**<br>**o**<br>**p**<br>**r**<br>**i**<br>**o**<br>**r**<br>**i**<br>**t**<br>**i**<br>**s**<br>**e**<br>**t**<br>**h**<br>**e**<br>**i**<br>**r**<br>**w**<br>**e**<br>**l**<br>**l**<br>**b**<br>**e**<br>**i**<br>**n**<br>**g**<br>**a**<br>**n**<br>**d**<br>**t**<br>**h**<br>**e**<br>**w**<br>**e**<br>**l**<br>**l**<br>**b**<br>**e**<br>**i**<br>**n**<br>**g**<br>**o**<br>**f**<br>**o**<br>**t**<br>**h**<br>**e**<br>**r**<br>**s**<br>**.**<br>**–D**<br>**r**<br>**i**<br>**v**<br>**e**<br>**r**<br>**e**<br>**s**<br>**p**<br>**e**<br>**c**<br>**t**<br>**f**<br>**o**<br>**r**<br>**a**<br>**n**<br>**d**<br>**a**<br>**d**<br>**v**<br>**a**<br>**n**<br>**c**<br>**e**<br>**h**<br>**u**<br>**m**<br>**a**<br>**n**<br>**r**<br>**i**<br>**g**<br>**h**<br>**t**<br>**s**<br>**.**<br>| **–Implement a 2030 science-based target that delivers 46%** <br>**absolute reduction in carbon dioxide emissions from our franchised,** <br>**managed and owned & leased hotels.**<br>**–Target 100% new-build hotels to operate at very low/zero carbon** <br>**emissions by 2030.**<br>**–Maximise/optimise the role of renewable energy.** |  |
|  | **–Implement a 2030 science-based target that delivers 46%** <br>**absolute reduction in carbon dioxide emissions from our franchised,** <br>**managed and owned & leased hotels.**<br>**–Target 100% new-build hotels to operate at very low/zero carbon** <br>**emissions by 2030.**<br>**–Maximise/optimise the role of renewable energy.** | **Contributing** <br>**to the following** <br>**UN SDGs** |
|  | **–Implement a 2030 science-based target that delivers 46%** <br>**absolute reduction in carbon dioxide emissions from our franchised,** <br>**managed and owned & leased hotels.**<br>**–Target 100% new-build hotels to operate at very low/zero carbon** <br>**emissions by 2030.**<br>**–Maximise/optimise the role of renewable energy.** | **Contributing** <br>**to the following** <br>**UN SDGs** |
|  | **–Implement a 2030 science-based target that delivers 46%** <br>**absolute reduction in carbon dioxide emissions from our franchised,** <br>**managed and owned & leased hotels.**<br>**–Target 100% new-build hotels to operate at very low/zero carbon** <br>**emissions by 2030.**<br>**–Maximise/optimise the role of renewable energy.** | **Contributing** <br>**to the following** <br>**UN SDGs** |
|  | **–Implement a 2030 science-based target that delivers 46%** <br>**absolute reduction in carbon dioxide emissions from our franchised,** <br>**managed and owned & leased hotels.**<br>**–Target 100% new-build hotels to operate at very low/zero carbon** <br>**emissions by 2030.**<br>**–Maximise/optimise the role of renewable energy.** |  |
|  | **–Implement a 2030 science-based target that delivers 46%** <br>**absolute reduction in carbon dioxide emissions from our franchised,** <br>**managed and owned & leased hotels.**<br>**–Target 100% new-build hotels to operate at very low/zero carbon** <br>**emissions by 2030.**<br>**–Maximise/optimise the role of renewable energy.** |  |

---

**Carbon and energy**

By taking action on climate change,

we can reduce our environmental

footprint, strengthen resilience to future

risks and meet growing demands

from guests, owners, investors and

colleagues for action in this area.

Our emissions reduction plan focuses

on three key areas based on what

IHG can control and influence:

implementing energy efficiency

measures in hotels; pioneering low-

carbon hotels; and supporting

hotels to source renewable energy.

Our asset-light business model means

that almost all of our hotels are owned

by third parties, with just over half

of the emissions under our carbon

target generated by franchisees who

manage and operate their properties

independently. We are committed

to supporting owners – many of

whom are small businesses – to

decarbonise and improve operational

efficiency by providing a wide range

of tools and resources. For example,

our Hotel Energy Reduction Opportunities

(HERO) tool benchmarks an individual

hotel against other IHG hotels of the

same brand, region and climate zone

and analyses where the hotel's energy

is being consumed. It is then able to

make customised suggestions on

which energy conservation measures

(ECMs) are most appropriate for that

hotel and provides approximate costs,

savings and payback periods to support

forward capital planning.

**Our 2025 performance**

In 2021, we set a target to reduce absolute

Scope 1, 2, and 3 (including energy from

FERA and franchised hotels) by 46%

by 2030 from a 2019 baseline – a goal

validated by the Science Based Targets

initiative (SBTi).

Our ongoing commitment to

actions driving energy reduction and

decarbonisation has delivered a 10.2%

reduction in energy consumption per

available room and a 11.0% reduction in

carbon emissions per available room

in 2025 compared with 2019. Last year,

we reported that we were off track

to meet our 2030 target and this

continues to be the case in 2025 due

to the continued lack of a clean energy

infrastructure in many of our markets,

alongside the successful opening of more

hotels globally. This means total carbon

emissions are up 7.7% since 2019.<sup>a</sup>

As we review our future carbon target,

we are considering the evolving landscape

of sustainability standards, including

updates to carbon accounting, target

validation criteria from third parties and

emerging technologies. Maintaining

focus on where IHG can drive and

influence decarbonisation will be critical

to shaping strategies that remain relevant

a.All figures are restated annually (see

page 82 to 83). Given 2025 revisions,

performance trends should be assessed

using only the restated figures in this report.

and effective across all regions and

communities we serve. This work will

be completed during 2026.

![SDG_3.jpg](ihg-20251231_g172.jpg)

![SDG_5.jpg](ihg-20251231_g171.jpg)

![SDG_10.jpg](ihg-20251231_g173.jpg)

![SDG_17.jpg](ihg-20251231_g174.jpg)

We remain committed to supporting

hotel owners in reducing their energy

consumption and carbon emissions.

While our programmes will take time to

scale, the actions we are implementing

today will enhance operational efficiency

across IHG hotels and position us for

accelerated decarbonisation when market

conditions become more favourable.

---

| | |
|:---|:---|
| **+** | See pages 82 to 83 for detailed energy <br>and carbon data, and page 83 for our <br>data methodology statement. |
|  | See pages 82 to 83 for detailed energy <br>and carbon data, and page 83 for our <br>data methodology statement. |
|  | See pages 82 to 83 for detailed energy <br>and carbon data, and page 83 for our <br>data methodology statement. |

---

**Implementing energy** 

**efficiency measures in hotels**

In 2025, we continued to integrate ECMs

into our brand standards, prioritising

those with paybacks under five years

and developing additional standards

for specific regions and segments.

Over the past four years, 18 ECMs have

been incorporated, targeting kitchens,

heating and cooling, lighting and

swimming pools. Almost 95% of our

managed, owned & leased hotels have

now been upgraded with LED lighting

and water-efficient fixtures, including

back-of-house areas. By making

these replacements in all hotels we

are delivering significant energy and

water savings without compromising

guest experience.

To drive further action, every hotel

is also assigned customised annual

energy reduction targets, tailored to its

brand, region and climate zone, and

performance is monitored as part

of broader hotel metrics.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 71 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Pioneering low-carbon hotels**

To support the future development

of IHG hotels, we are focused on

testing, learning and sharing insights

on innovative approaches that can

accelerate our efforts and inspire

broader adoption of carbon reduction

practices across our estate. In 2025,

we celebrated one year of our

Low Carbon Pioneers programme,

which brings together energy-efficient

hotels that do not combust fossil fuels

energy. We expanded this network

to include hotels across Asia, Europe

and the Americas. This provides more

sustainable choices for corporate clients

and leisure guests, while enabling us

to test, learn and share insights on

what works in practice. In our Americas

region, we are supporting owners

![RBR_planet_image1.jpg](ihg-20251231_g186.jpg)

that are opening new hotels for select

brands by working alongside architects

during the design phase to provide

low-carbon options of prototypes

for hotel designs.

**Supporting hotels source** 

**renewable energy**

Helping hotels access renewable energy

can enable them to quickly reduce

emissions, particularly in regions with

carbon-intensive electricity grids.

While most of our hotels operate

under franchise agreements, and

therefore purchase their own energy,

we strive to help hotels access

renewable energy solutions where

we can, including connecting them

with Community Solar programmes

in select US markets.

Where credible renewable energy

markets exist, we assist our managed

hotels in negotiating renewable

electricity contracts.

In addition, several of our global

offices, including our headquarters

in Windsor in the UK and Atlanta

in the US, are procuring 100%

renewable electricity.

We continue to explore the delivery

of a broader renewable energy

programme that can be accessed

by a wider range of our hotels.

In Greater China, we undertook

a feasibility survey this year before

launching a number of pilots for

renewable energy contracts. In the

US, continued efforts have been

focused on the development

of resources to support hotels

interested in exploring on-site

solar opportunities.

1<br>

2<br>

![RBR_planet_image2.jpg](ihg-20251231_g187.jpg)

---

| |
|:---|
| 1 |
| Our Meeting for Good programme was <br>named the 2025 Gold Medal winner <br>in Northstar's Stella Awards for the <br>Best Sustainability Initiative. |
| 2 |
| In partnership with Zeal Hotels and Valor <br>Hospitality, we opened voco Zeal Exeter Science <br>Park in the UK, our first branded hotel designed <br>to reach net zero operational and embodied <br>carbon. The hotel is designed to operate entirely <br>on renewable energy and is part of our Low <br>Carbon Pioneers programme.  |

---

---

| | | |
|:---|:---|:---|
| 72 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Being a responsible business continued |
| Our planet continued |

---

**Our people**

**Our communities**

**Carbon and energy**

**Waste**

**Water**

![J2T_Waste_icon.gif](ihg-20251231_g154.gif)

---

| | | |
|:---|:---|:---|
|  | Waste: Pioneering the transformation to a minimal waste hospitality industry | Waste: Pioneering the transformation to a minimal waste hospitality industry |
| **–D**<br>**r**<br>**i**<br>**v**<br>**e**<br>**g**<br>**e**<br>**n**<br>**d**<br>**e**<br>**r**<br>**b**<br>**a**<br>**l**<br>**a**<br>**n**<br>**c**<br>**e**<br>**a**<br>**n**<br>**d**<br>**a**<br>**d**<br>**o**<br>**u**<br>**b**<br>**l**<br>**i**<br>**n**<br>**g**<br>**o**<br>**f**<br>**u**<br>**n**<br>**d**<br>**e**<br>**r**<br>**-**<br>**r**<br>**e**<br>**p**<br>**r**<br>**e**<br>**s**<br>**e**<br>**n**<br>**t**<br>**e**<br>**d**<br>**g**<br>**r**<br>**o**<br>**u**<br>**p**<br>**s**<br>**a**<br>**c**<br>**r**<br>**o**<br>**s**<br>**s**<br>**o**<br>**u**<br>**r**<br>**l**<br>**e**<br>**a**<br>**d**<br>**e**<br>**r**<br>**s**<br>**h**<br>**i**<br>**p**<br>**.**<br>**–C**<br>**u**<br>**l**<br>**t**<br>**i**<br>**v**<br>**a**<br>**t**<br>**e**<br>**a**<br>**n**<br>**i**<br>**n**<br>**c**<br>**l**<br>**u**<br>**s**<br>**i**<br>**v**<br>**e**<br>**c**<br>**u**<br>**l**<br>**t**<br>**u**<br>**r**<br>**e**<br>**f**<br>**o**<br>**r**<br>**o**<br>**u**<br>**r**<br>**c**<br>**o**<br>**l**<br>**l**<br>**e**<br>**a**<br>**g**<br>**u**<br>**e**<br>**s,**<br>**o**<br>**w**<br>**n**<br>**e**<br>**r**<br>**s**<br>**a**<br>**n**<br>**d**<br>**s**<br>**u**<br>**p**<br>**p**<br>**l**<br>**i**<br>**e**<br>**r**<br>**s**<br>**.**<br>**–S**<br>**u**<br>**p**<br>**p**<br>**o**<br>**r**<br>**t**<br>**a**<br>**l**<br>**l**<br>**c**<br>**o**<br>**l**<br>**l**<br>**e**<br>**a**<br>**g**<br>**u**<br>**e**<br>**s**<br>**t**<br>**o**<br>**p**<br>**r**<br>**i**<br>**o**<br>**r**<br>**i**<br>**t**<br>**i**<br>**s**<br>**e**<br>**t**<br>**h**<br>**e**<br>**i**<br>**r**<br>**w**<br>**e**<br>**l**<br>**l**<br>**b**<br>**e**<br>**i**<br>**n**<br>**g**<br>**a**<br>**n**<br>**d**<br>**t**<br>**h**<br>**e**<br>**w**<br>**e**<br>**l**<br>**l**<br>**b**<br>**e**<br>**i**<br>**n**<br>**g**<br>**o**<br>**f**<br>**o**<br>**t**<br>**h**<br>**e**<br>**r**<br>**s**<br>**.**<br>**–D**<br>**r**<br>**i**<br>**v**<br>**e**<br>**r**<br>**e**<br>**s**<br>**p**<br>**e**<br>**c**<br>**t**<br>**f**<br>**o**<br>**r**<br>**a**<br>**n**<br>**d**<br>**a**<br>**d**<br>**v**<br>**a**<br>**n**<br>**c**<br>**e**<br>**h**<br>**u**<br>**m**<br>**a**<br>**n**<br>**r**<br>**i**<br>**g**<br>**h**<br>**t**<br>**s**<br>**.**<br>| **–Eliminate single-use items, or move to reusable or recyclable alternatives** <br>**across the guest stay.**<br>**–Minimise food going to waste through a 'prevent, donate, divert' plan.**<br>**–Collaborate to achieve circular solutions for major hotel commodity items.** |  |
| | **–Eliminate single-use items, or move to reusable or recyclable alternatives** <br>**across the guest stay.**<br>**–Minimise food going to waste through a 'prevent, donate, divert' plan.**<br>**–Collaborate to achieve circular solutions for major hotel commodity items.** | **Contributing** <br>**to the following** <br>**UN SDGs** |
| | **–Eliminate single-use items, or move to reusable or recyclable alternatives** <br>**across the guest stay.**<br>**–Minimise food going to waste through a 'prevent, donate, divert' plan.**<br>**–Collaborate to achieve circular solutions for major hotel commodity items.** | **Contributing** <br>**to the following** <br>**UN SDGs** |
| | **–Eliminate single-use items, or move to reusable or recyclable alternatives** <br>**across the guest stay.**<br>**–Minimise food going to waste through a 'prevent, donate, divert' plan.**<br>**–Collaborate to achieve circular solutions for major hotel commodity items.** | **Contributing** <br>**to the following** <br>**UN SDGs** |
| | **–Eliminate single-use items, or move to reusable or recyclable alternatives** <br>**across the guest stay.**<br>**–Minimise food going to waste through a 'prevent, donate, divert' plan.**<br>**–Collaborate to achieve circular solutions for major hotel commodity items.** |  |
|  | **–Eliminate single-use items, or move to reusable or recyclable alternatives** <br>**across the guest stay.**<br>**–Minimise food going to waste through a 'prevent, donate, divert' plan.**<br>**–Collaborate to achieve circular solutions for major hotel commodity items.** | |

---

**Waste**

We recognise the importance

of reducing, reusing and recycling

wherever possible. Key waste streams

in our industry include food service

and single-use items, and this year

we have continued to advance efforts

across our three regions to reduce

our impact in these areas.

**Eliminating single-use items**

Hotels are supported through access

to a Single-Use Items Toolkit, which

provides guidance on reducing, reusing,

replacing and recycling single-use items.

This resource is available to our hotels

globally and includes brand examples

and insights tailored to properties

operating with varied

waste-management infrastructures.

In our EMEAA hotels, guest-facing

communications complement

this approach, and certain guest

room amenities, such as combs and

toothbrushes, are now provided on

request rather than placed in every room,

helping to reduce unnecessary waste.

This approach is further supported

in Greater China, where the expansion

of our partnership with Ant Forest to

nearly 480 hotels enables guests to

forgo selected amenities in exchange

for green points that contribute

to tree-planting programmes.

Brand standards continue to

strengthen our approach to reducing

plastic waste. This year, standards

eliminating plastic water bottles from

guestrooms, meetings and events

were extended beyond European

hotels to properties in Australia,

New Zealand, Singapore, Japan,

Saudi Arabia and the UAE.

A further brand standard was introduced

to remove plastic bin liners from guest

bedrooms in our EMEAA region.

**Circular solutions**

We recognise that products provided

to guests staying in our hotels can

collectively generate large amounts

of waste if not reused or recycled.

We therefore aim to embed circular

economy principles by procuring products

that incorporate recycled content or

make sure items can be put to good use

once they leave our hotels. Across our

regions, hotels partner with innovative

organisations to create circular solutions

that reduce waste, drawing on a range

of approaches tailored to different

products, materials and local needs.

In the US, owners can access our Renew,

Renovate, Recover (3RE) playbook,

which supports the handling of major

commodity items during refurbishments

and helps identify partners that can

refurbish or repurpose equipment. In

2025, for example, more than 100 US

hotels participated in a decommissioning

programme for packaged terminal

air conditioners, with over 2,000 units

diverted from landfill upon replacement.

Other initiatives across our regions

include exploring recycling and reuse

options, from coffee-capsule recycling

and food-waste diversion to integrating

recycled content into products ranging

from upholstery to uniforms.

**Food waste**

To effectively combat food waste, we

have implemented a comprehensive

approach that focuses on training,

monitoring, reducing waste at

the source and donating surplus

food whenever possible.

![SDG_11.jpg](ihg-20251231_g188.jpg)

![SDG_12.jpg](ihg-20251231_g189.jpg)

![SDG_17.jpg](ihg-20251231_g174.jpg)

![SDG_14.jpg](ihg-20251231_g190.jpg)

Since launching our global food waste

e-learning module in 2022, it has been

accessed by more than 2,700 hotels

with over 85,000 courses completed.

This year, we updated it with user

experience enhancements, additional

context and actionable guidance to

further engage and help hotel teams

reduce food waste. The refreshed

module will be launched in 2026.

In 2025, we continued to transition

Holiday Inn Express hotels in the US and

Canada to bulk condiments within their

Express Start breakfast bars, helping

to reduce the number of single-use

plastic items and limit food waste.

Additionally, we focus on supporting

our hotels to divert surplus food from

going to waste. In the US, several hotels

have piloted initiatives with surplus-food

recovery organisations to support local

communities through waste-diversion

efforts, and in EMEAA we launched

new guidance for hotels on donating

and diverting surplus food. We also

continued our collaboration with the

Too Good To Go app across more

than 100 hotels in the UK, saving over

110,000 meals from going to waste.

In Greater China, more than 50 hotels

now work with the third-party platform

Xishi Magic Bag, connecting them

with customers who purchase unsold

food and helping to avoid more than

12 tonnes of food waste, with additional

hotels expected to join soon.

---

| | |
|:---|:---|
| **+** | For more details on how we support our <br>communities through food redistribution <br>initiatives, please see page 69. |
|  | For more details on how we support our <br>communities through food redistribution <br>initiatives, please see page 69. |
|  | For more details on how we support our <br>communities through food redistribution <br>initiatives, please see page 69. |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 73 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Our people**

**Our communities**

**Carbon and energy**

**Waste**

**Water**

![J2T_Water_icon.gif](ihg-20251231_g155.gif)

---

| | | |
|:---|:---|:---|
|  | Water: Conserving water and helping secure water access in those areas at greatest risk | Water: Conserving water and helping secure water access in those areas at greatest risk |
| **–D**<br>**r**<br>**i**<br>**v**<br>**e**<br>**g**<br>**e**<br>**n**<br>**d**<br>**e**<br>**r**<br>**b**<br>**a**<br>**l**<br>**a**<br>**n**<br>**c**<br>**e**<br>**a**<br>**n**<br>**d**<br>**a**<br>**d**<br>**o**<br>**u**<br>**b**<br>**l**<br>**i**<br>**n**<br>**g**<br>**o**<br>**f**<br>**u**<br>**n**<br>**d**<br>**e**<br>**r**<br>**-**<br>**r**<br>**e**<br>**p**<br>**r**<br>**e**<br>**s**<br>**e**<br>**n**<br>**t**<br>**e**<br>**d**<br>**g**<br>**r**<br>**o**<br>**u**<br>**p**<br>**s**<br>**a**<br>**c**<br>**r**<br>**o**<br>**s**<br>**s**<br>**o**<br>**u**<br>**r**<br>**l**<br>**e**<br>**a**<br>**d**<br>**e**<br>**r**<br>**s**<br>**h**<br>**i**<br>**p**<br>**.**<br>**–C**<br>**u**<br>**l**<br>**t**<br>**i**<br>**v**<br>**a**<br>**t**<br>**e**<br>**a**<br>**n**<br>**i**<br>**n**<br>**c**<br>**l**<br>**u**<br>**s**<br>**i**<br>**v**<br>**e**<br>**c**<br>**u**<br>**l**<br>**t**<br>**u**<br>**r**<br>**e**<br>**f**<br>**o**<br>**r**<br>**o**<br>**u**<br>**r**<br>**c**<br>**o**<br>**l**<br>**l**<br>**e**<br>**a**<br>**g**<br>**u**<br>**e**<br>**s,**<br>**o**<br>**w**<br>**n**<br>**e**<br>**r**<br>**s**<br>**a**<br>**n**<br>**d**<br>**s**<br>**u**<br>**p**<br>**p**<br>**l**<br>**i**<br>**e**<br>**r**<br>**s**<br>**.**<br>**–S**<br>**u**<br>**p**<br>**p**<br>**o**<br>**r**<br>**t**<br>**a**<br>**l**<br>**l**<br>**c**<br>**o**<br>**l**<br>**l**<br>**e**<br>**a**<br>**g**<br>**u**<br>**e**<br>**s**<br>**t**<br>**o**<br>**p**<br>**r**<br>**i**<br>**o**<br>**r**<br>**i**<br>**t**<br>**i**<br>**s**<br>**e**<br>**t**<br>**h**<br>**e**<br>**i**<br>**r**<br>**w**<br>**e**<br>**l**<br>**l**<br>**b**<br>**e**<br>**i**<br>**n**<br>**g**<br>**a**<br>**n**<br>**d**<br>**t**<br>**h**<br>**e**<br>**w**<br>**e**<br>**l**<br>**l**<br>**b**<br>**e**<br>**i**<br>**n**<br>**g**<br>**o**<br>**f**<br>**o**<br>**t**<br>**h**<br>**e**<br>**r**<br>**s**<br>**.**<br>**–D**<br>**r**<br>**i**<br>**v**<br>**e**<br>**r**<br>**e**<br>**s**<br>**p**<br>**e**<br>**c**<br>**t**<br>**f**<br>**o**<br>**r**<br>**a**<br>**n**<br>**d**<br>**a**<br>**d**<br>**v**<br>**a**<br>**n**<br>**c**<br>**e**<br>**h**<br>**u**<br>**m**<br>**a**<br>**n**<br>**r**<br>**i**<br>**g**<br>**h**<br>**t**<br>**s**<br>**.**<br>| **–Implement tools to reduce the water footprint of our hotels.**<br>**–Mitigate water risk through stakeholder collaboration to deliver** <br>**water stewardship at basin level.**<br>**–Collaborate to ensure adequate water, sanitation and hygiene** <br>**(WASH) conditions for our operating communities.** |  |
| | **–Implement tools to reduce the water footprint of our hotels.**<br>**–Mitigate water risk through stakeholder collaboration to deliver** <br>**water stewardship at basin level.**<br>**–Collaborate to ensure adequate water, sanitation and hygiene** <br>**(WASH) conditions for our operating communities.** | **Contributing** <br>**to the following** <br>**UN SDGs** |
| | **–Implement tools to reduce the water footprint of our hotels.**<br>**–Mitigate water risk through stakeholder collaboration to deliver** <br>**water stewardship at basin level.**<br>**–Collaborate to ensure adequate water, sanitation and hygiene** <br>**(WASH) conditions for our operating communities.** | **Contributing** <br>**to the following** <br>**UN SDGs** |
| | **–Implement tools to reduce the water footprint of our hotels.**<br>**–Mitigate water risk through stakeholder collaboration to deliver** <br>**water stewardship at basin level.**<br>**–Collaborate to ensure adequate water, sanitation and hygiene** <br>**(WASH) conditions for our operating communities.** | **Contributing** <br>**to the following** <br>**UN SDGs** |
| | **–Implement tools to reduce the water footprint of our hotels.**<br>**–Mitigate water risk through stakeholder collaboration to deliver** <br>**water stewardship at basin level.**<br>**–Collaborate to ensure adequate water, sanitation and hygiene** <br>**(WASH) conditions for our operating communities.** |  |
|  | **–Implement tools to reduce the water footprint of our hotels.**<br>**–Mitigate water risk through stakeholder collaboration to deliver** <br>**water stewardship at basin level.**<br>**–Collaborate to ensure adequate water, sanitation and hygiene** <br>**(WASH) conditions for our operating communities.** | |

---

**Water**

Running our hotels can require significant

volumes of water, so it's critical we

support them to use water efficiently,

particularly those hotels located in areas

experiencing high water stress or

drought risk.

Since 2019, we have been part of the UN

CEO Water Mandate, which represents

a commitment to six principles aimed at

mobilising business leaders around water,

sanitation and the UN SDGs. As part of

our involvement, we remained members

of the Water Resilience Coalition, which

seeks to prioritise global water stress on

the corporate agenda and preserve the

world's freshwater resources through

collaborative efforts.

**Mitigating water risks**

To assess water risks at all hotel

locations based on usage-to-supply

ratios, we use the World Resources

Institute Aqueduct Water Risk Atlas.

We disclose this information in

accordance with the Sustainability

Accounting Standards Board framework,

which includes details on water use

in regions facing extreme and high

water scarcity.

**Reducing water use**

We have continued to drive installation

of high-efficiency aerated showerheads

and taps across our hotels. Almost

95% of our managed, owned & leased

hotels this year have now adopted

these measures to reduce water use.

Our Greener Stay Initiative allows guests

to forgo daily housekeeping and reuse

linen and towels in return for IHG One

Rewards points, which helps to reduce

water and energy consumption.

This year we launched a new water

conservation guidebook for hotels in

both our Americas and EMEAA regions.

The guidebook provides advice

on establishing a culture of water

conservation within a hotel, as well

as understanding the utilities and

billing structure. The guidebook also

shares operational best practices

and enhancements that drive water

efficiency across different areas of

the hotel, encompassing: plumbing;

food and beverage; housekeeping

and laundry; pool and heating; and

cooling systems and landscaping.

![SDG_6.jpg](ihg-20251231_g191.jpg)

![SDG_11.jpg](ihg-20251231_g188.jpg)

![SDG_13.jpg](ihg-20251231_g192.jpg)

![SDG_17.jpg](ihg-20251231_g174.jpg)

In our Americas region, we have also

been developing resources, running

pilots and gathering case studies

on water-saving technologies to

support engagement with hotels.

In 2025, our water intensity

(m³ of water use per available room)

decreased by 1.7% compared with 2019.

We anticipate that as we implement

water efficiency brand standards

across our hotels, this improvement in

water efficiency will continue to grow.

For detailed water data, please refer

to page 7 of our 2025 ESG Databook.

At the local level, hotels across

our estate are also taking action

to conserve water and engage with

local conservation charities. For

more on the other ways we support

our communities, see page 68.

![RBR_water_image1.jpg](ihg-20251231_g193.jpg)

1<br>

![RBR_water_image1.jpg](ihg-20251231_g194.jpg)

---

| |
|:---|
| 1 |
| Our voco Brussels City North hotel <br>in Belgium has installed an innovative <br>system that collects and treats shower <br>water from guestrooms, helping the hotel <br>reduce water use and associated costs. |

---

---

| | | |
|:---|:---|:---|
| 74 | IHG | Annual Report and Form 20-F 2025 |

---

Being a responsible business continued<br>

**Our people**

**Our communities**

**Carbon and energy**

**Waste**

**Water**

![JourneyToTomorrow_White_COLOUR_CMYK.gif](ihg-20251231_g143.gif)

**How IHG is helping** 

**hotels reduce their** 

**environmental impact**

We are committed to working closely

with our owners, many of whom are

small business owners, to support their

efforts in reducing their environmental

impacts, decarbonising their properties

and improving operational efficiency.

Choosing to partner with IHG offers our

hotel owners access to the following tools

and resources to build their knowledge,

skills and awareness of ways to reduce

their hotel energy consumption and

reduce water and waste.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Tools and resources to help our owners** | **Tools and resources to help our owners** | **Tools and resources to help our owners** | **Tools and resources to help our owners** | **Tools and resources to help our owners** |
| **Environmental** <br>**management** <br>**platform and data** <br>**collection**<br>Every IHG hotel <br>has access to our <br>IHG Green Engage <br>system, which <br>enables hotel teams <br>to measure and <br>report energy, <br>water and waste <br>data. Hotels are <br>set annual energy <br>reduction targets, <br>and we continue <br>to invest in data <br>acquisition solutions, <br>including centralised <br>utility data feeds <br>developed with <br>specialist partners, <br>which send usage <br>data directly into <br>Green Engage to <br>improve accuracy <br>and strengthen <br>hotels' ability to <br>respond to client <br>information requests.<br>| **Energy and carbon** <br>**reduction training,** <br>**tools and incentives**<br>IHG provides <br>resources to help <br>hotels identify <br>and implement <br>energy-efficiency <br>measures. E-learning <br>modules outline <br>practical actions to <br>reduce consumption, <br>and the HERO tool <br>gives building-specific <br>recommendations for <br>energy conservation <br>measures, including <br>indicative costs, <br>savings and payback <br>periods, supported <br>by guides and case <br>studies. Hotels are <br>also supported to <br>identify financial <br>incentives, including <br>tax-incentive and <br>utility-rebate reports <br>in the Americas and <br>an 'energy-efficiency-<br>as-a-service' option <br>that finances and <br>installs energy <br>conservation measures <br>with shared savings. | **Water and waste** <br>**reduction** <br>**resources**<br>Food waste <br>training modules <br>and supporting <br>materials, such as <br>tracking tools and <br>surplus food rescue <br>guidance, help teams <br>apply practical steps <br>aligned with our <br>"Prevent, Donate, <br>Divert" approach. <br>Hotels in several <br>regions have access <br>to guidance to reduce <br>water use and <br>associated costs. <br>| **Helping** <br>**communicate** <br>**sustainability to** <br>**guests**<br>Hotels receive <br>practical support <br>to make their <br>sustainability work <br>visible to guests. <br>Resources include <br>support for achieving <br>green certifications, <br>with guidance on <br>requirements and <br>discounted fees <br>through partnerships <br>with Green Key and <br>Green Key Global. <br>Step-by-step <br>instructions help <br>hotels enrol in <br>Meeting for Good, <br>our sustainable <br>meetings <br>programme, and <br>communication <br>toolkits and an <br>online advisory <br>tool enable hotels <br>to communicate <br>initiatives confidently. <br>Engagement is <br>further reinforced <br>through networks <br>of hotel-based <br>champions.<br>| **Community** <br>**impact resources**<br>Hotels can draw <br>on a range of <br>practical resources <br>to deliver community <br>initiatives. These <br>include the Action <br>Against Hunger <br>partnership toolkit, <br>the Community <br>Tracker guide for <br>consistent reporting <br>of volunteering and <br>donations, and <br>"Activities in a Box" <br>materials that help <br>teams run impactful, <br>locally relevant <br>projects.<br>|
|  | **Energy and carbon** <br>**reduction training,** <br>**tools and incentives**<br>IHG provides <br>resources to help <br>hotels identify <br>and implement <br>energy-efficiency <br>measures. E-learning <br>modules outline <br>practical actions to <br>reduce consumption, <br>and the HERO tool <br>gives building-specific <br>recommendations for <br>energy conservation <br>measures, including <br>indicative costs, <br>savings and payback <br>periods, supported <br>by guides and case <br>studies. Hotels are <br>also supported to <br>identify financial <br>incentives, including <br>tax-incentive and <br>utility-rebate reports <br>in the Americas and <br>an 'energy-efficiency-<br>as-a-service' option <br>that finances and <br>installs energy <br>conservation measures <br>with shared savings. |  |  |  |

---

![Carbon_EnergyTraining_icon_v2.gif](ihg-20251231_g195.gif)

![CentralisedDataCollection_icon_v2.gif](ihg-20251231_g196.gif)

![EnergyReductionTool_icon_v2.gif](ihg-20251231_g197.gif)

![OnlineEnviroManPlatform_icon_v2.gif](ihg-20251231_g198.gif)

![Incentives_icon_v2.gif](ihg-20251231_g199.gif)

![Carbon_EnergyTraining_icon_v2.gif](ihg-20251231_g195.gif)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 75 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

2025 Transition Plan<br>

**Our ambition**

In 2021, we set an ambition to reduce

absolute Scope 1, 2, and 3 emissions

(including those from FERA and

franchised hotels) by 46% by 2030

from a 2019 base year. This target

received validation from the Science

Based Targets initiative (SBTi) to

align with climate science. Please

see the carbon and energy section

on page 70 for an overview of our

performance against this target.

**Reducing our emissions**

While programmes will take time to scale

and achieving our target relies on the

adoption of clean energy infrastructure

in many of our markets, actions are

underway to improve hotel operational

efficiency and position IHG for

accelerated decarbonisation when

market conditions allow. Since setting

our target, we have mapped what it

would take to achieve it, identified key

initiatives and focused on areas we can

control and influence.

**Integrating governance** 

**and performance**

Oversight sits with the Chief Sustainability

Officer, who reports to the Executive

Committee and the Responsible

Business Committee.

We embed accountability by integrating

annual energy reduction targets into hotel

performance, tailored by region, brand

and climate zone. These are supported by

compliance expectations and a focus on

verifiable data to strengthen transparency.

We also reinforce our commitments by

incorporating carbon measures into

the LTIP for Executive Directors and senior

leaders. Together, these elements create

a coherent approach that seeks to drive

meaningful change across the business.

**Our Transition Plan**

![OurTransitonPlan_bgrd_panel .gif](ihg-20251231_g200.gif)

**Short-term**

**Mid-term**

**2019**

**2030**

![](ihg-20251231_g201.gif)

**Plan**

**Act**

**Scale**

Primary <br>decarbonisation levers<br>

–Energy and carbon

modelling to identify

decarbonisation

pathways and that

integrate business

growth plans.

–Return on investment

analysis of energy

efficiency measures,

considering regional

market variations.

–Implementing energy conservation measures in

all existing and new-build hotels, prioritising those

requiring minimal resources or with a return on

investment under five years, supported by brand

standards, hotel-level energy metric and LTIP

remuneration targets for Executive Directors

and senior leaders.

–Investing in tools and training, such as the

HERO tool and the Green Engage platform,

to help owners with decarbonisation initiatives.

–Continue to

increase hotel

adoption of ECMs.

–Partner with

organisations that

can incentivise hotel

owners to adopt

ECMs with longer

payback periods.

Explore innovative

new ECMs and

adopt as and when

the technology

becomes available.

**1**

**Implementing** 

**energy efficiency** 

**measures in hotels**

–Develop a definition

of a very low or zero

operational carbon

building to guide

development of

future IHG hotels.

–Development of our Low Carbon Pioneers

programme to increase the number of hotels

that operate at very low or zero carbon to help

us test, learn and share findings on carbon

reduction measures.

–Test, learn and share

findings to promote

the wider adoption

of carbon reduction

practices, and

increase the number

of hotels operating

at very low or

zero carbon.

**2**

**Pioneering low-**

**carbon hotels**

–Understanding

availability of

renewable energy

at scale.

–Transitioning to renewable energy through

mechanisms such as green tariffs, community

solar and on-site renewable generation,

where commercially viable.

–Identifying financial mechanisms to support

widespread adoption of on-site and off-site

renewables.

–Scale access and

adoption of renewable

energy as markets

deregulate.

**3**

**Supporting hotels** 

**to source renewable** 

**energy**

---

| | | |
|:---|:---|:---|
| 76 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Being a responsible business continued |
| 2025 Transition Plan continued |

---

**The external landscape**

As a global leader in the hospitality

industry, IHG is committed to driving

sustainability and decarbonisation

efforts across our operations. Reducing

energy use and carbon emissions is

important to supporting our strategy,

enhancing resilience and meeting

the expectations of guests, investors

and wider stakeholders.

Our fee-based, asset-light business

model enables the rapid growth of our

hotel estate and delivers higher returns

with lower economic risk. However,

it also means we have limited direct

control over many of the emissions

generated across our business.

We engage owners and key external

stakeholders, supporting hotels to reduce

operational costs, improve performance

and meet evolving sustainability

expectations. This includes working with

industry bodies such as the World

Sustainable Hospitality Alliance (WSHA),

the Global Business Travel Association

(GBTA) and the World Travel & Tourism

Council (WTTC) to help shape shared

standards and accelerate decarbonisation

across the sector. For example, IHG has

supported the WSHA with developing the

industry's Pathway to Net Positive

Hospitality and tools for

measuring sustainability.

IHG is also a founding member of

the HARP, which aims to improve

supplier sustainability by fostering

collaboration with trading partners,

increasing transparency and

scaling positive impact across the

industry's value chains, underpinned

by appropriate governance and

compliance controls.

Many of the countries in which

we operate do not have national

net-zero policies, which are critical

for providing the infrastructure,

incentives and regulatory certainty

needed to support progress towards

our decarbonisation target. The key

external macro- and industry-level

factors influencing the pace at

which IHG can decarbonise are

outlined below.

---

| | | |
|:---|:---|:---|
| **Macro factors** | **Macro factors** | **Macro factors** |
| **Energy infrastructure**<br>Energy costs and electricity price <br>differentials influence how attractive <br>energy-efficiency improvements are, <br>and determine the viability speed and <br>payback period of hotel electrification. <br>Availability of renewable energy <br>sources and grid capacity for <br>clean energy adoption impact <br>decarbonisation.<br>| **National regulations**<br>National and local environmental <br>laws, taxes and standards can have <br>a significant impact on the pace <br>and scope of the achievement of <br>our carbon reduction commitments.<br>| **Economic outlook**<br>Spend by consumers on travel <br>continues to be an area of resilient <br>discretionary spending, and is <br>dependent on the global macro-<br>economic outlook. Hotel owners' <br>willingness to invest in initiatives <br>is impacted by growth conditions <br>in the global hotel industry.<br>|

---

---

| | | |
|:---|:---|:---|
| **Industry factors** | **Industry factors** | **Industry factors** |
| **High cost of retrofits**<br>Retrofitting buildings for energy <br>efficiency (such as through heating, <br>ventilation and air conditioning (HVAC), <br>lighting or insulation upgrades or on-<br>site renewable energy installations) <br>can be costly and disruptive, <br>slowing decarbonisation efforts.<br>| **Carbon accounting standards**<br>Current lack of clarity and confidence <br>in future carbon accounting and <br>certification rules, such as the use of <br>market-based solutions like Renewable <br>Energy Certificates, inhibits effective <br>business planning.<br>| **Employee turnover**<br>The hotel industry faces high employee <br>turnover, making it harder to maintain <br>consistent sustainability practices with <br>high levels of retraining required.<br>|

---

---

| | | |
|:---|:---|:---|
| **Value chain factors** | **Value chain factors** | **Value chain factors** |
| **Franchise business model**<br>Many hotel franchisees are small <br>business owners with limited resources <br>and access to credit, making it harder <br>to invest in costly decarbonisation <br>efforts. They might not face the same <br>regulatory or investor expectations <br>concerning carbon performance <br>as IHG does.<br>| **Owner investment decisions** <br>Even within the franchise model, the <br>pace of decarbonisation depends <br>heavily on whether individual property <br>owners choose to invest in energy <br>efficiency upgrades. These decisions <br>are influenced by local economics, <br>access to finance and competing <br>priorities, and IHG can only encourage <br>rather than mandate them.<br>| **Market demand**<br>Guest preferences for sustainable <br>practices and eco-friendly products <br>and services can impact the pace <br>at which a business decarbonises.<br>|

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 77 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Managing climate risks and opportunities<br>

---

| |
|:---|
| **Compliance with Listing Rule 6.6.6R(8)** |
| Our Task Force on Climate-related Financial Disclosures (TCFD) reporting <br>for 2025 is integrated into our Annual Report, and is consistent with the <br>Companies Act 2006 requirements s414CA and 414CB and the London <br>Stock Exchange Listing Rule 6.6.6R(8). This includes consistency with all <br>11 TCFD recommendations and with the Guidance for All Sectors.<br>The disclosures are supplemented by additional content within the <br>2025 ESG Databook. |

---

**Governance**

**Board oversight of climate-related** 

**risks and opportunities**

The Board retains ultimate responsibility

for the Group's strategy, including

decarbonisation, and ensures effective

controls and risk management systems

are in place. Management is accountable

for identifying and addressing climate-

related risks and opportunities, as well as

for delivering on climate targets. Climate-

related matters are reviewed quarterly

by the Board and its Committees, and are

embedded in annual strategy sessions,

risk reviews and budget planning. These

discussions include updates on progress

against carbon reduction commitments,

climate risks and opportunities, and

implications for financial resilience and

capital allocation, where applicable.

In line with best practice, the

performance and effectiveness of the

Board and its Committees are carefully

reviewed each year through a formal

evaluation process. The Board's

overall effectiveness considers Board

composition, including knowledge,

experience and competencies, and

succession planning (see page 127).

Details of Board and Committee

membership and attendance for 2025

are provided on page 117. Individual

Board reports, outlining key duties,

Committee roles, focus areas and

activities during the year, can be found

on pages 128 to 139. We recognise the

importance of stakeholder perspectives

in Board decision-making, and further

information on how Directors have

had regard to these, is provided in the

Section 172 statement (pages 124 to 125)

and in our stakeholder engagement

disclosures (pages 44 to 45).

Climate-related responsibilities are

integrated across all Board Committees:

**–Audit Committee:** Oversees

climate-related risks as part of the

annual risk cycle, monitors assurance

and data integrity for financial

and non-financial disclosures and

considers the potential impact of

climate change on financial position.

**–Responsible Business Committee:** 

Advises on responsible business

strategy, including climate change,

and monitors progress against

our Journey to Tomorrow goals

and Transition Plan. Provides

recommendations and reports on

carbon-related LTIP measures to

the Remuneration Committee.

**–Remuneration Committee:** Embeds

climate accountability at senior levels

through LTIP measures linked to

carbon targets.

**–Nomination Committee:** In line with

UK corporate governance principles,

the Committee reviews the composition

of the Board and its Principal

Committees, evaluating the balance

of skills, experience, independence

and knowledge.

**Management's role in assessing** 

**and managing climate-related risks** 

**and opportunities**

IHG's governance structure embeds

climate-related risks and opportunities,

including decarbonisation as a key

mitigation strategy, into strategic

planning and risk management

processes.

**–Executive Committee:** Holds overall

responsibility for managing climate-

related risks and opportunities within

IHG's strategic objectives and risk

framework, including oversight

of our decarbonisation strategy.

Accountability is reinforced through

Executive Committee Sponsors,

the CFO and EVP of Global Corporate

Affairs, who sponsor the principal

risk relating to climate change,

receive updates twice a year and

report to the Board as required.

**–ESG Risk & Reporting Steering** 

**Committee:** Senior leaders from

finance, legal, risk and corporate

responsibility oversee identification

and assessment of climate-related

risks and opportunities, integrate

scenario analysis into planning and

monitor progress against climate

risk objectives. The Committee

meets quarterly and reports to the

Executive Committee as needed.

**–Regional Environment Steering** 

**Committees:** These committees tailor

decarbonisation and environmental

strategies to regional contexts and

oversee implementation across

operations. They meet quarterly.

**Strategy**

IHG's long-term success relies on

the sustainability of our operations,

the resilience of our supply chain and

effective management of risks that

could impact our business model and

performance, including those related

to climate change. As a major global

hospitality company, we recognise the

important role we play in addressing

climate-related impacts.

**Overview of climate-related** 

**risks and opportunities**

IHG has identified a range of climate-

related risks and opportunities across

short-, medium- and long-term horizons

that could potentially have a material

impact on IHG. Key risks include transition

risks associated with decarbonisation

expectations and changing consumer

preferences, as well as physical risks

from acute weather events and chronic

changes in climate patterns. Potential

opportunities include enhancing

operational efficiency, strengthening

reputation and providing carbon

efficient hotels aligned with a low-

carbon economy. See table on page

79 to 80 for more details on these

risks and opportunities.

---

| | | |
|:---|:---|:---|
| 78 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Being a responsible business continued |
| Managing climate risks and opportunities continued |

---

To determine which climate-related risks

and opportunities could have a material

financial impact on IHG, we follow a

process aligned with our principal risk

management framework (see pages

46 to 48 for more details). This includes:

1. horizon scanning of regulatory

trends, stakeholder expectations

and market developments;

2. financial materiality screening, which

constitutes a holistic assessment

based on the potential impact across

the following parameters: operating

profit impact, reputational impact,

operational impact, and impact to

investment-grade credit rating; and

3. regular review and governance

oversight, with updates provided

to senior leadership and the

Board as part of our principal

risk reporting cycle.

This process ensures that climate-

related risks and opportunities are

prioritised based on their likelihood,

potential impact and relevance

to IHG's long-term value creation.

**Impacts of climate-related** 

**risks and opportunities** 

Climate-related risks and opportunities

could affect IHG's business model,

strategic priorities and financial planning,

if unmitigated. Transition risks may impact

reputation, and operational efficiency,

while physical risks could disrupt hotel

operations, supply chains and resource

availability. These factors could influence

long term shareholder value, requiring

ongoing adaptation of our strategy,

investment in decarbonisation and

mitigation measures, and integration

into capital allocation.

Based on current analysis, these risks

are not assessed as material to IHG's

financial performance at present;

however, they could become material

over the long-term if unmitigated. We

recognise that certainty over the scale

and timing of these impacts is inherently

challenging, and therefore integrate

these considerations into our strategic

planning and risk management.

Our management strategies aim to

proactively address these risks and

opportunities as circumstances evolve.

To see how IHG integrates this information

into key decision making, see 'Integration

into overall risk management' on page 81

and 'Management of climate-related

risks and opportunities' on page 80.

Given our asset-light model, we believe

our strategic approach is well suited to

address these challenges and maximise

associated opportunities. 'Care for

our people, communities and planet'

is one of IHG's four key strategic pillars

and is delivered through our Journey

to Tomorrow responsible business plan.

Within this, our Transition Plan (see

pages 75 to 76) sets out practical actions

to advance our decarbonisation goals,

including improving energy efficiency,

supporting hotels to source renewable

energy and expanding our Low Carbon

Pioneers programme. It also recognises

external challenges, such as evolving

regulations, market dynamics and

infrastructure availability, that influence

the pace at which we can achieve

our targets. For 2025 performance

and progress against the target,

see pages 70 to 71.

**Resilience of IHG's strategy to** 

**climate-related risks and opportunities**

IHG's strategy is tested for resilience

under a range of climate scenarios.

In accordance with TCFD

recommendations, we've assessed

climate risks and opportunities against

(1) transition risks: related to the transition

to a low-carbon economy, and (2) physical

risks: related to the physical impacts

of climate change in our three regions

(Americas, EMEAA and Greater China).

To assess potential transition impacts,

we have used the International Institute

for Applied Systems Analysis' Shared

Socioeconomic Pathways to capture how

societal, economic and technological

trends could evolve under three selected

temperature rise scenarios.

---

| | |
|:---|:---|
| Climate risk time horizons | Description |
| Short (1–5 years) | Our short-term horizon encompasses our financial going <br>concern and viability statement assessments, along <br>with our budget-setting timeline. Our hotel energy <br>performance targets are also aligned to this timeframe.<br>|
| Medium (6–15 years) | Our medium-term time horizon reflects the Group <br>Long Range Plan time horizon from a strategic <br>planning perspective.<br>|
| Long (16–30 years) | A long-term time horizon of up to 30 years aligns with <br>national government policy and regulatory timeframes: <br>For example, the UK's 2050 net-zero target and global <br>climate agreements. It also reflects the longer-term <br>nature of the contracts we sign with our owners.<br>|

---

To assess potential physical impacts,

we have aligned the temperature

rise scenarios in our analysis with the

Intergovernmental Panel on Climate

Change's 1.5°C, 2°C and 4°C aligned

Representative Concentration Pathways

(RCPs) 2.6, 4.5 and 8.5, respectively.

These scenarios were selected to

capture a range of plausible futures,

from ambitious global decarbonisation

(1.5°C and 2°C) to higher physical

climate risk (4°C), enabling IHG to

assess the resilience of its strategy

under both transition and physical

risk conditions relevant to our

global operations and stakeholder

expectations. The analysis uses the

same boundaries, definitions and

calculation methods as our GHG

reporting methodology (see page 83),

ensuring assumptions and estimates

are consistent, transparent and

based on verified data.

Our strategy is designed to remain

resilient under both transition and

physical risks, with adaptive measures

and ongoing review ensuring we can

respond effectively to a 2°C-or-lower

scenario and to increased physical

climate-related risks. See the table on

pages 79-80 for more details on how

we build resilience to address each

climate-related risk and opportunity.

We have considered these over

the short, medium and long term.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 79 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**IHG's climate-related risks and opportunities, if unmitigated**

---

| | |
|:---|:---|
| Unmitigated potential risks <br>and opportunities | IHG's risk management and strategic <br>response to build business resilience<br>|
| **Risk/opportunity 1:**<br>**IHG's ability to decarbonise in line with stakeholder expectations**<br>Potential short-term (1–5 years) impact under a 1.5°C scenario, if unmitigated | **Risk/opportunity 1:**<br>**IHG's ability to decarbonise in line with stakeholder expectations**<br>Potential short-term (1–5 years) impact under a 1.5°C scenario, if unmitigated |
| Failure to decarbonise in line with stakeholder expectations could <br>create reputational risk, especially under a 1.5°C scenario, and <br>extend into the medium/long term if progress lags competitors. <br>Under a 4°C scenario, the reputational risk diminishes as broader <br>failure to meet targets becomes more common.<br>**Market:** Stakeholder perceptions may influence investor decisions, <br>potentially impacting our inclusion in sustainability indices and therefore <br>overall attractiveness to investors, and access to certain financing. <br>It's possible that some franchisees might be less willing to partner <br>with us, which could lead to lower system growth over the long term.<br>Based on current investor feedback, and performance in sustainability <br>indices, we are not seeing a material reputational impact at the <br>Group level. However, we continue to listen closely to owners and <br>operational teams to understand how this risk may manifest in our <br>communities at a regional or local level, and take appropriate <br>action to mitigate its impact.<br>**Policy and legal:** The ability of governments to implement policies <br>and plans to implement their climate commitments significantly <br>influences the pace at which IHG can decarbonise.<br>Current regulatory frameworks are not fully aligned to support <br>business decarbonisation, which is negatively impacting progress <br>against our target. Given this is outside our direct control, we are <br>not seeing it result in a negative reputational impact for our business, <br>but we remain committed to supporting hotel owners in reducing <br>energy consumption and carbon emissions, and continue to <br>engage with policymakers and industry partners to help drive <br>alignment and accelerate progress.  | By taking action to decarbonise and reduce our environmental <br>impact, we help our hotel owners manage rising operational costs, <br>create more secure supply chains and reduce financial risks <br>linked to climate change, while strengthening IHG's reputation. <br>Our predominantly asset-light business model means that the <br>majority of our hotels are owned by third parties, so we work <br>closely with hotel owners and their teams to lower energy use <br>and carbon emissions. These efforts are embedded within <br>IHG's strategic priority to 'Care for our people, communities <br>and planet'.<br>We actively engage with our stakeholders, maintain transparency <br>in our reporting and provide a wide range of resources, guidance <br>and training to support our hotels in reducing their carbon <br>emissions. Our programmes will require time to scale, the actions <br>we are taking today will improve operational efficiency of our <br>buildings and prepare us for accelerated decarbonisation once <br>local market factors, such as renewable energy support for <br>electricity grids, are more favourable. We continue to track <br>stakeholder perceptions in this area. <br>|
| **Risk/opportunity 2:**<br>**Changing consumer preferences towards sustainable travel**<br>Potential short-term (1–5 years) impact under a 1.5°C scenario, if unmitigated | **Risk/opportunity 2:**<br>**Changing consumer preferences towards sustainable travel**<br>Potential short-term (1–5 years) impact under a 1.5°C scenario, if unmitigated |
| **Market:** Growing demand for sustainable travel could affect IHG's <br>financial performance positively or negatively, depending on our <br>ability to adapt. The impact is likely greater under a 1.5°C scenario, <br>which assumes faster, stricter decarbonisation measures and <br>stronger consumer expectations and regulatory pressure than <br>2°C or 4°C pathways.<br>Our analysis of potential financial impacts considers how travel <br>behaviour could change across different business segments. <br>It indicates that our corporate customer segment may be most <br>exposed if business travel is included in customer carbon reduction <br>targets. Using publicly available data, we modelled how demand for <br>business travel could be affected under different climate pathways, <br>based on the carbon reduction commitments of companies that use <br>our hotels. While this is a useful indicator, we cannot form a direct <br>correlation to future travel behaviour as sustainability is one of many <br>factors that influence travel decisions, and it is not possible to isolate <br>the impact that each one has individually. We do not have sufficient <br>evidence to suggest that corporate clients are actively reducing <br>travel in a meaningful way to meet emissions goals, and it is not yet <br>clear what role carbon offsets will play in individual strategies. Given <br>IHG's asset-light, fee-based business model, we do not see a material <br>impact from this risk at the Group level at present. We will continue <br>to monitor this risk as market behaviours and regulations evolve.  | Understanding guest preferences and expectations is central <br>to IHG's long-term success. To meet evolving expectations for <br>sustainable travel, we are committed to reducing the environmental <br>impact of our hotels by providing training, tools and resources, <br>alongside fostering innovation through cross-industry partnerships. <br>We work closely with owners to ensure guests are informed about <br>sustainability initiatives and can make choices that align with their <br>values. In 2025 we continued to expand our Low Carbon Pioneers <br>programme, promoted our Greener Stay initiative, supported <br>hotels with third-party sustainability certifications and advanced <br>our award-winning Meeting for Good programme to address <br>demand for sustainable options. We track corporate customer <br>requests for sustainability related information. <br>We acknowledge the need to analyse other components of <br>this risk to determine its overall materiality, including corporate <br>and leisure consumer preferences for sustainable stays. While <br>we cannot discount the risk of leisure travellers making more <br>sustainable travel choices, there is currently insufficient evidence <br>to suggest that this is a significant factor in decision-making. <br>As more external data becomes available, we will explore other <br>components of this risk and continue to refine our assumptions <br>and modelling of the medium- and long-term risk.<br>|

---

---

| | |
|:---|:---|
| **+** | Our decarbonisation strategy and Transition Plan, <br>outlined on pages 75 to 76, detail our actions, <br>dependencies and progress towards our <br>decarbonisation target. |
|  | Our decarbonisation strategy and Transition Plan, <br>outlined on pages 75 to 76, detail our actions, <br>dependencies and progress towards our <br>decarbonisation target. |
|  | Our decarbonisation strategy and Transition Plan, <br>outlined on pages 75 to 76, detail our actions, <br>dependencies and progress towards our <br>decarbonisation target. |
|  | Our decarbonisation strategy and Transition Plan, <br>outlined on pages 75 to 76, detail our actions, <br>dependencies and progress towards our <br>decarbonisation target. |

---

---

| | |
|:---|:---|
| **+** | See page 71 for more on our <br>Low Carbon Pioneer programme. |
|  | See page 71 for more on our <br>Low Carbon Pioneer programme. |

---

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| | | |
|:---|:---|:---|
| 80 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Being a responsible business continued |
| Managing climate risks and opportunities continued |

---

---

| | |
|:---|:---|
| Unmitigated potential risks <br>and opportunities | IHG's risk management and strategic <br>response to build business resilience<br>|
| **Risk 3:**<br>**Increased frequency and severity of extreme weather events**<br>Potential long-term (16–30 years) impact under a 2°C and 4°C scenario, if unmitigated | **Risk 3:**<br>**Increased frequency and severity of extreme weather events**<br>Potential long-term (16–30 years) impact under a 2°C and 4°C scenario, if unmitigated |
| **Acute:** Rising global temperatures and the resulting increase <br>in the frequency and severity of extreme weather events creates an <br>inherent risk of disruption to IHG hotel operations, worsening under <br>a 4°C scenario. Disruptions from such events could impact hotel <br>revenues (and the fee income received by IHG), potentially reducing <br>the appeal of the hotel industry to owners in specific locations. <br>Additionally, IHG may face reputational risks if we do not respond <br>effectively to these events or provide adequate support to affected <br>owners and communities.<br>In 2025, we completed further analysis to understand how certain <br>acute physical risks might change in the future and how they could <br>impact our operations. Hotel-level analysis indicates that there <br>could be significant increases in incidences of severe storms <br>in the US, China and Southeast Asia by 2050. While these could <br>impact revenue and owner returns at individual hotels, our <br>preliminary financial analysis to date suggests that our asset-light <br>franchise model and global footprint means that, on an aggregated <br>basis, this risk is unlikely to have a material financial impact to <br>IHG at the Group level. | We are proud to support our communities in times of need. <br>With the increasing impacts of climate change being felt globally, <br>we continue to work with humanitarian aid partners to assist <br>with relief and recovery efforts. Our enterprise-wide approach <br>to business resilience planning includes identifying risks, ensuring <br>readiness, responding effectively and facilitating recovery from <br>operational disruptions. We support hotels and surrounding <br>communities in the aftermath of natural disasters through our <br>humanitarian aid partners, the Disaster Colleague Assistance <br>Fund and natural disaster guides. We also track in-year trading <br>impacts from extreme weather events to inform planning <br>and response. <br>|
| **Risk 4:**<br>**Significant changes in long-term weather patterns**<br>Potential long-term (16–30 years) impact under a 2°C and 4°C scenario, if unmitigated | **Risk 4:**<br>**Significant changes in long-term weather patterns**<br>Potential long-term (16–30 years) impact under a 2°C and 4°C scenario, if unmitigated |
| **Chronic:** As global temperatures rise, chronic physical risks, such <br>as persistent changes in weather patterns, are expected to intensify, <br>particularly under higher temperature scenarios. These changes <br>could lead to higher operating costs for hotel owners, shifts in <br>customer travel patterns and disruptions in resource availability <br>due to population migration and supply chain disruption.<br>In 2025 we updated our analysis to improve our understanding <br>of the significance of this chronic risk. We have focused on the <br>potential impact of long-term temperature change on energy usage <br>in hotels through increased and/or cooling demands. Our analysis <br>identified that IHG's hotel locations are more exposed to long-term <br>persistent chronic climate risks than to short-term acute shocks. <br>Significant risks include heat stress in Southeast Asia, the UAE, <br>China and India, and water stress in regions such as the US, China, <br>Australia, Mexico and Saudi Arabia. Extreme temperature, prolonged <br>heatwaves and heavy rainfall are expected to increase under a <br>4°C scenario (RCP 8.5) to 2030 and 2050. While this could impact <br>revenue and owner returns at individual hotels, our financial analysis <br>to date suggests that our asset-light franchise model and global <br>footprint means that, on an aggregated basis, this risk is unlikely <br>to have a material financial impact to IHG at the Group level. | We support our hotel owners in implementing efficient building <br>practices, including energy and water efficiency and the use of <br>renewable energy sources, to reduce reliance on resources and <br>strengthen hotel resilience. In water management, we guide owners <br>on adhering to brand standards for efficiency, such as installing <br>low-flow fixtures. In drought-affected areas, hotels are bound <br>by local water restrictions, with examples of hotels implementing <br>desalination and working with local conservation charities <br>and communities.<br>We monitor and report on water withdrawal in water-stressed areas, <br>and our regional teams incorporate their understanding of local <br>water stress into hotel engagement, using these insights to tailor <br>water-conservation guidance and help properties respond to <br>associated water-management challenges.<br>|

---

**Risk management**

**Identifying and assessing IHG's** 

**climate-related risks and opportunities**

We identify climate-related risks

and opportunities through regular

horizon scanning of regulatory trends,

stakeholder engagement, benchmarking

against peers and scenario analysis.

Risks are assessed for their potential

to materially affect IHG's revenue,

costs or reputation across short-,

medium- and long-term horizons.

---

| | |
|:---|:---|
| **+** | For more information on our disaster <br>response efforts, see page 69. |
|  | For more information on our disaster <br>response efforts, see page 69. |

---

---

| | |
|:---|:---|
| **+** | See pages 73 for more details on our <br>Journey to Tomorrow water commitments <br>and 2025 ESG Databook for water data. |
|  | See pages 73 for more details on our <br>Journey to Tomorrow water commitments <br>and 2025 ESG Databook for water data. |
|  | See pages 73 for more details on our <br>Journey to Tomorrow water commitments <br>and 2025 ESG Databook for water data. |

---

Climate risks are assessed using the

same criteria as other enterprise risks,

with definitions aligned to our enterprise

risk management standards. A key

part of this process is determining

their relative significance compared

to other principal risks, including

consideration of existing and

emerging regulatory requirements.

**Management of climate-related** 

**risks and opportunities**

We manage climate-related risks through

mitigation (e.g., decarbonisation initiatives,

operational efficiency improvements),

transfer (e.g., insurance), acceptance

(where risks are immaterial or unavoidable),

and control (e.g., regulatory compliance).

Decisions on whether to mitigate, transfer,

accept or control climate-related risks

are informed by scenario analysis and

financial materiality screening, considering

potential impacts on revenue, costs

and operations across short-, medium-

and long-term horizons. Both transition

risks (such as regulatory changes

and carbon pricing) and physical risks

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 81 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

(such as extreme weather and

chronic climate shifts) are assessed

using consistent criteria within our risk

management framework. Prioritisation

considers likelihood, potential financial

impact and strategic relevance,

with oversight by the ESG Risk &

Reporting Committee.

We continually review these risks and

update our assessment as circumstances

evolve to ensure effective management.

**Integration into overall** 

**risk management**

Climate change is one of IHG's 10

principal risks, and our processes for

identifying, assessing and managing

these risks are fully integrated into our

principal risk management framework.

This ensures climate risks are considered

alongside other principal risks in

strategic planning, capital allocation

and operational decisions.

Oversight of this process rests with the

Executive Committee and the Board.

Risk reviews are conducted by the

Executive Committee and management

teams, supported by our Risk and

Assurance team, which holds regular

meetings with leaders responsible for

assessing and managing risks. These

discussions consider uncertainties

such as the effect of climate change

on hospitality and steps being taken

to reduce exposure. We also regularly

review and update our risk management

processes to reflect emerging best

practices, regulatory developments

and stakeholder expectations.

Pages 79 and 80 outline our current

management response to the four

potentially material climate risks and

opportunities. See page 193 for critical

accounting policies and the use of

judgements, estimates and assumptions

regarding climate change. See the

forward-looking statements on

**Metrics and targets**

To help us manage our climate-related

risks and opportunities, we have

developed metrics and targets in line

with TCFD recommended disclosures.

Where determination of supplemental

metrics and targets are still in progress,

or we do not consider the category

to be relevant to IHG, we have

provided details.

**GHG emissions and** 

**progress against SBT**

IHG has a Science Based Targets

initiative (SBTi)-approved carbon

reduction target, with GHG emissions

performance reported as a key

KPI within this Annual Report (see

page 43). We use our carbon footprint –

calculated as absolute GHG emissions

using the GHG Protocol Corporate

Accounting and Reporting Standard –

to track progress against this target

and our decarbonisation strategy

(see pages 70 to 71 for details of the

target and progress). Our Transition Plan

on pages 75 and 76 outlines the actions,

challenges and dependencies involved

in meeting this target.

---

| | |
|:---|:---|
| **+** | A breakdown of our GHG emissions, <br>intensity metrics and methodology <br>can be found on pages 82 and 83 in <br>our Streamlined Energy and Carbon <br>Reporting (SECR). |
|  | A breakdown of our GHG emissions, <br>intensity metrics and methodology <br>can be found on pages 82 and 83 in <br>our Streamlined Energy and Carbon <br>Reporting (SECR). |
|  | A breakdown of our GHG emissions, <br>intensity metrics and methodology <br>can be found on pages 82 and 83 in <br>our Streamlined Energy and Carbon <br>Reporting (SECR). |
|  | A breakdown of our GHG emissions, <br>intensity metrics and methodology <br>can be found on pages 82 and 83 in <br>our Streamlined Energy and Carbon <br>Reporting (SECR). |
|  | A breakdown of our GHG emissions, <br>intensity metrics and methodology <br>can be found on pages 82 and 83 in <br>our Streamlined Energy and Carbon <br>Reporting (SECR). |

---

**Remuneration**

To support our broader growth strategy,

as well as our decarbonisation strategy

and transition opportunities, we have

embedded carbon-related metrics that

focus on supporting owners to reduce

energy costs and drive better hotel

performance into executive remuneration

under the Directors' Remuneration Policy.

Our Executive Directors and other senior

leaders LTIP include targets relating to the

integration of ECMs into brand standards

across new-build and existing hotels.

We track these measures during the

cycle, and we report on achievement

in our Directors' Remuneration Report

at the end of each cycle.

---

| | |
|:---|:---|
| **+** | Remuneration Policy see [ihgplc.com/](ihgplc.com/investors/corporate-governance/directors-remuneration-policy)<br>[investors/corporate-governance/](ihgplc.com/investors/corporate-governance/directors-remuneration-policy)<br>[directors-remuneration-policy](ihgplc.com/investors/corporate-governance/directors-remuneration-policy) |
|  | Remuneration Policy see [ihgplc.com/](ihgplc.com/investors/corporate-governance/directors-remuneration-policy)<br>[investors/corporate-governance/](ihgplc.com/investors/corporate-governance/directors-remuneration-policy)<br>[directors-remuneration-policy](ihgplc.com/investors/corporate-governance/directors-remuneration-policy) |
|  | Remuneration Policy see [ihgplc.com/](ihgplc.com/investors/corporate-governance/directors-remuneration-policy)<br>[investors/corporate-governance/](ihgplc.com/investors/corporate-governance/directors-remuneration-policy)<br>[directors-remuneration-policy](ihgplc.com/investors/corporate-governance/directors-remuneration-policy) |

---

---

| | |
|:---|:---|
| **+** | See pages 138 to 161 for more on <br>our Directors' Remuneration Report. |
|  | See pages 138 to 161 for more on <br>our Directors' Remuneration Report. |

---

**Capital deployment**

Given the asset-light nature of our

business model, we do not consider IHG

capital deployment to be a material lever

for managing our climate-related risks

and opportunities, or for implementing

our Transition Plan. For our owned &

leased hotels, costs for energy efficiency

and carbon reduction are factored into

our five-year capital plan.

**Internal carbon pricing**

Given that a large portion of our

emissions stem from our franchised

hotels, where our control is limited,

we have determined that a conventional

internal carbon price would not be

the most impactful decarbonisation

mechanism. Consequently, our efforts

are directed toward more suitable

mechanisms, as outlined in our

Transition Plan on pages 75 to 76.

**External carbon price**

Our revenue-based fee structure

largely insulates us from exposure to

carbon pricing legislation. However,

we recognise that hotel owners may

bear a substantial proportion of any

potential carbon costs. To help maintain

the long-term appeal of their hotels

as investments, we actively support

them in decarbonisation efforts.

**Transition risk and opportunities**

We track the year-on-year performance

of our GHG emissions as our key metric

and manage these risks using our

carbon reduction target and associated

decarbonisation strategy as outlined on

pages 75 and 76 of our Transition Plan.

We also use bespoke hotel-level energy

reduction metrics and targets, as well

as our remuneration targets, to drive

the uptake of ECMs across our hotels.

Other environmental indicators help

us to assess our performance against

peers, including energy, renewables

and water and waste data.

As our risk profile evolves, we will

review and adapt our metrics to ensure

they remain relevant and effective in

monitoring and managing climate-related

risks and opportunities. Any new metrics

will be disclosed when appropriate.

---

| | |
|:---|:---|
| **+** | See our environmental performance <br>data in our 2025 ESG Databook on <br>the IHG plc website. |
|  | See our environmental performance <br>data in our 2025 ESG Databook on <br>the IHG plc website. |
|  | See our environmental performance <br>data in our 2025 ESG Databook on <br>the IHG plc website. |

---

**Physical risks**

We have conducted detailed analysis of

acute and chronic physical climate risks

across IHG's hotel portfolio, including

hotel-level modelling of future extreme

weather events and long-term climate

shifts. We track operational impacts

from severe weather, and our financial

analysis indicates these risks are

not currently material at Group level,

but we continue to refine our metrics

and monitoring processes.

---

| | |
|:---|:---|
| **+** | See risk table on page 80 for details of <br>the physical risks IHG is most exposed to. |
|  | See risk table on page 80 for details of <br>the physical risks IHG is most exposed to. |

---

---

| | | |
|:---|:---|:---|
| 82 | IHG | Annual Report and Form 20-F 2025 |

---

Streamlined Energy and Carbon Reporting (SECR)<br>

The following table shows our annual

GHG performance and accounts

for both our GHG emissions and

energy use in the UK and globally,

in accordance with the Streamlined

Energy and Carbon Reporting

(SECR) requirements.

Every IHG hotel is required to report

their monthly energy consumption,

and each one is assigned an annual

energy reduction target, which is

integrated into hotel-level metrics

and key performance indicators.

This year, we celebrated one

year of our Low Carbon Pioneers

programme, an industry-first initiative

that brings together energy-efficient

hotels that do not combust fossil fuels

on site and are backed by renewable

energy. We continued to embed energy

efficiency measures into our brand

standards in areas such as kitchens,

heating and cooling, and swimming

pools.

More details of our global actions to

reduce carbon and energy can be found

in our Transition Plan on pages 75 to 76

alongside our carbon performance.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Global energy use (MWh)<sup>a</sup> | Global energy use (MWh)<sup>a</sup> | 2025 | 2024 | 2019 |
| Global energy use (MWh)<sup>a</sup> | Global energy use (MWh)<sup>a</sup> |  |  |  |
| Managed and owned <br>& leased hotels and <br>corporate offices | Fuel from boilers, furnaces and generators  | 1910881 | 1967349 | 1845772 |
| Managed and owned <br>& leased hotels and <br>corporate offices | Electricity, heat steam and cooling <br>(from non-renewable sources)<br>| 4578687 | 4499587 | 3703294 |
| Managed and owned <br>& leased hotels and <br>corporate offices | Validated renewable electricity<sup>b</sup> | 127372 | 38580 | 5114 |
| Franchised hotels | Fuel from boilers, furnaces and generators | 3398480 | 3381307 | 3521279 |
| Franchised hotels | Electricity, heat steam and cooling <br>(from non-renewable sources)<br>| 5626020 | 5443206 | 5292981 |
| Franchised hotels | Validated renewable electricity<sup>b</sup> | 12944 | 8324 | 2367 |
| Global | Total energy use | 15654384 | 15338353 | 14370807 |
| UK energy consumption |  | 616052 | 609292 | 684588 |

---

a.Figures are restated annually (see page 83 for our restatement methodology). 2025 updates include incorporation of historic data from all conversion

properties opened after 2019, some of which had previously been excluded, a correction to the available-room denominator used in intensity metrics,

and updates to fuel to energy conversions. Performance trends should be assessed using only the restated figures in this report, rather than figures

from previous reports. Our underlying methodology remains unchanged.

b.Renewable energy purchased or generated by hotels or corporate offices which have provided evidence of a Renewable Energy Certificate.

Note: renewable energy use from hotels that do not provide evidence will not be accounted for as renewable.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Global GHG emissions (tCO2e)<sup>a</sup> | Global GHG emissions (tCO2e)<sup>a</sup> | Global GHG emissions (tCO2e)<sup>a</sup> | 2025 | 2024 | 2019 (baseline) |
| Global GHG emissions (tCO2e)<sup>a</sup> | Global GHG emissions (tCO2e)<sup>a</sup> | Global GHG emissions (tCO2e)<sup>a</sup> |  |  |  |
| Managed and owned <br>& leased hotels and <br>corporate offices | Scope 1 (fuel from boilers, furnaces and generators) | Scope 1 (fuel from boilers, furnaces and generators) | 412325 | 430458 | 408063 |
| Managed and owned <br>& leased hotels and <br>corporate offices | Scope 2 (electricity, heat, steam <br>and cooling)<br>| market-based | 2207061 | 2125689 | 1885864 |
| Managed and owned <br>& leased hotels and <br>corporate offices | Scope 2 (electricity, heat, steam <br>and cooling)<br>| location-based | 2199728 | 2111563 | 1879253 |
| Managed and owned <br>& leased hotels and <br>corporate offices | Scope 3 FERA (fuel and energy-related activities) | Scope 3 FERA (fuel and energy-related activities) | 598128 | 581817 | 503267 |
| Franchised hotels | Scope 3 Franchise | Scope 3 Franchise | 2913383 | 2855817 | 2846396 |
| Franchised hotels | Scope 3 Franchise FERA | Scope 3 Franchise FERA | 592662 | 577542 | 601482 |
| Global | Total market-based GHG emissions | Total market-based GHG emissions | 6723559 | 6571323 | 6245072 |
| UK share of Scope <br>1 & 2 emissions<br>|  |  | 10839 | 7745 | 17619 |

---

a.Figures are restated annually (see page 83 for our restatement methodology). 2025 updates include incorporation of historic data from all conversion

properties opened after 2019, some of which had previously been excluded, a correction to the available-room denominator used in intensity metrics,

and updates to fuel to energy conversions. Performance trends should be assessed using only the restated figures in this report, rather than figures

from previous reports. Our underlying methodology remains unchanged.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 83 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Global GHG intensity metrics (tCO2e)<sup>a</sup> | Global GHG intensity metrics (tCO2e)<sup>a</sup> | 2025 | 2024 | 2019 |
| Global GHG intensity metrics (tCO2e)<sup>a</sup> | Global GHG intensity metrics (tCO2e)<sup>a</sup> |  |  |  |
| Managed and owned <br>& leased hotels and <br>corporate offices | Total gross revenue ($bn)<sup>b</sup> | 13.0 | 12.2 | 12.0 |
| Managed and owned <br>& leased hotels and <br>corporate offices | Scope 1 + 2 (market-based) emissions per $1,000 <br>of total gross revenue<sup>b</sup><br>| 0.2015 | 0.2095 | 0.1912 |
| Managed and owned <br>& leased hotels and <br>corporate offices | Scope 1 + 2 (market-based) emissions per available <br>room night<br>| 0.0258 | 0.0262 | 0.0297 |
| Franchised hotels<sup>c</sup> | Scope 3 Franchise emissions per available room night | 0.0112 | 0.0112 | 0.0128 |
| Global<sup>d</sup> | Total GHG emissions per available room night | 0.0186 | 0.0187 | 0.0209 |

---

a.Figures are restated annually (see page 83 for our restatement methodology). 2025 updates include incorporation of historic data from all conversion

properties opened after 2019, some of which had previously been excluded, a correction to the available-room denominator used in intensity metrics,

and updates to fuel to energy conversions. Performance trends should be assessed using only the restated figures in this report, rather than figures

from previous reports. Our underlying methodology remains unchanged.

b.Denominator is total gross revenue (TGR) associated with our managed hotels and owned & leased hotels only (figure also provided on page 91).

c.Excludes FERA emissions.

d.Global emissions include all GHG emissions aligned to SBT (incl. Managed FERA and Franchised FERA emissions).

**Statement of data** 

**methodology** 

**Reporting period**

The data reported covers 1 January 2025

to 31 December 2025 and is aligned

with IHG's financial reporting cycle.

**Scope and boundary approach**

IHG's environmental data reporting

methodology follows the Greenhouse Gas

(GHG) Protocol Corporate Accounting

and Reporting Standard which guide how

we define organisational and operational

boundaries, calculate emissions and

apply reporting principles. This supports

consistent, transparent and accurate

reporting across the Group, providing a

reliable basis for performance tracking,

verification and disclosure.

IHG applies the operational control

approach to define the organisational

boundary, covering all subsidiaries

and facilities over which IHG has

operational control.

Scope 1 and 2 emissions cover hotels and

offices under IHG's operational control,

specifically managed and owned &

leased properties and corporate offices.

Scope 3 includes indirect emissions

from franchised hotels (Category 14:

Franchises) and upstream energy-

related activities (Category 3: Fuel

and Energy-Related Activities).

This scope selection aligns with Science

Based Targets initiative (SBTi) criteria by

focusing on the most material emissions

sources and ensuring at least 67% of

total Scope 3 emissions are covered.

Exclusive partnerships (e.g. Iberostar)

are excluded from all reporting scopes.

**Data collection and reporting**

All IHG hotels, including managed,

franchised and conversion properties,

and corporate offices are required to enter

monthly energy data into IHG Green

Engage™, the Group's environmental

data management system.

Where consumption data is unavailable

or lacks reliable supporting evidence,

data is estimated using (i) the hotel's own

valid historical data, or (ii) representative

averages from comparable hotels, based

on factors such as brand and region/

climate characteristics.

Renewable electricity is recognised only

where verified contractual instruments

are in place (such as Renewable Energy

Certificates, Power Purchase Agreements

or certified green energy contracts).

To calculate GHG emissions (CO2, N2O,

CH4, HFCs), the most recent emissions

factors are used from recognised sources

including IEA, USEPA, and DESNZ<sup>a</sup>, with

all emissions reported in metric tonnes

of carbon dioxide equivalent (tCO2e).

**Restatement methodology**

Baseline and historical data are

reviewed and restated annually

to reflect improvements in data

quality, updated emission factors,

methodological enhancements

and portfolio movements

(including removing exited hotels

and estimating data for relevant

conversion properties).

Out-of-cycle restatements may be

required where a material change

is identified, defined as a deviation

of 5% or more at Group level for

key data points, or where multiple

smaller changes collectively have

an equivalent impact.

**Data assurance and verification**

Energy and carbon data undergo

independent limited assurance.

The data is verified to ISO 14064-3.

The verification statement, available

on IHG's corporate website, confirms

no material misstatements were

identified for the 2025 reporting year

at **ihgplc.com/responsible-business**.

a.IEA: International Energy Agency, USEPA: United States Environmental Protection Agency, DESNZ: Department for Energy Security and Net Zero (UK).

---

| | | |
|:---|:---|:---|
| 84 | IHG | Annual Report and Form 20-F 2025 |

---

Being a responsible business continued<br>

**Section 172 statement**

Details of how the Directors have had regard to the

matters set forth in Section 172(1)(a) to (f) of the Companies

Act 2006 are provided in the Section 172 statement on

pages 124 to 125.

Further details can be found throughout the Strategic

and Governance Reports, including in our key stakeholder

engagement disclosures on pages 44 and 45.

**Non-financial and sustainability** 

**information statement**

Non-financial and sustainability information, produced to

comply with sections 414CA and 414CB of the Companies

Act 2006, including a description of policies, due diligence

processes, outcomes and risks and opportunities, can be

found as set out below. Internal verification and disclosure

controls apply to all information covered in these areas.

–Impact of the Company's activities on the environment

on pages 70 to 83.

–Social matters on pages 66 to 69.

–Anti-corruption and anti-bribery matters on page 57.

–Employee matters on pages 62 to 67, 125, 139,

145 to 147 and 159.

–Respect for human rights on page 66 and 67.

–A description of the Group's business model

on pages 24 to 29.

–The Group's principal risks on pages 48 to 53.

–The Group's KPIs on pages 40 to 43.

---

| | |
|:---|:---|
| **+** | See our relevant policies at <br>[ihgplc.com/responsible-business](ihgplc.com/responsible-business) |
|  | See our relevant policies at <br>[ihgplc.com/responsible-business](ihgplc.com/responsible-business) |

---

**Climate-related financial disclosures**

In accordance with Section 414CB of the UK Companies

Act 2006, the required climate-related financial information

disclosures can be found integrated throughout the

Strategic Report, primarily in the TCFD report on

pages 77 to 81.

---

| | |
|:---|:---|
| **Reporting requirements** | Page |
| a)Group's governance for assessing <br>and managing climate-related <br>risks and opportunities<br>| 77 and 122 |
| b)How climate-related risks and <br>opportunities are identified, <br>assessed and managed<br>| 80 and 81 |
| c)How processes for identifying, <br>assessing and managing climate-<br>related risks are integrated into <br>the overall Group Risk Management<br>| 46 to 48, 53, <br>80 and 81<br>|
| d)Description of climate-related risks <br>and opportunities, and time periods <br>over which they are assessed<br>| 78 |
| e)Impact of the climate-related risks <br>and opportunities on the Group's <br>business model and strategy<br>| 78 to 80 |
| f)Analysis of the resilience of <br>the Group's business model and <br>strategy (climate-related scenarios)<br>| 77 and 78 |
| g)Targets used by the Group to <br>manage climate-related risks and to <br>realise climate-related opportunities<br>| 75 |
| h)Key performance indicators <br>(including basis of calculating) <br>used to assess progress against <br>targets identified under (g)<br>| 43 and 83 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 85 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Chief Financial Officer's review<br>

![CFO_headshot.jpg](ihg-20251231_g202.jpg)

"The power of our enterprise and

operating model delivered our growth

algorithm, further reinforcing our track

record of driving shareholder returns."

Michael Glover

**Chief Financial Officer**

**In 2025, the revenue increase was** 

**driven by a combination of RevPAR** 

**growth, the further broadening of our** 

**global estate and the expansion of** 

**ancillary fee streams. Our asset-light** 

**model and focus on cost efficiencies,** 

**while continuing to invest for future** 

**growth, contributed to strong fee** 

**margin and operating profit. Our well-**

**established cash-generative business** 

**model and robust balance sheet enabled** 

**us to return over $1.1bn to shareholders.**

**Trading performance**

We reinforced our commitment to

enhance the guest experience and

drive owner returns through continued

investment in our brand portfolio,

the markets we operate in, and loyalty

and technology platforms.

Business, Groups and Leisure demand

supported global RevPAR growth of

1.5%, driven by increases in both average

daily rate and occupancy. Performance

by region varied, although this highlighted

the strength of our global footprint:

RevPAR in the Americas and EMEAA

increased compared to 2024, while

Greater China decreased overall but

returned to growth in the fourth quarter.

RevPAR, together with system and

ancillary revenue growth, drove 7%

increase in fee business revenue.

**System growth**

We achieved the milestone of surpassing

one million open rooms globally, reflecting

the scale and strength of our broad

brand portfolio.

Gross openings in the year grew by 6.6%

and included the acquisition and rollout

of our 20<sup>th</sup> brand, Ruby.

Our continued focus on the quality

and consistency of our estate resulted

in a removals rate of 2.6%.

Combined, these resulted in net system

size growth of 4.0% year-on-year.

After adjusting for the impact of removing

7,092 rooms previously affiliated with

The Venetian Resort Las Vegas, our

removals rate was 1.9% and net system

size increased by 4.7%.

Signings of 102.1k rooms included 6.7k

Ruby rooms, of which 5.7k rooms were

part of the initial agreement. Conversions

represented around half of openings.

**Operating profit**

Operating profit increased to $1,198m

compared to $1,041m in 2024. Operating

profit from reportable segments<sup>a</sup>

increased from the prior year by $141m

to $1,265m. The combination of strong

revenue growth and ongoing cost

productivity resulted in a 3.6%pts

increase in fee margin<sup>a</sup> to 64.8%.

The growth in operating profit was

achieved while continuing to reinvest in

the business to support future growth.

**Cash generation and liquidity**

We generated net cash from operating

activities of $898m, and adjusted free

cash flow<sup>a</sup> increased by $238m to

$893m, compared to the prior year.

During 2025, we returned over $1.1bn

to shareholders through a combination

of ordinary dividends and share buybacks.

We secured a new $1,500m syndicated

credit facility and successfully removed

the financial covenants associated

with the previous facility.

Our net debt:adjusted EBITDA ratio at the

end of the year finished at 2.5x, within

the 2.5–3.0x range we aim to maintain.

The Board has proposed a final dividend

of 125.9¢, +10% vs 2024, taking the dividend

for the year to 184.5¢. The Board has

also approved a further share buyback

programme to return an additional

$950m to shareholders.

Our uses of cash remain unchanged:

ensuring the business is appropriately

invested in to optimise growth; funding

a sustainably growing dividend; and then

returning excess funds to shareholders.

**Future growth** 

**and 2026 priorities**

We remain confident in the long-term

structural drivers that underpin our industry.

We are committed to the ongoing

investments in our brands, technology,

loyalty and hotel operations. These

investments in turn further strengthen

our enterprise and support our growth

algorithm, to drive sustained value creation

and additional shareholder returns.

![MichaelGlover_sig.jpg](ihg-20251231_g203.jpg)

Michael Glover

Chief Financial Officer

a.Use of Non-GAAP measures: In addition to performance measures directly observable in the Group Financial Statements (IFRS measures),

additional financial measures (described as Non-GAAP) are presented that are used internally by management as key measures to assess performance.

Non-GAAP measures are either not defined under IFRS or are adjusted IFRS figures. Further explanation in relation to these measures can be found

on pages 107 to 112, and reconciliations to IFRS figures, where they have been adjusted, are on pages 250 to 256.

---

| | | |
|:---|:---|:---|
| 86 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Performance |
| Group |

---

**Group Income Statement summary**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| |  | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December |
| | 2025 | 2024 | 2025 vs <br>2024<br>| 2023 | 2024 vs <br>2023<br>|
|  |  | Re-<br>presented<sup>a</sup><br>|  | Re-<br>presented<sup>a</sup><br>|  |
|  | $m | $m | % change | $m | % change |
| Revenue<sup>b</sup> |  |  |  |  |  |
| Americas | 1129 | 1141 | (1.1) | 1105 | 3.3 |
| EMEAA | 811 | 748 | 8.4 | 677 | 10.5 |
| Greater China | 165 | 161 | 2.5 | 161 | – |
| Central | 363 | 262 | 38.5 | 221 | 18.6 |
| Revenue from reportable segments<sup>c</sup> | 2468 | 2312 | 6.7 | 2164 | 6.8 |
| System Fund and reimbursable revenues | 2721 | 2611 | 4.2 | 2460 | 6.1 |
| Total revenue | 5189 | 4923 | 5.4 | 4624 | 6.5 |
| Operating profit<sup>b</sup> |  |  |  |  |  |
| Americas | 836 | 828 | 1.0 | 815 | 1.6 |
| EMEAA | 303 | 270 | 12.2 | 215 | 25.6 |
| Greater China | 99 | 98 | 1.0 | 96 | 2.1 |
| Central | 27 | (72) | NM<sup>d</sup> | (107) | (32.7) |
| Operating profit from reportable segments<sup>c</sup> | 1265 | 1124 | 12.5 | 1019 | 10.3 |
| Analysed as: |  |  |  |  |  |
| Fee business | 1231 | 1085 | 13.5 | 992 | 9.4 |
| Owned & leased | 43 | 45 | (4.4) | 29 | 55.2 |
| Insurance activities | (9) | (6) | 50.0 | (2) | 200.0 |
| System Fund and reimbursable result | (46) | (83) | (44.6) | 19 | NM<sup>d</sup> |
| Operating profit before exceptional items | 1219 | 1041 | 17.1 | 1038 | 0.3 |
| Operating exceptional items | (21) | – | NM<sup>d</sup> | 28 | NM<sup>d</sup> |
| Operating profit | 1198 | 1041 | 15.1 | 1066 | (2.3) |
| Net financial expenses | (153) | (115) | 33.0 | (87) | 32.2 |
| Analysed as: |  |  |  |  |  |
| Adjusted interest expense<sup>c</sup> | (200) | (165) | 21.2 | (131) | 26.0 |
| System Fund interest | 47 | 50 | (6.0) | 44 | 13.6 |
| Foreign exchange gains/(losses) | 37 | (25) | NM<sup>d</sup> | 35 | NM<sup>d</sup> |
| Remeasurement of contingent purchase consideration | (8) | (4) | 100.0 | (4) | – |
| Profit before tax | 1074 | 897 | 19.7 | 1010 | (11.2) |
| Tax | (315) | (269) | 17.1 | (260) | 3.5 |
| Analysed as: |  |  |  |  |  |
| Adjusted tax<sup>c</sup> | (290) | (262) | 10.7 | (253) | 3.6 |
| Tax attributable to System Fund | (9) | (4) | 125.0 | (3) | 33.3 |
| Tax on foreign exchange gains/(losses) | – | (3) | NM<sup>d</sup> | 3 | NM<sup>d</sup> |
| Tax exceptional items | (16) | – | NM<sup>d</sup> | (7) | NM<sup>d</sup> |
| Profit for the year | 759 | 628 | 20.9 | 750 | (16.3) |
| Adjusted earnings<sup>e</sup> | 774 | 697 | 11.0 | 635 | 9.8 |
| Basic weighted average number of ordinary shares (millions) | 154.4 | 161.2 | (4.2) | 169.0 | (4.6) |
| Earnings per ordinary share |  |  |  |  |  |
| Basic | 490.9¢ | 389.6¢ | 26.0 | 443.8¢ | (12.2) |
| Adjusted<sup>c</sup> | 501.3¢ | 432.4¢ | 15.9 | 375.7¢ | 15.1 |
| Dividend per share | 184.5¢ | 167.6¢ | 10.1 | 152.3¢ | 10.0 |
| Average US dollar to sterling exchange rate | $1:£0.76 | $1:£0.78 | (2.6) | $1: £0.80 | (2.5) |

---

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

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

Greater China includes revenue and operating profit before exceptional items from fee business.

c.Definitions for Non-GAAP measures can be found in the 'Key performance measures and Non-GAAP measures' section on pages 107 to 112 along with

reconciliations of these measures to the most directly comparable line items within the Group Financial Statements which can be found on pages 250 to 256.

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

in the prior period.

e.Adjusted earnings as used with adjusted earnings per share, a Non-GAAP measure. Excludes $1m profit attributable to non-controlling interest.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 87 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Highlights for the year** 

**ended 31 December 2025**

Trading varied across our global

footprint. The Americas saw growth in

the first quarter, with the rest of the year

impacted by economic uncertainties,

with the fourth quarter further affected

by tough prior year comparatives.

There was strong demand in EMEAA,

with RevPAR growth in all quarters

of 2025 for this varied region. Greater

China saw sequential quarterly

improvement through the year, with

RevPAR growth in the fourth quarter.

**Revenue**

RevPAR increased year-on-year by

3.3% in the first quarter, 0.3% in the

second quarter, 0.1% in the third quarter,

1.6% in the fourth quarter and 1.5%

in the full year. Compared to 2024,

average daily rate increased by 0.8%

and occupancy was 0.5%pts higher.

Our other key driver of revenue,

net system size, increased by 4.0%

year-on-year to 1,026,177 rooms on a

reported basis, or 4.7% after adjusting

for the impact of removing 7,092 rooms

previously affiliated with The Venetian

Resort Las Vegas.

Total revenue increased by $266m

(5.4%) to $5,189m, including a $110m

increase in System Fund and reimbursable

revenue. Revenue from reportable

segments<sup>a</sup> increased by $156m (6.7%)

to $2,468m, driven by the combination

of system and RevPAR growth, together

with incremental fees from previous

changes in the arrangements related

to the US co-brand credit card

arrangements and from the sale of

certain loyalty points (together with

certain other ancillary revenues).

These revenue streams achieved the

expected ~$40m and ~$25m step-

changes within IHG's results from

reportable segments<sup>a</sup> in 2025, along

with additional underlying growth.

Underlying revenue<sup>a</sup> increased

by $133m (5.7%) to $2,454m, with

underlying fee revenue<sup>a</sup> increasing

by $110m (6.2%) to $1,890m. Owned

& leased revenue increased by

$29m (5.6%) to $544m.

**Operating profit and margin**

Operating profit increased by $157m

from $1,041m to $1,198m, including $21m

operating exceptional costs in relation

to the global efficiency programme and

to commercial litigation and disputes,

compared to operating exceptional

items of $nil recorded in the prior

year. The reported System Fund and

reimbursable result improved by $37m

in the year, as the loss reduced from

$83m in 2024 to $46m in 2025.

Operating profit from reportable

segments<sup>a</sup> increased by $141m (12.5%)

to $1,265m. Fee business operating

profit increased by $146m (13.5%) to

$1,231m, due to RevPAR and system

growth which drove a $12m increase in

incentive management fees to $190m,

combined with incremental ancillary

fee revenue. Owned & leased operating

profit declined from $45m to $43m.

Underlying operating profit<sup>a</sup> increased

by $135m (12.0%) to $1,264m.

Fee margin<sup>a</sup> increased by 3.6%pts

over the prior year to 64.8%. Around

2.3%pts was driven by operational

leverage and cost efficiencies from the

global efficiency programme. A further

~1.3%pts was due to incremental fees

from the US co-brand credit card

agreements and from the sale of certain

loyalty points, together with certain

other ancillary revenues.

The impact of the movement in average

USD exchange rates for 2024 compared

to 2025 netted to a $nil impact

on operating profit from reportable

segments<sup>a</sup> when calculated as restating

2024 figures at 2025 exchange rates,

and benefitted operating profit from

reportable segments<sup>a</sup> by $1m when

applying 2024 rates to 2025 figures.

If the average exchange rate during

January 2026 had existed throughout

2025, the 2025 operating profit from

reportable segments<sup>a</sup> would have

been $6m higher.

**System Fund and** 

**reimbursable result**

The Group operates a System Fund

to collect and administer assessments

from hotel owners for specified

purposes of use, including marketing,

reservations, certain hotel services and

the Group's loyalty programme, IHG

One Rewards. The System Fund also

benefits from certain proceeds from the

sale of loyalty points under third-party

co-branding arrangements and the sale

of points directly to members and other

third parties. The Fund is not managed

to generate a surplus or deficit for IHG

over the longer term, but is managed

for the benefit of hotels in the IHG

system with the objective of driving

revenues for the hotels in the system.

The growth in the IHG One Rewards

programme means that, although

assessments are received from hotels

upfront when a member earns points,

more revenue is deferred each year

than is recognised in the System Fund.

This can lead to accounting losses in the

System Fund each year as the deferred

revenue balance grows which do not

necessarily reflect the Fund's position

and the Group's capacity to invest.

Reimbursable revenues represent

reimbursements of expenses incurred

on behalf of managed and franchised

properties and relate, predominantly,

to payroll costs at managed properties

where IHG is the employer. As IHG

records reimbursable expenses based

upon costs incurred with no added

mark-up, this revenue and related

expenses have no impact on either

operating profit or net profit for the year.

In the year to 31 December 2025,

System Fund and reimbursable revenues

increased $110m (4.2%) to $2,721m.

This was driven by the growth in System

Fund revenue driven by the continued

increase in net system size compounded

by year-over-year RevPAR growth.

The reported System Fund and

reimbursable result improved from a loss

of $83m to a loss of $46m, primarily

due to the System Fund revenue growth

mentioned above and the impact

of our global efficiency programme,

partially offset by increased investments

in marketing and loyalty.

**Operating exceptional items** 

Exceptional items are identified by

virtue of their size, nature or incidence

and are excluded from the calculation

of adjusted earnings per ordinary share<sup>a</sup>

as well as other Non-GAAP measures in

order to allow a better understanding of

the underlying trading performance and

trends of the Group and its reportable

segments. Examples of exceptional items

can include, but are not restricted to,

gains and losses on the disposal of assets,

impairment charges and reversals,

the costs of individually significant legal

cases or commercial disputes and

reorganisation costs.

a.Definitions for Non-GAAP measures can be found on pages 107 to 112. Reconciliations of these measures to the most directly comparable line items

within the Group Financial Statements can be found on pages 250 to 256.

---

| | | |
|:---|:---|:---|
| 88 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Performance continued |
| Group continued |

---

Operating exceptional items for

the year to 31 December 2025 were

$21m (2024: $nil), comprising costs

of $12m relating to a global efficiency

programme and $9m relating to

litigation and commercial disputes.

Further information on exceptional

items can be found in note 6 to the

Group Financial Statements.

**Net financial expenses**

Net financial expenses increased

to $153m from $115m. Net financial

expenses include total interest costs

on public bonds, which are fixed rate

debt, of $153m (2024: $123m) and

interest expense on lease liabilities

of $30m (2024: $30m). In 2025,

foreign exchange gains/(losses) have

been presented on a separate line of

the Group income statement. The 2024

and 2023 amounts were previously

presented within net financial expenses.

Adjusted interest<sup>a</sup>, which adds back

interest attributable to the System Fund,

increased by $35m to an expense

of $200m, driven by the increase in

net debt and average interest rates

on bond debt.

**Foreign exchange gains and losses**

Foreign exchange gains of $37m

(2024: losses of $25m) are predominantly

due to translation of intra-group US

dollar monetary assets and liabilities

held by subsidiaries with a sterling

functional currency.

**Remeasurement losses on** 

**contingent purchase consideration**

Contingent purchase consideration arose

on the acquisition of Regent, and from

2025, the acquisition of the Ruby brand.

The loss of $8m (2024: $4m loss) is

principally the unwind of the discount

due to the passage of time. The total

contingent purchase consideration

liability at 31 December 2025 is $98m

(2024: $73m).

**Taxation**

The adjusted tax rate<sup>a</sup> for 2025 was

27.2% (2024: 27.3%). The total tax charge

includes a net exceptional charge of

$16m (2024: $nil), comprising a charge

of $21m following the completion of

an intra-group restructuring transaction

offset by the tax impacts of the operating

exceptional items.

Tax paid in 2025 totalled $307m

(2024 $309m), including exceptional tax

paid of $34m related to the settlement

of a tax liability which originally arose

as a result of the acquisition of Holiday

Inn in 1990.

IHG pursues an approach to tax that is

consistent with its business strategy and

its overall business conduct principles.

The approach seeks to ensure full

compliance with all tax filing, payment

and reporting obligations on the basis

of communicative and transparent

relationships with tax authorities.

The IHG Audit Committee reviews

IHG's approach to tax annually, including

consideration of the Group's current

tax profile. Further information on tax

can be found in note 8 to the Group

Financial Statements.

---

| | |
|:---|:---|
| **+** | IHG's Approach to Tax policy is available <br>at ihgplc.com/responsible-business <br>under policies. |
|  | IHG's Approach to Tax policy is available <br>at ihgplc.com/responsible-business <br>under policies. |
|  | IHG's Approach to Tax policy is available <br>at ihgplc.com/responsible-business <br>under policies. |

---

**Earnings per ordinary share**

The Group's basic earnings per ordinary

share is 490.9¢ (2024: 389.6¢). Adjusted

earnings per ordinary share<sup>a</sup> increased

by 68.9¢ (15.9%) to 501.3¢.

**Dividends and returns**

The Board is proposing a final dividend

of 125.9¢ in respect of 2025, an increase

of 10% on 2024. With the interim

dividend of 58.6¢ paid in October 2025,

the total dividend for the year would

therefore be 184.5¢, representing an

increase of 10% on 2024. The ex-

dividend date for ordinary shares is

Thursday 9 April 2026 and the record

date is Friday 10 April 2026. The

corresponding dividend amount in

pence sterling per ordinary share will be

announced on Monday 27 April 2026,

calculated based on the average of the

market exchange rates for the three

working days commencing 22 April

2026. Subject to shareholder approval at

the AGM on Thursday 7 May 2026, the

dividend will be paid on Thursday 14

May 2026.

The dividend payments in 2025 have

returned $270m to IHG's shareholders.

An additional $892m of surplus capital

was returned to shareholders through

a share buyback programme that

concluded in December 2025. This

repurchased 7,585,264 shares at an

average price of £88.50 per share

and reduced the total number of

voting rights in the Company by 4.8%.

The Board has approved a further

share buyback programme to return

an additional $950m to shareholders

in 2026.

**Share price and market capitalisation**

The IHG share price closed at £104.60

on Wednesday 31 December 2025,

up 5.1% from £99.54 on 31 December

2024. The market capitalisation of the

Group at the year-end was £15.9bn.

For a discussion of 2024 results, and <br>the changes compared to 2023, <br>refer to the 2024 Annual Report <br>and Form 20-F.<br>

---

| | |
|:---|:---|
| **+** | ihgplc.com/investors<br>under Annual Report. |
|  | ihgplc.com/investors<br>under Annual Report. |

---

**Accounting principles**<br>The Group results are prepared <br>under International Financial <br>Reporting Standards (IFRS) as <br>described on page 183 of the <br>Group Financial Statements. <br>The application of IFRS requires <br>management to make judgement, <br>estimates and assumptions, and <br>those considered critical to the <br>preparation of the Group results <br>are set out on page 184.<br>The Group discloses certain <br>financial information both including <br>and excluding exceptional items. <br>For comparability of the periods <br>presented, some of the performance <br>indicators in this performance review <br>are calculated after eliminating <br>these exceptional items. An analysis <br>of exceptional items is included <br>in note 6.<br>

a.Definitions for Non-GAAP measures can be found on pages 107 to 112. Reconciliations of these measures to the most directly comparable line items

within the Group Financial Statements can be found on pages 250 to 256.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 89 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Adjusted EBITDA**<sup>a</sup> **reconciliation**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December |
| | 2025 | 2024 | 2025 vs 2024 | 2023 | 2024 vs 2023 |
|  | $m | $m | $m change | $m | $m change |
| Cash flow from operations | 1361 | 1149 |  | 1219 |  |
| Cash flows relating to operating exceptional items | 23 | (8) |  | 29 |  |
| Impairment (loss)/reversal on financial assets | (21) | (16) |  | 1 |  |
| Other impairment charges | (2) | (6) |  | – |  |
| Other non-cash adjustments to operating profit | (93) | (77) |  | (60) |  |
| System Fund and reimbursable result | 46 | 83 |  | (19) |  |
| System Fund depreciation and amortisation | (79) | (80) |  | (83) |  |
| Other non-cash adjustments to System Fund result | (46) | (37) |  | (23) |  |
| Working capital and other adjustments | (36) | (56) |  | (79) |  |
| Capital expenditure: contract acquisition costs <br>net of repayments<br>| 179 | 237 |  | 101 |  |
| Adjusted EBITDA<sup>a</sup> | 1332 | 1189 | 143 | 1086 | 103 |

---

**Group Cash Flow summary**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December |
| | 2025 | 2024 | 2025 vs 2024 | 2023 | 2024 vs 2023 |
|  | $m | $m | $m change | $m | $m change |
| Adjusted EBITDA<sup>a</sup> | 1332 | 1189 | 143 | 1086 | 103 |
| Working capital and other adjustments | 36 | 56 |  | 79 |  |
| Repayments/(payments) related to investments <br>supporting the Group's insurance activities<br>| 3 | 5 |  | (11) |  |
| Impairment loss/(reversal) on financial assets | 21 | 16 |  | (1) |  |
| Other impairment charges | 2 | 6 |  | – |  |
| Other non-cash adjustments to operating profit | 93 | 77 |  | 60 |  |
| System Fund and reimbursable result | (46) | (83) |  | 19 |  |
| Non-cash adjustments to System Fund result | 125 | 117 |  | 106 |  |
| Capital expenditure: key money contract <br>acquisition costs, net of repayments<br>| (177) | (206) |  | (101) |  |
| Capital expenditure: gross maintenance | (31) | (31) |  | (38) |  |
| Net interest paid | (156) | (113) |  | (83) |  |
| Tax paid<sup>b</sup> | (273) | (309) |  | (243) |  |
| Principal element of lease payments, net of finance <br>lease receipts<br>| (26) | (42) |  | (28) |  |
| Purchase of own shares by employee share trusts | (10) | (27) |  | (8) |  |
| Adjusted free cash flow<sup>a</sup> | 893 | 655 | 238 | 837 | (182) |
| Cash flows relating to exceptional items<sup>b</sup> | (57) | 8 |  | (29) |  |
| Capital expenditure: gross recyclable investments | (16) | (68) |  | (50) |  |
| Capital expenditure: gross System Fund capital investments | (43) | (45) |  | (46) |  |
| Purchase of brands | (120) | – |  | – |  |
| Deferred purchase consideration paid | – | (13) |  | – |  |
| Disposals and repayments, including proceeds <br>from other financial assets<br>| 11 | 15 |  | 8 |  |
| Repurchase of shares, including transaction costs | (897) | (804) |  | (790) |  |
| Dividends paid to shareholders | (270) | (259) |  | (245) |  |
| Dividends paid to non-controlling interest | – | – |  | (3) |  |
| Other financing cash flows | 6 | – |  | – |  |
| Net cash flow before other net debt<sup>a</sup>movements | (493) | (511) | 18 | (318) | (193) |
| Add back principal element of lease repayments | 30 | 46 |  | 28 |  |
| Exchange and other non-cash adjustments | (88) | (45) |  | (131) |  |
| Increase in net debt<sup>a</sup> | (551) | (510) | (41) | (421) | (89) |
| Net debt<sup>a</sup> at the beginning of the year | (2782) | (2272) |  | (1851) |  |
| Net debt<sup>a</sup> at the end of the year | (3333) | (2782) | (551) | (2272) | (510) |

---

a.Definitions for Non-GAAP measures can be found in the 'Key performance measures and Non-GAAP measures' section on pages 107 to [112](#ibcf92c8dbf33443087f3ff86c728d6e5_1910).

Reconciliations of these measures to the most directly comparable line items within the Group Financial Statements can be found on pages [250](#i99b3022383644c6db07b66c944e8c509_357) to 256.

b.In 2025 'Tax paid' excludes, and 'Cash flows relating to exceptional items' includes, $34m of exceptional tax paid.

---

| | | |
|:---|:---|:---|
| 90 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Performance continued |
| Group continued |

---

**Cash flow from operations**

For the year ended 31 December 2025,

cash flow from operations was $1,361m,

an increase of $212m on the previous

year. This was predominantly due to the

higher operating profit from reportable

segments<sup>a</sup>, lower contract acquisition

costs and an improvement in the

System Fund and reimbursable result.

Cash flow from operations is the

principal source of cash used to fund

interest and tax payments, capital

expenditure, ordinary dividend

payments and additional returns

of capital to shareholders.

**Adjusted free cash flow**<sup>a</sup>

Adjusted free cash flow<sup>a</sup> was an inflow

of $893m, an increase of $238m on the

prior year. Adjusted EBITDA<sup>a</sup> increased

by $143m due to the improvement

in trading and growth in ancillary

fee streams. The System Fund and

reimbursable result improved by $37m,

reflecting System Fund revenue growth

and the impact of the global efficiency

programme, partly offset by increased

investments in marketing and loyalty.

Key money contract acquisition costs

net of repayments reduced by $29m,

and tax payments (excluding exceptional

items) were $36m lower due to US tax

reforms. These movements were partly

offset by a $43m increase in net interest

paid reflecting the increase in average

net debt. Working capital and other

adjustments of $36m includes $107m of

cash inflow related to deferred revenue,

driven primarily by $74m related to the

loyalty programme and $37m of upfront

cash flows associated with the new

US co-brand credit card agreements.

**Net and gross capital** 

**expenditure**<sup>a</sup>

Net capital expenditure<sup>a</sup> was $185m

(2024: $253m) and gross capital

expenditure<sup>a</sup> was $269m (2024: $350m).

Gross capital expenditure<sup>a</sup> comprised:

$179m of key money contract acquisition

costs; $31m of maintenance; $16m

gross recyclable investments; and

$43m System Fund capital investments.

Net capital expenditure<sup>a</sup> includes

key money repayments of $2m and

offsets from other disposals and

repayments of $4m, and $78m System

Fund depreciation and amortisation.

**Net debt**<sup>a</sup>

Net debt<sup>a</sup> increased by $551m

from $2,782m at 31 December 2024

to $3,333m at 31 December 2025.

During the year, the Group invested

$120m to purchase the Ruby brand

and there were $1,167m of payments

related to ordinary dividends and the

share buyback programmes, including

transaction costs. The change in

net debt<sup>a</sup> includes adverse net foreign

exchange impacts of $69m and $19m

of other non-cash adjustments.

**Cash and borrowings**

Net debt<sup>a</sup> of $3,333m (2024: $2,782m)

is analysed by currency as follows:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | $m | $m |
| Borrowings |  |  |
| Sterling\* | 1175 | 1473 |
| US dollar\* | 3257 | 2290 |
| Euros\* | 5 | 3 |
| Other | 25 | 24 |
| Cash and cash <br>equivalents<br>|  |  |
| Sterling | (549) | (462) |
| US dollar | (442) | (369) |
| Euros | (14) | (26) |
| Chinese <br>renminbi<br>| (69) | (99) |
| Other | (55) | (52) |
| Net debt<sup>a</sup> | 3333 | 2782 |
| Average net <br>debt level<br>| 3139 | 2639 |

---

c.\*Including the impact of derivative

financial instruments.

Cash and cash equivalents includes

$4m (2024: $2m) that is not available for

use by the Group due to local exchange

controls, $17m (2024: $15m) which is

restricted for use on capital expenditure

under hotel lease agreements and $6m

(2024: $5m) subject to contractual and

regulatory restrictions.

---

| | |
|:---|:---|
| **+** | Information on the maturity profile <br>and interest structure of borrowings <br>is included in notes 21 to 23 to the <br>Group Financial Statements. |
|  | Information on the maturity profile <br>and interest structure of borrowings <br>is included in notes 21 to 23 to the <br>Group Financial Statements. |
|  | Information on the maturity profile <br>and interest structure of borrowings <br>is included in notes 21 to 23 to the <br>Group Financial Statements. |
|  | Information on the maturity profile <br>and interest structure of borrowings <br>is included in notes 21 to 23 to the <br>Group Financial Statements. |

---

Borrowings included bank overdrafts

of $3m (2024: $17m), which were

matched by an equivalent amount of

cash and cash equivalents under the

Group's cash pooling arrangements.

Under these arrangements, each pool

contains a number of bank accounts

with the same financial institution, and

the Group pays interest on net overdraft

balances within each pool.

Overseas subsidiaries are typically in a

cash-positive position, and the matching

overdrafts are held by the Group's

central treasury company in the UK.

---

| | |
|:---|:---|
| **+** | Information on the Group's approach <br>to allocation of capital resources can <br>be found on pages 26 and 27. |
|  | Information on the Group's approach <br>to allocation of capital resources can <br>be found on pages 26 and 27. |
|  | Information on the Group's approach <br>to allocation of capital resources can <br>be found on pages 26 and 27. |

---

**Sources of liquidity**

As at 31 December 2025, the Group had

total liquidity of $2,599m (31 December

2024: $2,319m), comprising $1,500m

of undrawn bank facilities and $1,099m

of cash and cash equivalents (net of

overdrafts and restricted cash). The

increase in total liquidity from December

2024 of $280m is primarily due to net

additional bond funding of $587m and

$150m from the increase in the new

bank revolving credit facility, offset

by net cash outflows of $493m<sup>b</sup>.

The Group currently has $4,198m of

sterling and euro bonds outstanding.

The bonds mature in August 2026

(£350m), May 2027 (€500m), October

2028 (£400m), November 2029

(€600m), September 2030 (€850m)

and September 2031 (€750m). There

are currency swaps in place on the

euro bonds, fixing the May 2027 bond

at £436m, the November 2029 bond

at $657m, the September 2030 bond

at $990m and the September 2031

bond at $834m. The Group currently

has senior unsecured long-term credit

ratings of BBB from S&P and Baa2

from Moody's.

In December 2025, the Group entered

into a new $1,500m syndicated

bank revolving credit facility (RCF),

and the previous $1,350m facility

was cancelled on the same day.

The new five-year RCF matures in

December 2030. There are two

one-year extension options that are

at the lenders' discretion. There are

no financial covenants in the RCF.

The RCF was undrawn at 31 December

2025. It is management's opinion that the

current working capital levels and

available facilities are sufficient for the

Group's present liquidity requirements.

a.Definitions for Non-GAAP measures can be found on pages 107 to [112](#ibcf92c8dbf33443087f3ff86c728d6e5_1910). Reconciliations of these measures to the most directly comparable line items

within the Group Financial Statements can be found on pages [250](#i99b3022383644c6db07b66c944e8c509_357) to [256](#i692aa21ed66a4b14a81e88e2311f822f_57).

b. As shown in the Cash Flow summary on page [89](#i07214d6779464e86b99d30e90cd9110a_457).

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 91 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Off-balance sheet** 

**arrangements**

At 31 December 2025, the Group had

no off-balance sheet arrangements that

have, or are reasonably likely to have,

a current or future material effect on

the Group's financial condition, revenues

or expenses, results of operations,

liquidity, capital expenditures or

capital resources.

**Contingent liabilities and** 

**financial guarantees**

The Group has given financial guarantees

over loans made to facilitate third-party

ownership of hotels of up to $26m. The

carrying amount of these guarantees

was $nil. See note 18 to the Group

Financial Statements for further details.

The Group may be exposed to additional

liabilities resulting from litigation. See

note 29 to the Group Financial Statements

for further details.

**Future cash requirements** 

**from contractual obligations**

The Group's future cash flows arising

from contractual commitments relating

to long-term debt obligations (including

interest payable), derivatives, lease

liabilities and other financial liabilities

are analysed in note 23 to the Group

Financial Statements.

Other cash requirements relate to future

pension scheme contributions (see note

26 to the Group Financial Statements)

and capital commitments (see note 29

to the Group Financial Statements).

The Group also has future commitments

for key money payments which are

contingent upon future events and

may reverse.

**Disaggregation of total gross revenue in IHG's system**

Total gross revenue provides a measure of the overall strength of the Group's brands. It comprises total rooms revenue from

franchised hotels and total hotel revenue from managed, exclusive partner and owned & leased hotels and excludes revenue

from the System Fund and reimbursement of costs. Other than owned & leased hotels, total gross revenue is not revenue

attributable to IHG as it is derived from hotels owned by third parties. The definition of this key performance measure can

be found on page 107.

---

| | | | |
|:---|:---|:---|:---|
| | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December |
| | 2025 | 2024 | % |
|  | $bn | $bn | change<sup>a</sup> |
| Analysed by brand |  |  |  |
| InterContinental | 5.6 | 5.3 | 5.6 |
| Kimpton | 1.5 | 1.4 | 5.9 |
| Hotel Indigo | 1.1 | 1.0 | 14.0 |
| Crowne Plaza | 3.7 | 3.7 | (1.3) |
| Holiday Inn Express | 9.7 | 9.6 | 1.4 |
| Holiday Inn | 6.1 | 6.0 | 1.3 |
| Staybridge Suites | 1.4 | 1.3 | 4.1 |
| Candlewood Suites | 1.0 | 0.9 | 5.3 |
| Other | 5.1 | 4.2 | 24.0 |
| Total | 35.2 | 33.4 | 5.3 |
| Analysed by ownership type |  |  |  |
| Franchised<sup>b</sup> (revenue not attributable to IHG) | 22.2 | 21.2 | 5.1 |
| Managed (revenue not attributable to IHG) | 12.5 | 11.7 | 5.6 |
| Owned & leased (revenue recognised in Group income statement) | 0.5 | 0.5 | 5.4 |
| Total | 35.2 | 33.4 | 5.3 |

---

Total gross revenue in IHG's system increased by 5.3% (4.7% increase at constant currency) to $35.2bn, driven by the

combination of RevPAR growth and the increase in the number of hotels in our system.

a.Year-on-year percentage movement calculated from unrounded source figures to provide more precise growth indicators for these figures which are

presented in billions of dollars.

b.Includes exclusive partner hotels.

---

| | | |
|:---|:---|:---|
| 92 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Performance continued |
| Group continued |

---

**Group hotel and room count**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Hotels | Hotels | Rooms | Rooms |
| At 31 December | 2025 | Change over <br>2024<br>| 2025 | Change over <br>2024<br>|
| Analysed by brand |  |  |  |  |
| Six Senses | 27 | – | 2067 | 117 |
| Regent | 11 | – | 3212 | – |
| InterContinental | 242 | 15 | 77027 | 3243 |
| Vignette Collection | 31 | 11 | 7256 | 3291 |
| Kimpton | 85 | 8 | 16208 | 2177 |
| Hotel Indigo | 191 | 22 | 25676 | 2883 |
| voco | 124 | 37 | 25227 | 4851 |
| Ruby | 17 | 17 | 2952 | 2952 |
| HUALUXE | 24 | 2 | 6426 | 424 |
| Crowne Plaza | 424 | 9 | 113887 | 263 |
| EVEN Hotels | 46 | 13 | 6896 | 1814 |
| Holiday Inn Express | 3292 | 55 | 351400 | 7443 |
| Holiday Inn | 1247 | (2) | 225926 | 594 |
| Garner | 89 | 66 | 8501 | 6101 |
| avid hotels | 87 | 11 | 7677 | 875 |
| Atwell Suites | 9 | 3 | 928 | 372 |
| Staybridge Suites | 350 | 15 | 38287 | 1764 |
| Holiday Inn Club Vacations | 26 | (4) | 9138 | (730) |
| Candlewood Suites | 423 | 31 | 37552 | 2735 |
| Iberostar Beachfront Resorts | 62 | 7 | 21001 | 1415 |
| Other | 156 | 18 | 38933 | (3532) |
| Total | 6963 | 334 | 1026177 | 39052 |
| Analysed by ownership type |  |  |  |  |
| Franchised<sup>a</sup> | 5886 | 290 | 748178 | 29961 |
| Managed | 1060 | 43 | 273808 | 8936 |
| Owned & leased  | 17 | 1 | 4191 | 155 |
| Total | 6963 | 334 | 1026177 | 39052 |

---

a.Includes exclusive partner hotels.

During the year, a record 443 hotels

(65,078 rooms) opened, representing

a 72 hotels (5,961 rooms) increase

from 2024.

Openings included the first 2,952 rooms

(17 hotels) as part of the initial Ruby

agreement. Other openings included

20,338 rooms (133 hotels) in the

Holiday Inn Brand Family, the debut

of Atwell in Greater China and the

continued international momentum

of Garner. Conversions represented

around half of all openings.

In 2025, 26,026 rooms (109 hotels)

left the IHG system, reflecting

our continued focus on the quality

of our estate.

Net system size increased by 4.0%

year-on-year to 1,026,177.

After adjusting for the impact of

removing 7,092 rooms previously

affiliated with The Venetian Resort

Las Vegas, removals increased by

739 rooms (two hotels) compared

to 2024, with a removals rate of

1.9%, and net system size increased

by 4.7%.

---

| |
|:---|
| **Total number of hotels**<br>6,963<br>2024: 6,629<br>|
| **Total number of rooms**<br>1,026,177<br>2024: 987,125<br>|

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 93 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Group pipeline**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Hotels | Hotels | Rooms | Rooms |
| At 31 December | 2025 | Change over <br>2024<br>| 2025 | Change over <br>2024<br>|
| Analysed by brand |  |  |  |  |
| Six Senses | 39 | 1 | 2946 | 51 |
| Regent | 12 | 3 | 2210 | 223 |
| InterContinental | 104 | 3 | 26734 | 1042 |
| Vignette Collection | 45 | 10 | 7087 | 698 |
| Kimpton | 69 | 8 | 13288 | 1155 |
| Hotel Indigo | 131 | 1 | 20885 | 1454 |
| voco | 108 | 18 | 21453 | 5825 |
| Ruby | 19 | 19 | 3789 | 3789 |
| HUALUXE | 23 | (1) | 6040 | (253) |
| Crowne Plaza | 154 | 14 | 38232 | 2963 |
| EVEN Hotels | 26 | (6) | 4861 | (706) |
| Holiday Inn Express | 655 | 18 | 81358 | 2136 |
| Holiday Inn | 295 | 29 | 53559 | 1882 |
| Garner | 77 | (17) | 6953 | (1814) |
| avid hotels | 116 | (21) | 8676 | (1973) |
| Atwell Suites | 56 | 2 | 5822 | 362 |
| Staybridge Suites | 150 | (7) | 16618 | (697) |
| Candlewood Suites | 194 | 11 | 14465 | 166 |
| Iberostar Beachfront Resorts | 5 | (2) | 2415 | (32) |
| Other | 14 | (1) | 2135 | (1997) |
| Total | 2292 | 82 | 339526 | 14274 |
| Analysed by ownership type |  |  |  |  |
| Franchised<sup>a</sup> | 1635 | 37 | 198623 | 7018 |
| Managed | 657 | 46 | 140903 | 7411 |
| Owned & leased | – | (1) | – | (155) |
| Total | 2292 | 82 | 339526 | 14274 |

---

a.Includes exclusive partner hotels.

The global pipeline totalled 339,526

rooms (2,292 hotels) at the end of 2025,

an increase of 14,274 rooms (82 hotels)

from the prior year, as signings

outpaced openings and terminations.

Group signings of 102,054 rooms

(694 hotels) included 6,741 Ruby rooms

(36 hotels), 5,718 rooms (30 hotels)

as part of the initial agreement.

Signings in 2025 represented a

4,188 rooms (20 hotels) decrease

from the prior year, which included

17,703 rooms (119 hotels) as part of the

initial NOVUM Hospitality agreement.

---

| |
|:---|
| **Total number of hotels in the pipeline**<br>2,292<br>2024: 2,210<br>|
| **Total number of rooms in the pipeline**<br>339,526<br>2024: 325,252<br>|

---

---

| | | |
|:---|:---|:---|
| 94 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Performance continued |
| Americas |

---

![Perf_Americas_Intro.jpg](ihg-20251231_g204.jpg)

"We accelerated our enterprise

delivery for both guests and

owners, and delivered strong

growth momentum in 2025."

Jolyon Bulley

**Chief Executive Officer, Americas**

![21](ihg-20251231_g205.gif)

46%

**Americas** 

**revenue 2025**

($1,129m)

---

| | |
|:---|:---|
| **Comparable RevPAR movement on previous year**<br>(12 months ended 31 December 2025) | **Comparable RevPAR movement on previous year**<br>(12 months ended 31 December 2025) |
| Fee business |  |
| InterContinental | 4.6% |
| Kimpton | 1.3% |
| Hotel Indigo | 0.3% |
| Crowne Plaza | 0.5% |
| EVEN Hotels | (1.2)% |
| Holiday Inn Express | 0.2% |
| Holiday Inn | (0.7)% |
| avid hotels | (1.2)% |
| Staybridge Suites | 0.3% |
| Candlewood Suites | (0.6)% |
| All brands | 0.3% |
| Owned & leased |  |
| All brands | 1.6% |

---

InterContinental Real Lima Miraflores, Peru.

**"In 2025, we continued our strong** 

**growth momentum through hotel** 

**openings and new deals entering our** 

**development pipeline. Our established** 

**position in the Essentials and Suites** 

**category, together with growth across** 

**our Lifestyle & Luxury and Premium** 

**brands, provided our guests with more** 

**choice, and our owners a compelling** 

**IHG brand portfolio. Performance** 

**across our brands accelerated in 2025** 

**driven by the implementation of new** 

**technology platforms, growth in our** 

**loyalty delivery, and focus on the** 

**guest experience and owner returns."**

**Industry performance** 

**in 2025**

Industry RevPAR in the Americas grew

![46](ihg-20251231_g206.gif)

by 1.2% year-on-year, driven by a 2.1%

increase in average daily rate, while

52%

**Americas number** 

**of rooms**

(529,194)

occupancy declined by 0.5%pts.

US lodging industry RevPAR declined

0.3% year-on-year, as a 0.8%pts decrease

in occupancy was only partly offset by

a 0.9% increase in average daily rate,

significantly trailing the rate of inflation.

Room demand was behind 2024 levels,

due to broader economic uncertainty

and a reduction in international inbound

travel. Notably, group demand saw

declines for nine consecutive months,

while outbound travel from the US grew

by over 2%. Room supply increased

by 0.7%, with conversion activity also

increasing year-on-year.

RevPAR in the US upper midscale chain

scale, where Holiday Inn and Holiday

Inn Express operate, declined by 1.5%.

RevPAR increased by 11.7% in Latin

America. Caribbean growth of 2.2%

was driven by average daily rate.

RevPAR in Mexico increased by 5.7%

and in Canada RevPAR grew by 4.2%.

**IHG's regional performance** 

**in 2025**

IHG's comparable RevPAR in the Americas

grew by 0.3% compared to 2024, driven

by a 0.5% increase in average daily rate

and a 0.1%pts decrease in occupancy.

The region is predominantly represented

by the US, where comparable RevPAR fell

slightly by 0.1% year-on-year, and where

we are most weighted towards our upper

midscale brands, Holiday Inn and Holiday

Inn Express. US RevPAR for the Holiday

Inn brand fell by 1.5%, while the Holiday Inn

Express brand decreased by 0.2%.

Comparable RevPAR in Mexico grew by

5.8%, while Canada increased by 2.2%.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 95 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Americas results

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December |
|  | 2025 | 2024 | 2025 vs <br>2024 <br>| 2023 | 2024 vs <br>2023<br>|
|  | $m | $m | % change | $m | % change |
| Revenue from the reportable segment<sup>a</sup> |  |  |  |  |  |
| Fee business | 963 | 979 | (1.6) | 957 | 2.3 |
| Owned & leased | 166 | 162 | 2.5 | 148 | 9.5 |
| Total | 1129 | 1141 | (1.1) | 1105 | 3.3 |
| Operating profit from the reportable segment<sup>a</sup> |  |  |  |  |  |
| Fee business | 804 | 795 | 1.1 | 787 | 1.0 |
| Owned & leased | 32 | 33 | (3.0) | 28 | 17.9 |
|  | 836 | 828 | 1.0 | 815 | 1.6 |
| Operating exceptional items | (2) | 4 | NM<sup>b</sup> | 27 | (85.2) |
| Operating profit | 834 | 832 | 0.2 | 842 | (1.2) |

---

**Review of the year ended** 

**31 December 2025**

With 529,194 rooms (4,603 hotels),

the Americas represented 52% of IHG's

room count. The key profit-generating

market is the US, and the Group is also

represented in Latin America, Canada,

Mexico and the Caribbean. In the region,

93% of rooms are operated under the

franchised business model, primarily

under our brands in the upper midscale

segment (including the Holiday Inn

Brand Family). Of IHG's 20 hotel brands,

18 are represented in the Americas.

RevPAR performance in the first quarter

was strongest. From the second quarter,

certain types of business and leisure

travel were impacted by broader factors,

such as lower international inbound

demand and less government travel.

The fourth quarter also faced tough

comparables as certain locations in the

prior year saw increased hurricane related

demand. Compared to the prior year,

Business demand increased while

Groups and Leisure declined.

Americas comparable RevPAR

improved by 3.5% in the first quarter

then decreased 0.5% in the second

quarter, 0.9% in the third quarter,

1.4% in the fourth quarter and

increased 0.3% in the full year, all

compared to 2024. RevPAR in the

US decreased by 0.1% in the year.

Across our US franchised estate, which

is weighted to domestic demand in

upper midscale hotels, full-year RevPAR

decreased 0.3% year-on-year. The US

managed estate, weighted to upper

upscale and luxury hotels in urban

locations, saw RevPAR increase by 2.0%

in the full year compared to 2024.

Revenue from the reportable segment<sup>a</sup>

decreased by $12m (1.1%) to $1,129m.

Operating profit increased by $2m to

$834m, including a $2m exceptional

cost in relation to the global efficiency

programme, compared to an

exceptional income of $4m in the

prior year. Operating profit from the

reportable segment<sup>a</sup> increased by

$8m (1.0%) to $836m.

Revenue and operating profit from

the reportable segment<sup>a</sup> are further

analysed by fee business and owned

& leased hotels.

Fee business revenue<sup>a</sup> decreased by

$16m (1.6%) to $963m as comparable

RevPAR growth was offset by lower

revenue from a number of non-

comparable hotels including those

exiting the system and others

undergoing renovation, small reductions

in certain other fee revenue areas,

adverse currency movements and one

fewer trading day from the leap-year

impact. There were $20m of incentive

management fees earned (2024: $21m).

Fee business operating profit<sup>a</sup> increased

by $9m (1.1%) to $804m, supported by

system growth and cost efficiencies.

This led to fee margin<sup>a</sup> growing

to 83.4%, compared to 81.2% in 2024.

Owned & leased revenue increased by

$4m (2.5%) to $166m, with comparable

RevPAR up 1.6% compared to 2024,

reflecting the specific trading environments

related to this small portfolio of just

four hotels. Owned & leased operating

profit decreased by $1m (3.0%) to $32m.

a.Definitions for non-GAAP measures can be found on pages 107 to 112. Reconciliations of these measures to the most directly comparable line items

within the Group Financial Statements can be found on pages 250 to 256.

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

prior period.

For discussion of 2024 results, and the changes compared to 2023, refer to the 2024 Annual Report and Form 20-F.

---

| | |
|:---|:---|
| **+** | More details online: <br>i[hgplc.com/investors](ihgplc.com/investors) under Annual Report. |
|  | More details online: <br>i[hgplc.com/investors](ihgplc.com/investors) under Annual Report. |

---

---

| | | |
|:---|:---|:---|
| 96 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Performance continued |
| Americas continued |

---

**Americas hotel and room count**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Hotels | Hotels | Rooms | Rooms |
| At 31 December | 2025 | Change over <br>2024<br>| 2025 | Change over <br>2024<br>|
| Analysed by brand |  |  |  |  |
| Six Senses | 2 | – | 81 | – |
| Regent | 1 | – | 167 | – |
| InterContinental | 48 | 3 | 17055 | 783 |
| Vignette Collection | 3 | 1 | 805 | 214 |
| Kimpton | 62 | 1 | 11289 | 206 |
| Hotel Indigo | 82 | 7 | 10944 | 816 |
| voco | 28 | 9 | 2993 | 928 |
| Crowne Plaza | 101 | (3) | 25020 | (1336) |
| EVEN Hotels | 27 | 5 | 3586 | 464 |
| Holiday Inn Express | 2542 | 16 | 232517 | 1768 |
| Holiday Inn | 661 | (16) | 106181 | (3345) |
| Garner | 33 | 23 | 2687 | 1932 |
| avid hotels | 87 | 11 | 7677 | 875 |
| Atwell Suites | 8 | 2 | 754 | 198 |
| Staybridge Suites | 327 | 15 | 34474 | 1701 |
| Holiday Inn Club Vacations | 26 | (4) | 9138 | (730) |
| Candlewood Suites | 417 | 25 | 36921 | 2104 |
| Iberostar Beachfront Resorts | 26 | 2 | 9443 | 176 |
| Other | 122 | 15 | 17462 | (5554) |
| Total | 4603 | 112 | 529194 | 1200 |
| Analysed by ownership type |  |  |  |  |
| Franchised<sup>a</sup> | 4432 | 113 | 493389 | 1883 |
| Managed | 167 | (1) | 34468 | (683) |
| Owned & leased | 4 | – | 1337 | – |
| Total | 4603 | 112 | 529194 | 1200 |

---

a.Includes exclusive partner hotels.

Gross system size growth was 3.6%

year-on-year. Openings increased by

1,944 rooms (38 hotels) year-on-year to

18,776 rooms (178 hotels), with around

a third in our Holiday Inn Brand Family.

Openings also included 11 avid hotels,

nine voco properties and 23 Garner

hotels, taking the brand to 33 properties

since it became franchise-ready in

the US in September 2023.

During the year, 17,576 rooms (66 hotels)

were removed, including 7,092 rooms

previously affiliated with The Venetian

Resort Las Vegas, representing a

removal rate of 3.3%.

Net system size growth was 0.2%

year-on-year.

Excluding the impact of The Venetian

Resort Las Vegas, net system size

growth was 1.6% and the removal

rate was 2.0%.

---

| |
|:---|
| **Total number of hotels**<br>4,603<br>2024: 4,491<br>|
| **Total number of rooms**<br>529,194<br>2024: 527,994<br>|

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 97 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Americas pipeline**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Hotels | Hotels | Rooms | Rooms |
| At 31 December | 2025 | Change over <br>2024<br>| 2025 | Change over <br>2024<br>|
| Analysed by brand |  |  |  |  |
| Six Senses | 9 | – | 649 | (11) |
| InterContinental | 9 | (2) | 2229 | (557) |
| Vignette Collection | 4 | – | 282 | (193) |
| Kimpton | 30 | – | 5522 | (163) |
| Hotel Indigo | 24 | (3) | 3071 | (167) |
| voco | 27 | 4 | 3539 | 927 |
| Crowne Plaza | 6 | – | 1127 | 83 |
| EVEN Hotels | 4 | (4) | 483 | (466) |
| Holiday Inn Express | 336 | (1) | 31478 | (550) |
| Holiday Inn | 65 | – | 7744 | (46) |
| Garner | 50 | 7 | 4145 | 650 |
| avid hotels | 116 | (21) | 8676 | (1973) |
| Atwell Suites | 50 | (2) | 4968 | (254) |
| Staybridge Suites | 135 | (7) | 14007 | (967) |
| Candlewood Suites | 184 | 9 | 13175 | (24) |
| Iberostar Beachfront Resorts | 4 | (2) | 2144 | (32) |
| Other | 14 | – | 2135 | (217) |
| Total | 1067 | (22) | 105374 | (3960) |
| Analysed by ownership type |  |  |  |  |
| Franchised<sup>a</sup> | 1023 | (20) | 98598 | (3477) |
| Managed | 44 | (2) | 6776 | (483) |
| Total | 1067 | (22) | 105374 | (3960) |

---

a.Includes exclusive partner hotels.

At 31 December 2025, the pipeline

totalled 105,374 rooms (1,067 hotels),

representing 20% of the region's

system size.

Signings increased by 74 rooms, but

decreased by 15 hotels year-on-year

to 26,626 rooms (268 hotels). The

majority of signings were in our midscale

and upper midscale brands, including

the Holiday Inn Brand Family (9,022

rooms, 88 hotels), Staybridge Suites

(3,127 rooms, 31 hotels), Candlewood

Suites (2,881 rooms, 44 hotels) and

Garner (2,773 rooms, 32 hotels).

11,810 rooms (112 hotels) were removed

from the pipeline, compared to 9,550

rooms (94 hotels) in the prior year.

---

| |
|:---|
| **Total number of hotels in the pipeline**<br>1,067<br>2024: 1,089<br>|
| **Total number of rooms in the pipeline**<br>105,374<br>2024: 109,334<br>|

---

---

| | | |
|:---|:---|:---|
| 98 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Performance continued |
| EMEAA |

---

![Perf_EMEAA_Intro.jpg](ihg-20251231_g207.jpg)

"We continued to build

momentum in 2025, through

the strength and breadth

of our enterprise."

Kenneth Macpherson

**Chief Executive Officer, EMEAA**

![21](ihg-20251231_g208.gif)

33%

**EMEAA revenue** 

**2025**

($811m)

---

| | |
|:---|:---|
| **Comparable RevPAR movement on previous year**<br>(12 months ended 31 December 2025) | **Comparable RevPAR movement on previous year**<br>(12 months ended 31 December 2025) |
| Fee business |  |
| Six Senses | 16.4% |
| InterContinental | 7.0% |
| Hotel Indigo | 3.4% |
| voco | 6.7% |
| Crowne Plaza | 5.4% |
| Holiday Inn Express | 1.4% |
| Holiday Inn | 2.4% |
| Staybridge Suites | 3.3% |
| All brands | 4.7% |
| Owned & leased |  |
| All brands | 2.1% |

---

**"We continued to build momentum** 

**in 2025, with strong signings and** 

**openings across the region reflecting** 

**the long-term investments in our** 

**priority markets and platforms, and** 

**our ongoing commitment to place** 

**our guests and owners at the heart of** 

**everything we do. Our brand offering** 

**in EMEAA continues to expand, with** 

**the launch of EVEN Hotels into the** 

**region and the exciting acquisition** 

**of Ruby hotels complementing** 

**our portfolio and providing further** 

**opportunity for growth. The strength** 

**and breadth of our enterprise and** 

**our strong market teams provide real** 

**confidence for 2026 and beyond."**

**Industry performance**![46](ihg-20251231_g209.gif)

**in 2025**

Industry RevPAR in EMEAA increased

28%

**EMEAA number** 

**of rooms**

(287,602)

by 6.1% year-on-year, driven by markets

including Japan, Spain and Turkey,

and underpinned by increases in both

average daily rate and occupancy

of 4.7% and 0.9%pts, respectively.

In the UK, industry RevPAR increased

by 1.0% year-on-year. In Germany,

RevPAR declined by 0.7%, reflecting

challenging comparables following

significant one-off events in 2024.

RevPAR increased by 13.2% in the

Middle East, supported by a slowdown

in supply growth and robust

Leisure demand.

Elsewhere in EMEAA, East Asia & Pacific

increased by 7.5% year-on-year, led by

double-digit growth in Vietnam and

Japan of 18.0% and 13.5%, respectively,

driven by strong inbound tourism

and events, such as the World Expo

in Osaka.

**IHG's regional performance** 

**in 2025**

EMEAA comparable RevPAR increased

by 4.6% year-on-year, driven by a 2.4%

increase in average daily rate and a

1.6%pts increase in occupancy. In the

UK, the region's largest market, RevPAR

Ruby Lucy Hotel, London, UK.

increased by 1.1% compared to 2024.

Germany, the region's second largest

market, saw a RevPAR decrease of

2.1% and France grew by 5.1%.

RevPAR in the Middle East and India

increased by 8.8% and 4.6%, respectively.

Elsewhere in EMEAA, RevPAR increased

by 5.5% in East Asia & Pacific, with

Vietnam and Japan increasing by

27.1% and 7.2%, respectively.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 99 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

EMEAA results

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December |
|  | 2025 | 2024 | 2025 vs <br>2024 <br>| 2023 | 2024 vs <br>2023<br>|
|  | $m | $m | % change | $m | % change |
| Revenue from the reportable segment<sup>a</sup> |  |  |  |  |  |
| Fee business | 433 | 395 | 9.6 | 354 | 11.6 |
| Owned & leased | 378 | 353 | 7.1 | 323 | 9.3 |
| Total | 811 | 748 | 8.4 | 677 | 10.5 |
| Operating profit from the reportable segment<sup>a</sup> |  |  |  |  |  |
| Fee business | 292 | 258 | 13.2 | 214 | 20.6 |
| Owned & leased  | 11 | 12 | (8.3) | 1 | NM<sup>b</sup> |
|  | 303 | 270 | 12.2 | 215 | 25.6 |
| Operating exceptional items | (13) | (4) | 225.0 | 1 | NM<sup>b</sup> |
| Operating profit | 290 | 266 | 9.0 | 216 | 23.1 |

---

**Review of the year ended** 

**31 December 2025**

Comprising 287,602 rooms (1,478 hotels)

at the end of 2025, EMEAA represented

28% of IHG's room count. Revenues are

largely generated from hotels in the UK,

Middle East, Asia and gateway cities

in continental Europe.

The largest proportion of rooms in the

UK and continental Europe are operated

under the franchised business model,

primarily under our upper-midscale

brands Holiday Inn and Holiday Inn

Express. The majority of hotels in

markets outside of Europe are operated

under the managed business model.

RevPAR grew in each quarter in 2025,

with this varied region benefitting

from growth in both average daily

rate and occupancy. Business, Leisure

and Groups demand increased when

compared to 2024 levels.

EMEAA comparable RevPAR increased

year-on-year by 5.0% in the first quarter,

3.0% in the second quarter, 2.8%

in the third quarter, 7.1% in the fourth

quarter and 4.6% in the full year,

driven broadly evenly by increases

in occupancy and average daily rate.

Revenue from the reportable segment<sup>a</sup>

increased by $63m (8.4%) to $811m.

Operating profit increased by $24m to

$290m, including a $13m exceptional

cost in relation to the global efficiency

programme and commercial litigation

and disputes. Operating profit from

the reportable segment<sup>a</sup> increased

by $33m (12.2%) to $303m.

Revenue and operating profit from

the reportable segment<sup>a</sup> are further

analysed by fee business and owned

& leased hotels.

Fee business revenue<sup>a</sup> increased

by $38m (9.6%) to $433m, driven by

RevPAR and the fees added from

net system growth.

Incentive management fees earned

improved to $134m (2024: $118m).

Fee business operating profit<sup>a</sup> increased

to $292m from $258m in the prior year.

Fee margin<sup>a</sup> increased to 67.4% in 2025,

compared to 65.3% in 2024, with

positive operating leverage driven by the

trading performance, system growth

and cost efficiencies.

Owned & leased revenue increased by

$25m (+7.1%) to $378m, with RevPAR up

2.1%. Reflecting the trading conditions,

cost bases and variable rent structures

of this largely urban-centred portfolio

of 13 hotels, an operating profit of $11m

was achieved compared to $12m in

2024. Excluding the results of one

Kimpton hotel in 2025 (being the year

of lease commencement) and one

Regent hotel in 2024 (being the year

of lease expiration), revenue increased

by $26m and operating profit was in

line with the prior year.

a.Definitions for Non-GAAP measures can be found on pages 107 to 112. Reconciliations of these measures to the most directly comparable line items

within the Group Financial Statements can be found on pages 250 to 256.

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

prior period.

For discussion of 2024 results, and the changes compared to 2023, refer to the 2024 Annual Report and Form 20-F.

---

| | |
|:---|:---|
| **+** | More details online: <br>i[hgplc.com/investors](ihgplc.com/investors) under Annual Report. |
|  | More details online: <br>i[hgplc.com/investors](ihgplc.com/investors) under Annual Report. |

---

---

| | | |
|:---|:---|:---|
| 100 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Performance continued |
| EMEAA continued |

---

**EMEAA hotel and room count**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Hotels | Hotels | Rooms | Rooms |
| At 31 December | 2025 | Change over <br>2024<br>| 2025 | Change over <br>2024<br>|
| Analysed by brand |  |  |  |  |
| Six Senses | 24 | – | 1856 | 117 |
| Regent | 4 | – | 991 | – |
| InterContinental | 128 | 7 | 35341 | 1396 |
| Vignette Collection | 21 | 8 | 4666 | 2557 |
| Kimpton | 18 | 5 | 3685 | 1187 |
| Hotel Indigo | 74 | 8 | 9037 | 833 |
| voco | 68 | 17 | 16862 | 2254 |
| Ruby | 17 | 17 | 2952 | 2952 |
| Crowne Plaza | 185 | 4 | 43796 | (94) |
| Holiday Inn Express | 363 | 3 | 53601 | 766 |
| Holiday Inn | 426 | 1 | 78097 | 702 |
| Garner | 56 | 43 | 5814 | 4169 |
| Staybridge Suites | 23 | – | 3813 | 63 |
| Candlewood Suites | 6 | 6 | 631 | 631 |
| Iberostar Beachfront Resorts | 36 | 5 | 11558 | 1239 |
| Other | 29 | 5 | 14902 | 2356 |
| Total | 1478 | 129 | 287602 | 21128 |
| Analysed by ownership type |  |  |  |  |
| Franchised<sup>a</sup> | 1025 | 94 | 170049 | 13511 |
| Managed | 440 | 34 | 114699 | 7462 |
| Owned & leased | 13 | 1 | 2854 | 155 |
| Total | 1478 | 129 | 287602 | 21128 |

---

a.Includes exclusive partner hotels.

Gross system size growth was 9.0%

year-on-year. In 2025, 24,107 rooms

(147 hotels) opened, representing

an increase of 487 rooms (13 hotels)

compared to 2024.

Openings included 2,952 rooms

(17 hotels) as part of the initial Ruby

agreement and a further 3,802 rooms

(38 hotels) relating to our initial

agreement with NOVUM Hospitality.

Accelerated by the NOVUM Hospitality

agreement, Garner opened 4,169 rooms

(43 hotels). Other notable openings

included 17 voco properties, marking

the brand's entry in Thailand, 15 hotels

in the Holiday Inn Brand Family and five

Kimpton hotels, including the brand's

debut in Germany.

In 2025, 2,979 rooms (18 hotels)

were removed compared to 4,413

rooms (22 hotels) in the prior year.

Net system size increased 7.9%

year-on-year.

---

| |
|:---|
| **Total number of hotels**<br>1,478<br>2024: 1,349<br>|
| **Total number of rooms**<br>287,602<br>2024: 266,474<br>|

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 101 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**EMEAA pipeline**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Hotels | Hotels | Rooms | Rooms |
| At 31 December | 2025 | Change over <br>2024<br>| 2025 | Change over <br>2024<br>|
| Analysed by brand |  |  |  |  |
| Six Senses | 29 | 1 | 2225 | 44 |
| Regent | 10 | 3 | 1683 | 223 |
| InterContinental | 64 | 4 | 15694 | 1168 |
| Vignette Collection | 32 | 7 | 4494 | 115 |
| Kimpton | 21 | 6 | 3550 | 1296 |
| Hotel Indigo | 54 | 5 | 9185 | 1977 |
| voco | 59 | 9 | 12463 | 3047 |
| Ruby | 19 | 19 | 3789 | 3789 |
| Crowne Plaza | 73 | 14 | 17202 | 3181 |
| EVEN Hotels | 2 | 2 | 555 | 555 |
| Holiday Inn Express | 100 | 11 | 15699 | 1360 |
| Holiday Inn | 127 | 13 | 23347 | 528 |
| Garner | 27 | (24) | 2808 | (2464) |
| Staybridge Suites | 15 | – | 2611 | 270 |
| Candlewood Suites | 10 | 2 | 1290 | 190 |
| Iberostar Beachfront Resorts | 1 | – | 271 | – |
| Other | – | (1) | – | (1780) |
| Total | 643 | 71 | 116866 | 13499 |
| Analysed by ownership type |  |  |  |  |
| Franchised<sup>a</sup> | 289 | 25 | 42730 | 5158 |
| Managed | 354 | 47 | 74136 | 8496 |
| Owned & leased | – | (1) | – | (155) |
| Total | 643 | 71 | 116866 | 13499 |

---

a.Includes exclusive partner hotels.

At 31 December 2025, the EMEAA

pipeline totalled 116,866 rooms

(643 hotels), representing 41%

of the region's system size.

In 2025, 43,409 rooms (248 hotels)

were signed, including 5,718 (30 hotels)

as part of the initial Ruby agreement.

Signings declined by 6,866 rooms

(23 hotels) year-on-year, as 2024

included 17,703 rooms (119 hotels)

as part of the NOVUM Hospitality

agreement.

Over a quarter of signings were in our

Luxury & Lifestyle brands, including

13 InterContinental properties, four

Regent hotels and two Six Senses

properties. Signings also included

19 Garner hotels marking the brand's

debut in India, Thailand and Italy,

and 14 Kimpton properties, including

the first for the brand in the UAE,

Morocco and Austria.

In 2025, 5,803 rooms (30 hotels)

were removed from the pipeline,

compared to 5,514 rooms (34 hotels)

in the prior year.

---

| |
|:---|
| **Total number of hotels in the pipeline**<br>643<br>2024: 572<br>|
| **Total number of rooms in the pipeline**<br>116,866<br>2024: 103,367<br>|

---

---

| | | |
|:---|:---|:---|
| 102 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Performance continued |
| Greater China |

---

![Perf_GreaterChina_Intro.jpg](ihg-20251231_g210.jpg)

"Trading performance

sequentially improved through

2025, and we achieved record

signings and openings."

Daniel Aylmer

**Chief Executive Officer, Greater China**

![21](ihg-20251231_g211.gif)

7%

**Greater China** 

**revenue 2025**

($165m)

---

| | |
|:---|:---|
| **Comparable RevPAR movement on previous year**<br>(12 months ended 31 December 2025) | **Comparable RevPAR movement on previous year**<br>(12 months ended 31 December 2025) |
| Fee business |  |
| Regent | 19.1% |
| InterContinental | (2.0)% |
| Hotel Indigo | 5.1% |
| HUALUXE | (1.6)% |
| Crowne Plaza | (2.9)% |
| Holiday Inn Express | (6.5)% |
| Holiday Inn | (4.9)% |
| All brands | (1.6)% |

---

**"Trading performance has shown** 

**sequential improvement through 2025,** 

**with resilient domestic demand and** 

**the return of international guests.** 

**We achieved record signings and** 

**openings, including Kimpton Tsim** 

**Sha Tsui in Hong Kong and the first** 

**brand portfolio and digital-enabled** 

**enterprise delivery, we are set to** 

**scale our growth across segments** 

**and elevate the quality of our** 

**estate and owner returns."** 

**Industry performance** 

**in 2025**

Greater China industry RevPAR

declined in the first eight months

before recovering in the remainder

![46](ihg-20251231_g212.gif)

of the year. For the full year, industry

RevPAR decreased by 2.0%, impacted

20%

**Greater China** 

**number of rooms**

(209,381)

by occupancy declines amid strong

supply growth, while average daily

rate remained broadly flat.

RevPAR declined year-on-year in all

tiers in Mainland China: Tier 1 decreased

by 0.8% as supply expanded faster

than demand; Tier 2 declined 4.6%

as demand contracted while supply

increased; Tier 3 reported the sharpest

decline at 5.3%, as significant supply

growth impacted occupancy; and

Tier 4 decreased 2.6%, as supply

growth outweighed otherwise solid

demand growth.

The supply-led occupancy compression

across Tiers 1-4 was partially offset

by strong performance in Hong Kong

SAR where RevPAR grew by 5.4%.

**IHG's regional performance** 

**in 2025**

IHG's comparable RevPAR in Greater

China declined by 1.6% year-on-year,

as occupancy growth of 0.5%pts was

offset by a 2.4% decline in average

daily rate.

In Mainland China, RevPAR decreased

by 3.0%. Tier 1 cities declined by

Atwell Suites, Shanghai Wuning, China.

0.3% and Tier 2–4 cities decreased

by 4.4%. RevPAR in Hong Kong SAR

increased by 10.1%.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 103 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Greater China results

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December |
| | 2025 | 2024 | 2025 vs <br>2024 <br>| 2023 | 2024 vs <br>2023<br>|
|  | $m | $m | % change | $m | % change |
| Revenue from the reportable segment<sup>a</sup> |  |  |  |  |  |
| Fee business | 165 | 161 | 2.5 | 161 | – |
| Total | 165 | 161 | 2.5 | 161 | – |
| Operating profit from the reportable segment<sup>a</sup> |  |  |  |  |  |
| Fee business | 99 | 98 | 1.0 | 96 | 2.1 |
| Operating profit | 99 | 98 | 1.0 | 96 | 2.1 |

---

**Review of the year** 

**ended 31 December 2025**

Comprising 209,381 rooms (882 hotels)

at 31 December 2025, Greater China

represented 20% of the Group's room

count. Historically, the Greater China

region has predominantly been a

managed market. Following increased

franchised openings in 2025, franchised

hotels now account for 40% of open

rooms and around half of the

region's pipeline.

Compared to 2024, overall Greater

China RevPAR decreased 3.5% in the

first quarter, 3.0% in the second quarter,

1.8% in the third quarter and then

increased 1.1% in the fourth quarter,

with a decline of 1.6% in the full year.

Overall, Business and Leisure demand

was broadly flat year-on-year, while

Groups declined.

Revenue from the reportable segment<sup>a</sup>

in 2025 of $165m represented a $4m

increase from the prior year, with

incremental revenue from system

growth more than offsetting the effect

of RevPAR decline in the comparable

estate and lower fee streams on

reduced non-room revenue. Incentive

management fees decreased from

$39m in 2024 to $36m in 2025.

Fee margin<sup>a</sup> reduced to 60.0%

compared to 60.9% in 2024, reflecting

strategic one-off cost investments

during the year and the reduction in

incentive management fees. Despite

these temporary headwinds, supported

by the benefits of our increasing scale

and cost efficiencies in the region,

operating profit increased by $1m (1.0%)

to $99m, underscoring the resilience of

the region's operating model.

a.Definitions for non-GAAP measures can be found on pages 107 to 112. Reconciliations of these measures to the most directly comparable line items

within the Group Financial Statements can be found on pages 250 to 256.

For discussion of 2024 results, and the changes compared to 2023, refer to the 2024 Annual Report and Form 20-F.

---

| | |
|:---|:---|
| **+** | More details online: <br>i[hgplc.com/investors](ihgplc.com/investors) under Annual Report. |
|  | More details online: <br>i[hgplc.com/investors](ihgplc.com/investors) under Annual Report. |

---

---

| | | |
|:---|:---|:---|
| 104 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Performance continued |
| Greater China continued |

---

**Greater China hotel and room count**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Hotels | Hotels | Rooms | Rooms |
| At 31 December | 2025 | Change over <br>2024<br>| 2025 | Change over <br>2024<br>|
| Analysed by brand |  |  |  |  |
| Six Senses | 1 | – | 130 | – |
| Regent | 6 | – | 2054 | – |
| InterContinental | 66 | 5 | 24631 | 1064 |
| Vignette Collection | 7 | 2 | 1785 | 520 |
| Kimpton | 5 | 2 | 1234 | 784 |
| Hotel Indigo | 35 | 7 | 5695 | 1234 |
| voco | 28 | 11 | 5372 | 1669 |
| HUALUXE | 24 | 2 | 6426 | 424 |
| Crowne Plaza | 138 | 8 | 45071 | 1693 |
| EVEN Hotels | 19 | 8 | 3310 | 1350 |
| Holiday Inn Express | 387 | 36 | 65282 | 4909 |
| Holiday Inn | 160 | 13 | 41648 | 3237 |
| Atwell Suites | 1 | 1 | 174 | 174 |
| Other | 5 | (2) | 6569 | (334) |
| Total | 882 | 93 | 209381 | 16724 |
| Analysed by ownership type |  |  |  |  |
| Franchised | 429 | 83 | 84740 | 14567 |
| Managed | 453 | 10 | 124641 | 2157 |
| Total | 882 | 93 | 209381 | 16724 |

---

Gross system size growth was 11.5%

year-on-year, with a record level

of 118 hotels (22,195 rooms) added

to our system in 2025.

During 2025, we celebrated our 800<sup>th</sup>

opening and IHG's 50<sup>th</sup> anniversary

in Greater China, and the milestone

of 200,000 rooms open in the region.

Openings were mainly in our Holiday Inn

Brand Family (11,686 rooms, 67 hotels).

Other openings included the debut of

Atwell in the region, 11 voco properties,

eight EVEN Hotels and two Kimpton

properties.

Removals included 5,471 rooms

(25 hotels) in the year, representing

a removal rate of 2.8%.

Net system size growth was 8.7%

year-on-year.

---

| |
|:---|
| **Total number of hotels**<br>882<br>2024: 789<br>|
| **Total number of rooms**<br>209,381<br>2024: 192,657<br>|

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
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| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Greater China pipeline**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Hotels | Hotels | Rooms | Rooms |
| At 31 December | 2025 | Change over <br>2024<br>| 2025 | Change over <br>2024<br>|
| Analysed by brand |  |  |  |  |
| Six Senses | 1 | – | 72 | 18 |
| Regent | 2 | – | 527 | – |
| InterContinental | 31 | 1 | 8811 | 431 |
| Vignette Collection | 9 | 3 | 2311 | 776 |
| Kimpton | 18 | 2 | 4216 | 22 |
| Hotel Indigo | 53 | (1) | 8629 | (356) |
| voco | 22 | 5 | 5451 | 1851 |
| HUALUXE | 23 | (1) | 6040 | (253) |
| Crowne Plaza | 75 | – | 19903 | (301) |
| EVEN Hotels | 20 | (4) | 3823 | (795) |
| Holiday Inn Express | 219 | 8 | 34181 | 1326 |
| Holiday Inn | 103 | 16 | 22468 | 1400 |
| Atwell Suites | 6 | 4 | 854 | 616 |
| Total | 582 | 33 | 117286 | 4735 |
| Analysed by ownership type |  |  |  |  |
| Franchised | 323 | 32 | 57295 | 5337 |
| Managed | 259 | 1 | 59991 | (602) |
| Total | 582 | 33 | 117286 | 4735 |

---

As at 31 December 2025, the pipeline

totalled 117,286 rooms (582 hotels),

representing 56% of the region's

system size.

Signings of 32,019 rooms represented

a record 178 hotels, and were ahead

of last year by 2,604 rooms (18 hotels).

More than half of signings were in

our Holiday Inn Brand Family. Other

notable signings included 16 voco

hotels, five Atwell and four Vignette

Collection properties in the region.

---

| |
|:---|
| **Total number of hotels in the pipeline**<br>582<br>2024: 549<br>|
| **Total number of rooms in the pipeline**<br>117,286<br>2024: 112,551<br>|

---

---

| | | |
|:---|:---|:---|
| 106 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Performance continued |
| Central |

---

Central results

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December |
| | 2025 | 2024 | 2025 vs <br>2024 <br>| 2023 | 2024 vs <br>2023<br>|
|  | $m | $m | % change | $m | % change |
| Revenue from the reportable segment<sup>a</sup> |  |  |  |  |  |
| Fee business | 336 | 239 | 40.6 | 200 | 19.5 |
| Insurance activities | 27 | 23 | 17.4 | 21 | 9.5 |
| Total | 363 | 262 | 38.5 | 221 | 18.6 |
| Gross costs |  |  |  |  |  |
| Fee business | (300) | (305) | (1.6) | (305) | – |
| Insurance activities | (36) | (29) | 24.1 | (23) | 26.1 |
| Total | (336) | (334) | 0.6 | (328) | 1.8 |
| Operating profit/(loss) from the reportable segment<sup>a</sup> |  |  |  |  |  |
| Fee business | 36 | (66) | NM<sup>b</sup> | (105) | (37.1) |
| Insurance activities | (9) | (6) | 50.0 | (2) | 200.0 |
|  | 27 | (72) | NM<sup>b</sup> | (107) | (32.7) |
| Operating exceptional items | (6) | – | NM<sup>b</sup> | – | NM<sup>b</sup> |
| Operating profit/(loss) | 21 | (72) | NM<sup>b</sup> | (107) | (32.7) |

---

a.Definitions for Non-GAAP measures can be found on pages 107 to 112. Reconciliations of these measures to the most directly comparable line items

within the Group Financial Statements can be found on pages 250 to 256.

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

prior period.

**Review of the year** 

**ended 31 December 2025**

Central fee business revenue is mainly

comprised of technology fee income,

co-brand licensing fees and a portion of

revenue from the consumption of

certain IHG One Rewards points. Central

revenue additionally includes revenue

recognised from insurance activities

relating to the managed hotel insurance

programme.

Central revenue increased by $101m

(38.5%) to $363m. This was primarily due

to incremental fees from previous

changes in the arrangements related to

the US co-brand credit card agreements

and from the sale of certain loyalty

points (together with certain other

ancillary revenues). These revenue

streams were anticipated to contribute

within IHG's results from reportable

segments<sup>a</sup> an incremental ~$40m and

~$25m, respectively, with these step-

changes achieved in 2025, along with

additional underlying growth.

Gross costs increased by $2m (0.6%)

year on year, driven by significant

individual claims in the insurance

programme, which were partially offset

by lower costs in the fee business driven

by our ongoing focus on efficiencies.

The resulting $27m operating profit from

the reportable segment<sup>a</sup>was an increase

of $99m year-on-year. Operating profit

of $21m included a $6m exceptional

cost in relation to the global efficiency

programme (further information on

exceptional items can be found in

note 6 to the Financial Statements).

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 107 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Key performance measures <br>and non-GAAP measures<br>

The Annual Report and Form 20-F presents certain financial measures when discussing the

Group's performance which are not measures of financial performance or liquidity under

International Financial Reporting Standards (IFRS).

In management's view, these measures provide investors and other stakeholders with an

enhanced understanding of IHG's operating performance, profitability, financial strength

and funding requirements.

These measures do not have standardised meanings under IFRS, and companies do not necessarily calculate these

in the same way. As these measures exclude certain items (for example, the costs of individually significant legal cases

or commercial disputes), they may be materially different to the measures prescribed by IFRS and may result in a more

favourable view of performance. Accordingly, they should be viewed as complementary to, and not as a substitute for,

the measures prescribed by IFRS and as included in the Group Financial Statements (see pages 250 to 256).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Linkage of performance measures to Directors' remuneration and KPIs** | **Linkage of performance measures to Directors' remuneration and KPIs** | **Linkage of performance measures to Directors' remuneration and KPIs** | **Linkage of performance measures to Directors' remuneration and KPIs** | **Linkage of performance measures to Directors' remuneration and KPIs** | **Linkage of performance measures to Directors' remuneration and KPIs** |
| **A** | **Annual Performance Plan** | **LT** | **Long Term Incentive Plan** | **KPI** | **Key Performance Indicators** |

---

---

| | |
|:---|:---|
| **+** | See pages 138 to 161 for more information on Directors' remuneration and pages 40 to 43 for more information on KPIs. |

---

---

| | |
|:---|:---|
| Measure | Commentary |

| **Total gross revenue** <br>**from hotels in IHG's** <br>**system**<br>Owned & leased <br>revenue as recorded <br>in the Group Financial <br>Statements is reconciled <br>to total gross revenue <br>on page 91.<br>| Total gross revenue is revenue not wholly attributable to IHG; however, management believes <br>this measure is meaningful to investors and other stakeholders as it provides a measure of <br>system performance, giving an indication of the strength of IHG's brands and the combined <br>impact of IHG's growth strategy and RevPAR performance.<br>Total gross revenue refers to revenue which IHG has a role in driving and from which IHG <br>derives an income stream. IHG's business model is described on pages 24 to 29. Total gross <br>revenue comprises:<br>–Total rooms revenue from franchised hotels;<br>–Total hotel revenue from managed and exclusive partner hotels including food and beverage, <br>meetings and other revenues, reflecting the value driven by IHG and the base upon which <br>fees are typically earned; and<br>–Total hotel revenue from owned & leased hotels.<br>Other than total hotel revenue from owned & leased hotels, total gross revenue is not revenue <br>attributable to IHG, as these managed, franchised and exclusive partner hotels are owned by <br>third parties.<br>Total gross revenue is used to describe this measure as it aligns with terms used in the Group's <br>management, franchise and exclusive partner agreements and, therefore, is well understood <br>by owners and other stakeholders.<br>|

---

**KPI**

**KPI**

---

| | | |
|:---|:---|:---|
| 108 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Performance continued |
| Key performance measures and non-GAAP measures continued |

---

---

| | |
|:---|:---|
| Measure | Commentary |
| **Revenue and operating** <br>**profit measures**<br>The reconciliation <br>of the most directly <br>comparable line item <br>within the Group <br>Financial Statements <br>(i.e. total revenue <br>and operating profit, <br>accordingly) to the non-<br>IFRS revenue and <br>operating profit <br>measures is included <br>on pages 250 to 256.<br>| Revenue and operating profit from (1) fee business, (2) owned & leased hotels, and (3) insurance <br>activities are described as 'revenue from reportable segments' and 'operating profit from reportable <br>segments', respectively, within note 2 to the Group Financial Statements. These measures are <br>presented insofar as they relate to each of the Group's regions and its Central functions.<br>Management believes revenue and operating profit from reportable segments are meaningful <br>to investors and other stakeholders as they exclude the following elements and reflect how <br>management monitors the business:<br>–System Fund and reimbursables – the System Fund is not managed to generate a surplus or deficit <br>for IHG over the longer term; it is managed for the benefit of the hotels within the IHG system. As <br>described within the Group's accounting policies (page 184), the System Fund is operated to collect <br>and administer cash assessments from hotel owners for specific purposes of use including marketing, <br>the Guest Reservation System, certain hotel services and the Group's loyalty programme. As described <br>within the Group's accounting policies (page 186) there is a cost equal to reimbursable revenues <br>so there is no profit impact. Cost reimbursements are not applicable to all hotels, and growth in <br>these revenues is not reflective of growth in the performance of the Group. As such, management <br>does not include these revenues in their analysis of results.<br>–Exceptional items – these are identified by virtue of their size, nature or incidence with <br>consideration given to consistency of treatment with prior years (including items that impact <br>more than one reporting period) and between gains and losses. Examples of exceptional items <br>include, but are not restricted to, gains and losses on the disposal of assets, impairment charges <br>and reversals, the costs of individually significant legal cases or commercial disputes and <br>reorganisation costs. As each item is different in nature and scope, there will be little continuity in <br>the detailed composition and size of the reported amounts which affect performance in successive <br>periods. Separate disclosure of these amounts facilitates the understanding of performance <br>including and excluding such items. The Group's accounting policy for exceptional items and <br>further detail of those items presented as such are included in the Group Financial Statements <br>(see pages 187 and 201).<br>In further discussing the Group's performance in respect of revenue and operating profit, <br>additional non-IFRS measures are used and explained further below:<br>–Underlying revenue;<br>–Underlying operating profit;<br>–Underlying fee revenue; and<br>–Fee margin.<br>Operating profit measures are, by their nature, before interest and tax. The Group's reported <br>operating profit additionally excludes remeasurement gains/losses on contingent purchase <br>consideration, which relates to financing of acquisitions. Management believes such measures <br>are useful for investors and other stakeholders when comparing performance across different <br>companies as interest and tax can vary widely across different industries or among companies <br>within the same industry. For example, interest expense can be highly dependent on a company's <br>capital structure, debt levels and credit ratings. In addition, the tax positions of companies can <br>vary because of their differing abilities to take advantage of tax benefits and because of the <br>tax policies of the various jurisdictions in which they operate.<br>Although management believes these measures are useful to investors and other stakeholders in <br>assessing the Group's ongoing financial performance and provide improved comparability between <br>periods, there are limitations in their use as compared to measures of financial performance under <br>IFRS. As such, they should not be considered in isolation or viewed as a substitute for IFRS measures. <br>In addition, these measures may not necessarily be comparable to other similarly titled measures <br>of other companies due to potential inconsistencies in the methods of calculation.<br>|
| **Underlying revenue** <br>**and underlying** <br>**operating profit**<br>| These measures adjust revenue from reportable segments and operating profit from reportable <br>segments, respectively, to exclude revenue and operating profit generated by owned & leased hotels <br>which have been disposed, and significant liquidated damages, which are not comparable year-on-year <br>and are not indicative of the Group's ongoing profitability. The revenue and operating profit of current <br>year acquisitions are also excluded as these obscure underlying business results and trends when <br>comparing to the prior year. In addition, in order to remove the impact of fluctuations in foreign <br>exchange, which would distort the comparability of the Group's operating performance, prior year <br>measures are restated at constant currency using current year exchange rates.<br>Management believes these are meaningful to investors and other stakeholders to better <br>understand comparable year-on-year trading and enable assessment of the underlying trends <br>in the Group's financial performance.<br>|

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 109 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| | |
|:---|:---|
| Measure | Commentary |
| **Revenue and operating** <br>**profit measures** <br>continued<br>**Underlying fee** <br>**revenue growth**<br>| Underlying fee revenue is used to calculate underlying fee revenue growth. Underlying fee <br>revenue is calculated on the same basis as underlying revenue as described above but for the <br>fee business only.<br>Management believes underlying fee revenue is meaningful to investors and other stakeholders as <br>an indicator of IHG's ability to grow the core fee-based business, aligned to IHG's asset-light strategy.<br>|
| **Fee margin** | Fee margin is presented at actual exchange rates and is a measure of the profit arising from <br>fee revenue. Fee margin is calculated by dividing fee operating profit by fee revenue. Fee revenue <br>and fee operating profit are calculated from revenue from reportable segments and operating <br>profit from reportable segments, as defined above, adjusted to exclude revenue and operating <br>profit from the Group's owned & leased hotels as well as from insurance activities and significant <br>liquidated damages.<br>Management believes fee margin is meaningful to investors and other stakeholders as an indicator <br>of the sustainable long-term growth in the profitability of IHG's core fee-based business, as the <br>scale of IHG's operations increases with growth in IHG's system size.<br>|
| **Adjusted interest**<br>Financial income and <br>financial expenses as <br>recorded in the Group <br>Financial Statements is <br>reconciled to adjusted <br>interest on page 255.<br>| Adjusted interest is presented before exceptional items and the following items of interest which <br>are recorded within the System Fund:<br>–Interest income is recorded in the System Fund on the outstanding cash balance relating to the <br>IHG loyalty programme. These interest payments are recognised as interest expense for IHG.<br>–Other components of System Fund interest income and expense, including capitalised interest, <br>lease interest expense and interest income on overdue receivables.<br>Given results related to the System Fund are excluded from adjusted measures used by management, <br>these are excluded from adjusted interest and adjusted earnings per ordinary share (see below).<br>Management believes adjusted interest is a meaningful measure for investors and other <br>stakeholders as it provides an indication of the comparable year-on-year expense associated with <br>financing the business including the interest on any balance held on behalf of the System Fund.<br>|
| **Adjusted tax**<br>The tax expense and <br>the tax rate as recorded <br>in the Group Financial <br>Statements are <br>reconciled to adjusted <br>tax and the adjusted <br>tax rate on page 256.<br>| Adjusted tax excludes the impact of foreign exchange gains/losses, exceptional items, the System <br>Fund and remeasurement gains/losses on contingent consideration. Foreign exchange gains/losses <br>vary year on year depending on the movement in exchange rates, and remeasurement gains/losses <br>on contingent consideration and exceptional items also vary year on year. These can impact the <br>current year's tax charge. The System Fund (including interest and tax) is not managed to a surplus <br>or deficit for IHG over the longer term and is, in general, not subject to tax. Management believes <br>removing these from both profit and tax provides a better view of the Group's underlying tax rate <br>on ordinary operations and aids comparability year on year, thus providing a more meaningful <br>understanding of the Group's ongoing tax charge.<br>|
| **Adjusted earnings** <br>**per ordinary share**<br>Profit available for <br>equity holders is <br>reconciled to adjusted <br>earnings per ordinary <br>share on page 256.<br>| Adjusted earnings per ordinary share adjusts the profit available for equity holders used in <br>the calculation of basic earnings per share to remove the System Fund and reimbursable result, <br>interest attributable to the System Fund and foreign exchange gains/losses, change in remeasurement <br>gains/losses on contingent purchase consideration, exceptional items, and the related tax impacts <br>of such adjustments and exceptional tax.<br>Management believes that adjusted earnings per share is a meaningful measure for investors <br>and other stakeholders as it provides a more comparable earnings per share measure aligned <br>with how management monitors the business.<br>|

---

**KPI**

**KPI**

**KPI**

**KPI**

---

| | | |
|:---|:---|:---|
| 110 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Performance continued |
| Key performance measures and non-GAAP measures continued |

---

---

| | |
|:---|:---|
| Measure | Commentary |
| **Net debt**<br>Net debt is included in <br>note 22 to the Group <br>Financial Statements.<br>| Net debt is used in the monitoring of the Group's liquidity and capital structure and is used by <br>management in the calculation of the leverage ratios with the objective of maintaining an investment <br>grade credit rating. Net debt is used by investors and other stakeholders to evaluate the financial <br>strength of the business.<br>Net debt comprises loans and other borrowings, lease liabilities, the principal amounts payable <br>and receivable on maturity of derivatives swapping debt values, less cash and cash equivalents. <br>A summary of the composition of net debt is included in note 22 to the Group Financial Statements.<br>|
| **Adjusted EBITDA**<br>Cash from operations as <br>recorded in the Group <br>Financial Statements is <br>reconciled to adjusted <br>EBITDA on page 89.<br>| One of the key measures used by the Group in monitoring its debt and capital structure is the <br>net debt: adjusted EBITDA ratio, which is managed with the objective of maintaining an investment-<br>grade credit rating. The Group has a stated aim of targeting this ratio at 2.5-3.0x. Adjusted EBITDA <br>is defined as cash flow from operations, excluding cash flows relating to exceptional items, <br>cash flows arising from the System Fund and reimbursable result, other non-cash adjustments <br>to operating profit or loss, working capital and other adjustments, and contract acquisition costs.<br>Adjusted EBITDA is useful to investors as an approximation of operational cash flow generation.<br>|
| **Adjusted free cash** <br>**flow, gross capital** <br>**expenditure, net** <br>**capital expenditure**<br>The reconciliation of the <br>Group's statement of <br>cash flows (i.e. net cash <br>from investing activities, <br>net cash from operating <br>activities, accordingly) to <br>the non-IFRS cash flow <br>measures and capital <br>expenditure is included <br>on pages 254 to 255.<br>| These measures have limitations as they omit certain components of the overall cash flow <br>statement. They are not intended to represent IHG's residual cash flow available for discretionary <br>expenditures, nor do they reflect the Group's future capital commitments. These measures are <br>used by many companies, but there can be differences in how each company defines the terms, <br>limiting their usefulness as a comparative measure. Therefore, it is important to view these <br>measures only as a complement to the Group statement of cash flows.<br>|
| **Adjusted free cash flow** | Adjusted free cash flow is net cash from operating activities adjusted for: (1) the inclusion of the cash <br>outflow arising from the purchase of shares by employee share trusts reflecting the requirement <br>to satisfy incentive schemes which are linked to operating performance; (2) the inclusion of gross <br>maintenance capital expenditure; (3) the exclusion of cash flows relating to exceptional items; and <br>(4) where cash flows are split between categories in the Group statement of cash flows, cash flows <br>from investing or financing activities may be included or excluded in adjusted free cash flow to <br>maintain consistency of the measure. This includes: (a) the inclusion of the principal element of <br>lease payments; (b) the exclusion of payments of deferred or contingent purchase consideration <br>included within net cash from operating activities; (c) the exclusion of interest receipts related to <br>owner loans within net cash from operating activities (d) the exclusion of recyclable investments <br>in contract acquisition costs within net cash from operating activities; (e) the inclusion of payments <br>and repayments related to investments supporting the Group's insurance activities; (f) the inclusion <br>of finance lease income relating to sub-leases where payments on the headlease are included in (a); <br>(g) the exclusion of any lease incentives recorded within operating activities.<br>Management believes adjusted free cash flow is a useful measure for investors and other <br>stakeholders as it represents the cash available to invest back into the business to drive future <br>growth and pay the ordinary dividend, with any surplus being available for additional returns to <br>shareholders. It is a key component in measuring the ongoing viability of our business and is a <br>key reference point to our investment case.<br>|

---

**LT**

**KPI**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 111 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| | |
|:---|:---|
| Measure | Commentary |
| **Adjusted free cash** <br>**flow, gross capital** <br>**expenditure, net** <br>**capital expenditure** <br>continued<br>**Gross capital** <br>**expenditure**<br>| Gross capital expenditure represents the consolidated capital expenditure of IHG inclusive of <br>System Fund capital investments (see page 27 for a description of System Fund capital investments <br>and recent examples).<br>Gross capital expenditure is defined as net cash from investing activities, adjusted to include <br>contract acquisition costs and to exclude payments and repayments related to investments <br>supporting the Group's insurance activities and changes in bank accounts pledged as security. <br>In order to demonstrate the capital outflow of the Group, cash flow receipts such as those arising <br>from disposals and distributions from associates and joint ventures, and finance lease income, <br>are excluded. Lease incentives and similar contributions received are included in gross capital <br>expenditure as they directly reduce the Group's outlay. The measure also excludes any material <br>investments made in acquiring businesses (including brands), including any subsequent payments <br>of deferred or contingent purchase consideration included within investing activities, which <br>represent ongoing payments for acquisitions.<br>Gross capital expenditure is reported as key money, maintenance, recyclable or System Fund. <br>Contract acquisition costs are defined as either key money or recyclable, depending on whether <br>they form part of other recyclable investments, such as any difference between the face and <br>market value of an owner loan on inception. This disaggregation provides useful information <br>as it enables users to distinguish between:<br>–Key money, which reflects amounts paid to owners to secure management and franchise <br>agreements;<br>–Maintenance capital expenditure, which reflects investments to maintain our systems, <br>corporate offices and owned & leased hotels;<br>–System Fund capital investments which are strategic investments to drive growth at hotel level; <br>and<br>–Recyclable investments, such as all investments in associates and joint ventures and any <br>loans to facilitate third-party ownership of hotel assets, which are generally intended to be <br>recoverable in the medium term and are to drive growth of the Group's brands and expansion <br>in primary markets.<br>Management believes gross capital expenditure is a useful measure as it illustrates how the Group <br>continues to invest in the business to drive growth. It also allows for comparison year-on-year.<br>|
| **Net capital expenditure** | Net capital expenditure provides an indicator of the capital intensity of IHG's business model. <br>Net capital expenditure is derived from net cash from investing activities, which includes receipts <br>such as those arising from disposals and distributions from associates and joint ventures, adjusted <br>to include contract acquisition costs (net of repayments) and interest receipts from owner loans, <br>and to exclude payments and repayments related to investments supporting the Group's insurance <br>activities, changes in bank accounts pledged as security, finance lease income and any material <br>investments made in acquiring businesses (including brands), including any subsequent payments <br>of deferred or contingent purchase consideration included within investing activities which are <br>typically non-recurring in nature.<br>In addition, System Fund depreciation and amortisation relating to property, plant and equipment <br>and intangible assets, respectively, is added back, reducing the overall cash outflow. This reflects <br>the way in which System Funded capital investments are recovered from the System Fund, <br>over the life of the asset (see page 27).<br>Management believes net capital expenditure is a useful measure as it illustrates the net capital <br>investment by IHG, after taking into account capital recycling through asset disposal and the <br>funding of strategic investments by the System Fund. It provides investors and other stakeholders <br>with visibility of the cash flows which are allocated to long-term investments to drive the <br>Group's strategy.<br>|

---

---

| | | |
|:---|:---|:---|
| 112 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Performance continued |
| Key performance measures and non-GAAP measures continued |

---

**Changes in definitions to** 

**the 2024 Annual Report** 

**and Accounts**

The definition of 'Adjusted interest'

has been updated and prior year

reconciliations re-presented. An

adjustment was previously made to

remove foreign exchange gains and

losses, but these are now reported

separately in the Group Income

Statement. This change does not

affect total adjusted interest.

Other changes seek to add clarity

to the definitions and reconciliations

by aligning with terminology used

in the Group financial statements.

**Change in terminology**

The descriptor 'Owned, leased and

managed lease' has been renamed

to 'Owned & leased' for brevity.

The definition remains unchanged

and reflects hotels operated by IHG

where IHG is, or effectively acts as,

the owner, with responsibility for

assets, employees and running

costs. The entire revenue and profit

of the hotels are recorded in IHG's

financial statements.

---

| | |
|:---|:---|
| **+** | The performance review should be <br>read in conjunction with the Non-GAAP <br>reconciliations on pages 250 to 256 <br>and the Glossary on pages 297 to 299. |
|  | The performance review should be <br>read in conjunction with the Non-GAAP <br>reconciliations on pages 250 to 256 <br>and the Glossary on pages 297 to 299. |
|  | The performance review should be <br>read in conjunction with the Non-GAAP <br>reconciliations on pages 250 to 256 <br>and the Glossary on pages 297 to 299. |
|  | The performance review should be <br>read in conjunction with the Non-GAAP <br>reconciliations on pages 250 to 256 <br>and the Glossary on pages 297 to 299. |

---

![KeyPerfMeasures_image1.jpg](ihg-20251231_g213.jpg)

Crowne Plaza Manila, Philippines.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 113 |
| **[Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)**<br>**[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)** | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Viability statement<br>

The Directors have determined that a

three-year period ending 31 December

2028 is appropriate for the viability

statement. The Group's annual financial

planning process prepares a three-year

plan that incorporates principal risks,

strategic priorities, and prevailing market

conditions. This plan is reviewed by the

Directors and provides the overarching

framework for strategic and longer-term

decision-making across the business.

**Principal risks**

The relative strength and resilience

of the IHG business model to

severe shocks has been proven by

performance through the Covid-19

pandemic, with positive cash flows

being generated through one of the

most challenging periods of trading in

the history of the industry. In assessing

the viability of the Group, the Directors

have considered the impact of the

principal risks as outlined on pages

[48](#i769f0d208daf492189183d8187cdfa19_20431) to 53. The discussion on those pages

includes a description of why these

risks are important to the achievement

of our objectives and how the Group

manages these risks.

We have considered which principal

risks could have the most significant

and direct impact to the viability of the

Group during the three-year period of

assessment and they are shown below,

alongside the scenario that is used to

model those risks.

---

| | |
|:---|:---|
| **Viability scenarios and assumptions** | **Viability scenarios and assumptions** |
| Trading and profitability improved in <br>2025 reflecting the continued growth <br>in travel demand and our increase <br>in net system size. Our efficient <br>operating model resulted in Group <br>adjusted free cash flow<sup>a</sup> of $893m <br>during 2025 and net debt<sup>a</sup> increased <br>by $551m, after $1,167m of ordinary <br>dividends and the share buyback. <br>The Group's business model is <br>discussed in more detail on <br>pages 24 to 29.<br>There is a range of possible planning <br>scenarios over the three-year period <br>considered in this review due to <br>macro uncertainties and geopolitical <br>risks affecting markets in each of our <br>regions. In assessing the viability of the <br>Group, the Directors have reviewed <br>a number of scenarios, weighting <br>downside risks that would threaten the <br>business model, future performance, <br>solvency and liquidity of the Group <br>more heavily than opportunities.<br>In performing the viability analysis, <br>the Directors have considered a <br>'Base Case' which assumes that global <br>RevPAR in 2026 to 2028 continues <br>to grow in line with market expectations <br>in each of our regions.<br>| The assumptions applied in the <br>viability assessment are consistent <br>with those used for Group planning <br>purposes, the going concern <br>assessment, for impairment testing <br>and for assessing recoverability <br>of deferred tax assets (see further <br>detail on page 183).<br>The Directors have also reviewed <br>a 'Severe Downside Case' reflecting <br>a severe but plausible scenario <br>equivalent to the market conditions <br>experienced through the 2008-09 <br>global financial crisis, in which <br>RevPAR declines by 17% in 2026 <br>before recovering by 5% in both <br>2027 and 2028. <br>A 'Combined Scenario' has also been <br>considered, modelling the Severe <br>Downside Case in conjunction <br>with a significant cash flow impact <br>from a one-off event, such as <br>a cybersecurity incident. <br>The viability assessment has been <br>undertaken by evaluating the Base <br>Case, Severe Downside Case and <br>Combined Scenario with reference <br>to the Group's available liquidity.<br>|

---

---

| | |
|:---|:---|
| Scenarios modelled | Related to principal risks |
| **Severe Downside Case**<br>This models a prolonged decrease <br>in RevPAR, which may be driven <br>by external or internal factors.<br>| –Operational resilience to incidents <br>or disruption or control breakdown <br>(including geopolitical, safety <br>and security, cybersecurity, fraud <br>and health-related).<br>–Guest preferences for, or loyalty to, <br>IHG-branded hotel experiences <br>and channels.<br>–Talent and capability attraction, <br>retention and development.<br>–Our ability to deliver technological <br>or digital performance or innovation <br>(at scale, speed etc).<br>–Owner preferences for or ability <br>to invest in our brands.<br>|
| **Combined Scenario**<br>This models the Severe Downside <br>Case and the impact of a specific <br>material incident, which could relate to <br>cybersecurity or an alternative material <br>impact on the cash flow statement.<br>| All of the risks above, and<br>–Data and information usage, <br>storage and transfer.<br>–Legal, regulatory and contractual <br>complexity or litigation exposures.<br>|

---

a.Definitions for Non-GAAP measures can be found on pages 107 to [112](#ibcf92c8dbf33443087f3ff86c728d6e5_1910). Reconciliations of these measures to the most directly comparable line items

within the Group Financial Statements can be found on pages [250](#i99b3022383644c6db07b66c944e8c509_357) to [256](#i692aa21ed66a4b14a81e88e2311f822f_57).

---

| | | |
|:---|:---|:---|
| 114 | IHG | Annual Report and Form 20-F 2025 |

---

Viability statement continued<br>

We have also considered the principal

risks that may impact the viability of the

Group over a longer period; for example,

the impact of climate-related physical

and transition risks. The physical and

transition climate risks to which IHG is

most exposed are discussed in the TCFD

statement on pages 77 to 81. Physical

risks are not considered material to

the long-term viability of the Group,

and transition risks present both

opportunities and risks. While some

transition risks have been assessed as

being potentially material to the Group

over the next one to five years under

a 1.5°C scenario, this scenario is not

considered a likely outcome, leading

to the probability of a material impact

on the Group's viability assessment

through 31 December 2028 as low.

**Funding**

The Group's revolving credit facility

(RCF) was refinanced in December 2025

with a new $1,500m facility. The facility

has an initial five-year term, maturing

in December 2030, with two additional

one-year extension options. There are

no financial covenants in the new facility.

See note 23 to the Group Financial

Statements for further details.

In September 2025, the Group issued

a five-year €850m bond. There are

three bond maturities in the period

under consideration: £350m in August

2026, €500m in May 2027 and £400m

in October 2028. It has been assumed

that there is an annual bond issuance

up to one year in advance of maturities.

We continue to plan to maintain an

investment-grade credit rating, which

provides good access to the debt

capital markets.

---

| |
|:---|
| **Viability assessment** |
| The Group enters the assessment period with substantial liquidity at <br>31 December 2025 of $2,599m, comprising cash and cash equivalents <br>(net of overdrafts and restricted cash) of $1,099m plus an undrawn <br>bank facility of $1,500m.<br>Under the Base Case, Severe Downside Case and Combined Scenario, <br>the Group is forecast to generate positive free cash flow over the 2026–28 <br>period. The principal risks that could be applicable have been considered <br>and are able to be absorbed within the liquidity available.<br>The Directors reviewed a number of actions that could be taken if required <br>to reduce discretionary spend, creating substantial additional liquidity.<br>The Directors reviewed a reverse stress test scenario to determine what would <br>be required to exhaust the liquidity in the Combined Scenario. This included <br>modelling no refinancing available during the period of assessment. The <br>Directors concluded that it was very unlikely that a single risk or combination <br>of the risks considered could create the sustained impact required to <br>threaten the viability of the Group. |

---

**Conclusion**

The Directors have assessed the

viability of the Group over the three-year

period to 31 December 2028, taking

account of the Group's current position,

the Group's strategy and the principal

risks documented in the Strategic

Report. Based on this assessment, the

Directors have a reasonable expectation

that the Group will be able to continue

in operation and meet its liabilities

as they fall due over the period to

31 December 2028.

See also our business model on pages

24 to 29 the going concern assessment

on page [183](#i39206f57a9214006b97933da74f0a7c9_69436) and the impact of the

principal risks on pages [48](#i769f0d208daf492189183d8187cdfa19_20431) to 53.

For and on behalf of the Board

![IHG_Signature_Elie_Maalouf.jpg](ihg-20251231_g214.jpg)

Elie Maalouf

Chief Executive Officer

16 February 2026

![IHG_Signature_Michael_Glover_v3.jpg](ihg-20251231_g215.jpg)

Michael Glover

Chief Financial Officer

16 February 2026

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 115 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

![Governance_divider.jpg](ihg-20251231_g216.jpg)

---

| | |
|:---|:---|
| In this section | In this section |
| [Chair's overview](#i8de52f7da8cb42fcba7bb475e53ba9b6_151) | [116](#i8de52f7da8cb42fcba7bb475e53ba9b6_151) |
| [Changes to the Board, and its Committees,](#i22404849fa8840f693f37c64fedc41ff_0-0-4-3-345997)<br>[and Executive Committee](#i22404849fa8840f693f37c64fedc41ff_0-0-4-3-345997)<br>| [117](#i22404849fa8840f693f37c64fedc41ff_0-0-4-3-345997) |
| [Board and Committee membership](#i50fa970a9a22443d9c54ff79ff131daa_0-0-2-1-345997)<br>[and attendance in 202](#i50fa970a9a22443d9c54ff79ff131daa_0-0-2-1-345997)5<br>| [117](#i50fa970a9a22443d9c54ff79ff131daa_0-0-2-1-345997) |
| [Our Board of Directors](#i8de52f7da8cb42fcba7bb475e53ba9b6_154) | [118](#i8de52f7da8cb42fcba7bb475e53ba9b6_154) |
| [Our Executive Committee](#i8de52f7da8cb42fcba7bb475e53ba9b6_157) | [120](#i8de52f7da8cb42fcba7bb475e53ba9b6_157) |
| [Governance structure](#i8de52f7da8cb42fcba7bb475e53ba9b6_160) | [122](#i8de52f7da8cb42fcba7bb475e53ba9b6_160) |
| [Board activities](#i8de52f7da8cb42fcba7bb475e53ba9b6_163) | [123](#i8de52f7da8cb42fcba7bb475e53ba9b6_163) |
| [Key areas of focus during the year](#i8de52f7da8cb42fcba7bb475e53ba9b6_166) | [123](#i8de52f7da8cb42fcba7bb475e53ba9b6_166) |
| [Key matters discussed in 2025](#i8de52f7da8cb42fcba7bb475e53ba9b6_169)<br>[and Section 172 statement](#i8de52f7da8cb42fcba7bb475e53ba9b6_169)<br>| [124](#i8de52f7da8cb42fcba7bb475e53ba9b6_169) |
| [Our shareholders and investors](#i8de52f7da8cb42fcba7bb475e53ba9b6_172) | [126](#i8de52f7da8cb42fcba7bb475e53ba9b6_172) |
| [Board](#i8de52f7da8cb42fcba7bb475e53ba9b6_175) Performance Review | [127](#i8de52f7da8cb42fcba7bb475e53ba9b6_175) |
| [Audit Committee Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_178) | [128](#i8de52f7da8cb42fcba7bb475e53ba9b6_178) |
| [Responsible Business Committee Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_181) | [134](#i8de52f7da8cb42fcba7bb475e53ba9b6_181) |
| [Nomination Committee Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_184) | [136](#i8de52f7da8cb42fcba7bb475e53ba9b6_184) |
| [Directors' Remuneration Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_187) | [138](#i8de52f7da8cb42fcba7bb475e53ba9b6_187) |
| [Statement of compliance](#i8de52f7da8cb42fcba7bb475e53ba9b6_202) | [162](#i8de52f7da8cb42fcba7bb475e53ba9b6_202) |

---

Hotel Indigo Galapagos, Ecuador.

---

| | | |
|:---|:---|:---|
| 116 | IHG | Annual Report and Form 20-F 2025 |

---

Chair's overview<br>

![Chair_headshot.jpg](ihg-20251231_g5.jpg)

"The Board remained focused on

disciplined execution and governance

throughout 2025 as the Group

advanced its strategy and strengthened

culture and resilience."

Deanna Oppenheimer

**Chair of the Board**

During 2025, the Board strived to ensure

that the Group maintained a robust and

resilient governance framework as it pursued

its strategic objectives against the backdrop

of a volatile geopolitical environment

and ongoing economic uncertainty.

Recognising the importance of aligning

organisational culture with long-term

strategy, the Board undertook an in-depth

review of the Group's culture, with

particular emphasis on strengthening a

performance culture (further information

on the performance culture is included

on page 62). This work was informed by

insights from organisational assessments

and external research and benchmarking,

alongside consideration of how the Group's

growth behaviours are embedded across

the business. The Board also reviewed the

Group's approach to change management

and communication, key people priorities

such as recruitment, talent development,

succession planning and reward, and

evaluated the leadership capabilities

required to sustain and evolve the

performance culture.

The Board also continued its oversight

of cybersecurity, receiving regular updates

on the Group's cyber-risk profile, key threat

trends and the effectiveness of controls.

It reviewed progress in strengthening

resilience, including enhancements to

detection, response and disaster-recovery

capabilities, and considered assurance

findings to ensure the Group maintains

robust protection against evolving

cyber threats.

Throughout the year, I and other members

of the Board were pleased to further

engage with shareholders, hotel owners

and colleagues.

The Board undertook an extensive shareholder

consultation exercise, particularly in relation

to the Company's approach to remuneration

and the Directors' Remuneration Policy

approved during the year. We also enjoyed

engaging with and hearing directly from hotel

owners and a variety of colleagues as part

of market visits to hotels and the Group's

corporate offices.

During my short-term medical leave of absence,

Graham Allan, our Senior Independent

Non-Executive Director, assumed the

responsibilities of Chair of the Board and

Chair of the Nomination Committee on an

interim basis. Graham brought deep board and

leadership experience to the role, ensuring

continuity and demonstrating the Board's

focus on its strategic and governance

priorities. I would like to thank Graham for

his contribution and keeping the Board

operating seamlessly during this period.

**Focus areas and activities**

In addition to the areas outlined above,

during 2025 the Board continued to

oversee the Group's growth ambitions,

supporting and approving the Group's

acquisition of the Ruby brand and the

launch of a new premium collection brand.

The Board also supported the strengthening

of the Group's financial resilience and liquidity

profile through approval of an €850 million

bond issuance and the refinancing of the

Group's $1.5 billion revolving credit facility.

Developments in the technology and

AI spaces also featured prominently on

the Board agenda. The Board considered

the Group's approach to AI opportunities,

including initiatives deployed as part of

efficiency and effectiveness workstreams,

as well as AI's impact on customer

acquisition and the broader industry, and

this will continue to be a focus in 2026.

The Board also continued to monitor the

Group's approach to disaster recovery,

with particular focus on third-party risks

and supply chain dependency.

More information on the Board's activities

during the year is given on pages 123 to 126.

**Board composition**

While no new appointments to or

resignations from the Board took effect

during the year, we announced the

appointment of Nicholas Cadbury as a

Non-Executive Director to be effective from

1 March 2026. Nicholas' global hospitality

and travel sector knowledge, together with

his expertise across finance, technology,

sustainability and commercial property,

will bring significant value to the Board.

Information on Nicholas' appointment is

included in the Nomination Committee

Report on pages 136 and 137.

In line with UK corporate governance

requirements and recommendations

on Board gender and diversity, our Board

continues to meet the FTSE Women Leaders

Review recommendations for women

on a FTSE 100 Board. With regard to

the Parker Review, which looks at the

ethnic diversity of UK boards and senior

management in FTSE 350 companies,

IHG exceeds the recommendations

set by the review with three ethnically

diverse directors as shown on page 121.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 117 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Committee activities**

The Board delegates certain responsibilities

to its Committees to assist in ensuring

effective corporate governance across

the business. During 2025:

–the Audit Committee focused on

assessing the Group's financial and non-

financial governance and monitoring its

risk management and internal control

framework (see its report on pages

128 to 133);

–the Remuneration Committee focused

on executive reward, the Directors'

Remuneration Policy and the approach to

performance management and reward

(see its report on pages 138 to 161);

–the Responsible Business Committee

focused on progress against the

2025 responsible business priorities,

which support the Group's Journey

to Tomorrow responsible business plan

(see its report on pages 134 and 135); and

–the Nomination Committee focused

on Board composition, the continued

development of Executive Committee

succession plans and the internal

performance review (see its report

on pages 136 and 137).

Further detail on the Group's governance

structure is given on page 122.

**Board performance review**

During the year, an internal review

of the performance of the Board and

its Committees was undertaken. I am

pleased to report that, overall, the review

supported the positive conclusions of

the Board and its Committees as to their

performance. Further details of the internal

performance review can be found on

page 127. Individual director feedback

assessments were also conducted,

details of which can be found on page 127.

**Compliance and** 

**our dual listing**

IHG continues to operate as a dual-listed

company with a premium listing on

the London Stock Exchange (LSE) and

a secondary listing on the New York

Stock Exchange (NYSE). Under the UK

listing rules, we are obliged to make a

statement as to how we have applied

the principles of the UK Corporate

Governance Code (the Code).

Under the NYSE listing rules, as a

foreign private issuer, we are required

to disclose any significant ways in which

our corporate governance practices

differ from those of US companies.

To ensure consistency of information

provided to both UK and US investors,

we produce a combined Annual Report

and Form 20-F.

Our statement of compliance with

the Code is on pages 162 and 163.

A summary outlining the differences

between the Group's UK corporate

governance practices and those

followed by US companies can be

found on page 284.

**Looking forward**

In 2026, the Board will focus on

the continued delivery of the Group's

strategic objectives, while ensuring

that a robust governance framework

is maintained.

![DeannaOppenheimer_sig.jpg](ihg-20251231_g6.jpg)

Deanna Oppenheimer

Chair of the Board

16 February 2026

---

| | |
|:---|:---|
| **Changes to the Board, and its Committees, and Executive Committee** | **Changes to the Board, and its Committees, and Executive Committee** |
| Nicholas Cadbury | Nicholas was appointed to the Board as a Non-Executive Director with effect from 1 March 2026 |
| Wayne Hoare | Wayne retired from his role as Chief Human Resources Officer and the Executive Committee on 31 December 2025 |
| Tejas Katre | Tejas was appointed to the Executive Committee as Chief Human Resources Officer from 1 January 2026 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Board and Committee membership** <br>**and attendance in 2025** | Appointment <br>date | Additional/ <br>Committee <br>appointments | Board | Audit <br>Committee<sup>a</sup> | Responsible <br>Business <br>Committee | Nomination <br>Committee | Remuneration <br>Committee  |
| **Board and Committee membership** <br>**and attendance in 2025** | Appointment <br>date | Additional/ <br>Committee <br>appointments | Board | Audit <br>Committee<sup>a</sup> | Responsible <br>Business <br>Committee | Nomination <br>Committee | Remuneration <br>Committee  |
| Total meetings held |  |  | 8 | 5 | 4 | 6 | 5 |
| Chair |  |  |  |  |  |  |  |
| Deanna Oppenheimer<sup>b</sup> | 01/06/22 | N, R | 6/8 | – | – | 4/6 | 3/5 |
| Chief Executive Officer | Chief Executive Officer |  |  |  |  |  |  |
| Elie Maalouf | 01/01/18 |  | 8/8 | – | – | – | – |
| Executive Director |  |  |  |  |  |  |  |
| Michael Glover | 20/03/23 |  | 8/8 | – | – | – | – |
| Senior Independent Non-Executive <br>Director |  |  |  |  |  |  |  |
| Graham Allan | 01/09/20 | A, N, RB, SID | 8/8 | 5/5 | 4/4 | 6/6 | – |
| Non-Executive Directors | Non-Executive Directors |  |  |  |  |  |  |
| Arthur de Haast | 01/01/20 | A, RB | 8/8 | 5/5 | 4/4 | – | – |
| Duriya Farooqui<sup>c</sup> | 07/12/20 | VoE, A, RB | 7/8 | 5/5 | 4/4 | – | – |
| Byron Grote | 01/07/22 | A, N, R | 8/8 | 5/5 | – | 6/6 | 5/5 |
| Sir Ron Kalifa | 01/01/24 | A, R | 8/8 | 5/5 | – | – | 5/5 |
| Angie Risley | 01/09/23 | N, R, RB | 8/8 | – | 4/4 | 6/6 | 5/5 |
| Sharon Rothstein | 01/06/20 | A, RB | 8/8 | 5/5 | 4/4 | – | – |

---

a.In principle, the full Board attends the relevant sections of the Audit Committee meetings when financial results are considered.

b.Deanna Oppenheimer did not attend the Board or Committee meetings during her short-term medical leave of absence.

c.Duriya Farooqui was not able to attend a Board meeting due to a prior commitment.

**Board Committee membership and additional appointments key**<br>

A Audit Committee memberSID Senior Independent Non-Executive Director

R Remuneration Committee memberVoE Non-Executive Director responsible for workforce engagement – Voice of the Employee

RB Responsible Business Committee member

N Nomination Committee member

(Ch) Chair of a Board Committee

---

| | | |
|:---|:---|:---|
| 118 | IHG | Annual Report and Form 20-F 2025 |

---

Our Board of Directors<br>**At 16 February 2026, our Board of Directors comprises:**<br>

![DeannaOppenheimer.jpg](ihg-20251231_g217.jpg)

![ElieMaalouf.jpg](ihg-20251231_g218.jpg)

---

| | |
|:---|:---|
| **Deanna** <br>**Oppenheimer**<br>Non-Executive Chair | **Deanna** <br>**Oppenheimer**<br>Non-Executive Chair |
| Appointed to the Board: <br>1 June 2022 | Appointed to the Board: <br>1 June 2022 |
| Committee membership: | Committee membership: |
| N | R |

---

Deanna is the founder of CameoWorks,

LLC, an advisory firm supporting

C-suite leaders, and BoardReady.io,

a non-profit focused on board

effectiveness. She previously held senior

leadership roles at Barclays PLC and

has served on multiple listed company

boards, including Tesco PLC (Senior

Independent Director), Hargreaves

Lansdown (Chair), and Whitbread PLC

(Remuneration Committee Chair).

As Chair, Deanna leads the Board,

ensuring effective governance and

strong engagement with IHG's

shareholders and wider stakeholders.

She is currently a Non-Executive

Director of Thomson Reuters Corporation

and serves on the private board of

Slalom Corp.

---

| |
|:---|
| **Elie Maalouf**<br>Chief Executive Officer <br>(CEO) |
| Appointed to the Board: <br>1 January 2018 |

---

Elie became Chief Executive Officer

of IHG in July 2023, having previously

served as Chief Executive Officer,

Americas since 2015. He joined IHG

following six years as President and

CEO of HMSHost Corporation, where

he was also a board member. Elie

brings extensive global experience

across hotel development, branding,

finance, real estate and operations,

complemented by strong food and

beverage expertise. Before joining

the Group, he was a Senior Adviser

at McKinsey & Company from 2012

to 2014.

As CEO, Elie leads the Group's executive

management and is responsible for

delivering Board strategy and policy.

He also serves on the Executive

Committee of the World Travel &

Tourism Council and the U.S. Travel

Association CEO Roundtable.

![MichaelGlover.jpg](ihg-20251231_g219.jpg)

---

| |
|:---|
| **Michael Glover**<br>Chief Financial Officer <br>(CFO) |
| Appointed to the Board: <br>20 March 2023 |

---

Since joining IHG in 2004, Michael

has held senior finance roles across

the Group and its regions. He served

as CFO of IHG's China region before

becoming Group Financial Controller,

overseeing Tax, Treasury and Financial

Reporting and leading a major finance

transformation that delivered greater

simplification, automation and service-

centre integration. He later became

CFO of the Americas and Group

Head of Commercial Finance, with

responsibility for global commercial

finance operations, including

procurement, sales and marketing,

technology finance and the

System Fund.

Michael is an Accounting and Finance

graduate of Baylor University and a

certified public accountant. As CFO,

he works with the Board to oversee

the Group's financial operations.

![GrahamAllan.jpg](ihg-20251231_g220.jpg)

![ByronGrote.jpg](ihg-20251231_g221.jpg)

---

| | |
|:---|:---|
| **Graham Allan**<br>Senior Independent <br>Non-Executive Director <br>(SID) | **Graham Allan**<br>Senior Independent <br>Non-Executive Director <br>(SID) |
| Appointed to the Board: <br>1 September 2020<sup>a</sup> | Appointed to the Board: <br>1 September 2020<sup>a</sup> |
| Committee membership: | Committee membership: |
| A<br> N | RB |

---

Graham brings over 40 years of strategic,

commercial and operational experience

in global consumer-focused businesses.

He was Group Chief Executive of Dairy

Farm International Holdings Ltd from

2012 to 2017 and previously held senior

roles at PepsiCo/Yum! Brands, serving

as President of Yum! Restaurants

International and leading the KFC, Pizza

Hut and Taco Bell brands across 120

markets. Graham began his career as

a consultant at McKinsey & Company.

Appointed Senior Independent Non-

Executive Director in January 2022,

he became Chair of IHG's Responsible

Business Committee in March 2023. His

other roles include Senior Independent

Director at Intertek Group plc,

Independent Non-Executive Director

at Associated British Foods plc and

Americana Restaurants International PLC,

Chairman of Bata Footwear and Director

at Nando's Group Holdings Limited.

---

| | | |
|:---|:---|:---|
| **Byron Grote**<br>Independent Non-<br>Executive Director | **Byron Grote**<br>Independent Non-<br>Executive Director | **Byron Grote**<br>Independent Non-<br>Executive Director |
| Appointed to the Board: <br>1 July 2022 | Appointed to the Board: <br>1 July 2022 | Appointed to the Board: <br>1 July 2022 |
| Committee membership: | Committee membership: | Committee membership: |
| A | N | R |

---

Byron has more than 30 years'

experience in the international oil

and gas sector, including senior roles

at Standard Oil of Ohio and BP Plc,

where he served as an Executive

Director for 13 years and as Chief

Financial Officer from 2002 to 2011.

He has held board and audit committee

leadership positions at Anglo American

plc, Akzo Nobel N.V., Tesco PLC and

Unilever PLC and also served as a

Non-Executive Director of Standard

Chartered PLC. As Chair of IHG's Audit

Committee since March 2023, Byron

brings deep financial, governance

and international business expertise.

He is a member of leading audit

committee networks and currently

serves as a Non-Executive Director

of Inchcape plc where he is

Remuneration Committee Chair.

![AngieRisley.jpg](ihg-20251231_g222.jpg)

---

| | | |
|:---|:---|:---|
| **Angie Risley**<br>Independent Non-<br>Executive Director | **Angie Risley**<br>Independent Non-<br>Executive Director | **Angie Risley**<br>Independent Non-<br>Executive Director |
| Appointed to the Board: <br>1 September 2023 | Appointed to the Board: <br>1 September 2023 | Appointed to the Board: <br>1 September 2023 |
| Committee membership: | Committee membership: | Committee membership: |
| N | R | RB |

---

Angie has extensive human resources

experience across multiple sectors,

including at United Biscuits; Whitbread

PLC, where she was Executive Director

and Group HR Director; Lloyds Banking

Group plc as Group HR Director and

Executive Committee member; and

Sainsbury's plc, where she served for

10 years as Group HR Director. She has

held non-executive roles at Serco Group

Plc (Remuneration Committee Chair),

Sainsbury's Bank plc, Arriva PLC, and

Biffa Limited, and was a member of the

UK Low Pay Commission. Angie brings

broad HR and cross-sector expertise

to the IHG Board and became Chair

of the Remuneration Committee in

January 2024. She is currently Senior

Independent Director and member

of the Remuneration Committee and

Nomination & Governance Committee

at Smith & Nephew plc.

a.Graham was a member of the Board from 1 January 2010 to 15 June 2012 prior to being

appointed as Chief Operating Officer of Dairy Farm International Holdings Limited.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 119 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

![SirRonKalifa.jpg](ihg-20251231_g223.jpg)

![ArthurdeHaast .jpg](ihg-20251231_g224.jpg)

---

| | |
|:---|:---|
| **Sir Ron Kalifa**<br>Independent Non-<br>Executive Director | **Sir Ron Kalifa**<br>Independent Non-<br>Executive Director |
| Appointed to the Board: <br>1 January 2024 | Appointed to the Board: <br>1 January 2024 |
| Committee membership: | Committee membership: |
| A | R |

---

Ron is a recognised leader in financial

services and technology, having served

for over a decade as Chief Executive

Officer of Worldpay, later becoming Vice

Chairman and an Executive Director until

2020. Ron brings substantial expertise in

high-growth sectors of financial markets,

including payments and fintech strategy,

to the IHG Board. He is Chairman of

Visma AG and Vice Chair and Head of

Financial Infrastructure at Brookfield

Asset Management. He is Non-Executive

Director of Network International

Holdings plc and the England & Wales

Cricket Board, a Council member at

Imperial College London, a Trustee of

the Royal Foundation of the Prince and

Princess of Wales, and Chair of the

Sports Honours Committee.

---

| | |
|:---|:---|
| **Arthur de Haast**<br>Independent Non-<br>Executive Director | **Arthur de Haast**<br>Independent Non-<br>Executive Director |
| Appointed to the Board: <br>1 January 2020 | Appointed to the Board: <br>1 January 2020 |
| Committee membership: | Committee membership: |
| A | RB |

---

Arthur brings over 30 years of

experience in capital markets, hotels,

and hospitality, having held senior

roles at Jones Lang LaSalle (JLL),

including Global CEO of JLL's Hotels

and Hospitality Group and Chair of

its Capital Markets Advisory Council.

He is a former Chair of the Institute

of Hospitality and offers substantial

board-level expertise in sustainability.

Arthur serves as an Independent

Non-Executive Director and Risk

Management Committee Chair at

Chalet Hotels Limited and is a member

of the Advisory Board of the Scottish

Business School at the University

of Strathclyde, Glasgow.

![DuriyaFarooqui.jpg](ihg-20251231_g225.jpg)

---

| | |
|:---|:---|
| **Duriya Farooqui**<br>Independent Non-<br>Executive Director | **Duriya Farooqui**<br>Independent Non-<br>Executive Director |
| Appointed to the Board: <br>7 December 2020 | Appointed to the Board: <br>7 December 2020 |
| Committee membership: | Committee membership: |
| A | RB |

---

Duriya brings over two decades of

executive and board experience across

strategy, transformation, and innovation.

She is an Independent Director at

Intercontinental Exchange, Inc. (ICE),

serving on the boards of its subsidiaries,

NYSE and ICE NGX, and co-chairing the

NYSE Board Advisory Council. Duriya is

also an independent director at Barclays

Execution Services Limited, and a

leadership coach with The Exco Group.

Her previous roles include President

of Supply Chain Innovation at Georgia-

Pacific, Executive Director of the Atlanta

Committee for Progress, principal at

Bain & Company, and Chief Operating

Officer of the City of Atlanta. She is a

member of the Piedmont Healthcare

Board of Directors, The Carter Center

Board of Councilors, and the Harvard

Kennedy School Alumni Board.

![SharonRothstein.jpg](ihg-20251231_g226.jpg)

---

| | |
|:---|:---|
| **Sharon Rothstein**<br>Independent Non-<br>Executive Director | **Sharon Rothstein**<br>Independent Non-<br>Executive Director |
| Appointed to the Board: <br>1 June 2020 | Appointed to the Board: <br>1 June 2020 |
| Committee membership: | Committee membership: |
| A | RB |

---

Sharon brings over 25 years of senior

leadership experience in marketing,

branding and digital strategy. She is

currently an Operating Partner at Stripes

Group, a growth equity firm investing

in high-growth consumer and SaaS

companies. Her previous roles include

Executive Vice President, Global Chief

Marketing Officer, and Executive Vice

President, Global Chief Product Officer

at Starbucks Corporation, as well as senior

positions at Sephora, Godiva, Starwood

Hotels & Resorts, Nabisco and Procter

& Gamble Company. Sharon provides

the IHG Board with deep expertise in

consumer-focused businesses and

hospitality and brings insights into brand

strategy and marketing. She serves

on the boards of Yelp, Inc. and private

companies Califia Farms, Levain Bakery

and Pop Up Bagels.

**Board Committee membership**<br>

---

| | |
|:---|:---|
| A | Audit Committee member |

---

---

| | |
|:---|:---|
| RB | Responsible Business Committee member |

---

Chair of a Board Committee<br>

---

| | |
|:---|:---|
| R | Remuneration Committee member |

---

---

| | |
|:---|:---|
| N | Nomination Committee member |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Board skills matrix** | Financial<sup>a</sup> | Strategy<sup>b</sup> | Risk | Hotels/Hospitality | Brands/Consumer<sup>c</sup> | Real Estate | International<sup>d</sup> | Tech/Digital | Sustainability | Franchising | US/UK Corporate <br>Governance<sup>e</sup><br>| CEO<sup>f</sup> |
| **Board skills matrix** |  |  |  |  |  |  |  |  |  |  |  |  |
| Deanna Oppenheimer | 🟇 | 🟇 | 🟇 | 🟇 | 🟇 |  | 🟇 | 🟇 |  |  | 🟇 |  |
| Graham Allan |  | 🟇 |  |  | 🟇 |  | 🟇 |  |  | 🟇 |  | 🟇 |
| Arthur de Haast |  |  | 🟇 | 🟇 |  | 🟇 | 🟇 |  | 🟇 |  |  |  |
| Duriya Farooqui | 🟇 | 🟇 | 🟇 |  |  |  | 🟇 |  | 🟇 |  | 🟇 |  |
| Byron Grote | 🟇 | 🟇 | 🟇 |  |  |  | 🟇 |  |  |  | 🟇 |  |
| Ron Kalifa | 🟇 | 🟇 | 🟇 |  |  |  | 🟇 | 🟇 |  |  | 🟇 | 🟇 |
| Angie Risley |  |  |  | 🟇 | 🟇 |  |  |  |  |  | 🟇 |  |
| Sharon Rothstein |  | 🟇 |  | 🟇 | 🟇 |  | 🟇 | 🟇 |  | 🟇 | 🟇 |  |
| Michael Glover | 🟇 |  | 🟇 | 🟇 |  |  | 🟇 | 🟇 |  | 🟇 |  |  |
| Elie Maalouf |  | 🟇 |  | 🟇 | 🟇 | 🟇 | 🟇 |  |  | 🟇 |  | 🟇 |
| Total | 5 | 7 | 6 | 6 | 5 | 2 | 9 | 4 | 2 | 4 | 6 | 3 |

---

a.Experience in a CFO/senior finance role and/or investment banking sector.

b.Experience in a role leading corporate strategy, a management consulting role and/or

a divisional CEO role.

c.Experience in consumer/brands organisation or a role as marketing executive with

multibrand background.

d.Experience in a multinational organisation holding responsibility globally/across several regions.

e.Experience in a UK and US listed organisation.

f.Experience in a global CEO role.

---

| | | |
|:---|:---|:---|
| 120 | IHG | Annual Report and Form 20-F 2025 |

---

Our Executive Committee<br>**In addition to Elie Maalouf and Michael Glover, the Executive Committee comprises:**<br>

![DanielAylmer.jpg](ihg-20251231_g227.jpg)

![HeatherBalsley.jpg](ihg-20251231_g228.jpg)

---

| |
|:---|
| **Daniel Aylmer**<br>Chief Executive Officer, <br>Greater China |
| Appointed to the <br>Executive Committee: <br>April 2024 (joined the <br>Group: 2016) |

---

Daniel joined IHG in 2016 and was

appointed to the Executive Committee

in April 2024. With over 20 years of

hospitality experience across Europe,

the US and Asia, including a senior

tenure at Starwood, he brings deep

operational expertise and market insight.

Daniel previously served as Managing

Director and Chief Operating Officer

for Greater China, driving strategic

growth, operational excellence,

and performance across managed

and franchised full-service hotels.

Based in Shanghai, he leads the Greater

China region's management, expansion,

and profitability. Daniel also contributes

to the broader business community

as a member of numerous business

chambers in Shanghai, promoting

economic and trade relations between

China and the UK.

---

| |
|:---|
| **Heather Balsley**<br>Chief Commercial <br>& Marketing Officer |
| Appointed to the <br>Executive Committee: <br>November 2023 (joined <br>the Group: 2007) |

---

Heather joined IHG in 2007 and was

appointed to the Executive Committee

in November 2023. She became Chief

Commercial & Marketing Officer in

April 2024, having previously served as

Global Chief Customer Officer. Heather

has held several senior roles, including

SVP, Global Loyalty & Partnerships; SVP,

Global Marketing, Mainstream Brands;

and SVP, Americas Brands and Marketing.

Before joining IHG, she spent seven years

at Marakon Associates advising Fortune

500 companies on performance

strategies. Heather holds an MBA from

Harvard Business School and a bachelor's

degree in economics and Sociology

from Duke University. She leads IHG's

brand strategy, marketing, commercial

platforms, analytics, loyalty programmes,

co-brand credit card business and

the overall guest experience across

the Group's brands.

![JolyonBulley.jpg](ihg-20251231_g229.jpg)

---

| |
|:---|
| **Jolyon Bulley**<br>Chief Executive Officer, <br>Americas |
| Appointed to the <br>Executive Committee: <br>November 2017 (joined <br>the Group: 2001) |

---

Jolyon joined IHG in 2001 and was

appointed to the Executive Committee

in November 2017. A career hotelier,

he has held senior roles across the

Group, including COO for the Americas

and Greater China, CEO for Greater

China and leader of the Luxury & Lifestyle

Transformation Team. In 2023, he

became CEO, Americas. Jolyon has

extensive experience in hotel operations,

franchisee and owner relations, new hotel

openings and brand performance. He

graduated from William Angliss Institute,

Melbourne, with a focus on Tourism and

Hospitality. Jolyon is responsible for

driving the growth, management and

profitability of the Americas region.

![YasminDiamond.jpg](ihg-20251231_g230.jpg)

![JolieFleming.jpg](ihg-20251231_g231.jpg)

---

| |
|:---|
| **Yasmin Diamond, CB**<br>Executive Vice <br>President, Global <br>Corporate Affairs |
| Appointed to the <br>Executive Committee: <br>April 2016 (joined the <br>Group: 2012) |

---

Yasmin joined IHG in 2012 and was

appointed to the Executive Committee

in April 2016. She leads all aspects

of global corporate affairs, including

external, internal, hotel and owner

communications, government affairs

and IHG's Corporate Responsibility

strategy, supporting the Group's

strategic priorities. Before joining IHG,

Yasmin held senior communications

roles in the UK Government, including

Director of Communications at the

Home Office and the Department for

Environment, Food and Rural Affairs,

and Head of Marketing at the

Department for Education and Skills.

Awarded a Companion of the Order of

the Bath (CB) in 2011, she also serves as

an Independent Non-Executive Director

of the Rugby Football Union and as

a Board Trustee of the Sustainable

Hospitality Alliance.

---

| |
|:---|
| **Jolie Fleming**<br>Executive Vice <br>President, Chief Product <br>& Technology Officer |
| Appointed to the <br>Executive Committee: <br>April 2024 (joined the <br>Group: 2021) |

---

Jolie joined IHG in 2021 and was appointed

to the Executive Committee in April 2024.

She initially served as Senior Vice

President, Guest Products and Platforms,

leading the development and launch

of technology solutions for IHG One

Rewards, mobile apps, new hotel websites

and partner integrations, including

Iberostar. With over 25 years of experience

in technology-driven businesses, Jolie

has worked across corporate and start-up

environments, focusing on transformative

growth, product management, and

high-performance teams. Previously,

she was Managing Director of Digital

and Customer Experience at E\*TRADE by

Morgan Stanley, leading its award-winning

digital channels. Jolie is responsible

for driving the development of guest,

enterprise and owner-facing products

and technology.

![NicoletteHenfrey.jpg](ihg-20251231_g232.jpg)

---

| |
|:---|
| **Nicolette Henfrey**<br>Executive Vice <br>President, General <br>Counsel and <br>Company Secretary |
| Appointed to the <br>Executive Committee: <br>February 2019 (joined <br>the Group: 2001) |

---

Nicolette joined IHG in 2001 and was

appointed to the Executive Committee

in February 2019. A solicitor qualified

in England and South Africa, she

began her career at Findlay & Tait

(now Bowmans) in South Africa and

also worked as a corporate lawyer at

Linklaters in London. At IHG, Nicolette

has held senior legal roles, including

Deputy Company Secretary, working

closely with the Board, Executive

Committee and wider organisation

to ensure best-in-class governance,

legal and regulatory compliance. She

has global responsibility for corporate

governance, legal, risk management,

insurance, regulatory compliance,

internal audit and hotel standards.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 121 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

![TajesKatre.jpg](ihg-20251231_g233.jpg)

![KennethMacpherson.jpg](ihg-20251231_g234.jpg)

---

| |
|:---|
| **Tejas Katre**<br>Chief Human <br>Resources Officer |
| Appointed to the <br>Executive Committee: <br>January 2026 (joined <br>the Group: 2018) |

---

Tejas became Chief Human

Resources Officer in January 2026

and is responsible for all aspects of

the Group's people and organisation

strategy, covering talent management,

people development, learning, reward

and employee relations. With over 30

years of experience, Tejas has driven HR

and organisational transformation across

global companies and international

markets. Before joining IHG, Tejas held

senior roles at PepsiCo and Unilever PLC.

Since joining IHG in 2018, Tejas has

served as Senior Vice President, HR

Global Talent, Organisation, Culture and

Reward, and Senior Vice President,

HR for EMEAA.

---

| |
|:---|
| **Kenneth Macpherson**<br>Chief Executive Officer, <br>EMEAA |
| Appointed to the <br>Executive Committee: <br>April 2013 (joined the <br>Group: 2013) |

---

Kenneth joined IHG in 2013 and was

appointed to the Executive Committee

in April 2013. He served as CEO

for Greater China from 2013 to 2017

before becoming CEO, EMEAA, in

January 2018. Kenneth has extensive

experience in sales, marketing strategy,

business development and operations,

with over 12 years living and working

in China, and additional experience

across Asia, the UK, France, and

South Africa. Before joining IHG, he

spent 20 years at Diageo plc, including

as Managing Director of Diageo Greater

China, leading the landmark acquisition

of ShuiJingFang. Kenneth is responsible

for managing the growth, profitability

and operations of the EMEAA region

and overseeing a portfolio of hotels

in mature and emerging markets.

**Information on Directors and Executive Committee members**

As required by UKLR 6.6.6R(9), data on the Board and Executive Committee members is set out in the tables below.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Gender of Board** <br>**and Executive Committee** | Number of <br>Board members | Percentage of <br>the Board | Number of senior <br>positions on the <br>Board (CEO, CFO, <br>SID and Chair) | Number in <br>Executive <br>Committee | Percentage of <br>Executive <br>Committee |
| **Gender of Board** <br>**and Executive Committee** | Number of <br>Board members | Percentage of <br>the Board | Number of senior <br>positions on the <br>Board (CEO, CFO, <br>SID and Chair) | Number in <br>Executive <br>Committee | Percentage of <br>Executive <br>Committee |
| Men | 6 | 60% | 3 | 6 | 60% |
| Women | 4 | 40% | 1 | 4 | 40% |
| Not specified/prefer not to say | – | – | – | – | – |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ethnic background of Board** <br>**and Executive Committee** | Number of <br>Board members | Percentage of <br>the Board | Number of senior <br>positions on the <br>Board (CEO, CFO, <br>SID and Chair) | Number in <br>Executive <br>Committee | Percentage of <br>Executive <br>Committee |
| **Ethnic background of Board** <br>**and Executive Committee** | Number of <br>Board members | Percentage of <br>the Board | Number of senior <br>positions on the <br>Board (CEO, CFO, <br>SID and Chair) | Number in <br>Executive <br>Committee | Percentage of <br>Executive <br>Committee |
| White British or other White <br>(including minority-white groups)<br>| 7 | 70% | 3 | 8 | 80% |
| Mixed/Multiple Ethnic Groups | – | – | – | – | – |
| Asian/Asian British | 2 | 20% | – | 1 | 10% |
| Black/African/Caribbean/Black British | – | – | – | – | – |
| Other ethnic group | 1 | 10% | 1 | 1 | 10% |
| Not specified/prefer not to say | – | – | – | – | – |

---

a.Notes:

b.The information in the tables above is compiled from self-reported data from the relevant individuals and is accurate as at 31 December 2025.

c.As at 31 December 2025 and 16 February 2026, the Company complies with the following requirements on board diversity in accordance

with UKLR 6.6.6R(9): (i) at least 40% of the individuals on the Board are women; (ii) at least one senior position, namely the Chair of the Board,

is held by a woman; and (iii) at least one individual on the Board is from a minority ethnic background.

---

| | | |
|:---|:---|:---|
| 122 | IHG | Annual Report and Form 20-F 2025 |

---

Governance structure<br>

**Governance framework**

**Our governance framework is headed by the Board, which delegates certain management** 

**and oversight responsibilities to various Committees to further IHG's purpose, values and** 

**strategy, while conducting business in a responsible manner. Executive management is** 

**responsible for the implementation of strategy that is delivered by the Group's workforce.**

**The Board**<br>

**The Board is responsible for promoting the long-term sustainable success of the Group** 

**and establishes its purpose, values and strategy.**

Operational matters, routine business and information disclosure procedures are delegated by the Board to Management Committees,

with the exception of a number of key decisions and matters that are reserved for the Board. The schedule of matters reserved

for the Board was reviewed and approved at the December 2025 Board meeting and is available on our website.

The Board is supported by its four Principal Committees (Audit, Nomination, Remuneration and Responsible Business),

all of which consist of Non-Executive Directors. These committees assist the Board in carrying out its functions and

in overseeing the delivery of the strategic objectives it sets for management.

---

| | |
|:---|:---|
| **+** | See pages 123 to 126 for information. |

---

![](ihg-20251231_g235.gif)

---

| |
|:---|
| **Board Committees** |
| **Nomination Committee** |
| Leads on and examines nominations and appointments <br>to the Board and its Committees and makes <br>recommendations to the Board.<br>Responsible for reviewing the Group's leadership needs. |
| Leads on and examines nominations and appointments <br>to the Board and its Committees and makes <br>recommendations to the Board.<br>Responsible for reviewing the Group's leadership needs. |
| **Remuneration Committee** |
| Leads on and reviews all aspects of remuneration of the <br>Executive Directors and Executive Committee members <br>and remuneration policy for senior executives. |
| Leads on and reviews all aspects of remuneration of the <br>Executive Directors and Executive Committee members <br>and remuneration policy for senior executives. |
| **Responsible Business Committee** |
| Leads on responsible business objectives and strategy, <br>including our approach to social, community and human <br>rights matters.<br>Reviews our impact on the environment and communities.<br>Reviews the Board's engagement with the workforce <br>and the Group's culture of inclusivity. |
| Leads on responsible business objectives and strategy, <br>including our approach to social, community and human <br>rights matters.<br>Reviews our impact on the environment and communities.<br>Reviews the Board's engagement with the workforce <br>and the Group's culture of inclusivity. |
| **Audit Committee** |
| Leads on internal controls and risk management; financial <br>and non-financial reporting; internal audit; fraud and external <br>audit and compliance.<br>Maintains working relationships with management; <br>Global Internal Audit; the Disclosure Committee; and the <br>external Auditor. |
| Leads on internal controls and risk management; financial <br>and non-financial reporting; internal audit; fraud and external <br>audit and compliance.<br>Maintains working relationships with management; <br>Global Internal Audit; the Disclosure Committee; and the <br>external Auditor. |

---

![](ihg-20251231_g235.gif)

---

| |
|:---|
| **Management Committees** |
| **Operational matters, routine business and** <br>**information disclosure procedures are delegated** <br>**by the Board to Management Committees.** <br>**The Management Committees comprise** <br>**senior executives, including, where relevant,** <br>**the Executive Directors.**<br>|
| **Executive Committee** |
| Chaired by the CEO, it considers and manages the day-to-day <br>strategic and operational issues facing the Group.<br>Its remit includes executing the strategic plan once agreed <br>upon by the Board, monitoring the Group's performance <br>and providing assurance to the Board in relation to overall <br>performance and risk management.<br>|
| **General Purposes Committee** |
| Chaired by an Executive Committee member, it attends to <br>items of a routine nature and to the administration of matters, <br>the principles of which have been agreed previously by the <br>Board or an appropriate Committee.<br>|
| **Disclosure Committee** |
| Chaired by the Group's Financial Controller, it ensures <br>that proper procedures are in place for statutory and <br>listing disclosure requirements. This Committee reports <br>to the Chief Executive Officer, the Chief Financial Officer <br>and the Audit Committee.<br>|

---

---

| | |
|:---|:---|
| **+** | See pages 136 and 137. |

---

---

| | |
|:---|:---|
| **+** | See pages 138 to 161. |

---

---

| | |
|:---|:---|
| **+** | See pages 134 and 135. |

---

![GovStruct_graphic_keyline.gif](ihg-20251231_g236.gif)

![](ihg-20251231_g235.gif)

---

| | |
|:---|:---|
| **+** | See pages 128 to 133. |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 123 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| |
|:---|
| Board activities |
| Key areas of focus during the year |

---

**Board meetings**

This page gives an overview of some

of the regular and standing items

discussed and decisions made at

Board meetings during the year.

The table on pages 124 and 125

sets out information on the key matters

discussed by the Board in 2025 and

our Section 172 statement, which

includes information about how

stakeholders were considered and

impacted outcomes.

In several areas, much of the substantive

preparation work took place within

the Board's Committees and was later

confirmed by the Board, or the whole

Board attended certain sections of

Committee meetings. Where this was

the case, the discussions are treated

as having taken place at Board level.

---

| | |
|:---|:---|
| **Performance** | **Performance** |
| The Board receives regular updates <br>from the CEO and CFO on recent and <br>current trading, including RevPAR, <br>operating profit, net system size <br>growth and cash flow performance. <br>These were also compared to the <br>results of competitors and budget. <br>Internal projections were compared <br>with the consensus of forecasts by <br>analysts to ensure that the Company's <br>prospects were appropriately <br>reflected in market expectations. <br>The Board also monitors the progress <br>of the share buyback programme.<br>| Throughout the year, the Board <br>also receives regional performance <br>updates from each of the regional <br>Chief Executive Officers, covering <br>regional market and competitive <br>landscapes, financial performance, <br>regional strategy and progress on <br>regional initiatives, and risks and <br>mitigation measures.<br>|

---

---

| | |
|:---|:---|
| **Governance and assurance** | **Governance and assurance** |
| The Board receives regular updates <br>on principal and emerging risks, <br>internal controls, risk management <br>systems, the Group's risk appetite, <br>litigation, cybersecurity, compliance <br>programmes and the global insurance <br>programme. Committee Chairs <br>also report to the Board on risk <br>topics discussed in their respective <br>Committees.<br>| The Board receives regulatory <br>development updates from the <br>General Counsel and Company <br>Secretary, covering regulatory <br>changes in areas such as corporate <br>reporting and governance, executive <br>remuneration, shareholder body <br>voting guidelines and other social <br>and environmental matters on <br>a quarterly basis. The Board also <br>reviewed and approved the <br>Group's Code of Conduct.<br>|

---

---

| | |
|:---|:---|
| **Stakeholders** | **Stakeholders** |
| The Board receives a regular report <br>outlining share register movements, <br>relative share price performance, <br>investor relations activities and <br>engagement with shareholders. <br>The Board also considers views <br>shared from the regular investor <br>and analyst perception studies <br>and feedback surveys, as well as <br>individual meetings with investors.<br>| The Board receives a regular report <br>outlining various geopolitical and <br>social issues pertaining to IHG <br>and its business; corporate affairs <br>activity supporting IHG's corporate <br>reputation, brands and responsible <br>business agenda; owner and <br>colleague engagement and feedback; <br>government and advocacy <br>programmes; and industry-body <br>engagement.<br>|

---

---

| | | |
|:---|:---|:---|
| 124 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Board activities continued |
| Key areas of focus during the year continued |

---

**Key matters discussed in 2025 and Section 172 statement**

Section 172 of the Companies Act 2006 requires a director of a company to promote the success of that company,

and in doing so, the director must have regard to six factors. These are: the long-term consequences of a decision;

the interests of its employees; business relationships with suppliers, customers and others; its impact on the community

and environment; the desirability of maintaining high standards of business conduct; and the need to act fairly between

members of the company. The table below summarises some of the main matters dealt with by the Board during the

year and how it took the Section 172 factors into account. The relevant Section 172 factors are identified in the table.

---

| | | |
|:---|:---|:---|
| **Finance and performance** | **Finance and performance** | **Finance and performance** |
| **Shareholder returns**<br>The Board considered and approved <br>a final dividend for 2024, an interim <br>dividend for 2025 and a $900m <br>share buyback programme.<br>| In considering the dividends paid during the year and the share <br>buyback programme, the Board took into account the creation <br>of value for shareholders, the expectations of analysts in the <br>context of the Company's trading and viability assessments and <br>capacity to pay, as well as the external environment, including <br>the geopolitical situation and macro-economic developments, <br>while having regard to the Group's dividend policy.<br>| **Considerations**<br>–Long term<br>–High standards<br>–Act fairly between members<br>|
| **Group finance**<br>The Board approved the update <br>of the Group's Euro Medium Term <br>Note (EMTN) bond programme and <br>the issuance of an €850m bond.<br>| In approving the EMTN programme update and the €850m <br>bond issuance, the Board considered in particular the Group's <br>longer-term debt maturity and liquidity profiles as well as the <br>benefits of prudent financial management to the Group's <br>employees and shareholders.<br>| **Considerations**<br>–Long term<br>–Employees<br>–High standards<br>–Act fairly between members<br>|
| **Group finance**<br>The Board considered and approved <br>the refinancing of the Group's $1.5bn <br>syndicated revolving credit facility.<br>| When deciding to approve the refinancing of the Group's <br>$1.5bn revolving credit facility, which included the removal of <br>financial covenants, the Board recognised the value of the new <br>facility to the Group's short- and medium-term funding and <br>liquidity prospects and noted the positive implications of having <br>the new facility in place for the Group's stakeholders, including <br>employees, suppliers, owners, guests and shareholders.<br>| **Considerations**<br>–Employees<br>–Suppliers and customers<br>–High standards<br>|
| **Financial statements**<br>The Board considered and approved <br>the full and half-year financial results <br>statements, including the going <br>concern and viability statements, and <br>whether the Annual Report was fair, <br>balanced and understandable.<br>| In reviewing and approving for publication the Group Financial <br>Statements, the Board ensured that the Group had met its <br>regulatory requirements in relation to providing shareholders <br>and other stakeholders with accurate information regarding <br>the Group and further maintained the Group's reputation <br>for operating with high standards.<br>| **Considerations**<br>–High standards<br>–Act fairly between members<br>|
| **Strategic and operational matters** | **Strategic and operational matters** | **Strategic and operational matters** |
| **Brand portfolio**<br>The Board approved the <br>acquisition of the Ruby brand.<br>| In evaluating the acquisition of the Ruby brand, the Board <br>focused in particular on the brand's appeal to IHG One Rewards <br>members and other guests; the brand's proposition and the <br>return on investment for hotel owners; and the value the brand <br>can generate for shareholders and investors.<br>| **Considerations**<br>–Long term<br>–Suppliers and customers<br>|
| **Brand portfolio**<br>The Board approved the launch of <br>a new premium collection brand.<br>| In considering the new brand launch, the Board noted the long-<br>term strategic rationale for the new brand as well as the guest <br>proposition and the enhanced opportunity it creates for <br>hotel owners to benefit from the Group's enterprise platform. <br>The Board also considered the capacity and capabilities <br>of the Group's employees needed to support the launch.<br>| **Considerations**<br>–Long term<br>–Employees<br>–Suppliers and customers<br>|
| **Technology**<br>The Board approved an agreement <br>for a new cloud-based property <br>management system.<br>| In approving the agreement for a new cloud-based property <br>management system, the Board had regard to the benefits <br>to the Group and hotel owners of a scalable, future-ready <br>technology solution to facilitate operational efficiency <br>and reduce administrative burden.<br>| **Considerations**<br>–Long term<br>–Suppliers and customers<br>|
| **Growth strategy in regions –** <br>**Americas, EMEAA and** <br>**Greater China**<br>The Board received in-depth regional <br>updates from the CEOs of each <br>of the Group's three regions, and <br>provided oversight with regard to <br>the Group's growth strategy and <br>strategic priorities.<br>| The Board received regular updates from the Group's operating <br>regions, covering the Group's relative brand positioning across <br>the brand segments; enterprise capabilities across key markets <br>and the priorities for driving growth in the national markets, <br>and further focused on actions to accelerate the Group's growth. <br>In its discussions across the year, the Board paid particular <br>attention to critical owner considerations in relation to optimising <br>owner returns as well as initiatives to reduce energy and water <br>consumption and food waste.<br>| **Considerations**<br>–Long term<br>–Suppliers and customers<br>–Community and <br>environment<br>|

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 125 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| | | |
|:---|:---|:---|
| **Governance** | **Governance** | **Governance** |
| **Board composition**<br>The Board approved the <br>appointment of Nicholas Cadbury <br>as Non-Executive Director.<br>| In considering and approving the new Board appointment, <br>the Board had particular regard for ensuring that the Board <br>and the Board Committees have the appropriate mix of talent, <br>expertise, skills and experience to provide effective oversight <br>over the short and long-term strategic objectives of the Group <br>while also maintaining high standards of business conduct <br>and complying with the UK Corporate Governance Code.<br>| **Considerations**<br>–Long term<br>–High standards<br>|
| **Executive Committee** <br>**appointment**<br>The Board endorsed the <br>appointment of Tejas Katre <br>to the Executive Committee. <br>| In considering the talent and succession planning at the <br>Executive Committee level and the appointment of Tejas <br>Katre as Chief Human Resources Officer, the Board focused <br>on the skills, experience and profile required to optimise <br>the Executive Committee and HR functional leadership to <br>facilitate the delivery of the Group's strategic objectives.<br>| **Considerations**<br>–Long term<br>–Employees<br>–High standards<br>|
| **Share price currency change**<br>The Board approved the change of <br>the Company's share price currency <br>from British Pounds to US Dollars.<br>| In approving the change of the Company's share price currency <br>to US Dollars, the Board considered in particular the implications <br>of the change for the Company's shareholders and employees <br>and the ability of the Company's share administrators to <br>accommodate the change.<br>| **Considerations**<br>–Employees<br>–Suppliers and customers<br>–Act fairly between members<br>|
| **People** | **People** | **People** |
| **Our people and culture**<br>The Board participated in and <br>received regular updates from the <br>Voice of the Employee workforce <br>engagement programme.<br>| The Board participated in employee feedback sessions, <br>and received and considered regular updates from the <br>Voice of the Employee workforce engagement programme, <br>noting continued positive feedback from engagement sessions. <br>A summary of the Voice of the Employee engagement <br>programme activities carried out during 2025 is included <br>on page 135.<br>| **Considerations**<br>–Employees<br>–High standards<br>|
| **Our people and culture**<br>The Board received regular updates <br>on and endorsed the Group's <br>approach to efficiency initiatives.<br>| In considering the Group's operational efficiency initiatives, <br>the Board carefully assessed the long-term benefits of the <br>initiatives and the impact of the initiatives on the Group's <br>employees and culture, particularly in the context of the <br>focus on a performance culture.<br>| **Considerations**<br>–Long term<br>–Employees<br>–High standards<br>|

---

---

| | |
|:---|:---|
| **+** | See pages 44 and 45 for information about how we have engaged with our stakeholders in 2025. Further details of our regard for our people, <br>communities and the planet are on pages 62 to 76. |
|  | See pages 44 and 45 for information about how we have engaged with our stakeholders in 2025. Further details of our regard for our people, <br>communities and the planet are on pages 62 to 76. |

---

---

| | | |
|:---|:---|:---|
| **Annual Board strategy meeting** | **Annual Board strategy meeting** | **Annual Board strategy meeting** |
| The 2025 Annual Board strategy meeting <br>was held in Atlanta, the location of the <br>Group's main corporate office in the USA.<br>The Board reviewed performance in <br>the broader context of the industry, the <br>competitive environment and considered <br>progress against the Group's strategy. <br>Areas of focus also included:<br>–the Group's strategy for brands, <br>commercial and marketing areas to <br>capture future growth and market <br>share; and<br>–opportunities to unlock value with <br>guests and owners through technology.<br>| The Board's assessment was <br>supplemented by external perspectives <br>on the future of the industry, imperatives <br>for remaining competitive and a forward-<br>looking view of dynamics in equity <br>and owner capital markets. The Board <br>also reflected on the impact of the <br>Group's strategic choices, its risk appetite <br>and risk tolerances, noting the approach <br>to programme and operational risk <br>management in the organisation.<br>Following a productive and wide-<br>ranging discussion, the Board endorsed <br>future plans in particular with regard to:<br>| –the Group's market growth strategy <br>and approach to market prioritisation, <br>with a focus on accelerating <br>profitable growth;<br>–enhancing the Group's technology <br>platforms, focusing on strengthening <br>core capabilities and leveraging data <br>and insights; and<br>–a renewed emphasis on execution, <br>embedding a high-performance <br>culture to achieve strategic ambitions.<br>The outcomes and action items were <br>further addressed at subsequent <br>Board meetings.<br>|

---

---

| | | |
|:---|:---|:---|
| 126 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Board activities continued |
| Our shareholders and investors |

---

During 2025, IHG continued its open

dialogue with shareholders and investors

and conducted its annual programme

of investor relations activities with

support from its brokers and advisers.

The Board received regular updates

and considered feedback as outlined

on page 123.

The Chair of the Remuneration Committee,

supported by the Chair of the Board

and other Non-Executive Directors, also

held an extensive series of meetings with

investors and proxy agency bodies to

consult on the Directors' Remuneration

Policy approved during the year. Further

details are on pages 142 to 144.

In addition, our Registrar and American

Depositary Receipts (ADR) programme

custodians have supported shareholders

and ADR holders with their queries.

Committee Chairs and the Senior

Independent Director are available for

shareholders if they have concerns

they wish to discuss.

---

| | |
|:---|:---|
| **+** | Further information on the Board's <br>engagement with shareholders and <br>investors is included on page 44. |
|  | Further information on the Board's <br>engagement with shareholders and <br>investors is included on page 44. |
|  | Further information on the Board's <br>engagement with shareholders and <br>investors is included on page 44. |

---

**Annual General Meeting (AGM)**

The Board was pleased to meet

shareholders in person at the 2025 AGM.

Our 2026 AGM will be held on Thursday

7 May 2026. The notice of meeting

will be sent to shareholders and made

available on our website in due course.

---

| | |
|:---|:---|
| **+** | Visit [ihgplc.com/investors](ihgplc.com/investors) under <br>Shareholder centre |
|  | Visit [ihgplc.com/investors](ihgplc.com/investors) under <br>Shareholder centre |

---

![Gov_CaseStudy_images1-3_bgrd.jpg](ihg-20251231_g237.jpg)

**Case study**

**Board and executive team** 

**visit Dubai to experience** 

**opportunities first hand**

In September 2025, the Board

travelled to Dubai for a three-day

market visit combining scheduled

Board meetings with deeper

operational insight into a strategically

important growth region. Based

at the InterContinental Dubai

Festival City, the visit included tours

of several regional hotels, including

the Ciel Dubai Marina Vignette

Collection, the world's tallest hotel.

The Board enjoyed meeting with

various hotel owners as well as

General Managers and hotel

teams as part of the tours.

Members of the Board also visited

the Group's corporate office in

Dubai, met with members of the

regional leadership team and took

part in a town hall discussion with

colleagues as well as a 'Voice of

the Employee' engagement session.

The Board received detailed

presentations on the EMEAA

market, including an overview

of key performance metrics;

how these business units operate;

the approach to building talent

and capability; and opportunities

for growth across the region.

The Board also benefitted

from external presentations and

perspectives on the Middle

East market.

The market visit supported

effective oversight of the EMEAA

region while strengthening

engagement with hotel owners

as well as regional leadership

and teams.

**With a growing presence of 30 hotels** 

**in Dubai, the Board immersed itself in** 

**the opportunity, energy and momentum** 

**of the region, reflecting IHG's compelling** 

**growth prospects across EMEAA.**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 127 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Board performance review<br>

Each year, the performance of the Board and its Committees is carefully reviewed through

a formal evaluation process. In 2025, an internal performance review was conducted with

the last external performance review being completed in 2023.

![Board_Perf_Review_Info_Graphic_Bgrd.gif](ihg-20251231_g238.gif)

Externally led evaluation by

Independent Audit Limited

**FY23**

**FY24**

Internally led evaluation

**FY25**

Internally led

performance review

**Performance review process** 

During the year, the Board conducted its annual performance review process internally by questionnaire. The assessment

spanned progress against 2024's actions, the Board's strategic oversight and challenge to management, risk governance,

stakeholder and employee engagement and Board cohesion, composition and succession planning, with a view to supporting

continuous improvement.

---

| | |
|:---|:---|
| **Strengths from 2025:**  | **Areas of focus for 2026:** |
| **Effective strategic oversight and engagement**<br>The Board demonstrates strong capability in guiding strategy, <br>balancing challenge with support and engaging deeply in <br>key decisions. Directors consistently highlight the transparency <br>and openness of discussions, ensuring alignment while <br>constructively testing management proposals.<br>**Robust risk and governance frameworks**<br>The Board, together with its Audit Committee, shows high <br>engagement in risk oversight, covering financial, non-financial <br>and emerging risks. Processes are well embedded, comprehensive <br>and regularly reviewed, giving confidence in the organisation's <br>resilience and governance.<br>**Cohesive dynamics and high-quality information**<br>Board meetings are well-structured and discussion-led, with <br>materials that are timely, clear and comprehensive. There is <br>strong collaboration among members, supported by opportunities <br>for informal engagement, site visits and stakeholder feedback, <br>which enhances understanding and decision-making.<br>| **Board dynamics and strategic engagement**<br>Continuing to strengthen board dynamics and <br>engagement, to ensure robust, constructive debate <br>and alignment of strategic priorities in the context <br>of increasing competitiveness and complex <br>geopolitical and economic factors.<br>**Leadership development and succession planning**<br>Continuing to balance the Board's skills and expertise <br>against evolving market demands and continued visibility <br>and engagement with the executive leadership pipeline <br>will support robust succession plans, future capability <br>needs and long-term strategic objectives.<br>**Technology and organisational resilience**<br>Continuing to focus on strengthening technology <br>innovation and enablement to support both strategic <br>objectives and organisational resilience.<br>|

---

**Board Committees**

As part of the broader review process,

the performance of each of the Board's

Committees and the support it provides

to the Board was reviewed and assessed.

The review process confirmed that

the Committees have the necessary

attributes to support their effective

operation and that they are well

integrated into the Board decision-

making processes.

Each of the Committees reviewed

the findings and agreed the respective

actions with consideration of the overall

Board finding where they were deemed

relevant to that Committee's work.

---

| | |
|:---|:---|
| **+** | Further details are set out in each <br>Committee Report on pages 128, <br>134, 136 and 158. |
|  | Further details are set out in each <br>Committee Report on pages 128, <br>134, 136 and 158. |
|  | Further details are set out in each <br>Committee Report on pages 128, <br>134, 136 and 158. |

---

![](ihg-20251231_g239.gif)

**Performance review** 

**of Directors**

In addition to the internal Board

Performance Review, the Chair led the

individual performance reviews of the

Non-Executive Directors and carried out

one-to-one meetings with each of them,

focusing on their contribution to the

Board and Principal Committees, including

the time they dedicate to their roles,

and engagement with fellow Directors,

taking into account their relevant skills,

knowledge and experience. Particular

points of note were shared with the

individual Directors, and following a

final discussion and feedback session

between the Chair and the SID, it was

concluded that the Directors perform

their duties independently and effectively

and that they dedicate sufficient time

to discharge their Board responsibilities.

The performance assessment of the

Chair was also led by the SID.

The Performance Review focused on:

–Overall leadership of the Board;

–The Board's culture and the Chair's

ability to facilitate constructive Board

relations; and

–Managing the Board in accordance

with high standards of corporate

governance.

The CEO performance review was led

by the Chair, who collected feedback

to a series of questions from the

Non-Executive Directors.

Key areas of focus included:

–the Group's performance and impact

of the CEO;

–the relationship and ability to work

collaboratively and transparently

with the Board;

–delivery of the Group's growth agenda;

–regard for community and the

environment;

–building talent and organisational

capabilities; and

–progress in relation to IHG's 2025

plan and future strategic priorities.

---

| | | |
|:---|:---|:---|
| 128 | IHG | Annual Report and Form 20-F 2025 |

---

Audit Committee Report<br>

![Gov_AuditComm_intro.jpg](ihg-20251231_g240.jpg)

"A robust risk

management

and internal

control

framework is

fundamental

to sustaining

organisational

resilience

and supporting

informed decision

making."

Byron Grote

**Chair of the Audit Committee**

**Highlights**<br>–Detailed oversight of the global <br>financial governance plan, <br>including initiatives to drive <br>compliance improvements, <br>an enhanced testing cycle, <br>progression of the automation <br>of controls and development <br>of the non-financial reporting <br>metric governance framework.<br>–Focused review of the <br>governance and controls <br>relating to the System Fund, <br>including internal and <br>external governance.<br>–Assessment of the Group's fraud <br>risk management programme, <br>including measures to manage <br>the Group's fraud risk and <br>endorsement of the Group's new <br>Global Fraud Prevention Policy.<br>

**Key duties and role** 

**of the Committee**

**Key objectives and summary** 

**of responsibilities**

The Audit Committee is responsible

for ensuring that IHG maintains a

strong control environment. It monitors

the integrity of IHG's financial reporting,

including significant financial reporting

judgements; maintains oversight of

and reviews our risk management and

internal control framework; monitors

and reviews the effectiveness and

performance of internal and external

audit functions; and reviews the

behaviours expected of IHG's

employees through the Code of

Conduct and related policies.

The Committee's role, responsibilities

and authority delegated to it by

the Board are set out in its Terms of

Reference (ToR), which are reviewed

annually and approved by the Board.

---

| | |
|:---|:---|
| **+** | The ToR are available at [ihgplc.com/](ihgplc.com/investors)<br>[investors](ihgplc.com/investors) under Corporate governance. |
|  | The ToR are available at [ihgplc.com/](ihgplc.com/investors)<br>[investors](ihgplc.com/investors) under Corporate governance. |

---

As noted, the Committee focused its

attention on reviewing and obtaining

assurance in relation to emerging

and evolving risks as well as the Group

Financial Statements and controls.

Other areas of focus over the year

have been:

–the Group's global financial

governance compliance plans,

with particular focus on system

and process transitions;

–the internal control arrangements

relating to metrics included in

the LTIP;

–the Group's business continuity

and crisis management framework,

including the approach to testing

the framework by regional and

functional leadership teams;

–the evolution of the Group's finance

function's operating model, with

particular emphasis on technology

and the development of automation

and AI capabilities; and

–the Group's approach to managing

hotel operational safety and security

risks, focusing in particular on the

evolution of the Group's brand safety

standards framework to address

existing and emerging safety and

security risks.

**Membership and** 

**attendance at meetings**

Details of the Committee's membership

and attendance at meetings are set

out on page 117. The Chair of the Board,

CEO, CFO, Group Financial Controller,

Head of Risk and Assurance, General

Counsel and Company Secretary, Deputy

Company Secretary and our external

Auditor attended the Committee's

meetings in 2025. Other attendees are

invited to meetings as appropriate, and

the CEO and all other Directors were

invited to Committee meetings where the

review of the risk management framework

and the approval of financial reporting

was considered and discussed. The

Committee continues to hold private

sessions with the internal and external

Auditors without the presence of

management to ensure that a culture

of transparency is maintained.

The Committee Chair continues to have

recent and relevant financial experience,

and all members of the Committee are

Independent Non-Executive Directors.

In accordance with the Code, the Board

also considers that the Committee as a

whole possesses competence relevant

to the Company's sector, having a range

of financial and commercial experience

in the hospitality industry and the broader

commercial environment in which the

Group operates. Further details of the

skills and experience of the Committee

members can be found on pages 118

and 119.

**Reporting to the Board**

Following each Committee meeting,

the Committee Chair updates the

Board on key issues discussed. The

papers and minutes for each meeting

are circulated to all Board members,

who are invited to request further

information if required and to provide

any challenge where necessary.

**Effectiveness of the Committee**

During the year, the Committee's

effectiveness was reviewed as part of

the internal Board performance review

process. The review responses positively

highlighted the quality of leadership and

external reporting, and the Committee

concluded that it remains effective.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 129 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Focus areas and activities**

**Financial and narrative reporting**

During the year, the Committee

reviewed and recommended approval

of the interim and annual Financial

Statements (considering the relevant

accounting and reporting matters such

as key judgement areas, going concern

and viability statements, the financial

reporting impacts of commercial

litigation and disputes, exceptional

items and impairment reviews) and

the Group's quarterly trading updates.

All members of the Board are asked

to attend these meetings.

As well as receiving input and guidance

from the external Auditor on the

areas outlined above, the Committee

also received regular reports from the

Chair of the Disclosure Committee,

which liaised closely with other external

advisers of the Group to ensure that

disclosure and regulatory requirements

were being appropriately considered

and met. Copies of the Disclosure

Committee's minutes were also

provided to the Committee.

The Committee received early drafts of

the Annual Report and Form 20-F 2025

(Annual Report), and when providing

comments considered: (i) the process

for preparing and verifying the Annual

Report, which included review by the

Executive Committee and input from

senior employees in the Company

Secretariat, Legal, Operations, Strategy,

Human Resources, Finance, Risk and

Assurance teams; (ii) a report from

the Chair of the Disclosure Committee;

and (iii) a checklist prepared by

the Annual Report team confirming

compliance with the relevant

regulatory requirements.

The Committee also considered

management's analysis of how the

content, taken as a whole, was 'fair,

balanced and understandable', and

whether it contained the necessary

information for shareholders to assess

the Group's position, performance,

business model and strategy.

In order to reach this conclusion, a

dedicated project team worked on the

contents of the Annual Report, and a

detailed verification process to confirm

the accuracy of the information contained

within the Annual Report was undertaken

by the Financial Planning and Analysis

department. The Committee then

considered both the structure and content

of the Annual Report to ensure that

the key messages were effectively and

consistently communicated and that

meaningful links between the business

model, strategy, KPIs, principal

risks and remuneration were clearly

identified throughout the Annual Report.

The Committee also reviewed the

proportionate and consistent

consideration of climate matters

across the Annual Report, including

the Task Force on Climate-Related

Financial Disclosures (TCFD) statement

and an asset-by-asset review for

impairment purposes, and considered

that the disclosures were appropriate.

Alongside this review, the Committee

considered guidance provided by

the Financial Reporting Council (FRC)

throughout the year and took into

account the updated Corporate

Governance Code 2024.

Following a review of the contents

of the Annual Report alongside the

aforementioned criteria, the Committee

reported its recommendation to approve

the Annual Report to the Board.

**Significant matters in the** 

**2025 Financial Statements**

Throughout 2025, the Committee

provided ongoing challenge to

management's accounting, reporting

and internal controls. The Committee

discussed with management and the

external Auditor the significant areas of

complexity, management judgement

and estimation in relation to the Financial

Statements, and the impact of any

accounting developments or legislative

changes. The Committee has satisfied

itself that management had adequately

identified and considered all potentially

significant accounting and disclosure

matters. The key items discussed

are outlined on pages 132 and 133.

**Internal control and** 

**risk management**

The Board is responsible for establishing

procedures to manage risk, overseeing

the internal control framework and

determining the nature and extent

of the principal risks the Company is

willing to take to achieve its long-term

objectives. The Committee supports

the Board by reviewing the effectiveness

of the Group's risk management

and internal control framework and

assessing emerging and principal risks,

and undertook such a review in respect

of 2025.

In order to effectively review the risk

management and internal control

framework, the Committee:

–receives regular reports from

management and the Risk and

Assurance team on the effectiveness

of the risk management and internal

control framework, including key

financial, operational, reporting and

compliance controls; and reports

from the external Auditor on financial

reporting controls;

–reviews the process by which risks

are identified (including procedures

in place to identify emerging risks

and linkage to wider consideration of

strategy and resilience) and assesses

the timeliness and effectiveness

of action taken by management,

including regular reports on the

Company's overall risk management

and internal control framework and

principal risks; and

–receives regular reports relevant to

risk management and internal controls,

both financial and non-financial, to

ensure that current and emerging risks

are identified and assessed and that

there is an appropriate management

response (see pages 46 to 53

for further detail on our risks and

initiatives to manage them).

---

| | | |
|:---|:---|:---|
| 130 | IHG | Annual Report and Form 20-F 2025 |

---

Audit Committee Report continued<br>

The Committee also considered insights

from Executive Committee sponsors

on areas where evolving risk dynamics

may require enhanced management

focus in 2026, including AI and data

governance; operational resilience and

supply chain assurance; legal and

regulatory complexity; ethical and

societal expectations; and future

leadership and technology capabilities.

These themes inform management's

ongoing work on the design and

oversight of material controls.

As part of the Committee's review of

the risk management and internal control

framework, key financial, operational,

reporting and compliance controls

across the business continue to be

monitored and tested throughout

the year. The Committee assesses the

approach to Sarbanes-Oxley Act 2002

(SOX) compliance in accordance with

our US obligations and reviews reports

on the progress of the SOX programme

at each meeting. During the year, the

Committee received updates on the

automation of SOX controls and the

ongoing programme to streamline

the overall control count in line with

continued best practice and advances

in automation.

During 2025, the Committee considered

the activity undertaken by the Risk and

Assurance team to enhance the Board's

oversight of risk management and internal

controls, including preparatory work

to support a future Board declaration

on the effectiveness of material controls

under Provision 29 of the UK Corporate

Governance Code. This preparatory work

has focused on confirming the scope

of material controls across financial,

operational, compliance and reporting

processes; aligning those controls with the

Group's principal risks; and strengthening

associated documents and evidence.

The Committee also considered the

output of an external assessment of

the Group's cybersecurity control

environment.

Having reviewed the risk management

and internal control framework

throughout the year, the Committee

concluded that the Group continues

to have an effective framework of risk

management and internal controls,

and that there are no material

weaknesses in the control environment.

**Tax risks, policies and governance**

The Group's CFO has responsibility

for tax and tax policies at Board level.

These policies and procedures are

subject to regular review and update

and are approved by the Audit

Committee. Procedures to minimise

risk include the preparation of thorough

tax risk assessments for all transactions

carrying material tax risk and, where

appropriate, material tax uncertainties

are discussed and resolved with tax

authorities in advance.

---

| | |
|:---|:---|
| **+** | Our Approach to Tax document is available <br>at [ihgplc.com/en/responsible-business/](ihgplc.com/en/responsible-business/policies-and-position-statements)<br>[policies-and-position-statements](ihgplc.com/en/responsible-business/policies-and-position-statements) |
|  | Our Approach to Tax document is available <br>at [ihgplc.com/en/responsible-business/](ihgplc.com/en/responsible-business/policies-and-position-statements)<br>[policies-and-position-statements](ihgplc.com/en/responsible-business/policies-and-position-statements) |
|  | Our Approach to Tax document is available <br>at [ihgplc.com/en/responsible-business/](ihgplc.com/en/responsible-business/policies-and-position-statements)<br>[policies-and-position-statements](ihgplc.com/en/responsible-business/policies-and-position-statements) |

---

**Principal risk areas**

During the year, the Committee discussed

and assessed the range and aggregate

impact of dynamic risks that the Group

faced in the context of the ongoing

volatility in the geopolitical and macro-

economic environment. Factors noted

in the Committee's discussions included:

–ongoing dynamic challenges arising

from geopolitical tensions, changes

in legislative proposals and cyber

threats; and

–emerging issues including data usage,

the adoption of AI and third-party

supplier dependencies which manifest

across multiple principal risks.

Further details of our principal risks,

uncertainties and review process can

be found on pages 46 to 53.

**Non-audit services**

IHG's Audit and Non-Audit Services

Pre-Approval Policy helps to ensure that

the external Auditor's independence

and objectivity are not impacted by

non-audit services provided by the

external Auditor. The policy is reviewed

by the Audit Committee annually,

and minor amendments were made

during the year to align with the FRC's

Revised Ethical Standards 2024.

The policy requires that pre-approval

is obtained from the Audit Committee

for all services provided by the

external Auditor before any work can

commence, without any de minimis

threshold in line with US Securities

and Exchange (SEC) requirements

and UK ethical standards.

The Committee reviewed the audit and

non-audit fees incurred with the external

Auditor and noted that there had been

no prohibited services (under SEC

requirements or UK ethical standards)

provided to the Group during the year.

The Committee is prohibited from

delegating non-audit services approval

to management, and compliance

with the policy is actively managed.

IHG is committed to maintaining

non-audit fees at a low level, and the

Committee remains cognisant of the

guidelines of investor advisory bodies

on non-audit fees. During 2025, 16%

of services provided to the Group were

non-audit services (2024: 12%), primarily

related to System and Organisation

Controls Reports. These services are

typically performed by external Auditors,

as knowledge of the Company or

Group is necessary for the provision

of the non-audit services.

Details of the fees paid to PwC for non-

audit and statutory audit work during

2025 can be found on page 200.

The Committee is satisfied that the

Company was compliant during the

year with the FRC's latest Ethical and

Auditing Standards in respect of the

scope and maximum permitted level

of fees incurred for non-audit services

provided by PwC. Where non-audit

work is performed by PwC, both the

Company and PwC ensure adherence

to robust processes to prevent the

objectivity and independence of the

external Auditor being compromised.

**Risk and assurance – Internal Audit**

The Committee discusses and approves

the Internal Audit annual plan, which

aims to provide objective and insightful

assurance that appropriate controls

are in place to support our strategy

and growth ambitions. Progress against

the Internal Audit plan is reported

at each meeting, and, during 2025,

the Committee reviewed several areas

set out in the plan relating to non-

financial reporting and metrics included

in the LTIP. The plan also adapted

during the year to respond to regulatory

developments and legislation in relation

to sustainability reporting.

The Committee also received updates

on the arrangements for confidential

reporting and on certain investigations

supported by Internal Audit during

the year.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 131 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

The 2026 plan presented to the

Committee in December 2025

maintains focus on the integrity of

the risk management and internal

control framework in the context of the

key risks of the business. Areas of focus

in 2026 include data, technology

and the acceleration of AI adoption,

operational resilience and the control

framework for non-financial reporting.

Following consideration, the Committee

confirmed its agreement to the

2026 Internal Audit plan, including

the assurance objectives identified.

The Committee reviews the results

of completed audits and observations

from other ongoing assurance and

control improvement support, as well

as actions taken by management in

response to Internal Audit's work.

The functional effectiveness of Internal

Audit is assessed on an ongoing basis

and reported to the Committee

throughout the year. During 2025, the

Committee reviewed the Internal Audit

Charter, approved the Internal Audit plan

and received regular reports on Internal

Audit's work, findings and follow-up of

management actions. The Committee

was satisfied that the function remains

appropriately resourced, operates

in line with its Charter and continues

to provide independent assurance

over key risks and internal controls.

In 2026, the Committee will receive

a further overview of Internal Audit's

conformance with the updated

Institute of Internal Auditors' Standards,

alongside stakeholder feedback

gathered following the 2025 year-end,

to inform its assessment of Internal

Audit's effectiveness.

An independent quality evaluation of

the function was last conducted in 2023.

**Governance and compliance**

The Committee is also responsible

for reviewing the Group's Code of

Conduct and related policies.

**Looking forward**

During 2026, the Committee will remain

focused on the Group's internal control

and risk management environment

and approach to financial and non-

financial reporting. In doing so, the

Committee will continue to oversee

the development and operation of

arrangements for monitoring and

reviewing the effectiveness of material

controls, ahead of the Board's declaration

required under Provision 29 of the UK

Corporate Governance Code.

**External Auditor –** 

**reappointment of PwC**

The Committee reviewed and assessed

PwC's performance during the year

and considered its reappointment

as the Group's external Auditor. PwC

has been the Group's Auditor since its

appointment in 2021, following a tender

process in 2019. During 2025, Andrew

Hammond continued as PwC's lead

audit partner.

The Committee regularly reviewed

and assessed the progress of the audit

throughout the year and also undertook

a detailed effectiveness assessment

through two surveys: one for

Committee members and the other

for senior management.

The surveys focused on the following

areas:

–the quality and service of the

audit team;

–audit planning and execution;

–communication with the Committee

and senior management;

–the Auditors' assessment of process

controls and financial reporting; and

–the independence and objectivity

of the Auditors.

The responses to the surveys were

positive and noted in particular that

the PwC audit team demonstrated

strong technical expertise and had

developed effective and collaborative

ways of working with the Company's

management.

Accordingly, the Committee concluded

that the PwC audit team was providing

the required quality in its provision

of audit services and maintained

appropriate levels of independence

and objectivity. The Committee

therefore recommended to the Board

the continued appointment of PwC

as external Auditor.

The Audit Quality Review team (AQR)

from the FRC undertook an inspection

of PwC's audit of the 2024 Annual

Report and Accounts. The AQR team

completed its formal governance

processes and wrote to the Chair of

the Audit Committee with its conclusion

on the results of its review. No key or

other findings were identified.

The Committee considered the AQR

report and results of the surveys.

The Group has complied with the

requirements of the Statutory Audit

Services for Large Companies Market

Investigation (Mandatory Use of

Competitive Tender Processes and

Audit Committee Responsibilities)

Order 2014, which relates to the

frequency and governance of tenders

for the appointment of the external

Auditor and the setting of a policy on

the provision of non-audit services.

The Committee has also followed

the FRC's Audit Committee Minimum

Standard (Minimum Standard) through

undertaking its role and discharging

its responsibilities as illustrated in

this Audit Committee Report. The

Committee also notes the requirement

to put the external audit to tender

every 10 years and the requirements

around the tender and selection

process, including the participation

of 'challenger' firms, as set out in

the Minimum Standard.

---

| | | |
|:---|:---|:---|
| 132 | IHG | Annual Report and Form 20-F 2025 |

---

Audit Committee Report continued<br>

---

| | | |
|:---|:---|:---|
| **Significant matters in the 2025 Financial Statements** | **Significant matters in the 2025 Financial Statements** | **Significant matters in the 2025 Financial Statements** |
| **Area for focus** | **Issue/role of the Committee** | **Conclusions/actions taken** |
| **Accounting for** <br>**IHG One Rewards**<br>| Accounting for IHG One Rewards <br>requires significant use of estimation <br>techniques and represents a material <br>deferred revenue balance. The <br>Committee reviews the controls, <br>judgements and estimates related <br>to accounting for IHG One Rewards.<br>| The Committee reviewed the deferred revenue balance, <br>the valuation approach, the results of the external actuarial <br>review and procedures completed to determine the breakage <br>assumption for outstanding IHG One Rewards points. The <br>Committee concluded that the deferred revenue balance <br>is appropriately stated.<br>|
| **Accounting for** <br>**the System Fund**<br>| Given the unique nature of the <br>System Fund, the Committee <br>reviews the controls and processes <br>related to System Fund accounting.<br>| The Committee met with senior finance management to <br>review and evaluate the risk areas associated with the System <br>Fund. The Committee reviewed a paper from management <br>summarising the principles determining the allocation of <br>revenues and expenses to the System Fund and the related <br>governance and internal control environment. The Committee <br>concluded that the accounting treatment of the System Fund <br>and related disclosures are appropriate.<br>|
| **Exceptional items** | The Group exercises judgement <br>in presenting exceptional items. <br>The Committee reviews and <br>challenges the classification of <br>items as exceptional based on <br>their size, nature or incidence, with <br>consideration given to consistency <br>of treatment with prior years and <br>between gains and losses.<br>| The Committee discussed with management and reviewed <br>reports outlining the significance, timing and nature of <br>items classified as exceptional. The Committee considered <br>the sufficiency of disclosure and whether such disclosure <br>explained the rationale for why each item is considered to be <br>exceptional. The Committee concluded that the disclosures <br>and the treatment of the items shown as exceptional are <br>appropriate.<br>|
| **Litigation and** <br>**contingencies**<br>| From time to time, the Group is <br>subject to legal proceedings, the <br>ultimate outcome of each being <br>subject to many uncertainties. <br>The Committee reviews and <br>evaluates the need for provisioning <br>and considers the adequacy of <br>the disclosure.<br>| At each meeting during the year, the Committee discussed <br>reports detailing all material litigation matters including <br>commercial disputes with the Group's General Counsel and <br>senior finance management. The Committee discussed and <br>agreed any provisioning requirements based on underlying <br>factors. Disclosures were assessed, with particular emphasis <br>on the completeness of uncertainties disclosed, and were <br>concluded to be appropriate.<br>|
| **Acquisition of** <br>**the Ruby brand**<br>| In February 2025, the Group <br>completed the acquisition of the <br>Ruby brand. Judgement was applied <br>in determining the cost of the brand <br>as the purchase consideration <br>included an upfront payment as well <br>as future contingent payments. <br>| The Committee discussed with management and reviewed <br>reports detailing the accounting treatment for the acquisition <br>of the Ruby brand. The Committee concluded that the <br>amounts recognised in respect of the indefinite life intangible <br>asset (brand) and contingent purchase consideration liability <br>were appropriate. <br>|
| **Impairment testing** | Judgement is applied in assessing <br>whether triggering events for <br>impairment testing of assets or cash-<br>generating units have occurred. <br>The Committee scrutinises the <br>methodologies applied and the <br>potential for asset impairment <br>or impairment reversal.<br>| The Committee discussed with management and reviewed <br>reports outlining the approach taken and conclusions <br>reached on impairment testing, including examining whether <br>triggering events for impairment, or reversal, had occurred. <br>The Committee agreed with the determinations reached <br>on impairment.<br>|

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 133 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| | | |
|:---|:---|:---|
| **Significant matters in the 2025 Financial Statements** | **Significant matters in the 2025 Financial Statements** | **Significant matters in the 2025 Financial Statements** |
| **Area for focus** | **Issue/role of the Committee** | **Conclusions/actions taken** |
| **Going concern** <br>**and viability**<br>| The Committee reviews <br>management's financial modelling <br>to conclude on the appropriateness <br>of the going concern and viability <br>statement.<br>| The Committee reviewed and challenged the scenarios <br>considered by management, including how they incorporated <br>the impact of the new syndicated revolving credit facility, <br>which no longer contains financial covenants. The Committee <br>reviewed the detailed cash flow forecasts and the mitigating <br>actions available to management considered in its going <br>concern assessment, to June 2027 and the three-year viability <br>assessment and concluded that these were appropriate. <br>The Committee also reviewed and challenged the reverse <br>stress test assumptions to confirm the viability of the Group. <br>The Committee reviewed going concern disclosures (page <br>183) and the viability statement (pages 113 and 114) and is <br>satisfied that these are appropriate.<br>|
| **Climate risk** | In preparing the Group Financial <br>Statements, the potential <br>impacts of climate change <br>have been considered.<br>| The Committee reviewed an analysis from management <br>summarising the approach taken to consider climate risk <br>in the Group Financial Statements and concluded that the <br>disclosures were appropriate. The Committee agreed that <br>the disclosures made in respect of the TCFD were appropriate. <br>The Committee satisfied itself that the approach across the <br>Annual Report has been proportionate and consistent.<br>|
| **Disclosures and** <br>**accounting** <br>**policies**<br>| The Committee considers the <br>appropriateness of the accounting <br>policies applied and the disclosures <br>in the Group Financial Statements.<br>| The Committee reviewed reports detailing the policies <br>applied to significant transactions and changes in policies <br>and disclosures compared to previous years. The Committee <br>concluded that the accounting policies applied and <br>disclosures to the Group Financial Statements are appropriate <br>and proportional.<br>|
| **Impact of IFRS 18** | IFRS 18 'Presentation and Disclosure in <br>Financial Statements' will be adopted <br>from 1 January 2027. In advance of <br>major new accounting standards, the <br>Committee assesses management's <br>plan for adoption.<br>| The Committee reviewed reports outlining management's <br>initial impact assessment and discussed the key impacts <br>and wider plan for adoption of the new standard in 2027. <br>The Committee reviewed the disclosure under 'new <br>standards issued but not yet effective' and was satisfied <br>that it was appropriate.<br>|

---

---

| | | |
|:---|:---|:---|
| 134 | IHG | Annual Report and Form 20-F 2025 |

---

Responsible Business Committee Report<br>

![Gov_RespBusComm_intro.jpg](ihg-20251231_g241.jpg)

"The Committee

remains focused

on ensuring that

IHG's responsible

business priorities

are clearly defined

and articulated

to stakeholders."

Graham Allan

**Chair of the Responsible** 

**Business Committee**

**Highlights**<br>–Continued oversight of the <br>Group's strategy, workstreams <br>and progress in respect of its <br>Journey to Tomorrow pillars.<br>–Coordinating with the <br>Remuneration Committee <br>in connection with the <br>assessment of responsible <br>business-related elements <br>of the LTIP.<br>–Consideration of key themes <br>of feedback received from <br>the Group's workforce <br>through the Voice of the <br>Employee engagement <br>programme.<br>

**Key duties and role** 

**of the Committee**

**Key objectives and summary** 

**of responsibilities**

The Committee reviews and advises

the Board on the Group's responsible

business objectives and strategy,

including its impact on the environment

and climate change; social, community

and human rights issues; its approach

to sustainable development and

responsible procurement; and

stakeholder engagement in relation

to the Group's approach to responsible

business. The Committee is also

responsible for assessing the Board's

engagement with the workforce

and reviewing the Group's culture

and inclusivity.

The Committee's role, responsibilities

and authority delegated to it by

the Board are set out in its Terms of

Reference (ToR), which are reviewed

annually and approved by the Board.

---

| | |
|:---|:---|
| **+** | The ToR are available at [ihgplc.com/](ihgplc.com/investors)<br>[investors](ihgplc.com/investors) under Corporate governance. |
|  | The ToR are available at [ihgplc.com/](ihgplc.com/investors)<br>[investors](ihgplc.com/investors) under Corporate governance. |

---

**Membership and attendance** 

**at meetings**

The Committee's membership and

attendance at meetings are set out

on page 117. The Chair of the Board,

CEO, General Counsel and Company

Secretary, Executive Vice President,

Global Corporate Affairs, Chief

Sustainability Officer and Deputy

Company Secretary also attended

meetings held during the year.

**Reporting to the Board**

The Committee Chair updates the Board

on all key issues raised at Committee

meetings. Papers and minutes for each

meeting are also circulated to all Board

members, who are invited to request

further information where necessary.

**Effectiveness of the Committee**

In 2025, the Committee's effectiveness

was reviewed as part of the internal

Board performance review process. The

Committee concluded that it remains

effective and meets its responsibilities

well. Focus areas identified included

continued scrutiny of the development

of the Group's overall responsible

business strategy.

**Focus areas and activities**

**Responsible business commitments**

The Committee's key responsibilities

and focus areas over the year have been:

–assessing the 2025 strategic priorities

that support the Group's 2030

responsible business commitments

and monitoring the progress

against them;

–reviewing the status of the Group's

initiatives to reduce carbon emissions,

for example through the progress

of the Low Carbon Pioneers hotel

programme, and consideration

of the broader approach to energy

and carbon reporting;

–overseeing the Group's responsible

procurement strategy, with a

particular focus on the evolution of

the supplier due diligence programme

to incorporate third-party verified

due diligence for high-risk suppliers

and approval of a refreshed Supplier

Code of Conduct;

–assessing the Group's IHG Academy

programme to provide people with

access to, and training for, careers in

hospitality, including consideration

of participation rates, growth

aspirations and the impact of

technology on the offering;

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 135 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

–reviewing the Group's human

rights programme, including the

launch of self-assessment tools

to aid responsible labour practices

and mandatory global training to

support the prevention of human

trafficking; and

–monitoring the progress of the

Group's initiatives to improve the lives

of people in its communities around

the world, in particular through the

progress of its strategic collaboration

with Action Against Hunger.

---

| | |
|:---|:---|
| **+** | Further information on our 10-year <br>responsible business plan can be <br>found on pages 54 to 84. |
|  | Further information on our 10-year <br>responsible business plan can be <br>found on pages 54 to 84. |
|  | Further information on our 10-year <br>responsible business plan can be <br>found on pages 54 to 84. |

---

**Looking forward**

During 2026, the Committee will

focus on the evolution of the Group's

responsible business commitments.

---

| | |
|:---|:---|
| **Voice of the Employee** | **Voice of the Employee** |
| **As IHG's designated Non-Executive** <br>**Director (NED) with responsibility** <br>**for workforce engagement (Voice** <br>**of the Employee), Duriya Farooqui,** <br>**supported by the Board and** <br>**the Group's Global HR team, held** <br>**a series of employee interface** <br>**sessions throughout the year to** <br>**engage directly with members of** <br>**IHG's corporate and hotel workforces,** <br>**with the aim of sharing feedback** <br>**with the Board for consideration** <br>**in its decision-making.**<br>**Role and responsibilities**<br>The role and responsibilities of the <br>designated Voice of the Employee <br>NED are to:<br>–support the design of the structure <br>and content of Board discussions on <br>employee engagement and culture;<br>–evaluate employee engagement <br>approaches and their effectiveness;<br>–ensure that employee feedback <br>and interests are factored into the <br>Board's decisions and KPI setting;<br>–ensure that the Board, through the <br>Executive Committee, has effective <br>methods of receiving feedback from <br>employees and communicating <br>Board and executive decisions and <br>priorities throughout the organisation;<br>–ensure that all significant business <br>and budget proposals include <br>a management assessment of <br>the impact on employees; and<br>–ensure that executives share <br>employee feedback openly, <br>transparently and in a balanced way, <br>including reviewing employee <br>engagement surveys and other <br>employee reports, including <br>whistleblowing.<br>**2025 engagement**<br>Throughout 2025, Duriya, with the <br>participation of several other NEDs, <br>hosted eight employee interface <br>meetings to engage with a cross-<br>section of employees, and received <br>detailed feedback. These feedback <br>sessions, which were a mix of in-<br>person and virtual meetings/forums, <br>included leader groups within the <br>hotel, reservations and corporate <br>populations as well as employee <br>resource groups (ERG) representatives, <br>and took place across the UK, US, <br>India, China and various EMEAA <br>countries.<br>| Discussion topics and themes in <br>relation to the feedback received <br>from employees included: workplace <br>culture and the embedding of a high-<br>performance culture; leader <br>communications; strategy, prioritisation <br>and collaboration; talent attraction; <br>onboarding and retention; technology <br>and career development.<br>Additional engagement and activities <br>undertaken by Duriya, the Chair of <br>the Board, and other NEDs during <br>the year included:<br>–monitoring and reviewing the <br>content and feedback from <br>global 'all employee' CEO calls;<br>–reviewing employee engagement <br>survey results;<br>–engaging with the Global HR <br>Leadership team to receive <br>broader cultural insights; and<br>–engaging directly with senior leaders <br>at Board and Committee meetings <br>and the Board strategy event.<br>**Insights and learnings**<br>Duriya provided regular feedback to <br>the Responsible Business Committee <br>and the Board throughout the year, <br>with key Board discussions taking <br>place around the insights as well as <br>action planning arising from employee <br>engagement survey results.<br>**Plans for 2026**<br>Duriya will remain as the Board <br>member with responsibility for <br>workforce engagement in 2026, <br>assisted by additional NEDs.<br>A schedule of discussions and feedback <br>sessions has been arranged for 2026 <br>and will continue to encompass a <br>wide group of employees and leaders <br>from across all regions, including <br>ERGs. The discussion topics will be <br>tailored to specifically focus on those <br>areas that support the strategy and <br>the evolving culture. Additionally, <br>the Board will continue to keep <br>the functioning of the Voice of the <br>Employee programme under review <br>to ensure it meets best practice <br>and complies with regulatory <br>developments.<br>|

---

---

| | | |
|:---|:---|:---|
| 136 | IHG | Annual Report and Form 20-F 2025 |

---

Nomination Committee Report<br>

![Gov_NomComm_intro.jpg](ihg-20251231_g242.jpg)

"The execution

of considered

succession

planning helps

the Board to

meet long-term

governance

responsibilities."

Deanna Oppenheimer

**Chair of the Nomination Committee**

**Highlights**<br>–Continued assessment <br>of Board and Committee <br>composition and <br>succession plans.<br>–Continued development <br>of Executive Committee <br>succession planning.<br>–Oversaw the completion <br>of the internal Board <br>and Committee <br>performance review.<br>

**Key duties and role** 

**of the Committee**

**Key objectives and summary** 

**of responsibilities**

In line with UK corporate governance

principles, the Committee reviews

the composition of the Board and

its Principal Committees, evaluating

the balance of skills, experience,

independence and knowledge before

making appropriate recommendations

to the Board as to any changes. It also

ensures that plans are in place for

orderly succession for both Directors

and other senior executives, and is

responsible for reviewing the Group's

senior leadership needs.

The Committee's role, responsibilities

and authority delegated to it by the

Board, including processes in relation

to appointments, are set out in its

Terms of Reference (ToR), which are

reviewed annually and approved

by the Board. The ToR state that

the Committee is responsible for

considering and proposing potential

candidates for appointment to the

Board and maintaining oversight

of Board and individual Director

performance.

---

| | |
|:---|:---|
| **+** | The ToR are available at [ihgplc.com/](ihgplc.com/investors)<br>[investors](ihgplc.com/investors) under Corporate governance. |
|  | The ToR are available at [ihgplc.com/](ihgplc.com/investors)<br>[investors](ihgplc.com/investors) under Corporate governance. |

---

The Committee's key responsibilities and

focus areas during the year have been:

–assessing the composition of the

Board and the Principal Committees

and succession planning, in

accordance with the ToR and

consistent with applicable policies;

–overseeing the internal performance

review of the Board and its Principal

Committees as well as the reviews

of individual Non-Executive

Directors; and

–monitoring the Executive Committee

and senior leadership talent and

succession planning.

**Membership and attendance** 

**at meetings**

The Committee's membership and

attendance at meetings are available

on page 117. All members of the

Committee are Non-Executive Directors.

When the Committee considers matters

relating to the Chair of the Board,

the Senior Independent Non-Executive

Director (SID) acts as Committee Chair.

**Reporting to the Board**

The Committee makes recommendations

to the Board for all Board appointments.

Minutes are circulated to and reviewed by

Committee members, and the Committee

Chair reports back to the Board on the

activities of the Committee following

each meeting.

**Effectiveness of the Committee** 

**and internal performance review**

During 2025, the Committee was

reviewed as part of the internal Board

performance review. Details of the

performance review, including how it

was conducted and the actions arising

from the review, are set out on page 127.

The review identified that the Committee

continues to operate effectively and

highlighted the sustained focus on Board

composition and executive and senior

talent succession.

**Focus areas and activities**

**Board and Principal Committee** 

**composition and succession planning**

The Committee regularly reviewed

and considered Board refreshment

and succession plans. To inform its

assessment, the Committee continued to

maintain and review throughout the year a

Board refreshment and succession plan,

which tracks the skills, competencies

and experience of the Board members

and provides an overview of the Board's

tenure, profile and Committee assignment

considerations.

Following evaluation of the plan, the

Committee determined that the Board

would benefit from additional financial

skills and experience. Accordingly,

the Committee initiated a search for

an additional Non-Executive Director

to meet this profile.

Russell Reynolds was engaged in

connection with the Non-Executive

Director search. Russell Reynolds does

not have any other connection with the

Company or any individual Directors.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 137 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Russell Reynolds conducted initial reviews

and assessments to identify suitable

candidates for the role. Shortlisted

candidates met with various members of

the Board and management as relevant,

with assessments being made on the

appropriate competencies, functional

experience, cultural characteristics and

consideration of candidates' other

commitments in line with the provisions

of the UK Corporate Governance Code.

Following completion of an interview

process and reference and background

checks, the Committee recommended

to the Board the appointment of

Nicholas Cadbury as Non-Executive

Director, which was approved by the

Board with effect from 1 March 2026.

**Executive Committee appointments**

The Committee discussed and considered

the changes to the Executive Committee

during the year, including the promotion

of Tejas Katre as Chief Human

Resources Officer.

The Committee considered the search

processes that had been followed to

consider candidates for this position,

including the assessment of external

and internal candidates as relevant,

and concluded it should recommend

the appointment to the Board.

**Internal performance review**

The Committee oversaw the internal

Board and Board Committee performance

review. The Committee approved

the development of questionnaires

by Committee Chairs with the support

of the Company Secretary, which

focused on overall performance and

effectiveness as well as matters

specific to the Board and respective

Committees, before being circulated

to Board members.

The Committee also considered and

endorsed the approach to individual

Non-Executive Director performance

review, with the Chair conducting

individual Non-Executive Director

reviews. The Senior Independent

Non-Executive Director also led the

review of the Chair.

Further information on the Board

and Committee internal performance

review process as well as the individual

Non-Executive Director reviews can

be found on page 127.

**Executive Committee talent** 

**and succession**

Throughout the year, the Committee

also received updates on talent and

succession planning at Executive

Committee and senior leadership levels,

noting in particular progress in relation

to building depth of internal talent

and embedding a performance culture

(further details of which are included

on pages 64 and 145).

In compliance with UK reporting

requirements, information on the

balance and profile of the Board and

the Executive Committee is included

on page 121 and on page 65 for

the Group's employees.

The Group's Global Inclusion Policy

reflects the global nature of our business

and our desire to create a culture of

inclusion across all of the countries we

operate in. The policy applies across

the Group and, when assessing and

considering succession planning at

Board and Executive Committee levels,

the Committee takes the policy into

account in accordance with UK

governance requirements. The policy

further aligns to the Group's responsible

business commitments, and a description

of progress against these commitments

is included on pages 54 to 84.

**Looking forward**

In 2026, the Committee will continue

to ensure that we have appropriate

plans in place for orderly succession

of appointments to the Board and

to senior management, so that we

attract top talent that reflects the

owners, guests and communities

with whom we do business.

---

| | | |
|:---|:---|:---|
| 138 | IHG | Annual Report and Form 20-F 2025 |

---

Directors' Remuneration Report<br>

![Gov_DRR_intro.jpg](ihg-20251231_g243.jpg)

"I thank

investors for

their feedback,

continued

support of our

remuneration

policy and their

confidence

in management

to continue

to deliver

sustained

growth."

Angie Risley

**Chair of the Remuneration Committee**

---

| |
|:---|
| **Table of contents** |
| **Remuneration at a glance** |
| Pages 140 to 141 |
| A snapshot of remuneration <br>earned for 2025 and alignment <br>of pay with strategy. |
| **2025 Review of Directors'** <br>**Remuneration Policy** |
| Pages 142 to 144 |
| Details of the shareholder <br>consultation process, a <br>summary of the key elements <br>of the resulting Directors' <br>Remuneration Policy and <br>implementation for 2026. |
| **Remuneration at IHG –** <br>**the wider context** |
| Pages 145 to 147 |
| How we align elements of <br>remuneration across the business <br>and in-year developments to <br>how we reward our colleagues. |
| **Annual Report on Remuneration** |
| Pages 148 to 161 |
| Details on the individual elements <br>of remuneration for 2025 and <br>other remuneration disclosures <br>relating to the year. |

---

On behalf of the Board, I am delighted

to present the Directors' Remuneration

Report for the year ended 31 December

2025. In this report, I set out how we

have worked with our stakeholders

to develop and implement a revised

approach to remuneration for Executive

Directors and the investor engagement

we had following the 2025 AGM vote,

as well as detailing performance and

associated remuneration outcomes

for the year.

**2025 business** 

**performance context**

Continued to be driven by our ambitious

growth algorithm, business performance

was strong across all KPIs during the year.

We grew Global RevPAR by 1.5% and

NSSG was 4.7%<sup>a</sup>, operating profit

from reportable segments<sup>b</sup>increased

by $141m to $1,265m, and adjusted

free cash flow<sup>b</sup> increased by $238m

to $893m.

We have again seen substantial generation

of shareholder value, including a total

proposed dividend for the year of 184.5¢

and the completion of a $900m

share buyback programme for 2025.

**Overview of 2025** 

**remuneration outcomes**

The incentive plan outcomes for 2025

reflect sustained strong business

performance over the short and

long term:

–The achievement on Annual

Performance Plan (APP) metrics

resulted in awards for Executive

Directors of 56.5% of maximum.

While there were headwinds to

trading linked to macro-economic

uncertainties which impacted our

ability to reach a stretching operating

profit target, excellent performance

for openings and room signings

resulted in an overall outcome

above target.

–The 2023–25 Long-Term Incentive

Plan (LTIP) award will vest at 82.7%

of maximum, driven by upper

quartile relative Total Shareholder

Return (TSR), exceptional performance

against ambitious EPS and cash flow

targets, and between threshold and

maximum performance for relative

NSSG and planet measures.

–The Remuneration Committee

(Committee) reviewed the formulaic

performance outcomes in line

with our framework for assessing

discretion. In line with previous

precedents, the operating profit

outcome under the APP and cash flow

outcome under the LTIP were adjusted

to exclude the integration costs of

the Ruby business as an exceptional

unforeseen cost. Without this

adjustment, the total APP outcome

would have been approximately 1%

lower as a proportion of target. There

is no impact on the LTIP vesting.

For more information see page 149.

In alignment with the evolution of our

Journey to Tomorrow plan and people

principles, during 2025 the Committee

applied discretion to remove a portion

of the 2023–25 LTIP award subject to

gender and ethnicity representation

targets (10% weighting). No replacement

was made for the portion removed, and

this element of the LTIP will therefore

not vest. The Committee also adjusted

the people targets for the 2024–26

LTIP award. Further details are provided

on pages 149 and 150.

The overall higher remuneration for

2025 demonstrates the alignment

between pay and performance and

reflects the above target incentive

outcomes, the revised bonus award

levels under the Directors' Remuneration

Policy (Policy) and substantial share

price appreciation in the last three years.

**Review of remuneration**

We undertook a significant review

of remuneration arrangements for

the Executive Directors and other

Executive Committee roles during

the year, culminating in the formation

of a revised Policy, which was put

forward for shareholder approval

at the 2025 AGM.

The Policy review was driven by

the identification of a number of

key challenges faced by the business,

including risks to our senior talent and

succession pipeline, competitiveness

and structural differences against

our global talent peers, and internal

incentive provision consistency

and pay compression issues.

a.Net system size growth of 4.7% after adjusting for the impact of removing 7,092 rooms previously

affiliated with The Venetian Resort Las Vegas in January 2025. Net system size growth of 4.0%

on a reported basis.

b.Definitions for Non-GAAP revenue and operating profit measures can be found on pages 107 to 112.

Reconciliations of these measures to the most directly comparable line items within the Group

Financial Statements can be found on pages 250 to 256.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 139 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

The Policy was based on a set of clear

principles and a rationale for change

including our increasingly global and

US-centric business and observed

evidence from analysis of talent flows

and benchmarking against relevant

global peers.

Further details on the background,

rationale for change, and the Policy

itself are fully described on pages

159 to 175 of our 2024 Annual Report

and Form 20-F.

We engaged in a comprehensive

shareholder consultation exercise ahead

of the 2025 AGM involving almost 60% of

our register and the major proxy agencies,

with several rounds of discussions taking

place in a two-way dialogue. We listened

to feedback and responded by actively

refining the original proposals, including

a downwards adjustment to RSU award

levels with performance-based awards

comprising the vast majority of the

long-term incentive opportunity, at 84%

for the CEO. Full details of the consultation

process, including the dates of

shareholder engagement, information

shared and the outcomes of this exercise,

are provided on page 142 of this report.

Based on the feedback provided

prior to and following the AGM, the

areas of concern varied by shareholder,

but the main challenges raised were in

relation to elements of the global peer

group and the scale and/or structure of

the proposed changes to remuneration.

The same concerns influenced the vote

on the Directors' Remuneration Report

itself, which also received substantial

support (of almost 80% of shareholders).

The Committee stands by the

appropriateness of the global peer

group and the scale and structure of the

remuneration proposed, given the nature

of IHG's business, and the need for

remuneration arrangements suitable to

recruit, motivate and retain appropriate

leadership for a large, high growth

and global business. A clear majority

of our largest shareholders agree,

as demonstrated by a vote of almost

70% in favour of the Policy.

In light of this strong overall shareholder

support, the ultimate voting being in

line with expectations in the context

of the shareholder proxy body

recommendations, the Committee

concluded that it was appropriate

to proceed with the implementation

of the Policy, as outlined in the 2024

Directors'' Remuneration Report.

Following the AGM, we contacted

shareholders to invite further feedback

and discussion to understand reasons

for the 30% of shareholders who voted

against the Policy and 21% who voted

against the 2024 Directors' Remuneration

Report. We also had two-way discussions

with all major representative proxy

agencies. While no new insights

arose from our post-AGM engagement

with stakeholders, there were requests

for further clarity on the processes which

we have sought to address in this report.

**Wider workforce** 

**remuneration and** 

**employee engagement**

In 2025, the average budget for salary

increases was 3% for our UK and US

corporate workforce. The overall

average budget for 2026 increases

for this population will be 2%.

For the UK leased hotel estate, in

agreement with the owner, budgeted

2025 salary increases ranged from

2% to 9% and for 2026 range from 2%

to 8% (excluding limited exceptions

above this), with higher increases

applicable for frontline employees.

During 2025, we introduced new

performance management and reward

structures to drive a high-performance

culture and achieve closer alignment

of pay with individual performance.

Further details are provided on

page 145 of this report.

Additional funding was again made

available to the budgeted amount

of our 2025 Annual Performance Plan

to increase bonus amounts for our

strongest performers.

We reviewed our colleague travel

benefit programme during 2025

and launched a refreshed offering in

December. For corporate colleagues,

we continued to provide three

additional days of leave during 2025.

We were pleased to see our overall

employee engagement scores remain

resilient at 87%, which once again

saw IHG ranked in the top quartile

of Mercer's most engaged employers.

IHG was named in the Fortune 100

Best Companies to Work For 2025.

I have had the opportunity to

participate in UK and US employee

engagement and listening sessions

during 2025, and would like to thank

all colleagues involved in these

sessions for their time and feedback.

**Remuneration for 2026**

Executive Directors' salaries will increase

by 2% with effect from 1 April 2026,

aligned with increases for the UK and

US corporate workforce.

The APP measures for 2026 will

be operating profit from reportable

segments (70%), room signings (15%)

and Net System Size Growth (NSSG;

15%). NSSG will replace the existing

openings measure, ensuring that senior

management are focused not only

on new rooms, but also the rooms

that leave the system, so that there is

continued motivation to grow our overall

system size. While NSSG is also used

in the LTIP, the target for the APP is

absolute and drives growth against

our business targets within the year,

whereas the LTIP target provides a

relative, long-term measurement against

our closest peers. The Committee

therefore believes that having NSSG

targets of this nature in the APP and the

LTIP going forward will incentivise both

short-term and long-term performance

on an absolute and relative basis.

Measures for the 2026–28 LTIP cycle

will again be relative Total Shareholder

Return (20%); relative NSSG (25%); cash

flow (20%); adjusted earnings per share

(EPS) (25%); and carbon and people

metrics (10%).

**About this report**

I have continued to set out the

remuneration decisions and outcomes

fully and transparently and trust that

this report provides shareholders with

clarity on the alignment of performance

and reward for Executive Directors.

This Directors' Remuneration Report

will be put to an advisory vote at the

May 2026 AGM.

Thank you for your continued

engagement and support.

Angie Risley

Chair of the Remuneration Committee

16 February 2026

---

| | | |
|:---|:---|:---|
| 140 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Directors' Remuneration Report continued |
| Remuneration at a glance |

---

**Key**

![](ihg-20251231_g244.gif)

Within the Directors' Remuneration Report, we have used colour coding

---

| |
|:---|
| **Audited information** |
| Content contained within <br>a tinted panel highlighted <br>with an 'Audited' tab <br>indicates that all the <br>information within the <br>panel is audited.<br>|

---

to denote different elements of remuneration as follows:

---

| |
|:---|
| **Salary** |
| **Benefits** |
| **Pension benefit** |
| **Annual Performance Plan (APP)** <br>(up to 70% paid in cash with a minimum of 30% deferred into shares)<br>|
| **Long Term Incentive Plan (LTIP)** – before share price appreciation |
| **Share price appreciation** |

---

**Executive Director remuneration for 2025**<br>

**Elie Maalouf** Chief Executive Officer

Value (£000)

![190](ihg-20251231_g245.gif)

![](ihg-20251231_g246.gif)

**Michael Glover** Chief Financial Officer

Value (£000)

![244](ihg-20251231_g247.gif)

4,579

3,524

**Shareholder highlights**<br>

**TSR performance for IHG and peers over 3 years to 31 December 2025**

---

| |
|:---|
| **Total dividend proposed for 2025**<br>184.5¢<br>2024: 167.6¢<br>|
| **Shareholders return through share** <br>**buyback and ordinary dividends** <br>**in 2025**<br>>$1.1bn<br>|
| **Shareholders return through share** <br>**buyback and ordinary dividends** <br>**for three years to 2025**<br>$3.3bn<br>|

---

![1](ihg-20251231_g248.gif)

TSR performance for IHG and peers

represents cumulative returns indexed

from an average Q4 2022 base

![](ihg-20251231_g249.gif)

TSR peer

group

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IHG Upper quartile Median Lower quartile

![](ihg-20251231_g250.gif)

![](ihg-20251231_g251.gif)

![](ihg-20251231_g252.gif)

![](ihg-20251231_g253.gif)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 141 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**How we performed in 2025**<br>

**APP**

56.5%

2025 APP achievement (% of maximum)

![1427](ihg-20251231_g254.gif)

---

| | |
|:---|:---|
| 1 | Operating profit from reportable <br>segments: 70%<br>|
| 2 | Room signings: 15% |
| 3 | Room openings: 15% |

---

![](ihg-20251231_g255.gif)

–Overall achievement between

target and maximum.

–Very strong openings and signings

performance towards the maximum.

**Operating profit from reportable segments**<sup>a</sup> **($m)**

![815](ihg-20251231_g256.gif)

Actual 1,255<sup>b</sup> (39.8% of maximum)

![](ihg-20251231_g257.gif)

![](ihg-20251231_g257.gif)

![](ihg-20251231_g257.gif)

Threshold

1,202

Target

1,292

Maximum

1,382

**Room signings (k rooms)**

![844](ihg-20251231_g258.gif)

Actual 102.1 (96.0% of maximum)

![](ihg-20251231_g257.gif)

![](ihg-20251231_g257.gif)

![](ihg-20251231_g257.gif)

Threshold

84.1 Target

93.5 Maximum

102.8 **Room openings (k rooms)**

![873](ihg-20251231_g259.gif)

Actual 65.1 (94.5% of maximum)

![](ihg-20251231_g257.gif)

![](ihg-20251231_g257.gif)

![](ihg-20251231_g257.gif)

Threshold

53.8 Target

59.8 Maximum

65.7 a.Definitions for Non-GAAP revenue and operating profit measures can be found on

pages 107 to 112. Reconciliations of these measures to the most directly comparable line

items within the Group Financial Statements can be found on pages 251 to 256.

b.See page 149 for reconciliation to reported figures.

![](ihg-20251231_g246.gif)

**LTIP**

82.7%

2023-25 LTIP achievement (% of maximum)

![1415](ihg-20251231_g260.gif)

---

| | |
|:---|:---|
| 1 | Relative Total Shareholder Return: 20% |
| 2 | Net system size growth: 20% |
| 3 | Absolute cash flow: 20% |
| 4 | Planet: 10% |
| 5 | People: 10% (subsequently removed) |
| 6 | Adjusted earnings per share: 20% |

---

![](ihg-20251231_g255.gif)

–Overall achievement between

threshold and maximum.

–Exceptional cash flow, EPS and

relative TSR performance above

maximum targets set.

–Strong relative NSSG and planet

performance above target.

**Relative Total Shareholder Return (%)**

![902](ihg-20251231_g261.gif)

Actual 118.0% (100% of maximum)

![](ihg-20251231_g262.gif)

![](ihg-20251231_g262.gif)

![](ihg-20251231_g262.gif)

Threshold 53.9%

Maximum 79.9%

**Relative net system size growth (%)**

![931](ihg-20251231_g263.gif)

Actual 4.7% (75.2% of maximum)

![](ihg-20251231_g262.gif)

![](ihg-20251231_g262.gif)

Threshold 2.7%

Maximum 5.6%

**Absolute cash flow ($bn)**

![960](ihg-20251231_g261.gif)

Actual 3.42 (100% of maximum)

![](ihg-20251231_g262.gif)

![](ihg-20251231_g262.gif)

![](ihg-20251231_g262.gif)

Threshold 1.67

Maximum 2.57

**Adjusted earnings per share (%)**

![1574](ihg-20251231_g261.gif)

Actual 21% (100% of maximum)

![](ihg-20251231_g262.gif)

![](ihg-20251231_g262.gif)

![](ihg-20251231_g262.gif)

Threshold 5%

Maximum 12%

**Introduction of ECMs (%)**

![1666](ihg-20251231_g264.gif)

Actual 78.6% of maximum

![](ihg-20251231_g262.gif)

![](ihg-20251231_g262.gif)

Threshold

Maximum

**Adoption of five existing ECMs (of hotels)**

![1775](ihg-20251231_g265.gif)

Actual 93.8% (75.2% of maximum)

![](ihg-20251231_g262.gif)

![](ihg-20251231_g262.gif)

Threshold 80%

Maximum 100%

a.People: Measure removed: 0% of 10% earned.

**Executive Director shareholdings**<br>

![674](ihg-20251231_g266.gif)

A

B

2,758%

C

A

1,291%

B

C

---

| | |
|:---|:---|
| A | Shares held outright and unvested shares not subject to performance conditions on net basis as % salary |
| B | LTIP and RSU shares held on net basis as % of salary |
| C | Guideline shareholding as % of salary |

---

---

| | | |
|:---|:---|:---|
| 142 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Directors' Remuneration Report continued |
| 2025 Review of Directors' Remuneration Policy |

---

---

| | | |
|:---|:---|:---|
| **Development of revised remuneration Policy** | **Development of revised remuneration Policy** | **Development of revised remuneration Policy** |
| A wholesale review of the remuneration Policy for Executive Directors was carried out in the <br>period leading up to the 2025 AGM, with almost 70% of our shareholder register ultimately <br>voting in favour. This review was a lengthy process led by the Committee with the full <br>support of the Board. The table below summarises the key stages in the development <br>and implementation of the Policy, including the extensive and robust consultation with <br>shareholders and their representative proxy agencies both ahead of and following the AGM. | A wholesale review of the remuneration Policy for Executive Directors was carried out in the <br>period leading up to the 2025 AGM, with almost 70% of our shareholder register ultimately <br>voting in favour. This review was a lengthy process led by the Committee with the full <br>support of the Board. The table below summarises the key stages in the development <br>and implementation of the Policy, including the extensive and robust consultation with <br>shareholders and their representative proxy agencies both ahead of and following the AGM. | A wholesale review of the remuneration Policy for Executive Directors was carried out in the <br>period leading up to the 2025 AGM, with almost 70% of our shareholder register ultimately <br>voting in favour. This review was a lengthy process led by the Committee with the full <br>support of the Board. The table below summarises the key stages in the development <br>and implementation of the Policy, including the extensive and robust consultation with <br>shareholders and their representative proxy agencies both ahead of and following the AGM. |
| Timing | Activity undertaken | Outcomes |
| Mid 2024 – <br>October <br>2024<br>| **Formulation of proposals**<br>–Developed revised Policy proposals based <br>on principles, business and performance <br>context and review of global market for talent.<br>–Internal approval by the Committee including <br>consultation with the Board.<br>| –Articulation of a data-driven Policy that is market-<br>aligned and addressed the key risks identified.<br>|
| November – <br>December <br>2024<br>| **Initial consultation**<br>–IHG wrote to and discussed the proposed <br>Policy with over 50% of our shareholder register.<br>–Initial discussions held with major proxy agencies.<br>| –While many shareholders were supportive of the <br>proposals, we made several modifications in response <br>to a wide range of feedback received from investors <br>and proxy advisers, including amending the balance <br>between performance share and restricted share <br>elements of long-term incentive, strengthening <br>the restricted share underpin and increasing the <br>shareholding requirements.<br>|
| December <br>2024 – <br>February <br>2025<br>| **Further consultation**<br>–Consulted with major investors on revised <br>proposals, in aggregate reaching nearly <br>60% of IHG's equity.<br>| –Further amendments made to proposals to respond <br>to feedback, including reduction in the quantum <br>of restricted share awards. <br>–Formation and publication of final Policy.<br>|
| April <br>2025<br>| **Publication of proxy reports**<br>–IHG reviewed draft reports to ensure <br>accuracy of content and areas of challenge.<br>–Major proxy agencies released reports <br>setting out recommendations and areas <br>for shareholders to consider.<br>–Letter sent to subscribers of proxy reports <br>to add clarity on issues raised and further <br>explain rationale for change.<br>| –The proxy agencies provide a service in reaching <br>a larger number of our investor base than we are <br>able to.<br>–While a substantial portion of our register who <br>subscribe to the proxy reports ultimately followed <br>recommendations to vote against the remuneration <br>resolutions, those we engaged with directly <br>after the proxy recommendations understood <br>the rationale and the majority voted in favour.<br>|
| May 2025 | **AGM**<br>–Shareholders voted on Policy and issue <br>statement in relation to voting outcomes.<br>| –Policy supported by almost 70% of the register, <br>including all of our top 10 shareholders.<br>–Policy becomes effective after receiving <br>majority support.<br>|
| May – <br>August <br>2025<br>| **Post-AGM consultation**<br>–IHG contacted shareholders to invite further <br>feedback and discussion to understand reasons <br>for the 30% of shareholders who voted against <br>the Policy and 21% who voted against the 2024 <br>Directors' Remuneration Report.<br>–Further feedback received from some investors.<br>–Two-way discussions held with all major <br>representative proxy agencies.<br>| –Further confirmation of voting rationale received, <br>with no substantive new information arising.<br>–While reasons for the votes received against <br>the Policy varied by shareholder, the main areas <br>raised were in relation to elements of the global <br>peer group and the scale and/or structure of <br>remuneration proposed.<br>–The same reasons were given for the votes against <br>the Policy and 2024 Directors' Remuneration Report.<br>–Engagement with proxy bodies informed approach <br>to six-month update statement and continued high level <br>of transparency in ongoing remuneration reporting.<br>|
| August <br>2025<br>| **Review and completion**<br>–Publication of post-AGM six-month <br>update statement.<br>| –Transparent communication to stakeholders on <br>the actions taken post AGM, including implementation <br>of the Policy in 2025.<br>–Completion of the consultation process, paving <br>the way for ongoing open communication with <br>shareholders and their proxy advisory bodies.<br>|

---

![](ihg-20251231_g267.gif)

![](ihg-20251231_g268.gif)

![](ihg-20251231_g269.gif)

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---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 143 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| | |
|:---|:---|
| **Alignment with Investment Association (IA) priorities** | **Alignment with Investment Association (IA) priorities** |
| The table below describes how our approach to the Policy review aligns with the relevant priorities set out in the IA's letter <br>sent to remuneration committee chairs in November 2025: | The table below describes how our approach to the Policy review aligns with the relevant priorities set out in the IA's letter <br>sent to remuneration committee chairs in November 2025: |
| Priority | How we reflected in our Policy review |
| Company-<br>specific <br>rationale<br>| –We identified and evidenced specific IHG challenges, including key risks to our talent and succession <br>pipeline, competitiveness challenges vs the US market, and structural differences arising from UK PLC <br>requirements relative to the US.<br>–We set out the business context for the review, including an increasingly global footprint with significant <br>US focus and strong long-term performance.<br>|
| Benchmarking <br>and peer group<br>| –The peer group used reflects IHG's global talent flow to/from hotel and wider industry peer companies.<br>–Filters were applied to ensure the relevance of the group, including identifiable talent flows to/from IHG, <br>sector/strategic business relevance, consumer focus and Atlanta presence.<br>–Companies were filtered out where they were substantially larger than IHG, resulting in a group within <br>which IHG was positioned at the median by market capitalisation.<br>–While the benchmarking data was used to inform an initial proposal for consultation based on median <br>positioning, the final proposal was adjusted through engagement to reflect feedback received.<br>|
| Hybrid plans | –Our review against the global peer group highlighted that IHG was an outlier in operating a single <br>performance share plan, and that RSU plans were in global widespread use, including below <br>Executive Director level in IHG.<br>–We were cognisant that RSU plans and hybrid plans in particular were relatively rare in a UK FTSE <br>context, and therefore consulted early and fully with shareholders, in several rounds of consultation.<br>–The most significant change made to our initial proposals was a downwards adjustment to RSU <br>award levels with performance-based awards comprising the vast majority of the long-term <br>incentive opportunity, at 84% for the CEO.<br>|
| Bonus <br>deferral and <br>shareholding <br>requirements<br>| –In line with IA guidance, Executive Directors continue to be required to defer 30% of bonus earned <br>even where the shareholding requirements have been met, with deferred bonus being subject to <br>malus and clawback.<br>–A significant change for 2025 was an increase in shareholding requirement, for example from 500% to <br>1,000% of salary for the CEO, further aligning Executive Director interests with those of shareholders.<br>|

---

---

| | | | |
|:---|:---|:---|:---|
| **Summary of Policy implementation for 2026** | **Summary of Policy implementation for 2026** | **Summary of Policy implementation for 2026** | **Summary of Policy implementation for 2026** |
| Element | CEO | CFO | Operation for 2026 |
| Salary <br>(% increase for 2026)<br>| **£1,122,000** <br>**(2.0%)**<br>| **£677,600** <br>**(2.0%)**<br>| –Salary increases aligned with those <br>for wider corporate workforce in 2026.<br>|
| Annual Performance Plan (APP) <br>maximum <br>(% of salary)<br>| **300%** | **250%** | –Subject to financial and non-financial <br>performance conditions in 2026 (see below).<br>–At least 30% of bonus earned will be deferred <br>into shares for three years if the minimum <br>shareholding requirement has been met, <br>with at least 50% being deferred otherwise. |
| **–APP target** <br>(% of salary)<br>| **150%** | **125%** | –Subject to financial and non-financial <br>performance conditions in 2026 (see below).<br>–At least 30% of bonus earned will be deferred <br>into shares for three years if the minimum <br>shareholding requirement has been met, <br>with at least 50% being deferred otherwise. |
| LTIP maximum award <br>(% of salary)<br>| **800%** | **500%** | –Subject to financial and non-financial <br>performance conditions over a three-year <br>period (see following page).<br>–Two-year post-vesting holding period. |
| **–LTIP target award** <br>(% of salary)<br>| **400%** | **250%** | –Subject to financial and non-financial <br>performance conditions over a three-year <br>period (see following page).<br>–Two-year post-vesting holding period. |
| Restricted Stock Unit (RSU) award <br>(% of salary)<br>| **150%** | **100%** | –Three year vesting period and two year <br>post-vesting holding period.<br>–Subject to underpin.<br>|
| Pension cash allowance <br>(% of salary)<br>| **12%** | **12%** | –Aligned with other participants in the <br>UK pension plan.<br>|
| Minimum shareholding requirement <br>(% of salary)<br>| **1,000%** | **400%** | –To be met over five years from 2025 AGM <br>(or appointment if later) as agreed with the <br>Chair of the Board.<br>–The full minimum shareholding requirement <br>continues to remain in force for two years <br>following cessation as an Executive Director.<br>|

---

![RSU_white_graphic_rules2.gif](ihg-20251231_g273.gif)

---

| | | |
|:---|:---|:---|
| 144 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Directors' Remuneration Report continued |
| 2025 Review of Directors' Remuneration Policy continued |

---

---

| | |
|:---|:---|
| **Aligning variable elements of remuneration to strategy in 2026** | **Aligning variable elements of remuneration to strategy in 2026** |
|  | **What we do**<br>Provide True Hospitality for Good<br>**Why we do it**<br>To be the hotel company of choice for guests and owners<br>**How we make it happen** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Relentless focus** <br>**on growth** | **Brands guests** <br>**and owners love** | **Leading** <br>**commercial engine** | **Care for our people,** <br>**communities and planet** |

---

![REM_Growth_icon.gif](ihg-20251231_g274.gif)

![REM_Brands_icon.gif](ihg-20251231_g275.gif)

![REM_CommEngine_icon.gif](ihg-20251231_g276.gif)

![REM_Care_icon.gif](ihg-20251231_g277.gif)

![](ihg-20251231_g278.gif)

---

| | | | |
|:---|:---|:---|:---|
| Element | Measures and weightings | Link to strategy | Explanation |
| **Annual** <br>**Performance** <br>**Plan (APP)** | Operating profit from <br>reportable segments <br>(70%)<br>|  | –The strength and breadth of our portfolio, <br>tailored services and solutions, as well as our <br>technology and platforms drive consumer <br>preference, owner returns and rooms growth; <br>all contributing to our revenues and profit.<br>–Signings and NSSG are central to our strategy <br>of accelerating the growth of our brands <br>in high-value markets. NSSG has replaced <br>room openings for 2026 to align with our <br>focus on overall growth in system size.<br>–The underlying performance of the business <br>will be reviewed in considering the potential <br>application of discretion to formulaic <br>outcomes of the APP measures. |
| **Annual** <br>**Performance** <br>**Plan (APP)** | Room signings <br>(15%)<br>|  | –The strength and breadth of our portfolio, <br>tailored services and solutions, as well as our <br>technology and platforms drive consumer <br>preference, owner returns and rooms growth; <br>all contributing to our revenues and profit.<br>–Signings and NSSG are central to our strategy <br>of accelerating the growth of our brands <br>in high-value markets. NSSG has replaced <br>room openings for 2026 to align with our <br>focus on overall growth in system size.<br>–The underlying performance of the business <br>will be reviewed in considering the potential <br>application of discretion to formulaic <br>outcomes of the APP measures. |
| **Annual** <br>**Performance** <br>**Plan (APP)** | Absolute Net System <br>Size Growth (NSSG) <br>(15%)<br>|  | –The strength and breadth of our portfolio, <br>tailored services and solutions, as well as our <br>technology and platforms drive consumer <br>preference, owner returns and rooms growth; <br>all contributing to our revenues and profit.<br>–Signings and NSSG are central to our strategy <br>of accelerating the growth of our brands <br>in high-value markets. NSSG has replaced <br>room openings for 2026 to align with our <br>focus on overall growth in system size.<br>–The underlying performance of the business <br>will be reviewed in considering the potential <br>application of discretion to formulaic <br>outcomes of the APP measures. |
| **Long Term** <br>**Incentive Plan** <br>**(LTIP)**<br>| Relative Total <br>Shareholder Return <br>(20%)<br>|  | –Our strategy is intended to deliver unmatched <br>guest experiences and unrivalled owner returns <br>for our stakeholders, including competitive <br>total shareholder returns. <br>–Our strategy is to accelerate the growth <br>of our brands in high-value markets by <br>using our global scale and expertise so it <br>is important that this forms a key element <br>of our management team's LTIP. <br>–Enhancing our customer and owner offer <br>and accelerating the growth of our brands in <br>high-value markets drives sustained growth <br>in cash flows and profits over the long term, <br>which can be reinvested in our business <br>and returned to shareholders. |
|  | Relative NSSG <br>(25%)<br>|  | –Our strategy is intended to deliver unmatched <br>guest experiences and unrivalled owner returns <br>for our stakeholders, including competitive <br>total shareholder returns. <br>–Our strategy is to accelerate the growth <br>of our brands in high-value markets by <br>using our global scale and expertise so it <br>is important that this forms a key element <br>of our management team's LTIP. <br>–Enhancing our customer and owner offer <br>and accelerating the growth of our brands in <br>high-value markets drives sustained growth <br>in cash flows and profits over the long term, <br>which can be reinvested in our business <br>and returned to shareholders. |
|  | Absolute cash flow <br>(20%)<br>|  | –Our strategy is intended to deliver unmatched <br>guest experiences and unrivalled owner returns <br>for our stakeholders, including competitive <br>total shareholder returns. <br>–Our strategy is to accelerate the growth <br>of our brands in high-value markets by <br>using our global scale and expertise so it <br>is important that this forms a key element <br>of our management team's LTIP. <br>–Enhancing our customer and owner offer <br>and accelerating the growth of our brands in <br>high-value markets drives sustained growth <br>in cash flows and profits over the long term, <br>which can be reinvested in our business <br>and returned to shareholders. |
|  | Carbon and people <br>(10%)<br>|  | –Measures aligned to our people and <br>planet business priorities are included <br>in our LTIP targets.<br>|
|  | Adjusted earnings <br>per share (25%)<br>|  | –EPS provides a measure of the efficiency <br>of the capital structure, as well as promoting <br>further alignment with shareholder experience <br>and value.<br>|
| **Restricted Stock** <br>**Unit (RSU)**<br>| Underpin |  | –The underpin measures all aspects of delivery <br>of our strategy.<br>|

---

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![KPI_icon3.gif](ihg-20251231_g118.gif)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 145 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Remuneration at IHG – the wider context<br>

---

| |
|:---|
| **Developing high-performance culture and link to reward** |
| At the beginning of 2025 we launched 'High Performance Culture' for our corporate and <br>reservations colleagues globally. Designed to enable the organisation to deliver our strategy <br>through adopting a continuous improvement mindset, we have shifted to an always-on <br>approach to performance that provides clarity to colleagues and alignment to Regional and <br>Functional plans. Consequently, this strengthens our existing pay-for-performance approach. |

---

**Key changes include:**

–Removing performance ratings for

all colleagues and replacing with

one definition of high performance.

–Creating a stronger alignment

between performance and reward.

–Upweighting our focus on goals

and the work that matters the most.

–Embedding our Growth Behaviours

as the 'how' we achieve high

performance.

–Building the capability of all people

leaders and articulating clear

expectations for high performance.

–Talking about performance

continuously through Elevate

1-1 conversations.

–Introducing an 'IHG' approach

to feedback.

![Courageous_logo.jpg](ihg-20251231_g279.jpg)

**APP**

As part of the shift in culture, we launched a change to the APP arrangements for Bands 3-8, so that from 2025, the funding

for the APP is determined by business performance. A colleague's individual performance is then overlaid to the whole APP,

with people leaders being able to award anything from zero to double the target APP.

![Bonus_tints_graphic.jpg](ihg-20251231_g280.jpg)

**Individual performance**

This determines how much

individuals will receive.

Against our high-performance definition,

the actual APP award will be between zero and

double (0%–200%) of each target APP award.

**Company performance**

This determines the total APP pool available

to distribute across the Company.

Company performance is assessed

against three measures below.

**Total APP pool**

This is determined by

Company performance.

The total APP pool

represents the total funds

available to individuals.

![214](ihg-20251231_g281.gif)

![](ihg-20251231_g282.gif)

![](ihg-20251231_g283.gif)

![](ihg-20251231_g284.gif)

![](ihg-20251231_g285.gif)

![](ihg-20251231_g286.gif)

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| | |
|:---|:---|
| A | EBIT 70% |
| B | Signings 15% |
| C | Openings 15% |

---

**Share plans**

For those who are eligible for shares as part of their reward package, in the form of RSUs, performance now impacts how

many shares someone receives. People leaders are able to award anything from zero to double the target RSU award.

Share ownership continues to provide the opportunity to benefit from the Company's growth and success in the future,

and individual performance is a vital part of that success. The Colleague Share Plan remains as a way for our broader

colleague base to share in that success.

Long-Term Incentive Awards are granted to those at the most senior levels, with the level of vesting being based on

Company performance metrics aligned with those for Executive Directors.

---

| | | |
|:---|:---|:---|
| 146 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Directors' Remuneration Report continued |
| Remuneration at IHG – the wider context continued |

---

**How our reward practices are aligned across all levels of the organisation**

Our approach to fairness in reward is an important aspect of our overall reward philosophy and is designed to attract, retain,

motivate and engage talent at all levels of the business. It is supported by a robust governance approach that ensures our

reward and recognition practices are fair and consistent across our employee population, as well as an alignment between the

wider direct workforce and executive remuneration. We regularly review our approach externally, ensuring we are competitive

in the different markets in which we operate and meet the needs of employees by offering market-driven reward packages.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Element | Executive <br>Directors<br>| Senior <br>management<br>| All employees | Details |
| **Fixed** | **Fixed** | **Fixed** | **Fixed** | **Fixed** |
| **Salary** | 🟇 | 🟇 | 🟇 | –Managers put at the heart of the salary review process, allowing them to <br>use discretion.<br>–Managers reminded of importance of making fair reward decisions consistent <br>with our Code of Conduct to ensure employees are fairly rewarded according <br>to their contribution, skills and experience.<br>|
| **Benefits** | 🟇 | 🟇 | 🟇 | –Corporate colleagues allocated IHG One Rewards Gold Elite Status.<br>–In 2025 we focused on benefits which drive attraction and retention of talent. <br>We proudly launched our IHG One Pass exclusive colleague travel benefits <br>which strengthens our employee room rate offering, a key milestone for <br>colleagues and their families.<br>–Review of healthcare across the UK corporate population and renewal with <br>Bupa as new provider.<br>–All UK corporate colleagues are covered for life insurance, income protection <br>and critical illness.<br>–We offer US colleagues a streamlined selection of health and welfare plan <br>designs and providers. We provide both financial and protection benefits <br>to our colleagues through a life and accidental death and dismemberment <br>insurance coverage.<br>|
| **Pension** | 🟇 | 🟇 | 🟇 | –UK and US pension benefits competitive against the market.<br>–Contribution rate for UK corporate, and eligible UK hotel employees, is aligned <br>with 2:1 matching ratio up to 6% of salary from employees and 12% from IHG.<br>–Salary sacrifice available and life cover of 4x base salary for UK pension <br>plan participants.<br>|
| **Variable** | **Variable** | **Variable** | **Variable** | **Variable** |
| **APP** | 🟇 | 🟇 | 🟇 | –Corporate performance metrics are aligned across corporate colleagues, <br>Executive Directors and Executive Committee (EC).<br>–Bonus deferral for three years in operation for senior management.<br>–Weightings of metrics for all corporate colleagues below EC level are aligned <br>and higher awards can be earned through an employee's individual <br>performance and contribution to the Company.<br>–Additional funding was made available on top of the budgeted amount <br>of our 2025 Annual Performance Plan to increase bonus amounts for our <br>strongest performers.<br>|
| **LTIP** | 🟇 | 🟇 |  | –Certain senior/mid-management and specialist roles are eligible to participate <br>in the Long Term Incentive Plan, under which performance-based awards <br>vest after three years.<br>|
| **RSU** | 🟇 | 🟇 |  | –Executive Directors, certain senior/mid-management and specialist roles <br>are eligible to receive an RSU award, which vests after three years.<br>–675 colleagues were in receipt of an RSU award for the 2025–27 cycle.<br>–At certain job levels, we run an annual nomination process whereby 30% <br>of the population can be nominated to receive an RSU award based on <br>their performance.<br>–RSU awards are not subject to performance conditions, with the exception <br>of an underpin for Executive Directors, but still align employee interests <br>with those of shareholders.<br>|
| **Long** <br>**Service** <br>**Awards**<br>| 🟇 | 🟇 | 🟇 | –All of the corporate workforce, including Executive Directors, are eligible <br>to receive a Long Term Service Award, of varying value, once the employee <br>reaches certain service milestones.<br>–In 2025, 777 corporate colleagues and 849 hotel colleagues globally received <br>cash long-term service awards.<br>–Long service results in enhanced travel benefits under the IHG One Pass <br>programme from 2026 onwards.<br>|
| **Colleague** <br>**Share Plan**<br>|  |  | 🟇 | –Available to around 99% of our corporate colleagues below the senior/mid-<br>management level.<br>–IHG matches the shares purchased by colleagues on a one-for-one basis <br>up to a maximum match of $1,000 per annum.<br>–The registration for the 2026 plan was open to eligible colleagues in Q4 <br>2025 and the take-up rate is 48.6%.<br>–The 2024 plan's matching shares vested in January 2026 with more than <br>21,700 shares vesting between 2,636 employees, worth almost $3m.<br>–Colleagues receive dividends and voting rights on purchased shares.<br>|
| **Bravo** <br>**Recognition** <br>**plan**<br>|  |  | 🟇 | –Colleagues below senior/mid-management level can be nominated <br>for a cash award through our Bravo recognition scheme for going above <br>and beyond in their roles while displaying exceptional IHG behaviours.<br>–13,203 one-off cash awards were made to corporate colleagues, and <br>19,921 cash awards were made to hotel colleagues globally during 2025.<br>|

---

![RSU_white_graphic_rules.gif](ihg-20251231_g287.gif)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 147 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Employee engagement on pay**

We have several forums for employees to express their opinions on pay. These include employee resource groups (ERGs) and

direct engagement with Non-Executive Directors. In 2025, the Chair of the Committee met colleagues to understand their views

on Executive Director and their own pay. Our employee engagement survey, Colleague HeartBeat, allows employees to give

their views on working at IHG. The 2025 employee engagement scores for participating owned & leased hotel and reservations

employees and general managers on the questions relating to reward and recognition exceeded our survey provider's top

quartile benchmark.

**Paid fairly**

![2968](ihg-20251231_g288.gif)

![](ihg-20251231_g289.gif)

Top quartile scores 65%<br>

**Appropriate recognition**

![2996](ihg-20251231_g290.gif)

![](ihg-20251231_g289.gif)

Top quartile scores 69%<br>

**Benefit plan meets needs**

![3025](ihg-20251231_g291.gif)

![](ihg-20251231_g289.gif)

Top quartile scores 73%<br>

**Performance impacts pay**

![3053](ihg-20251231_g292.gif)

![](ihg-20251231_g289.gif)

Top quartile scores 67%<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ⬛ | Hotels | ⬛ | Reservations | ⬛ | General Managers |

---

**Wellbeing**

We continue to promote myWellbeing –

a framework to support employees

across their health, lifestyle and

workplace. The myWellbeing suite of

resources, which includes an employee

Wellbeing Handbook and guidelines for

people managers, has been designed

to provide a holistic wellbeing offering.

Employees also have access to a global

Employee Assistance Programme, which

offers counselling, practical guidance

on topics such as legal, financial and

work matters, and additional health

and wellbeing resources.

In 2025, all corporate colleagues were

given three recharge days to focus on

their wellbeing in a way that suits them

best, on top of any contracted annual

leave they are eligible to receive.

**Leased hotel employees**

As previously reported, following the

acquisition of a number of UK hotels,

employing entities for the estate's hotels

were transferred to IHG. Employment

terms, including remuneration and

benefits, largely remained in place

on their pre-acquisition basis.

The Real Living Wage (RLW) has been

voluntarily adopted in IHG's UK leased

hotel estate between 2022 and 2025.

Payroll budgets in these hotels are

approved by IHG UK leadership and

the hotel owners. The Living Wage

Foundation has increased the RLW level

by 6–7% with effect from May 2026. In

the context of current cost challenges

facing the hospitality industry, including

prevailing below-RLW market rates of

pay in the sector, increasing direct costs

such as employer National Insurance

and day-one sickness entitlement, and

the wider impact of pay compression

issues resulting from paying at least RLW

to all colleagues, it has been determined

that the hotels will not be in a position

to apply the RLW as a minimum level

with effect from May 2026.

However, it is planned to increase pay

levels by an average of 3.9% for relevant

hotel colleagues. All hotel colleagues will

continue to be paid above the National

Living Wage (NLW), with minimum pay

levels approximately 12% above NLW in

London and 3–4% above NLW outside

London. This includes employees aged

under 21 years old, where the National

Minimum Wage (NMW) is lower

than NLW.

This increase for hotel colleagues

compares to an average increase

of 2% for corporate employees,

including the Executive Directors.

In response to wider cost-of-living

pressures, additional measures were

implemented during 2023 and 2024,

aside from applying the RLW as a

minimum, including:

–one-off payments to frontline

colleagues

–salary increases ranging from

5% to 8% from April 2023

–enhanced maternity and paternity

provisions

–access to financial wellbeing

support and education, including

the launch of 'Stream', an Earned

Wage Access benefit, as well as

direct-from-payroll saving.

Taken together, these measures

reflect a deliberate strategy to support

colleagues through a combination of

pay, benefits, development opportunities

and wellbeing support, rather than

reliance on a single pay benchmark.

As market conditions have evolved,

this broader reward framework

provides greater flexibility to maintain

competitiveness and fairness while

managing cost sustainability.

The approach to hotel colleague pay

will be kept under review for future

years in the context of changes to

the RLW.

---

| | | |
|:---|:---|:---|
| 148 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Directors' Remuneration Report continued |
| Annual Report on Remuneration |

---

The Annual Report on Remuneration explains how the Directors' Remuneration Policy

was implemented in 2025, the remuneration earned by the Executive Directors and

how the Directors' Remuneration Policy will be implemented in 2026.

**Audited**

![](ihg-20251231_g293.gif)

**Single total figure of remuneration – Executive Directors**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Fixed pay | Fixed pay | Fixed pay | Fixed pay | Variable | Variable | Variable | Other<br>£000 | Total<sup>b</sup><br>£000 |
|  |  |  |  |  |  |  |  |  | Other<br>£000 | Total<sup>b</sup><br>£000 |
|  |  |  |  |  |  |  |  |  | Other<br>£000 | Total<sup>b</sup><br>£000 |
| Executive Director | Year | Salary<br>£000<br>| Benefits<br>£000<br>| Pension <br>benefit<br>£000<br>| Subtotal<br>£000<br>| APP<br>£000<br>| LTIP<br>£000<sup>a</sup><br>| Subtotal<br>£000<br>| Other<br>£000 | Total<sup>b</sup><br>£000 |
| Elie Maalouf | 2025 | 1082 | 403 | 130 | 1615 | 1863 | 6839 | 8702 | 0 | 10317 |
|  | 2024 | 1010 | 427 | 121 | 1557 | 1298 | 5096 | 6394 | 0 | 7951 |
| Michael Glover | 2025 | 659 | 91 | 79 | 830 | 938 | 2711 | 3649 | 100 | 4579 |
|  | 2024 | 639 | 86 | 77 | 801 | 813 | 1761 | 2573 | 150 | 3524 |

---

a.LTIP figures for 2024 relate to the 2022–24 LTIP cycle and have been restated using the actual share price of £100.72 on the date of vesting.

Figures for 2025 relate to the value of shares for the 2023–25 cycle using the Q4 2025 average closing share price of £96.97.

b.Sum of individual items may differ from totals due to values being shown to nearest £1,000.

**Notes to the single** 

**total figure table**

**Fixed pay**

**Salary:** salary paid for the year.

Salary increases of 6.8% for

Elie Maalouf (from £1,029,600 to

£1,100,000) and 3% for Michael

Glover (from £644,800 to £664,350)

were applied with effect from

1 April 2025. The increase for Michael

Glover was in line with the increase

for UK and US corporate workforce,

and the increase for Elie Maalouf

was an adjustment approved as

part of the 2025 Directors'

Remuneration Policy.

**Benefits:** for Executive Directors,

this includes, but is not limited to,

taxable benefits such as company

car allowance and healthcare.

Elie Maalouf receives an RPI-linked

monthly net housing allowance

of £11,800 as at September

2025 (increased by RPI of 4.8%;

gross value for reporting purposes

of £21,400 per month) towards

UK housing costs to facilitate him

to carry out his UK-based role while

maintaining his US home and IHG's

significant US business, government

and industry interests.

Other benefits provided include

travel costs and allowances (£53,000

for Elie Maalouf; £17,000 for Michael

Glover), tax return assistance (£41,000

for Elie Maalouf; £47,000 for Michael

Glover) and healthcare provision

(£47,000 for Elie Maalouf; £19,000 for

Michael Glover). It has been agreed that

Elie Maalouf would settle any employee

tax due in respect of travel within the

UK with effect from the beginning of

the 2024-25 tax year.

Life assurance at four times base salary,

critical illness and income protection

cover were provided for all Executive

Directors, which is aligned to all

other UK corporate colleagues who

participate in the UK pension plan.

**Pension benefit:** for current

Executive Directors, in line with the

Policy, represents cash allowances

of 12% of salary paid in lieu of pension

contributions. This is in line with the

maximum level available to all other

participants in the UK pension plan.

**Other**

Michael Glover received a gross

payment of £100,000 in March 2025,

being the final instalment of time-limited

one-off payments to cover relocation

and associated costs of his appointment

as CFO.

**Variable pay**

APP (maximum 70% cash and

minimum 30% deferred shares

subject to meeting minimum

shareholding requirement).

Operation

Disclosed award levels are determined

based on salary as at 31 December

2025. The target award was 150%

of salary for Elie Maalouf and 125%

of salary for Michael Glover, with

the maximum being double the

target award.

Any payment made under the

APP is subject to minimum levels

of performance under the operating

profit from reportable segments

metric, with the room signings and

room opening measures subject

to a financial gate:

–if operating profit performance

is below 85% of target, there

would be no payout under these

measures; and

–if operating profit performance

is between 85% of target and

threshold, payout for these

measures would be reduced

by 50%.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 149 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Audited**

![](ihg-20251231_g293.gif)

APP outcome for 2025

The performance measures and outcomes of the 2025 APP were as follows. All figures are expressed as a proportion of target.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Performance measure | Weighting | Targets (straight-line payout between) | Targets (straight-line payout between) | Targets (straight-line payout between) | Performance <br>achieved | Achievement <br>as % of target |
| Performance measure | Weighting | Threshold<br>(50% payout)<br>| Target<br>(100% payout)<br>| Maximum <br>(200% payout)<br>| Performance <br>achieved | Achievement <br>as % of target |
| Operating profit from reportable segments<sup>a</sup> | 70% | $1,202m | $1,292m | $1,382m | $1,255m | 79.7% |
| Room signings (k rooms) | 15% | 84.1 | 93.5 | 102.8 | 102.1 | 191.9% |
| Room openings (k rooms) | 15% | 53.8 | 59.8 | 65.7 | 65.1 | 188.9% |
| Total weighted achievement (% of target) |  |  |  |  |  | 112.9% |
| Award earned – Elie Maalouf (% of salary) |  |  |  |  |  | 169.3% |
| Award earned – Michael Glover (% of salary) |  |  |  |  |  | 141.1% |

---

a.Definitions for Non-GAAP revenue and operating profit measures can be found on pages 107 to 112. Reconciliations of these measures to the most

directly comparable line items within the Group Financial Statements can be found on pages 250 to 256..

The operating profit outcome under the APP was adjusted to exclude the integration costs (around $3m) of the Ruby

business as an exceptional cost that was not envisaged at the time of setting the targets. The Committee was satisfied that

this adjustment was appropriate to encourage management to undertake value-accretive deals. Without this adjustment

the total APP outcome would have been approximately 1% lower as a proportion of target. Operating profit performance was

above threshold, and therefore the financial gate was met for the room signings and room opening measures. The Committee

also reviewed the overall performance of the Executive Directors and of the business, including relative to peers, and was

satisfied that no further adjustments needed to be applied to the formulaic outcomes of the APP measures.

Elie Maalouf and Michael Glover have both met their shareholding requirement, and therefore 30% of APP earned for 2025

will be deferred into shares for three years. The only condition attached to deferred shares is continued service.

The resulting amounts earned were as follows:

---

| | | | |
|:---|:---|:---|:---|
| Executive Director | Total amount earned<br>(£000)<br>| Of which paid in cash<br>(£000)<br>| Of which deferred in shares<br>(£000)<br>|
| Elie Maalouf | 1863 | 1304 | 559 |
| Michael Glover | 938 | 657 | 281 |

---

In determining operating profit from reportable segments for APP purposes, budgeted exchange rates for the year are used

to ensure like-for-like comparison with the APP target set at the start of the year.

---

| | |
|:---|:---|
| Operating profit from reportable segments (actual exchange rates) (see page 86) | $1,265m |
| Operating profit from reportable segments (2025 budget exchange rates; with Ruby integration costs adjustment) | $1,255m |

---

🟂 LTIP 2023–25

LTIP outcome for 2023–25 cycle

The following table shows the 2023–25 LTIP performance measures and weightings, the threshold and maximum targets

and actual achievement, based on the formulaic outcomes against the three-year targets set in 2023.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Performance targets | Performance targets |  |  |  |
| Performance measure and weighting | Threshold<br>(20% vesting)<br>| Maximum<br>(100% vesting)<br>| Performance<br>result<br>| Achievement<br>(% of maximum<br>for measure)<br>| Weighted <br>achievement<br>(% of maximum<br>award)<br>|
| Total shareholder return (20%):<br>Three-year growth relative to competitors<sup>a</sup><br>| 53.9%<br>(Median)<br>| 79.9%<br>(Upper quartile)<br>| 118.0% (Above <br>upper quartile)<br>| 100.0% | 20.0% |
| Relative net system size growth 20%):<br>Three-year growth relative to competitors<sup>b</sup><br>| 2.7% growth | 5.6% growth | 4.7% growth | 75.2% | 15.0% |
| Absolute cash flow (20%): | 1.667bn USD | 2.565bn USD | 3.42bn USD | 100.0% | 20.0% |
| Adjusted Earnings Per Share (20%):<br>Three-year compound annual growth<br>| 5% | 12% | 21% | 100.0% | 20.0% |
| Planet (10% split equally):<br>Introduction of energy conservation <br>measures (ECMs) for new-build and <br>existing properties<br>Adoption of five existing ECMs<br>| New: 4.5%<br>Existing: 2.8%<br>80% of hotels<br>| New: 10.0%<br>Existing 6.3%<br>100% of hotels<br>| New: 10.2%<br>Existing: 4.4%<br>93.8% of hotels<br>| 78.6%<br>75.2%<br>| 3.9%<br>3.8%<br>|
| Total % of maximum opportunity vesting (out of a maximum 90% – see following page) | Total % of maximum opportunity vesting (out of a maximum 90% – see following page) | Total % of maximum opportunity vesting (out of a maximum 90% – see following page) | Total % of maximum opportunity vesting (out of a maximum 90% – see following page) |  | 82.7% |

---

a.Comparators are Accor S.A., Choice Hotels International Inc., Hilton Worldwide Holdings Inc., Hyatt Hotels Corporation, Marriott International Inc.,

Melia Hotels International S.A., Minor International PCL and Wyndham Hotels & Resorts Inc. Following the delisting of NH Hotel Group, the Committee

determined that the parent company Minor International PCL should replace NH Hotel Group from the beginning of the performance period.

b.Comparators are Accor S.A., Choice Hotels International Inc., Hilton Worldwide Holdings Inc., Jin Jiang International Holdings Company Limited,

Marriott International Inc. and Wyndham Hotels & Resorts Inc.

---

| | | |
|:---|:---|:---|
| 150 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Directors' Remuneration Report continued |
| Annual Report on Remuneration continued |

---

**Audited**

![](ihg-20251231_g293.gif)

Removal of representation targets from the 2023–25 LTIP

In alignment with the evolution of our Journey to Tomorrow plan and people principles, during 2025 the Committee

applied discretion to make the following change to the 2023–25 LTIP:

The portion of the 2023–25 LTIP award subject to gender and ethnicity representation targets (10% weighting) was removed.

No replacement was made for the portion removed, and this element of the LTIP will therefore not vest. The resulting

maximum vesting level was 90% of the original award.

Adjustments to absolute cash flow target

Over the performance period of the 2023–25 LTIP award, there have been events that have impacted IHG's cash flow that

were unquantified or unforeseen when the original targets were set, specifically the acquisition of the Ruby business.

The table below shows the reconciliation between reported cash flow and the outcome for the 2023–25 LTIP.

---

| | |
|:---|:---|
|  | Cash flow |
| Reconciliation | $bn |
| Reported cash flow from operations | 3.73 |
| Net cash from investing activities | (0.43) |
| Reported outcome per definition | 3.30 |
| Adjustment to remove impact of acquiring Ruby business | 0.12 |
| Adjusted outcome | 3.42 |

---

The adjustment to remove the impact of the acquisition of the Ruby business had no impact on the vesting outcome.

No other discretion was applied in determining the vesting level of the 2023–25 LTIP award.

LTIP 2023–25 vesting

The award granted under the 2023–25 cycle will vest on 18 February 2026 based on achievement against targets measured

over three years to 31 December 2025. The individual outcomes for this cycle are shown below.

The daily average closing share price over the final quarter of 2025 was 9,697p. This share price was used to calculate the

total value of award and the value of award attributable to share price appreciation. Restated figures using the actual share

price on the vesting date will be disclosed in the 2026 Directors' Remuneration Report.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Executive Director | Number of <br>shares granted<br>| % of maximum <br>award vested<br>| Outcome (number <br>of shares vesting)<br>| Total value of award <br>£000<br>| Value of award <br>attributable to share price <br>appreciation £000<br>|
| Elie Maalouf<sup>a</sup> | 85282 | 82.7% | 70527 | 6839 | 2931 |
| Michael Glover | 33812 | 82.7% | 27962 | 2711 | 1173 |

---

a.Includes 65,512 shares granted on 10 May 2023 with a grant price of 5,501p and a top-up of 19,770 shares granted on 8 August 2023 with

a grant price of 5,674p. Shares vesting are subject to a two-year holding period.

Adjustment to people measures attached to 2024–26 LTIP award

Adjustments to a portion of the 2024–26 LTIP award subject to two people measures were made, in alignment with

the evolution of our Journey to Tomorrow plan and people principles:

–The Inclusion Index measure (5% weighting) was broadened from being based on the gap between ethnically

diverse colleagues in the US and UK and the rest of the US/UK population, to instead being based on the gap

between US and UK junior colleagues and the total corporate population, with an increase in the level of stretch

for the threshold target from a gap of 7% to 5% and no change to the maximum target of no gap.

–The talent interventions measure (5% weighting) was amended to relate only to the Journey to General Manager and

Career Insights programmes, removing reference to RISE, to align with our current people principles. This amendment

ensures that the programmes remaining in the scope of the LTIP measure are aligned with our people principles,

and structured talent programmes for career progression. No adjustment was made to the target range.

For the revised Inclusion Index measure targets, the Committee was satisfied that there was no change to the level

of stretch in the targets originally set at the time of grant.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 151 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Audited**

![](ihg-20251231_g293.gif)

**Scheme interests awarded during 2025**

**Annual Performance Plan (APP) – 2024**

30% of the bonus earned in respect of the 2024 APP was deferred into shares with dividend rights, with no further conditions

save continued service. An average of the closing mid-market share price for the three days following the publication of 2024

results was used to determine the number of shares to be awarded. Details of the resulting shares granted were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Executive Director | Type of award | Award date | Number of<br>shares granted<br>| Market price<br>per share<br>at grant<br>£<br>| Face value<br>of award<br>at grant<br> £000<br>| Vesting date |
| Elie Maalouf | Conditional <br>shares<br>| 6 March 2025 | 3903 | 99.73 | 389 | 3 March 2028 |
| Michael Glover | Conditional <br>shares<br>| 6 March 2025 | 2444 | 99.73 | 244 | 3 March 2028 |

---

**Long Term Incentive Plan (LTIP) – 2025–27 cycle**

During 2025, LTIP awards were granted over shares with a maximum value of 800% of salary for the CEO and 500% of

salary for the CFO, using an average of the closing mid-market share price for the five days prior to grant. These are in the

form of conditional awards over Company shares and do not carry the right to dividends or dividend equivalents during

the vesting period. The vesting date for the award is the day after the announcement of our financial year 2027 Preliminary

Results in February 2028. These awards will vest to the extent that performance targets are met and will then be held in a

nominee account for a further two years in accordance with the post-vest holding requirement, becoming unrestricted

in February 2030.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Executive Director | Type of award | Award date | Performance period | Basis<br>of award<br>| Maximum<br>shares<br>awarded<br>| Market price<br>per share<br>at grant<br>£<br>| Face value<br>of award<br>at grant<br> £000<br>|
| Elie Maalouf | Conditional <br>shares<br>| 14 May 2025 | 1 January 2025 to <br>31 December 2027<br>| 800% <br>of salary<br>| 99581 | 88.37 | 8800 |
| Michael Glover | Conditional <br>shares<br>| 14 May 2025 | 1 January 2025 to <br>31 December 2027<br>| 500% <br>of salary<br>| 37589 | 88.37 | 3322 |

---

The performance measures for the 2025–27 LTIP cycle are as outlined below. NSSG is a relative measure and is measured

to 30 September 2027, rather than 31 December 2027, due to the timing at which competitor data is published.

---

| | | |
|:---|:---|:---|
| Measure and weighting | Threshold target <br>(20% vesting)<br>| Maximum target <br>(100% vesting)<br>|
| Relative TSR (20%)<sup>a</sup> | Median | Upper quartile |
| Relative NSSG (25%)<sup>b</sup> | NSSG of 4th <br>ranked competitor<br>| NSSG of 1st <br>ranked competitor<br>|
| Absolute cash flow (20%) | 2.595bn USD | 3.993bn USD |
| Adjusted EPS (25%) | 6% absolute CAGR | 14% absolute CAGR |
| Carbon and people (10%) – split between two equally weighted measures |  |  |
| Adoption of a set of Energy Conservation Measures (ECMs) across <br>the owned, leased and managed (CMH) hotels – weighted average adoption<br>| Increase of <br>9% points<br>| Increase of <br>25% points<br>|
| Talent interventions<sup>c</sup> | 30% of talent <br>promoted<br>| 50% of talent <br>promoted<br>|

---

Straight-line vesting occurs between threshold and maximum target.

a.Comparator companies for TSR are Accor S.A., Choice Hotels International Inc., Dalata Hotel Group PLC, H World Group Limited,

Hilton Worldwide Holdings Inc., Hyatt Hotels Corporation, Indian Hotels Company Limited, Jin Jiang International Holdings Company Limited,

Marriott International Inc., Melia Hotels International S.A., Minor International PCL, Scandic Hotels Group AB, Shangri-La Hotel Public Company Limited,

Whitbread PLC and Wyndham Hotels & Resorts Inc.

b.Comparator companies for NSSG are Marriott International Inc., Hilton Worldwide Holdings Inc., Accor S.A., Jin Jiang International Holdings

Company Limited, Wyndham Hotels & Resorts Inc. and Choice Hotels International Inc.

c.Threshold vesting will occur if 30% of talent who took part in the programmes between 2023 and 2025 have been promoted by 31 December 2027

and maximum vesting will occur if 50% of talent who took part in the programmes have been promoted by 31 December 2027.

---

| | | |
|:---|:---|:---|
| 152 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Directors' Remuneration Report continued |
| Annual Report on Remuneration continued |

---

**Audited**

![](ihg-20251231_g293.gif)

**Restricted Stock Units (RSU) – 2025–27 cycle**

During 2025, RSU awards were granted over shares with a maximum value of 150% of salary for the CEO and 100% of salary

for the CFO using an average of the closing mid-market share price for the five days prior to grant.

The awards are in the form of conditional awards over Company shares and do not carry the right to dividends or dividend

equivalents during the vesting period. The vesting date for the awards is the day after the announcement of our financial

year 2027 Preliminary Results in February 2028.

Vesting of restricted shares will be contingent on the satisfaction of a discretionary underpin which will be assessed by

the Committee prior to vesting. The Committee will consider the extent to which the Executive Directors have effectively

delivered IHG's strategy across the vesting period, as well as any factors that have resulted in serious reputational damage

or significant financial loss to the Company. In making its assessment, the Committee will take into account the experience

of stakeholders, including our shareholders, owners and guests.

Vested awards will then be held in a nominee account for a further two years, becoming unrestricted in February 2030

following the two-year post-vest holding period.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Executive Director | Type of award | Award date | Performance period | Basis of award | Maximum <br>shares <br>awarded<br>| Share price used <br>to determine <br>award size £<br>| Face value <br>of award at <br>grant £000<br>|
| Elie Maalouf | Conditional <br>shares<br>| 14 May <br>2025<br>| Not applicable. <br>Underpin measured <br>to February 2028<br>| 150% of salary | 18671 | 88.37 | 1650 |
| Michael Glover | Conditional <br>shares<br>| 14 May <br>2025<br>| Not applicable. <br>Underpin measured <br>to February 2028<br>| 100% of salary | 7517 | 88.37 | 664 |

---

**Relative importance of spend on pay**

The chart below sets out the actual expenditure of the Group on remuneration and distributions to shareholders in 2024 and 2025.

Operating profit from reportable segments<sup>a</sup> is also included as this is a significant constituent of the APP.

**Expenditure of the Group on remuneration and distributions to shareholders in 2024 and 2025**

$m

**+12.5%**

![13514](ihg-20251231_g294.gif)

Operating profit from

reportable segments

**+7.6%**

![13568](ihg-20251231_g295.gif)

Cost of shareholder returns by

way of dividend and buybacks

**+0.7%**

![13637](ihg-20251231_g296.gif)

Staff costs

a.Definitions for Non-GAAP revenue and operating profit measures can be found on pages 107 to 112. Reconciliations of these measures

to the most directly comparable line items within the Group Financial Statements can be found on pages 250 to 256.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 153 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Audited**

![](ihg-20251231_g293.gif)

**Executive Directors' shareholdings and share interests**

🟂 Executive Director shareholding requirement

The shareholding requirement under the Directors' Remuneration Policy in force at the end of 2025 is 1,000% of salary

for the Chief Executive Officer and 400% for other Executive Directors. The number of shares held outright includes

all Directors' beneficial interests and those held by their spouses and other connected persons. It also includes the net

value of unvested shares that are not subject to any further performance conditions or underpins.

The minimum shareholding requirement applies for two years post-cessation of employment or cessation as a director.

As part of this requirement, shares have been granted and all unvested awards are held in a nominee account,

with Executive Directors being required to electronically sign an agreement to the terms of the grant, including the

post-employment shareholding requirement.

![14847](ihg-20251231_g266.gif)

A

B

2,758%

C

A

1,291%

B

C

---

| | |
|:---|:---|
| A | Shares held outright and unvested shares not subject to performance conditions on net basis as % salary |
| B | LTIP and RSU shares held on net basis as % of salary |
| C | Guideline shareholding as % of salary |

---

The respective shareholding requirements have been met by Elie Maalouf and Michael Glover as at 31 December 2025.

Shareholdings as a percentage of salary are calculated using the 31 December 2025 closing share price of 1,046p.

A combined tax and social security rate of 47% is used for both Michael Glover and Elie Maalouf.

**Current Directors' share interests**

The APP deferred share awards are subject to continued service only and are not subject to additional performance

conditions. Details of the performance conditions to which the unvested LTIP awards are subject can be found on

pages 149 and 151 of this report and page 147 of the 2024 Directors' Remuneration Report.

There have been no changes in the shareholding interests of the Executive Directors since the end of the financial year

up to the publication of this report.

**Shares and awards held by Executive Directors at 31 December 2025**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Number of shares held <br>outright, including <br>those subject to post-<br>vest holding | Number of shares held <br>outright, including <br>those subject to post-<br>vest holding | APP deferred share <br>awards | APP deferred share <br>awards | LTIP share awards <br>(unvested) | LTIP share awards <br>(unvested) | RSU share awards <br>(unvested) | RSU share awards <br>(unvested) | Total number of shares <br>and awards held | Total number of shares <br>and awards held |
| Executive Director | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
| Elie Maalouf | 143472 | 109462 | 24533 | 32921 | 248000 | 208149 | 18671 | 0 | 434676 | 350532 |
| Michael Glover | 25505 | 15675 | 8825 | 8064 | 96074 | 75023 | 7517 | 3474 | 137921 | 102236 |

---

---

| | | |
|:---|:---|:---|
| 154 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Directors' Remuneration Report continued |
| Annual Report on Remuneration continued |

---

**Relative performance graph** 

The graph below shows the Company's TSR performance from 31 December 2015 to 31 December 2025, compared with the

TSR performance achieved by the FTSE 100 over the same period. The Company is a constituent of the FTSE 100 and therefore

this index is considered relevant for comparison purposes.

![16076](ihg-20251231_g297.gif)

**History of Chief Executive Officer's remuneration**

The table below shows the CEO's total remuneration and incentive outcomes for the 10 years to 31 December 2025.

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | CEO | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| Single figure of <br>remuneration <br>(£000) | Elie Maalouf | – | – | – | – | – | – | – | 4242 | 7951 | 10317 |
| Single figure of <br>remuneration <br>(£000) | Keith Barr | – | 2161 | 3143 | 3376 | 1484 | 3199 | 4273 | 4173 | – | – |
| Single figure of <br>remuneration <br>(£000) | Richard Solomons | 3662 | 2207 | – | – | – | – | – | – | – | – |
| Annual incentive <br>earned <br>(% of maximum) | Elie Maalouf | – | – | – | – | – | – | – | 81.8 | 63.0 | 56.5 |
| Annual incentive <br>earned <br>(% of maximum) | Keith Barr | – | 69.7 | 84.1 | 58.7 | 0 | 100 | 95.7 | 81.8 | – | – |
| Annual incentive <br>earned <br>(% of maximum) | Richard Solomons | 63.9 | 66.8 | – | – | – | – | – | – | – | – |
| LTIP earned <br>(% of maximum) | Elie Maalouf | – | – | – | – | – | – | – | 57.8 | 84.7 | 82.7 |
| LTIP earned <br>(% of maximum) | Keith Barr | – | 46.1 | 45.4 | 78.9 | 30.6 | 20 | 52.1 | 57.8 | – | – |
| LTIP earned <br>(% of maximum) | Richard Solomons | 49.4 | 46.1 | – | – | – | – | – | – | – | – |

---

**Audited**

![](ihg-20251231_g293.gif)

**Payments to past Directors**

Sir Ian Prosser, who retired as Director on 31 December 2003, had an ongoing healthcare benefit of £2,797.62 during the year.

**Payments for loss of office**

No payments for loss of office were made to Executive Directors during the year to 31 December 2025.

**Pension entitlements**

No Executive Director is entitled to any defined benefit pension or related benefit from IHG.

**Malus and clawback**

Malus and clawback provisions apply to incentive plans as set out in the Directors' Remuneration Policy, which can be found on

page 174 of the Annual Report and Form 20-F 2024. The non-exhaustive circumstances in which malus and clawback provisions

could be used include corporate failure, material misstatement, error or misrepresentation in the financial statements, an award

being made in error, action that amounts to fraud or misconduct, summary dismissal and serious reputational damage. Malus

provisions relate to unvested awards while clawback applies for the three years post-payment or vesting (including the cash

element of the APP), which is considered to be a reasonable length of time to discover and assess circumstances that would

warrant use of these provisions. The malus and clawback provisions were not enacted during 2025.

The Company has in place an incentive clawback policy in line with the SEC requirement.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 155 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**CEO pay ratio**

Pay ratios will differ significantly between companies, even within the same industry, depending on demographics and

business models. The Group's UK employee demographic, which primarily consisted of largely professional, management

and senior corporate roles, changed in 2019 with the addition of a number of hotel employing entities, comprising the UK

leased estate, which includes a large proportion of part-time and flexible-working support and service roles. Consistent

with past disclosures, we show the ratio both including and excluding the UK hotel employing entities.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Financial year ended <br>31 December |  | Full population | Full population | Full population | Population excluding hotel employing entities | Population excluding hotel employing entities | Population excluding hotel employing entities |
| Financial year ended <br>31 December | Method | 25th | Median | 75th | 25th | Median | 75th |
| 2025 | Option C | 283:1 | 214:1 | 119:1 | 144:1 | 113:1 | 73:1 |
| 2024 | Option C | 228:1 | 169:1 | 95:1 | 119:1 | 92:1 | 59:1 |
| 2023 | Option C | 242:1 | 156:1 | 78:1 | 94:1 | 71:1 | 46:1 |
| 2022 | Option C | 193:1 | 113:1 | 67:1 | 71:1 | 56:1 | 35:1 |
| 2021 | Option C | 163:1 | 65:1 | 41:1 | 59:1 | 42:1 | 27:1 |
| 2020 | Option C | 89:1 | 44:1 | 25:1 | 35:1 | 26:1 | 18:1 |
| 2019 | Option C | 180:1 | 122:1 | 59:1 | 71:1 | 49:1 | 32:1 |
| 2018 | Option C | – | – | – | 72:1 | 48:1 | 29:1 |

---

The 2018–24 figures have been restated to reflect the value of the CEO's LTIP awards on the date of actual vesting rather than the estimated

values used in the respective years' reports.

**What drives the difference** 

**in pay between our CEO** 

**and other employees?**

Pay ratios reflect how remuneration

arrangements differ as responsibility

increases for more senior roles within

the organisation, for example:

–a greater proportion of performance-

related variable pay and share-based

incentives apply for the more senior

executives, including Executive

Directors, who will have a greater

degree of influence over performance

outcomes;

–role-specific incentive plans apply

in certain areas such as corporate

reservations, sales, hotel development

and general managers of IHG owned

& leased hotels. The target and

maximum amounts that can be

earned under these plans are typically

a higher percentage of base salary

for more senior employees, which

in turn affect the pay ratio; and

–incentive plans for other corporate

employees are typically primarily

based on a combination of individual

performance and the Group's

operating profit from reportable

segments.

The increase in ratio since 2020 reflects

the strong performance of the business

and the resulting increases in variable

pay outcomes, and revisions to the

Policy, including higher bonus award

levels for Executive Directors. Overall,

on this basis, the Company believes that

the median pay ratio for the relevant

financial year is consistent with the pay,

reward and progression for the

Company's UK employees taken as

a whole.

**Calculation methodology** 

**and supporting information**

Option C has been selected for the

identification of the percentile employees.

IHG prefer to use this method as we are

able to produce the most accurate total

remuneration figure for all UK employees

on a basis comparable with the statutory

reporting for Executive Directors using

the most recently available data at the

time of producing the Annual Report.

Specifically, this involves:

–compiling all monthly payroll data

for all UK employees from 1 January to

31 December 2025 detailing complete

variable and fixed remuneration,

including pension and taxable benefits

such as company car allowance and

healthcare; and

–valuing APP for the corporate

workforce based on actual 2025

Company performance metrics,

with no adjustment to that for individual

performance, as actual outcomes

for this element of the award are

not known at the time of writing this

report, so that it reflects as much of

the same input as for the CEO data

as possible at the time of calculation.

In practice, personal performance

outcomes are subject to manager

discretion and awards can be flexed

between 0% and 200% of target.

Option C requires three UK employees

to be identified as the equivalent of the

25th, 50th and 75th percentile. Having

identified these employees based on

the population as at 31 December 2025,

the remuneration for 2025 is calculated

on the same basis as the CEO single

total figure of remuneration.

The pay arrangements for the six

employees – three from the full population

and three from the population excluding

hotel employing entities – were reviewed

alongside those for the employees ranked

immediately above and below them to

confirm that they were representative

of pay levels at these quartiles. The 2025

salary and total pay for the individuals

identified at the lower, median and

upper quartiles are set out below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Year |  | 25th percentile pay ratio | Median pay ratio | 75th percentile pay ratio |
| Financial year ended 31 December 2025 – <br>Full population | Salary £ | £29,121 | £43,429 | £67,776 |
| Financial year ended 31 December 2025 – <br>Full population | Total remuneration £ | £36,547 | £48,216 | £86,814 |
| Financial year ended 31 December 2025 – <br>Excluding hotel employing entities | Salary £ | £54,845 | £69,189 | £103,000 |
| Financial year ended 31 December 2025 – <br>Excluding hotel employing entities | Total remuneration £ | £71,952 | £91,732 | £142,344 |

---

---

| | | |
|:---|:---|:---|
| 156 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Directors' Remuneration Report continued |
| Annual Report on Remuneration continued |

---

**Audited**

![](ihg-20251231_g293.gif)

**Single total figure of remuneration: Non-Executive Directors**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | Fees<br>£000 | Fees<br>£000 | Taxable benefits<br>£000 | Taxable benefits<br>£000 | Total<sup>a</sup><br>Rounded to the <br>nearest<br>£000 | Total<sup>a</sup><br>Rounded to the <br>nearest<br>£000 |
| Non-Executive Director | Date of original<br>appointment<br>| Additional/<br>Committee <br>appointments<br>| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
| Deanna Oppenheimer | 1 June 2022 | N, R | 509 | 494 | 51 | 56 | 560 | 550 |
| Graham Allan | 1 September 2020 | A, N, RB, SID | 144 | 140 | 3 | 2 | 147 | 142 |
| Arthur de Haast | 1 January 2020 | A, RB | 90 | 87 | 3 | 5 | 93 | 92 |
| Duriya Farooqui | 7 December 2020 | VoE, A, RB | 100 | 93 | 11 | 17 | 111 | 110 |
| Byron Grote | 1 July 2022 | A, N, R | 119 | 116 | 3 | 4 | 122 | 120 |
| Sir Ron Kalifa | 1 January 2024 | A, R | 90 | 87 | 6 | 4 | 95 | 91 |
| Angie Risley | 1 September 2023 | N, R, RB | 119 | 116 | 17 | 20 | 136 | 136 |
| Sharon Rothstein | 1 June 2020 | A, RB | 90 | 87 | 26 | 21 | 116 | 108 |

---

a.Sum of individual items may differ from totals due to values being shown to nearest £1,000.

---

| | |
|:---|:---|
| **+** | See page 119 for Board and Committee membership key and page 117 for attendance. |

---

**Benefits:** For Non-Executive Directors, benefits include taxable travel and accommodation expenses to attend Board

meetings away from the designated home location. Under UK income tax legislation, the non-UK based Non-Executive

Directors are not subject to tax on some travel expenses; this is reflected in the taxable benefits for Deanna Oppenheimer,

Duriya Farooqui and Sharon Rothstein.

**Non-Executive Directors' shareholdings at 31 December 2025**

---

| | | |
|:---|:---|:---|
| Non-Executive Director | 2025 | 2024 |
| Deanna Oppenheimer<sup>a</sup> | 7000 | 7000 |
| Graham Allan | 600 | 600 |
| Arthur de Haast | 1000 | 1000 |
| Duriya Farooqui<sup>a</sup> | 200 | 200 |
| Byron Grote<sup>a</sup> | 7800 | 6800 |
| Sir Ron Kalifa | 679 | 679 |
| Angie Risley | 848 | 848 |
| Sharon Rothstein<sup>a</sup> | 2000 | 2000 |

---

a.Shares held in the form of American Depositary Receipts (ADRs).

There have been no changes in the shareholdings from the end of the financial year to the publication of this report for

Non-Executive Directors who have remained in role.

**Non-Executive Director fees for 2026**

The fees for Non-Executive Directors are reviewed and agreed annually in line with the Policy. Increases for 2026 are in

line with those for the wider UK and US corporate workforce budget. The resulting fee levels that will be effective from

1 January 2026 are as follows, with each element independently rounded to the nearest £1,000:

---

| | | | |
|:---|:---|:---|:---|
|  |  | Annual fee | Annual fee |
|  |  | 2026 | 2025 |
| Role | Increase | £000 | £000 |
| Chair of the Board | 2.0% | 519 | 509 |
| Non-Executive Director | 2.0% | 91 | 90 |
| Additional fees |  |  |  |
| Chair of Audit Committee | 2.0% | 31 | 30 |
| Chair of Remuneration Committee | 2.0% | 31 | 30 |
| Chair of Responsible Business Committee | 2.0% | 16 | 16 |
| Senior Independent Director | 2.0% | 40 | 39 |
| Voice of the Employee role | 2.0% | 11 | 10 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 157 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Annual percentage change in remuneration of Directors compared to employees**

The table below shows the percentage change in each Director's remuneration compared to that of an average employee

between the financial years ended 31 December 2020 to 31 December 2025.

The 2025 remuneration figures for the Directors are taken from the data used to compile the single total figure of remuneration

tables shown on pages 148 and 156, prior to any rounding. No employees are directly employed by the Group's Parent Company,

so the average employee data is based on the same UK corporate employee population as that on which the CEO pay ratio

is calculated.

All corporate employees have the same corporate performance metrics for the APP as the Executive Directors; however,

for corporate employees below Executive Committee level, awards may be adjusted based on individual performance,

the results of which are not available at the time of reporting. For average employee data, we assume that no adjustment to

company performance is made in respect of individual performance. Non-Executive Directors are not eligible to participate

in any variable remuneration plans.

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Salary | Salary | Salary | Salary | Salary | APP | APP | APP | APP | APP | Taxable benefits | Taxable benefits | Taxable benefits | Taxable benefits | Taxable benefits |
| Executive Director | 2021 | 2022 | 2023 | 2024 | 2025 | 2021 | 2022 | 2023 | 2024 | 2025 | 2021 | 2022 | 2023 | 2024 | 2025 |
| Elie Maalouf | 22% | 4% | 21% | 19% | 7% | 100% | (1)% | (15)% | (8)% | 44% | 91% | 12% | 247% | 111% | (6)% |
| Michael Glover | – | – | – | – | 3% | – | – | – | – | 15% | – | – | – | – | 7% |
| Non-Executive Director |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Deanna Oppenheimer | – | – | – | 4% | 3% | N/A | N/A | N/A | N/A | N/A | – | – | – | 69% | (9)% |
| Graham Allan | – | 49% | 13% | 6% | 3% | N/A | N/A | N/A | N/A | N/A | – | 684% | 108% | (36)% | 18% |
| Arthur de Haast | 18% | 4% | 3% | 4% | 3% | N/A | N/A | N/A | N/A | N/A | (1)% | 1706% | 28% | (16)% | (33)% |
| Duriya Farooqui | – | 4% | 3% | 11% | 8% | N/A | N/A | N/A | N/A | N/A | – | 100% | 10% | 15% | (35)% |
| Byron Grote | – | – | – | 9% | 3% | N/A | N/A | N/A | N/A | N/A | – | – | – | (26)% | (32)% |
| Sir Ron Kalifa | – | – | – | – | 3% | N/A | N/A | N/A | N/A | N/A | – | – | – | – | 48% |
| Angie Risley | – | – | – | – | 3% | N/A | N/A | N/A | N/A | N/A | – | – | – | – | (15)% |
| Sharon Rothstein | – | 4% | 3% | 4% | 3% | N/A | N/A | N/A | N/A | N/A | – | 100% | (10)% | 159% | 22% |
| Average employee | 3% | 14% | 8% | 5% | 5% | 100% | (6)% | (9)% | (5)% | (10)% | (11)% | 5% | 20% | 15% | 17% |

---

**Notes**

–The Remuneration Committee approved an additional fee of £10,000 for the Voice of the Employee Non-Executive Director

role for Duriya Farooqui with effect from 1 June 2024.

–Byron Grote was appointed Chair of the Audit Committee with effect from 1 March 2023.

–Elie Maalouf took on the role of Group CEO on 1 July 2023 and therefore his percentage change between 2023 and 2024

reflects a period during 2023 in his previous CEO, Americas role.

–The increase in salary for Elie Maalouf and increases in APP for Elie Maalouf and Michael Glover are driven primarily by revised

remuneration under the revised Policy approved in 2025.

---

| | | |
|:---|:---|:---|
| 158 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Directors' Remuneration Report continued |
| Annual Report on Remuneration continued |

---

**Committee areas of focus** 

**in 2025**

–Approval of the 2024 Directors'

Remuneration Report.

–Review and approval of 2024

remuneration outcomes and 2025

incentive plan structures and targets.

–In-year Company and relative

performance tracking.

–Review and adjustment of in-flight

LTIP targets in alignment with our

Journey to Tomorrow strategy.

–Wider workforce remuneration

matters.

–Completion of the review of

Directors' Remuneration Policy

and implementation.

–Shareholder engagement process.

–Review of Committee Terms of

Reference and effectiveness.

**Key objectives and** 

**summary of responsibilities**

The Committee approves, on behalf of

the Board, all aspects of remuneration

for the Executive Directors, the

Executive Committee and the Chair

of the Board, and also approves the

strategy, direction and policy for the

remuneration of the senior executives

who have a significant influence over

the Group's ability to meet its strategic

objectives. Additionally, the Committee

reviews wider workforce pay policies

and practice to ensure alignment

with strategy, values and behaviours

and takes this into account when setting

Executive Director remuneration. The

Committee's role and responsibilities

are set out in its Terms of Reference

(ToR), which are reviewed annually

and approved by the Board.

---

| | |
|:---|:---|
| **+** | The ToR are available on IHG's website <br>at ihgplc.com/investors under <br>Corporate governance. |
|  | The ToR are available on IHG's website <br>at ihgplc.com/investors under <br>Corporate governance. |
|  | The ToR are available on IHG's website <br>at ihgplc.com/investors under <br>Corporate governance. |

---

**Membership and** 

**attendance at meetings**

The members of the Committee

during 2025 were Angie Risley (Chair),

Deanna Oppenheimer, Byron Grote

and Sir Ron Kalifa. Details of the

attendance at Committee meetings

are set out on page 117.

During 2025, the Committee was

supported internally by the Company

Chair, the Group's CEO and CFO,

the General Counsel and Company

Secretary, and senior members of the

Human Resources and Reward teams

as necessary. All attend by invitation to

provide further background information

and context to assist the Committee

in its duties. They are not present for

any discussions that relate directly

to their own remuneration or where

their attendance would not otherwise

be appropriate.

**Reporting to the Board**

The Committee Chair updates the Board

on all key issues raised at Committee

meetings. Papers and minutes for each

meeting are also circulated to all Board

members for review and comment.

**Non-Executive Directors'** 

**letters of appointment** 

**and notice periods**

Non-Executive Directors have letters

of appointment, which are available

upon request from the Company

Secretary's office.

In accordance with Provision 40 of

the UK Corporate Governance Code,

Deanna Oppenheimer, Non-Executive

Chair, is subject to 12 months' notice

and, in compliance with Provision 19

of the UK Corporate Governance

Code, has not held the position of

Non-Executive Chair for beyond nine

years from her appointment. No other

Non-Executive Directors are subject

to notice periods; all Non-Executive

Directors are subject to an annual re-

election by shareholders at the AGM.

**Effectiveness of** 

**the Committee**

In 2025, the Committee's effectiveness

was reviewed as part of the internal

Board performance review process. The

Committee concluded that it remains

effective and meets its responsibilities

well. Focus areas identified included

continued member skill development

and awareness of wider workforce pay.

**Advisers**

IHG appointed Willis Towers Watson

(WTW) to act as independent adviser to

the Committee in 2024, following a

competitive tender process undertaken

by the Committee.

WTW is a member of the Remuneration

Consultants Group and, as such, operates

under the code of conduct in relation

to executive remuneration consulting

in the UK. The Committee is therefore

satisfied that the advice received from

its advisers is objective and independent.

Fees of £230,108 plus VAT were paid to

WTW in respect of the advice provided

to the Committee in relation to Director

remuneration in 2025. Fees were charged

at a combination of fixed amounts for

specific items of work and hourly rates.

**Approach to target setting**

Targets are set by the Committee,

taking into account IHG's growth

algorithm and long-range business

plan as approved by the Board, market

expectations and the circumstances

and relative performance at the time.

The Committee sets stretching targets

for senior executives that will reflect

successful outcomes for the business

based on its strategic and financial

objectives for the period.

Absolute targets may be set relative

to budget and/or by reference to

prior results, generally containing a

performance range with additional

stretch to incentivise outperformance

and minimum performance levels

for payout.

Relative targets are set against an

appropriate comparator group of

companies for the relevant measure,

for example, relative NSSG in the

LTIP was set against our six largest

competitors with more than 500,000

rooms, to reflect our strategy of

accelerating the growth of our brands

in high-value markets.

Performance will be reviewed

throughout the period in which it is

applicable for, and if any amendments

are required, this will be disclosed in

the Directors' Remuneration Report

for the year in which the amendment

has been agreed.

**Board changes**

There were no changes to the

composition of the Board during 2025.

As announced on 15 December 2025,

Nicholas Cadbury will join the Board on

1 March 2026. His fees will be aligned

with the 2026 rates on page 156.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 159 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Wider workforce** 

**remuneration and** 

**employee engagement**

As outlined on page 146, IHG operates

an aligned approach to remuneration

throughout the organisation. During the

year, the Committee reviewed aspects

of the Company's wider workforce

remuneration approach as part of its

regular meeting agenda.

The Company engaged with the

workforce through its employee

engagement survey, which covers

a number of areas, including pay and

benefits competitiveness and wellness.

Our overall employee engagement

remained at 87% for 2025, placing

IHG in the top quartile of employers

for engagement.

During 2025, the Chair of the Committee

joined UK and US employee engagement

sessions to meet directly with members

of IHG's corporate workforce, with the aim

of collating and sharing such feedback

with the Board for consideration in

its decision-making. No concerns were

raised regarding Executive Director

remuneration or how it aligns with the

wider IHG remuneration principles.

**Service contracts** 

**and notice periods for** 

**Executive Directors**

The Committee's policy is for all

Executive Directors to have service

contracts with a notice period of

12 months from the Company and

a notice period of six months for the

employee. On an exceptional basis

to complete an external recruitment

successfully, a longer initial notice

period reducing to 12 months may

be used. This is in accordance with

Provision 40 of the UK Corporate

Governance Code.

All Executive Directors' appointments

and subsequent reappointments to

the Board are subject to election and

annual re-election by shareholders

at the AGM.

Details of current Executive Directors'

contracts are available on request

from the Company Secretary's office.

The respective dates of appointment

and notice periods are shown below:

---

| | | |
|:---|:---|:---|
| Executive Director | Date of original<br>appointment to the Board<br>| Notice period |
| Elie Maalouf | 1 January 2018 | 12 months |
| Michael Glover | 20 March 2023 | 12 months |

---

**Voting on remuneration at the Company's AGM**

The outcomes of the latest remuneration votes are shown below:

---

| | | | |
|:---|:---|:---|:---|
| AGM | Votes for | Votes against | Abstentions |
| Directors' Remuneration Report (advisory vote): 8 May 2025 | 97,581,504<br>(79.00%)<br>| 25,940,873<br>(21.00%)<br>| 587107 |
| Directors' Remuneration Policy (binding vote): 8 May 2025 | 83,101,700<br>(69.51%)<br>| 36,445,863<br>(30.49%)<br>| 4561922 |

---

**Implementation of Directors' Remuneration Policy in 2026**

This section explains how certain elements of the Policy will be applied in 2026.

**Salary: Executive Directors**

Directors' salaries are agreed annually in line with the Policy. The following salaries will apply with effect from 1 April 2026:

---

| | | | |
|:---|:---|:---|:---|
|  | Increase | 2026 | 2025 |
| Executive Director | % | £ | £ |
| Elie Maalouf | 2.0 | 1122000 | 1100000 |
| Michael Glover | 2.0 | 677600 | 664350 |

---

Salaries for both Executive Directors will increase by 2.0% in line with the budget for the wider UK and US corporate workforce.

**RSU 2025**

RSU awards will be granted to Executive Directors in 2026. The following underpin will apply, which is the same as the underpin

for the 2025 awards:

–Vesting of restricted shares will be contingent on the satisfaction of a discretionary underpin, which will be assessed by the

Committee prior to vesting. The Committee will consider the extent to which the Executive Directors have effectively delivered

IHG's strategy across the vesting period, as well as any factors that have resulted in serious reputational damage or significant

financial loss to the Company.

–In making its assessment, the Committee will take into account the experience of stakeholders, including our shareholders,

owners and guests. Following the vesting date for each award cycle, the Committee will disclose its considerations in

assessing the underpin in the relevant Directors' Remuneration Report.

---

| | | |
|:---|:---|:---|
| 160 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Directors' Remuneration Report continued |
| Annual Report on Remuneration continued |

---

**Implementation of Directors' Remuneration Policy in 2026 continued**

**APP 2026 and LTIP 2026–28 performance measures and targets**

APP

The APP measures for 2026 will be operating profit from reportable segments (70%), room signings and Net System Size Growth

(NSSG) (15% each).

The previously used room openings measure will be replaced with an absolute NSSG measure. This change aims to ensure that

management are focused not only on adding new rooms, but also on retaining existing ones, thereby growing our overall system

size. While the LTIP also includes an NSSG measure, the APP target is absolute and drives growth against our business targets

within the year. In contrast, the LTIP target provides a relative, long-term measurement against our closest peers. The Committee

believes that having NSSG targets in both the APP and the LTIP will incentivise both short-term performance on an absolute

basis and longer-term growth on a relative basis.

The following table sets out the measures, definitions and weightings for the 2026 APP. Details of the targets are sensitive

and will be disclosed alongside the performance achieved in the 2026 Directors' Remuneration Report.

---

| | | |
|:---|:---|:---|
| Measure | Definition | Weighting |
| Operating profit from <br>reportable segments<br>| A measure of IHG's operating profit from reportable segments for the year | 70% |
| Room signings | Absolute number of new room signings | 15% |
| NSSG | Absolute Net System Size Growth | 15% |

---

LTIP

Measures for the 2026–28 cycle are

relative Total Shareholder Return (20%);

relative net system size growth (25%);

cash flow (20%); adjusted earnings

per share (EPS) (25%); and carbon

and people metrics (10%). These are

the same categories of metric used

for the 2025–27 cycle.

The rationale for the inclusion of

each of the LTIP metrics is as follows:

–Relative Total Shareholder Return –

reflects our aim to deliver competitive

shareholder returns as well as aligning

the interests of Executive Directors

with those of shareholders;

–Relative net system size growth

(NSSG) – measured relative to our

closest competitors, NSSG reflects

our industry-leading growth in our

scale ambition;

–Cash flow – as a metric, it measures

our ability to deliver consistent,

sustained growth in cash flows

and profits over the long-term;

–Carbon and people – aligned to

our decarbonisation strategy, the

carbon measure relating to Energy

Conservation Measures (ECMs)

is focused on supporting owners of

new-build and conversion re-use hotels

to reduce energy costs and drive better

hotel performance via adoption of

ECMs. The people measure relates

to our primary hotel leadership

programme, Journey to GM, to focus

attention on developing high-quality

talent to fuel our long-term growth; and

–Adjusted EPS – a key business metric,

prominent in company results reporting

and commonly used for valuation

purposes. It provides a measure of the

efficiency of the capital structure, in

that returns of capital can be captured

within Adjusted EPS performance, as

well as promoting further alignment

with shareholder experience.

**How are performance targets set?**

The targets for the 2026–28 LTIP

have been set by the Committee,

taking into account IHG's long-range

business plan, market expectations

and the circumstances and relative

performance with the aim of setting

stretching targets for senior executives,

which will reflect successful outcomes

for the business based on its long-term

strategic objectives.

Aligned with the medium- to long-term

aspirations of our growth algorithm

and with EPS consensus forecasts at

the time that the Committee set them,

the Adjusted EPS targets for the

2026–28 cycle are unchanged from

the 2025–27 targets following the

increase to the targets for that cycle.

Analysis showed that the range sits at

the upper quartile relative to other FTSE

100 companies. While performance for

recent cycles has been strong, a lower

RevPAR growth environment, heightened

competition and normalisation of growth,

and more moderate consensus estimates

and internal forecasts led the Committee

to determine that the range should

remain in line with the targets for the

2025–27 cycle.

Adjusted EPS targets incorporate

assumed share buybacks as part of our

ongoing shareholder return programme,

so the Committee would not expect

to adjust performance outcomes

at the end of the performance period

for buybacks made during the cycle.

Threshold performance will result in

20% vesting, maximum performance

will result in 100% vesting, with straight-

line vesting in between threshold

and maximum.

The details of the targets for the

2026–28 LTIP cycle are set out in

the table on the following page.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 161 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| Measure | Definition | Weighting | Targets |
| Relative Total <br>Shareholder Return <br>(TSR)<br>| IHG's performance against a <br>comparator group of global hotel <br>companies against which TSR <br>outcomes are measured: Accor S.A., <br>Choice Hotels International Inc., H <br>World Group Limited, Hilton Worldwide <br>Holdings Inc., Hyatt Hotels Corporation, <br>Indian Hotels Company Limited, Jin <br>Jiang International Holdings Company <br>Limited, Marriott International Inc., <br>Melia Hotels International S.A., Minor <br>International PCL, Scandic Hotels <br>Group AB, Shangri-La Hotel Public <br>Company Limited, Whitbread PLC <br>and Wyndham Hotels & Resorts Inc.<br>| 20% | Threshold: Median of comparator group<br>Maximum: Upper quartile of <br>comparator group<br>|
| Relative net system <br>size growth<br>| IHG's aggregated compound annual <br>growth rate (CAGR) against our six <br>largest competitors with more than <br>500,000 rooms: Marriott International <br>Inc., Hilton Worldwide Holdings Inc., <br>Accor S.A., Jin Jiang International <br>Holdings Company Limited, Wyndham <br>Hotels & Resorts Inc. and Choice Hotels <br>International Inc. Targets will be set <br>based on increased room count that is <br>consistent with the relevant company's <br>business plan objectives and practice <br>as at the start of the LTIP cycle.<br>| 25% | Threshold: Fourth ranked competitor <br>excluding IHG<br>Maximum: First ranked competitor <br>excluding IHG<br>|
| Absolute cash flow | Cumulative annual cash generation <br>over the three-year performance <br>period. Absolute cash flow includes <br>reported cash flow from operations <br>and net cash from investing activities.<br>| 20% | Threshold: $2.706bn<br>Maximum: $4.163bn<br>|
| Carbon and people | 1. Planet<br>Adoption of Energy Conservation <br>Measures (ECMs) in new-build <br>and conversion re-use hotels.<br>2. Talent interventions<br>Impact of our Journey to GM (J2GM) <br>talent programme.<br>| 10%<br>(5% each)<br>| 1. Threshold: 78% adoption of ECMs<br>Maximum: 86% adoption of ECMs<br>2. Threshold: 30% of talent who took part <br>in the J2GM programme commencing <br>between 2024 and 2026 have been <br>promoted by 31 December 2028<br>Maximum: 50% of talent who took part <br>in the J2GM programme commencing <br>between 2024 and 2026 have been <br>promoted by 31 December 2028<br>|
| Adjusted earnings <br>per share (EPS)<br>| Absolute compound annual growth <br>rate (CAGR).<br>| 25% | Threshold: 6% per annum CAGR<br>Maximum: 14% per annum CAGR<br>|

---

Angie Risley

Chair of the Remuneration Committee

11 February 2026

---

| | | |
|:---|:---|:---|
| 162 | IHG | Annual Report and Form 20-F 2025 |

---

Statement of Compliance<br>

Our statement of compliance summarises how the Group has applied the principles of the 2024 UK Corporate Governance

Code (available at **[frc.org.uk/library/](frc.org.uk/library/standards-codes-policy/corporate-governance/uk-corporate-governance-code/)[standards-codes-policy/corporate-governance/uk-corporate-governance-code/](frc.org.uk/library/standards-codes-policy/corporate-governance/uk-corporate-governance-code/)** 

under UK Corporate Governance Code), as published in January 2024 (the Code), and comments on compliance with

the Code's provisions.

This should be read in conjunction with the Strategic Report on pages 4 to 114, and Governance, including the Directors'

Remuneration Report, on pages 138 to 161, as a whole.

The Board considers that the Group has complied in all material respects with the Code's provisions for the year ended

31 December 2025.

**1. Board Leadership** 

**and Company Purpose**

![](ihg-20251231_g298.gif)

**A. The role of the Board**

The Board continues to lead the

Group's strategic direction and long-

term objectives. Further responsibilities

of the Board are set out on page 122.

The Board met eight times during 2025

and all Directors continue to act in what

they consider to be the best interests

of the Company, consistent with their

statutory duties. Further details of 2025

Board meetings, including information

![](ihg-20251231_g298.gif)

on matters discussed and decisions

taken by the Board, are set out on

pages 123 to 125; attendance information

is on page 117; and skills and experience

and biographical information is on

pages 118 to 119.

A description of IHG's business model

and the factors contributing to its

resilience is set out on pages 24 to 29.

An assessment of the principal risks

facing the Group is included on

pages 48 to 53.

Potential conflicts of interest are reviewed

annually, and powers of authorisation

are exercised in accordance with the

![](ihg-20251231_g298.gif)

Companies Act and the Company's

Articles of Association.

During the year, if any Director has

unresolved concerns about the operation

of the Board or the management of

the Company, these would be recorded

in the minutes of the meeting.

![](ihg-20251231_g298.gif)

**B. The Company's purpose,** 

**values and strategy**

Our purpose is to provide True Hospitality

for Good. A description of our culture is

set out on pages 56 to 59 and information

on the Board's assessment of how the

culture has been embedded is included

on page 116. A summary of the Board's

activities in relation to the Voice of the

Employee is included on page 135.

![](ihg-20251231_g298.gif)

Information on the Group's approach

to rewarding its workforce, underpinned

by its embedded performance culture,

is contained on pages 145 to 147.

**C. Board decisions and outcomes**

References to the outcomes of Board

decisions are included throughout

![](ihg-20251231_g298.gif)

this report. For example, information

on the outcomes of, and change

delivered by, the Board's endorsement

of a performance culture is included

on pages 62 and 145. Details of the

outcome of the decision to acquire

the Ruby brand are set out on pages

13 and 33. The summary of decisions

made by the Board on pages 124 and

125 also illustrates the outcomes of

those decisions.

**D. Shareholders and stakeholders**

The Board engaged actively throughout

2025 with shareholders and other

stakeholders. Information on the

extensive consultation exercise with

![](ihg-20251231_g298.gif)

shareholders in respect of the Directors'

Remuneration Policy approved during

the year is included on pages 139

and 142.

Information on the Board's consideration

of and engagement with other

stakeholders, including employees,

suppliers, hotel owners and guests,

is included on pages 124 to 126.

**E. Workforce policies and practices**

The Board has overarching responsibility

for the Group's workforce policies

and practices and delegates day-to-day

responsibility to the CEO and Chief

Human Resources Officer to ensure that

they are consistent with the Company's

values and support its long-term success.

Employees are able to report matters

of concern confidentially through

our Confidential Disclosure Channel.

The Board routinely reviews reports

generated from the disclosures and

ensures that arrangements are in place

for investigation and follow-up action

as appropriate.

**2. Division of Responsibilities**

**F. The Chair**

Deanna Oppenheimer leads the

operation and governance of the

Board and its Committees.

Deanna commenced as Chair in

September 2022 and was independent

on appointment.

**G. Board composition**

The size and composition of the Board

and its Committees are kept under

review by the Nomination Committee

to ensure the appropriate combination

of Executive and Non-Executive

Directors. Details of the composition

of the Board and Committees are

available on pages 118 and 119.

At least half of the Board, excluding

the Chair, are Independent Non-

Executive Directors. Neither of the

Executive Directors has a non-executive

director role or other significant

appointment.

**H. Non-Executives**

Non-Executive Director terms

of appointment outline IHG's time

commitment expectations required

to fulfil their role.

The commitments of each Director are

included in the Directors' biographical

details on pages 118 and 119. Details of

Non-Executive Director appointment

terms are set out on page 158.

The time each Non-Executive

Director dedicates to IHG, including

consideration of other appointments,

is reviewed annually as part of

the performance review of Directors

(see page 127). The Chair led the

reviews in 2025 and was satisfied

that the Non-Executive Directors'

other duties and time commitments

do not conflict with those as Directors.

Graham Allan, as the Senior

Independent Non-Executive Director,

provides a sounding board for the

Chair and serves as an intermediary for

the other Directors and shareholders.

Graham also led the annual performance

review of the Chair (see page 127).

After each Board meeting, Non-Executive

Directors and the Chair meet without

Executive Directors being present.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 163 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | **[Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148)** | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**I. Policies, processes,** 

**information and resources**

The Chair and Company Secretary ensure

![](ihg-20251231_g298.gif)

that the Board and its Committees have

the necessary policies and processes

in place and that they receive timely,

accurate and clear information. The Board

and its Committees also have access to

the Company Secretary, independent

advice and other necessary resources,

at the Company's expense. They receive

the administrative and logistical support

of a full-time executive assistant.

**3. Composition, Succession** 

**and Evaluation**

![](ihg-20251231_g298.gif)

**J. Appointments**

Appointments to the Board are

led by the Nomination Committee in

accordance with its Terms of Reference

(available on our website at **ihgplc.com/**

**investors** under Corporate governance).

The Nomination Committee also supports

the Board in succession planning for the

Board and senior management. Further

![](ihg-20251231_g298.gif)

details of the role of the Nomination

Committee and what it did in 2025 are

in the Nomination Committee Report

on pages 136 to 137.

The overall process of appointment

and removal of Directors is overseen

by the Board as a whole.

All of the Directors retire and seek

election or re-election at each AGM.

![](ihg-20251231_g298.gif)

**K. Skills**

Details of the skills, experience and

biographical information of the Board

are set out on pages 118 and 119.

The Chair and Company Secretary ensure

that new Directors receive a full induction,

and that all Directors have the requisite

knowledge and familiarity with the Group

to fulfil their role.

The length of service of Non-Executive

![](ihg-20251231_g298.gif)

Directors is reviewed regularly.

![](ihg-20251231_g298.gif)

**L. Annual performance review**

The Board undertakes either an internal

or external annual Board performance

review. In 2025, the Board undertook

an internal performance review. Details

of the process and results of the review

are included on page 127.

Performance reviews of Directors,

including the Chair, are also carried out

on an annual basis. Directors' biographies

are set out on pages 118 and 119, and

details of performance reviews carried

out in 2025 are on page 127.

**4. Audit, Risk and** 

**Internal Control**

**M. Audit functions**

The Audit Committee is comprised

entirely of Independent Non-Executive

Directors (see page 117 for membership

details).

Byron Grote, the Audit Committee's

Chair, has recent and relevant financial

experience, and the Committee as a

whole has competence relevant to the

sector in which we operate. Details of

the Committee's role, responsibilities

and activities are set out on pages

128 to 133.

![](ihg-20251231_g298.gif)

The Audit Committee reviewed the

effectiveness of the Group's Internal

Audit function and also assessed

PricewaterhouseCoopers LLP's

performance during 2025, including

its independence and effectiveness.

Details of these reviews are set out

in the Audit Committee Report on

pages 129 to 131.

**N. Assessment of the Company's** 

**position and prospects**

The Statement of Directors'

Responsibilities (including the Board's

statement confirming that it considers

that the Annual Report and Form 20-F,

![](ihg-20251231_g298.gif)

taken as a whole, is fair, balanced and

understandable and provides the

information necessary for shareholders

to assess the Group's position,

performance, business model and

strategy) is set out on page 165.

The status of IHG as a going concern

is set out in the Directors' Report on

page 263. An explanation of the Group's

performance, business model, strategy

and the risks and uncertainties relating

to IHG's prospects, including the

viability of the Group, is set out in the

![](ihg-20251231_g298.gif)

Strategic Report on pages 4 to 114.

**O. Risk management**

The Board determines the nature

and extent of the principal risks the

organisation is willing to take to achieve

its strategic objectives. The Board

completed an assessment of the

principal and emerging risks facing the

Group during the year, including those

risks that would threaten the Group's

business model, future performance,

solvency or liquidity and reputation

(see pages 48 to 53 for further details

of the principal risks). The Board and

Audit Committee monitor the Group's

risk management and internal

control framework and conduct an

annual review of its effectiveness.

Throughout the year, the Board has

directly, and through delegated authority

to the Executive Committee and

the Audit Committee, overseen and

reviewed the operation of the Group's

risk management and internal control

framework, including the material

controls across financial, operational,

reporting and compliance areas.

See pages 46 to 53 and 128 to 133.

In making this assessment, the Board

recognises that risk and control remain

dynamic and that any framework of

internal control has inherent limitations.

**5. Remuneration**

**P. Remuneration policies** 

**and practices**

The Remuneration Committee is

responsible for developing policy

on executive remuneration and

determining remuneration packages

of Directors and senior management.

The Directors' Remuneration Report

is set out on pages 138 to 161. Details

of the Remuneration Committee's

focus areas during 2025 are set out on

page 158, and its membership details

are on pages 118 and 119. A summary

of the Company's malus and clawback

provisions is included on page 154.

**Q. Procedure for developing** 

**policy on executive remuneration**

Details of how the Directors'

Remuneration Policy (DR Policy) was

implemented in 2025 are set out

on pages 142 to 144. The DR Policy

was reviewed and put to vote during

2025. Details of how it was developed

and the related shareholder

consultation are set out on page 142.

During 2025, no individual Director

was involved in deciding his or her

own remuneration outcome.

**R. Independent judgement** 

**and discretion**

The Remuneration Committee has

formal discretions in place in relation

to outcomes under the Deferred Award

Plan rules, and these are disclosed as

part of the DR Policy. When determining

outcomes under incentive plans,

the Committee considers whether

it is appropriate to adjust outcomes

under these discretions, taking account

of the Group's performance, relative

performance against competitors

and other relevant factors. Information

on the Remuneration Committee's

consideration of the use of discretion

during 2025 is set out on pages

148 to 161.

---

| | | |
|:---|:---|:---|
| 164 | IHG | Annual Report and Form 20-F 2025 |

---

![GroupFinStatements_divider.jpg](ihg-20251231_g299.jpg)

---

| | |
|:---|:---|
| In this section | In this section |
| [Statement of Directors' Responsibilities](#i8de52f7da8cb42fcba7bb475e53ba9b6_208) | [165](#i8de52f7da8cb42fcba7bb475e53ba9b6_208) |
| [Independent Auditor's US Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_214) | [174](#i8de52f7da8cb42fcba7bb475e53ba9b6_214) |
| [Group Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_217) | [176](#i8de52f7da8cb42fcba7bb475e53ba9b6_217) |
| [Group income statement](#i8de52f7da8cb42fcba7bb475e53ba9b6_217) | [176](#i8de52f7da8cb42fcba7bb475e53ba9b6_217) |
| [Group statement of comprehensive income](#i8de52f7da8cb42fcba7bb475e53ba9b6_220)  | [177](#i8de52f7da8cb42fcba7bb475e53ba9b6_220) |
| [Group statement of changes in equity](#i8de52f7da8cb42fcba7bb475e53ba9b6_223) | [178](#i8de52f7da8cb42fcba7bb475e53ba9b6_223) |
| [Group statement of financial position](#i8de52f7da8cb42fcba7bb475e53ba9b6_226) | [181](#i8de52f7da8cb42fcba7bb475e53ba9b6_226) |
| [Group statement of cash flows](#i8de52f7da8cb42fcba7bb475e53ba9b6_229) | [182](#i8de52f7da8cb42fcba7bb475e53ba9b6_229) |
| [Accounting policies](#i8de52f7da8cb42fcba7bb475e53ba9b6_232) | [183](#i8de52f7da8cb42fcba7bb475e53ba9b6_232) |
| [Notes to the Group Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_235) | [195](#i8de52f7da8cb42fcba7bb475e53ba9b6_235) |

---

Holiday Inn Resort

Kandooma, Maldives.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 165 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Statement of Directors' Responsibilities<br>

**Financial Statements** 

**and accounting records**

The Directors are required to prepare

the Annual Report and Form 20-F and the

Financial Statements for the Company

and the Group at the end of each financial

year in accordance with applicable law

and regulations. Under company law,

directors must not approve the Financial

Statements unless they are satisfied that

they give a true and fair view of the state

of affairs of the Company and the Group

and the profit or loss of the Group for

that period. The Directors have prepared

the Consolidated Financial Statements in

accordance with UK-adopted international

accounting standards and IFRS Accounting

Standards as issued by the International

Accounting Standards Board. The Company

Financial Statements have been prepared

in accordance with UK accounting standards,

comprising Financial Reporting Standard 101

'Reduced Disclosure Framework' ('FRS 101'),

and applicable law.

In preparing these Financial Statements,

IHG Directors are required to:

–select suitable accounting policies

and apply them consistently;

–make judgements and accounting

estimates that are reasonable;

–state whether the Consolidated

Financial Statements have been

prepared in accordance with

UK-adopted international accounting

standards;

–state for the Company Financial

Statements whether applicable UK

accounting standards, comprising

FRS 101, have been followed; and

–prepare the Financial Statements

on the going concern basis unless

it is inappropriate to presume that

the Company and the Group will

continue in business.

The Directors have responsibility

for ensuring that the Company and

the Group keep adequate accounting

records sufficient to show and explain the

Company's and the Group's transactions,

and which disclose with reasonable

accuracy the financial position of the

Company and the Group to enable them

to ensure that the Financial Statements

and the Directors' Remuneration Report

comply with the Companies Act 2006.

The Directors are also responsible for the

system of internal control, for safeguarding

the assets of the Company and the Group,

and taking reasonable steps to prevent

and detect fraud and other irregularities.

**Disclosure Guidance** 

**and Transparency Rules**

The Board confirms that to the best

of its knowledge:

–The Consolidated Financial Statements

have been prepared in accordance with

UK-adopted international accounting

standards, and IFRS Accounting Standards

as issued by the International Accounting

Standards Board, and give a true and fair

view of the assets, liabilities, financial

position and profit or loss of the Group

taken as a whole;

–The Company Financial Statements have

been prepared in accordance with UK

accounting standards, comprising FRS 101,

and give a true and fair view of the assets,

liabilities and financial position of the

Company; and

–The Annual Report, including the

Strategic Report, includes a fair review

of the development and performance

of the business and the position of

the Company and the Group taken as

a whole, together with a description

of the principal risks and uncertainties

that it faces.

**UK Corporate Governance Code**

Having taken advice from the Audit

Committee, the Board considers that this

Annual Report and Form 20-F, taken as a

whole, is fair, balanced and understandable

and that it provides the information

necessary for shareholders to assess the

Company's and the Group's position and

performance, business model and strategy.

**Disclosure of information to Auditor**

The Directors who held office as at the date

of approval of this report confirm that they

have taken steps to make themselves aware

of relevant audit information (as defined by

Section 418(3) of the Companies Act 2006).

None of the Directors are aware of any relevant

audit information that has not been disclosed

to the Company's and Group's Auditor.

**Management's report on internal** 

**control over financial reporting**

Management is responsible for

establishing and maintaining adequate

internal control over financial reporting

for the Group, as defined in Rule 13a–15(f)

and 15d–15(f) under the Securities Exchange

Act of 1934 as a process designed to

provide reasonable assurance regarding

the reliability of financial reporting and

the preparation of financial statements for

external purposes in accordance with IFRSs.

The Group's internal control over financial

reporting includes policies and procedures that:

–pertain to the maintenance of records

that, in reasonable detail, accurately and

fairly reflect the Group's transactions

and dispositions of assets;

–are designed to provide reasonable

assurance that transactions are recorded

as necessary to permit the preparation of

the Consolidated Financial Statements in

accordance with UK-adopted international

accounting standards and International

Financial Reporting Standards as issued

by the International Accounting Standards

Board, and that receipts and expenditure

are being made only in accordance with

authorisation of management and the

Directors of the Company; and

–provide reasonable assurance regarding

prevention or timely detection of

unauthorised acquisition, use or disposition

of the Group's assets that could have a

material effect on the Consolidated

Financial Statements.

Any internal control framework has inherent

limitations and internal control over financial

reporting may not prevent or detect

misstatements. Also, projections of any

evaluation of effectiveness to future periods

are subject to the risk that controls may

become inadequate because of changes in

conditions, or the degree of compliance with

the policies or procedures may deteriorate.

Management has undertaken an

assessment of the effectiveness of the

Group's internal control over financial

reporting at 31 December 2025 based on

criteria established in the Internal Control-

Integrated Framework issued by the

Committee of Sponsoring Organizations of

the Treadway Commission (2013 Framework).

Based on this assessment, management

has concluded that as at 31 December 2025,

the Group's internal control over financial

reporting was effective.

During the period covered by this document,

there were no changes in the Group's

internal control over financial reporting that

have materially affected or are reasonably

likely to materially affect the effectiveness of

the internal controls over financial reporting.

The Group's internal control over

financial reporting at 31 December 2025,

together with the Group's Consolidated

Financial Statements, were audited

by PricewaterhouseCoopers LLP, an

independent registered public accounting

firm. Their auditor's report can be found

on page [174](#i8de52f7da8cb42fcba7bb475e53ba9b6_214).

For and on behalf of the Board

![IHG_Signature_Elie_Maalouf.jpg](ihg-20251231_g214.jpg)

Elie Maalouf

Chief Executive Officer

16 February 2026

![IHG_Signature_Michael_Glover_v3.jpg](ihg-20251231_g215.jpg)

Michael Glover

Chief Financial Officer

16 February 2026

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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 167 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 171 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 173 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

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Independent Auditor's US Report<br>

**Report of Independent Registered Public** 

**Accounting Firm**

To the Board of Directors and

Shareholders of InterContinental

Hotels Group PLC

**Opinions on the Financial** 

**Statements and Internal Control** 

**over Financial Reporting**

We have audited the accompanying

Group statements of financial position

of InterContinental Hotels Group PLC

and its subsidiaries (the "Group") as of

31 December 2025 and 2024, and the

related Group income statements and

Group statements of comprehensive

income, changes in equity and cash flows

for each of the three years in the period

ended 31 December 2025, including the

accounting policies, the related notes and

Schedule 1: condensed parent company

financial information, as of 31 December

2025 and 2024 and for each of the three

years in the period ended 31 December

2025, appearing on pages 288 to 291

(collectively referred to as the "Financial

Statements"). We also have audited the

Group's internal control over financial

reporting as of 31 December 2025, based

on criteria established in Internal Control –

Integrated Framework (2013) issued by the

Committee of Sponsoring Organizations

of the Treadway Commission (COSO).

In our opinion, the Financial Statements

referred to above present fairly, in all

material respects, the financial position

of the Group as of 31 December 2025

and 2024, and the results of its operations

and its cash flows for each of the three

years in the period ended 31 December

2025 in conformity with IFRS Accounting

Standards as issued by the International

Accounting Standards Board and

UK-adopted International Accounting

Standards. Also in our opinion, the Group

maintained, in all material respects,

effective internal control over financial

reporting as of 31 December 2025,

based on criteria established in Internal

Control – Integrated Framework (2013)

issued by the COSO.

**Basis for Opinions**

The Group's management is responsible

for these Financial Statements, for

maintaining effective internal control

over financial reporting, and for its

assessment of the effectiveness of

internal control over financial reporting,

included in Management's report on

internal control over financial reporting

on page 165. Our responsibility is to

express opinions on the Financial

Statements and on the Group's internal

control over financial reporting based on

our audits. We are a public accounting

firm registered with the Public Company

Accounting Oversight Board (United

States) (PCAOB) and are required to be

independent with respect to the Group

in accordance with the U.S. federal

securities laws and the applicable rules

and regulations of the Securities and

Exchange Commission and the PCAOB.

We conducted our audits in accordance

with the standards of the PCAOB.

Those standards require that we plan

and perform the audits to obtain

reasonable assurance about whether

the Financial Statements are free of

material misstatement, whether due

to error or fraud, and whether effective

internal control over financial reporting

was maintained in all material respects.

Our audits of the Financial Statements

included performing procedures to

assess the risks of material misstatement

of the Financial Statements, whether

due to error or fraud, and performing

procedures that respond to those risks.

Such procedures included examining,

on a test basis, evidence regarding the

amounts and disclosures in the Financial

Statements. Our audits also included

evaluating the accounting principles

used and significant estimates made

by management, as well as evaluating

the overall presentation of the

Financial Statements. Our audit of

internal control over financial reporting

included obtaining an understanding

of internal control over financial

reporting, assessing the risk that a

material weakness exists, and testing

and evaluating the design and operating

effectiveness of internal control based

on the assessed risk. Our audits also

included performing such other

procedures as we considered necessary

in the circumstances. We believe that

our audits provide a reasonable basis

for our opinions.

**Definition and Limitations of Internal** 

**Control over Financial Reporting**

A company's internal control over

financial reporting is a process

designed to provide reasonable

assurance regarding the reliability of

financial reporting and the preparation

of financial statements for external

purposes in accordance with generally

accepted accounting principles.

A company's internal control over

financial reporting includes those

policies and procedures that (i) pertain

to the maintenance of records that, in

reasonable detail, accurately and fairly

reflect the transactions and dispositions

of the assets of the company; (ii) provide

reasonable assurance that transactions

are recorded as necessary to permit

preparation of financial statements in

accordance with generally accepted

accounting principles, and that receipts

and expenditures of the company

are being made only in accordance

with authorizations of management

and directors of the company; and

(iii) provide reasonable assurance

regarding prevention or timely detection

of unauthorized acquisition, use, or

disposition of the company's assets

that could have a material effect on

the financial statements.

Because of its inherent limitations,

internal control over financial

reporting may not prevent or detect

misstatements. Also, projections

of any evaluation of effectiveness to

future periods are subject to the risk

that controls may become inadequate

because of changes in conditions,

or that the degree of compliance

with the policies or procedures

may deteriorate.

**Critical Audit Matters**

The critical audit matters communicated

below are matters arising from the current

period audit of the Financial Statements

that were communicated or required

to be communicated to the audit

committee and that (i) relate to accounts

or disclosures that are material to the

Financial Statements and (ii) involved

our especially challenging, subjective, or

complex judgments. The communication

of critical audit matters does not alter

in any way our opinion on the Financial

Statements, taken as a whole, and we

are not, by communicating the critical

audit matters below, providing separate

opinions on the critical audit matters

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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 175 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

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or on the accounts or disclosures to

which they relate.

**Breakage assumption used to** 

**estimate IHG One Rewards loyalty** 

**programme deferred revenue** 

As described in the Estimates section

of the Accounting policies and in

Note 3 to the Financial Statements,

deferred revenue relating to the IHG

One Rewards loyalty programme was

$1,727m as of 31 December 2025. The

loyalty programme, IHG One Rewards,

enables members to earn points during

each qualifying stay at an IHG branded

hotel and through other partnerships

and programmes. Members are able

to consume those points at a later date

for free or reduced accommodation or

other benefits. The Group recognises

deferred revenue in an amount

that reflects the Group's unsatisfied

performance obligations, valued at the

stand-alone selling price of the future

benefit to the member. The amount

of revenue recognised and deferred is

impacted by the estimate of breakage

(points that will never be consumed).

On an annual basis, the Group engages

an external actuary who uses statistical

formulae to assist in the estimate of

breakage. If future member behaviour

deviates significantly from expectations,

breakage estimates could increase

or decrease.

The principal considerations for

our determination that performing

procedures relating to the breakage

assumption used to estimate IHG

One Rewards loyalty programme

deferred revenue is a critical audit

matter are (i) the significant judgement

and estimation by management

when projecting members' future

consumption activity; (ii) a high degree

of auditor judgement, subjectivity and

effort in performing procedures and

evaluating management's breakage

assumption; and (iii) the audit effort

involved the use of professionals

with specialised skill and knowledge.

Addressing the matter involved

performing procedures and evaluating

audit evidence in connection with

forming our overall opinion on the

Financial Statements. These procedures

included testing the effectiveness

of controls relating to management's

determination of the breakage

assumption. These procedures also

included, among others, (i) testing

the completeness and accuracy of the

data used by management's specialist

in deriving the breakage assumption;

(ii) assessing the competence and

objectivity of management's specialist;

(iii) involving professionals with

specialised skill and knowledge to assist

in evaluating the reasonableness of

management's estimate by developing

an independent estimate of a reasonably

possible range for deferred revenue

based on independently determined

breakage assumptions; (iv) comparing

the deferred revenue balance with our

independently calculated range; and

(v) assessing the appropriateness of the

related disclosures including sensitivity

analysis in the Financial Statements.

**Allocation of expenses** 

**to the System Fund**

As described in the System Fund

and other co-brand revenues section

of the Accounting policies and Note 31

to the Financial Statements, System

Fund expenses were $1,763m, as of 31

December 2025. The Group operates

a System Fund (the 'Fund') to collect

and administer cash assessments from

hotel owners for specified purposes of

use including marketing, reservations,

certain hotel services and IHG One

Rewards. The Fund is not managed

to generate a surplus or deficit for IHG

over the longer term, but is managed

for the benefit of the IHG System with

the objective of driving revenues for

the hotels in the System. Services are

provided by the Fund and are funded

by assessment fees. Costs are incurred

and allocated to the Fund in accordance

with the principles agreed with the

IHG Owners Association and ensuring

appropriate consistency of application.

The principal considerations for our

determination that performing procedures

relating to accounting for System Fund

expenses is a critical audit matter are (i)

the significant judgment by management

when developing the Group's internal

policies in order to apply the principles

agreed with the IHG Owners Association

to expenses incurred; and (ii) a high

degree of auditor judgment, subjectivity

and effort in performing procedures

and assessing the consistency of

management's allocation of expenses

to the System Fund in line with the

agreed principles.

Addressing the matter involved

performing procedures and evaluating

audit evidence in connection with

forming our overall opinion on the

Financial Statements. These procedures

included testing the effectiveness

of controls relating to the allocation

of expenses to the System Fund.

These procedures also included,

among others, (i) understanding and

assessing the internal policies that

the Group has put in place in order

to consistently apply the principles

agreed with the IHG Owners Association

to expenses incurred; (ii) testing a

sample of expenses that had been

allocated to the System Fund to assess

whether they were in compliance

with the Group's internal policies and

consistent with historical practice;

and (iii) evaluating the reasonableness

of a sample of journal entries

transferring expenses to the

System Fund.

/s/PricewaterhouseCoopers LLP

Birmingham, United Kingdom

16 February 2026

We have served as the Company's auditor

since 2021.

---

| | | |
|:---|:---|:---|
| 176 | IHG | Annual Report and Form 20-F 2025 |

---

Group income statement<br>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | 2025 | 2024<sup>a</sup> | 2023<sup>a</sup> |
| For the year ended 31 December 2025 | Note | $m | $m | $m |
| Revenue from fee business | 3 | 1897 | 1774 | 1672 |
| Revenue from owned & leased hotels | 3 | 544 | 515 | 471 |
| Revenue from insurance activities | 3, 20 | 27 | 23 | 21 |
| System Fund and reimbursable revenues | 31 | 2721 | 2611 | 2460 |
| Total revenue | 2 | 5189 | 4923 | 4624 |
| Cost of sales |  | (764) | (745) | (742) |
| System Fund and reimbursable expenses | 31 | (2767) | (2694) | (2441) |
| Administrative expenses |  | (354) | (359) | (338) |
| Insurance expenses | 20 | (36) | (29) | (23) |
| Share of profits of associates and joint ventures |  | 6 | 10 | 31 |
| Other operating income |  | 14 | 10 | 21 |
| Depreciation and amortisation | 2 | (67) | (65) | (67) |
| Impairment (loss)/reversal on financial assets |  | (21) | (10) | 1 |
| Other net impairment charges |  | (2) | – | – |
| Operating profit | 2 | 1198 | 1041 | 1066 |
| Operating profit analysed as: |  |  |  |  |
| Operating profit before System Fund, reimbursables and exceptional items |  | 1265 | 1124 | 1019 |
| System Fund and reimbursable result |  | (46) | (83) | 19 |
| Operating exceptional items | 6 | (21) | – | 28 |
|  |  | 1198 | 1041 | 1066 |
| Financial income | 7 | 49 | 63 | 39 |
| Financial expenses | 7 | (202) | (178) | (126) |
| Foreign exchange gains/(losses) |  | 37 | (25) | 35 |
| Remeasurement of contingent purchase consideration |  | (8) | (4) | (4) |
| Profit before tax |  | 1074 | 897 | 1010 |
| Tax | 8 | (315) | (269) | (260) |
| Profit for the year |  | 759 | 628 | 750 |
| Attributable to: |  |  |  |  |
| Equity holders of the parent |  | 758 | 628 | 750 |
| Non-controlling interest |  | 1 | – | – |
|  |  | 759 | 628 | 750 |
| Earnings per ordinary share | 10 |  |  |  |
| Basic |  | 490.9¢ | 389.6¢ | 443.8¢ |
| Diluted |  | 486.5¢ | 385.3¢ | 441.2¢ |

---

**a.**In 2025, foreign exchange gains/(losses) have been presented on a separate line. The 2024 and 2023 amounts were previously presented within

'Financial expenses'.

b. ---

| | |
|:---|:---|
| **+** | Accounting policies and notes on pages [183](#i39206f57a9214006b97933da74f0a7c9_69335) to [240](#ic91c88ca5dce45958d82f6834f4c9050_17920) form an integral part of these Group Financial Statements. |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 177 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Group statement of comprehensive income<br>

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
| For the year ended 31 December 2025 | $m | $m | $m |
| Profit for the year | 759 | 628 | 750 |
| Other comprehensive (loss)/income |  |  |  |
| Items that may be subsequently reclassified to profit or loss: |  |  |  |
| Gains/(losses) on cash flow hedges, including related tax credit of $14m <br>(2024: $11m charge, 2023: $nil)<br>| 140 | (124) | (30) |
| Gains/(losses) on net investment hedges | 35 | (7) | 15 |
| Costs of hedging | 4 | (11) | – |
| Hedging (gains)/losses reclassified to financial expenses | (186) | 165 | 28 |
| Exchange (losses)/gains on retranslation of foreign operations, including related <br>tax charge of $2m (2024: $2m charge, 2023: $4m charge)<br>| (91) | 4 | (137) |
|  | (98) | 27 | (124) |
| Items that will not be reclassified to profit or loss: |  |  |  |
| (Losses)/gains on equity instruments classified as fair value through other <br>comprehensive income, including related tax of $nil (2024: $nil, 2023: $1m charge)<br>| (1) | 2 | (3) |
| Remeasurement gains/(losses) on defined benefit plans | – | 4 | (2) |
|  | (1) | 6 | (5) |
| Total other comprehensive (loss)/income | (99) | 33 | (129) |
| Total comprehensive income | 660 | 661 | 621 |
| Attributable to: |  |  |  |
| Equity holders of the parent | 659 | 661 | 621 |
| Non-controlling interest | 1 | – | – |
|  | 660 | 661 | 621 |

---

---

| | |
|:---|:---|
| **+** | Accounting policies and notes on pages [183](#i39206f57a9214006b97933da74f0a7c9_69335) to [240](#ic91c88ca5dce45958d82f6834f4c9050_17920) form an integral part of these Group Financial Statements. |

---

---

| | | |
|:---|:---|:---|
| 178 | IHG | Annual Report and Form 20-F 2025 |

---

Group statement of changes in equity<br>

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Equity <br>share <br>capital<br>| Capital <br>redemption <br>reserve<br>| Shares <br>held by <br>employee <br>share trusts<br>| Other <br>reserves<br>| Fair <br>value <br>reserve<br>| Cash <br>flow <br>hedge <br>reserves<br>| Currency <br>translation <br>reserve<br>| Retained <br>earnings<br>| IHG <br>share- <br>holders' <br>equity<br>| Non-<br>controlling <br>interest<br>| Total <br>equity<br>|
|  | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m |
| At 1 January 2025 | 137 | 16 | (63) | (2862) | 25 | 28 | 373 | 34 | (2312) | 4 | (2308) |
| Profit for the year | – | – | – | – | – | – | – | 758 | 758 | 1 | 759 |
| Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss |
| Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: |
| Gains on cash <br>flow hedges<br>| – | – | – | – | – | 140 | – | – | 140 | – | 140 |
| Gains on net <br>investment hedges<br>| – | – | – | – | – | – | 35 | – | 35 | – | 35 |
| Costs of hedging | – | – | – | – | – | 4 | – | – | 4 | – | 4 |
| Hedging gains <br>reclassified to <br>financial expenses<br>| – | – | – | – | – | (187) | 1 | – | (186) | – | (186) |
| Exchange losses <br>on retranslation of <br>foreign operations<br>| – | – | – | – | (1) | 1 | (91) | – | (91) | – | (91) |
|  | – | – | – | – | (1) | (42) | (55) | – | (98) | – | (98) |
| Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: |
| Losses on equity <br>instruments classified <br>as fair value through <br>other comprehensive <br>income<br>| – | – | – | – | (1) | – | – | – | (1) | – | (1) |
|  | – | – | – | – | (1) | – | – | – | (1) | – | (1) |
| Total other <br>comprehensive loss <br>for the year<br>| – | – | – | – | (2) | (42) | (55) | – | (99) | – | (99) |
| Total comprehensive <br>income for the year<br>| – | – | – | – | (2) | (42) | (55) | 758 | 659 | 1 | 660 |
| Repurchase of shares, <br>including taxes and <br>transaction costs<br>| (2) | 2 | – | – | – | – | – | (882) | (882) | – | (882) |
| Purchase of own <br>shares by employee <br>share trusts<br>| – | – | (15) | – | – | – | – | – | (15) | – | (15) |
| Transfer of treasury <br>shares to employee <br>share trusts<br>| – | – | (34) | – | – | – | – | 34 | – | – | – |
| Release of own <br>shares by employee <br>share trusts<br>| – | – | 55 | – | – | – | – | (55) | – | – | – |
| Equity-settled share-<br>based cost (note 27)<br>| – | – | – | – | – | – | – | 67 | 67 | – | 67 |
| Tax related to <br>share schemes<br>| – | – | – | – | – | – | – | 9 | 9 | – | 9 |
| Equity dividends paid <br>(note 9)<br>| – | – | – | – | – | – | – | (270) | (270) | – | (270) |
| Exchange and other <br>adjustments<br>| 10 | 1 | (2) | (9) | – | – | – | 3 | 3 | – | 3 |
| At 31 December 2025 | 145 | 19 | (59) | (2871) | 23 | (14) | 318 | (302) | (2741) | 5 | (2736) |

---

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

---

| | |
|:---|:---|
| **+** | Accounting policies and notes on pages [183](#i39206f57a9214006b97933da74f0a7c9_69335) to [240](#ic91c88ca5dce45958d82f6834f4c9050_17920) form an integral part of these Group Financial Statements. |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 179 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Equity <br>share <br>capital<br>| Capital <br>redemption <br>reserve<br>| Shares held <br>by <br>employee <br>share trusts<br>| Other <br>reserves<br>| Fair <br>value <br>reserve<br>| Cash <br>flow <br>hedge <br>reserves<br>| Currency <br>translation <br>reserve<br>| Retained <br>earnings<br>| IHG <br>share- <br>holders' <br>equity<br>| Non-<br>controlling <br>interest<br>| Total <br>equity<br>|
|  | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m |
| At 1 January 2024 | 141 | 14 | (35) | (2863) | 23 | (2) | 376 | 396 | (1950) | 4 | (1946) |
| Profit for the year | – | – | – | – | – | – | – | 628 | 628 | – | 628 |
| Other comprehensive income | Other comprehensive income | Other comprehensive income | Other comprehensive income | Other comprehensive income | Other comprehensive income | Other comprehensive income | Other comprehensive income | Other comprehensive income | Other comprehensive income | Other comprehensive income | Other comprehensive income |
| Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: |
| Losses on cash <br>flow hedges<br>| – | – | – | – | – | (124) | – | – | (124) | – | (124) |
| Losses on net <br>investment hedges<br>| – | – | – | – | – | – | (7) | – | (7) | – | (7) |
| Costs of hedging | – | – | – | – | – | (11) | – | – | (11) | – | (11) |
| Hedging losses <br>reclassified to <br>financial expenses<br>| – | – | – | – | – | 165 | – | – | 165 | – | 165 |
| Exchange gains <br>on retranslation of <br>foreign operations<br>| – | – | – | – | – | – | 4 | – | 4 | – | 4 |
|  | – | – | – | – | – | 30 | (3) | – | 27 | – | 27 |
| Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: |
| Gains on equity <br>instruments classified <br>as fair value through <br>other comprehensive <br>income<br>| – | – | – | – | 2 | – | – | – | 2 | – | 2 |
| Remeasurement <br>gains on defined <br>benefit plans<br>| – | – | – | – | – | – | – | 4 | 4 | – | 4 |
|  | – | – | – | – | 2 | – | – | 4 | 6 | – | 6 |
| Total other <br>comprehensive income <br>for the year<br>| – | – | – | – | 2 | 30 | (3) | 4 | 33 | – | 33 |
| Total comprehensive <br>income for the year<br>| – | – | – | – | 2 | 30 | (3) | 632 | 661 | – | 661 |
| Repurchase of shares, <br>including taxes and <br>transaction costs<br>| (2) | 2 | – | – | – | – | – | (812) | (812) | – | (812) |
| Purchase of own shares <br>by employee share trusts<br>| – | – | (27) | – | – | – | – | – | (27) | – | (27) |
| Transfer of treasury <br>shares to employee <br>share trusts<br>| – | – | (33) | – | – | – | – | 33 | – | – | – |
| Release of own shares <br>by employee share trusts<br>| – | – | 31 | – | – | – | – | (31) | – | – | – |
| Equity-settled share-<br>based cost (note 27)<br>| – | – | – | – | – | – | – | 60 | 60 | – | 60 |
| Tax related to <br>share schemes<br>| – | – | – | – | – | – | – | 15 | 15 | – | 15 |
| Equity dividends paid <br>(note 9)<br>| – | – | – | – | – | – | – | (259) | (259) | – | (259) |
| Exchange adjustments | (2) | – | 1 | 1 | – | – | – | – | – | – | – |
| At 31 December 2024 | 137 | 16 | (63) | (2862) | 25 | 28 | 373 | 34 | (2312) | 4 | (2308) |

---

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

---

| | |
|:---|:---|
| **+** | Accounting policies and notes on pages [183](#i39206f57a9214006b97933da74f0a7c9_69335) to [240](#ic91c88ca5dce45958d82f6834f4c9050_17920) form an integral part of these Group Financial Statements. |

---

---

| | | |
|:---|:---|:---|
| 180 | IHG | Annual Report and Form 20-F 2025 |

---

Group statement of changes in equity continued<br>

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Equity <br>share <br>capital<br>| Capital <br>redemption <br>reserve<br>| Shares held <br>by <br>employee <br>share trusts<br>| Other <br>reserves<br>| Fair <br>value <br>reserve<br>| Cash <br>flow <br>hedge <br>reserves<br>| Currency <br>translation <br>reserve<br>| Retained <br>earnings<br>| IHG <br>share- <br>holders' <br>equity<br>| Non-<br>controlling <br>interest<br>| Total<br>equity<br>|
|  | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m |
| At 1 January 2023 | 137 | 10 | (37) | (2856) | 26 |  | 498 | 607 | (1615) | 7 | (1608) |
| Profit for the year | – | – | – | – | – | – | – | 750 | 750 | – | 750 |
| Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss | Other comprehensive loss |
| Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: | Items that may be subsequently reclassified to profit or loss: |
| Losses on cash <br>flow hedges<br>| – | – | – | – | – | (30) | – | – | (30) | – | (30) |
| Gains on net <br>investment hedges<br>| – | – | – | – | – | – | 15 | – | 15 | – | 15 |
| Costs of hedging | – | – | – | – | – | – | – | – | – | – | – |
| Hedging losses <br>reclassified to <br>financial expenses<br>| – | – | – | – | – | 28 | – | – | 28 | – | 28 |
| Exchange losses <br>on retranslation of <br>foreign operations<br>| – | – | – | – | – | – | (137) | – | (137) | – | (137) |
|  | – | – | – | – | – | (2) | (122) | – | (124) | – | (124) |
| Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: | Items that will not be reclassified to profit or loss: |
| Losses on equity <br>instruments classified <br>as fair value through <br>other comprehensive <br>income<br>| – | – | – | – | (3) | – | – | – | (3) | – | (3) |
| Remeasurement <br>losses on defined <br>benefit plans<br>| – | – | – | – | – | – | – | (2) | (2) | – | (2) |
|  | – | – | – | – | (3) | – | – | (2) | (5) | – | (5) |
| Total other <br>comprehensive loss <br>for the year<br>| – | – | – | – | (3) | (2) | (122) | (2) | (129) | – | (129) |
| Total comprehensive <br>income for the year<br>| – | – | – | – | (3) | (2) | (122) | 748 | 621 | – | 621 |
| Repurchase of shares, <br>including taxes and <br>transaction costs<br>| (3) | 3 | – | – | – | – | – | (765) | (765) | – | (765) |
| Purchase of own shares <br>by employee share trusts<br>| – | – | (8) | – | – | – | – | – | (8) | – | (8) |
| Transfer of treasury <br>shares to employee <br>share trusts<br>| – | – | (21) | – | – | – | – | 21 | – | – | – |
| Release of own shares <br>by employee share trusts<br>| – | – | 32 | – | – | – | – | (32) | – | – | – |
| Equity-settled share-<br>based cost (note 27)<br>| – | – | – | – | – | – | – | 51 | 51 | – | 51 |
| Tax related to <br>share schemes<br>| – | – | – | – | – | – | – | 11 | 11 | – | 11 |
| Equity dividends paid <br>(note 9)<br>| – | – | – | – | – | – | – | (245) | (245) | (3) | (248) |
| Exchange adjustments | 7 | 1 | (1) | (7) | – | – | – | – | – | – | – |
| At 31 December 2023 | 141 | 14 | (35) | (2863) | 23 | (2) | 376 | 396 | (1950) | 4 | (1946) |

---

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

---

| | |
|:---|:---|
| **+** | Accounting policies and notes on pages [183](#i39206f57a9214006b97933da74f0a7c9_69335) to [240](#ic91c88ca5dce45958d82f6834f4c9050_17920) form an integral part of these Group Financial Statements. |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 181 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Group statement of financial position<br>

---

| | | | |
|:---|:---|:---|:---|
|  |  | 2025 | 2024 |
| 31 December 2025 | Note | $m | $m |
| ASSETS |  |  |  |
| Goodwill and other intangible assets | 11 | 1155 | 1042 |
| Property, plant and equipment | 12 | 148 | 146 |
| Right-of-use assets | 13 | 269 | 276 |
| Investment in associates and joint ventures | 14 | 55 | 51 |
| Retirement benefit assets | 26 | 3 | 3 |
| Other financial assets | 15 | 211 | 212 |
| Derivative financial instruments | 23 | 120 | 4 |
| Deferred compensation plan investments |  | 316 | 286 |
| Non-current other receivables | 16 | 19 | 35 |
| Deferred tax assets | 8 | 146 | 122 |
| Contract costs | 3 | 103 | 90 |
| Contract assets | 3 | 751 | 612 |
| Total non-current assets |  | 3296 | 2879 |
| Inventories |  | 5 | 4 |
| Trade and other receivables | 16 | 833 | 785 |
| Current tax receivable |  | 27 | 22 |
| Other financial assets | 15 | 3 | 7 |
| Cash and cash equivalents | 17 | 1129 | 1008 |
| Contract costs | 3 | 5 | 5 |
| Contract assets | 3 | 47 | 38 |
| Total current assets |  | 2049 | 1869 |
| Total assets |  | 5345 | 4748 |
| LIABILITIES |  |  |  |
| Loans and other borrowings | 21 | (478) | (398) |
| Lease liabilities | 13 | (28) | (26) |
| Trade and other payables | 18 | (676) | (650) |
| Deferred revenue | 3 | (829) | (766) |
| Provisions | 19 | (21) | (22) |
| Insurance liabilities | 20 | (16) | (14) |
| Tax payable |  | (52) | (52) |
| Total current liabilities |  | (2100) | (1928) |
| Loans and other borrowings | 21 | (3723) | (2876) |
| Lease liabilities | 13 | (378) | (388) |
| Derivative financial instruments | 23 | (12) | (78) |
| Retirement benefit obligations | 26 | (69) | (68) |
| Deferred compensation plan liabilities |  | (316) | (286) |
| Trade and other payables | 18 | (69) | (78) |
| Deferred revenue | 3 | (1340) | (1294) |
| Provisions | 19 | (22) | (17) |
| Insurance liabilities | 20 | (29) | (25) |
| Deferred tax liabilities | 8 | (17) | (18) |
| Tax payable |  | (6) | – |
| Total non-current liabilities |  | (5981) | (5128) |
| Total liabilities |  | (8081) | (7056) |
| Net liabilities |  | (2736) | (2308) |
| EQUITY |  |  |  |
| IHG shareholders' equity |  | (2741) | (2312) |
| Non-controlling interest |  | 5 | 4 |
| Total equity |  | (2736) | (2308) |

---

The Group Financial Statements were approved by the Board on 16 February 2026 and were signed on its behalf by

Michael Glover.

Michael Glover

16 February 2026

---

| | |
|:---|:---|
| **+** | Accounting policies and notes on pages [183](#i39206f57a9214006b97933da74f0a7c9_69335) to [240](#ic91c88ca5dce45958d82f6834f4c9050_17920) form an integral part of these Group Financial Statements. |

---

---

| | | |
|:---|:---|:---|
| 182 | IHG | Annual Report and Form 20-F 2025 |

---

Group statement of cash flows<br>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | 2025 | 2024 | 2023 |
| For the year ended 31 December 2025 | Note | $m | $m | $m |
| Profit for the year |  | 759 | 628 | 750 |
| Adjustments reconciling profit for the year to cash flow from operations | 25 | 602 | 521 | 469 |
| Cash flow from operations |  | 1361 | 1149 | 1219 |
| Interest paid |  | (202) | (170) | (119) |
| Interest received |  | 46 | 57 | 36 |
| Deferred purchase consideration paid | 24 | – | (3) | – |
| Tax paid | 8 | (307) | (309) | (243) |
| Net cash from operating activities |  | 898 | 724 | 893 |
| Cash flow from investing activities |  |  |  |  |
| Purchase of property, plant and equipment |  | (28) | (29) | (28) |
| Purchase of brands |  | (120) | – | – |
| Purchase of other intangible assets |  | (49) | (49) | (54) |
| Investment in associates and joint ventures |  | (11) | (6) | (3) |
| Investment in other financial assets |  | (3) | (32) | (60) |
| Deferred purchase consideration paid | 24 | – | (10) | – |
| Disposal of property, plant and equipment |  | – | 9 | – |
| Repayments of other financial assets |  | 14 | 11 | 8 |
| Finance lease receipts |  | 4 | 4 | – |
| Other investing cash flows |  | 3 | 3 | – |
| Net cash from investing activities |  | (190) | (99) | (137) |
| Cash flow from financing activities |  |  |  |  |
| Repurchase of shares, including taxes and transaction costs | 28 | (897) | (804) | (790) |
| Purchase of own shares by employee share trusts |  | (10) | (27) | (8) |
| Dividends paid to shareholders | 9 | (270) | (259) | (245) |
| Dividend paid to non-controlling interest |  | – | – | (3) |
| Issue of long-term bonds, including effect of currency swaps | 22 | 990 | 834 | 657 |
| Repayment of long-term bonds | 22 | (403) | (547) | – |
| Settlement of currency swaps | 22 | – | (45) | – |
| Drawdown of Revolving Credit Facility | 22 | 75 | – | – |
| Repayment of Revolving Credit Facility | 22 | (75) | – | – |
| Principal element of lease payments | 22 | (30) | (46) | (28) |
| Other financing cash flows |  | 6 | – | – |
| Net cash from financing activities |  | (614) | (894) | (417) |
| Net movement in cash and cash equivalents in the year |  | 94 | (269) | 339 |
| Cash and cash equivalents at beginning of the year | 17 | 991 | 1278 | 921 |
| Exchange rate effects |  | 41 | (18) | 18 |
| Cash and cash equivalents at end of the year | 17 | 1126 | 991 | 1278 |

---

---

| | |
|:---|:---|
| **+** | Accounting policies and notes on pages [183](#i39206f57a9214006b97933da74f0a7c9_69335) to [240](#ic91c88ca5dce45958d82f6834f4c9050_17920) form an integral part of these Group Financial Statements. |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 183 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Accounting policies<br>

**General information**

The Consolidated Financial Statements

of InterContinental Hotels Group PLC

(the 'Group' or 'IHG') for the year ended

31 December 2025 were authorised

for issue in accordance with a resolution

of the Directors on 16 February 2026.

InterContinental Hotels Group PLC

(the 'Company') is incorporated and

registered in England and Wales.

**Basis of preparation**

The Consolidated Financial Statements

of IHG have been prepared on a going

concern basis (see below) and under

the historical cost convention, except

for assets and liabilities measured at

fair value under relevant accounting

standards. The Consolidated Financial

Statements have been prepared in

accordance with UK-adopted

international accounting standards and

with applicable law and regulations,

including the Companies Act 2006, and

with IFRS Accounting Standards as issued

by the International Accounting

Standards Board. UK-adopted

international accounting standards differ

in certain respects from IFRS Accounting

Standards as issued by the International

Accounting Standards Board. However,

the differences have no impact on the

Consolidated Financial Statements for

the years presented.

**Going concern**

The period to 30 June 2027 has been

used to complete the going concern

assessment.

In adopting the going concern basis

for preparing the Group financial

statements, the Directors have

considered a 'Base Case' scenario,

as prepared by management, which

assumes Global RevPAR in 2026 and

2027 continues to grow in line with

market expectations. The assumptions

applied in the Base Case scenario are

consistent with those used for Group

planning purposes, impairment testing

and for assessing recoverability of

deferred tax assets.

In addition, the Directors have reviewed

a 'Severe Downside Case' reflecting a

severe but plausible scenario equivalent

to the market conditions experienced

during the 2008/2009 global financial

crisis, in which RevPAR declines by 17%

in 2026 before recovering by 5% in 2027.

A 'Combined Scenario' has also been

considered, modelling the Severe

Downside Case in conjunction with

a significant cash flow impact from a

one-off event, such as a cybersecurity

incident.

Principal risks that could materially

affect RevPAR are captured within the

Severe Downside Case, while other

risks with the potential to cause a

substantial one-off impact on cash flow –

such as a cybersecurity event – are

addressed in the Combined Scenario.

Climate risks are not considered to

have a significant impact over the

period of assessment.

The Group enters the assessment period

with substantial liquidity at 31 December

2025 of $2,599m, comprising $1,099m

of cash and cash equivalents (net of

overdrafts and restricted cash) and

$1,500m of undrawn bank facility.

The Group's revolving credit facility

was refinanced in December 2025 with

a new $1,500m facility that matures

in 2030. There are no financial covenants

in the new facility. See note 23 for

additional information. In September

2025 the Group issued a €850m bond.

There are two bond maturities in the

period under consideration, £350m in

August 2026 and €500m in May 2027.

No new funding is assumed in the

period under review.

Under the Base Case and Severe

Downside Case there is significant

liquidity available to absorb multiple

additional risks and uncertainties. Under

the Combined Scenario there is a lower

level of liquidity, however, the Directors

also reviewed a number of actions that

could be taken, if required, to reduce

discretionary spend, creating substantial

additional liquidity.

The Directors reviewed a reverse

stress test scenario to determine what

other events could create a scenario

which would exhaust the liquidity in

the Combined Scenario. The Directors

concluded that it was very unlikely

that a single risk or combination of

the risks considered could create

the sustained impact required.

Having reviewed these scenarios, the

Directors have a reasonable expectation

that the Group has sufficient resources

to continue operating until at least

30 June 2027. Accordingly, they continue

to adopt the going concern basis in

preparing the financial statements.

**Presentational currency**

The Consolidated Financial Statements

are presented in millions of US dollars

reflecting the profile of the Group's

revenue and operating profit which are

primarily generated in US dollars or

US dollar-linked currencies.

In the Consolidated Financial Statements,

equity share capital, the capital

redemption reserve and shares held

by employee share trusts are translated

into US dollars at the relevant rate of

exchange on the last day of the period;

the resultant exchange differences are

recorded in other reserves.

The functional currency of the Company

is sterling.

**Critical accounting policies and** 

**the use of judgements, estimates** 

**and assumptions**

In determining and applying the Group's

accounting policies, management are

required to make judgements, estimates

and assumptions. An accounting policy

is considered to be critical if its selection

or application could materially affect the

reported amounts of assets and liabilities

at the date of the Consolidated Financial

Statements, or the reported amounts

of revenues and expenses during the

reporting period, or could do so within

the next financial year.

---

| | | |
|:---|:---|:---|
| 184 | IHG | Annual Report and Form 20-F 2025 |

---

Accounting policies continued<br>

**Judgements**

System Fund

The Group operates a System Fund

(the 'Fund') to collect and administer

cash assessments from hotel owners

for specified purposes of use including

marketing, reservations, certain

hotel services and the Group's loyalty

programme, IHG One Rewards.

Assessments are generally levied as

a percentage of hotel revenues but

may also be volume-based or fixed

monthly fees.

The Fund is not managed to generate

a surplus or deficit for IHG over the

longer term, but is managed for

the benefit of the IHG System with

the objective of driving revenues

for the hotels in the System.

In relation to marketing and reservation

services, the Group's performance

obligation under IFRS 15 'Revenue

from Contracts with Customers'

is determined to be the continuous

performance of the services rather

than the spending of the assessments

received. Accordingly, assessment fees

are recognised as hotel revenues occur,

Fund expenses are charged to the Group

income statement as incurred and no

constructive obligation is deemed to exist

under IAS 37 'Provisions, Contingent

Liabilities and Contingent Assets'.

Accordingly, no liability is recognised

relating to the balance of unspent funds.

No other critical judgements have

been made in applying the Group's

accounting policies.

**Estimates**

Management consider that significant

estimates and assumptions are

used as described below. Estimates

and assumptions are evaluated

by management using historical

experience and other factors believed

to be reasonable based on current

circumstances.

Loyalty programme

The loyalty programme, IHG One

Rewards, enables members to earn

points during each qualifying stay at

an IHG branded hotel and through

other partnerships and programmes.

Members are able to consume those

points at a later date for free or reduced

accommodation or other benefits.

Points revenue includes hotel

assessments, revenue from third-party

partners and proceeds from points

purchased directly by members.

The Group recognises deferred

revenue in an amount that reflects IHG's

unsatisfied performance obligations,

valued at the stand-alone selling price

of the future benefit to the member.

The amount of revenue recognised

and deferred is impacted by

'breakage' (points that will never be

consumed). On an annual basis the

Group engages an external actuary

who uses statistical formulae to

assist in the estimate of breakage.

Significant estimation uncertainty

exists in projecting members' future

consumption activity. If future member

behaviour deviates significantly from

expectations, breakage estimates

could increase or decrease.

At 31 December 2025, deferred revenue

relating to the loyalty programme

was $1,727m (2024: $1,653m, 2023:

$1,529m). Based on the conditions

existing at the balance sheet date, a

one percentage point decrease/increase

in the breakage estimate relating to

earned points would increase/reduce

the deferred revenue liability by $100m

and would correspondingly impact the

value of System Fund and reimbursable

revenues recognised.

**Material accounting policies**

**Basis of consolidation**

The Consolidated Financial Statements

comprise the financial statements of the

Parent Company and entities controlled

by the Group. Control exists when the

Group has:

–power over an investee (i.e., existing

rights that give it the current ability

to direct the relevant activities of

the investee);

–exposure, or rights, to variable

returns from its involvement with

the investee; and

–the ability to use its power over

the investee to affect its returns.

All intra-group balances and transactions

are eliminated on consolidation.

The assets, liabilities and results of those

businesses acquired or disposed of are

consolidated for the period during which

they were under the Group's control.

**Foreign currencies**

Within the Group's subsidiaries,

transactions in foreign currencies are

translated to the subsidiary's functional

currency at the exchange rates ruling

on the dates of the transactions.

Monetary assets and liabilities

denominated in foreign currencies

are retranslated to the subsidiary's

functional currency at the relevant rates

of exchange ruling on the last day of

the period. On consolidation:

–The assets and liabilities of foreign

operations of the Group's subsidiaries

with a functional currency other

than US dollars are translated into

US dollars at the relevant rates of

exchange ruling on the last day of the

period. The revenues and expenses

of foreign operations are translated

into US dollars at average rates

of exchange for each month of the

reporting period. The Group treats

specific intercompany loan balances,

which are not intended to be repaid

in the foreseeable future, as part

of its net investment. The exchange

differences arising on retranslation

are taken to the currency translation

reserve; and

–Exchange differences arising from

the translation of instruments that

are designated as a hedge against a

net investment in a foreign operation

are taken to the currency translation

reserve.

On disposal of a foreign operation,

the cumulative amount recognised in

the currency translation reserve relating

to that particular foreign operation is

recycled as part of the gain or loss

on disposal.

**Revenue recognition**

Revenue is recognised at an amount

that reflects the consideration to which

the Group expects to be entitled in

exchange for transferring goods or

services to a customer.

Fee business revenue

Under franchise agreements, the Group's

performance obligation is to provide a

licence to use IHG's trademarks and other

intellectual property. Franchise royalty

fees are typically charged as a percentage

of hotel gross rooms revenues and are

treated as variable consideration,

recognised as the underlying hotel

revenues occur.

Under management agreements,

the Group's performance obligation is

to provide hotel management services

and a licence to use IHG's trademarks

and other intellectual property. Base and

incentive management fees are typically

charged. Base management fees are

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 185 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

typically a percentage of total hotel

revenues and incentive management

fees are generally based on the hotel's

profitability or cash flows. Both are

treated as variable consideration. Like

franchise fees, base management fees

are recognised as the underlying hotel

revenues occur. Incentive management

fees are recognised over time when it

is considered highly probable that the

related performance criteria for each

annual period will be met, provided

there is no expectation of a subsequent

reversal of the revenue.

Application and re-licensing fees are

not considered to be distinct from the

franchise performance obligation and

are recognised over the life of the

related agreement.

Under franchise and management

agreements, the Group agrees to

maintain and develop certain aspects

of the technology ecosystem benefitting

hotels, in exchange for a monthly

technology fee based on either gross

rooms revenues or the number of rooms

in the hotel. The technology fee is

charged and recognised over time

as these services are delivered.

Technology fee income is included

in Central revenue.

Technical service fees are received

in relation to design and engineering

support provided prior to the opening

of certain hotel properties. These

services are a distinct performance

obligation and the fees are recognised

as revenue over the pre-opening period

in line with the Group's assessment of

the stage of completion of the project,

based on the latest expectation of hotel

opening date and its knowledge and

experience of the pattern of work

performed on comparable projects.

The Group has applied the practical

expedient in IFRS 15 not to disclose the

aggregate amount of the transaction

price allocated to performance

obligations that are unsatisfied or

partially unsatisfied as at the end of

the reporting period. This is for all

amounts where the Group has a right

to consideration in an amount that

corresponds directly with the value to the

customer of the Group's performance

completed to date (including franchise

and management fees).

Contract assets

Amounts paid to hotel owners to

secure management and franchise

agreements ('key money') are treated

as consideration payable to a customer.

A contract asset is recorded which is

recognised as a deduction to revenue

over the initial term of the agreement.

In limited cases, loans can be provided

to an owner, in such cases the initial

credit risk will be low. The difference,

if any, between the face and market

value of the loan on inception is

recognised as a contract asset.

In limited cases, the Group may provide

performance guarantees to hotel owners.

The expected value of payments under

performance guarantees reduces

the overall transaction price and is

recognised as a deduction to revenue

over the term of the agreement.

Typically, contract assets are not financial

assets as they represent amounts paid by

the Group at the beginning of a contract,

and so are tested for impairment based

on value in use rather than with reference

to expected credit losses. Contract assets

are reviewed for impairment when events

or changes in circumstances indicate

that the carrying value may not be

recoverable. If carrying values exceed

the recoverable amount, determined

by reference to estimated future cash

flows discounted to their present

value using a pre-tax discount rate,

the contract assets are written down

to the recoverable amount.

Deferred revenue

Deferred revenue is recognised when

payment is received before the related

performance obligation is satisfied.

Revenue is also deferred when key

money is committed and is highly likely

to be paid. The annual revenue deferral

is equal to the reduction to revenue

that would arise if the key money were

paid at inception of the contract. When

payment is made, a net contract asset

is recorded which is amortised over the

remaining initial term of the agreement.

Contract costs

Certain costs incurred to secure

management and franchise agreements,

typically developer commissions, are

capitalised and amortised as an expense

over the initial term of the related

agreement. These costs are presented

as contract costs in the Group statement

of financial position.

Contract costs are reviewed for

impairment when events or changes in

circumstances indicate that the carrying

value may not be recoverable with

reference to the future expected cash

flows from the contract.

Revenue from owned & leased hotels

At its owned & leased hotels, the Group's

performance obligation is to provide

accommodation and other goods and

services to guests. Revenue includes

rooms revenue and food and beverage

sales, which are recognised when the

rooms are occupied and food and

beverages are sold. Guest deposits

received in advance of hotel stays are

recorded as deferred revenue in the

Group statement of financial position.

They are recognised as revenue along

with any balancing payment from the

guest when the associated stay occurs.

System Fund and

reimbursable revenues

System Fund and other co-brand revenues

The Group operates the Fund to collect

and administer cash assessments from

hotel owners for specified purposes of

use including marketing, reservations,

certain hotel services and IHG One

Rewards. The Fund also benefits from

certain proceeds from the sale of loyalty

points under third-party co-branding

arrangements and the sale of points

directly to members and other third

parties. The Fund is not managed to

generate a surplus or deficit for IHG

over the longer term, but is managed

for the benefit of the IHG System with

the objective of driving revenues for

the hotels in the System.

The growth in the IHG One Rewards

programme means that, although

assessments are received from hotels

up front when a member earns points,

more revenue is deferred each year

than is recognised in the Fund. This

can lead to accounting losses in

the Fund each year as the deferred

revenue balance grows.

Under both franchise and management

agreements, the Group is required

to provide marketing and reservations

services, as well as other centrally

managed programmes. These services

are provided by the Fund and are

funded by assessment fees. Costs are

incurred and allocated to the Fund in

accordance with the principles agreed

with the IHG Owners Association

and ensuring appropriate consistency

of application.

---

| | | |
|:---|:---|:---|
| 186 | IHG | Annual Report and Form 20-F 2025 |

---

Accounting policies continued<br>

The Group acts as principal in the

provision of most services as the related

expenses primarily comprise payroll and

marketing expenses under contracts

entered into by the Group. Assessment

fees from hotel owners are generally

levied as a percentage of hotel revenues,

but may also be volume-based or fixed

monthly fees, and are recognised at

the point the Group is entitled to

raise the invoice.

Certain travel agency commission

and other revenues within the Fund

are recognised on a net basis, where

it has been determined that IHG is

acting as agent.

In respect of IHG One Rewards, the

performance obligations are to arrange

for the provision of future benefits to

members on consumption of previously

earned reward points and Milestone

Rewards. Points are exchanged for

reward nights at an IHG hotel or other

goods or services provided by third

parties. Milestone Rewards comprise

points or other benefits such as

upgrades and food and beverage

vouchers.

Under its franchise and management

agreements, IHG receives assessment

fees based on total qualifying hotel

revenue from IHG One Rewards

members' hotel stays.

The Group's performance obligation

is not satisfied in full until the member

has consumed the relevant benefits.

Accordingly, loyalty assessments are

allocated between points and Milestone

Rewards and deferred in an amount that

reflects the stand-alone selling price of

the future benefit to the member.

From 1 January 2024, as agreed with

the IHG Owners Association, a portion

of revenue relating to the consumption

of certain points sold is reported within

fee business revenue, with the remaining

amount reported within System Fund

and reimbursable revenues. Revenue

relating to points earned at hotels

continues to be reported within System

Fund and reimbursable revenues.

Revenue is impacted by a 'breakage'

estimate of the benefits that will never

be consumed. On an annual basis,

the Group engages an external actuary

who uses statistical formulae to assist

in formulating this estimate, which is

adjusted to reflect actual experience

up to the reporting date.

As materially all of the awards will be

either consumed at IHG managed or

franchised hotels owned by third parties,

or exchanged for awards provided by

third parties, IHG is deemed to be acting

as agent on consumption and therefore

recognises the related revenue net

of the cost of reimbursing the hotel or

third party that is providing the benefit.

Performance obligations under the

Group's co-brand credit card

agreements comprise:

a) Arranging for the provision of

future benefits to members who

have earned points or free night

certificates;

b) Providing the co-brand partners

with access to our loyalty

programme and customer base,

and rights to use our brands; and

c) Marketing services.

Revenue from a) is reported within

System Fund and reimbursable revenues

and revenue from b) is reported within

fee business revenue. Revenue from c) is

recognised in either fee business revenue

or System Fund and reimbursable

revenues depending on the nature of

marketing services performed.

Fees from these agreements comprise

fixed amounts normally payable at the

beginning of the contract, and variable

amounts paid on a monthly basis.

Variable amounts are typically based

on the number of points and free night

certificates issued to members and

the marketing services performed

by the Group. Total fees are allocated

to the performance obligations based

on their estimated stand-alone selling

prices. Revenue allocated to marketing

and licensing obligations is recognised

on a monthly basis as the obligations

are satisfied. Revenue relating to points

and free night certificates is recognised

when the member has consumed the

points or certificates at a participating

hotel or has selected a reward from a

third party, net of the cost of reimbursing

the hotel or third party that is providing

the benefit.

Judgement is required in estimating

the stand-alone selling prices which

are based upon generally accepted

valuation methodologies regarding

the value of the licence provided and

the number of points and certificates

expected to be issued. However,

the value of revenue recognised and

the deferred revenue balance at the

end of the year is not materially sensitive

to changes in these assumptions.

Reimbursable revenues

In a managed property, the Group typically

acts as employer of the general manager

and, in some cases, other employees at

the hotel and is entitled to reimbursement

of these costs. The performance

obligation is satisfied over time as the

employees perform their duties, consistent

with when reimbursement is received.

Reimbursements for these services are

shown as revenue with an equal matching

employee cost, with no profit impact.

Certain other costs relating to both

managed and franchised hotels are also

contractually reimbursable to IHG and,

where IHG is deemed to be acting as

principal in the provision of the related

services, the revenue and cost are

shown on a gross basis.

**Segmental information**

The Group has four reportable segments

reflecting its geographical regions

(Americas, EMEAA, Greater China)

and its Central functions.

Central functions include technology,

sales and marketing, finance, human

resources, corporate services and

insurance results. Central revenue arises

principally from technology fee income

and ancillary revenues including co-

brand licensing fees and, from 2024,

a portion of revenue from the

consumption of certain IHG One

Rewards points.

No operating segments are aggregated

to form these reportable segments.

Management monitors the operating

results of these reportable segments for

the purpose of making decisions about

resource allocation and performance

assessment. Each of the geographical

regions is led by its own Chief Executive

Officer who reports to the Group Chief

Executive Officer.

The System Fund is not managed to

generate a profit or loss for IHG over the

longer term and cost reimbursements

do not impact in-year profit or loss.

System Fund and reimbursable revenues

and results are therefore not regularly

reviewed by the Chief Operating Decision

Maker ('CODM') and do not constitute

an operating segment under IFRS 8

'Operating Segments'.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 187 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Segmental performance is evaluated

based on operating profit or loss and is

measured consistently with operating

profit or loss in the Group Financial

Statements, excluding System

Fund, reimbursables and exceptional

items. Group financing activities,

remeasurement of contingent purchase

consideration and income taxes are

managed on a Group basis and are

not allocated to reportable segments.

**Financial income and expenses**

Financial income and expenses include

income and charges on the Group's

financial assets and liabilities and related

hedging instruments.

Finance charges relating to bank and

other borrowings, including transaction

costs and any discount or premium

on issue, are recognised in the Group

income statement using the effective

interest rate method.

In the Group statement of cash flows,

interest paid and received is presented

within cash from operating activities,

including any fees and discounts on

issuance or settlement of borrowings.

**Exceptional items**

The Group discloses certain financial

information both including and

excluding exceptional items. The

presentation of information excluding

exceptional items allows a better

understanding of the underlying trading

performance and trends of the Group

and provides consistency with the

Group's internal management reporting.

All exceptional items are subject to

review by the Audit Committee.

Operating exceptional items

Operating exceptional items includes

gains and losses within Operating profit

before System Fund and reimbursable

result that are identified as exceptional by

virtue of their size, nature or incidence.

Examples of operating exceptional

items include, but are not restricted to,

gains and losses on the disposal

of assets, impairment charges and

reversals, the costs of individually

significant legal cases or commercial

disputes and reorganisation costs.

Consideration is given to consistency

of treatment with prior years and

between gains and losses.

Tax exceptional items

Tax exceptional items includes the

tax effects of operating exceptional

items and, where applicable, other tax

items that are identified as exceptional by

virtue of their size, nature or incidence.

Examples include, but are not restricted

to, significant tax items relating to

legislative changes and transactions

with an insignificant impact on pre-tax

profit and loss.

**Earnings per share**

Basic earnings per ordinary share

is calculated by dividing the profit for

the year available for IHG equity holders

by the weighted average number of

ordinary shares, excluding investment

in own shares, in issue during the year.

Diluted earnings per ordinary share is

calculated by adjusting basic earnings

per ordinary share to reflect the notional

exercise of the weighted average

number of dilutive ordinary share awards

outstanding during the year. Where

the effect of the notional exercise of

outstanding ordinary share awards is

anti-dilutive, these are excluded from

the diluted earnings per share calculation.

**Business combinations and goodwill**

On the acquisition of a business,

identifiable assets acquired and liabilities

assumed are measured at their fair

value. Contingent liabilities assumed

are measured at fair value unless this

cannot be measured reliably, in which

case they are not recognised but are

disclosed in the same manner as

other contingent liabilities.

The measurement of deferred tax assets

and liabilities arising on acquisition is

as described in the general principles

detailed within the 'Taxes' accounting

policy note on page [191](#i39206f57a9214006b97933da74f0a7c9_69383) with the

exception that no deferred tax is provided

on taxable temporary differences in

connection with the initial recognition

of goodwill.

The cost of an acquisition is measured

as the aggregate of the fair value of

the consideration transferred.

Goodwill is recorded at cost, being

the difference between the fair value

of the consideration and the fair value

of net assets acquired. Following initial

recognition, goodwill is measured at

cost less any accumulated impairment

losses and is not amortised.

Transaction costs are expensed and are

not included in the cost of acquisition.

**Intangible assets**

Brands

Externally acquired brands are initially

recorded at cost if separately acquired

or fair value if acquired as part of

a business combination, provided

the brands are controlled through

contractual or other legal rights, or are

separable from the rest of the business.

Cost includes the fair value of

contingent purchase consideration

at the acquisition date.

The costs of developing internally

generated brands are expensed

as incurred.

Management agreements

Management agreements acquired

as part of a business combination

are initially recognised at the fair

value attributed to those contracts

on acquisition and are subsequently

amortised on a straight-line basis

over the term of the agreements,

including any extension periods at

the Group's option.

Software

Internally generated software development

costs are capitalised when all of the

following can be demonstrated:

–The ability and intention to complete

the project;

–That the completed software will

generate probable future economic

benefits;

–The availability of adequate technical,

financial and other resources to

complete the project; and

–The ability to measure the expenditure.

Amounts capitalised typically include

internal and third-party labour and

consultancy costs. Costs incurred

before the above criteria are satisfied

in the research phase are expensed.

In addition, configuration and

customisation costs relating to cloud

computing arrangements are expensed.

Following initial recognition, the asset

is carried at cost less any accumulated

amortisation and impairment losses.

Costs are generally amortised over

estimated useful lives of three to five

years on a straight-line basis with the

exception of the Guest Reservation

System, which is amortised over

seven to 10 years (see page [209](#ic5e4c81a74e147e4966b83e18a1b5ec2_3273)).

---

| | | |
|:---|:---|:---|
| 188 | IHG | Annual Report and Form 20-F 2025 |

---

Accounting policies continued<br>

**Property, plant and equipment**

Property, plant and equipment are

stated at cost less depreciation and

any accumulated impairment.

Repairs and maintenance costs are

expensed as incurred.

Land is not depreciated. All other

property, plant and equipment are

depreciated to a residual value over

their estimated useful lives, namely:

–Buildings – over a maximum of

50 years; and

–Fixtures, fittings and equipment –

three to 25 years.

All depreciation is charged on a straight-

line basis. Residual value is reassessed

annually.

Where the Group holds land or other

property which it intends to occupy and

provide hotel services, either as owner

or manager, it is classified as property,

plant and equipment.

**Leases**

The Group as lessee

On inception of a contract, the Group

assesses whether it contains a lease.

A contract contains a lease when it

conveys the right to control the use of

an identified asset for a period of time

in exchange for consideration. The

right to use the asset and the obligation

under the lease to make payments are

recognised in the Group statement

of financial position as a right-of-use

asset and a lease liability.

Lease contracts may contain both lease

and non-lease components. The Group

allocates payments in the contract to

the lease and non-lease components

based on their relative stand-alone prices

and applies the lease accounting model

only to lease components.

The right-of-use asset recognised at

lease commencement includes the

amount of lease liability recognised,

initial direct costs incurred and lease

payments made at or before the

commencement date, less any lease

incentives received. Right-of-use assets

are depreciated to a residual value over

the shorter of the asset's estimated

useful life and the lease term. Right-of-

use assets are also adjusted for any

remeasurement of lease liabilities and

are subject to impairment testing.

Residual value is reassessed annually.

A lease liability is recorded when the

leased asset is available for use by

the Group and is initially measured at

the present value of the lease payments

to be made over the lease term. The

lease payments include fixed payments

(including 'in-substance fixed' payments)

and variable lease payments that

depend on an index or a rate (initially

measured using the index or rate at

commencement), less any lease

incentives receivable. In calculating the

present value of lease payments, the

Group uses its incremental borrowing

rate at the lease commencement date

if the interest rate implicit in the lease

is not readily determinable.

The Group has certain leases where

rental payments are reduced if

insufficient cash flows are generated

by the hotel. These leases are treated

as fully variable as there is no floor

to the rent reduction.

The lease term includes periods subject

to extension options which the Group

is reasonably certain to exercise and

excludes the effect of early termination

options where the Group is reasonably

certain that it will not exercise the option.

Minimum lease payments include the

cost of a purchase option if the Group

is reasonably certain it will purchase

the underlying asset after the lease term.

After the commencement date, the

amount of lease liabilities is increased

to reflect the accretion of interest and

reduced for lease payments made.

The carrying amount of lease liabilities

is re-measured if there is a modification,

a change in the lease term or a change

in lease payments as a result of a rent

review or change in the relevant index

or rate.

Variable lease payments are payable

under certain of the Group's hotel leases

and arise where the Group is committed

to making lease payments that are

contingent on the performance of these

hotels. Such lease payments that do

not depend on an index or a rate are

recognised as an expense in the period

over which the event or condition that

triggers the payment occurs.

The Group has opted not to apply the

lease accounting model to intangible

assets, leases of low-value assets or

leases which have a term of less than

12 months. Costs associated with these

leases are recognised as an expense on

a straight-line basis over the lease term.

Payments and receipts are presented

as follows in the Group statement of

cash flows:

–Short-term lease payments, payments

for leases of low-value assets and

variable lease payments that are not

included in the measurement of the

lease liabilities are presented within

cash flows from operating activities;

–Payments for the interest element

of recognised lease liabilities are

included in interest paid within cash

flows from operating activities; and

–Payments for the principal element

of recognised lease liabilities are

presented within cash flows from

financing activities.

The Group as lessor

Leases, including subleases, for which

the Group is a lessor are classified as

finance or operating leases. Whenever

the terms of the lease transfer

substantially all the risks and rewards

of ownership to the lessee, the lease is

classified as a finance lease. All other

leases are classified as operating leases.

Where a leased property earns rentals

under an operating sublease outside

of the normal course of business, the

Group's interest in the lease is classified

as an investment property within right-

of-use assets; these are subsequently

measured under the cost model.

When the lease is classified as an

operating lease, rental income arising

is accounted for on a straight-line

basis in the Group income statement.

When the lease is classified as a finance

lease, the Group's interest in the lease

is derecognised and is replaced by a

finance lease receivable. Any difference

between those amounts is recognised

in the Group income statement. Finance

lease receivables are presented within

other receivables and are initially

measured at the present value of lease

payments receivable under the sublease

plus any initial direct costs. Finance lease

interest is recognised within financial

income in the Group income statement.

Receipts are presented as follows in

the Group statement of cash flows:

–Receipts from operating leases are

presented within cash flows from

operating activities; and

–Receipts of principal from finance

leases are presented within cash

flows from investing activities.

---

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|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 189 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**Associates and joint ventures**

An associate is an entity over which

the Group has significant influence.

Significant influence is the power to

participate in the financial and operating

policy decisions of the entity, but is

not in control or joint control over those

policies. A joint venture exists when two

or more parties have joint control over,

and rights to the net assets of, the

venture. Joint control is the contractually

agreed sharing of control which only

exists when decisions about the relevant

activities require the unanimous consent

of the parties sharing control.

In determining the extent of power

or significant influence, consideration

is given to other agreements between

the Group, the investee entity, and

the investing partners. This includes

any related management or franchise

agreements and the existence of

any performance guarantees.

Associates and joint ventures are

accounted for using the equity method

unless the associate or joint venture

is classified as held for sale. Under the

equity method, the Group's investment

is recorded at cost adjusted by the

Group's share of post-acquisition profits

and losses, and other movements in the

investee's reserves, applying consistent

accounting policies. When the Group's

share of losses exceeds its interest

in an associate or joint venture, the

Group's carrying amount is reduced

to $nil and recognition of further losses

is discontinued except to the extent

that the Group has incurred legal

or constructive obligations or made

payments on behalf of an associate

or joint venture.

If there is objective evidence that an

associate or joint venture is impaired,

an impairment charge is recognised if

the carrying amount of the investment

exceeds its recoverable amount.

Upon loss of significant influence

over an associate or joint control of a

joint venture, any retained investment

is measured at fair value with any

difference to carrying value recognised

in the Group income statement.

**Impairment of non-financial assets**

Non-financial assets are tested for

impairment when events or changes

in circumstances indicate that the

carrying value may not be recoverable

and, in the case of goodwill and brands

with indefinite lives, at least annually.

Assets that do not generate

independent cash inflows are allocated

to the cash-generating unit ('CGU'),

or group of CGUs, to which they belong.

For impairment testing of owned and

leased hotel properties, each hotel is

deemed to be a CGU.

If carrying values exceed their

estimated recoverable amount, the

assets or CGUs are written down to

the recoverable amount. Recoverable

amount is the greater of fair value less

costs of disposal and value in use. Value

in use is assessed based on estimated

future cash flows, including the effect

of inflation, discounted to their present

value using a pre-tax nominal discount

rate that reflects current market

assessments of the time value of money

and the risks specific to the asset.

With the exception of goodwill, an

assessment is made at each reporting

date to determine whether there is an

indication that previously recognised

impairment losses no longer exist or have

decreased. A previously recognised

impairment loss is reversed only if

there has been a significant change

in the assumptions used to determine

the asset's recoverable amount since

the impairment loss was recognised.

The reversal is limited so that the

carrying amount of the asset does

not exceed its recoverable amount,

nor exceed the carrying amount that

would have been determined, net of

depreciation or amortisation, had no

impairment loss been recognised

for the asset in prior years.

Impairment losses, and any subsequent

reversals, are recognised in the Group

income statement.

**Financial assets**

On initial recognition, the Group classifies

its financial assets as being subsequently

measured at amortised cost, fair value

through other comprehensive income

('FVOCI') or fair value through profit

or loss ('FVTPL').

Financial assets which are held to collect

contractual cash flows and give rise to

cash flows that are solely payments of

principal and interest are subsequently

measured at amortised cost. Interest

on these assets is calculated using

the effective interest rate method and

is recognised in the Group income

statement as financial income.

The Group recognises a provision for

expected credit losses for financial

assets held at amortised cost. With the

exception of trade receivables, where

there has not been a significant increase

in credit risk since initial recognition,

provision is made for defaults that

are possible within the next 12 months.

Where there has been a significant

increase in credit risk since initial

recognition, for example trade deposits

and loans where the borrower is in

financial difficulty or has not met

repayments as they fall due, provision

is made for credit losses expected

over the remaining life of the asset.

The Group has elected to irrevocably

designate equity investments as FVOCI

as they mainly comprise strategic

investments in entities that own hotels

which the Group manages. Changes in

their value are recognised within gains

or losses on equity instruments classified

as FVOCI in the Group statement of

comprehensive income and are never

recycled to the Group income statement.

On disposal, any related balance within

the fair value reserve is reclassified to

retained earnings. Dividends from equity

investments classified as FVOCI are

recognised in the Group income

statement as other operating income

when the dividend has been declared,

when receipt of the funds is probable

and when the dividend is not a return

of invested capital. Equity instruments

classified as FVOCI are not subject to

an impairment assessment.

Financial assets not meeting the

above criteria are measured at FVTPL.

These include money market funds,

investments which do not meet the

definition of equity and other financial

assets which do not meet the criteria

to be measured at amortised cost

or FVOCI.

---

| | | |
|:---|:---|:---|
| 190 | IHG | Annual Report and Form 20-F 2025 |

---

Accounting policies continued<br>

**Trade receivables**

A trade receivable is recorded when

the Group has an unconditional right to

receive payment. In respect of franchise

fees, base and incentive management

fees, technology fees and revenues

from owned & leased hotels, the invoice

is typically issued as the related

performance obligations are satisfied,

as described on pages [184](#i39206f57a9214006b97933da74f0a7c9_69350) and [185](#i39206f57a9214006b97933da74f0a7c9_69351).

Trade receivables typically do not bear

interest and are generally on payment

terms of up to 30 days.

Trade receivables are initially recognised

at fair value and subsequently measured

at amortised cost. A provision

for impairment is made for lifetime

expected credit losses. The Group has

established a provision matrix that is based

on its historical credit loss experience

by region and number of days past due.

Where the historical experience is not

relevant to defined owner groups, for

example those in financial distress, lifetime

expected credit losses are calculated by

reference to recent credit loss experience

for that specific population.

Trade receivables are written off

once determined to be uncollectable.

**Cash and cash equivalents**

Cash comprises cash on hand

and demand deposits.

Cash and cash equivalents comprise

short-term deposits, money market

funds and repurchase agreements

that are readily convertible to a known

amount of cash and are subject to an

insignificant risk of changes in value.

They generally have an original maturity

of three months or less.

Cash and cash equivalents may include

amounts which are subject to regulatory

or other contractual restrictions and

are not available for general use by

the Group.

Cash balances are classified as other

financial assets when the Group is not

able to freely access the funds

because they are subject to a specific

charge or other restrictions.

**Money market funds**

Money market funds are held at

FVTPL, with distributions recognised

in financial income.

**Bank and other borrowings**

Bank and other borrowings are initially

recognised at the fair value of the

consideration received less directly

attributable transaction costs. They

are subsequently measured at

amortised cost.

Borrowings are classified as non-current

when there is a right, that has substance,

at the reporting date to defer settlement

for at least 12 months after the

reporting date.

**Contingent and deferred** 

**purchase consideration**

Trade and other payables includes

contingent and deferred purchase

consideration relating to business

combinations and brand asset

acquisitions.

Contingent purchase consideration

is measured at fair value on the date

of acquisition. Contingent purchase

consideration relating to business

combinations and brand asset acquisitions

are subsequently remeasured at fair

value and amortised cost, respectively.

Remeasurement gain and losses are

recognised on the face of the Group

income statement below operating profit.

Deferred purchase consideration is

subsequently measured at amortised

cost and the effect of unwinding the

discount is recorded in financial expenses.

Payments of contingent and deferred

purchase consideration reduce

the respective liabilities. In respect

of contingent purchase consideration,

the portion of each payment relating

to its original estimate of fair value on

acquisition is reported within cash flow

from investing activities in the Group

statement of cash flows and the portion

of each payment relating to the increase

or decrease in the liability since the

acquisition date is reported within

cash flows from operating activities.

In respect of deferred purchase

consideration, the cash paid in excess

of the initial fair value is reported within

cash flow from operating activities,

and the remainder is reported within

cash flows from investing activities.

**Derivative financial instruments** 

**and hedging**

Derivatives are initially recognised

and subsequently measured at fair value.

The subsequent accounting treatment

depends on whether the derivative is

designated as a hedging instrument and,

if so, the nature of the item being hedged.

Changes in the fair value of derivatives

which have either not been designated

as hedging instruments or relate to

the ineffective portion of hedges are

recognised immediately in the Group

income statement.

Documentation outlining the measurement

and effectiveness of any hedging

arrangement is maintained throughout

the life of the hedge relationship.

Interest arising from currency derivatives

and interest rate swaps is recorded in

either financial income or expenses over

the term of the agreement, unless the

accounting treatment for the hedging

relationship requires the interest to

be taken to reserves.

Within the Group statement of cash

flows, interest paid includes interest

paid on the Group's bonds and the

related derivative financial instruments.

Cash flow hedges

Financial instruments are designated

as cash flow hedges when they hedge

exposure to variability in cash flows

that are attributable to either a highly

probable forecast transaction or

a particular risk associated with a

recognised asset or liability.

Changes in the fair value are recorded

in other comprehensive income

and cash flow hedge reserves to the

extent that the hedges are effective.

When the hedged item is recognised,

the cumulative gains and losses on

the related hedging instrument are

reclassified to the Group income

statement, within financial expenses.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 191 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Net investment hedges

Financial instruments are designated

as net investment hedges when they

hedge the Group's net investment

in foreign operations.

Changes in the fair value are recorded

in other comprehensive income and

the currency translation reserve to the

extent that the hedges are effective.

The cumulative gains and losses remain

in equity until the relevant foreign

operation is disposed, at which point

they are reclassified to the Group

income statement as part of the

gain or loss on disposal.

**Financial guarantee contracts**

In limited cases, the Group may guarantee

part of mortgage loans made to facilitate

third-party ownership of hotels under IHG

management or franchise arrangements.

The Group has elected to apply the

requirements of IFRS 9 'Financial

Instruments' to these arrangements.

Financial guarantee contracts are initially

recognised at fair value and subsequently

measured at the higher of the amount

calculated under the Group's expected

credit loss model and any amount initially

recognised less cumulative amounts

recognised in accordance with the

Group's revenue recognition policy.

The carrying value of financial guarantee

liabilities is immaterial for all periods

presented.

**Fair value measurement**

The Group measures each of the

following at fair value on a recurring

basis:

–Financial assets and liabilities

measured at FVTPL;

–Financial assets measured at

FVOCI; and

–Derivative financial instruments.

Other assets are measured at fair value

when impaired or re-measured on

classification as held for sale by reference

to fair value less costs of disposal.

Fair value is the price that would be

received to sell an asset or paid to transfer

a liability in an orderly transaction

between market participants. Fair value

is measured by reference to the principal

market for the asset or liability assuming

that market participants act in their

economic best interests.

The fair value of a non-financial asset

assumes the asset is used in its highest

and best use, either through continuing

ownership or by selling it.

The Group uses valuation techniques

that maximise the use of relevant

observable inputs using the following

valuation hierarchy:

Level 1: Quoted (unadjusted) prices

in active markets for identical

assets or liabilities.

Level 2: Other techniques for which all

inputs which have a significant

effect on the recorded fair value

are observable, either directly

or indirectly.

Level 3:Techniques which use inputs

which have a significant effect

on the recorded fair value that

are not based on observable

market data.

For assets and liabilities measured at

fair value on a recurring basis, the Group

determines whether transfers have

occurred between levels in the hierarchy

by reassessing categorisation (based on

the lowest level input that is significant

to the fair value measurement as a whole)

at the end of each reporting period.

Further disclosures on the particular

valuation techniques used by the Group

are provided in note 24.

Where significant assets, such as property,

are valued by reference to fair value less

costs of disposal, an external valuation will

normally be obtained using professional

valuers who have appropriate market

knowledge, reputation and independence.

**Offsetting of financial assets** 

**and financial liabilities**

Financial assets and financial liabilities

are offset and the net amount is

reported in the Group statement of

financial position if there is a currently

enforceable legal right to offset the

recognised amounts and there is an

intention to settle on a net basis or to

realise the assets and settle the liabilities

simultaneously. To meet these criteria,

the right of set-off must not be contingent

on a future event and must be legally

enforceable in all of the following

circumstances: the normal course of

business; the event of default; and the

event of insolvency or bankruptcy of

the Group and all of the counterparties.

**Taxes**

Current tax

Current income tax assets and liabilities

for the current and prior periods are

measured at the amount expected to

be recovered from, or paid to, the tax

authorities. The tax rates and tax laws

used to compute the amount are those

that are enacted or substantively enacted

at the end of the reporting period.

The calculation of the Group's current

tax charge involves consideration of

applicable tax laws and regulations in

many jurisdictions throughout the world.

From time to time, the Group is subject

to tax audits and uncertainties in these

jurisdictions. The issues involved can be

complex and audits may take a number

of years to conclude. Where the

interpretation of local tax law is not clear,

management relies on judgement and

accounting estimates to ensure all

uncertain tax positions are adequately

provided for in the Group Financial

Statements, in accordance with IFRIC 23

'Uncertainty over Income Tax Treatments',

representing the Group's view of the

most likely outcome or, where multiple

issues are considered likely to be settled

together, the probability weighted

amounts of the range of possible

outcomes.

This may involve consideration of

some or all of the following factors:

–strength of technical argument,

impact of case law and clarity

of legislation;

–professional advice;

–experience of interactions, and

precedents set, with the particular

taxing authority; and

–agreements previously reached in

other jurisdictions on comparable

issues.

Deferred tax

Deferred tax assets and liabilities arise

and are generally recognised in respect

of temporary differences between the

tax base and carrying value of assets

and liabilities.

Deferred tax is calculated at the tax

rates that are expected to apply in the

periods in which the asset is released

or the liability will be settled, based

on tax rates and laws enacted or

substantively enacted at the end

of the reporting period.

---

| | | |
|:---|:---|:---|
| 192 | IHG | Annual Report and Form 20-F 2025 |

---

Accounting policies continued<br>

Judgement is used when assessing

the extent to which deferred tax assets,

particularly in respect of tax losses,

should be recognised. Deferred tax

assets are only recognised to the extent

that it is regarded as probable that there

will be sufficient and suitable taxable

profits or deferred tax liabilities in the

relevant legal entity or tax group against

which such assets can be utilised in

the future. For this purpose, forecasts

of future profits are considered by

assessing estimated future cash flows,

consistent with those disclosed on

page [183](#i39206f57a9214006b97933da74f0a7c9_69436) within 'Going concern'.

Tax assumptions are overlaid to

these profit forecasts to estimate

the future taxable profits.

Deferred tax is not provided on

temporary differences arising on

investments in subsidiaries where the

Group is able to control the timing of

the reversal and it is probable that the

temporary difference will not reverse

in the foreseeable future.

Where deferred tax assets and liabilities

arise in the same entity, or group of

entities, and there would be a legal right

to offset the assets and liabilities were

they to reverse, the assets and liabilities

are also offset in the Group statement

of financial position.

The Group has applied the exception to

recognising and disclosing information

about deferred tax assets and liabilities

related to Pillar Two income taxes.

**Retirement benefits**

Defined contribution plans

Payments to defined contribution plans

are charged to the Group income

statement as they fall due.

Defined benefit plans

Plan assets are measured at fair value

and plan liabilities are measured on an

actuarial basis using the projected unit

credit method, discounted at an interest

rate equivalent to the current rate of

return on a high-quality corporate bond

of equivalent currency and term to the

plan liabilities. The difference between

the value of plan assets and liabilities at

the period-end date is the amount of

surplus or deficit recorded in the Group

statement of financial position as an

asset or liability. An asset is recognised

when the employer has an unconditional

right to use the surplus at some point

during the life of the plan or on its

wind-up.

The service cost of providing pension

benefits to employees, together with

the net interest expense or income

for the year, is charged to the Group

income statement within administrative

expenses. Net interest is calculated

by applying the discount rate to the

net defined benefit asset or liability,

after any asset restriction.

Remeasurements comprise actuarial

gains and losses, the return on plan

assets and changes in the amount of

any asset restrictions. Actuarial gains

and losses may result from differences

between the actuarial assumptions

underlying the plan liabilities and actual

experience during the year or changes

in the actuarial assumptions used

in the valuation of the plan liabilities.

Remeasurement gains and losses,

and taxation thereon, are recognised

in other comprehensive income and

are not reclassified to profit or loss

in subsequent periods.

Actuarial valuations are carried out

on a regular basis and are updated for

material transactions and other material

changes in circumstances (including

changes in market prices and interest

rates) up to the end of the reporting

period.

**Deferred compensation plan**

The Group operates a deferred

compensation plan in the US which

allows certain employees to make

additional provision for retirement

through the deferral of salary with

matching company contributions within

a dedicated trust. The related assets

and liabilities are recognised in the

Group statement of financial position.

The Group's obligation to employees

under the plan is limited to the fair value

of assets held by the plan and so the

assets and liabilities are valued at the

same amount, with no net impact

on profit or loss.

**Share-based payments**

The cost of equity-settled share-based

payment transactions with employees

is measured by reference to fair value at

the date at which the right to the shares

is granted. Fair value is determined

by an external valuer using option

pricing models.

The cost of equity-settled share-based

payment transactions is recognised,

together with a corresponding increase

in equity, over the period in which any

performance or service conditions are

fulfilled, ending on the date on which

the relevant employees become fully

entitled to the award (vesting date).

The Group income statement charge

represents the movement in cumulative

expense recognised at the beginning

and end of that year. No expense is

recognised for awards that do not

ultimately vest, except for awards where

vesting is conditional upon a market or

non-vesting condition, which are treated

as vesting irrespective of whether or

not the market or non-vesting condition

is satisfied, provided that all other

performance and/or service conditions

are satisfied.

**Provisions**

Provisions are recognised when

the Group has a present obligation as

a result of a past event, it is probable that

a payment will be made and a reliable

estimate of the amount payable can

be made. If the effect of the time value

of money is material, the provision

is discounted using a current pre-tax

discount rate that reflects the risks

specific to the liability.

Commercial litigation and disputes

A provision is made when management

consider it probable that payment may

occur and the amount can be reliably

estimated even though the defence of

the related claim may still be ongoing

through the court or arbitration process.

Self-insurance reserves

The Group holds insurance policies with

third-party insurers against certain risks

relating to its corporate operations and

owned and leased properties. Certain risks

are reinsured through the Group's captive

insurance company (the 'Captive'),

SCH Insurance Company. This reduces

the cost of insurance to the Group.

For both the Group's self-insurance

provisions and its external insurance

obligations, in addition to the Captive

obtaining regulatory approval, each line

of insurance is subject to review and

approval by the Insurance Executive

Sub-Committee. The level of retained

risk and expected loss is reviewed

annually to balance the level of risk

against external risk transfer costs.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 193 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Insurance reserves are held principally

in the Captive. They are established

using independent actuarial

assessments, which reflect current

expectations of the future economic

outlook, or are based on past claims

experience provided by third parties.

Amounts utilised are principally paid

to third-party insurers or dedicated

claims handlers for subsequent

settlement with the claimant.

**Insurance**

The Group's insurance reserves relating

to managed hotels are included in the

Group statement of financial position as

insurance liabilities. Insurance liabilities

include both claims which are incurred

but not reported ('IBNR') and those

reported but not yet settled. Reserves

are established using IFRS 17's premium

allocation approach, as all policies have

a duration of 12 months or less, and

incorporate independent actuarial

assessments which reflect current

expectations of the future economic

outlook and past claims experience.

The Group assesses other arrangements

with guarantees and similar features

to determine whether an insurance

contract exists. No material contracts

have been identified to date.

Insurance revenue and insurance

expenses are presented separately

within the Group income statement.

Insurance revenue comprises

reinsurance premiums which are

recognised over the period of coverage;

insurance expenses comprise the cost

of claims and associated expenses.

The effect of discounting is immaterial.

In order to protect certain third-party

insurers against the solvency risk of

the Captive, the Group obtains stand-by

letters of credit ('SBLCs') from various

banks with a total value of $75m

(2024: $84m). Other Group companies

indemnify the banks against losses

under these SBLCs, however this

represents a secondary guarantee

of the Group's obligations which are

already recorded on the statement of

financial position, either as insurance

liabilities under IFRS 17 or as self-

insurance provisions. No additional

liability is therefore recorded in

respect of these indemnities.

**Disposal of non-current assets**

The Group recognises sales proceeds

and any related gain or loss on disposal

on completion of the sales process.

In determining whether the gain or

loss should be recorded, the Group

considers whether it:

–has a continuing managerial

involvement to the degree

associated with asset ownership;

–has transferred the significant risks

and rewards associated with asset

ownership; and

–can reliably measure and will

actually receive the proceeds.

**Equity share capital and reserves**

Equity share capital

Equity share capital includes the total

net proceeds (both nominal value

and share premium) on issue of the

Company's equity share capital. Share

premium represents the amount of

proceeds received for shares in excess

of their nominal value.

Capital redemption reserve

The capital redemption reserve

maintains the nominal value of the

equity share capital of the Company

when shares are repurchased

and cancelled.

Shares held by employee share trusts

Shares held by employee share trusts

comprise ordinary shares held by

employee share trusts.

Other reserves

Other reserves comprise the merger

and revaluation reserves previously

recognised under UK GAAP, together

with the reserve arising as a consequence

of the Group's capital reorganisation in

June 2005. The revaluation reserve relates

to the previous revaluations of property,

plant and equipment which were

included at deemed cost on adoption

of IFRS. Following the change in

presentational currency to US dollars

in 2008, this reserve also includes

exchange differences arising on

retranslation to period-end exchange

rates of equity share capital, the capital

redemption reserve and shares held

by employee share trusts.

Fair value reserve

The fair value reserve comprises

movements in the value of financial

assets measured at fair value through

other comprehensive income.

Cash flow hedge reserves

The cash flow hedge reserves comprise:

–Cash flow hedge reserve: the

effective portion of the cumulative

net change in the fair value of hedging

instruments used in cash flow hedges

pending subsequent recognition

in profit or loss; and

–Cost of hedging reserve: the gain

or loss which is excluded from

the designated hedging instrument

relating to the foreign currency

basis spread of currency swaps.

Currency translation reserve

The currency translation reserve

comprises the movement in exchange

differences arising from the translation

of foreign operations and exchange

differences on foreign currency

borrowings and derivative financial

instruments that provide an effective

hedge against net investments in

foreign operations. On adoption of IFRS,

cumulative exchange differences were

deemed to be $nil.

Non-controlling interest

A non-controlling interest is equity in a

subsidiary of the Group not attributable,

directly or indirectly, to the Group.

**Climate change**

There are no climate-related estimates

and assumptions that have a material

impact on asset values in the Group

Financial Statements. In particular,

the following have been considered:

–In the case of goodwill and brands,

the carrying value is recovered in

less than five years under the Base

Case forecasts and is not susceptible

to medium-term risks.

–In the case of the InterContinental

Boston, for which the lease expires

in 2105, the last impairment test

performed indicated sufficient

headroom above the asset value

before the asset would be impaired.

---

| | | |
|:---|:---|:---|
| 194 | IHG | Annual Report and Form 20-F 2025 |

---

Accounting policies continued<br>

–In the case of other hotel assets

(within property, plant and equipment,

right-of-use assets, associates or

other financial assets) the remaining

economic lives, whether they are

sensitive to the impact of transitional

risks or are susceptible to physical

risks.

–In the case of contract assets, the

term of the management agreement

and the significant headroom of fee

income over the asset carrying value.

–In the case of trade deposits and

loans, the short-term repayment

period of these assets.

–In the case of insurance liabilities and

self-insurance provisions, the lines of

insurance written by the Captive and

procured externally, the terms of

those policies and coverage from

third-party insurers.

–The period of coverage of performance

guarantees and owner loan guarantees,

together with caps on the Group's

exposure.

Additionally, increasing operating costs

over the medium term, for example

energy, are not expected to have a

material impact on any of the

Group's assets.

While there is currently no material

medium-term impact expected from

climate change, the risks attached

to climate change continue to evolve

and these will continue to be assessed

against the Group's judgements

and estimates.

**New accounting standards** 

**and other changes**

**Adoption of new accounting standards**

From 1 January 2025, the Group has

applied the following amendments:

–IAS 21 – Lack of Exchangeability

The amendment has not had a material

impact on the Group's reported financial

performance or position.

**New standards issued but not** 

**yet effective**

From 1 January 2026, the Group

will apply the amendments to:

–IFRS 7 and 9 – Amendments to the

Classification and Measurement

of Financial Instruments;

–IFRS 7 and 9 – Contracts Referencing

Nature-dependent Electricity; and

–Amendments arising from the IASB's

Annual Improvements Volume 11.

From 1 January 2027, the Group will

apply the amendment to:

–IAS 21 – Translation to a

Hyperinflationary Presentation

Currency.

There is no anticipated material

impact from these amendments

on the Group's reported financial

performance or position.

**IFRS 18 Presentation and Disclosure** 

**in Financial Statements**

The Group will adopt IFRS 18 with

effect from 1 January 2027. This will

replace IAS 1 'Presentation of Financial

Statements'. IFRS 18 will require entities

to classify all income and expenses

within the income statement into

the following categories: operating,

investing, financing, tax and

discontinued operations and will

introduce two new defined subtotals

within the Group income statement,

operating profit and profit before

financing and income taxes. Operating

profit, as defined by IFRS 18, will differ

from operating profit as reported

in these financial statements. The

primary differences are expected to

be the inclusion of foreign exchange

gains and losses and exclusion of the

Group's share of profit and losses of

associates and joint ventures from IFRS

18's operating profit. The Group's share

of profit and losses of associates and

joint ventures will form part of IFRS 18's

investing category.

IFRS 18 will require restatement

of comparative periods. There will be

no change to the Group's reported

profit for the year ended 31 December

2025 or net liabilities as that date when

reported, in 2027, after adoption of

IFRS 18.

IFRS 18 introduces additional disclosures

within the notes to the Group financial

statements for management-defined

performance measures (subtotals of

income and expense that communicate

management's view of the performance

of the Group as a whole). Disclosures

relating to Non-GAAP measures that

meet IFRS 18's management-defined

performance measures definition,

primarily adjusted profit and interest

measures, will be included within the

financial statements in 2027.

The new standard introduces new

principles around aggregation and

disaggregation of information within

the financial statements. Related

amendments to IAS 7 'Statement of

Cash Flows' will require the Group

statement of cash flows to reconcile

operating profit or loss to operating

cash flows and will change the Group's

classification of cash flows from

dividends and interest.

The Group has completed its initial

impact assessment, highlighting the

key impacts of the standard as set out

above. This work will continue in 2026.

**Other changes**

Foreign exchange gains and losses,

which are primarily related to the

Group's internal funding structure, have

been presented on a separate line of

the Group income statement to provide

greater clarity over a significant balance.

The 2024 and 2023 amounts were

previously presented within 'Financial

expenses'. Note 7 has been revised to

exclude foreign exchange gains and

losses in the comparative periods.

Where applicable to other notes, foreign

exchange gains and losses and net

financial expenses are now presented

separately in all periods, with no change

in totals.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 195 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

Notes to the Group Financial Statements<br>

**1. Exchange rates**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2024 | 2024 | 2023 | 2023 |
| $1 equivalent | Average | Closing | Average | Closing | Average | Closing |
| Sterling | £0.76 | £0.74 | £0.78 | £0.80 | £0.80 | £0.78 |
| Euro | €0.89 | €0.85 | €0.92 | €0.96 | €0.92 | €0.90 |

---

**2. Segmental information**

**Revenue**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
| Year ended 31 December | $m | $m | $m |
| Americas | 1129 | 1141 | 1105 |
| EMEAA | 811 | 748 | 677 |
| Greater China | 165 | 161 | 161 |
| Central | 363 | 262 | 221 |
| Revenue from reportable segments | 2468 | 2312 | 2164 |
| System Fund and reimbursable revenues | 2721 | 2611 | 2460 |
| Total revenue | 5189 | 4923 | 4624 |

---

**Profit**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
| Year ended 31 December | $m | $m | $m |
| Americas | 836 | 828 | 815 |
| EMEAA | 303 | 270 | 215 |
| Greater China | 99 | 98 | 96 |
| Central | 27 | (72) | (107) |
| Operating profit from reportable segments | 1265 | 1124 | 1019 |
| System Fund and reimbursable result | (46) | (83) | 19 |
| Operating exceptional items (note 6) | (21) | – | 28 |
| Operating profit | 1198 | 1041 | 1066 |
| Net financial expenses | (153) | (115) | (87) |
| Foreign exchange gains/(losses) | 37 | (25) | 35 |
| Remeasurement of contingent purchase consideration | (8) | (4) | (4) |
| Profit before tax | 1074 | 897 | 1010 |
| Tax | (315) | (269) | (260) |
| Profit for the year | 759 | 628 | 750 |

---

---

| | | |
|:---|:---|:---|
| 196 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**2. Segmental information continued**

**Non-cash items included within operating profit from reportable segments**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Americas | EMEAA | Greater <br>China<br>| Central | Group |
| Year ended 31 December 2025 | $m | $m | $m | $m | $m |
| Depreciation and amortisation<sup>a</sup> | 25 | 13 | 3 | 26 | 67 |
| Contract assets deduction in revenue | 30 | 21 | 1 | – | 52 |
| Equity-settled share-based payments cost | 13 | 7 | 4 | 18 | 42 |
| Share of profit of associates and joint ventures | – | (6) | – | – | (6) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Americas | EMEAA | Greater <br>China<br>| Central | Group |
| Year ended 31 December 2024 | $m | $m | $m | $m | $m |
| Depreciation and amortisation<sup>a</sup> | 24 | 12 | 3 | 26 | 65 |
| Contract assets deduction in revenue | 24 | 18 | 1 | – | 43 |
| Equity-settled share-based payments cost | 10 | 5 | 3 | 19 | 37 |
| Share of profit of associates and joint ventures | (4) | (6) | – | – | (10) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Americas | EMEAA | Greater <br>China<br>| Central | Group |
| Year ended 31 December 2023 | $m | $m | $m | $m | $m |
| Depreciation and amortisation<sup>a</sup> | 24 | 12 | 4 | 27 | 67 |
| Contract assets deduction in revenue | 21 | 15 | 1 | – | 37 |
| Equity-settled share-based payments cost | 9 | 4 | 2 | 16 | 31 |
| Share of profit of associates (excluding exceptional items) | (5) | (8) | – | – | (13) |

---

a.Includes $18m (2024: $16m, 2023: $17m) relating to cost of sales in owned & leased hotels and $49m (2024: $49m, 2023: $50m) relating to other assets.

A further $79m (2024: $80m, 2023: $83m) was recorded within System Fund and reimbursable expenses.

**Geographical information**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
| Year ended 31 December | $m | $m | $m |
| Revenue |  |  |  |
| United Kingdom | 312 | 291 | 263 |
| United States | 1965 | 1902 | 1777 |
| Rest of World | 1195 | 1119 | 1020 |
|  | 3472 | 3312 | 3060 |
| System Fund revenues (note 31) | 1717 | 1611 | 1564 |
|  | 5189 | 4923 | 4624 |

---

For the purposes of the above table, fee business, owned & leased and reimbursable revenues are determined according to the

location of the hotel and other revenue is attributed to the country of origin. In addition to the United Kingdom, revenue relating

to an individual country is separately disclosed when it represents 10% or more of total revenue. System Fund revenues are not

included in the geographical analysis as the Group does not monitor the Fund's revenue by location of the hotel or, in the case

of the loyalty programme, according to the location where members consume their rewards.

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024<sup>a</sup> |
| 31 December | $m | $m |
| Non-current assets |  |  |
| United Kingdom | 152 | 125 |
| United States | 1107 | 1110 |
| Rest of World | 1241 | 1017 |
|  | 2500 | 2252 |

---

a.The Group has revised the methodology used to allocate brands and software to individual countries to better reflect how intangible corporate assets

are deployed globally at each reporting date. The assets were previously allocated based on the location of the owning entity or based on long-term

trading expectations at the time the asset was acquired. They are now allocated based on the most relevant distribution of open and pipeline rooms at

the reporting date. The change in policy reduced the United States total by $280m (2024: $260m) and increased the United Kingdom and Rest of World

by $35m (2024: $21m) and $245m (2024: $239m), respectively. No additional countries exceeded 10% of total non-current assets.

For the purposes of the above table, non-current assets comprise goodwill and other intangible assets, property, plant and equipment,

right-of-use assets, investments in associates and joint ventures, non-current other receivables, non-current contract costs and

non-current contract assets. In addition to the United Kingdom, non-current assets relating to an individual country are separately

disclosed when they represent 10% or more of total non-current assets, as defined above.

$294m (2024: $307m) of tangible fixed assets are located in the United States, of which $93m (2024: $99m) relates to property,

plant and equipment and $201m (2024: $208m) relates to right-of-use assets.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 197 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**3. Revenue**

**Disaggregation of revenue**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Americas | EMEAA | Greater <br>China<br>| Central | Group |
| Year ended 31 December 2025 | $m | $m | $m | $m | $m |
| Franchise and base management fees | 943 | 299 | 129 | – | 1371 |
| Incentive management fees | 20 | 134 | 36 | – | 190 |
| Central revenue | – | – | – | 336 | 336 |
| Revenue from fee business | 963 | 433 | 165 | 336 | 1897 |
| Revenue from owned & leased hotels | 166 | 378 | – | – | 544 |
| Revenue from insurance activities | – | – | – | 27 | 27 |
|  | 1129 | 811 | 165 | 363 | 2468 |
| System Fund revenues (note 31) |  |  |  |  | 1717 |
| Reimbursable revenues (note 31) |  |  |  |  | 1004 |
| Total revenue |  |  |  |  | 5189 |

---

Central revenue arises principally from technology fee income and ancillary revenues including co-brand licensing fees

and, following execution of a revised agreement with the IHG Owners Association in 2024, a portion of revenue from the

consumption of certain IHG One Rewards points. The agreed change initially applied to 50% of proceeds from points sold

to consumers from 1 January 2024 and increased to 100% from 1 January 2025. In line with the Group's accounting policy

(see page [186](#i39206f57a9214006b97933da74f0a7c9_69445)), revenue from the sale of points is deferred until the future benefit has been consumed by the member.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Americas | EMEAA | Greater<br>China<br>| Central | Group |
| Year ended 31 December 2024 | $m | $m | $m | $m | $m |
| Franchise and base management fees | 958 | 277 | 122 | – | 1357 |
| Incentive management fees | 21 | 118 | 39 | – | 178 |
| Central revenue | – | – | – | 239 | 239 |
| Revenue from fee business | 979 | 395 | 161 | 239 | 1774 |
| Revenue from owned & leased hotels | 162 | 353 | – | – | 515 |
| Revenue from insurance activities | – | – | – | 23 | 23 |
|  | 1141 | 748 | 161 | 262 | 2312 |
| System Fund revenues (note 31) |  |  |  |  | 1611 |
| Reimbursable revenues (note 31) |  |  |  |  | 1000 |
| Total revenue |  |  |  |  | 4923 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Americas | EMEAA | Greater<br>China<br>| Central | Group |
| Year ended 31 December 2023 | $m | $m | $m | $m | $m |
| Franchise and base management fees | 936 | 253 | 115 | – | 1304 |
| Incentive management fees | 21 | 101 | 46 | – | 168 |
| Central revenue | – | – | – | 200 | 200 |
| Revenue from fee business | 957 | 354 | 161 | 200 | 1672 |
| Revenue from owned & leased hotels | 148 | 323 | – | – | 471 |
| Revenue from insurance activities | – | – | – | 21 | 21 |
|  | 1105 | 677 | 161 | 221 | 2164 |
| System Fund revenues (note 31) |  |  |  |  | 1564 |
| Reimbursable revenues (note 31) |  |  |  |  | 896 |
| Total revenue |  |  |  |  | 4624 |

---

**Contract balances**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| 31 December | $m | $m |
| Trade receivables (note 16) | 698 | 651 |
| Contract assets | 798 | 650 |
| Deferred revenue | (2169) | (2060) |

---

---

| | | |
|:---|:---|:---|
| 198 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**3. Revenue continued**

**Contract assets**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | $m | $m |
| At 1 January | 650 | 459 |
| Additions | 183 | 237 |
| Recognised as a deduction to revenue | (52) | (43) |
| Impairment reversals (note 6) | – | 3 |
| Repayments | (2) | – |
| Exchange and other adjustments | 19 | (6) |
| At 31 December | 798 | 650 |
| Analysed as: |  |  |
| Current | 47 | 38 |
| Non-current | 751 | 612 |
|  | 798 | 650 |

---

The increase in the balance of contract assets in 2025 and 2024 is due to payments in the year exceeding amounts recognised

as a reduction to revenue over the term of the relevant management and franchise agreements, reflecting the growth in the

Group's system size including the NOVUM conversion portfolio signed in 2024.

The Group also has future commitments for key money payments which are contingent upon future events and may reverse.

At 31 December 2025, the maximum exposure remaining under performance guarantees was $67m (2024: $77m).

**Deferred revenue**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Loyalty <br>programme<br>| Other co-<br>brand fees<br>| Application <br>& re-<br>licensing <br>fees<br>| Other | Total |
|  | $m | $m | $m | $m | $m |
| At 1 January 2024 | 1529 | 22 | 171 | 126 | 1848 |
| Increase in deferred revenue | 726 | 97 | 23 | 61 | 907 |
| Recognised as revenue | (602) | (8) | (23) | (58) | (691) |
| Exchange and other adjustments | – | – | – | (4) | (4) |
| At 31 December 2024 | 1653 | 111 | 171 | 125 | 2060 |
| Increase in deferred revenue | 784 | 36 | 24 | 69 | 913 |
| Recognised as revenue | (710) | (12) | (22) | (65) | (809) |
| Exchange and other adjustments | – | – | – | 5 | 5 |
| At 31 December 2025 | 1727 | 135 | 173 | 134 | 2169 |
| Analysed as: |  |  |  |  |  |
| Current | 715 | 13 | 22 | 79 | 829 |
| Non-current | 1012 | 122 | 151 | 55 | 1340 |
|  | 1727 | 135 | 173 | 134 | 2169 |
| At 31 December 2024 analysed as: |  |  |  |  |  |
| Current | 661 | 12 | 23 | 70 | 766 |
| Non-current | 992 | 99 | 148 | 55 | 1294 |
|  | 1653 | 111 | 171 | 125 | 2060 |

---

Increase in deferred revenue includes both amounts received and recognised as revenue in the same year. Amounts recognised

as revenue were included in deferred revenue at the beginning of the year.

Loyalty programme revenues, shown gross in the table above, are presented net of the corresponding redemption cost in the

Group income statement.

Other deferred revenue includes guest deposits received by owned & leased hotels and technical service fees.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 199 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**3. Revenue continued**

**Transaction price allocated to remaining performance obligations**

The expected timing of recognition of amounts received and not yet recognised relating to performance obligations that were

unsatisfied at the year end are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
|  | Loyalty and <br>co-brand<br>| Other | Total | Loyalty and <br>co-brand<br>| Other | Total |
|  | $m | $m | $m | $m | $m | $m |
| Less than one year | 728 | 101 | 829 | 673 | 93 | 766 |
| Between one and two years | 364 | 41 | 405 | 355 | 43 | 398 |
| Between two and three years | 221 | 32 | 253 | 214 | 30 | 244 |
| Between three and four years | 146 | 25 | 171 | 140 | 24 | 164 |
| Between four and five years | 100 | 22 | 122 | 95 | 22 | 117 |
| More than five years | 303 | 86 | 389 | 287 | 84 | 371 |
|  | 1862 | 307 | 2169 | 1764 | 296 | 2060 |

---

**Contract costs**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | $m | $m |
| At 1 January | 95 | 87 |
| Costs incurred | 20 | 18 |
| Charged to income statement | (9) | (8) |
| Exchange and other adjustments | 2 | (2) |
| At 31 December | 108 | 95 |
| Analysed as: |  |  |
| Current | 5 | 5 |
| Non-current | 103 | 90 |
|  | 108 | 95 |

---

**4. Staff costs and Directors' remuneration**

**Staff costs and average number of employees**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
| Staff costs | $m | $m | $m |
| Wages and salaries | 1888 | 1890 | 1752 |
| Social security costs | 167 | 159 | 143 |
| Share-based payment cost (note 27) | 72 | 67 | 56 |
| Pension and other post-retirement benefits: |  |  |  |
| Defined benefit plans | 7 | 7 | 4 |
| Defined contribution plans | 66 | 62 | 58 |
|  | 2200 | 2185 | 2013 |
| Analysed as: |  |  |  |
| Costs borne by IHG<sup>a</sup> | 792 | 800 | 747 |
| Costs borne by the System Fund or reimbursed<sup>a</sup> | 1408 | 1385 | 1266 |
|  | 2200 | 2185 | 2013 |

---

a.In 2025, includes $8m classified as exceptional relating to the global efficiency programme. An additional $7m is included in costs borne by the System

Fund or reimbursed.

---

| | | |
|:---|:---|:---|
| 200 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**4. Staff costs and Directors' remuneration continued**

**Staff costs and average number of employees continued**

---

| | | | |
|:---|:---|:---|:---|
| Monthly average number of employees, including part-time employees | 2025 | 2024 | 2023 |
| Employees whose costs are borne by IHG: |  |  |  |
| Americas | 1665 | 1612 | 1578 |
| EMEAA | 3629 | 3635 | 3642 |
| Greater China | 368 | 357 | 352 |
| Central | 1797 | 1783 | 1720 |
|  | 7459 | 7387 | 7292 |
| Employees whose costs are borne by the System Fund or are reimbursed | 20390 | 20752 | 20306 |
|  | 27849 | 28139 | 27598 |

---

**Directors' remuneration**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| Base salaries, fees, annual performance payments and benefits | 7.8 | 6.9 | 6.9 |

---

---

| | |
|:---|:---|
| **+** | More detailed information on the remuneration including pensions and share awards for each Director is shown in the Directors' Remuneration Report <br>within the 'Single total figure of remuneration' tables for Executive Directors on page [148](#i24da1a8b6a2446abbc31e8859adb287f_37644) and Non-Executive Directors on page [156](#i24da1a8b6a2446abbc31e8859adb287f_37622). Shareholdings <br>for each Director are shown within 'Shares and awards held by Executive Directors at 31 December 2025' for Executive Directors on page [153](#i24da1a8b6a2446abbc31e8859adb287f_37615) and <br>'Non-Executive Directors' shareholdings' for Non-Executive Directors on page [156](#i24da1a8b6a2446abbc31e8859adb287f_37622). |
|  | More detailed information on the remuneration including pensions and share awards for each Director is shown in the Directors' Remuneration Report <br>within the 'Single total figure of remuneration' tables for Executive Directors on page [148](#i24da1a8b6a2446abbc31e8859adb287f_37644) and Non-Executive Directors on page [156](#i24da1a8b6a2446abbc31e8859adb287f_37622). Shareholdings <br>for each Director are shown within 'Shares and awards held by Executive Directors at 31 December 2025' for Executive Directors on page [153](#i24da1a8b6a2446abbc31e8859adb287f_37615) and <br>'Non-Executive Directors' shareholdings' for Non-Executive Directors on page [156](#i24da1a8b6a2446abbc31e8859adb287f_37622). |

---

**5. Auditor's remuneration paid to PricewaterhouseCoopers LLP**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| Audit of the Financial Statements | 7 | 7 | 7 |
| Audit of subsidiaries | 3 | 3 | 3 |
| Other assurance services<sup>a</sup> | 2 | 1 | 1 |
|  | 12 | 11 | 11 |
| Under SEC regulations analysed as: |  |  |  |
| Audit | 11 | 10 | 10 |
| Other audit-related | 1 | 1 | 1 |
|  | 12 | 11 | 11 |

---

a.Other assurance services consists of controls assurance engagements, assurance services connected with the issue of bonds and audit of System

Fund financial information.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 201 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**6. Operating exceptional items**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| Global efficiency programme<br> (a) | (12) | – | – |
| Commercial litigation and disputes<br> (b) | (9) | (12) | – |
| Share of profits on the Barclay associate<br> (c) | – | – | 18 |
| Business interruption insurance<br> (d) | – | – | 10 |
| Impairment reversal on financial assets<br> (e) | – | 6 | – |
| Impairment reversal on property, plant and equipment<br> (f) | – | 3 | – |
| Impairment reversal on contract assets<br> (g) | – | 3 | – |
| Operating exceptional items | (21) | – | 28 |
| Operating exceptional items analysed as: |  |  |  |
| Americas | (2) | 4 | 27 |
| EMEAA | (13) | (4) | 1 |
| Central | (6) | – | – |
|  | (21) | – | 28 |
| Cash flows relating to operating exceptional items<br> (h) | (23) | 8 | (29) |

---

---

| | |
|:---|:---|
| **+** | The above items are defined by management as exceptional as further described on page [187](#i39206f57a9214006b97933da74f0a7c9_69332). |

---

**(a) Global efficiency programme**

Comprises costs incurred in the ongoing delivery of a global efficiency programme, designed to achieve incremental cost base

efficiencies and effectiveness. The costs, included within 'Cost of sales' and 'Administrative expenses' in the Group income

statement, are presented as exceptional because they relate to a comprehensive programme and therefore do not reflect

normal, ongoing costs of the business. An additional $10m was charged to the System Fund (see note 31). Further exceptional

costs are expected to be incurred to complete the programme in 2026.

**(b) Commercial litigation and disputes**

From time to time, the Group is subject to legal proceedings the ultimate outcome of each being always subject to many

uncertainties inherent in litigation. The charge relates to the EMEAA region and includes legal costs. The costs, included within

'Administrative expenses' in the Group income statement, are presented as exceptional reflecting the quantum of the costs

and nature of the disputes.

**(c) Share of profits on the Barclay associate**

Related to the reversal of a liability for amounts payable to the Barclay associate, linked to the value of the hotel. The reversal,

included within 'Share of profits of associates and joint ventures' in the Group income statement, was presented as exceptional

for consistency with the treatment of the corresponding expense.

**(d) Business interruption insurance**

Related to amounts receivable from the Group's insurer under its business interruption policy for certain owned & leased hotels

due to Covid-19. The income, included within 'Other operating income', was presented as exceptional due to its size.

**(e) Impairment reversal on financial assets**

The 2024 reversal of $6m related to impairments originally recorded in 2020. These reversals, included within 'Impairment (loss)/

reversal on financial assets' in the Group income statement, were presented as exceptional for consistency with the treatment

of the corresponding impairments.

**(f) Impairment reversal on property, plant and equipment**

The 2024 reversal of $3m related to one hotel in the UK portfolio. The original impairment was recorded in 2020. The reversal,

included within 'Other net impairment charges' in the Group income statement, was presented as exceptional for consistency

with the treatment applied in prior years.

**(g) Impairment reversal on contract assets**

The 2024 reversal of $3m related to an impairment originally recorded in 2020. The reversal, included within 'Other net

impairment charges' in the Group income statement, was presented as exceptional for consistency with the treatment applied

in prior years.

**(h) Cash flows relating to operating exceptional items**

Comprises the cash flows within the year relating to all operating exceptional items from the current and previous periods.

---

| | | |
|:---|:---|:---|
| 202 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**7. Financial income and expenses**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024<sup>a</sup> | 2023<sup>a</sup> |
|  | $m | $m | $m |
| Financial income |  |  |  |
| Financial income on deposits and money market funds | 33 | 48 | 33 |
| Interest income on loans and other assets | 16 | 15 | 6 |
|  | 49 | 63 | 39 |
| Financial expenses |  |  |  |
| Interest expense on external borrowings | 165 | 131 | 85 |
| Interest expense on lease liabilities | 30 | 30 | 29 |
| Unwind of discount on deferred purchase consideration | – | – | 1 |
| Other charges | 7 | 17 | 11 |
|  | 202 | 178 | 126 |

---

**a.**In 2025, foreign exchange gains/(losses) have been presented on a separate line of the Group income statement. The 2024 and 2023 amounts were

previously presented within 'Financial expenses'.

Financial income comprises $34m (2024: $47m, 2023: $24m) relating to financial assets held at amortised cost and $15m

(2024: $16m, 2023: $15m) relating to financial assets held at FVTPL.

Interest expense on external borrowings and unwind of discount on deferred purchase consideration relate to financial liabilities

which are held at amortised cost. Other charges includes bank charges and non-bank interest expense.

In 2025, $44m (2024: $49m, 2023: $43m) was payable to the System Fund in relation to interest accumulated on the balance of

cash received in advance of the consumption of points awarded through the IHG One Rewards loyalty programme. The expense

and corresponding System Fund interest income are eliminated within financial expenses. On a net basis, financial income and

expenses includes $3m (2024: $1m, 2023: $1m) of other interest which is also attributable to the System Fund.

**8. Tax**

**Tax on profit for the year**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | United Kingdom | United Kingdom | United Kingdom | Other jurisdictions | Other jurisdictions | Other jurisdictions | Total | Total | Total |
|  | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 |
|  | $m | $m | $m | $m | $m | $m | $m | $m | $m |
| Current tax<sup>a</sup> |  |  |  |  |  |  |  |  |  |
| Current period | 15 | 24 | 16 | 306 | 292 | 245 | 321 | 316 | 261 |
| Adjustments in respect of prior periods | 2 | – | – | (3) | – | 12 | (1) | – | 12 |
|  | 17 | 24 | 16 | 303 | 292 | 257 | 320 | 316 | 273 |
| Deferred tax |  |  |  |  |  |  |  |  |  |
| Origination and reversal of temporary <br>differences<br>| 12 | 11 | 1 | (39) | (56) | (21) | (27) | (45) | (20) |
| Changes in tax rates and tax laws | – | – | – | – | – | 2 | – | – | 2 |
| Adjustments to unprovided or <br>unrecognised deferred tax<sup>b</sup><br>| – | – | – | 21 | – | 5 | 21 | – | 5 |
| Adjustments in respect of prior periods | 6 | (2) | 1 | (5) | – | (1) | 1 | (2) | – |
|  | 18 | 9 | 2 | (23) | (56) | (15) | (5) | (47) | (13) |
| Income tax charge for the year<sup>c</sup> | 35 | 33 | 18 | 280 | 236 | 242 | 315 | 269 | 260 |

---

a.Includes $6m (2024: $2m, 2023: $nil) in respect of taxes arising under the Pillar Two framework.

b.In 2025, relates to tax arising following the completion of an intragroup restructuring.

c.'Other jurisdictions' includes $205m (2024: $169m, 2023: $172m) in respect of US taxes.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 203 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**8. Tax continued**

The income tax charge includes the following exceptional items:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2024 | 2024 | 2023 | 2023 |
|  | Current<br>tax<br>| Deferred<br>tax<br>| Current<br>tax<br>| Deferred<br>tax<br>| Current<br>tax<br>| Deferred<br>tax<br>|
|  | $m | $m | $m | $m | $m | $m |
| Tax on operating exceptional items<sup>a</sup> | 4 | 1 | – | – | (3) | (4) |
| Exceptional tax charge<sup>b</sup> | (34) | 13 | – | – | – | – |
|  |  | (16) |  | – |  | (7) |

---

a.Comprises the tax impacts of the operating exceptional items in note 6.

b.Comprises a $34m current tax charge and a $34m deferred tax credit, both in respect of tax that arose on the acquisition of Holiday Inn in 1990,

and a $21m deferred tax charge following the completion of an intra-group restructuring transaction, which otherwise has had no impact on the

consolidated financial statements. These are presented as exceptional due to their size and non-recurring nature.

**Reconciliation of tax charge**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | % | % | % |
| Tax at UK blended rate | 25.0 | 25.0 | 23.5 |
| Tax credits | (0.5) | (0.6) | (0.5) |
| System Fund<sup>a</sup> | (0.1) | 1.2 | (1.3) |
| Foreign exchange losses/(gains) | (0.6) | 1.0 | (1.0) |
| Other permanent differences<sup>b</sup> | – | (0.5) | 0.9 |
| Non-recoverable foreign taxes | 3.0 | 2.4 | 1.3 |
| Net effect of different rates of tax<sup>c</sup> | 0.4 | 1.5 | 1.5 |
| Effect of substantive enactment of UAE tax rates and laws<sup>d</sup> | – | – | (0.9) |
| Effect of changes in other tax rates and laws | – | – | 0.2 |
| Items on which deferred tax arose but where no deferred tax is recognised<sup>e</sup> | 0.2 | 0.2 | 0.2 |
| Effect of adjustments to unprovided or unrecognised deferred taxes<sup>f</sup> | 1.9 | – | 0.5 |
| Adjustments to the tax charge in respect of prior periods<sup>g</sup> | – | (0.2) | 1.3 |
|  | 29.3 | 30.0 | 25.7 |

---

a.The System Fund is, in general, not subject to taxation.

b.Includes (0.8)%pts (2024: (1.0)%pts, 2023: (0.6)%pts) in respect of the US Foreign-Derived Intangible Income regime.

c.Includes 1.1%pts (2024: 1.2%pts, 2023: 1.3%pts) driven by the relatively high blended US rate, which includes US Federal and State taxes.

d.During 2023, law implementing a new corporate income tax regime was substantively enacted in the UAE. This resulted in the recognition

of a deferred tax asset of $9m in the UAE. Absent further law change, this benefit is not likely to reoccur.

e.Predominantly in respect of losses arising in the year.

f.Adjustments relating to estimated recoverable deferred tax assets. In 2025, relates to a deferred tax charge following the completion of an intra-group

restructuring transaction. In 2023, included 0.7%pts relating to the provision of previously unprovided deferred tax liabilities which arise on temporary

differences in subsidiaries.

g.Relates to the finalisation of tax returns, activity from tax authorities such as tax audits and the reassessment of provisions for uncertain tax positions.

**Factors that may affect the future tax charge**

Many factors will affect the Group's future tax rate, the main ones being future legislative developments, future profitability

of underlying subsidiaries and resolution of tax uncertainties.

In 2021, the OECD made proposals for worldwide tax reform under a two 'pillar' system – Pillar One and Pillar Two.

Pillar One (broadly, the reallocation of certain taxing rights to countries where customers are located) has not been enacted in

any jurisdiction and, in any event, the Group would not expect to be impacted. There has been no substantial progress by the

OECD on the Pillar One rules and there is no certainty as to whether these will be ever enacted.

Pillar Two seeks to impose a global minimum tax, essentially establishing a floor on corporate tax competition by ensuring a large

multinational enterprise is subject to tax in each jurisdiction at a 15% effective minimum tax rate. Pillar Two rules are in effect for

the Group and the Group's Pillar Two liability for 2025 is estimated to be $6m. The administration and compliance behind the

rules are burdensome and the Group will rely on transitional 'safe harbour' exemptions which remove the need to prepare full

calculations for Pillar Two for qualifying territories. The OECD agreed in January 2026 that these transitional arrangements would

be extended a further year, until the end of 2027, and announced a permanent safe harbour that will replace it. Based upon this

announcement, the Group expects that it will be able to rely on the permanent safe harbour for a number of key jurisdictions,

such as the US and China where the Group's blended effective tax rate exceeds 25%, and therefore considers the likelihood of

material future Pillar Two taxes arising to be low, based upon the current profile of the Group's business. The Group continues

to monitor external tax developments in this area, particularly as the new permanent safe harbour passes through the

legislative process.

---

| | | |
|:---|:---|:---|
| 204 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**8. Tax continued**

**Tax paid**

Total tax paid (net of refunds) of $307m (2024: $309m) is entirely in respect of operating activities. This comprises taxes paid

directly by Group entities to taxing authorities and taxes withheld at source in respect of fees payable to the Group. Taxes

withheld at source are paid by hotel owners to their local taxing authorities on behalf of the Group. The table below shows

the territories to whom taxes are directly paid by the Group which exceed $5m in the current or comparative periods, in

addition to the UK, the Group's headquarter jurisdiction. The increase between 2023 and 2024 is predominantly driven by

the corresponding increase to Group profitability and movement in deferred taxes. During 2025, exceptional tax of $34m

was paid without which there would have been a year-on-year decrease in taxes paid, as a result of tax reforms in the US.

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| China<sup>a</sup> | 13 | 11 | 5 |
| Japan<sup>a</sup> | 9 | 3 | 3 |
| Mexico<sup>b</sup> | 8 | 5 | 3 |
| Singapore<sup>a</sup> | 9 | 7 | 4 |
| United Kingdom<sup>b</sup> | 10 | 10 | 8 |
| United States<sup>b</sup> | 194 | 220 | 171 |
| Other jurisdictions | 17 | 15 | 12 |
|  | 260 | 271 | 206 |
| Taxes withheld at source | 47 | 38 | 37 |
| Tax paid per cash flow | 307 | 309 | 243 |
| Analysed as: |  |  |  |
| Exceptional tax paid<sup>c</sup> | 34 | – | – |
| Other | 273 | 309 | 243 |
|  | 307 | 309 | 243 |

---

a.Tax payments are typically based upon the previous year's profits.

b.Tax payments are typically based upon the current year's profits.

c.Exceptional tax paid of $34m in 2025 relates to the settlement of a tax liability in the United States which originally arose as a result of the acquisition

of Holiday Inn in 1990 and became due for payment in 2025. There was no net impact on the tax charge for any year presented. The payment is

classified as an exceptional cash flow due to its size and nature.

A reconciliation of tax paid to the current tax charge in the Group income statement is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| Current tax charge in the Group income statement | 320 | 316 | 273 |
| Current tax charge/(credit) in the Group statement of comprehensive income | 2 | (3) | (6) |
| Current tax credit taken directly to equity | (15) | (6) | (5) |
| Total current tax charge | 307 | 307 | 262 |
| Movements to tax contingencies<sup>a</sup> | (1) | (4) | (2) |
| Timing differences of cash tax paid and foreign exchange differences | 1 | 6 | (17) |
| Tax paid per cash flow | 307 | 309 | 243 |

---

a.Tax contingency movements are included within the current tax charge but do not impact cash tax paid in the year. Settlements of tax contingencies

are included within cash tax paid in the year but not recorded in the current year tax charge.

---

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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**8. Tax continued**

**Deferred tax**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Property, <br>plant, <br>equipment <br>and <br>software<br>| Application <br>fees<br>| Deferred <br>gains <br>on loan <br>notes<sup>a</sup><br>| Associates | Losses<sup>b</sup> | Deferred <br>compensation <br>and employee<br>benefits<br>| Deferred<br>revenue<sup>c</sup><br>| Research and<br>development<br>| Intangible <br>assets <br>excluding <br>software<br>| Other <br>short-term <br>temporary<br>differences<sup>d</sup><br>| Total |
|  | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m |
| At 1 January 2024 | (30) | 42 | (34) | (60) | 76 | 95 | – | 15 | (46) | 8 | 66 |
| Group income <br>statement<br>| 21 | – | – | 1 | (7) | 9 | 30 | 18 | (14) | (11) | 47 |
| Group statement of <br>comprehensive income<br>| – | – | – | – | (3) | – | – | – | – | (13) | (16) |
| Group statement of <br>changes in equity<br>| – | – | – | – | – | 9 | – | – | – | – | 9 |
| Exchange and other <br>adjustments<br>| – | – | – | – | (1) | – | – | – | – | (1) | (2) |
| At 31 December 2024 | (9) | 42 | (34) | (59) | 65 | 113 | 30 | 33 | (60) | (17) | 104 |
| Group income <br>statement<br>| (1) | 1 | 34 | 1 | – | 8 | 19 | (17) | (14) | (26) | 5 |
| Group statement of <br>comprehensive income<br>| – | – | – | – | – | – | – | – | – | 14 | 14 |
| Group statement of <br>changes in equity<br>| – | – | – | – | – | (6) | – | – | – | – | (6) |
| Exchange and other <br>adjustments<br>| 2 | – | – | – | 5 | 3 | – | – | 2 | – | 12 |
| At 31 December 2025 | (8) | 43 | – | (58) | 70 | 118 | 49 | 16 | (72) | (29) | 129 |

---

a.In 2025, movement is in respect of tax arising on the acquisition of Holiday Inn in 1990. This is included within the exceptional tax charge.

b.Wholly in respect of revenue losses.

c.The movements in 2024 arose as a result of a revised agreement with the IHG Owners Association (see note 3) and deferred revenue in respect

of co-branding agreements.

d.Primarily in respect of contract costs, right-of-use assets, unrealised foreign exchange and expected credit losses on trade receivables, none of

which has a balance exceeding $20m.

The analysis of the deferred tax balance after considering the offset of assets and liabilities within entities where there is a

legal right to do so and an analysis of the deferred tax balance showing all territories with balances greater than $10m in either

the current or prior year are as follows:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | $m | $m |
| Deferred tax assets | 146 | 122 |
| Deferred tax liabilities | (17) | (18) |
|  | 129 | 104 |
| Analysed as: |  |  |
| United Arab Emirates | 13 | 12 |
| United Kingdom | 92 | 99 |
| United States | 33 | – |
| Other | (9) | (7) |
|  | 129 | 104 |

---

A deferred tax asset of $4m (2024: $3m) has been recognised in legal entities which have made a loss in the current or the

previous year.

---

| | | |
|:---|:---|:---|
| 206 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**8. Tax continued**

Recoverability of UK deferred tax assets

The Group has recognised deferred tax assets of $92m (2024: $99m) in the UK. The major components are revenue losses

of $65m (2024: $62m) and tax depreciation of $30m (2024: $32m), reduced by a deferred tax liability of $19m (2024: $13m) on

past tax deductions in respect of intellectual property. The losses have arisen by identifiable non-recurring events, for example

special contributions into a former Group pension scheme and the impact of Covid-19, absent which, the UK tax group would

have been profitable, and there has been a history of loss usage since the Covid-19 restrictions eased. The losses do not expire,

although they can only be offset against 50% of annual UK taxable profits.

Unrecognised deferred tax assets

The Group does not recognise deferred tax assets if it cannot anticipate being able to offset them against existing deferred tax

liabilities or against future profits or gains.

The total unrecognised deferred tax position is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Gross | Gross | Unrecognised deferred <br>tax | Unrecognised deferred <br>tax |
|  | 2025 | 2024 | 2025 | 2024 |
|  | $m | $m | $m | $m |
| Revenue losses | 480 | 432 | 84 | 75 |
| Capital losses | 630 | 580 | 158 | 146 |
|  | 1110 | 1012 | 242 | 221 |
| Tax credits | 61 | 46 | 61 | 46 |
| Other<sup>a</sup> | 17 | 22 | 4 | 7 |
|  | 1188 | 1080 | 307 | 274 |

---

a.Primarily relates to costs incurred for which tax relief has not been obtained.

There is no expiry date to any of the above unrecognised assets other than for the losses and tax credits as shown in the

table below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Gross | Gross | Unrecognised deferred <br>tax | Unrecognised deferred <br>tax |
|  | 2025 | 2024 | 2025 | 2024 |
| Expiry date | $m | $m | $m | $m |
| 2025 | – | 11 | – | 2 |
| 2026 | 6 | 7 | 1 | 1 |
| 2027 | 6 | 7 | 1 | 1 |
| 2029 | 10 | 10 | 10 | 10 |
| 2032 | 15 | 15 | 15 | 15 |
| After 2032 | 34 | 21 | 34 | 21 |

---

Unprovided deferred tax liabilities

No deferred tax liability has been provided in respect of $42m (2024: $517m) of temporary differences relating to subsidiaries

(comprising undistributed earnings and inherent gains and losses).

**Uncertain tax positions**

Current tax payable includes $11m (2024: $9m) in respect of uncertain tax positions, with the largest single item not exceeding

$3m (2024: $3m). There are no amounts recognised in relation to uncertain tax positions within deferred tax in either the current

or prior year.

The Group's most material territories for tax are the US and the UK, and the Group has now agreed all US federal tax returns up

to and including 2020. The US Internal Revenue Service is conducting routine audits of the 2021 and 2022 US federal tax return

periods. The Group considers the risk of material adjustment to be low. In the UK, the Group has agreed all UK Corporation Tax

returns for periods up to 2023.

---

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---

**9. Dividends**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2024 | 2024 | 2023 | 2023 |
| Paid during the year | cents<br>per share<br>| $m | cents<br>per share<br>| $m | cents<br>per share<br>| $m |
| Final (declared for previous year) | 114.4 | 180 | 104.0 | 172 | 94.5 | 166 |
| Interim | 58.6 | 90 | 53.2 | 87 | 48.3 | 79 |
|  | 173.0 | 270 | 157.2 | 259 | 142.8 | 245 |

---

The final dividend in respect of 2025 of 125.9¢ per ordinary share (amounting to approximately $190m) is proposed for approval

at the AGM on 7 May 2026. The final dividend is first determined in US dollars and the sterling amount will be announced on

27 April 2026 using the average of the daily exchange rates for the three working days commencing 22 April 2026.

**10. Earnings per ordinary share**

---

| | | | |
|:---|:---|:---|:---|
| Basic earnings per ordinary share | 2025 | 2024 | 2023 |
| Profit available for equity holders ($m) | 758 | 628 | 750 |
| Basic weighted average number of ordinary shares (millions) | 154.4 | 161.2 | 169.0 |
| Basic earnings per ordinary share (cents) | 490.9 | 389.6 | 443.8 |
| Diluted earnings per ordinary share |  |  |  |
| Profit available for equity holders ($m) | 758 | 628 | 750 |
| Diluted weighted average number of ordinary shares (millions) | 155.8 | 163.0 | 170.0 |
| Diluted earnings per ordinary share (cents) | 486.5 | 385.3 | 441.2 |
| Basic and diluted share denominators are calculated as follows: |  |  |  |
|  | 2025<br>millions<br>| 2024<br>millions<br>| 2023<br>millions<br>|
| Weighted average number of ordinary shares in issue | 161.0 | 168.6 | 177.0 |
| Weighted average number of treasury shares<sup>a</sup> | (6.6) | (7.4) | (8.0) |
| Basic weighted average number of ordinary shares | 154.4 | 161.2 | 169.0 |
| Dilutive potential ordinary shares | 1.4 | 1.8 | 1.0 |
| Diluted weighted average number of ordinary shares | 155.8 | 163.0 | 170.0 |

---

a.Includes other shares that do not receive dividends.

---

| | | |
|:---|:---|:---|
| 208 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**11. Goodwill and other intangible assets**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Goodwill | Brands | Software | Management <br>agreements<br>| Other <br>intangibles<br>| Total |
|  | $m | $m | $m | $m | $m | $m |
| Cost |  |  |  |  |  |  |
| At 1 January 2024 | 516 | 439 | 825 | 122 | 24 | 1926 |
| Additions | – | – | 48 | – | 1 | 49 |
| Fully amortised assets written off | – | – | (49) | – | (1) | (50) |
| Disposals | – | – | (4) | – | – | (4) |
| Exchange and other adjustments | (5) | – | – | – | – | (5) |
| At 31 December 2024 | 511 | 439 | 820 | 122 | 24 | 1916 |
| Additions | – | 136 | 49 | – | – | 185 |
| Fully amortised assets written off | – | – | (87) | – | – | (87) |
| Exchange and other adjustments | 7 | 15 | 1 | – | 1 | 24 |
| At 31 December 2025 | 518 | 590 | 783 | 122 | 25 | 2038 |
| Amortisation and impairment |  |  |  |  |  |  |
| At 1 January 2024 | (180) | – | (528) | (103) | (16) | (827) |
| Provided | – | – | (17) | (1) | (1) | (19) |
| System Fund expense | – | – | (77) | – | (1) | (78) |
| Impairment charge | – | – | (2) | – | – | (2) |
| System Fund impairment charge | – | – | (3) | – | – | (3) |
| Fully amortised assets written off | – | – | 49 | – | 1 | 50 |
| Disposals | – | – | 4 | – | – | 4 |
| Exchange and other adjustments | – | – | 1 | – | – | 1 |
| At 31 December 2024 | (180) | – | (573) | (104) | (17) | (874) |
| Provided | – | – | (14) | (1) | (1) | (16) |
| System Fund expense | – | – | (75) | – | – | (75) |
| Fully amortised assets written off | – | – | 87 | – | – | 87 |
| Exchange and other adjustments | (3) | – | – | (1) | (1) | (5) |
| At 31 December 2025 | (183) | – | (575) | (106) | (19) | (883) |
| Net book value |  |  |  |  |  |  |
| At 31 December 2025 | 335 | 590 | 208 | 16 | 6 | 1155 |
| At 31 December 2024 | 331 | 439 | 247 | 18 | 7 | 1042 |
| At 1 January 2024 | 336 | 439 | 297 | 19 | 8 | 1099 |

---

---

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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 209 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**11. Goodwill and other intangible assets continued**

**Goodwill and brands**

Brands

During the year, the Group acquired the Ruby brand and related intellectual property. The transaction is accounted for as

an asset acquisition. The brand was recognised at cost of €129m ($136m), including the fair value of contingent purchase

consideration at the acquisition date of €15m ($16m).

The carrying value of acquired brands at 31 December 2025 was $590m, including Ruby ($151m), Kimpton ($193m),

Regent ($57m) and Six Senses ($189m). Each brand is considered to have an indefinite life given their strong brand awareness and

reputation, and management's commitment to continued investment in their growth. The brands are protected by trademarks

and there are not believed to be any legal, regulatory or contractual provisions that limit the useful lives of the brands. In the

hotel industry there are a number of brands that have existed for many years and IHG has brands that are over 60 years old.

Allocation of goodwill and brands to CGUs

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Americas (group of <br>CGUs)<br>| EMEAA (group of <br>CGUs)<br>| Greater China | Total |
|  | $m | $m | $m | $m |
| At 1 January 2024<sup>a</sup> | 282 | 415 | 78 | 775 |
| Allocation adjustments<sup>a</sup> | 3 | (3) | – | – |
| Exchange adjustments | – | (5) | – | (5) |
| At 31 December 2024<sup>a</sup> | 285 | 407 | 78 | 770 |
| Additions | – | 136 | – | 136 |
| Allocation adjustments | (14) | 13 | 1 | – |
| Exchange adjustments | – | 19 | – | 19 |
| At 31 December 2025 | 271 | 575 | 79 | 925 |
| Analysed as: |  |  |  |  |
| Goodwill | 132 | 195 | 8 | 335 |
| Brands | 139 | 380 | 71 | 590 |

---

a.The Group has revised the methodology used to allocate brands to groups of CGUs. Brands, which are corporate assets for the purpose of impairment

testing, were previously allocated based on long-term trading expectations at the time the asset was acquired. They are now allocated based on the

current distribution of open and pipeline rooms to better reflect their deployment across the groups of CGUs at each reporting date. The change in

policy reduced the allocation to Americas at 31 December 2025 by $173m (2024: $134m) and increased the allocation to EMEAA and Greater China by

$124m (2024: $80m) and $49m (2024: $54m), respectively. No impairments arose under either policy. There is no change to the allocation of goodwill.

The recoverable amounts of the CGUs, or groups of CGUs, have been determined from value in use calculations. The key

assumptions are RevPAR growth (detailed on page [183](#i39206f57a9214006b97933da74f0a7c9_69436) within 'Going concern'), terminal growth rates and pre-tax discount rates.

Cash flows beyond the five-year period are extrapolated using terminal growth rates that do not exceed the average long-term

growth rates for the relevant markets. Cash flow projections are discounted using pre-tax rates that are based on the Group's

weighted average cost of capital and incorporate adjustments reflecting risks specific to the territory of the CGU.

The weighted average terminal growth rates and pre-tax discount rates are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2024 | 2024 |
|  | Terminal <br>growth rate<br>| Pre-tax <br>discount rate<br>| Terminal <br>growth rate<br>| Pre-tax <br>discount rate<br>|
|  | % | % | % | % |
| Americas | 2.0 | 12.0 | 2.1 | 11.6 |
| EMEAA | 2.3 | 12.9 | 2.5 | 13.6 |
| Greater China | 2.5 | 9.9 | 2.5 | 10.5 |

---

Given the significant amounts by which the recoverable amounts exceed the carrying values, and reflecting the number of years

of Base Case forecasts required to recover the carrying value, management have determined that impairment charges would

not arise from reasonably possible changes in the key assumptions.

**Software**

Software includes $60m relating to the development of the next-generation Guest Reservation System with Amadeus

of which $55m is internally developed software which is being amortised over seven to 10 years, with two years remaining

at 31 December 2025.

In 2024, a total of $5m impairment was charged relating to assets which had been replaced as a result of more recent initiatives.

**Management agreements**

Management agreements relate to contracts recognised at fair value on acquisition. The weighted average remaining

amortisation period for all management agreements is 11 years (2024: 13 years).

---

| | | |
|:---|:---|:---|
| 210 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**12. Property, plant and equipment**

---

| | | | |
|:---|:---|:---|:---|
|  | Land and <br>buildings<br>| Fixtures, <br>fittings and <br>equipment<br>| Total |
|  | $m | $m | $m |
| Cost |  |  |  |
| At 1 January 2024 | 111 | 300 | 411 |
| Additions | – | 27 | 27 |
| Fully depreciated assets written off | (3) | (27) | (30) |
| Disposals | (8) | (8) | (16) |
| Exchange and other adjustments | (1) | (4) | (5) |
| At 31 December 2024 | 99 | 288 | 387 |
| Additions | – | 28 | 28 |
| Fully depreciated assets written off | – | (32) | (32) |
| Disposals | – | (1) | (1) |
| Exchange and other adjustments | – | 10 | 10 |
| At 31 December 2025 | 99 | 293 | 392 |
| Depreciation and impairment |  |  |  |
| At 1 January 2024 | (54) | (204) | (258) |
| Provided | (3) | (21) | (24) |
| System Fund expense | – | (4) | (4) |
| Impairment reversal | – | 3 | 3 |
| Fully depreciated assets written off | 3 | 27 | 30 |
| Disposals | – | 8 | 8 |
| Exchange and other adjustments | 1 | 3 | 4 |
| At 31 December 2024 | (53) | (188) | (241) |
| Provided | (3) | (24) | (27) |
| System Fund expense | – | (3) | (3) |
| Impairment charge | (1) | – | (1) |
| Fully depreciated assets written off | – | 32 | 32 |
| Disposals | – | 1 | 1 |
| Exchange and other adjustments | – | (5) | (5) |
| At 31 December 2025 | (57) | (187) | (244) |
| Net book value |  |  |  |
| At 31 December 2025 | 42 | 106 | 148 |
| At 31 December 2024 | 46 | 100 | 146 |
| At 1 January 2024 | 57 | 96 | 153 |

---

The Group's property, plant and equipment mainly comprises buildings and leasehold improvements on 17 hotels (2024: 17 hotels),

and offices and computer hardware throughout the world.

---

| | | | | | | | |
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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**13. Leases**

**Right-of-use assets**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Land and <br>buildings<br>| Investment <br>property<br>| Other | Total |
|  | $m | $m | $m | $m |
| Cost |  |  |  |  |
| At 1 January 2024 | 534 | 52 | 3 | 589 |
| Additions and other remeasurements | 28 | – | 5 | 33 |
| Transfers to finance lease receivable | (13) | (14) | (4) | (31) |
| Terminations | (11) | – | (1) | (12) |
| Exchange and other adjustments | (5) | – | – | (5) |
| At 31 December 2024 | 533 | 38 | 3 | 574 |
| Additions and other remeasurements | 16 | – | 1 | 17 |
| Terminations | (2) | – | – | (2) |
| Exchange and other adjustments | 8 | – | – | 8 |
| At 31 December 2025 | 555 | 38 | 4 | 597 |
| Depreciation and impairment |  |  |  |  |
| At 1 January 2024 | (266) | (49) | (1) | (316) |
| Provided | (21) | – | (1) | (22) |
| System Fund expense | 2 | – | – | 2 |
| Transfers to finance lease receivable | 8 | 13 | – | 21 |
| Terminations | 11 | – | 1 | 12 |
| Exchange and other adjustments | 5 | – | – | 5 |
| At 31 December 2024 | (261) | (36) | (1) | (298) |
| Provided | (23) | – | (1) | (24) |
| System Fund expense | (1) | – | – | (1) |
| Impairment charge | (1) | – | – | (1) |
| Terminations | 2 | – | – | 2 |
| Exchange and other adjustments | (6) | – | – | (6) |
| At 31 December 2025 | (290) | (36) | (2) | (328) |
| Net book value |  |  |  |  |
| At 31 December 2025 | 265 | 2 | 2 | 269 |
| At 31 December 2024 | 272 | 2 | 2 | 276 |
| At 1 January 2024 | 268 | 3 | 2 | 273 |

---

---

| | | |
|:---|:---|:---|
| 212 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**13. Leases continued**

The Group's leased assets mainly comprise hotels and offices. Leases contain a wide range of different terms and conditions.

The term of property leases ranges from one to ninety-nine years. The weighted average lease term remaining on the Group's

top eight leases (which comprise 95% (2024: 95%) of the total lease liability) is 57 years (2024: 56 years). The InterContinental

Boston lease, expiring in 2105, has a significant impact on this weighted average lease term; excluding this lease the weighted

average lease term is six years (2024: seven years). Undiscounted cash flows on the Boston lease of $3,170m (2024: $3,191m)

represent 95% (2024: 95%) of the total undiscounted cash flows relating to lease liabilities.

Many of the Group's property leases contain extension or early termination options, which are used for operational flexibility.

The lease agreement over the US corporate headquarters contains a material extension option which is not included in the

calculation of the lease asset and liability as the extension would not take effect before 2031 and there is no reasonable certainty

the option will be exercised. The value of the undiscounted rental payments relating to this lease and not included in the value

of the lease asset and liability is $339m. Additionally, the Group has the option to extend the term of the InterContinental Boston

lease for two additional 20-year terms, the first of which would take effect from 2105. These extension options have not been

included in the calculation of the lease liability.

**Lease liabilities**

The Group's lease liabilities are discounted at incremental borrowing rates of up to 9.9%. The rate implicit in the InterContinental

Boston lease was 9.7% and was derived from a valuation of the hotel at lease inception in 2006.

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Currency | $m | $m |
| US dollars | 343 | 357 |
| Sterling | 32 | 31 |
| Euros | 5 | 3 |
| Other | 26 | 23 |
|  | 406 | 414 |
| Analysed as: |  |  |
| Current | 28 | 26 |
| Non-current | 378 | 388 |
|  | 406 | 414 |

---

The maturity analysis of lease liabilities is disclosed in note 23.

The Group's lease liability is not materially sensitive to inflation as $326m (2024: $335m) relates to the InterContinental Boston

and the US corporate headquarters, which both include fixed payments and are not subject to inflationary adjustments.

**Amounts recognised in the Group income statement**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| Depreciation of right-of-use assets | 24 | 22 | 22 |
| System Fund depreciation of right-of-use assets | 1 | (2) | 2 |
| Impairment charge | 1 | – | – |
| Expense relating to variable lease payments | 84 | 77 | 62 |
| Expense relating to short-term leases and low-value assets | 2 | 1 | 2 |
| Income from operating subleases | (7) | (3) | (2) |
| Recognised in operating profit | 105 | 95 | 86 |
| Interest on lease liabilities | 30 | 30 | 29 |
| Total recognised in the Group income statement | 135 | 125 | 115 |

---

**Amounts recognised in the Group statement of cash flows**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| Operating activities | 107 | 108 | 92 |
| Investing activities | (4) | (4) | – |
| Financing activities | 30 | 46 | 28 |
| Net cash paid | 133 | 150 | 120 |

---

---

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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**14. Investment in associates and joint ventures**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | $m | $m |
| Cost |  |  |
| **At 1 January** | 108 | 101 |
| Additions | 11 | 6 |
| Share of profits | 6 | 10 |
| System Fund share of losses | (2) | (2) |
| Dividends and distributions | (13) | (7) |
| Exchange and other adjustments | 2 | – |
| At 31 December | 112 | 108 |
| Impairment |  |  |
| **At 1 January** | (57) | (53) |
| **Impairment charge** | – | (4) |
| At 31 December | (57) | (57) |
| Net book value | 55 | 51 |
| Analysed as: |  |  |
| Associates | 39 | 46 |
| Joint ventures | 16 | 5 |
|  | 55 | 51 |

---

**Impairment**

In 2024, the impairment charge of $4m related to an associate in the Americas region and arose due to a decline in

trading conditions.

---

| | | |
|:---|:---|:---|
| 214 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**15. Other financial assets**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | $m | $m |
| Equity securities | 93 | 97 |
| Restricted funds: |  |  |
| Ring-fenced amounts to satisfy insurance claims: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | – | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money market funds | 7 | 10 |
| Accounts pledged as security | 27 | 31 |
| Other | 2 | 1 |
|  | 36 | 43 |
| Trade deposits and loans | 85 | 79 |
|  | 214 | 219 |
| Analysed as: |  |  |
| Current | 3 | 7 |
| Non-current | 211 | 212 |
|  | 214 | 219 |

---

**Restricted funds**

Amounts ring-fenced to satisfy insurance claims are principally held in the Group's Captive, which is a regulated entity.

The accounts pledged as security are subject to a charge in favour of the members of the UK unfunded pension arrangement

(see note 26). During 2025, £5m ($7m) of the charge was released. The accounts will be pledged as security until the date at

which the UK unfunded pension liabilities have been fully discharged, unless otherwise agreed with the trustees, and amounts

pledged may change in future years.

**Expected credit losses**

Other financial assets with a net book value of $53m (2024: $50m) are subject to the expected credit loss model requirements

of IFRS 9. Equity securities, money market funds and other amounts measured at fair value are excluded. The gross value of

trade deposits and loans that were subject to the expected credit loss requirements is $56m with credit loss allowances

of $5m (2024: $51m gross, $3m allowance). Other expected credit losses are considered to be immaterial.

**Credit risk**

Restricted funds are held with bank counterparties which are rated at least A+ based on S&P's ratings. Trade deposits and loans

are entered into with creditworthy third parties, subject to credit verification procedures. The maximum exposure to credit risk

of other financial assets at the end of the reporting period is their carrying value of $214m (2024: $219m).

**16. Trade and other receivables**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | $m | $m |
| Current |  |  |
| Trade receivables | 698 | 651 |
| Other receivables | 49 | 41 |
| Prepayments | 86 | 93 |
|  | 833 | 785 |
| Non-current |  |  |
| Finance lease receivables | 7 | 12 |
| Other receivables | 7 | 5 |
| Prepayments | 5 | 18 |
|  | 19 | 35 |

---

---

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---

**16. Trade and other receivables continued**

**Expected credit losses**

The ageing of trade receivables shown below reflects the initial terms under the invoice rather than the revised terms in cases

where payment flexibility has been provided to owners. The net balances presented in the table below could result in additional

credit losses if they are ultimately found to be uncollectable. Expected credit losses relating to other receivables following their

initial recognition are immaterial.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | 2025 |  |  | 2024 |
|  | Gross | Credit loss <br>allowance<br>| Net | Gross | Credit loss <br>allowance<br>| Net |
|  | $m | $m | $m | $m | $m | $m |
| Not past due | 400 | – | 400 | 384 | – | 384 |
| Past due 1 to 30 days | 105 | (5) | 100 | 90 | (4) | 86 |
| Past due 31 to 90 days | 81 | (6) | 75 | 80 | (5) | 75 |
| Past due 91 to 180 days | 59 | (10) | 49 | 53 | (8) | 45 |
| Past due 181 to 360 days | 59 | (19) | 40 | 66 | (19) | 47 |
| Past due more than 361 days | 144 | (110) | 34 | 98 | (84) | 14 |
|  | 848 | (150) | 698 | 771 | (120) | 651 |

---

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Movement in the allowance for expected credit losses | $m | $m |
| At 1 January | (120) | (106) |
| Impairment loss | (20) | (16) |
| System Fund impairment loss | (19) | (9) |
| Amounts written off | 13 | 8 |
| Exchange and other adjustments | (4) | 3 |
| At 31 December | (150) | (120) |

---

**Credit risk**

The Group trades only with recognised, creditworthy third parties. It is the Group's policy that all customers who wish to trade on

credit terms are subject to credit verification procedures. The maximum exposure to credit risk for trade and other receivables,

excluding prepayments, at the end of the reporting period is their carrying value of $761m (2024: $709m).

**17. Cash and cash equivalents**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | $m | $m |
| Cash at bank and in hand | 180 | 142 |
| Short-term deposits | 515 | 411 |
| Money market funds | 334 | 415 |
| Repurchase agreements | 100 | 40 |
| Cash and cash equivalents as recorded in the Group statement of financial position | 1129 | 1008 |
| Bank overdrafts | (3) | (17) |
| Cash and cash equivalents as recorded in the Group statement of cash flows | 1126 | 991 |

---

Cash at bank and in hand includes bank balances of $28m (2024: $33m) which are matched by bank overdrafts of $3m

(2024: $17m) under the Group's cash pooling arrangements. Under these arrangements, each pool contains a number of bank

accounts with the same financial institution and interest is paid/received on pooled net balances for each currency. The cash

pools are used for day-to-day cash management purposes and are managed as closely as possible to a zero balance on a

net basis for each pool. Overseas subsidiaries are typically in a cash-positive position with the matching overdrafts, which are

repayable on demand, held by the Group's central treasury company in the UK. Accordingly, bank overdrafts are included

within cash and cash equivalents for the purposes of the cash flow statement.

---

| | | |
|:---|:---|:---|
| 216 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**17. Cash and cash equivalents continued**

**Cash and cash equivalents with restrictions on use**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | $m | $m |
| Countries with restrictions on repatriation | 4 | 2 |
| Capital expenditure under lease agreements | 17 | 15 |
| Other restrictions | 6 | 5 |
|  | 27 | 22 |

---

Details of the credit risk on cash and cash equivalents is included in note 23.

**18. Trade and other payables**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | $m | $m |
| Current |  |  |
| Trade payables | 103 | 111 |
| Other tax and social security payables | 57 | 61 |
| Other payables | 114 | 116 |
| Contingent purchase consideration (note 24) | 38 | – |
| Accruals | 364 | 362 |
|  | 676 | 650 |
| Non-current |  |  |
| Other payables | 9 | 5 |
| Contingent purchase consideration (note 24) | 60 | 73 |
|  | 69 | 78 |

---

**Third-party bank loan guarantees**

At 31 December 2025, the Group has issued financial guarantee contracts of up to $26m (2024: $31m). The carrying amount

of these guarantees was $nil in all periods presented. The largest guarantee has a gross guaranteed amount of $21m

(2024: $21m) and the underlying loan matures in 2029. Should the Group fund any amount under the guarantee, there is a

cross-indemnity that the Group would seek to pursue for the other parties' share.

**19. Provisions**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Commercial <br>litigation and <br>disputes<br>| Self-<br>insurance <br>reserves<br>| Other | Total |
|  | $m | $m | $m | $m |
| At 31 December 2024 | 14 | 9 | 16 | 39 |
| Provided | 16 | 11 | 4 | 31 |
| Utilised | (15) | (9) | – | (24) |
| Released | (3) | – | (2) | (5) |
| Exchange and other adjustments | – | – | 2 | 2 |
| At 31 December 2025 | 12 | 11 | 20 | 43 |
| Analysed as: |  |  |  |  |
| Current | 11 | 4 | 6 | 21 |
| Non-current | 1 | 7 | 14 | 22 |
|  | 12 | 11 | 20 | 43 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 217 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**19. Provisions continued**

**Self-insurance reserves**

Self-insurance reserves consist of $7m of incurred but not reported ('IBNR') reserves and $4m of claims reported but not yet

settled. $6m of these amounts relates to employment-related obligations. The utilisation of IBNR reserves is dependent on the

timing of claims being reported and ultimately being settled; based on historical experience this is expected to be settled within

five years. The maximum liabilities of the last five policy years is $131m, noting that actual claims did not significantly differ to

estimates in 2025 or 2024.

**Other**

Other predominantly includes dilapidations provisions relating to leased properties.

**20. Insurance**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | $m | $m |
| At 1 January | 39 | 37 |
| Insurance expenses | 32 | 28 |
| Claims and other amounts paid | (24) | (23) |
| Impact of discounting and other changes | (2) | (3) |
| At 31 December | 45 | 39 |
| Analysed as: |  |  |
| Current | 16 | 14 |
| Non-current | 29 | 25 |
|  | 45 | 39 |
| Incurred but not reported claims<sup>a</sup> | 24 | 18 |
| Reported but not settled claims | 21 | 21 |
|  | 45 | 39 |

---

a.Includes unallocated loss expenses.

Of the total reserves, $19m (2024: $15m) relates to international general liability and $20m (2024: $17m) relates to workers'

compensation. The utilisation of IBNR reserves is dependent on the timing of claims being reported and ultimately being settled;

based on historical experience the majority are expected to be settled within five years (2024: five years). The maximum liabilities

of the last five policy years is $77m (2024: $71m). Actual claims have not significantly differed from estimates in the last five years.

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | $m | $m |
| Revenue from insurance activities | 27 | 23 |
| Insurance expenses (inclusive of overhead costs) | (36) | (29) |
| Insurance result | (9) | (6) |

---

---

| | | |
|:---|:---|:---|
| 218 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**21. Loans and other borrowings**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | Discount at <br>issue<br>| 2025 | 2024 |
|  | Maturity date | % | $m | $m |
| Current |  |  |  |  |
| Bank overdrafts (note 17) | n/a | n/a | 3 | 17 |
| £300m 3.750% bonds 2025 | 14 August 2025 | 0.986 | – | 381 |
| £350m 2.125% bonds 2026 | 24 August 2026 | 0.550 | 475 | – |
|  |  |  | 478 | 398 |
| Non-current |  |  |  |  |
| £350m 2.125% bonds 2026 | 24 August 2026 | 0.550 | – | 441 |
| €500m 2.125% bonds 2027 | 15 May 2027 | 0.470 | 594 | 526 |
| £400m 3.375% bonds 2028 | 8 October 2028 | 1.034 | 539 | 502 |
| €600m 4.375% bonds 2029 | 28 November 2029 | 0.098 | 705 | 623 |
| €850m 3.375% bonds 2030 | 10 September 2030 | 0.483 | 1000 | – |
| €750m 3.625% bonds 2031 | 27 September 2031 | 0.116 | 885 | 784 |
|  |  |  | 3723 | 2876 |
| Total loans and other borrowings |  |  | 4201 | 3274 |
| Denominated in the following currencies: |  |  |  |  |
| Sterling |  |  | 1014 | 1324 |
| US dollars |  |  | 3 | 16 |
| Euros |  |  | 3184 | 1933 |
| Other |  |  | – | 1 |
|  |  |  | 4201 | 3274 |

---

**Bonds**

Interest is payable annually on the dates in the table, at the rates stated.

**Revolving Credit Facility ('RCF')**

In December 2025, the Group entered into a new $1,500m syndicated RCF which matures in 2030. A variable rate of interest

is payable on amounts drawn. The previous facility of $1,350m was cancelled during the year.

The maximum amount drawn during the period was $75m (2024: $nil). There were no amounts drawn at 31 December 2025

nor 31 December 2024.

The Group has no uncommitted facilities at 31 December 2025 (2024: $nil).

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 219 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**22. Net debt**

---

| | | | |
|:---|:---|:---|:---|
|  |  | 2025 | 2024 |
|  |  | $m | $m |
| Cash and cash equivalents | Cash and cash equivalents | 1129 | 1008 |
| Loans and other borrowings  | – current | (478) | (398) |
|  | – non-current | (3723) | (2876) |
| Lease liabilities | – current | (28) | (26) |
|  | – non-current | (378) | (388) |
| Principal amounts payable on maturity of derivative financial instruments (note 23) | Principal amounts payable on maturity of derivative financial instruments (note 23) | 145 | (102) |
| Net debt |  | (3333) | (2782) |

---

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Movement in net debt | $m | $m |
| Net increase/(decrease) in cash and cash equivalents, net of overdrafts | 94 | (269) |
| Add back financing cash flows in respect of other components of net debt: |  |  |
| Principal element of lease payments | 30 | 46 |
| Issue of long-term bonds | (990) | (834) |
| Repayment of long-term bonds | 403 | 547 |
| Settlement of currency swaps | – | 45 |
| Drawdown of Revolving Credit Facility | (75) | – |
| Repayment of Revolving Credit Facility | 75 | – |
|  | (557) | (196) |
| Increase in net debt arising from cash flows | (463) | (465) |
| Other movements: |  |  |
| Lease liabilities | (19) | (36) |
| Increase in accrued interest | (2) | (6) |
| Exchange and other adjustments | (67) | (3) |
|  | (88) | (45) |
| Increase in net debt | (551) | (510) |
| Net debt at beginning of the year | (2782) | (2272) |
| Net debt at end of the year | (3333) | (2782) |

---

---

| | | |
|:---|:---|:---|
| 220 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**22. Net debt continued**

Loans and other borrowings (excluding bank overdrafts), lease liabilities and currency swaps and forwards comprise the liabilities

included in the financing activities section of the Group statement of cash flows and their movements are analysed as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | At 1 January <br>2025<br>| Financing <br>cash flows<br>| Exchange <br>adjustments<br>| Other<sup>a,b</sup> | At <br>31 December <br>2025<br>|
|  | $m | $m | $m | $m | $m |
| Lease liabilities | 414 | (30) | 3 | 19 | 406 |
| Bonds | 3257 | 587 | 362 | (8) | 4198 |
|  | 3671 | 557 | 365 | 11 | 4604 |
| Currency swaps | 78 | – | – | (154) | (76) |
| Currency forwards | (4) | – | – | (28) | (32) |
|  | 3745 | 557 | 365 | (171) | 4496 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | At 1 January <br>2024<br>| Financing <br>cash flows<br>| Exchange <br>adjustments<br>| Other<sup>a,b</sup> | At <br>31 December <br>2024<br>|
|  | $m | $m | $m | $m | $m |
| Lease liabilities | 426 | (46) | (2) | 36 | 414 |
| Bonds | 3122 | 287 | (157) | 5 | 3257 |
|  | 3548 | 241 | (159) | 41 | 3671 |
| Currency swaps | 20 | (45) | – | 103 | 78 |
| Currency forwards | (15) | – | – | 11 | (4) |
|  | 3553 | 196 | (159) | 155 | 3745 |

---

a.The non-cash increase in lease liabilities principally arises from additions and other remeasurements.

b.The change in value of currency swaps and forwards represents fair value movements and additions.

**23. Financial risk management and derivative financial instruments** 

**Overview**

The Group is exposed to financial risks that arise in relation to underlying business activities. These risks include: market risk,

liquidity risk, credit risk and capital risk. There are Board approved policies in place to manage these risks. Treasury activities to

manage these risks may include money market funds, repurchase agreements, spot and forward foreign exchange instruments,

currency swaps, interest rate swaps and forward rate agreements.

**Market risk**

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in

market prices. Market risk comprises: foreign exchange risk and interest rate risk. Financial instruments affected by market risk

include loans and other borrowings, cash and cash equivalents, trade loans and deposits, equity investments and derivatives.

Foreign exchange risk

Movements in foreign exchange rates can affect the Group's reported profit or loss and net liabilities. The most significant

exposures of the Group are in currencies that are freely convertible. The Group's reported debt has an exposure to borrowings

held in sterling and euros. After the effect of currency swaps, the Group holds its bond debt in sterling, which is the primary

currency of shareholder returns, and in US dollars, the predominant currency of the Group's revenue and cash flows. US dollar

borrowings or currency derivatives also act as a net investment hedge of US dollar denominated assets.

When the Group borrows in a currency that differs from the borrowing entity's functional currency, it enters into currency swaps

at the same time to minimise foreign exchange risk. Currency swaps were transacted against the €500m 2.125% 2027 bonds,

in November 2018, converting the proceeds and interest into sterling. Similar currency swaps were transacted for the €600m

4.375% 2029 bonds in November 2023, €750m 3.625% 2031 bonds in September 2024 and €850m 3.375% 2030 bonds in

September 2025, converting the proceeds and interest into US dollars (see page [221](#i7faf3930a00e47a18bb6c50e3b5a9033_9794)).

Interest rate risk

The Group's policy requires a minimum of 50% fixed rate debt. With the exception of overdrafts, 100% of borrowings were fixed

rate debt at 31 December 2025 (2024: 100%).

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 221 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**23. Financial risk management and derivative financial instruments continued**

Derivative financial instruments

Derivatives are recorded in the Group statement of financial position at fair value (see note 24) as follows:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Derivatives | $m | $m |
| Currency swaps | 76 | (78) |
| Currency forwards | 32 | 4 |
|  | 108 | (74) |
| Analysed as: |  |  |
| Non-current assets | 120 | 4 |
| Non-current liabilities | (12) | (78) |
|  | 108 | (74) |

---

The carrying amount of currency swaps and forwards comprises a $145m gain (2024: $102m loss) relating to exchange

movements on the underlying principal, included within net debt (see note 22), and a $37m loss (2024: $28m gain) relating

to other fair value movements.

Details of the credit risk on derivative financial instruments are included on page [223](#i7faf3930a00e47a18bb6c50e3b5a9033_9799).

Currency swaps and forwards have been transacted as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Date of<br>designation<br>| Hedge<br>type<br>| Pay<br>leg<br>| Interest<br>rate<br>| Receive<br>leg<br>| Interest<br>rate<br>| Maturity | Risk | Hedged item |
| November 2018 | Cash flow | £436m | 3.493% | €500m | 2.125% | May 2027 | Foreign exchange | €500m 2.125% bonds 2027 |
| November 2023 | Cash flow | $657m | 5.975% | €600m | 4.375% | November 2029 | Foreign exchange | €600m 4.375% bonds 2029 |
| September 2024 | Cash flow | $834m | 4.903% | €750m | 3.625% | September 2031 | Foreign exchange | €750m 3.625% bonds 2031 |
| September 2025 | Cash flow | $990m | 4.874% | €850m | 3.375% | September 2030 | Foreign exchange | €850m 3.375% bonds 2030 |
| October 2023 | Net <br>investment<br>| $425m | n/a | £344m | n/a | October 2028 | Spot foreign <br>exchange<br>| Net assets of specified <br>subsidiaries with US dollar <br>functional currency<br>|

---

Cash flow hedges

There is an economic relationship between the hedged item and the hedging instrument as the critical terms are aligned,

such that the hedge ratio is 1:1.

The change in the fair value of hedging instruments used to measure hedge ineffectiveness in the period mirrors that of the

hypothetical derivative (hedged item) and was a $151m gain (2024: $90m loss).

Hedge ineffectiveness arises where the cumulative change in the fair value of the swaps exceeds the change in fair value

of the future cash flows of the bonds, and may be due to any opening fair value of the hedging instrument, or a change

in the credit risk of the Group or counterparty. The cumulative ineffectiveness is immaterial in all years presented.

Amounts recognised in the cash flow hedge reserves are analysed in note 28.

Net investment hedges

The Group currently designates the following as net investment hedges of its foreign operations, being the net assets of certain

Group subsidiaries with a US dollar functional currency:

–Borrowings under the RCF;

–Long-dated currency forward contracts; and

–Certain short-dated foreign exchange swaps.

There is an economic relationship between the hedged item and the hedging instrument as the net investment creates a foreign

exchange risk that will match the foreign exchange risk on the US dollar borrowings or foreign exchange swaps or forwards. The

hedge ratio is 1:1 as the underlying risk of the hedging instrument is identical to the hedged risk component. Hedge effectiveness

is assessed by comparing changes in the carrying amount of the hedging instrument that is attributable to a change in the spot

rate with changes in the investment in the foreign operation due to movements in the spot rate.

The change in value of hedging instruments recognised in the currency translation reserve through other comprehensive

income was a gain of $35m (2024: $7m loss). The cumulative ineffectiveness is immaterial in all years presented.

---

| | | |
|:---|:---|:---|
| 222 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**23. Financial risk management and derivative financial instruments continued**

Interest and foreign exchange risk sensitivities

The following table shows the impact of a general strengthening in the US dollar against sterling and euro on the Group's

profit or loss before tax and net liabilities, and the impact of a rise in US dollar and sterling interest rates on the Group's profit

before tax. The impact of the strengthening in the euro against sterling on net liabilities is also shown, as this impacts the fair

value of the currency swaps.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | 2025 | 2024 | 2023 |
|  |  | $m | $m | $m |
| (Decrease)/increase in profit before tax |  |  |  |  |
| Sterling: US dollar exchange rate | $0.05 fall | (8) | (38) | (14) |
| Euro: US dollar exchange rate | $0.05 fall | (4) | (7) | (3) |
| US dollar interest rates | 1% increase | 4 | 4 | 2 |
| Sterling interest rates | 1% increase | 5 | 3 | 9 |
| Decrease/(increase) in net liabilities |  |  |  |  |
| Sterling: US dollar exchange rate | $0.05 fall | (12) | 3 | (12) |
| Euro: US dollar exchange rate | $0.05 fall | 21 | 25 | 49 |
| Sterling: euro exchange rate | €0.05 fall | 34 | 31 | 64 |

---

Exchange rate sensitivity on profit before tax predominantly relates to the Group's internal funding structure. The sensitivity

is calculated using the intra-group balances at 31 December which can be subject to change over time. The sensitivity on net

liabilities predominantly relates to the net impact of changes in bonds and the fair value of derivatives.

Interest rate sensitivity relates to cash and overdraft balances. 100% of bonds, and the related derivatives, are fixed.

**Liquidity risk**

Group policy ensures sufficient liquidity is maintained to meet all foreseeable medium-term cash requirements and provide

headroom against unforeseen obligations.

Cash and cash equivalents are held in short-term deposits, repurchase agreements and cash funds which allow daily

withdrawals of cash. Most of the Group's funds are held in the UK or US, although $4m (2024: $2m) is held in countries where

repatriation is restricted (see note 17).

Medium- and long-term borrowing requirements are met through committed bank facilities and bonds as detailed in note 21.

In December 2025, the Group entered into a new RCF, replacing the previous facility. The new facility does not contain financial

covenant measures.

The interest margin payable on the RCF is linked to the Group's credit rating and is currently 0.45%.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 223 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**23. Financial risk management and derivative financial instruments continued**

The following are the undiscounted contractual cash flows of financial liabilities, including interest payments and derivative

financial instruments. Liabilities relating to the Group's deferred compensation plan are excluded; their settlement is funded

entirely by the realisation of the related deferred compensation plan investments and no net cash flow arises.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Less than<br>1 year<br>| Between<br>1 and 2<br>years<br>| Between<br>2 and 5<br>years<br>| More than<br>5 years<br>| Total |
| 31 December 2025 | $m | $m | $m | $m | $m |
| Non-derivative financial liabilities: |  |  |  |  |  |
| Bank overdrafts | 3 | – | – | – | 3 |
| Bonds | 608 | 715 | 2519 | 913 | 4755 |
| Lease liabilities | 53 | 51 | 136 | 3090 | 3330 |
| Trade and other payables (excluding contingent <br>purchase consideration)<br>| 581 | 1 | 2 | 6 | 590 |
| Contingent purchase consideration | 39 | – | 42 | 53 | 134 |
| Financial guarantee contracts | 26 | – | – | – | 26 |
| Derivative financial instruments: |  |  |  |  |  |
| Currency swaps hedging bonds inflows | (109) | (697) | (1963) | (913) | (3682) |
| Currency swaps hedging bonds outflows | 150 | 727 | 1997 | 875 | 3749 |
| Forward currency contract inflows | – | – | (462) | – | (462) |
| Forward currency contract outflows | – | – | 425 | – | 425 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Less than<br>1 year<br>| Between<br>1 and 2<br>years<br>| Between<br>2 and 5<br>years<br>| More than<br>5 years<br>| Total |
| 31 December 2024 | $m | $m | $m | $m | $m |
| Non-derivative financial liabilities: |  |  |  |  |  |
| Bank overdrafts | 17 | – | – | – | 17 |
| Bonds | 482 | 531 | 1859 | 837 | 3709 |
| Lease liabilities | 52 | 50 | 139 | 3125 | 3366 |
| Trade and other payables (excluding contingent <br>purchase consideration)<br>| 589 | 1 | 1 | 3 | 594 |
| Contingent purchase consideration | – | 39 | 42 | – | 81 |
| Financial guarantee contracts | 31 | – | – | – | 31 |
| Derivative financial instruments: |  |  |  |  |  |
| Currency swaps hedging bonds inflows | (66) | (66) | (1324) | (837) | (2293) |
| Currency swaps hedging bonds outflows | 101 | 100 | 1457 | 916 | 2574 |
| Forward currency contract inflows | – | – | (431) | – | (431) |
| Forward currency contract outflows | – | – | 425 | – | 425 |

---

**Credit risk**

Credit risk on cash and cash equivalents is minimised by operating a policy on the investment of surplus cash that generally

restricts counterparties to those with a BBB- credit rating or better or those providing adequate security. The Group uses

long-term credit ratings from S&P, Moody's and Fitch Ratings as a basis for setting its counterparty limits.

In order to manage the Group's credit risk exposure, the treasury function sets counterparty exposure limits using metrics

including credit ratings, the relative placing of credit default swap pricings, tier 1 capital and share price volatility of the

relevant counterparty.

Repurchase agreements are fully collateralised investments, with a maturity of three months or less. The Group accepts only

government or supranational bonds where the lowest credit rating is AA- or better as collateral. In the event of default, ownership

of these securities would revert to the Group. The securities held as collateral are to protect against default by the counterparty.

The Group's exposure to credit risk arises from default of the counterparty, with the maximum exposure equal to the carrying

amount of each financial asset, including derivative financial instruments. The expected credit loss on cash and cash equivalents

is considered to be immaterial.

---

| | | |
|:---|:---|:---|
| 224 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**23. Financial risk management and derivative financial instruments continued**

The table below analyses the Group's short-term deposits, money market funds and repurchase agreement collateral classified

as cash and cash equivalents by counterparty credit rating:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ and <br>below<br>| Total |
| 31 December 2025 | $m | $m | $m | $m | $m | $m | $m | $m | $m |
| Short-term deposits | – | – | – | 94 | 245 | 166 | – | 10 | 515 |
| Money market funds | 334 | – | – | – | – | – | – | – | 334 |
| Repurchase agreements | 71 | – | 14 | 15 | – | – | – | – | 100 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ and <br>below<br>| Total |
| 31 December 2024 | $m | $m | $m | $m | $m | $m | $m | $m | $m |
| Short-term deposits | – | – | – | 41 | 107 | 249 | – | 14 | 411 |
| Money market funds | 415 | – | – | – | – | – | – | – | 415 |
| Repurchase agreements | 26 | 9 | 2 | 3 | – | – | – | – | 40 |

---

**Capital risk management**

The Group's capital structure consists of net debt, issued share capital and reserves. The structure is managed with the objective of

maintaining an investment grade credit rating, to provide ongoing returns to shareholders and to service debt obligations, while

maintaining maximum operational flexibility and ensuring the Group is able to continue as a going concern. A key characteristic

of IHG's managed and franchised business model is that it is highly cash generative, with a high return on capital employed.

Surplus cash is either reinvested in the business, used to repay debt or returned to shareholders.

The Group's debt is monitored on the basis of a cash flow leverage ratio, being net debt divided by adjusted EBITDA. The Group

has a stated aim of maintaining this ratio at 2.5x to 3.0x. The ratio at 31 December 2025 was 2.50 (2024: 2.34).

The Group currently has a senior unsecured long-term credit rating of BBB from S&P and a Baa2 rating from Moody's. In the

event of the S&P rating being downgraded below BBB- (a downgrade of two levels) there would be an additional step-up coupon

of 1.25% payable on the bonds maturing between 2026 and 2029 and in the event of the Moody's rating being downgraded

below Baa3 (a downgrade of two levels) there would be an additional step-up coupon of 1.25% payable on the bonds maturing

in 2029. The bonds maturing in 2030 and 2031 do not have a step-up coupon.

**24. Classification and measurement of financial instruments**

**Accounting classification and fair value hierarchy**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | 2025 |  |  |  | 2024 |
|  | Hierarchy of <br>fair value <br>measurement | Fair<br>value<sup>a</sup><br>| Amortised <br>cost<br>| Not <br>categorised <br>as a financial <br>instrument<br>| Total | Fair<br>value<sup>a</sup><br>| Amortised <br>cost<br>| Not <br>categorised <br>as a financial <br>instrument<br>| Total |
|  | Hierarchy of <br>fair value <br>measurement | $m | $m | $m | $m | $m | $m | $m | $m |
| Financial assets |  |  |  |  |  |  |  |  |  |
| Other financial assets | 13<sup>b</sup> | 161 | 53 | – | 214 | 169 | 50 | – | 219 |
| Cash and cash equivalents | 1 | 334 | 795 | – | 1129 | 415 | 593 | – | 1008 |
| Derivative financial <br>instruments<br>| 2 | 120 | – | – | 120 | 4 | – | – | 4 |
| Deferred compensation <br>plan investments<br>| 1 | 316 | – | – | 316 | 286 | – | – | 286 |
| Trade and other <br>receivables<br>| – | – | 761 | 91 | 852 | – | 697 | 123 | 820 |
| Financial liabilities |  |  |  |  |  |  |  |  |  |
| Derivative financial <br>instruments<br>| 2 | (12) | – | – | (12) | (78) | – | – | (78) |
| Deferred compensation <br>plan liabilities<br>| 1 | (316) | – | – | (316) | (286) | – | – | (286) |
| Loans and other <br>borrowings<br>| – | – | (4201) | – | (4201) | – | (3274) | – | (3274) |
| Trade and other payables | 3 | (79) | (609) | (57) | (745) | (73) | (594) | (61) | (728) |

---

a.With the exception of equity securities of $88m (2024: $89m) measured at fair value through other comprehensive income, all are measured

at fair value through profit or loss. Of those, the financial assets related to the deferred compensation plan investments were designated as such upon

initial recognition. For derivative financial instruments, these are measured at fair value through profit or loss prior to the application of hedge accounting.

b.Of those measured at fair value, $36m (2024: $43m) are Level 1 and $125m (2024: $126m) are Level 3.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 225 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**24. Classification and measurement of financial instruments continued**

Financial assets and liabilities measured at amortised cost whose carrying amount is not a reasonable approximation of fair value

are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| |  |  | 2025 |  | 2024 |
| | Hierarchy of <br>fair value <br>measurement | Carrying <br>value<br>| Fair value | Carrying <br>value<br>| Fair value |
|  | Hierarchy of <br>fair value <br>measurement | $m | $m | $m | $m |
| £300m 3.750% bonds 2025 | 1 | – | – | 381 | 373 |
| £350m 2.125% bonds 2026 | 1 | 475 | 465 | 441 | 418 |
| €500m 2.125% bonds 2027 | 1 | 594 | 584 | 526 | 513 |
| £400m 3.375% bonds 2028 | 1 | 539 | 523 | 502 | 471 |
| €600m 4.375% bonds 2029 | 1 | 705 | 734 | 623 | 658 |
| €850m 3.375% bonds 2030 | 1 | 1000 | 996 | – | – |
| €750m 3.625% bonds 2031 | 1 | 885 | 884 | 784 | 786 |

---

**Right of offset**

Cash pooling arrangements (see note 17) and derivative financial instruments (see note 23) are entered into under master

netting arrangements and other similar agreements. These instruments are not offset in the Group statement of financial

position. Certain loans to and from an associate are offset as described in note 30. There are no other financial instruments

with a significant fair value which are subject to enforceable master netting agreements.

**Valuation techniques**

Money market funds, deferred compensation plan investments and bonds

The fair value of money market funds (including accounts pledged as security in note 15), deferred compensation plan

investments and bonds is based on their quoted market price.

The deferred compensation plan liabilities are valued at the same amount as the plan assets as the Group's obligation to

employees under the deferred compensation plan is limited to the fair value of assets held.

Unquoted equity securities

Unquoted equity securities are fair valued using a discounted cash flow model, either internally or using professional external

valuers. The significant unobservable inputs used to determine the fair value of the equity securities are RevPAR growth

(based on the market-specific growth assumptions used by external valuers), pre-tax discount rate which ranged from 6.4%

to 10.0% (2024: 6.4% to 10.0%), and a non-marketability factor which ranged from 20.0% to 30.0% (2024: 20.0% to 30.0%).

There is no material sensitivity arising from changes in assumptions.

Trade deposits and loans

The value of trade deposits and loans measured at FVTPL are reassessed as market interest rates and credit risk assessments

change. The amount recognised of $34m (2024: $31m) is the discounted value of the total expected amount receivable,

discounted using unobservable interest rates for loans with similar term and risk. There is no significant sensitivity arising

from changes in interest rates.

Derivative financial instruments and other payables

Currency swaps and currency forwards are measured at the present value of future cash flows discounted back based on

quoted forward exchange rates and the applicable yield curves derived from quoted interest rates. Adjustments for credit risk

use observable credit default swap spreads.

The Group's put option over part of its investment in the Barclay associate expired at the end of 2025. It was valued at $nil in 2024.

Deferred purchase consideration

Deferred purchase consideration arose in respect of the acquisition of Regent (see page [226](#i25f2d7a909634d2f80026c9a650321a8_5640)). The final instalment of $13m

was paid in 2024.

---

| | | |
|:---|:---|:---|
| 226 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**24. Classification and measurement of financial instruments continued**

Contingent purchase consideration

Regent

Trade and other payables measured at fair value comprises contingent purchase consideration relating to the Regent

business combination.

In 2018, the Group acquired a 51% controlling interest in Regent Hospitality Worldwide, Inc ('RHW'), with put and call options

existing over the remaining 49% shareholding exercisable in a phased manner from 2026 to 2033. The Group has a present

ownership interest in the remaining shares and the acquisition was accounted for as 100% owned with no non-controlling

interest recognised. Contingent purchase consideration comprises the present value of the expected amounts payable

on exercise of the options based on the annual trailing revenue of RHW in the year preceding exercise with a floor applied.

The value of the contingent purchase consideration is subject to periodic reassessment as interest rates and RHW revenue

expectations change. The range of possible outcomes is $81m to $261m (undiscounted). The liability is subject to

remeasurement at each reporting date, discounting at a rate based on observable US corporate bond rates of similar term

to the expected payment dates.

At 31 December 2025, the Group expected to exercise a call option to acquire 25% of the shareholding in the first quarter of

2026 for $39m. The remaining 24% is expected to be acquired in 2028. The fair value is not materially sensitive to reasonable

changes in assumptions.

Ruby

Trade and other payables measured at amortised cost includes contingent purchase consideration of $19m relating

to the Ruby brand acquisition which was completed in 2025.

The value of the contingent purchase consideration comprises the present value of the expected amounts payable,

contingent on the number of Ruby branded rooms operated by the seller at the end of 2029 and 2034.

The range of possible undiscounted payments is €nil to €181m ($213m). The liability is subject to remeasurement at each

reporting date, discounted at the rate determined on acquisition.

The significant unobservable input is the expected number of rooms operated by the seller at 31 December 2029 and 2034.

If the expected room count were to increase or decrease by 25%, the amount of contingent consideration would increase/

decrease by $19m and $19m respectively.

**Level 3 reconciliation**

---

| | | |
|:---|:---|:---|
|  | Other <br>financial <br>assets<br>| Contingent <br>purchase <br>consideration<br>|
|  | $m | $m |
| At 1 January 2024 | 110 | (69) |
| Additions | 20 | – |
| Unrealised changes in fair value | – | (4) |
| Exchange and other adjustments | (4) | – |
| At 31 December 2024 | 126 | (73) |
| Unrealised changes in fair value | (1) | (6) |
| At 31 December 2025 | 125 | (79) |

---

c. ---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 227 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**25. Reconciliation of profit for the year to cash flow from operations**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| Profit for the year | 759 | 628 | 750 |
| Adjustments for: |  |  |  |
| Net financial expenses | 153 | 115 | 87 |
| Foreign exchange (gains)/losses | (37) | 25 | (35) |
| Remeasurement of contingent purchase consideration | 8 | 4 | 4 |
| Income tax charge | 315 | 269 | 260 |
| Operating profit adjustments: |  |  |  |
| Impairment loss/(reversal) on financial assets | 21 | 10 | (1) |
| Other net impairment charges | 2 | – | – |
| Other operating exceptional items | 21 | 12 | (28) |
| Depreciation and amortisation | 67 | 65 | 67 |
|  | 111 | 87 | 38 |
| Contract assets deduction in revenue | 52 | 43 | 37 |
| Share-based payments cost  | 47 | 44 | 36 |
| Share of profits of associates and joint ventures (before exceptional items) | (6) | (10) | (13) |
|  | 93 | 77 | 60 |
| System Fund adjustments: |  |  |  |
| Depreciation and amortisation | 79 | 80 | 83 |
| Impairment loss on financial assets | 19 | 9 | – |
| Other impairment charges | – | 3 | – |
| Share-based payments cost | 25 | 23 | 20 |
| Share of losses of associates | 2 | 2 | 3 |
|  | 125 | 117 | 106 |
| Working capital and other adjustments: |  |  |  |
| Increase in deferred revenue | 107 | 214 | 123 |
| Increase in trade and other receivables | (51) | (106) | (70) |
| (Decrease)/increase in trade and other payables | (25) | (45) | 31 |
| Other net adjustments | 5 | (7) | (5) |
|  | 36 | 56 | 79 |
| Cash flows relating to operating exceptional items | (23) | 8 | (29) |
| Contract acquisition costs, net of repayments | (179) | (237) | (101) |
| Total adjustments | 602 | 521 | 469 |
| Cash flow from operations | 1361 | 1149 | 1219 |

---

In 2025, increase in deferred revenue includes $37m (2024: $100m) of initial upfront payments received in relation to US co-brand

credit card agreements which will be recognised over the term of those agreements.

Other net adjustments includes dividends received from associates and joint ventures of $6m (2024: $7m; 2023 $1m).

---

| | | |
|:---|:---|:---|
| 228 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**26. Retirement benefits**

**UK**

Since 2014, UK retirement benefits are provided for eligible employees by the IHG UK Defined Contribution Pension Plan. Members

are provided with defined contribution arrangements under this plan; benefits are based on each individual member's personal

account. The plan is HM Revenue & Customs registered and governed by an independent trustee, assisted by professional

advisers as and when required. The overall operation of the plan is subject to the oversight of The Pensions Regulator.

The former defined benefit plan, the InterContinental Hotels UK Pension Plan, was wound up in 2015 following the completion of the

buy-out and transfer of the defined benefit obligations to Rothesay Life.

Residual defined benefit obligations remain in respect of additional benefits provided to members of an unfunded pension

arrangement ('UK plan') who were affected by lifetime or annual allowances under the former defined benefit arrangements.

Accrual under this arrangement ceased with effect from 1 July 2013 and a cash-out offer in 2014 resulted in the extinguishment

of approximately 70% of the unfunded pension obligations. The Group meets the benefit payment obligations of the remaining

members as they fall due. A charge over certain ring-fenced accounts totalling $27m (£20m) at 31 December 2025 (see note 15)

is currently held as security on behalf of the remaining members.

**US**

During 2018, the Group completed a termination of the US funded Inter-Continental Hotels Pension Plan, which involved certain

qualifying members receiving lump-sum cash-out payments with the remaining pension obligations subject to a buy-out by

Banner Life Insurance Company, a subsidiary of Legal & General America.

The Group continues to maintain the unfunded Inter-Continental Hotels Non-qualified Pension Plans ('US plans') and unfunded

Inter-Continental Hotels Corporation Postretirement Medical, Dental, Vision and Death Benefit Plan ('US post-retirement plan'),

both of which are defined benefit plans. Both plans are closed to new members. A Retirement Committee, comprising senior

Group employees and assisted by professional advisers as and when required, has responsibility for oversight of the plans.

**Other post-employment benefits**

Disclosures in this note concerning assumptions, sensitivities, future benefit payments and duration of pension obligations relate

to the UK and US plans and the US post-retirement plan. The Group also maintains immaterial post-employment benefit plans in

various countries, including the Philippines, which are accounted for as defined benefit plans.

At 31 December 2025, the net retirement benefit asset relating to the Philippines plan was $3m (2024: $3m) comprising plan

assets of $15m (2024: $13m) and a defined benefit obligation of $12m (2024: $10m).

A retirement benefit liability totalling $9m (2024: $7m) was recognised in respect of all other countries' plans.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 229 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**26. Retirement benefits continued**

**Movement in retirement benefit obligations**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| At 1 January | 68 | 66 | 66 |
| Group contributions | (6) | (6) | (5) |
| Interest expense recognised in profit or loss | 6 | 5 | 3 |
| Actuarial (gains)/losses recognised in other comprehensive income | – | (4) | 2 |
| Exchange and other adjustments | 1 | 7 | – |
| At 31 December | 69 | 68 | 66 |
| Comprising: |  |  |  |
| UK plan | 18 | 17 | 19 |
| US plans | 30 | 31 | 34 |
| US post-retirement plan | 12 | 13 | 13 |
| Other post-employment benefit plans | 9 | 7 | – |
|  | 69 | 68 | 66 |

---

The value of benefits paid is equal to contributions paid into the plans by the Group.

**Assumptions**

The principal financial assumptions used by the actuaries to determine the defined benefit obligations are:

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | % | % | % |
| UK plan only: |  |  |  |
| Pension increases | 3.0 | 3.2 | 3.1 |
| Inflation rate | 3.0 | 3.2 | 3.1 |
| Discount rate: |  |  |  |
| UK plan | 5.6 | 5.6 | 4.8 |
| US plans | 5.0 | 5.3 | 4.7 |
| US post-retirement plan | 5.0 | 5.3 | 4.7 |
| US healthcare cost trend rate assumed for the next year: |  |  |  |
| Pre-65 (ultimate rate reached in 2036) | 8.2 | 8.6 | 7.8 |
| Post-65 (ultimate rate reached in 2036) | 9.5 | 9.7 | 8.6 |
| Ultimate rate that the cost rate trends to | 4.5 | 4.5 | 4.5 |

---

---

| | | |
|:---|:---|:---|
| 230 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**26. Retirement benefits continued**

Mortality is the most significant demographic assumption. The current assumptions for the UK are based on the S3PA 'light'

year of birth tables with projected mortality improvements using the CMI_2024 model and a 1.25% per annum long-term trend

using core parameters and underlying rates with weightings of 91% and 85% for pensioners and 86% and 84% for non-pensioners,

male and female respectively. In the US, the current assumptions use rates from the Pri-2012 Mortality Study and Generationally

Projected with Scale MP-2021 mortality tables.

The assumptions applied to the UK plan and US plans for life expectancy at retirement age are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| |  | UK | UK | UK | US | US | US |
| |  | 2025<br>years<br>| 2024<br>years<br>| 2023<br>years<br>| 2025<br>years<br>| 2024<br>years<br>| 2023<br>years<br>|
| Current pensioners at 65<sup>a</sup> | – male | 24 | 23 | 23 | 22 | 22 | 22 |
|  | – female | 26 | 25 | 25 | 24 | 23 | 23 |
| Future pensioners at 65<sup>b</sup> | – male | 25 | 23 | 23 | 23 | 23 | 23 |
|  | – female | 27 | 25 | 25 | 25 | 25 | 25 |

---

a.Relates to assumptions based on longevity following retirement at the end of the reporting period.

b.Relates to assumptions based on longevity relating to an employee retiring in 2045.

The assumptions allow for expected increases in longevity.

**Sensitivities**

Changes in assumptions used for determining retirement benefit costs and obligations may have an impact on the Group

income statement and the Group statement of financial position. The key assumptions are the discount rate, the rate of inflation,

the assumed mortality rate and the healthcare costs trend rate. The sensitivity analysis below relates to the increase/(decrease)

in the benefit obligation and is based on extrapolating reasonable changes in these assumptions, using year-end conditions

and assuming no interdependency between the assumptions:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | 2025 | 2024 |
|  |  |  | $m | $m |
| Discount rate | 1% | decrease | 5 | 5 |
| Discount rate | 1% | increase | (5) | (5) |
| Inflation rate | 0.25% | decrease | – | (1) |
| Inflation rate | 0.25% | increase | – | – |
| Mortality rate | One-year | increase | 3 | 2 |
| Healthcare costs trend rate | 1% | decrease | (1) | (1) |
| Healthcare costs trend rate | 1% | increase | 1 | 1 |

---

**Estimated future benefit payments**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | $m | $m |
| Within one year | 5 | 5 |
| Between one and five years | 20 | 20 |
| More than five years | 78 | 81 |
|  | 103 | 106 |

---

**Average duration of pension obligations**

---

| | | |
|:---|:---|:---|
|  | 2025<br>years<br>| 2024<br>years<br>|
| UK plan | 12.0 | 12.0 |
| US plans | 7.1 | 7.1 |
| US post-retirement plan | 7.1 | 7.4 |

---

**Defined contribution plans**

The Group also operates a number of smaller pension plans outside the UK, the most significant of which is a defined

contribution plan in the US which is designed to comply with the requirements of the Internal Revenue Code Section 409A.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 231 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**27. Share-based payments**

In 2023, the new Deferred Award Plan rules ('DAP') replaced the IHG Annual Performance Plan ('APP') and Long Term Incentive

Plan ('LTIP') as a simplified, combined set of plan rules which govern the Company's discretionary incentive plans.

Awards granted under the DAP can consist of Deferred Annual Incentive ('DAI'), Long-Term Incentive ('LTI'), Restricted Stock

Unit ('RSU') and other ad hoc awards.

The DAP rules were approved at the AGM on 5 May 2023, with all LTI and RSU awards granted after this date and DAI awards

granted in respect of 2024 and future APP years being subject to the rules of the DAP. All previously granted awards are subject

to the LTIP and APP rules respectively.

**Annual Performance/Deferred Annual Incentive Awards**

Eligible employees (including Executive Directors) may receive all or part of their bonus in the form of deferred shares and/or

receive one-off awards of shares. Deferred shares in relation to annual performance-related bonus plans are released on the

third anniversary of the award date. Awards are conditional on the participants remaining in the employment of a participating

company or leaving for a qualifying reason. The grant of deferred shares under the APP/DAP is at the discretion of the

Remuneration Committee.

The number of shares is typically calculated by dividing a specific percentage of the participant's annual performance-related

bonus award by the average of the middle market quoted prices on the three consecutive business days following the

announcement of the Group's results for the relevant financial year.

**Long Term Incentive and Restricted Stock Units**

Executive Directors and eligible employees may receive conditional share awards, which normally have a vesting period of

three years, subject to continued employment. In addition, certain LTI awards made to Executive Directors are normally subject

to a further two-year holding period after vesting.

LTI awards are subject to performance-based vesting conditions set by the Remuneration Committee, which are normally

measured over the vesting period.

Awards are normally made annually and, except in exceptional circumstances, do not exceed the limit set out in the Directors'

Remuneration Policy and DAP Rules.

**Colleague Share Plan**

The Colleague Share Plan gives eligible corporate employees the opportunity to purchase shares up to an annual limit. After the

end of the plan year, the participant will be awarded the right to receive one matching share for every purchased share (subject

to continued employment). If the participant holds the purchased shares until the second anniversary of the end of the plan year,

the conditional right to matching shares vests.

The total fair value of the Colleague Share Plan is not significant.

---

| | |
|:---|:---|
| **+** | More detailed information on the performance measures for awards to Executive Directors is shown in the Directors' Remuneration Report <br>on pages [148](#i24da1a8b6a2446abbc31e8859adb287f_37644) to [153](#i24da1a8b6a2446abbc31e8859adb287f_37626). |
|  | More detailed information on the performance measures for awards to Executive Directors is shown in the Directors' Remuneration Report <br>on pages [148](#i24da1a8b6a2446abbc31e8859adb287f_37644) to [153](#i24da1a8b6a2446abbc31e8859adb287f_37626). |

---

**Costs relating to share-based payment transactions**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| Equity-settled |  |  |  |
| Operating profit before System Fund and reimbursables | 42 | 37 | 31 |
| System Fund | 25 | 23 | 20 |
|  | 67 | 60 | 51 |
| Cash-settled |  |  |  |
| Operating profit before System Fund and reimbursables | 5 | 7 | 5 |
|  | 72 | 67 | 56 |

---

No consideration was received in respect of ordinary shares issued under option schemes during 2025, 2024 or 2023.

---

| | | |
|:---|:---|:---|
| 232 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**27. Share-based payments continued**

**Option pricing models, assumptions and movements in awards outstanding**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | APP/DAP | APP/DAP | APP/DAP | LTIP/DAP | LTIP/DAP | LTIP/DAP |
|  | Binomial valuation model | Binomial valuation model | Binomial valuation model | Monte Carlo Simulation, Binomial<br>and Finnerty valuation models | Monte Carlo Simulation, Binomial<br>and Finnerty valuation models | Monte Carlo Simulation, Binomial<br>and Finnerty valuation models |
| Option pricing models and assumptions | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 |
| Weighted average share price (pence) | 9420.1 | 8481.8 | 5571.7 | 9250.0 | 7940.0 | 5318.0 |
| Expected dividend yield |  |  |  | 1.84% | 2.12% | 2.52% to 2.77% |
| Risk-free interest rate |  |  |  | 3.88% | 4.20% | 3.85% |
| Volatility<sup>a</sup> |  |  |  | 21% | 26% | 29% to 30% |
| Term (years) | 2.9 | 2.2 | 2.3 | 2.8 | 3.0 | 3.0 |

---

a.The expected volatility was determined by calculating the historical volatility of the Company's share price corresponding to the expected life of the

share award.

---

| | | | |
|:---|:---|:---|:---|
| Number of share awards (thousands) | APP/DAP |  | LTIP/DAP |
| Number of share awards (thousands) | Deferred shares/<br>one-off awards<br>| Performance-related <br>awards/LTI<br>| Restricted stock units |
| Outstanding at 1 January 2023 | 321 | 933 | 1575 |
| Granted | 214 | 329 | 683 |
| Vested | (186) | (180) | (533) |
| Lapsed or cancelled | (17) | (246) | (63) |
| Outstanding at 31 December 2023 | 332 | 836 | 1662 |
| Granted | 104 | 279 | 495 |
| Vested | (44) | (136) | (402) |
| Lapsed or cancelled | (6) | (148) | (106) |
| Outstanding at 31 December 2024 | 386 | 831 | 1649 |
| Granted | 82 | 270 | 470 |
| Vested | (174) | (246) | (599) |
| Lapsed or cancelled | (5) | (77) | (93) |
| Outstanding at 31 December 2025 | 289 | 778 | 1427 |
| Average fair value of awards granted during the year (cents) |  |  |  |
| 2025 | 12412.2 | 6698.1 | 11754.0 |
| 2024 | 10837.6 | 5812.6 | 10302.3 |
| 2023 | 6926.4 | 3169.7 | 6351.0 |
| Weighted average remaining contract life (years) |  |  |  |
| At 31 December 2025 | 1.0 | 1.1 | 1.1 |
| At 31 December 2024 | 0.9 | 1.1 | 1.1 |
| At 31 December 2023 | 1.5 | 1.3 | 1.3 |

---

The above awards do not vest until the performance and service conditions have been met.

The weighted average share price at the date of vesting for share awards during the year was 9,963.6p (2024: 8,225.7p,

2023: 5,740.3p) including the Colleague Share Plan. The closing share price on 31 December 2025 was 10,460.0p

(31 December 2024: 9,954.0p, 31 December 2023: 7,090.0p) and the range during the year was 7,424.0p to 10,880.0p

(2024: 7,016.0p to 10,180.0p, 2023: 4,832.0p to 7,118.0p).

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 233 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**28. Equity**

**Equity share capital**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Number of <br>shares<br>| Nominal <br>value<br>| Share <br>premium<br>| Equity share <br>capital<br>|
| Allotted, called up and fully paid | millions | $m | $m | $m |
| At 1 January 2023 (ordinary shares of 20<sup>340</sup>⁄399p each) | 183 | 46 | 91 | 137 |
| Repurchased and cancelled under share repurchase programme | (11) | (3) | – | (3) |
| Exchange adjustments | – | 3 | 4 | 7 |
| At 31 December 2023 (ordinary shares of 20<sup>340</sup>⁄399p each) | 172 | 46 | 95 | 141 |
| Repurchased and cancelled under share repurchase programme | (7) | (2) | – | (2) |
| Exchange adjustments | – | (1) | (1) | (2) |
| At 31 December 2024 (ordinary shares of 20<sup>340</sup>⁄399p each) | 165 | 43 | 94 | 137 |
| Repurchased and cancelled under share repurchase programme | (8) | (2) | – | (2) |
| Exchange adjustments | – | 3 | 7 | 10 |
| At 31 December 2025 (ordinary shares of 20<sup>340</sup>⁄399p each) | 157 | 44 | 101 | 145 |

---

In February 2025, the Board approved a $900m share buyback programme which completed on 29 December 2025.

In February 2024, the Board approved a $800m share buyback programme which completed on 27 December 2024.

In February 2023, the Board approved a $750m share buyback programme which completed on 29 December 2023.

---

| | | |
|:---|:---|:---|
|  | Number of <br>shares<sup>a</sup><br>| Total<sup>b,c</sup> |
| Shares repurchased and total consideration paid for share buyback programme | millions | $m |
| 31 December 2025 | 7.6 | 882 |
| 31 December 2024 | 7.5 | 812 |
| 31 December 2023 | 10.9 | 790 |

---

a.Shares were repurchased and subsequently cancelled.

b.Includes transaction costs. In 2025, $15m of taxes previously provided for in respect of the 2024 and 2023 buyback programmes were reversed,

following legislative changes.

c.In 2023, $38m related to the completion of the 2022 programme and $752m related to the 2023 programme.

The Board reviewed the Parent Company Financial Statements to confirm availability of sufficient distributable reserves

prior to approving shareholder returns.

For each of the share buyback programmes undertaken, authority was given to the Company at the respective AGM prior

to commencement of the buyback.

In February 2026, the Board approved a further $950m share buyback programme. A resolution to renew the authority

to repurchase shares will be put to shareholders at the AGM on 7 May 2026.

The Company no longer has an authorised share capital.

**Shares held by employee share trusts**

---

| | | | |
|:---|:---|:---|:---|
|  | Number of <br>shares<br>| Carrying <br>value<br>| Market <br>value<br>|
|  | millions | $m | $m |
| 31 December 2025 | 1.0 | 59.0 | 146.3 |
| 31 December 2024 | 1.2 | 63.0 | 144.9 |
| 31 December 2023 | 0.8 | 35.0 | 73.6 |

---

Shares held by employee share trusts includes 0.2m shares (2024: 0.2m shares) held in a nominee account on behalf of participants.

---

| | | |
|:---|:---|:---|
| 234 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**28. Equity continued**

**Treasury shares**

---

| | | |
|:---|:---|:---|
|  | Number of <br>shares<br>| Nominal <br>value<br>|
|  | millions | $m |
| At 1 January 2023 | 7.5 | 1.9 |
| Transferred to employee share trusts | (0.5) | (0.1) |
| Repurchased under share repurchase programme | – | 0.1 |
| At 31 December 2023 | 7.0 | 1.9 |
| Transferred to employee share trusts | (0.8) | (0.2) |
| Exchange adjustments | – | (0.1) |
| At 31 December 2024 | 6.2 | 1.6 |
| Transferred to employee share trusts | (0.7) | (0.2) |
| Exchange adjustments | – | 0.1 |
| At 31 December 2025 | 5.5 | 1.5 |

---

**Cash flow hedge reserves**

---

| | | | |
|:---|:---|:---|:---|
|  | Cash flow <br>hedge <br>reserve<br>| Cost of <br>hedging <br>reserve<br>| Total |
|  | $m | $m | $m |
| At 1 January 2023 | 8 | (8) | – |
| Change in fair value of currency swaps recognised in other comprehensive income | (30) | – | (30) |
| Reclassified from other comprehensive income to profit or loss – included in <br>financial expenses<br>| 28 | – | 28 |
| At 31 December 2023 | 6 | (8) | (2) |
| Costs of hedging deferred and recognised in other comprehensive income | – | (11) | (11) |
| Change in fair value of currency swaps recognised in other comprehensive income | (113) | – | (113) |
| Reclassified from other comprehensive income to profit or loss – included in <br>financial expenses<br>| 165 | – | 165 |
| Deferred tax | (11) | – | (11) |
| At 31 December 2024 | 47 | (19) | 28 |
| Costs of hedging deferred and recognised in other comprehensive income | – | 4 | 4 |
| Change in fair value of currency swaps recognised in other comprehensive income | 126 | – | 126 |
| Reclassified from other comprehensive income to profit or loss – included in <br>financial expenses<br>| (187) | – | (187) |
| Deferred tax | 14 | – | 14 |
| Exchange adjustments | 1 | – | 1 |
| At 31 December 2025 | 1 | (15) | (14) |

---

Amounts reclassified from other comprehensive income to financial expenses comprise $31m (2024: $28m, 2023: $14m)

net interest payable on the currency swaps and an exchange gain of $218m (2024: $137m loss, 2023: $14m loss) which offsets

a corresponding gain or loss on the hedged bonds.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 235 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**29. Contingencies and commitments**

**Litigation**

From time to time, the Group is subject to legal proceedings the ultimate outcome of each being always subject to many

uncertainties inherent in litigation. These legal claims and proceedings are in various stages and include disputes related

to specific hotels where the potential materiality is not yet known; such proceedings, either individually or in the aggregate,

have not in the recent past and are not likely to have a material effect on the Group's financial position or profitability.

Previously reported contingent liabilities have been resolved or are considered remote.

It is the view of the Directors that, other than to the extent that liabilities have been provided for in these Group Financial

Statements (see note 19), it is not possible to quantify any loss to which these proceedings may give rise, however, as at the

date of reporting, the Group does not believe that the outcome of these matters will have a material effect on the Group's

financial position.

**Other items**

The Group had total commitments for capital expenditure of $3m at 31 December 2025 (2024: $8m). The Group has also

committed to invest $5m in one joint venture (2024: $16m in one joint venture).

**30. Related party disclosures**

**Key management personnel**

---

| | | | |
|:---|:---|:---|:---|
| Total compensation | 2025 | 2024 | 2023 |
| Total compensation | $m | $m | $m |
| Short-term employment benefits | 22.0 | 20.1 | 18.6 |
| Contributions to defined contribution pension plans | 0.5 | 0.4 | 0.5 |
| Equity compensation benefits<sup>a</sup> | 18.6 | 16.4 | 15.8 |
|  | 41.1 | 36.9 | 34.9 |

---

a.As measured in accordance with IFRS 2 'Share-based Payment'.

There were no other transactions with key management personnel, defined as the Board and Executive Committee, during the

years ended 31 December 2025, 2024 or 2023.

**Associates and joint ventures**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| Fee revenue | 10 | 12 | 11 |
| Expenses | (1) | – | – |
| Amounts receivable (net) | 50 | 41 | 19 |
| Amounts payable | (1) | – | (10) |

---

The Group has a performance guarantee with a maximum exposure remaining of $2m (2024: $4m) for one associate.

The Group funds shortfalls in owner returns relating to the Barclay associate. In addition, loans both to and from the Barclay

associate of $237m (2024: $237m) are offset in accordance with the provisions of IAS 32 'Financial Instruments: Presentation'

and presented net in the Group statement of financial position. Interest payable and receivable under the loans is equivalent.

The loans have an average interest rate of 4.1% (2024: 4.1%) and interest is presented net in the Group income statement.

Notes 6 and 14 contain details of other transactions with the Barclay associate.

Amounts receivable include $35m preferred equity investments in three associates (2024: $34m in three associates) which

are presented within other financial assets. The face value of these receivables is $47m, the difference to book value being

due to discounting for time value of money and provisions for expected credit losses.

The closing loan and preferred equity balances above represent the maximum amount outstanding during the year.

---

| | | |
|:---|:---|:---|
| 236 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**31. System Fund and reimbursables**

System Fund and reimbursable revenues and expenses comprise:

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| System Fund revenues | 1717 | 1611 | 1564 |
| Reimbursable revenues | 1004 | 1000 | 896 |
| System Fund and reimbursable revenues | 2721 | 2611 | 2460 |
| System Fund expenses | (1763) | (1694) | (1545) |
| Reimbursable expenses | (1004) | (1000) | (896) |
| System Fund and reimbursable expenses | (2767) | (2694) | (2441) |

---

System Fund revenues include:

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| Loyalty programme revenues, net of the cost of point redemptions | 355 | 355 | 379 |
| Marketing, reservation and other hotel fees | 1362 | 1256 | 1185 |

---

System Fund expenses include:

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| Marketing | 542 | 520 | 498 |
| Staff costs (excluding costs relating to the global efficiency programme) | 424 | 436 | 399 |
| Global efficiency programme<sup>a</sup> | 10 | – | – |
| Depreciation and amortisation | 79 | 80 | 83 |
| Impairment loss on trade receivables (note 16) | 19 | 9 | – |
| Other net impairment charges (note 11) | – | 3 | – |

---

a.Comprises costs incurred in the ongoing delivery of a programme designed to achieve incremental cost base efficiencies and effectiveness.

An additional $12m, that is not charged to the System Fund, is included in operating exceptional items (note 6).

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 237 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**32. Group companies**

In accordance with Section 409 of the Companies Act 2006, a full list of entities in which the Group has an interest of greater

than or equal to 20%, the registered office and effective percentage of equity owned as at 31 December 2025 are disclosed below.

Unless otherwise stated, the ownership interest disclosed comprises either ordinary shares, certificated or uncertificated

membership interests which are indirectly held by InterContinental Hotels Group PLC.

**Fully owned subsidiaries**

10000 Champion Acquisition LLC (k)

24th Street JV Development LLC (k)

24th Street Operator Sub, LLC (k)

2250 Blake Street Hotel, LLC (k)

36th Street IHG Sub, LLC (k)

426 Main Ave. LLC (k)

46 Nevins Street Associates, LLC (k)

Alpha Kimball Hotel, LLC (k)

Asia Pacific Holdings Limited (n)

Barclay Operating Corp. (k)

BHMC Canada Inc. (o)

BHR Holdings B.V. (p)

BHR Pacific Holdings, Inc. (k)

BHTC Canada Inc. (o)

Blythswood Square Glasgow Hotel

OpCo Limited (n)

BOC Barclay Sub LLC (k)

Bristol Oakbrook Tenant Company (k)

Cambridge Lodging LLC (k)

Capital Lodging LLC (k)

CECNY Land Holdings LLC (k)

CF Irving Owner, LLC (k)

CF McKinney Owner, LLC (k)

Compañia Inter-Continental De Hoteles

El Salvador SA (n)

Crowne Plaza, LLC (k)

Cumberland Akers Hotel, LLC (k)

Dunwoody Operations, LLC (k)

Edinburgh George Street Hotel OpCo Limited (n)

EVEN Real Estate Holding LLC (k)

Gem Brand Company Ltd. (n)

Grand Central Glasgow Hotel OpCo Limited (n)

Guangzhou SC Hotels Services Ltd. (t)

Hawthorne Land Holdings LLC (k)

HH France Holdings SAS (x)

HH Hotels (EMEA) BV (p)

HH Hotels (Romania) SRL (y)

HIM (Aruba) N.V. (z)

Hoft Properties LLC (k)

Holiday Hospitality Franchising, LLC (k)

Holiday Inn Mexicana S.A. (ab)

Holiday Inns (China) Limited (ay)

Holiday Inns (Courtalin) Holding SAS (x)

Holiday Inns (Courtalin) SAS (x)

Holiday Inns (Germany), LLC (k)

Holiday Inns (Jamaica), Inc. (k)

Holiday Inns (Middle East) Limited (ay)

Holiday Inns (Philippines), Inc. (k)

Holiday Inns (Saudi Arabia), Inc. (k)

Holiday Inns (Thailand) Limited (ay)

Holiday Inns Crowne Plaza (Hong Kong), Inc. (k)

Holiday Inns Holdings (Australia) Pty. Limited (aa)

Holiday Inns, Inc. (k)

Holiday Inns of Belgium N.V. (ad)

Holiday Pacific Equity Corporation (k)

Holiday Pacific Limited Liability Company (k)

Holiday Pacific Partners Limited Partnership (k)

Hotel InterContinental London (Holdings)

Limited (n)

Hotel Inter-Continental London Limited (n)

Hoteles Y Turismo HIH Srl (n)

IC Hotelbetriebsführungs GmbH (ae)

IC Hotels Management (Portugal) Unipessoal,

Lda (af)

IC International Hotels Limited Liability

Company (ag)

IHC Arabia for Management, LLC (u)

IHC Hotel Limited (n)

IHC Hotel Management (EGY) LLC (ac)

IHC May Fair Hotel Limited (n)

IHC Overseas (U.K.) Limited (n)

IHG (Dominica) Ltd. (bk)

IHG (Marseille) SAS (x)

IHG (Myanmar) Limited (ah)

IHG (Thailand) Limited (bu)

IHG Bangkok Ltd (v)

IHG Brasil Administracao de Hoteis e

Servicos Ltda (ak)

IHG Commissions Services SRL (co)

IHG de Argentina SA (al)

IHG ECS (Barbados) SRL (co)

IHG Finance LLC (k)

IHG Franchising Brasil Ltda (bd)

IHG Franchising DR Corporation (k)

IHG Franchising, LLC (k)

IHG Honduras S. de R.L. (cq)

IHG Hotels (New Zealand) Limited (an)

IHG Hotels Limited (n)

IHG Hotels Management (Australia) Pty

Limited (aa)

IHG Hotels South Africa (Pty) Limited (ap)

IHG International Holdings, Inc. (k) (c)

IHG Istanbul Otel Yönetim Limited Şirketi (bx)

IHG Japan (Management), LLC (ar)

IHG Japan (Osaka), LLC (ar)

IHG Korea Management LLC (cj)

IHG Management (Maryland), LLC (cl)

IHG Management (Netherlands) B.V. (p)

IHG Management d.o.o. Beograd (cc)

IHG Management MD Barclay Sub, LLC (k)

IHG Management SL d.o.o. (bo)

IHG Mexico Operaciones SA de CV (ab)

IHG Middle East Management

Consultancies LLC (br)

IHG Peru SRL (cf)

IHG PS Nominees Limited (n)

IHG Systems Pty Limited (aa)

IHG Szalloda Budapest Szolgaltato Kft (at)

IHG Technology Solutions, LLC (k)

IHG UK Leased Hotels Limited (n)

(formerly Russell Hotel OpCo Limited

changed 2 January 2026)

IHG Universal Blvd Member LLC (k)

InterContinental Berlin Service Company

GmbH (au)

InterContinental (PB) 1 (n)

InterContinental (PB) 3 Limited (n)

Intercontinental D.C. Operating Corp. (k)

Inter-Continental Florida Partner Corp. (k)

InterContinental Gestion Hotelera SLU (by)

InterContinental Hotel Berlin GmbH (au)

Inter-Continental Hoteleira Limitada (aw)

Inter-Continental Hotels (Montreal)

Operating Corp. (ax)

InterContinental Hotels (Puerto Rico) Inc. (az)

Inter-Continental Hotels Corporation (k)

Intercontinental Hotels Corporation Limited (m)

InterContinental Hotels Group (Asia Pacific)

Pte Ltd. (ai)

InterContinental Hotels Group (Australia)

Pty Limited (aa)

InterContinental Hotels Group (Canada), Inc. (o)

InterContinental Hotels Group (Greater China)

Limited (ay)

InterContinental Hotels Group (India) Private

Limited (aq)

InterContinental Hotels Group (Japan), Inc. (k)

InterContinental Hotels Group (New Zealand)

Limited (an)

InterContinental Hotels Group (Shanghai)

Ltd (bb)

InterContinental Hotels Group (Vietnam)

Company Limited (q)

InterContinental Hotels Group do Brasil

Limitada (bc)

InterContinental Hotels Group Healthcare

Trustee Limited (n)

InterContinental Hotels Group Operating

Corp. (e) (k)

InterContinental Hotels Group Resources,

LLC (k)

InterContinental Hotels Group Services

Company (n)

InterContinental Hotels Italia, Srl (be)

InterContinental Hotels Limited (a) (n)

InterContinental Hotels

Managementgesellschaft mbH (bf)

InterContinental Hotels Management

Montenegro d.o.o. (ce)

InterContinental Hotels Nevada Corporation (k)

InterContinental Hotels of San Francisco, Inc. (k)

Intercontinental IOHC (Mauritius) Ltd. (bg)

InterContinental Management AM, LLC (cm)

InterContinental Management Bulgaria

EOOD (bp)

InterContinental Management France SAS (x)

InterContinental Management Poland

sp. z.o.o. (cn)

InterContinental Overseas Holdings, LLC (k)

KG Benefits LLC (k)

KG Gift Card Inc. (k)

KG Liability LLC (k)

KG Technology, LLC (k)

KHRG 851 LLC (k)

KHRG Aertson LLC (k)

KHRG Allegro, LLC (k)

KHRG Argyle, LLC (k)

KHRG Atlanta Midtown LLC (k)

KHRG Baltimore, LLC (k)

KHRG Born LLC (k)

KHRG Bozeman LLC (k)

KHRG Buckhead LLC (k)

---

| | | |
|:---|:---|:---|
| 238 | IHG | Annual Report and Form 20-F 2025 |

---

Notes to the Group Financial Statements continued<br>

**32. Group companies continued**

KHRG Canary LLC (k)

KHRG Cayman LLC (k)

KHRG Cayman Employer Ltd. (bt)

KHRG Charlottesville LLC (k)

KHRG Dallas LLC (k)

KHRG Dallas Beverage Company, LLC (k)

KHRG Employer, LLC (k)

KHRG Gray LLC (k)

KHRG Gray U2 LLC (k)

KHRG Huntington Beach LLC (k)

KHRG Key West LLC (k)

KHRG King Street, LLC (k)

KHRG La Peer LLC (k)

KHRG Miami Beach LLC (k)

KHRG New Orleans LLC (k)

KHRG NPC LLC (k)

KHRG Palladian LLC (k)

KHRG Palomar Phoenix LLC (k)

KHRG Philly Monaco LLC (k)

KHRG Porsche Drive LLC (k)

KHRG Reynolds LLC (k)

KHRG Riverplace LLC (k)

KHRG Sacramento LLC (k)

KHRG Schofield LLC (k)

KHRG SFD LLC (k)

KHRG SF Wharf LLC (k)

KHRG SF Wharf U2 LLC (k)

KHRG South Beach LLC (k)

KHRG State Street LLC (k)

KHRG Sutter LLC (k)

KHRG Sutter Union LLC (k)

KHRG Taconic LLC (k)

KHRG Tariff LLC (k)

KHRG Texas Hospitality, LLC (k)

KHRG Texas Operations, LLC (k)

KHRG Tryon LLC (k)

KHRG Vero Beach, LLC (k)

KHRG Vintage Park LLC (k)

KHRG Westwood, LLC (k)

KHRG Wilshire LLC (k)

Kimpton Hollywood Licenses LLC (k)

Kimpton Hotel & Restaurant Group, LLC (k)

Kimpton Hotel Frankfurt GmbH (ao)

Kimpton Phoenix Licenses Holdings LLC (k)

Louisiana Acquisitions Corp. (k)

Luxury Resorts and Spas (France) SAS (ck)

Manchester Oxford Street Hotel OpCo

Limited (n)

Mercer Fairview Holdings LLC (k)

Met Leeds Hotel OpCo Limited (s)

MH Lodging LLC (k)

Oxford Spires Hotel OpCo Limited (n)

Oxford Thames Hotel OpCo Limited (n)

PML Services LLC (k)

Pollstrong Limited (n)

Priscilla Holiday of Texas, Inc. (k)

Project Capital Lending LLC (k)

PT SC Hotels & Resorts Indonesia (bh)

Raison d'Etre Spas, Sweden AB (av)

Ravinia Republica Dominicana SRL (cs)

Regent Asia Pacific Hotel Management

Limited (bw)

Regent Asia Pacific Management Limited (cp)

Regent Berlin GmbH (bf)

Regent International Hotels Ltd (bw)

Roxburghe Hotel Edinburgh OpCo Limited (n)

SBS Maryland Beverage Company LLC (k)

SC Leisure Group Limited (n)

SC Reservations (Philippines) Inc. (k)

SCH Insurance Company (bi)

Semiramis for training of Hotel Personnel

and Hotel Management SAE (ch)

Six Continents Holdings Limited (n)

Six Continents Hotels Belize Limited (cb)

Six Continents Hotels International Limited (n)

Six Continents Hotels, Inc. (k)

Six Continents International Holdings B.V. (p)

Six Continents Investments Limited (f) (n)

Six Continents Limited (n)

Six Continents Overseas Holdings Limited (n)

Six Senses Americas IP, LLC (k)

Six Senses North America Management, LLC (k)

SLC Sustainable Luxury Cyprus Limited (cr)

SPHC Management Ltd. (bq)

SS Aetna Acquisition, LLC (k)

St. David's Cardiff Hotel OpCo Limited (n)

Sustainable Luxury Holdings (BVI) Limited (v)

Sustainable Luxury Lanka Private Ltd. (ci)

Sustainable Luxury Maldives Private Limited (w)

Sustainable Luxury Mauritius Limited (as)

Sustainable Luxury UK Limited (n)

Wotton House Hotel OpCo Limited (s)

WY BLL Owner, LLC (k)

York Station Road Hotel OpCo Limited (s)

**Subsidiaries where the effective** 

**interest is less than 100%**

IHG ANA Hotels Group Japan LLC (74.66%) (ar)

IHG ANA Hotels Holdings Co., Ltd. (66%) (ar)

Regent Hospitality Worldwide, Inc. (51%) (bt)

Six Continents Hotels de Colombia SA

(94.99%) (bj)

Sustainable Luxury Holding (Thailand) Limited

(49%) (c) (j) (aj)

Sustainable Luxury Hospitality (Thailand)

Limited (73.99%) (c) (j) (bl)

Sustainable Luxury Management (Thailand)

Limited (73.99%) (c) (j) (aj)

Sustainable Luxury Operations (Thailand)

Limited (99.9998%) (j) (aj)

Universal de Hoteles SA (99.99%) (j) (bj)

**Associates, joint ventures and other**

111 East 48th Street Holdings LLC

(19.9%) (g) (h) (k)

131 West 23rd Owner, LLC (0%) (b) (ct)

Alkoer, Sociedad de Responsabilidad

Limitada de Capital Variable (50%) (h) (cg)

ASR-JV One, LLC (0%) (d) (h) (l)

Beijing Orient Express Hotel Co., Ltd.

(16.25%) (bm)

Blue Blood (Tianjin) Equity Investment

Management Co., Limited (30.05%) (bn)

Carr SWW Subventure, LLC (26.666%) (g) (ca)

Carr Waterfront Hotel, LLC (11.46%) (g) (h) (ca)

Carr Wharf 3B Leaseholder, LLC (11.46%) (g) (ca)

Carr Wharf 3B Lessee, LLC (11.46%) (g) (ca)

China Hotel Investment Ltd. (30.05%) (i) (am)

Desarrollo Alkoer Irapuato S. de R.L. de C.V.

(50%) (cg)

Desarrollo Alkoer Saltillo S. de R.L. de C.V.

(50%) (cg)

Desarrollo Alkoer Silao S. de R.L. de C.V.

(50%) (cg)

EDG Alpharetta EH, LLC (0%) (b) (h) (r)

Gestion Hotelera Gestel, C.A. (50%) (c) (h) (ba)

Groups360, LLC (11.96%) (h) (l)

Inter-Continental Hotels Saudi Arabia Ltd.

(40%) (bs)

NF III Seattle, LLC (25%) (g) (k)

NF III Seattle Op Co, LLC (25%) (g) (k)

Nuevas Fronteras S.A. (23.66%) (cd)

President Hotel & Tower Co Ltd. (30%) (bu)

Sustainable Luxury Gravity Global Private

Limited (51%) (h) (bz)

Tianjin ICBCI IHG Equity Investment Fund

Management Co., Limited (21.04%) (bv)

Universal Blvd Holdings LLC (25%) (k)

Universal Blvd Hotel Venture LLC (25%) (k)

---

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|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 239 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | **[Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)**<br>**[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)** | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

**32. Group companies continued**

**Key**<br>(a)Directly owned by InterContinental <br>Hotels Group PLC<br>(b)8% cumulative preference shares<br>(c)Ordinary A and ordinary B shares<br>(d)12.5% cumulative preference shares<br>(e)¼ vote ordinary shares and <br>ordinary shares<br>(f)Ordinary shares, 5% cumulative <br>preference shares and 7% <br>cumulative preference shares<br>(g)The entities do not have share <br>capital and are governed by an <br>operating agreement<br>(h)Accounted for as associates <br>and joint ventures due to IHG's <br>decision-making rights contained <br>in the partnership agreement<br>(i)Accounted for as an other financial <br>asset due to IHG being unable to <br>exercise significant influence over <br>the financial and operating policy <br>decisions of the entity<br>(j)Minority interest relates to one or <br>more individual shareholders who <br>are employed or were previously <br>employed by the entity<br>

**Registered addresses**

(k)Three Ravinia Drive, Suite 100, Atlanta,

GA 30346, USA

(l)251 Little Falls Drive, Suite 400, Wilmington,

New Castle County, DE 19808, USA

(m)Clarendon House, 2 Church Street,

Hamilton HM11, Bermuda

(n)1 Windsor Dials, Arthur Road, Windsor,

Berkshire, SL4 1RS, UK

(o)40 Temperance Street, Suite 3200,

Toronto, M5HOBR, Ontario, Canada

(p)Kingsfordweg 151, 1043 GR Amsterdam,

The Netherlands

(q)Room No. 23, Floor 16, Saigon Tower

Building, No. 29 Le Duan, Sai Gon Ward,

Ho Chi Minh City, Vietnam

(r)The Corporation Trust Centre, 1209

Orange Street, Wilmington, DE 19801, USA

(s)c/o BDO LLP, 5 Temple Square, Liverpool,

L2 5RH, UK

(t)Building 4, No 13 Xiao Gang Zhong

Ma Road, Zhuhai District, Guangzhou,

Guangdong, P.R. China

(u)7729 Innovation Boulevard, 3004 Al Aqeeq

District, 13519 Riyadh, Kingdom of Saudi

Arabia

(v)Flemming House, Wickhams Cay,

P.O. Box 662, Road Town, Tortola VG1110,

British Virgin Islands

(w)c/o Premier Corporate Services Limited,

First Floor, Unit C102, MA, Alidhooge,

Shaheedhu Kudaveni Thutthu Manik

Hingun, Male, Republic of Maldives

(x)31–33 rue Mogador, 75009 Paris, France

(y)Bucharest, 2nd District, 2 Gara Herăstrău

Street, 2nd floor, module 33, Romania

(z)J E Irausquin Boulevard 93, 1Eagle/

Paardenbaai, Oranjestad West, Aruba

(aa)Level 11, 20 Bond Street, Sydney NSW

2000, Australia

(ab)Ontario # 1050, Col. Providencia,

Guadalajara, Jalisco CP44630, Mexico

(ac)Administrative unit no. 8, the ground

floor of the building F1, El Emdad and

El Tamween Street, Nasr City, Cairo,

the Arab Republic of Egypt

(ad)Rond-Point Robert Schuman 11, 1040

Brussels, Belgium

(ae)QBC 4 – Am Belvedere 4, 1100,

Vienna, Austria

(af)Avenida da Republica, no 52 – 9,

1069 – 211, Lisbon, Portugal

(ag)Room 60, Section 11 Floor 3 Premises I,

Building 1, House 125, Varshavskoye

shosse Str, Vn.Ter.G. Municipal District

Severnoye Chertanovo, Moscow City,

117587, Russia

(ah)No. 84, Pan Haliain Street, Unit #1, Level 8,

Uniteam Marine Office Building,

Sanchuang Township, Yangon, Myanmar

(ai)230 Victoria Street, #13-00 Bugis Junction

Towers, 188024, Singapore

(aj)57, 9th Floor, Park Ventures Ecoplex,

Unit 902–904, Wireless Road, Limpini,

Pathum Wan Bangkok 103330, Thailand

(ak)Alameda Jau 536, Suite 3S-B, 01420-000

São Paulo, Brazil

(al)Avenida Cordoba 1547, piso 8, oficina A,

1055 Buenos Aires, Argentina

(am)The Phoenix Centre, George Street,

Belleville St. Michael, Barbados

(an)Level 10, 55 Shortland Street, Auckland

Central, Auckland 1010, New Zealand

(ao)Junghofstrasse 7, 60315, Frankfurt am

Main, Germany

(ap)Central Office Park Unit 4, 257 Jean

Avenue, Centurion 0157, South Africa

(aq)11th Floor, Building No. 10, Tower C,

DLF Phase-II, DLF Cyber City, Gurgaon,

Haryana-122002, India

(ar)20th Floor, Toranomon Kotoshira Tower,

2–8, Toranomon 1-chom, Minato-ku,

105-0001, Tokyo, Japan

(as)Venture Corporate Services (Mauritius)

Ltd, Level 3, Tower 1, Nexteracom Towers,

Cybercity, Ebene, Republic of Mauritius

(at)1103 Budapest, Köér utca 2/A. C. ép.,

Hungary

(au)Budapester Str. 2, 10787 Berlin, Germany

(av)Grevgatan 15, 11453 Stockholm, Sweden

(aw)Alameda Jau 536, Suite 3S-E, 01420-000

São Paulo, Brazil

(ax)1980 Pérodeau Street, Vaudreuil-Dorion,

J7V 8P7, Quebec, Canada

(ay)Room 1928, 19/F, Lee Garden One,

33 Hysan Avenue, Causeway Bay,

HongKong

(az)361 San Francisco Street Penthouse,

San Juan, PR 00901, Puerto Rico

(ba)Hotel Tamanaco Inter-Continental,

Final Av. Ppal, Mercedes, Caracas,

Venezuela

(bb)22/F Citigroup Tower, No. 33

Huayanshiqiao Road, Lujiazui, Pudong

New Area, 200120, Shanghai, P.R. China

(bc)Alameda Jau 536, Suite 3S-C, 01420-000

São Paulo, Brazil

(bd)Alameda Jau 536, Suite 3S-D, 01420-000

São Paulo, Brazil

(be)Viale Monte Nero n.84, 20135 Milano, Italy

(bf)Thurn-und-Taxis-Platz 6 – 60313 Frankfurt

am Main, Germany

(bg)c/o Juris Tax Ltd. Level 3, Ebene House,

Hotel Avenue, 33 Cybercity, Ebene 72201,

Republic of Mauritius

(bh)Menara Imperium 22nd Floor, Suite D, JI.

HR. Rasuna Said Kav.1, Guntur Sub-district,

Setiabudi District, South Jakarta 12980,

Indonesia

(bi)Primmer Piper Eggleston & Cramer PC,

30 Main St., Suite 500, P.O. Box 1489,

Burlington, VT 05402-1489, USA

(bj)Calle 49, Sur 45 A 300, Oficina 1102,

055422 Envigado, Antioquia, Colombia

(bk)10 Kings Lane, Roseau, Dominica

(bl)No. 56 Moo 5, Tambol Koh Yao Noi,

Amphur Ko Yao, Pang-nga Province 82160,

Thailand

(bm)Room 311, Building 1, No. 6 East Wen

Hua Yuan Road, Beijing Economy and

Technology Development Zone, Beijing,

P.R. China

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| 240 | IHG | Annual Report and Form 20-F 2025 |

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Notes to the Group Financial Statements continued<br>

**32. Group companies continued**

(bn)Room N306, 3rd Floor, Building 6, Binhai

Financial Street, No. 52 West Xincheng

Road, Tianjin Economy and Technology

Development Zone, Tianjin, P.R. China

(bo)Cesta v Mestni log 1, 1000 Ljubljana,

Slovenia

(bp)37A Professor Fridtjof Nansen Street,

5th Floor, District Sredets, Sofia, 1142,

Bulgaria

(bq)C/o Holiday Inn & Suites, Cnr Waigani

Drive & Wards Road, Port Moresby,

National Capital District, Papua New Guinea

(br)Suite 2201, Festival Tower, Dubai Festival

City, Al Rebbat St., P.O. Box 58191, Dubai,

United Arab Emirates

(bs)Madinah Road, Jeddah, P.O Box 9456,

Post Code 21413, Jeddah, Saudi Arabia

(bt)Maples Corporate Services Ltd.–

PO Box 309, Ugland House, Grand

Cayman – KY1-1104, Cayman Islands

(bu)971, 973 Ploenchit Road, Lumpini,

Pathumwan, Bangkok 10330, Thailand

(bv)Room R316, 3rd Floor, Building 6, Binhai

Financial Street, No. 52 West Xincheng

Road, Tianjin Economy and Technology

Development Zone, Tianjin, P.R. China

(bw)14th Floor, South China Building, 1–3

Wyndham Street, Hong Kong, SAR

(bx)Maslak Mah. Eski Büyükdere Cad.

Orjin Maslak İŞ, Merkezi Sitesi No: 27

IC KapiI No: 4 Sariyer/Istanbul, Turkey

(by)Paseo de Recoletos 37–41,

28004 Madrid, Spain

(bz)B-11515 Bhikaj Cama Place, New Delhi,

South Delhi, 110066 India

(ca)Carr Hospitality, LLC, 1455 Pennsylvania

Avenue, NW, Suite 200, Washington,

DC 20004, USA

(cb)84 Albert Street, Belize City, Belize, C.A.

(cc)Krunska 73, 3rd floor, office no.3, Vračar,

11000 Belgrade, Serbia

(cd)Moreno 809 2 Piso, C1091AAQ

Buenos Aires, Argentina

(ce)Bulevar Svetog Petra Cetinjskog

149 – 81000 Podgorica, Montenegro

(cf)Bernard Monteagudo 201, 15076,

Lima, Peru

(cg)Avenida Ejercito Nacional Mexicano

No. 769, Torre B Piso 8, Granada,

Miguel Hidalgo, Ciudad de Mexico,

CP 11520, Mexico

(ch)Ground Floor, Al Kamel Law Building,

Plot 52-b, Banks Area, Six of October City,

Egypt

(ci)Shop No. L3–6, Amity Building,

No. 125 High Level Road, Maharagama,

Colombo, Sri Lanka

(cj)Office #3082, 30th Floor, ASEM Tower,

517 Yeongdong-daero, Gangnam-gu,

Seoul, (Samseong-dong), 06164,

Republic of Korea

(ck)291 Rue des Tovets, Courchével 1850,

73120, Courchével, France

(cl)2 Wisconsin Circle #700, Chevy Chase,

MD 20815, USA

(cm)23/6 D, Anhaght Str., Yerevan,

0069, Armenia

(cn)Generation Park Z – ul. Towarowa 28,

00-839 Warsaw, Poland

(co)Suite 1, Ground Floor, The Financial

Services Centre, Bishops Court Hill,

St. Michael, BB14004, Barbados

(cp)Brumby Centre, Lot 42, Jalan Muhibbah,

87000 Labuan F.T., Malaysia

(cq)Blvd, Morazan, Centro Comercial

El Dorado, 6th Floor, Tegucigalpa,

Honduras

(cr)ATS Services Limited, Capital Center,

9th Floor, 2–4 Arch, Makarios III Ave.,

1065 Nicosia, Cyprus

(cs)Max Henriquez Ureña N° 11, Ensanche

Naco, Santo Domingo de Guzman,

Distrito Nacional, Santo Domingo

(ct)Harvard Business Services, Inc.,

16192 Coastal Hwy, Lewes,

Delaware 19958, USA

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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | **[Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)**<br>**[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)** | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | **[Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)**<br>**[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)** | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 241 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | **[Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)**<br>**[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)** | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | **[Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)**<br>**[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)** | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 243 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | **[Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)**<br>**[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)** | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | **[Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)**<br>**[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)** | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 245 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | **[Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)**<br>**[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)** | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

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| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | **[Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)**<br>**[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)** | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | **[Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)**<br>**[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)** | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) | Annual Report and Form 20-F 2025 | IHG | 247 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | **[Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)**<br>**[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)** | [Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)<br>[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388) |  |  |  |

---

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| | | |
|:---|:---|:---|
| 248 | IHG | Annual Report and Form 20-F 2025 |

---

[This page is intentionally left blank]

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 249 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

![AdditionalInfo_divider.jpg](ihg-20251231_g300.jpg)

---

| | |
|:---|:---|
| In this section | In this section |
| [Other financial information](#i8de52f7da8cb42fcba7bb475e53ba9b6_391) | [250](#i8de52f7da8cb42fcba7bb475e53ba9b6_391) |
| [Directors' Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_418) | [260](#i8de52f7da8cb42fcba7bb475e53ba9b6_418) |
| [Group information](#i8de52f7da8cb42fcba7bb475e53ba9b6_421) | [264](#i8de52f7da8cb42fcba7bb475e53ba9b6_421) |
| [Shareholder information](#i8de52f7da8cb42fcba7bb475e53ba9b6_454) | [280](#i8de52f7da8cb42fcba7bb475e53ba9b6_454) |
| [Schedule 1: Condensed Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_472)<br>[financial information](#i8de52f7da8cb42fcba7bb475e53ba9b6_472)<br>| [288](#i8de52f7da8cb42fcba7bb475e53ba9b6_472) |
| [Exhibits](#i8de52f7da8cb42fcba7bb475e53ba9b6_475) | [292](#i8de52f7da8cb42fcba7bb475e53ba9b6_475) |
| [Forward-looking statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_478) | [293](#i8de52f7da8cb42fcba7bb475e53ba9b6_478) |
| [Form 20-F cross-reference guide](#i8de52f7da8cb42fcba7bb475e53ba9b6_481) | [294](#i8de52f7da8cb42fcba7bb475e53ba9b6_481) |
| [Glossary](#i8de52f7da8cb42fcba7bb475e53ba9b6_484) | [297](#i8de52f7da8cb42fcba7bb475e53ba9b6_484) |
| [Useful information](#i8de52f7da8cb42fcba7bb475e53ba9b6_487) | [300](#i8de52f7da8cb42fcba7bb475e53ba9b6_487) |

---

avid Oklahoma City,

Quail Springs, Oklahoma, US.

---

| | | |
|:---|:---|:---|
| 250 | IHG | Annual Report and Form 20-F 2025 |

---

Other Financial Information<br>

**Use of Non-GAAP measures**

In addition to performance measures directly observable in the Group Financial Statements (IFRS measures), additional measures

(described as Non-GAAP) are presented that are used internally by management as key measures to assess performance.

Non-GAAP measures are either not defined under IFRS or are adjusted IFRS figures.

---

| | |
|:---|:---|
| **+** | Further explanation in relation to these measures and their definitions can be found on pages 107 to 112. |

---

**Revenue and operating profit Non-GAAP reconciliations** 

**Highlights for the year ended 31 December 2025**

Reportable segments

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Revenue | Revenue | Revenue | Revenue | Operating profit | Operating profit | Operating profit | Operating profit |
|  | 2025 | 2024 | Change | Change | 2025 | 2024 | Change | Change |
|  | $m | $m | $m | % | $m | $m | $m | % |
| Per Group income statement | 5189 | 4923 | 266 | 5.4 | 1198 | 1041 | 157 | 15.1 |
| System Fund and reimbursables | (2721) | (2611) | (110) | 4.2 | 46 | 83 | (37) | (44.6) |
| Operating exceptional items | – | – | – | – | 21 | – | 21 | NM<sup>a</sup> |
| Reportable segments | 2468 | 2312 | 156 | 6.7 | 1265 | 1124 | 141 | 12.5 |
| Reportable segments analysed as: |  |  |  |  |  |  |  |  |
| Fee business | 1897 | 1774 | 123 | 6.9 | 1231 | 1085 | 146 | 13.5 |
| Owned & leased | 544 | 515 | 29 | 5.6 | 43 | 45 | (2) | (4.4) |
| Insurance activities | 27 | 23 | 4 | 17.4 | (9) | (6) | (3) | 50.0 |
|  | 2468 | 2312 | 156 | 6.7 | 1265 | 1124 | 141 | 12.5 |

---

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

prior period.

Underlying revenue and underlying operating profit

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Revenue | Revenue | Revenue | Revenue | Operating profit | Operating profit | Operating profit | Operating profit |
|  | 2025 | 2024 | Change | Change | 2025 | 2024 | Change | Change |
|  | $m | $m | $m | % | $m | $m | $m | % |
| Reportable segments (see above) | 2468 | 2312 | 156 | 6.7 | 1265 | 1124 | 141 | 12.5 |
| Significant liquidated damages | (7) | – | (7) | NM<sup>b</sup> | (7) | – | (7) | NM<sup>b</sup> |
| Owned & leased asset acquisition <br>and disposal<sup>a</sup><br>| (7) | (8) | 1 | (12.5) | 6 | 5 | 1 | 20.0 |
| Currency impact | – | 17 | (17) | NM<sup>b</sup> | – | – | – | – |
| Underlying revenue and <br>underlying operating profit<br>| 2454 | 2321 | 133 | 5.7 | 1264 | 1129 | 135 | 12.0 |

---

a.The results of one Kimpton hotel in 2025 (being the year of lease commencement) and one Regent hotel in 2024 (being the year of lease expiration) are

removed to determine the underlying growth, adjusted to reflect 2025 rates.

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

prior period.

Underlying fee revenue and underlying fee operating profit

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Revenue | Revenue | Revenue | Revenue | Operating profit | Operating profit | Operating profit | Operating profit |
|  | 2025 | 2024 | Change | Change | 2025 | 2024 | Change | Change |
|  | $m | $m | $m | % | $m | $m | $m | % |
| Reportable segments fee business <br>(see above)<br>| 1897 | 1774 | 123 | 6.9 | 1231 | 1085 | 146 | 13.5 |
| Significant liquidated damages | (7) | – | (7) | NM<sup>a</sup> | (7) | – | (7) | NM<sup>a</sup> |
| Currency impact | – | 6 | (6) | NM<sup>a</sup> | – | (1) | 1 | NM<sup>a</sup> |
| Underlying fee revenue and <br>underlying fee operating profit<br>| 1890 | 1780 | 110 | 6.2 | 1224 | 1084 | 140 | 12.9 |

---

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

prior period.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 251 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

**Revenue and operating profit Non-GAAP reconciliations continued**

Americas

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Revenue | Revenue | Revenue | Revenue | Operating profit<sup>b</sup> | Operating profit<sup>b</sup> | Operating profit<sup>b</sup> | Operating profit<sup>b</sup> |
|  | 2025 | 2024 | Change | Change | 2025 | 2024 | Change | Change |
|  | $m | $m | $m | % | $m | $m | $m | % |
| Per Group financial statements, <br>note 2<br>| 1129 | 1141 | (12) | (1.1) | 836 | 828 | 8 | 1.0 |
| Reportable segments analysed as<sup>a</sup>: |  |  |  |  |  |  |  |  |
| Fee business | 963 | 979 | (16) | (1.6) | 804 | 795 | 9 | 1.1 |
| Owned & leased | 166 | 162 | 4 | 2.5 | 32 | 33 | (1) | (3.0) |
|  | 1129 | 1141 | (12) | (1.1) | 836 | 828 | 8 | 1.0 |
| Reportable segments (see above) | 1129 | 1141 | (12) | (1.1) | 836 | 828 | 8 | 1.0 |
| Significant liquidated damages | (7) | – | (7) | NM<sup>c</sup> | (7) | – | (7) | NM<sup>c</sup> |
| Currency impact | – | (3) | 3 | NM<sup>c</sup> | – | (3) | 3 | NM<sup>c</sup> |
| Underlying revenue and <br>underlying operating profit<br>| 1122 | 1138 | (16) | (1.4) | 829 | 825 | 4 | 0.5 |

---

a.Revenues as included in the Group Financial Statements, note 3.

b.Before exceptional items.

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

prior period.

EMEAA

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Revenue | Revenue | Revenue | Revenue | Operating profit<sup>b</sup> | Operating profit<sup>b</sup> | Operating profit<sup>b</sup> | Operating profit<sup>b</sup> |
|  | 2025 | 2024 | Change | Change | 2025 | 2024 | Change | Change |
|  | $m | $m | $m | % | $m | $m | $m | % |
| Per Group financial statements, <br>note 2<br>| 811 | 748 | 63 | 8.4 | 303 | 270 | 33 | 12.2 |
| Reportable segments analysed as<sup>a</sup>: |  |  |  |  |  |  |  |  |
| Fee business | 433 | 395 | 38 | 9.6 | 292 | 258 | 34 | 13.2 |
| Owned & leased | 378 | 353 | 25 | 7.1 | 11 | 12 | (1) | (8.3) |
|  | 811 | 748 | 63 | 8.4 | 303 | 270 | 33 | 12.2 |
| Reportable segments (see above) | 811 | 748 | 63 | 8.4 | 303 | 270 | 33 | 12.2 |
| Owned & leased asset acquisition <br>and disposal<sup>d</sup><br>| (7) | (8) | 1 | (12.5) | 6 | 5 | 1 | 20.0 |
| Currency impact | – | 19 | (19) | NM<sup>c</sup> | – | 7 | (7) | NM<sup>c</sup> |
| Underlying revenue and <br>underlying operating profit<br>| 804 | 759 | 45 | 5.9 | 309 | 282 | 27 | 9.6 |

---

a.Revenues as included in the Group Financial Statements, note 3.

b.Before exceptional items.

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

prior period.

d.The results of one Kimpton hotel in 2025 (being the year of lease commencement) and one Regent hotel in 2024 (being the year of lease expiration) are

removed to determine the underlying growth, adjusted to reflect 2025 rates.

---

| | | |
|:---|:---|:---|
| 252 | IHG | Annual Report and Form 20-F 2025 |

---

Other Financial Information continued<br>

**Revenue and operating profit Non-GAAP reconciliations continued**

Greater China

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Revenue | Revenue | Revenue | Revenue | Operating profit<sup>b</sup> | Operating profit<sup>b</sup> | Operating profit<sup>b</sup> | Operating profit<sup>b</sup> |
|  | 2025 | 2024 | Change | Change | 2025 | 2024 | Change | Change |
|  | $m | $m | $m | % | $m | $m | $m | % |
| Per Group financial statements, <br>note 2<br>| 165 | 161 | 4 | 2.5 | 99 | 98 | 1 | 1.0 |
| Reportable segments analysed as<sup>a</sup>: |  |  |  |  |  |  |  |  |
| Fee business | 165 | 161 | 4 | 2.5 | 99 | 98 | 1 | 1.0 |
|  | 165 | 161 | 4 | 2.5 | 99 | 98 | 1 | 1.0 |
| Reportable segments (see above) | 165 | 161 | 4 | 2.5 | 99 | 98 | 1 | 1.0 |
| Underlying revenue and <br>underlying operating profit<br>| 165 | 161 | 4 | 2.5 | 99 | 98 | 1 | 1.0 |

---

a.Revenues as included in the Group Financial Statements, note 3.

b.Before exceptional items.

c. **Highlights for the year ended 31 December 2024**

Reportable segments

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Revenue | Revenue | Revenue | Revenue | Operating profit | Operating profit | Operating profit | Operating profit |
|  | 2024 | 2023 | Change | Change | 2024 | 2023 | Change | Change |
|  | $m | $m | $m | % | $m | $m | $m | % |
| Per Group income statement | 4923 | 4624 | 299 | 6.5 | 1041 | 1066 | (25) | (2.3) |
| System Fund and reimbursables | (2611) | (2460) | (151) | 6.1 | 83 | (19) | 102 | NM<sup>a</sup> |
| Operating exceptional items | – | – | – | – | – | (28) | 28 | NM<sup>a</sup> |
| Reportable segments | 2312 | 2164 | 148 | 6.8 | 1124 | 1019 | 105 | 10.3 |
| Reportable segments analysed as: |  |  |  |  |  |  |  |  |
| Fee business | 1774 | 1672 | 102 | 6.1 | 1085 | 992 | 93 | 9.4 |
| Owned & leased | 515 | 471 | 44 | 9.3 | 45 | 29 | 16 | 55.2 |
| Insurance activities | 23 | 21 | 2 | 9.5 | (6) | (2) | (4) | 200.0 |
|  | 2312 | 2164 | 148 | 6.8 | 1124 | 1019 | 105 | 10.3 |

---

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

in the prior period.

Underlying revenue and underlying operating profit

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Revenue | Revenue | Revenue | Revenue | Operating profit | Operating profit | Operating profit | Operating profit |
|  | 2024 | 2023 | Change | Change | 2024 | 2023 | Change | Change |
|  | $m | $m | $m | % | $m | $m | $m | % |
| Reportable segments (see above) | 2312 | 2164 | 148 | 6.8 | 1124 | 1019 | 105 | 10.3 |
| Owned & leased asset disposals<sup>b</sup> | (8) | (10) | 2 | (20.0) | 4 | 3 | 1 | 33.3 |
| Currency impact | – | (7) | 7 | NM<sup>a</sup> | – | (12) | 12 | NM<sup>a</sup> |
| Underlying revenue and <br>underlying operating profit<br>| 2304 | 2147 | 157 | 7.3 | 1128 | 1010 | 118 | 11.7 |

---

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

in the prior period.

b.The results of one Regent hotel are removed in 2024 (being the year of lease expiration) and in 2023 to determine the underlying growth.

c. ---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 253 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

**Revenue and operating profit Non-GAAP reconciliations continued**

Underlying fee revenue and underlying fee operating profit

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Revenue | Revenue | Revenue | Revenue | Operating profit | Operating profit | Operating profit | Operating profit |
|  | 2024 | 2023 | Change | Change | 2024 | 2023 | Change | Change |
|  | $m | $m | $m | % | $m | $m | $m | % |
| Reportable segments fee business <br>(see above)<br>| 1774 | 1672 | 102 | 6.1 | 1085 | 992 | 93 | 9.4 |
| Currency impact | – | (9) | 9 | NM<sup>a</sup> | – | (11) | 11 | NM<sup>a</sup> |
| Underlying fee revenue and <br>underlying fee operating profit<br>| 1774 | 1663 | 111 | 6.7 | 1085 | 981 | 104 | 10.6 |

---

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

in the prior period.

**Fee margin reconciliation**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| Revenue |  |  |  |
| Reportable segments analysed as fee business (page 250) | 1897 | 1774 | 1672 |
| Significant liquidated damages<sup>a</sup> | (7) | – | – |
|  | 1890 | 1774 | 1672 |
| Operating profit<sup>b</sup> |  |  |  |
| Reportable segments analysed as fee business (page 250) | 1231 | 1085 | 992 |
| Significant liquidated damages<sup>a</sup> | (7) | – | – |
|  | 1224 | 1085 | 992 |
| Fee margin<sup>c</sup> | 64.8% | 61.2% | 59.3% |

---

a.$7m recognised in 2025 reflects the significant liquidated damages related to one hotel in the Americas.

b.Before exceptional items.

c.Reported as a KPI on page 42.

Fee margin is broken down by region as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Year ended 31 December 2025 | Americas | EMEAA | Greater <br>China<br>| Central<sup>b</sup> | Total |
| Revenue $m |  |  |  |  |  |
| Reportable segments analysed as fee business (pages 251 to 252) | 963 | 433 | 165 | 336 | 1897 |
| Significant liquidated damages | (7) | – | – | – | (7) |
|  | 956 | 433 | 165 | 336 | 1890 |
| Operating profit<sup>a</sup> |  |  |  |  |  |
| Reportable segments analysed as fee business (pages 251 to 252) | 804 | 292 | 99 | 36 | 1231 |
| Significant liquidated damages | (7) | – | – | – | (7) |
|  | 797 | 292 | 99 | 36 | 1224 |
| Fee margin | 83.4% | 67.4% | 60.0% | 10.7% | 64.8% |

---

a.Before exceptional items.

b.Central fee business revenue and operating profit as per note 2 to the Financial Statements, and excludes revenue and operating loss from insurance

activities of $27m and $9m, respectively.

---

| | | |
|:---|:---|:---|
| 254 | IHG | Annual Report and Form 20-F 2025 |

---

Other Financial Information continued<br>

**Fee margin reconciliation continued**

c. ---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Year ended 31 December 2024 | Americas | EMEAA | Greater <br>China<br>| Central<sup>b</sup> | Total |
| Revenue $m |  |  |  |  |  |
| Reportable segments analysed as fee business (pages 251 to 252) | 979 | 395 | 161 | 239 | 1774 |
|  | 979 | 395 | 161 | 239 | 1774 |
| Operating profit<sup>a</sup> |  |  |  |  |  |
| Reportable segments analysed as fee business (pages 251 to 252) | 795 | 258 | 98 | (66) | 1085 |
|  | 795 | 258 | 98 | (66) | 1085 |
| Fee margin | 81.2% | 65.3% | 60.9% | (27.6)% | 61.2% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Year ended 31 December 2023 | Americas | EMEAA | Greater <br>China<br>| Central<sup>b</sup> | Total |
| Revenue $m |  |  |  |  |  |
| Reportable segments analysed as fee business (pages 251 to 252) | 957 | 354 | 161 | 200 | 1672 |
|  | 957 | 354 | 161 | 200 | 1672 |
| Operating profit<sup>a</sup> |  |  |  |  |  |
| Reportable segments analysed as fee business (pages 251 to 252) | 787 | 214 | 96 | (105) | 992 |
|  | 787 | 214 | 96 | (105) | 992 |
| Fee margin | 82.2% | 60.5% | 59.6% | (52.5)% | 59.3% |

---

a.Before exceptional items.

b.Central fee business revenue and operating profit as per note 2 to the Financial Statements, and excludes revenue and operating loss from insurance

activities of $23m and $6m, respectively (2023: $21m and $2m).

**Net and gross capital expenditure reconciliation**

---

| | | |
|:---|:---|:---|
|  | 12 months ended <br>31 December | 12 months ended <br>31 December |
|  | 2025 | 2024 |
|  | $m | $m |
| Net cash from investing activities | (190) | (99) |
| Adjusted for: |  |  |
| Contract acquisition costs, net of repayments | (179) | (237) |
| System Fund depreciation and amortisation<sup>a</sup> | 78 | 82 |
| Payment of deferred purchase consideration | – | 10 |
| Repayments related to investments supporting the Group's insurance activities | (3) | (5) |
| Changes in bank accounts pledged as security | (7) | – |
| Purchase of brands | 120 | – |
| Finance lease receipts | (4) | (4) |
| Net capital expenditure | (185) | (253) |
| Further adjusted for: |  |  |
| Repayment of contract acquisition costs | (2) | – |
| Other disposals and repayments | (4) | (15) |
| System Fund depreciation and amortisation<sup>a</sup> | (78) | (82) |
| Gross capital expenditure | (269) | (350) |

---

a.Excludes depreciation on right-of-use assets.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 255 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

**Net and gross capital expenditure reconciliation continued**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 12 months ended 31 December 2025 | 12 months ended 31 December 2025 | 12 months ended 31 December 2025 | 12 months ended 31 December 2024 | 12 months ended 31 December 2024 | 12 months ended 31 December 2024 |
| $m | Gross | Repaid | Net | Gross | Repaid | Net |
| Analysed as: |  |  |  |  |  |  |
| Key money contract acquisition costs | (179) | 2 | (177) | (206) | – | (206) |
| Maintenance | (31) | – | (31) | (31) | – | (31) |
| Recyclable capital expenditure: |  |  |  |  |  |  |
| Recyclable contract acquisition costs | (2) | – | (2) | (31) | – | (31) |
| Other recyclable investments | (14) | 4 | (10) | (37) | 15 | (22) |
| Capital expenditure: System Fund investments | (43) | 78 | 35 | (45) | 82 | 37 |
| Total capital expenditure | (269) | 84 | (185) | (350) | 97 | (253) |

---

**Adjusted free cash flow reconciliation**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December |
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
|  | $m | $m | $m | $m | $m |
| Net cash from operating activities | 898 | 724 | 893 | 646 | 636 |
| Adjusted for: |  |  |  |  |  |
| Purchase of shares by employee share trusts | (10) | (27) | (8) | (1) | – |
| Gross maintenance capital expenditure | (31) | (31) | (38) | (44) | (33) |
| Cash flows relating to exceptional items<sup>b</sup> | 57 | (8) | 29 | 43 | 12 |
| Principal element of lease payments | (30) | (46) | (28) | (36) | (32) |
| Deferred purchase consideration | – | 3 | – | – | – |
| Recyclable contract acquisition costs | 2 | 31 | – | – | – |
| Repayments/(payments) related to investments <br>supporting the Group's insurance activities<br>| 3 | 5 | (11) | 7 | 6 |
| Finance lease receipts | 4 | 4 |  | – | – |
| Adjusted free cash flow<sup>a</sup> | 893 | 655 | 837 | 615 | 589 |

---

a.Reported as a KPI on page 42.

b.In 2025, includes $34m of exceptional tax paid

**Adjusted interest reconciliation**

---

| | | | |
|:---|:---|:---|:---|
|  | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December |
|  | 2025 | 2024 | 2023 |
|  |  | Re-presented<sup>a</sup> | Re-presented<sup>a</sup> |
|  | $m | $m | $m |
| Net financial expenses |  |  |  |
| Financial income | 49 | 63 | 39 |
| Financial expenses | (202) | (178) | (126) |
|  | (153) | (115) | (87) |
| Adjusted for: |  |  |  |
| Interest attributable to the System Fund | (47) | (50) | (44) |
|  | (47) | (50) | (44) |
| Adjusted interest | (200) | (165) | (131) |

---

a.An adjustment was previously made to remove foreign exchange gains and losses presented within 'financial expenses'. These are now reported

separately in the Group Income Statement. This change does not affect the total adjusted interest.

---

| | | |
|:---|:---|:---|
| 256 | IHG | Annual Report and Form 20-F 2025 |

---

Other Financial Information continued<br>

**Adjusted tax and tax rate reconciliations**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 |
|  | Profit <br>before tax<br>| Tax | Rate | Profit <br>before tax<br>| Tax | Rate | Profit <br>before tax<br>| Tax | Rate |
|  | $m | $m | % | $m | $m | % | $m | $m | % |
| Group income statement | 1074 | (315) | 29.3 | 897 | (269) | 30.0 | 1010 | (260) | 25.7 |
| Adjusted for: |  |  |  |  |  |  |  |  |  |
| Exceptional items | 21 | 16 |  | – | – |  | (28) | 7 |  |
| Foreign exchange (gains)/<br>losses<br>| (37) | – |  | 25 | 3 |  | (35) | (3) |  |
| System Fund | 46 | 9 |  | 83 | 4 |  | (19) | 3 |  |
| Interest attributable to the <br>System Fund<br>| (47) | – |  | (50) | – |  | (44) | – |  |
| Remeasurement losses <br>on contingent purchase <br>consideration<br>| 8 | – |  | 4 | – |  | 4 | – |  |
|  | 1065 | (290) | 27.2 | 959 | (262) | 27.3 | 888 | (253) | 28.5 |

---

**Adjusted earnings per ordinary share reconciliation**

---

| | | | |
|:---|:---|:---|:---|
|  | 12 months ended 31 December | 12 months ended 31 December | 12 months ended 31 December |
|  | 2025 | 2024 | 2023 |
|  | $m | $m | $m |
| Profit available for equity holders | 758 | 628 | 750 |
| Adjusting items: |  |  |  |
| System Fund and reimbursable result | 46 | 83 | (19) |
| Interest attributable to the System Fund | (47) | (50) | (44) |
| Operating exceptional items | 21 | – | (28) |
| Remeasurement losses on contingent purchase consideration | 8 | 4 | 4 |
| Foreign exchange (gains)/losses | (37) | 25 | (35) |
| Tax attributable to the System Fund | 9 | 4 | 3 |
| Tax on foreign exchange (gains)/losses | – | 3 | (3) |
| Tax exceptional items | 16 | – | 7 |
| Adjusted earnings | 774 | 697 | 635 |
| Basic weighted average number of ordinary shares (millions) | 154.4 | 161.2 | 169.0 |
| Adjusted earnings per ordinary share (cents) | 501.3 | 432.4 | 375.7 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 257 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

**Revenue per available room (RevPAR), average daily rate and occupancy**

RevPAR is the primary metric used by management to track hotel performance across regions and brands. RevPAR is also a

commonly used performance measure in the hotel industry. RevPAR comprises IHG's system rooms revenue divided by the

number of room nights available and can be derived from occupancy rate multiplied by average daily rate (ADR). Occupancy

rate is rooms occupied by hotel guests expressed as a percentage of rooms that are available. ADR is rooms revenue divided by

the number of room nights sold.

References to RevPAR, occupancy and ADR are presented on a comparable basis comprising groupings of hotels that have

traded in both the current and prior year. The principal exclusions in deriving this measure are new hotels, hotels closed for

major refurbishment and hotels sold in either of the two years. RevPAR and ADR are quoted at a constant US$ conversion rate,

in order to allow a better understanding of the comparable year-on-year trading performance excluding distortions created

by fluctuations in exchange rates.

The following tables present RevPAR statistics for the year ended 31 December 2025 and a comparison to 2024. Fee business

and owned & leased statistics are for comparable hotels and include only those hotels in the Group's System at 31 December

2025 and franchised, managed, owned or leased by the Group since 1 January 2024. The comparison with 2024 is at constant

US$ exchange rates.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fee business | Fee business | Owned & leased | Owned & leased |
|  | 2025 | Change vs <br>2024<br>| 2025 | Change vs <br>2024<br>|
| Americas |  |  |  |  |
| InterContinental |  |  |  |  |
| Occupancy | 67.5 | 0.8%pts | 83.0 | (0.1)%pts |
| Average daily rate | $237.26 | 3.4% | $358.75 | 1.0% |
| RevPAR | $160.08 | 4.6% | $297.88 | 0.8% |
| Kimpton |  |  |  |  |
| Occupancy | 73.8 | 0.8%pts | – | – |
| Average daily rate | $281.48 | 0.1% | – | – |
| RevPAR | $207.64 | 1.3% | – | – |
| Hotel Indigo |  |  |  |  |
| Occupancy | 68.1 | 0.6%pts | – | – |
| Average daily rate | $186.96 | (0.6)% | – | – |
| RevPAR | $127.41 | 0.3% | – | – |
| Crowne Plaza |  |  |  |  |
| Occupancy | 59.0 | 0.4%pts | – | – |
| Average daily rate | $136.67 | (0.2)% | – | – |
| RevPAR | $80.57 | 0.5% | – | – |
| EVEN Hotels |  |  |  |  |
| Occupancy | 71.0 | (0.4)%pts | – | – |
| Average daily rate | $162.19 | (0.7)% | – | – |
| RevPAR | $115.10 | (1.2)% | – | – |
| Holiday Inn Express |  |  |  |  |
| Occupancy | 69.1 | 0.0%pts | – | – |
| Average daily rate | $132.23 | 0.2% | – | – |
| RevPAR | $91.41 | 0.2% | – | – |
| Holiday Inn |  |  |  |  |
| Occupancy | 62.7 | (0.8)%pts | 68.4 | (2.1)%pts |
| Average daily rate | $129.06 | 0.5% | $273.93 | 5.2% |
| RevPAR | $80.98 | (0.7)% | $187.49 | 2.1% |
| avid hotels |  |  |  |  |
| Occupancy | 64.6 | (0.4)%pts | – | – |
| Average daily rate | $106.91 | (0.7)% | – | – |
| RevPAR | $69.04 | (1.2)% | – | – |

---

---

| | | |
|:---|:---|:---|
| 258 | IHG | Annual Report and Form 20-F 2025 |

---

Other Financial Information continued<br>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fee business | Fee business | Owned & leased | Owned & leased |
|  | 2025 | Change vs <br>2024<br>| 2025 | Change vs <br>2024<br>|
| Staybridge Suites |  |  |  |  |
| Occupancy | 76.3 | 0.1%pts | – | – |
| Average daily rate | $134.45 | 0.2% | – | – |
| RevPAR | $102.52 | 0.3% | – | – |
| Candlewood Suites |  |  |  |  |
| Occupancy | 72.8 | (0.4)%pts | – | – |
| Average daily rate | $102.77 | (0.1)% | – | – |
| RevPAR | $74.83 | (0.6)% | – | – |
| EMEAA |  |  |  |  |
| Six Senses |  |  |  |  |
| Occupancy | 44.6 | 5.5%pts | 60.8 | (3.0)%pts |
| Average daily rate | $1087.65 | 2.2% | $1271.22 | 12.5% |
| RevPAR | $485.05 | 16.4% | $773.05 | 7.2% |
| InterContinental |  |  |  |  |
| Occupancy | 69.1 | 2.7%pts | 69.5 | 2.0%pts |
| Average daily rate | $254.09 | 2.9% | $292.36 | 1.3% |
| RevPAR | $175.59 | 7.0% | $203.14 | 4.3% |
| Kimpton |  |  |  |  |
| Occupancy | 75.6 | 1.0%pts | 77.9 | (0.1)%pts |
| Average daily rate | $310.50 | 1.0% | $310.52 | (0.6)% |
| RevPAR | $234.77 | 2.3% | $241.78 | (0.8)% |
| Hotel Indigo |  |  |  |  |
| Occupancy | 75.9 | 1.8%pts | – | – |
| Average daily rate | $177.38 | 1.0% | – | – |
| RevPAR | $134.66 | 3.4% | – | – |
| voco |  |  |  |  |
| Occupancy | 70.9 | 3.0%pts | 82.0 | 1.2%pts |
| Average daily rate | $120.40 | 2.1% | $178.95 | 0.4% |
| RevPAR | $85.33 | 6.7% | $146.73 | 1.8% |
| Crowne Plaza |  |  |  |  |
| Occupancy | 71.7 | 1.7%pts | – | – |
| Average daily rate | $132.62 | 3.0% | – | – |
| RevPAR | $95.05 | 5.4% | – | – |
| Holiday Inn Express |  |  |  |  |
| Occupancy | 78.1 | 1.1%pts | – | – |
| Average daily rate | $100.86 | 0.1% | – | – |
| RevPAR | $78.74 | 1.4% | – | – |
| Holiday Inn |  |  |  |  |
| Occupancy | 71.2 | 1.0%pts | – | – |
| Average daily rate | $108.58 | 1.0% | – | – |
| RevPAR | $77.32 | 2.4% | – | – |
| Staybridge Suites |  |  |  |  |
| Occupancy | 80.8 | 1.7%pts | – | – |
| Average daily rate | $124.87 | 1.1% | – | – |
| RevPAR | $100.94 | 3.3% | – | – |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 259 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fee business | Fee business | Owned & leased | Owned & leased |
|  | 2025 | Change vs <br>2024<br>| 2025 | Change vs <br>2024<br>|
| Greater China |  |  |  |  |
| Regent |  |  |  |  |
| Occupancy | 73.4 | 5.5%pts | – | – |
| Average daily rate | $246.06 | 10.2% | – | – |
| RevPAR | $180.55 | 19.1% | – | – |
| InterContinental |  |  |  |  |
| Occupancy | 64.3 | 2.0%pts | – | – |
| Average daily rate | $107.36 | (5.0)% | – | – |
| RevPAR | $69.04 | (2.0)% | – | – |
| Hotel Indigo |  |  |  |  |
| Occupancy | 63.5 | 5.0%pts | – | – |
| Average daily rate | $124.23 | (3.1)% | – | – |
| RevPAR | $78.86 | 5.1% | – | – |
| HUALUXE |  |  |  |  |
| Occupancy | 62.1 | 2.3%pts | – | – |
| Average daily rate | $72.52 | (5.4)% | – | – |
| RevPAR | $45.03 | (1.6)% | – | – |
| Crowne Plaza |  |  |  |  |
| Occupancy | 61.0 | 0.4%pts | – | – |
| Average daily rate | $71.60 | (3.5)% | – | – |
| RevPAR | $43.69 | (2.9)% | – | – |
| Holiday Inn Express |  |  |  |  |
| Occupancy | 56.5 | (1.1)%pts | – | – |
| Average daily rate | $39.83 | (4.7)% | – | – |
| RevPAR | $22.49 | (6.5)% | – | – |
| Holiday Inn |  |  |  |  |
| Occupancy | 56.8 | (0.2)%pts | – | – |
| Average daily rate | $54.05 | (4.6)% | – | – |
| RevPAR | $30.72 | (4.9)% | – | – |

---

---

| | | |
|:---|:---|:---|
| 260 | IHG | Annual Report and Form 20-F 2025 |

---

Directors' Report<br>

This Directors' Report includes the

information required to be given in line

with the Companies Act or, where

provided elsewhere, an appropriate cross

reference is given. The Governance

Report approved by the Board is provided

on pages 116 to 163 and incorporated

by reference herein.

**Subsidiaries, joint ventures** 

**and associated undertakings**

The Group has over 340 subsidiaries,

joint ventures, associates and related

undertakings (including branches

outside of the United Kingdom).

A list of subsidiaries and associated

undertakings disclosed in accordance

with the Companies Act is provided

at note 32 of the Group Financial

Statements on pages 237 to 240.

**Directors**

The Directors may exercise all the

powers of the Company, subject to

the Articles of Association, legislation

and regulation. This includes the

ability to exercise the authority to allot

or purchase the Company's shares

pursuant to authorities granted by

shareholders at the Company's AGM

every year. Further details of the powers

of the Company's Directors can be

found on page 275.

---

| | |
|:---|:---|
| **+** | For biographies of the current Directors <br>see pages 118 to 119. |
|  | For biographies of the current Directors <br>see pages 118 to 119. |

---

**Directors' and Officers' (D&O)** 

**liability insurance and existence** 

**of qualifying indemnity provisions**

The Company maintains the Group's

D&O liability insurance policy, which

covers Directors and Officers of the

Company defending civil proceedings

brought against them in their capacity

as Directors or Officers of the Company

(including those who served as Directors

or Officers during the year). There were

no indemnity provisions relating to the

UK pension plan for the benefit of

the Directors during 2025.

**Articles of Association**

---

| | |
|:---|:---|
| **+** | A summary is provided on pages 275 to 276. |

---

---

| | |
|:---|:---|
| **+** | The Company's Articles of Association <br>may only be amended by special resolution <br>and are available on the Company's <br>website at ihgplc.com/investors under <br>Corporate governance. |
|  | The Company's Articles of Association <br>may only be amended by special resolution <br>and are available on the Company's <br>website at ihgplc.com/investors under <br>Corporate governance. |
|  | The Company's Articles of Association <br>may only be amended by special resolution <br>and are available on the Company's <br>website at ihgplc.com/investors under <br>Corporate governance. |
|  | The Company's Articles of Association <br>may only be amended by special resolution <br>and are available on the Company's <br>website at ihgplc.com/investors under <br>Corporate governance. |
|  | The Company's Articles of Association <br>may only be amended by special resolution <br>and are available on the Company's <br>website at ihgplc.com/investors under <br>Corporate governance. |

---

**Shares**

**Share capital**

The Company's issued share capital

at 31 December 2025 consisted of

157,126,590 ordinary shares of 20 <sup>340</sup>/399

pence each, including 5,481,782 shares

held in treasury, which constituted

3.49% of the total issued share capital

(including treasury shares).

During the year, the Company

announced a change in the trading

currency of its ordinary shares on the

London Stock Exchange from pounds

sterling to US dollars, effective 2 January

2026. The nominal currency of the

shares remains in pounds sterling.

There are no special control rights

or restrictions on share transfers or

limitations on the holding of any

class of shares.

During 2025, 760,000 shares were

transferred from treasury to the

employee share ownership trust.

As far as is known to management,

IHG is not directly or indirectly owned

or controlled by another company or

by any government. The Board focuses

on shareholder value creation. When it

decides to return capital to shareholders,

it considers all of its options, including

share buybacks and special dividends.

**Share issues and buybacks**

In December 2025, we completed

our $900m share buyback programme,

which was announced and commenced

on 18 February 2025. As part of the

programme, 7,585,264 shares were

bought back and cancelled, representing

total consideration of $892m.

Further information on the transactions

that took place this year can be found

on page 286.

**Dividends**

---

| | | |
|:---|:---|:---|
| Dividends | Ordinary <br>shares<br>| ADRs |
| Interim dividend |  |  |
| An interim dividend <br>was paid on 2 October <br>2025 to shareholders <br>on the register at the <br>close of business on <br>22 August 2025.<br>| 43.3p | 58.6¢ |
| Final dividend |  |  |
| Subject to approval at <br>the 2026 AGM, a final <br>dividend of 125.9¢ in <br>respect of 2025 will <br>be payable on 14 May <br>2026 to shareholders <br>on the register at the <br>close of business on <br>10 April 2026<br>| 125.9¢<sup>a</sup> | 125.9¢ |

---

a.The sterling amount of the final dividend will be

announced on 27 April 2026 using the average

of the daily exchange rates for the three

working days commencing 22 April 2026.

**Major institutional shareholders**

As at 12 February 2026, being the last practicable date, the Company had been notified of the following significant holdings

in its ordinary shares under section 5 of the UK Disclosure Guidance and Transparency Rules (DTRs).

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | As at 12 February 2026 | As at 12 February 2026 | As at 14 February 2025 | As at 14 February 2025 | As at 16 February 2024 | As at 16 February 2024 |
| Shareholder | Ordinary<br>shares/ADSs<sup>a</sup><br>| %<sup>a</sup> | Ordinary<br>shares/ADSs<sup>a</sup><br>| %<sup>a</sup> | Ordinary<br>shares/ADSs<sup>a</sup><br>| %<sup>a</sup> |
| BlackRock, Inc. | 10190311<sup>b</sup> | 6.14 | 10190311<sup>b</sup> | 6.14 | 10190311<sup>b</sup> | 6.14 |
| Boron Investments B.V. | 8280000 | 5.01 | 8280000 | 5.01 | 8280000 | 5.01 |
| FMR LLC | 8078031 | 5.01 | 8078031 | 5.01 | – | – |
| The Capital Group Companies, Inc. | 7424031 | 4.90 | 8980505 | 5.12 | 8980505 | 5.12 |
| Fiera Capital Corporation<sup>c</sup> | 6933553 | 4.38 | 6933553 | 4.38 | – | – |
| PineStone Asset Management Inc. | 12680354 | 8.07 | 12950002 | 7.08 | 12950002 | 7.08 |

---

a.The numbers of shares and percentages of voting rights are as set out in the relevant disclosures made in accordance with Rule 5 of the DTRs

and do not necessarily reflect the impact of any share buyback programmes or any changes in shareholdings subsequent to the date of notification

that are not notified to the Company under the DTRs.

b.Total shown includes 1,913,249 qualifying financial instruments to which voting rights are attached.

c.We have included details of Fiera Capital Corporation's holding, as disclosed to us on 21 January 2025; however, it is the Company's understanding

that the holding of Fiera Capital Corporation is included within the overall holding of PineStone Asset Management Inc, as disclosed to us in

August 2025.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 261 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

The Company's major shareholders

have the same voting rights as other

shareholders. The Company does

not know of any arrangements,

the operation of which may result

in a change in its control.

---

| | |
|:---|:---|
| **+** | For further details on shareholder profiles <br>see page 287. |
|  | For further details on shareholder profiles <br>see page 287. |

---

**The Companies (Miscellaneous** 

**Reporting) Regulations 2018**

Set out below is our employee

engagement statement and on page 262,

our statement summarising how the

Directors have had regard to the need

to foster the Company's business

relationships with suppliers, customers

and others.

---

| |
|:---|
| Details of how the Directors have had regard <br>to the matters set forth in Section 172(1)(a) <br>to (f) of the Companies Act are provided <br>on pages 124 and 125. |
| Details of how the Directors have had regard <br>to the matters set forth in Section 172(1)(a) <br>to (f) of the Companies Act are provided <br>on pages 124 and 125. |
| Details of how the Directors have had regard <br>to the matters set forth in Section 172(1)(a) <br>to (f) of the Companies Act are provided <br>on pages 124 and 125. |
| Details of how the Directors have had regard <br>to the matters set forth in Section 172(1)(a) <br>to (f) of the Companies Act are provided <br>on pages 124 and 125. |

---

**Employee engagement statement**

Our statement relates to IHG's directly

employed individuals and should be

read in conjunction with our people

section, Section 172 statement, Voice

of the Employee and wider workforce

remuneration and employee

engagement disclosures on pages

62 to 64, 124 to 125, 135 and 139.

During 2025, the main communication

channels to provide information of

concern to employees included weekly

newsletters, virtual town halls, CEO

and regional leadership calls, podcasts,

blogs, email broadcasts, videos and

business function team meetings.

Employees have been consulted and

given opportunities to express their views

and concerns through participation in

the employee engagement survey, Voice

of the Employee feedback sessions,

Employee Resource Groups (ERGs),

Colleague events (interactive sessions

relating to IHG's strategy and behaviours),

quarterly performance reviews,

development and wellbeing meetings,

team meetings and the Q&A session

as part of the CEO quarterly business

update call.

Each December, employees are invited

to join the employee share plan. The

plan is available to around 99% of our

corporate employees below the senior/

mid-management level (who receive

LTIP and restricted stock units awards).

Further details are on page 262.

Employees have been made aware

of the financial and economic factors

affecting the performance of the

Company through quarterly business

update calls with the CEO, as well as

business function team meetings

and other regional leadership calls.

The Chair and other Directors have

engaged with employees through

a number of means, including direct

interactions, Voice of the Employee

feedback sessions, Colleague events

and a series of opportunities held

during the year to meet Directors

via video meetings or in person.

Details of how Directors have had regard

to employee interests, and the effect of

that regard, including principal decisions

taken by IHG during the year can be

found on pages 45 and 124 to 125.

**Employee numbers**

Having a predominantly franchised

and managed business model means

that many of those people who work

at hotels operated under our brands

are not our employees.

The average number of IHG employees,

including part-time employees, during

2025 were as follows:

–7,459 people worldwide (including

those in our corporate offices, central

reservations offices and owned &

leased hotels (excluding those in a

category below)), whose costs were

borne by the Group; and

–20,390 people who either worked

directly on behalf of the System Fund

and whose costs were borne by the

System Fund, or as General Managers

and (in the US predominantly) other

hotel workers, who work in managed

hotels, who have contracts or are

directly employed by IHG and whose

costs are borne by those hotel owners.

Due to the nature of our business,

there are many temporary, agency and

contract workers at hotels operated

under our brands who are not our

employees. The number of temporary

employees at corporate locations and

owned & leased hotels is not significant.

---

| | |
|:---|:---|
| **+** | See note 4 of the Group Financial <br>Statements on pages 199 and 200. |
|  | See note 4 of the Group Financial <br>Statements on pages 199 and 200. |

---

**Employment of disabled persons**

IHG continues to focus on providing

an inclusive environment, in which

employees are valued for who they are

and what they bring to the Group, and

in which talented individuals are retained

through all levels of the organisation.

We look to appoint the most appropriate

person for the job and are committed

to providing equality of opportunity to

all employees without discrimination.

Every effort is made to ensure that

applications for employment from

disabled employees are fully and fairly

considered and that disabled employees

have equal opportunities to training,

career development and promotion.

---

| | |
|:---|:---|
| **+** | See our people disclosures <br>on pages 62 to 67. |
|  | See our people disclosures <br>on pages 62 to 67. |

---

---

| | |
|:---|:---|
| **+** | Visit [ihgplc.com/responsible-business](ihgplc.com/responsible-business) <br>for more information. |
|  | Visit [ihgplc.com/responsible-business](ihgplc.com/responsible-business) <br>for more information. |

---

**2025 share awards and grants** 

**to employees**

Our current policy is to settle awards or

grants under the Company's share plans

with shares purchased in the market or

from shares held in treasury; however,

the Company continues to review

this policy. The Company's share plans

incorporate limits on dilution which

provide that commitments to issue new

shares or re-issue treasury shares under

executive plans should not exceed 5%,

and under all plans should not exceed

10%, of the issued ordinary share capital

of the Company (adjusted for share

issuance and cancellation) in any 10-year

period. During the financial year ended

31 December 2025, the Company

transferred 760,000 treasury shares

(0.48% of the total issued share capital) to

satisfy obligations under its share plans.

The estimated maximum dilution from

awards made under the Company's

share plans over the last 10 years

is 4.39%.

As at 31 December 2025, there were

no options outstanding. The Company

has not utilised the authority given by

shareholders at any of its AGMs to allot

shares for cash without first offering

such shares to existing shareholders.

---

| | | |
|:---|:---|:---|
| 262 | IHG | Annual Report and Form 20-F 2025 |

---

Directors' Report continued<br>

**Employee share ownership** 

**trust (ESOT)**

IHG operates an ESOT for the benefit

of employees and former employees.

The ESOT receives treasury shares from

the Company and purchases ordinary

shares in the market and releases

them to current and former employees

in satisfaction of share awards. During

2025, the ESOT released 924,931 shares

and at 31 December 2025, it held 860,969

ordinary shares in the Company. The

ESOT adopts a prudent approach to

purchasing shares, using funds provided

by the Group, based on expectations

of future requirements.

Certain shares that have been allocated

to share plan participants under the

Annual Performance Plan (APP) are held

in a nominee account on behalf of those

participants by Computershare Investors

Plc (Nominee). As at 31 December 2025,

the Nominee held 178,309 forfeitable

shares as part of the APP. The shares

held by the Nominee have been

allocated to share plan participants on

terms that entitle those participants

to request or require the Nominee to

exercise the voting rights relating to

those shares. The Nominee exercises

those votes in accordance with the

directions of the participants. Shares

that have not been allocated to share

plan participants under such terms are

held by the ESOT, and although the

trustee has the right to vote or abstain

from exercising their voting rights in

relation to those shares, it has a policy

of not voting, which is in line with

guidelines. The trustee also has the right

to accept or reject any offer relating to

the shares in any way it sees fit.

Unless otherwise requested by the

Company, the trustee of the ESOT

waives all ordinary dividends on the

shares held in the ESOT, other than

shares which have been allocated to

participants on terms which entitle them

to the benefit of dividends, except for

such amount per share as shall, when

multiplied by the number of shares

held by it on the relevant date, equal

one pence or less.

**Colleague Share Plan**

The Company's employee share plan,

known as the Colleague Share Plan,

was first introduced in 2019 following

approval by shareholders at the

Company's 2019 AGM.

In accordance with the Colleague Share

Plan Rules, participants' contributions

are used to purchase shares on a

monthly basis on behalf of the

individuals (Purchased Shares) and

held within the Nominee. At the end

of the Plan Year, the participants

receive a conditional right to receive

one share (Matching Share) for every

one Purchased Share that they have

purchased. Provided the participants

hold the Purchased Shares in the

Nominee until the second anniversary

of the end of the Plan Year, the

conditional right to Matching Shares

will vest.

In 2025, nearly 64 shares vested outside

of the usual timetable due to deaths

or good leavers, and in January 2026,

21,721 shares vested as part of the regular

plan cycle. As at 12 February 2026,

the Nominee held 203,460 shares in

relation to the Colleague Share Plan.

**Code of Conduct**

The Code of Conduct (Code) applies

to all Directors, officers and employees

and complies with the NYSE rules

as set out in Section 406 of the US

Sarbanes-Oxley Act 2002. Further

details on our Code, including the

Board's oversight of the Code, are set

out in the Strategic Report on page 56.

**Business relationships with** 

**suppliers, customers and others**

Our business relationships with our

guests, hotel owners and suppliers are

fundamental to our commercial success.

During the year, the Board considered

matters related to them and had

regard to the impact of decisions on

them as detailed in the key matters

discussed by the Board on pages 124

and 125. These included strategic and

operational matters relating to our

brand portfolio and operating regions.

The Board monitors relationships

through a mixture of presentations,

reports and direct engagement.

The Responsible Business Committee

specifically reviews responsible

procurement processes, targets

and the Supplier Code of Conduct.

Details of how relationships have been

maintained during the year are set out

in the key stakeholder engagement

tables on pages 10, 44 and 45.

The Group is party to a technology

agreement with Amadeus Hospitality

Americas, Inc. (Amadeus), for the Guest

Reservation System used by the Group.

The initial term of 10 years will expire

in 2028, and the Group has the right to

extend this agreement for two additional

periods of up to 10 years each on the

same terms, conditions and pricing.

The financial and performance

obligations in this agreement are

guaranteed by Amadeus IT Group S.A.,

the parent company of Amadeus.

Otherwise, there are no specific

individual contracts or arrangements

considered to be essential to the

business of the Group as a whole.

**Future business developments** 

**of the Group**

---

| | |
|:---|:---|
| **+** | Details on these are set out in the <br>Strategic Report on pages 22 and 23. |
|  | Details on these are set out in the <br>Strategic Report on pages 22 and 23. |

---

**Finance**

**Political donations**

The Group made no political donations

under the Companies Act during the

year and proposes to maintain this

policy in respect of such donations.

Notwithstanding this policy, in

accordance with US law, one of IHG's

US subsidiaries provides administrative

support to an employee-operated

Political Action Committee in the US

(US PAC), which is funded by voluntary

political donations from eligible

employees. The US PAC is not controlled

by IHG. All decisions regarding the

amounts and recipients of contributions

are directed by the Board of Directors

of the US PAC, in accordance with its

Charter and By-laws. In 2025, a total

of US $52,250 was expended on

political contributions by the US PAC.

**Financial reporting controls**

---

| | |
|:---|:---|
| **+** | A summary of the Group's internal control <br>framework in relation to financial reporting <br>is included on page 165 and further <br>information is included on page 129. An <br>overview of the Group's risk management <br>framework is included on pages 46 and 47. |
|  | A summary of the Group's internal control <br>framework in relation to financial reporting <br>is included on page 165 and further <br>information is included on page 129. An <br>overview of the Group's risk management <br>framework is included on pages 46 and 47. |
|  | A summary of the Group's internal control <br>framework in relation to financial reporting <br>is included on page 165 and further <br>information is included on page 129. An <br>overview of the Group's risk management <br>framework is included on pages 46 and 47. |
|  | A summary of the Group's internal control <br>framework in relation to financial reporting <br>is included on page 165 and further <br>information is included on page 129. An <br>overview of the Group's risk management <br>framework is included on pages 46 and 47. |
|  | A summary of the Group's internal control <br>framework in relation to financial reporting <br>is included on page 165 and further <br>information is included on page 129. An <br>overview of the Group's risk management <br>framework is included on pages 46 and 47. |

---

**Financial risk management**

---

| | |
|:---|:---|
| **+** | The Group's financial risk management <br>objectives and policies, including its use <br>of financial instruments, are set out in <br>note 23 to the Group Financial Statements <br>on pages 220 to 224. |
|  | The Group's financial risk management <br>objectives and policies, including its use <br>of financial instruments, are set out in <br>note 23 to the Group Financial Statements <br>on pages 220 to 224. |
|  | The Group's financial risk management <br>objectives and policies, including its use <br>of financial instruments, are set out in <br>note 23 to the Group Financial Statements <br>on pages 220 to 224. |
|  | The Group's financial risk management <br>objectives and policies, including its use <br>of financial instruments, are set out in <br>note 23 to the Group Financial Statements <br>on pages 220 to 224. |
|  | The Group's financial risk management <br>objectives and policies, including its use <br>of financial instruments, are set out in <br>note 23 to the Group Financial Statements <br>on pages 220 to 224. |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 263 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

**Significant agreements and** 

**change of control provisions**

The Group is a party to the following

arrangements which could be

terminated upon a change of control of

the Company and which are considered

significant in terms of their potential

impact on the business of the Group

as a whole:

–The $1.5 billion syndicated loan facility

agreement dated 4 December 2025

and maturing in December 2030,

under which a change of control of the

Company would entitle each lender

to cancel its commitment and declare

all amounts due to it payable.

–The 10-year £350 million bond issued

by the Company on 24 August 2016,

under which, if the bond's credit rating

was downgraded in connection with

a change of control, the bond holders

would have the option to require

the Company to redeem or, at the

Company's option, repurchase the

outstanding notes together with

interest accrued.

–The 8.5-year €500 million bond issued

by the Company on 15 November 2018,

under which, if the bond's credit rating

was downgraded in connection with

a change of control, the bond holders

would have the option to require

the Company to redeem or, at the

Company's option, repurchase the

outstanding notes together with

interest accrued.

–The eight-year £400 million bond

issued by the Company on 8 October

2020, under which, if the bond's credit

rating was downgraded in connection

with a change of control, the bond

holders would have the option to

require the Company to redeem or,

at the Company's option, repurchase

the outstanding notes together with

interest accrued.

–The six-year €600 million bond issued

by IHG Finance LLC on 28 November

2023, under which, if the bond's credit

rating was downgraded in connection

with a change of control, the bond

holders would have the option to

require IHG Finance LLC to redeem

or, at IHG Finance LLC's option,

repurchase the outstanding notes

together with interest accrued.

–The seven-year €750 million bond

issued by IHG Finance LLC on 27

September 2024, under which, if the

bond's credit rating was downgraded

in connection with a change of

control, the bond holders would have

the option to require IHG Finance LLC

to redeem or, at IHG Finance LLC's

option, repurchase the outstanding

notes together with interest accrued.

–The five-year €850 million bond

issued by IHG Finance LLC on 10

September 2025, under which, if the

bond's credit rating was downgraded

in connection with a change of

control, the bond holders would have

the option to require IHG Finance LLC

to redeem or, at IHG Finance LLC's

option, repurchase the outstanding

notes together with interest accrued.

---

| | |
|:---|:---|
| **+** | Further details on material contracts <br>are set out on pages 277 to 278. |
|  | Further details on material contracts <br>are set out on pages 277 to 278. |

---

**Disclosure of information to Auditor**

---

| | |
|:---|:---|
| **+** | For details, see page 165. |

---

**Greenhouse gas (GHG) emissions** 

**and Streamlined Energy and** 

**Carbon Reporting (SECR)**

---

| | |
|:---|:---|
| **+** | Disclosures in respect of GHGs and <br>SECR requirements are included <br>on pages 82 to 84. |
|  | Disclosures in respect of GHGs and <br>SECR requirements are included <br>on pages 82 to 84. |
|  | Disclosures in respect of GHGs and <br>SECR requirements are included <br>on pages 82 to 84. |

---

**Going concern**

An overview of the business activities

of IHG, including a review of the key

business risks that the Group faces, is

given in the Strategic Report on pages

4 to 114 and in the Group information

on pages 264 to 271.

As at 31 December 2025, the Group had

total liquidity of $2,599m, comprising

$1,500m of undrawn bank facilities and

$1,099m of cash and cash equivalents

(net of overdrafts and restricted cash).

There remains a wide range of

possible planning scenarios over the

going concern period. The scenarios

considered and assessment made

by the Directors in adopting the going

concern basis for preparing these

financial statements are included

on page [183](#i39206f57a9214006b97933da74f0a7c9_69436).

Based on the assessment completed, the

Directors have a reasonable expectation

that the Group has sufficient resources

to continue operating until at least

30 June 2027, and there are no material

uncertainties that may cast doubt on

the Group's going concern status.

Accordingly, they continue to adopt

the going concern basis in preparing

the Financial Statements.

---

| | |
|:---|:---|
| **+** | Please see the viability statement <br>on pages 113 and 114. |
|  | Please see the viability statement <br>on pages 113 and 114. |

---

By order of the Board,

Nicolette Henfrey

Company Secretary

InterContinental Hotels Group PLC

Registered in England and Wales,

Company number 05134420

16 February 2026

**UK Listing Rules (UKLR) – compliance with UKLR 6.6.4R**

The below table sets out only those sections of UKLR 6.6.1R which are relevant. The remaining sections of UKLR 6.6.1R

are not applicable.

---

| | | |
|:---|:---|:---|
| Section | Applicable sub-paragraph within UKLR 6.6.1R | Location |
| 11 and 12 | Details of arrangements under which a shareholder <br>has waived or agreed to waive dividends<br>| Employee share ownership trust (ESOT), page 262 |

---

---

| | | |
|:---|:---|:---|
| 264 | IHG | Annual Report and Form 20-F 2025 |

---

Group information<br>

---

| |
|:---|
| **History and developments** |
| The Company was incorporated <br>and registered in England and Wales <br>with registered number 05134420 <br>on 21 May 2004 as a limited company <br>under the Companies Act 1985 with <br>the name Hackremco (No. 2154) <br>Limited. In 2004-05, as part of a <br>scheme of arrangement to facilitate <br>the return of capital to shareholders, <br>the following structural changes <br>were made to the Group: (i) on 24 <br>March 2005, Hackremco (No. 2154) <br>Limited changed its name to New <br>InterContinental Hotels Group <br>Limited; (ii) on 27 April 2005, New <br>InterContinental Hotels Group Limited <br>re-registered as a public limited <br>company and changed its name <br>to New InterContinental Hotels Group <br>PLC; and (iii) on 27 June 2005, New <br>InterContinental Hotels Group PLC <br>changed its name to InterContinental <br>Hotels Group PLC and became the <br>holding company of the Group.<br>The Group, formerly known as <br>Bass, and then Six Continents, was <br>historically a conglomerate operating <br>as, among other things, a brewer, soft <br>drinks manufacturer, hotelier, leisure <br>operator, and restaurant, pub and <br>bar owner. In 1988 Bass acquired <br>Holiday Inn International and the <br>remainder of the Holiday Inn brand <br>in 1990. The InterContinental brand <br>was acquired by Bass in 1998 and <br>the Candlewood Suites brand was <br>acquired by Six Continents in 2003.<br>On 15 April 2003, following <br>shareholder and regulatory approval, <br>Six Continents PLC separated into two <br>new listed groups, InterContinental <br>Hotels Group PLC, comprising the <br>hotels and soft drinks businesses, <br>and Mitchells & Butlers plc, comprising <br>the retail and standard commercial <br>property developments business.<br>The Group disposed of its interests <br>in the soft drinks business by way <br>of an initial public offering of Britvic <br>(Britannia Soft Drinks Limited for <br>the period up to 18 November 2005, <br>and thereafter, Britannia SD Holdings <br>Limited (renamed Britvic plc on <br>21 November 2005), which became <br>the holding company of the Britvic <br>Group on 18 November 2005), <br>a manufacturer and distributor of <br>soft drinks in the UK, in December <br>2005. The Group now continues <br>as a stand-alone hotels business.<br>**Recent acquisitions** <br>**and divestitures**<br>The Group made no acquisitions <br>or disposals in 2025, 2024 or 2023. <br>**Capital expenditure**<br>–Gross capital expenditure<sup>a</sup> <br>in 2025 totalled $269 million <br>compared with $350 million in <br>2024 (see page 254) and $242 <br>million in 2023. In addition, a material <br>investment was made to acquire <br>the Ruby brand for upfront <br>consideration of €110.5 million. <br>Future payments to incentivise <br>growth are payable in 2030 and/or <br>2035 totalling up to €181 million, <br>contingent on the number of <br>Ruby branded rooms operated <br>by the seller at the end of the <br>preceding year.<br>–At 31 December 2025, capital <br>committed (being contracts <br>placed for expenditure on <br>property, plant and equipment <br>and intangible assets not provided <br>for in the Group Financial <br>Statements) totalled $3 million, <br>see page 235.<br>–In progress capital expenditure <br>principally includes the development <br>of software. Total additions of <br>software for the year ended <br>31 December 2025 were $49 million. <br>|
| a.Definitions for Non-GAAP revenue and operating profit measures can be found on pages 107 to 112. <br>Reconciliations of these measures to the most directly comparable line items within the Group <br>Financial Statements can be found on pages 250 to 256. |

---

**Risk factors**

The Group is subject to a broad range

of inherent risks that could adversely

impact its business operations, financial

condition, turnover, profits, brands

and reputation. The risks below are

not exhaustive, and additional

uncertainties, whether not yet known

or currently considered immaterial,

may emerge or become more

significant over time

Throughout 2025, the Group faced

ongoing risks from macro external

factors. Persistent but moderating

inflation in some markets, uneven

economic growth, shifts in government

policies and ongoing labour availability

pressures continued to affect trading

conditions. Geopolitical tensions,

including the conflicts in Ukraine and

Middle East, and the broader

implications for neighbouring countries,

added further uncertainty, contributing

to renewed trade frictions, potential tariff

changes, and wider political, economic

and financial volatility, including pressure

on global supply chains. Cybersecurity

threats continued to increase in

sophistication, while rapid advances in

artificial intelligence (AI) introduced new

risks relating to misinformation, third-

party exposure, operational integrity

and evolving regulatory expectations.

Following the outbreak of the war

in Ukraine, the Group ceased all

operations in Russia due to the ongoing

and increasing challenges of operating

there and consistent with evolving UK,

US and EU sanction regimes. The Group

continues to monitor the impact of

the war in relation to our two hotels

in Ukraine, one of which is operating.

The Group's strategy requires the

balancing of short-term execution

with long-term goals, while remaining

resilient to uncertainties relating to, for

example, its ability to deliver innovation

at scale and speed; how it uses, stores,

secures and transfers data; owner

preferences for and ability to invest

in its brands; global and local supply

chain efficiency and resiliency; and

legal and regulatory complexity and

litigation trends.

Several other factors will continue to

remain important to the Group's outlook,

including those relating to operational

resilience, such as the safety and security

of hotel operations; guest preferences

for branded hotel experiences and

loyalty in a fast-changing competitive

industry; and its ability to attract, retain and

develop talent and capability where key

aspects of the Group's growth ambitions

and operations are dependent on access

to experience and knowledge.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 265 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

The Group also faces emerging risks

where the impact and likelihood are

not yet fully understood. These include

risks arising from rapidly shifting macro-

economic and geopolitical conditions,

such as government policy changes that

influence travel patterns, trade flows and

business relationships, shifts in central

bank policy influencing development

and financing costs for owners,

together with developments in artificial

intelligence technologies, including

generative AI, and related regulation,

and the increasing physical effects of

climate change on the Group's activities

over the medium- to long-term.

To enable focus on the material risk

factors facing the Group, the detail below

has been organised under headings

corresponding to the ordering of

the principal risks outlined earlier in

this document.

The principal risks are on pages 48 to 53,

the cautionary statements regarding

forward-looking statements are on

page 293 and financial and forward-

looking information in note 8 on

pages 202 to 206, and note 24 on

pages 225 to 226.

---

| | |
|:---|:---|
| **1** | **Guest preferences for, or** <br>**loyalty to, IHG-branded hotel** <br>**experiences and channels**<br>|

---

**The Group is subject to a competitive** 

**and changing industry**

The Group operates in a highly

competitive hospitality market, facing

competition from multinational hotel

companies, local hotel operators, and

independent properties. The competitive

set also includes other types of businesses,

both global and specific to certain

markets, such as web-based booking

channels (including online travel agents

and other digital travel intermediaries), and

alternative sources of accommodation

providers. Increasing consumer use of AI-

driven travel search and discovery tools

may influence how guests compare

offerings and discover brands. Failure to

compete effectively in both traditional and

emerging areas could impact the Group's

market share, system size, profitability

and relationships with owners and guests.

The entry of major technology platforms

incorporating generative AI or large

language models into travel planning and

booking may act as a new form of

intermediary, diverting bookings away

from our direct channels and increasing

distribution costs or reducing the

effectiveness of our loyalty proposition.

The hospitality industry has previously

experienced consolidation, and further

such activity may result in such

competitors having access to increased

resources, capabilities or capacity

and provide advantages from scale

of revenues, marketing funds and/or

cost structures.

**The Group is reliant on the reputation** 

**of its existing brands and is exposed** 

**to inherent reputation risks**

Any event that materially damages the

reputation of one or more of the Group's

brands and/or fails to sustain the appeal

of the Group's brands to its customers

and owners may adversely impact

brand value and subsequent revenues.

In particular, if the Group is unable to

create consistent, valued and quality

products and guest experiences across

the franchised, managed and owned &

leased hotels or if the Group, its

franchisees or business partners fail to

act responsibly, this could result in an

adverse impact on its brand reputation.

In addition, the value of the Group's

brands could be influenced by a number

of external factors outside the Group's

control, such as, but not limited to,

changes in sentiments against

global brands, changes in applicable

regulations related to the hotel

industry or to franchising, successful

commoditisation of hotel brands by

online travel agents and intermediaries,

or changes in owners' perceptions of

the value of the Group.

**The Group is exposed to inherent** 

**uncertainties associated with brand** 

**development and expansion**

In recent years the Group has

significantly expanded its brand

portfolio, entered new partnerships

and broadened co-branded credit

card relationships to support the IHG

Rewards programme. The rollout,

integration and growth of these

brands (including associated loyalty

programmes) depend on market

conditions, guest preference, owner

investment and continued cooperation

with third parties. There are inherent

risks that the Group will recover costs

incurred in developing or acquiring the

brands, programmes or products, or

that these initiatives will not succeed

as we intend. The Group's agenda

to deliver industry-leading net rooms

growth creates risks relating to system

transitions, new or changed operating

models, services and processes,

and may result in commercial

underperformance, leading to financial

loss and undermining stakeholder

confidence.

**The Group is reliant on the ongoing** 

**appeal of our Loyalty programme**

The Group faces an increasingly

aggressive landscape as loyalty

programmes offered by other hospitality

companies, online travel platforms and

financial institutions become a key factor

to guests' and owners' preference for

the brand. To satisfy guest expectations,

it will be necessary to expand loyalty

reward personalisation, including

through greater use of AI technologies,

and provide a range of offerings

globally to support midscale to luxury

brands. Exclusive partnerships will

be increasingly important to deliver

experiences that attract and retain new

members. If we are unable to sustain

a competitive and appealing loyalty

programme, our ability to attract, engage

and retain loyalty members may be

compromised. This could negatively

impact our overall operating results

and financial condition, as well as the

performance of related initiatives.

---

| | |
|:---|:---|
| **2** | **Owner preferences for, or** <br>**ability to invest in, our brands**<br>|

---

**The Group is exposed to a variety** 

**of risks related to identifying,** 

**securing and retaining franchise** 

**and management agreements**

The Group's growth strategy depends

on its success in identifying, securing

and retaining franchise and management

agreements. This is an inherent risk for the

hotel industry and the franchising business

and management model. Competition

with other hotel companies may generally

reduce the number of suitable franchise,

management and investment

opportunities offered to the Group

and increase the bargaining position

of property owners seeking to become

a franchisee or engage a manager. The

terms of new franchise or management

agreements may not be as favourable

as current arrangements; the Group

may not be able to renew existing

arrangements on similarly favourable

terms, or at all.

There can be no assurance that the

Group will be able to identify, retain

or add franchisees to the IHG System,

to secure management contracts or

open hotels in our development pipeline.

For example, the availability of suitable

sites, market saturation, local planning

and regulatory constraints, or the

availability and affordability of finance,

which has remained a challenge in 2025,

may restrict the supply of suitable

hotel development opportunities under

---

| | | |
|:---|:---|:---|
| 266 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Group information continued |
| Risk factors continued |

---

franchise or management agreements

and mean that not every hotel in our

development pipeline may develop into

a new hotel that enters our system. In

connection with entering into franchise

or management agreements, the Group

may be required to make investments in,

or guarantee the obligations of, third

parties or guarantee minimum income

to third parties. There are also risks that

significant franchisees or groups of

franchisees may have interests that

conflict, or are not aligned, with those

of the Group, including, for example, the

unwillingness of franchisees to support

individual or masterbrand or system

improvement initiatives. This could result

in franchisees prematurely terminating

contracts, which could lead to disputes,

litigation, damages and other expenses

and would adversely impact the overall

IHG System size and the Group's

financial performance.

**The Group is exposed to the risks** 

**of hotel industry overcapacity**

The future operating results of the

Group could be adversely affected

by industry overcapacity (by number

of rooms) and weak demand due,

for example, to customer confidence

in business and leisure travel, whether

related to pandemics, war or otherwise,

the cyclical nature of the hotel industry,

other differences between planning

assumptions and actual operating

conditions, cost-of-living pressures and

changes in stakeholder expectations

around environmental factors. These

conditions could result in reductions

in room rates and occupancy levels,

which would adversely impact the

financial performance of the Group.

---

| | |
|:---|:---|
| **3** | **Talent and capability attraction** <br>**or retention**<br>|

---

**The Group requires the right people,** 

**skills and capability to manage growth** 

**and change**

In order to remain competitive, the

Group relies upon hiring and retaining

highly skilled employees with particular

expertise or leadership capability. The

Group's strategic business plans could

be undermined by a failure to build and

sustain a resilient corporate culture,

failure to recruit or retain key personnel,

unexpected loss of key senior employees,

inadequate succession planning and

incentive plans or failure to invest in

the development of key skills.

The Group must compete against

other companies inside and outside

the hospitality industry for suitably

qualified or experienced employees,

up to and including Executive Directors.

Some of the markets in which the

Group operates may experience

economic growth and/or low levels

of unemployment, pay compression,

and there may be attractive roles and

competitive rewards available elsewhere

which limit the ability to attract and

retain talent.

Labour shortages could restrict our

ability, and the ability of franchisees,

to operate hotel properties or grow our

business, or could result in increased

costs that could adversely affect results

of operations. The Covid-19 pandemic

negatively affected the labour market

for employers. Staffing shortages in

some markets could hinder our ability

to grow and expand our business.

Some emerging markets may lack

the local expertise to operate a hotel,

particularly for luxury and lifestyle

brands, or attract the required talent.

If we or our franchisees are unable to

attract, retain, train, manage and engage

skilled individuals, the ability to staff and

operate the hotels that we manage, own

or franchise could be diminished. This

could reduce customer satisfaction and

adversely affect the reputation of our

brands. Labour costs may also increase,

threatening the ability to operate hotels

and our corporate support functions,

achieve business growth targets or

impact the profitability of our operations.

Additionally, unless the Group maintains

a sufficient infrastructure to enable

knowledge and skills to be passed on,

the Group risks losing accumulated

knowledge if key employees leave.

**Collective bargaining activity could** 

**disrupt operations, increase our** 

**labour costs or interfere with the** 

**ability of our management to focus** 

**on executing our business strategies**

A significant number of the Group's

colleagues at its managed, owned &

leased hotels in the US, Canada, Mexico,

Grand Cayman and Netherlands Antilles

are covered by collective bargaining

agreements and similar agreements.

If relationships with those colleagues

or the unions that represent them

deteriorate, the properties we own, lease

or manage could experience labour

disruptions such as strikes, lockouts,

boycotts and public demonstrations. In

2024 bargaining agreements in several

major union markets expired and were

renegotiated. In 2026 there will be

labour activity in San Diego and some

smaller markets. New York City, whose

current contracts expire from July 2026,

is currently in negotiations, with the

potential for union-led activities up to

and including strikes.

Hotel sector union member participation

continues to increase in key markets

within the Americas region, which may

require IHG to enter into new labour

agreements as more employees

become unionised in the future. Labour

disputes, which are generally more likely

when collective bargaining agreements

are being renegotiated, could harm

our relationship with our colleagues,

result in increased regulatory inquiries

and enforcement by governmental

authorities and deter guests. Further,

adverse publicity related to a labour

dispute could harm our reputation

and reduce customer demand for

our services.

Labour regulation and the negotiation

of new or existing collective bargaining

agreements could lead to higher wage

and benefit costs, changes in work rules

that raise operating expenses, legal

costs and limitations on our ability or the

ability of our third-party property owners

to take cost-saving measures during

economic downturns. We do not have

the ability to control the negotiations

of collective bargaining agreements

covering unionised labour employed

by our third-party property owners and

franchisees. Increased unionisation

of our workforce, new labour legislation

or changes in regulations could disrupt

our operations, reduce our profitability

or interfere with the ability of our

management to focus on executing

our business strategies.

---

| | |
|:---|:---|
| **4** | **Data and information usage,** <br>**storage, security and transfer**<br>|

---

**The Group is exposed to cybersecurity** 

**and data privacy risks**

The Group is increasingly dependent

upon the collection, usage, retention,

availability, integrity and confidentiality

of information, including, but not

limited to: guest, employee and owner

credit card, financial and personal

data, business performance, financial

reporting and commercial development.

The information is sometimes held

in different formats, such as digital,

paper, voice recordings and video,

and could be stored in many places,

including cloud-based storage and

facilities managed by third-party service

providers, in our managed hotels,

and by our independently owned and

operated hotels, that are all subject to

the same or similar risks.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 267 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

Cyber breaches are an increasing reality

for most companies and risks relating to

cybersecurity appear to be heightened in

light of geopolitical conflicts. The threats

towards the hospitality industry and the

Group's information are dynamic and

include cyber-attacks (including AI-

enabled techniques), fraudulent use, loss

or misuse by employees and breaches

of vendors security arrangements.

For example, in 2022, parts of the Group's

technology systems were subject to

unauthorised activity, causing disruption

to the Group's booking channels and

other applications. A putative class action

suit was filed by a small group of hotel

owners related to the incident. This claim

was dismissed in its entirety in July 2024.

This cybersecurity breach follows

additional previous cybersecurity

incidents of a different nature in 2016.

The legal and regulatory environment

around data privacy and data transfer

laws, and requirements set out by the

payment card industry surrounding

information security across the many

jurisdictions in which the Group operates

are constantly evolving (such as the EU

GDPR, China cybersecurity law, cross-

border data transfer requirements,

and US State privacy laws).

If the Group fails to protect information

and ensure relevant controls are in place

to enable the acceptable use and release

of information through the appropriate

channels in a timely and accurate manner,

IHG System performance, guest

experience and the reputation of the

Group may be adversely affected.

This could lead to revenue losses,

fines, penalties, litigation and other

additional costs.

We are required to comply with marketing

and advertising laws relating to our direct

marketing practices, including email

marketing, online advertising and our use

of generative artificial intelligence, and

postal mailings. Further restrictions to the

content or interpretations of these laws

could adversely impact our current and

planned activities and the effectiveness

or viability of our marketing strategies to

maintain, extend and acquire relationships

with customers, and impact the amount

and timing of our sales of certain products.

---

| | |
|:---|:---|
| **+** | For information of incidents and ongoing <br>legal proceedings relating to data privacy <br>and trade practices, see page 279. |
|  | For information of incidents and ongoing <br>legal proceedings relating to data privacy <br>and trade practices, see page 279. |
|  | For information of incidents and ongoing <br>legal proceedings relating to data privacy <br>and trade practices, see page 279. |

---

**The Group is exposed to** 

**intellectual property risks**

Given the importance of brand

recognition to the Group's business,

the protection of its intellectual property

poses a risk due to the variability

and changes in controls, laws and

effectiveness of enforcement globally,

particularly in jurisdictions that may not

have developed levels of protection

for corporate assets, such as intellectual

property, trade secret, know-how and

customer information and records.

Any widespread infringement,

misappropriation or weakening of the

control environment could materially

harm the value of the Group's brands

and its ability to develop the business

and compete currently or in the future.

Third-party claims that we infringe

their intellectual property could lead

to disputes, litigation, damages and

other expenses.

---

| | |
|:---|:---|
| **5** | **Ethical and social expectations** |

---

**The Group's reputation and the value** 

**of its brands are influenced by the** 

**perception of various stakeholders** 

**of the Group**

The reputation of the Group and the

value of its brands are influenced by

a wide variety of factors, including

the perception of stakeholder groups,

such as guests, owners, suppliers

and communities in which the Group

operates. The social and environmental

impacts of its business are under

increasing scrutiny, and the Group is

exposed to the risk of damage to its

reputation if it fails to (or fails to influence

its business partners to) undertake

responsible practices and engage in

ethical behaviour or fails to comply

with relevant regulatory requirements.

---

| | |
|:---|:---|
| **6** | **Legal, regulatory and** <br>**contractual complexity** <br>**or litigation exposures**<br>|

---

**The Group is required to comply** 

**with existing and changing regulations** 

**and act in accordance with societal** 

**expectations across numerous** 

**countries, territories and jurisdictions**

Government regulations affect countless

aspects of the Group's business,

including corporate governance, health

and safety, the environment, social

responsibility, bribery and corruption,

employment law and inclusion, franchise

laws and regulation, disability access,

competition/anti-trust and marketing

practices, data privacy and information

protection, financial, accounting and

tax. Regulatory changes may require

significant changes in the way the

business operates and may inhibit the

Group's strategy, including the markets

the Group operates in, brand protection,

and use or transmittal of personal data

and use of artificial intelligence. If the

Group fails to comply with existing or

changing regulations, the Group may

be subject to fines, prosecution, loss of

license to operate or reputational damage.

Several jurisdictions have introduced or

expanded mandatory climate-related

disclosure requirements. These

requirements, of which vary among

jurisdictions, may indirectly affect

franchisees, increasing data-collection

and reporting obligations, compliance

costs and potential for inconsistent

disclosures across markets. In addition,

more generally there are differing

perspectives among stakeholders on

the scope and priorities of environmental,

social and governance matters.

Companies that operate franchise

systems may be subject to liabilities

and claims relating to the franchisor/

franchisee relationship, such as for

allegedly being a 'joint employer'

with a franchisee. Changes in laws or

regulations relating to this relationship

could result in a determination that we

are a joint employer with our franchisees

or that our franchisees are part of one

unified system subject to joint and

several liability. Such a determination

could subject us to liability for

employment-related and other liabilities

of our franchisees and could cause

us to incur other costs that have a

material adverse effect on our results

of operations and profit.

**The Group is exposed to the risk** 

**of litigation**

Certain companies in the Group are

the subject of various claims and

proceedings. The ultimate outcome

of these matters is subject to many

uncertainties, including future events

and uncertainties inherent in litigation.

In addition, the Group could be at

risk of litigation claims made by many

parties, including but not limited to:

guests, customers, joint venture

partners, suppliers, employees,

regulatory authorities, franchisees and/

or the owners of the hotels it manages.

Claims filed may include requests

for punitive damages as well as

compensatory damages. Unfavourable

outcomes of claims or proceedings

could have a material adverse impact

on the Group's results of operations,

cash flow and/or financial position.

Exposure to significant litigation or

fines may also affect the reputation

of the Group and its brands. (See also

legal proceedings on page 279.)

---

| | | |
|:---|:---|:---|
| 268 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Group information continued |
| Risk factors continued |

---

**Domestic and international** 

**environmental laws and regulations** 

**may cause us to incur substantial costs** 

**or subject us to potential liabilities**

The Group is exposed to certain

compliance costs and potential liabilities

under various foreign and US federal,

state and local environmental, health

and safety laws and regulations. These

laws and regulations govern actions

and reporting requirements relating to

matters including air emissions, the use,

storage and disposal of hazardous

and toxic substances, and wastewater

disposal. The Group's failure to comply

with such laws, including any required

permits or licenses, could result in

substantial fines or possible revocation

of our authority to conduct some of

our operations.

We could also be liable under such laws

for the costs of investigation, removal

or remediation of hazardous or toxic

substances at our currently or formerly

franchised, managed, owned & leased

hotels or at third-party locations in

connection with our waste disposal

operations, regardless of whether or not

we knew of, or caused, the presence or

release of such substances. The Group

may also be required to remediate such

substances or remove, abate or manage

asbestos, mould, radon gas, lead or

other hazardous conditions at our

properties. The presence or release

of such toxic or hazardous substances

could result in third-party claims for

personal injury, property or natural

resource damages, business interruption

or other losses. Such claims and the need

to investigate, remediate or otherwise

address hazardous, toxic or unsafe

conditions could adversely affect the

Group's operations, the value of any

affected property, or our ability to sell,

lease or assign our rights in any such

property or could otherwise harm our

business or reputation. Environmental,

health and safety requirements are

increasingly stringent, and our costs

may increase as a result.

**The Group's financial performance** 

**may be affected by changes in tax laws**

Many factors will affect the Group's

future tax rate, the key ones being

legislative developments, future

profitability of underlying subsidiaries

and tax uncertainties. Tax liabilities

or refunds may also differ from those

anticipated, in particular as a result

of changes in tax law, changes in the

interpretation of tax law or clarification of

uncertainties in the application of tax law.

The Group continues to monitor external

tax proposals around the world. Further

information is included in note 8 to the

Group Financial Statements on

pages 202 to 206.

---

| | |
|:---|:---|
| **7** | **Supply chain efficiency and** <br>**resilience (including corporate** <br>**and hotel products and services)**<br>|

---

**The Group is dependent upon a wide** 

**range of external stakeholders and** 

**business partners**

The Group relies on the performance,

behaviours and reputation of a wide

range of business partners and external

stakeholders, including, but not limited

to, owners, contractors, lenders,

suppliers, outsourced providers,

vendors, joint-venture partners, online

travel agents, third-party intermediaries

and other business partners who may

have different ethical values, interests

and priorities. Further, the number and

complexity of interdependencies with

stakeholders is evolving. Breakdowns

in relationships, contractual disputes,

deterioration of the financial health of

our partners, poor vendor performance,

sub-standard control procedures,

business continuity arrangements,

insolvency, stakeholder behaviours or

adverse reputations, which may be

outside of the Group's control, could

adversely impact on the Group's

performance and competitiveness,

delivery of projects, guest experiences

or the reputation of the Group or

its brands.

---

| | |
|:---|:---|
| **8** | **Operational resilience to** <br>**incidents or disruption or** <br>**control breakdown (including** <br>**geopolitical, safety and security,** <br>**cybersecurity, fraud and** <br>**health-related)**<br>|

---

**The Group is exposed to a variety** 

**of risks associated with safety,** 

**security and crisis management**

There is a constant need to protect

the safety and security of our guests,

employees and assets against natural

and man-made threats. These include,

but are not limited to, exceptional

events, such as extreme weather, civil or

political unrest, violence and terrorism,

serious and organised crime, fraud,

employee dishonesty, cyber crime,

pandemics or contagious diseases,

fire and day-to-day accidents, incidents

and petty crime, which impact the guest

or employee experience, could cause

loss of life, sickness or injury and result

in compensation claims, fines from

regulatory bodies, litigation and

impact reputation.

Serious incidents or a combination

of events could escalate into a crisis that,

if managed poorly, could further expose

the Group and its brands to significant

reputational damage.

**The Group is reliant upon the** 

**resilience of its reservation system** 

**and other key technology platforms** 

**and is exposed to risks that could** 

**disrupt their operation and/or integrity**

The value of the Group is partly derived

from the ability to drive reservations

through its reservation system and

technology platforms which are highly

integrated with other processes and

systems and linked to multiple sales

channels, including the Group's own

websites, in-house and third-party

managed call centres, hotels, third-party

intermediaries and travel agents.

The scope and complexity of our

technology infrastructure, including

increasing reliance on third-party

suppliers to support and protect our

systems and information, as well as

rapidly evolving cyber threats, means

that we are inherently vulnerable to

physical damage, failures, disruptions,

denial of service, phishing or other

malware attacks, ransomware, cyber

terrorism and fraud, as well as human

error, negligence and wilful misuse.

These risks may be heightened when

these capabilities are provided offshore

or in cloud-based environments.

Our franchisees and suppliers are also

inherently vulnerable to the same risks.

Lack of resilience and operational

availability of these systems provided

by the Group or third-party technology

providers and inability or difficulty in

updating existing or implementing new

functionality could lead to prolonged

service disruption. This might result in

significant business interruption, impact

the guest booking experience, lead to

loss of or theft of data, and subsequently

adversely impact Group revenues,

incur financial costs to remediate or

investigate, lead to regulatory and/or

contractual enforcement actions

or lawsuits or damage the Group's

reputation and relationships with

hotel owners.

**The Group is exposed to political** 

**and economic developments**

The Group is exposed to political,

economic and financial market

developments, such as recession,

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 269 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

inflation and availability and/or cost

of credit (due to rising interest rates)

and currency fluctuations that could

lower revenues and reduce income.

The outlook for 2026 may worsen due to

continued unrest and continued conflict

in Ukraine and the Middle East, increased

geopolitical and trade tensions between

US and China and other geopolitical

tensions globally; potential disruptions

in the US economy; uncertain central

bank policies; the impact of fluctuating

commodity prices (including oil) on

economies dependent on such exports;

and barriers to global trade, including

unforeseeable changes in regulations,

imposition of tariffs or embargoes and

other trade restrictions or controls. The

interconnected nature of economies

suggests any of these events, or other

events, could trigger a recession that

reduces leisure and business travel

as demand for our services is closely

associated with the performance of

the general economy and is sensitive

to business and personal discretionary

spending levels. Decreased global

or regional demand for hospitality

products and services can be especially

pronounced during economic

downturns or low levels of economic

growth, and the hospitality industry may

fail to keep pace with overall economic

improvement. Such declines in demand

for our products and services could

adversely affect room rates and/or

occupancy levels and other income-

generating activities.

Specifically, the Group is most exposed

to the impact of political and economic

risk factors in relation to the US market,

and to Greater China. The owners or

potential owners of hotels franchised

or managed by the Group face similar

risks that could adversely impact

their solvency and the Group's ability

to secure and retain franchise or

management agreements. Accordingly,

the Group is particularly susceptible to

adverse changes in these economies,

as well as changes in their currencies.

In addition to trading conditions,

the economic outlook also affects the

financial health of current and potential

owners and their ability to access capital,

which could impact existing operations,

timely payment of IHG fees and the

health of the pipeline.

**The Group is exposed to continued** 

**disruption and consequences from** 

**the war in Ukraine** 

The Group continues to monitor the

impact of the war in relation to our

two hotels in Ukraine, both of which

are operating. The Group has ceased

all operations in Russia. Although

these operations were not material

to consolidated financial results, the

Group continues to face uncertainty

relating to the broader consequences of

this conflict on global macro-economic

conditions. These uncertainties include

the potential for governments to impose

additional sanctions or other economic

or military measures. Further expansion

or escalation of military confrontations

or related geopolitical tensions in the

wider region, including increased

restrictions on global trade, could also

result in, among other things, depressed

or restricted travel demand, declines

in consumer confidence and economic

growth, an increased likelihood of

cyber attacks or information technology

disruption, supply chain disruptions,

increases in inflation rates, changes

to foreign currency exchange rates,

constraints, volatility or disruption

in financial markets, the decreased

availability of raw materials, supplies,

freight and labour, and uncertainty

about economic and global stability.

**The Group is also exposed to** 

**disruption and consequences from** 

**the conflict in the Middle East**

The Group continues to face some

disruption relating to the broader

consequences of the Middle East

conflict on neighbouring countries

and on wider global macro-economic

uncertainty, including supply chain

disruption through the region. Further

expansion or escalation of military

confrontations or related geopolitical

tensions could also result in similar

factors to those listed above relating

to the war in Ukraine.

**The Group may face difficulties** 

**insuring its business**

Historically, the Group has maintained

insurance at levels determined to be

appropriate in light of the cost of cover

and the risk profile of the business.

However, future market capacity and

wider external market forces may limit

the scope of coverage the Group can

obtain. Other forces beyond the Group's

control, such as terrorist attacks or

natural disasters, may be uninsurable

or simply too expensive to insure.

Inadequate or insufficient insurance

carried by the Group, our owners

or other partners for damage, other

potential losses or liabilities to third

parties involving properties that we own,

manage or franchise could expose the

Group to large claims or could result in

the loss of capital invested in properties.

**The Group is exposed to risks related** 

**to executing and realising benefits** 

**from strategic transactions, including** 

**acquisitions and restructuring**

The Group may seek to make strategic

transactions, including acquisitions,

divestments or investments in the future.

The Group may not be able to identify

opportunities or complete transactions on

commercially reasonable terms, or at all,

and may not realise the anticipated

benefits from such transactions. Strategic

transactions come with inherent valuation,

financial and commercial risks, and

regulatory and insider information risks

during the execution of the transactions.

The Group may also continue to make

organisational adjustments to support

delivery of our growth ambitions, including

the integration of acquisitions into the

Group's operating processes and systems.

This creates inherent risks of complexity

and that any changes made could be

unsustainable or that we are unable to

achieve the return envisaged through

reinvestment. In addition, the Group

may face unforeseen costs and liabilities,

diversion of management attention,

as well as longer-term integration and

operational risks, which could result in a

failure to realise benefits, financial losses,

lower employee morale and loss of talent.

**The Group is exposed to a variety** 

**of risks associated with its financial** 

**stability and ability to borrow** 

While the strategy of the Group is

to grow through activities that do not

involve significant amounts of its own

capital, the Group does require capital to

fund some development opportunities,

technological innovations and strategic

acquisitions; and to maintain and

improve owned & leased hotels. The

Group is reliant upon having financial

strength and access to capital markets

and other borrowing facilities to meet

these expected capital requirements.

The Group's $1,500m revolving

credit facility (RCF) is only available

if customary terms in the facility are

complied with. Non-compliance with

customary terms could result in the

Group's lenders demanding repayment

of the funds advanced and any

undrawn facilities could be unavailable.

In addition, if the RCF was drawn and

repayment was demanded, it would

trigger a repayment of the bond debt.

If the Group's financial performance

does not meet market expectations,

it may not be able to refinance existing

bond and bank facilities on terms

considered favourable.

---

| | | |
|:---|:---|:---|
| 270 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Group information continued |
| Risk factors continued |

---

The Group currently has a senior

unsecured long-term credit rating of

BBB from S&P and a Baa2 rating from

Moody's. In the event of the S&P

rating being downgraded below BBB-

(a downgrade of two levels), there would

be an additional step-up coupon of

1.25% payable on the bonds maturing

between 2026 and 2029. In the event of

the Moody's rating being downgraded

below Baa3 (a downgrade of two levels),

there would be an additional step-up

coupon of 1.25% payable on the bonds

maturing in 2029. The bonds maturing

in 2030 and 2031 do not have a

step-up coupon.

**The Group's operations are dependent** 

**on maintaining sufficient liquidity to** 

**meet all foreseeable medium-term** 

**requirements and provide headroom** 

**against unforeseen obligations**

Cash and cash equivalents are held

in short-term deposits, money market

funds and repurchase agreements with

short maturities. Most of the Group's

funds are held in the UK or US, although

$4 million (2024: $2 million) is held in

countries where repatriation is restricted

as a result of foreign exchange

regulations. Medium and long-term

borrowing requirements are met

through the bonds and RCF. Short-term

borrowing requirements may be met

from drawings under uncommitted

overdrafts and RCF.

**The Group is exposed to an impairment** 

**of the carrying value of our brands,** 

**goodwill or other tangible and** 

**intangible assets negatively affecting** 

**our consolidated operating results**

Significant amounts of goodwill,

intangible assets, right-of-use assets,

property, plant and equipment,

investments and contract assets are

recognised on the Group balance sheet.

We review the value of our goodwill

and indefinite-lived intangible assets

for impairment annually (or whenever

events or circumstances indicate

impairment may have occurred).

Changes to estimated values can result

from political, economic and financial

market developments or other shifts

in the business climate, the competitive

environment, the perceived reputation

of our brands (by guests or owners),

or changes in interest rates, operating

cash flows, market capitalisation,

credit risk of owners or developments

in the legal or regulatory environment.

Because of the significance of our

goodwill and other non-current assets,

we have incurred and may incur future

impairment charges on these assets

which could have a material adverse

effect on our financial results. Due to

significant challenges and uncertainty

in the data associated with both risks

and opportunities, the Group is not

yet able to fully quantify the potential

financial impacts of climate change.

The Group continues to refine its

workplan to enable quantification in the

future and is focused on ensuring the

identified risks and opportunities are

integrated into our business strategy.

**The Group is exposed to fluctuations in** 

**exchange rates, currency devaluations** 

**or restructurings and to interest rate** 

**risk in relation to its borrowings**

The US dollar is the predominant

currency of the Group's revenue and

cash flows. Movements in foreign

exchange rates can affect the Group's

reported profit, net liabilities and interest

cover. The most significant exposures

of the Group are in currencies that are

freely convertible. The Group's reported

debt has an exposure to borrowings

held in pounds sterling (including €500

million euro bonds which have been

swapped into sterling using currency

swaps). Conducting business in

currencies other than US dollars exposes

us to fluctuations in exchange rates,

currency devaluations, or restructurings.

This could potentially lower our reported

revenues, increase our costs, reduce

our profits or disrupt our operations.

Exposure to these factors is linked to

the pace of our growth in territories

outside the US and, if the proportion of

our revenues grows, this may increase

the potential sensitivity to currency

movements having an adverse impact

on our results. The Group is also

exposed to interest rate risk in relation

to its fixed and floating rate borrowings

and interest rates may be higher on

new or replacement borrowings

compared to existing interest rates.

All of the current bond debt ($4,198m)

is at fixed rates. The Group may use

interest rate swaps to manage the

interest rate exposure.

**The Group could be affected by** 

**credit risk on treasury transactions** 

**and loans to owners**

The Group uses long-term credit ratings

from S&P, Moody's and Fitch Ratings as

a basis for setting its counterparty limits.

In order to manage the Group's credit

risk exposure, the treasury function sets

counterparty exposure limits using

metrics including credit ratings, the

relative placing of credit default swap

pricings, tier 1 capital and share price

volatility of the relevant counterparty.

The Group trades only with recognised,

creditworthy third parties. It is the

Group's policy that all customers

who wish to trade on credit terms are

subject to credit verification procedures.

In respect of credit risk arising from

financial assets, including loans to

owners, the Group's exposure to

credit risk arises from default of the

counterparty, with a maximum exposure

equal to the carrying amount of these

instruments. Further information is

included in note 15 to the Group

Financial Statements.

---

| | |
|:---|:---|
| **9** | **Our ability to deliver** <br>**technological or digital** <br>**performance or innovation** <br>**(at scale, speed, etc.)**<br>|

---

**The Group is exposed to inherent risks** 

**in relation to changing technology** 

**and systems**

As the use of the internet, artificial

intelligence, mobile and data technology

grows, and new and disruptive

technology solutions are developed,

customer needs and expectations

evolve at pace. The Group may find

that its evolving technology capability

is not sufficient and may have to make

substantial additional investments in

new technologies or systems to remain

competitive. Failure to keep pace with

developments in technologies or

systems, and also with regulatory, risk

and ethical considerations of how these

developments are used, for example in

relation to cross-border transfers of data,

may put the Group at a competitive

disadvantage. Generative artificial

intelligence is an emerging technology

that the Group expects will create

uncertainty for the travel and hospitality

sector and society in general. The

primary impacts are considered to be

in relation to how guests will find and

interact with hotels, including disruption

to digital acquisition and distribution

economics if AI-enabled platforms

materially change how travellers

discover, compare, and transact

bookings. AI may also impact how

colleagues will work and talent and

capability attraction or retention

(among other potential scenarios).

In addition, the technologies or systems

that the Group chooses to deploy may

not be commercially successful or the

technology or system strategy may not

be sufficiently aligned with the needs

of the business. Any such failure could

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 271 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

adversely affect guest experiences,

and the Group may lose customers,

fail to attract new customers, impact

our appeal to owners, incur substantial

costs or face other losses. This could

further impact the Group's reputation

in regards to innovation.

(See also '4. Data and information usage,

storage, security and transfer'.)

**The Group's integration of AI** 

**technologies into our processes** 

**and systems may introduce various** 

**operational, compliance ethical and** 

**reputational risks**

If the Group fails to keep pace with

the capabilities provided by emerging

AI technologies, it could weaken the

Group's competitive position and

negatively impact its financial results.

The use of AI, particularly generative AI,

heighten exposures to misinformation

risks, inaccuracies, bias and potential

cybersecurity incidents involving

personal data, any of which could lead

to new liabilities, or harm our operations,

owner confidence or the Group's

reputation.

Increasing reliance on AI-enabled tools

provided by third parties introduces

dependency and resilience risks,

including the potential for service

disruption and inconsistent data

practices. The rapidly developing global

regulatory landscape may introduce

new requirements for transparency,

responsible use, safeguards for personal

data and controls over AI-driven

processes, increasing compliance costs,

obligations and complexity across

jurisdictions. Challenges in deploying

and managing AI securely and

responsibly could result in unintended

outcomes, ethical or legal concerns,

and increased cost to maintain trust

with guests, owners and regulators.

**The Group is exposed to competition** 

**from online travel agents and** 

**intermediaries**

A proportion of the Group's bookings

originate from large multinational,

regional and local online travel agents

and intermediaries with which the Group

has contractual arrangements and

to which it pays commissions. These

dynamics could be accelerated by AI-

enabled travel intermediaries that

influence consumer choice or route

bookings through third-party channels.

These platforms offer a wide range of

products, often across multiple brands,

have growing booking and review

capabilities, and may create the

perception that they offer the lowest

prices. Some of these online travel

agents and intermediaries have strong

marketing budgets and aim to create

brand awareness and brand loyalty

among consumers, which may impact

the Group's profitability, undermine the

Group's own booking channels and

value to its hotel owners.

---

| | |
|:---|:---|
| **10** | **The impact of climate-related** <br>**physical and transition risks**<br>|

---

**The Group is exposed to the risk of** 

**events or stakeholder expectations** 

**that adversely impact domestic** 

**or international travel, including** 

**climate change**

The room rates and occupancy levels of

the Group could be adversely impacted

by events that reduce domestic or

international travel, such as actual or

threatened acts of terrorism or war,

political or civil unrest, epidemics and

pandemics or threats thereof, travel-

related accidents or industrial action,

natural or man-made disasters, or

other local factors impacting specific

countries, cities or individual hotels,

as well as increased transportation

and fuel costs.

Additionally, the Group may be

impacted by increasing stakeholder

and societal expectations and attitudes

in relation to factors contributing to

climate change, including overtravel

and overtourism, and those linked

directly to hotels including waste, water,

energy, or impact on local communities.

A decrease in the demand for business

and/or leisure hotel rooms as a result

of such events or attitudinal and

demand shifts may have an adverse

impact on the Group's operations or

growth prospects and financial results.

In addition, inadequate planning,

preparation, response or recovery in

relation to a major incident or crisis may

cause loss of life, prevent operational

continuity, or result in financial loss,

and consequently impact the value

of our brands and/or the reputation

of the Group.

**The Group is exposed to climate** 

**change and sustainability risks**

The Group is subject to both physical

risks, such as extreme weather events

and rising sea levels, and transition

risks related to changing consumer

preferences and evolving regulations

on greenhouse gas emissions and

sustainability. Furthermore, shifts in

consumer travel preferences due to

sustainability concerns, along with

increased energy costs and insurance

premiums for our hotels, could

negatively impact our operations.

Collectively, these factors may lead

to higher operating costs, reduced

demand, and operational disruptions,

adversely affecting our profitability

and growth.

**The Group is exposed to risks relating** 

**to our commitments in relation to** 

**Climate Change**

In line with our commitment to reduce

our energy use and carbon emissions

in line with climate science, the Group

has implemented a 2030 science-based

target to reduce absolute Scope 1, 2,

and 3 greenhouse gas emissions from

fuel and energy-related activities and

franchises by 46% by 2030 from a

2019 base year. This ambition requires

significant transformation across IHG,

hotel owners and supply chain partners,

including investment in physical assets

and operational procedures. It is also

dependent on government financial

incentives, the decarbonisation

of electricity grids and hotel owners

having access to scalable, cost-effective

renewable energy, as well as new

operational behaviours and mindset

shifts, including from guests, to adapt

to low-energy products and services.

Despite its ongoing efforts, the Group

is not on track to meet its 2030 target.

The Group remains dedicated to the

actions it is taking to assist hotel owners

in reducing carbon emissions and while

its programmes will require time to scale,

the actions being taken today will

improve operational efficiency of IHG

hotels and prepare for accelerated

decarbonisation once market factors

are more favourable.

---

| | | |
|:---|:---|:---|
| 272 | IHG | Annual Report and Form 20-F 2025 |

---

Group information continued<br>

**Cybersecurity**

**Cybersecurity governance** 

IHG's Board of Directors is ultimately

accountable for establishing a

framework of prudent and effective

controls, which enable risk to be

assessed and managed. Management,

including the Chief Information Security

Officer (CISO) and our cybersecurity

team, regularly update the Board on the

Company's cybersecurity programmes,

material risks and mitigation strategies

and provide status and risk reports

at least annually. The Audit Committee

reviews the appropriateness of IHG's

risk management and internal control

framework to address risks and

has allocated particular attention

to cybersecurity and governance in

the context of previous criminal,

unauthorised access to the Group's

technology systems.

Management is responsible for

identifying, considering and assessing

material cybersecurity risks on an

ongoing basis, establishing processes

to ensure that such potential exposures

are monitored, putting in place

appropriate mitigation measures and

maintaining cybersecurity programmes.

This is guided by periodic external third-

party assessment of IHG's cyber risks

and the maturity of the cybersecurity

programme. The cyber incident

response framework uses defined

playbooks, coordinating with external

incident response groups and aligning

with wider IHG crisis management and

escalation protocols, including triggers

for reporting to senior management,

Board of Directors and external parties

where required.

IHG's CISO has overall responsibility

for the Information Security strategy

and the development and management

of the associated programme. The CISO

was hired by IHG in 2018 from Invesco,

a global investment management

company, where he built and ran the

cybersecurity programme as CISO

for more than 10 years. The CISO is

supported by a dedicated, certified

and experienced in-house team,

complemented by outsourced groups

for performing either highly repetitive or

operational tasks or for very specialised

skillsets such as penetration testing or

cyber forensics.

The CISO receives reports from the

team to enable the monitoring of the

prevention, detection, mitigation, and

remediation of cybersecurity incidents.

IHG employs several independent

or third-party mechanisms to provide

a level of assurance that the different

information security capabilities are

operating effectively and assessment

of risk is also informed by observations

arising from a variety of independent

auditing either from IHG's Internal

Audit function or as part of regulatory

compliance work performed including

Sarbanes-Oxley, SWIFT, SOC-1 and

MLPS (China). As noted above, periodic

external assessments are also conducted

of the maturity of the cybersecurity

programme, which are also reported

to the Board of Directors.

**Cybersecurity risk management**

Cybersecurity is an integral part of IHG's

overall risk management and internal

control framework. Our information

security risk management programme

follows the National Institute of

Standards and Technology Cyber

Security Framework and supports

the identification of the systems, data,

and other information assets that

are considered most sensitive from

a confidentiality perspective, or most

critical from an availability perspective.

These include guest data, credit card

data, pre-public financial information,

and revenue generating applications.

Standards, policies and procedures are

in place to manage how personal data

can be used and protected across IHG,

including a requirement for participation

by all employees in annual e-learning

training on handling information

responsibly.

The Information Security programme

incorporates:

–Engagement with leaders from other

IHG business functions, including

to identify and assess cybersecurity

threats, and to act as point of contact

for escalation of issues and incidents.

–User awareness and colleague

engagement, including

communications to corporate and

hotel teams on changing threats

and phishing simulation exercises

to raise risk awareness.

–Maintenance of information risk

management processes including

a risk register and standard

contract language.

–Risk assessment of third parties based

on access to IHG systems, data,

and operational reliance using a

combination of manual procedures,

for example, completion of security

questionnaires, and independent

cyber risk scoring. Critical rated

third parties are reviewed annually.

–Security compliance to coordinate

required tracking of compliance for

applicable regulations and standards,

including remediation of any

regulatory and audit findings.

–Security engineering and architecture

to define, implement and maintain

standards for the secure use of core

technology platforms and solutions,

including new technology solutions

and potential business partners

and acquisitions.

–Assessment of the security of

individual business applications and

platforms, including good security

hygiene within coding.

–Vulnerability management for all

technical components of infrastructure

and core application platforms.

–Identity and access management

for global platforms and solutions,

including privileged access

management, and loyalty account

members.

–Cyber threat intelligence relationships

with worldwide law enforcement and

intelligence sharing organisations,

profiling likely threat actors and

methods, and providing insight

on threat levels.

–Security operations monitoring,

triaging alerts to facilitate response

and action within agreed service

level agreements.

–Cyber incident response using agreed

and practised playbooks for security

events, coordinating with external

incident response groups and wider

IHG crisis protocols, and deploying

tabletop exercises to simulate

scenarios and identify potential

gaps in response.

–Centre of Excellence project

management, continuous process

improvement, tracking of key

performance metrics, change

management, and communications

to internal, executive and external

stakeholder groups.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 273 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

In 2025 we did not identify any

cybersecurity threats that have

materially affected or are reasonably

likely to materially affect our business

strategy, results of operations, or

financial condition. However, despite

our efforts, we cannot eliminate

all risks from cybersecurity threats,

or provide assurances that we have

not experienced an undetected

cybersecurity incident.

As we explained in our 6 and 29

September 2022 Stock Exchange

Announcements, parts of our

technology systems were subject to

unauthorised activity, causing disruption

to our booking channels and other

applications. In line with our crisis

management framework, teams across

IHG came together to evaluate and

address the incident, supported by

external specialists. No evidence of

unauthorised access to systems storing

guest data was identified. The Board

was engaged throughout the

incident response.

---

| | |
|:---|:---|
| **+** | For more information about our risks, <br>please refer to pages 48 to 53 and <br>pages 266 to 274. |
|  | For more information about our risks, <br>please refer to pages 48 to 53 and <br>pages 266 to 274. |
|  | For more information about our risks, <br>please refer to pages 48 to 53 and <br>pages 266 to 274. |

---

**Directors' and Executive Committee members' shareholdings**<br>

As at 12 February 2026: (i) Executive Directors had a number of beneficial interests in shares (including Directors' share awards

under IHG's share plans) set out in the table below; (ii) Non-Executive Directors had the number of beneficial interests in shares

set out in the table on page 156; and (iii) Executive Committee members had the number of beneficial interests in shares

(including members' share awards under IHG's share plans) set out in the table below. These shareholdings indicate all Directors'

or Executive Committee members' beneficial interests and those held by their spouses and other connected persons.

As at 12 February 2026, no Director or Executive Committee member held more than 1.0% of the total issued share capital.

None of the Directors have a beneficial interest in the shares of any subsidiary.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Number of shares held outright | Number of shares held outright | Number of shares held outright | APP deferred share awards | APP deferred share awards | APP deferred share awards | LTIP/DAP share <br>awards (unvested) | LTIP/DAP share <br>awards (unvested) | LTIP/DAP share <br>awards (unvested) | Total number of shares held | Total number of shares held | Total number of shares held |
| Executive <br>Committee <br>member<br>| 12 Feb <br>2026<br>| 31 Dec <br>2025<br>| 31 Dec <br>2024<br>| 12 Feb <br>2026<br>| 31 Dec <br>2025<br>| 31 Dec <br>2024<br>| 12 Feb <br>2026<br>| 31 Dec <br>2025<br>| 31 Dec <br>2024<br>| 12 Feb <br>2026<br>| 31 Dec <br>2025<br>| 31 Dec <br>2024<br>|
| Elie Maalouf | 143471.5 | 143471.5 | 109462 | 24533 | 24533 | 32921 | 266671 | 266671 | 208149 | 434675.5 | 434675.5 | 350532 |
| Michael <br>Glover<br>| 25505 | 25505 | 15675 | 8825 | 8825 | 8064 | 103591 | 103591 | 78497 | 137921 | 137921 | 102236 |
| Jolyon Bulley | 52164 | 52164 | 52164 | 22130 | 22130 | 22045 | 71254 | 71254 | 74938 | 145548 | 145548 | 149147 |
| Yasmin <br>Diamond<br>| 5683 | 5683 | 5683 | 10167 | 10167 | 14568 | 35225 | 35225 | 36299 | 51075 | 51075 | 56550 |
| Nicolette <br>Henfrey<br>| 15361 | 15361 | 15361 | 12006 | 12006 | 16623 | 40960 | 40960 | 42700 | 68327 | 68327 | 74684 |
| Tejas Katre | 6020 | 6020 | N/A | 2382 | 2382 | N/A | 12045 | 12045 | N/A | 20447 | 20447 | N/A |
| Kenneth <br>Macpherson<br>| 24060 | 24060 | 24060 | 13691 | 13691 | 20093 | 46459 | 46459 | 50072 | 84210 | 84210 | 94225 |
| Heather <br>Balsley<br>| 2449 | 2449 | 1555 | 4787 | 4787 | 4666 | 39031 | 39031 | 38437 | 46267 | 46267 | 44658 |
| Jolie Fleming | – | – | – | 3924 | 3924 | 3288 | 28406 | 28406 | 23701 | 32330 | 32330 | 26989 |
| Daniel Aylmer | 4610 | 4610 | 8 | 3668 | 3668 | 6483 | 22019 | 22019 | 17870 | 30297 | 30297 | 24361 |

---

**Executive Directors' benefits** <br>**upon termination of office**<br>

All current Executive Directors have

a rolling service contract with a notice

period from the Group of 12 months.

As an alternative, the Group may, at

its discretion, pay in lieu of that notice.

Neither notice nor a payment in lieu

of notice will be given in the event of

gross misconduct.

Payment in lieu of notice could

potentially include up to 12 months'

salary and the cash equivalent of

12 months' pension contributions and

other contractual benefits. Where

possible, the Group will seek to

ensure that, where a leaver mitigates

their losses by, for example, finding

new employment, there will be

a corresponding reduction in

compensation payable for loss

of office.

---

| | |
|:---|:---|
| **+** | Visit [ihgplc.com/investors](ihgplc.com/investors) under Corporate <br>governance in the Directors' Remuneration <br>Policy section for further details about the <br>determination of termination payments in <br>the Directors' Remuneration Policy. |
|  | Visit [ihgplc.com/investors](ihgplc.com/investors) under Corporate <br>governance in the Directors' Remuneration <br>Policy section for further details about the <br>determination of termination payments in <br>the Directors' Remuneration Policy. |
|  | Visit [ihgplc.com/investors](ihgplc.com/investors) under Corporate <br>governance in the Directors' Remuneration <br>Policy section for further details about the <br>determination of termination payments in <br>the Directors' Remuneration Policy. |
|  | Visit [ihgplc.com/investors](ihgplc.com/investors) under Corporate <br>governance in the Directors' Remuneration <br>Policy section for further details about the <br>determination of termination payments in <br>the Directors' Remuneration Policy. |
|  | Visit [ihgplc.com/investors](ihgplc.com/investors) under Corporate <br>governance in the Directors' Remuneration <br>Policy section for further details about the <br>determination of termination payments in <br>the Directors' Remuneration Policy. |

---

---

| | | |
|:---|:---|:---|
| 274 | IHG | Annual Report and Form 20-F 2025 |

---

Group information continued<br>

**Description of securities other than equity securities**

**Fees and charges payable to a depositary**

---

| | | |
|:---|:---|:---|
| Category<br>(as defined by SEC)<br>| Depositary actions | Associated fee |
| Depositing <br>or substituting <br>the underlying <br>shares<br>| Each person to whom ADRs are issued against deposits <br>of shares, including deposits and issuances in respect of:<br>–share distributions, stock splits, rights, mergers; and<br>–exchange of securities or any other transactions <br>or event or other distribution affecting the ADSs <br>or the deposited securities.<br>| $5 for each 100 ADSs (or portion thereof) |
| Receiving or <br>distributing <br>dividends | Distribution of stock dividends | $5 for each 100 ADSs (or portion thereof) |
| Receiving or <br>distributing <br>dividends | Distribution of cash | $0.05 or less per ADS (or portion thereof) |
| Selling or <br>exercising <br>rights<br>| Distribution or sale of securities, the fee being in an <br>amount equal to the fee for the execution and delivery <br>of ADSs, which would have been charged as a result <br>of the deposit of such securities<br>| $5 for each 100 ADSs (or portion thereof) |
| Withdrawing <br>an underlying <br>security<br>| Acceptance of ADRs surrendered for withdrawal <br>of deposited securities<br>| $5 for each 100 ADSs (or portion thereof) |
| Transferring, <br>splitting or <br>grouping <br>receipts<br>| Transfers, combining or grouping of depositary receipts | $1.50 per ADS |
| General <br>depositary <br>services, <br>particularly <br>those charged <br>on an annual <br>basis<br>| Other services performed by the depositary in <br>administering the ADRs<br>| $0.05 per ADS (or portion thereof) not more <br>than once each calendar year and payable <br>at the sole discretion of the ADR Depositary <br>by billing ADR holders or by deducting such <br>charge from one or more cash dividends <br>or other cash distributions<br>|
| Expenses of <br>the depositary<br>| Expenses incurred on behalf of ADR holders in <br>connection with:<br>–compliance with foreign exchange control regulations <br>or any law or regulation relating to foreign investment;<br>–the ADR Depositary's or its custodian's compliance <br>with applicable laws, rules or regulations;<br>–stock transfer or other taxes and other governmental <br>charges;<br>–cable, telex, facsimile transmission or delivery;<br>–transfer or registration fees in connection with the <br>deposit and withdrawal of deposited securities;<br>–expenses of the ADR Depositary in connection with <br>the conversion of foreign currency into US dollars <br>(which are paid out of such foreign currency); and<br>–any other charge payable by the ADR Depositary <br>or its agents.<br>| Expenses payable at the sole discretion <br>of the ADR Depositary by billing ADR holders <br>or by deducting charges from one or more <br>cash dividends or other cash distributions <br>are $20 per transaction<br>|

---

**Fees and charges payable by a depositary**

J.P. Morgan Chase Bank N.A. (the ADR Depositary) is the depositary for IHG's ADR programme. The ADR Depositary's principal

executive office is at: J.P. Morgan Depositary Receipts, 270 Park Avenue, Floor 8, New York, NY 10017. The ADR Depositary

has agreed to reimburse certain reasonable Company expenses related to the Company's ADR programme and incurred by

the Company in connection with the ADR programme. The Company received $547,453.27 from the ADR Depositary during

the year ended 31 December 2025 in respect of legal, accounting and other fees incurred in connection with the preparation

of the Annual Report and Form 20-F, ongoing SEC compliance and listing requirements and investor relations programmes.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 275 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

**Articles of Association**

The Company's Articles of Association

(the Articles) were first adopted with

effect from 27 June 2005, were most

recently amended at the AGM held

on 3 May 2024 and are available on

the Company's website at **[ihgplc.com/](ihgplc.com/investors)**

**[investors](ihgplc.com/investors)** under Corporate governance.

The following summarises material rights

of holders of the Company's ordinary

shares under the material provisions

of the Articles and English law. This

summary is qualified in its entirety by

reference to the Companies Act

and the Articles.

The Company's shares may be held

in certificated or uncertificated form.

No holder of the Company's shares

will be required to make additional

contributions of capital in respect of

the Company's shares in the future.

In the following description, a

'shareholder' is the person registered

in the Company's register of members

as the holder of the relevant share.

**Principal objects**

The Company is incorporated under

the name InterContinental Hotels

Group PLC and is registered in England

and Wales with registered number

05134420. The Articles do not restrict

its objects or purposes.

**Directors**

Under the Articles, a Director may have

an interest in certain matters ('Permitted

Interest') without the prior approval of

the Board, provided they have declared

the nature and extent of such Permitted

Interest at a meeting of the Directors

or in the manner set out in Section 184

or Section 185 of the Companies Act.

Any matter in which a Director has a

material interest, and which does not

comprise a Permitted Interest, must be

authorised by the Board in accordance

with the procedure and requirements

contained in the Articles. In particular,

this includes the requirement that a

Director may not vote on a resolution

to authorise a matter in which they are

interested, nor may they count in the

quorum of the meeting at which such

business is transacted.

Further, a Director may not vote in

respect of any proposal in which they,

or any person connected with them,

has any material interest other than by

virtue of their interests in securities of,

or otherwise in or through, the

Company, nor may they count in the

quorum of the meeting at which such

business is transacted. This is subject to

certain exceptions, including in relation

to proposals: (a) indemnifying them in

respect of obligations incurred on behalf

of the Company; (b) indemnifying a

third party in respect of obligations of

the Company for which the Director

has assumed responsibility under an

indemnity or guarantee; (c) relating

to an offer of securities in which they

will be interested as an underwriter;

(d) concerning another body corporate

in which the Director is beneficially

interested in less than one per cent of

the issued shares of any class of shares

of such a body corporate; (e) relating

to an employee benefit in which the

Director will share equally with other

employees; and (f) relating to liability

insurance that the Company is

empowered to purchase for the benefit

of Directors of the Company in respect

of actions undertaken as Directors

(or officers) of the Company.

The Directors have authority under the

Articles to set their own remuneration

(provided certain criteria are met). While

an agreement to award remuneration

to a Director is an arrangement with the

Company that comprises a Permitted

Interest (and therefore does not require

authorisation by the Board in that

respect), it is nevertheless a matter that

would be expected to give rise to a

conflict of interest between the Director

concerned and the Company, and

such conflict must be authorised by a

resolution of the Board. The Director

that is interested in such a matter

may neither vote on the resolution to

authorise such conflict, nor count in the

quorum of the meeting at which it was

passed. Furthermore, as noted above,

the interested Director is not permitted

to vote in respect of any proposal in

which they have any material interest

(except in respect of the limited

exceptions outlined above) nor may

they count in the quorum of the meeting

at which such business is transacted.

As such, a Director has no power, in

the absence of an independent quorum,

to vote on compensation to themselves,

but may vote on a resolution (and may

count in the quorum of the meeting

at which it was passed) to award

compensation to Directors provided

those arrangements do not confer

a benefit solely on them.

The Directors are empowered to

exercise all the powers of the Company

to borrow money, subject to any

limitation in the Articles (currently

$5 billion), unless sanctioned by an

ordinary resolution of the Company.

Under the Articles, there are no age

limit requirements relating to a person's

qualification to hold office as a Director

of the Company.

Directors are not required to hold any

shares of the Company by way of

qualification.

The Articles require annual retirement

and re-election of all Directors at

the AGM.

**Rights attaching to shares**

**Dividend rights and rights to share** 

**in the Company's profits**

Under English law, dividends are payable

on the Company's ordinary shares only

out of profits available for distribution,

as determined in accordance with

accounting principles generally accepted

in the UK and by the Companies Act.

No dividend will bear interest as against

the Company.

Holders of the Company's ordinary

shares are entitled to receive such

dividends as may be declared by

the shareholders in general meeting,

rateably according to the amounts paid

up on such shares, provided that the

dividend cannot exceed the amount

recommended by the Directors.

The Company's Board of Directors may

declare and pay to shareholders such

interim dividends as appear to them to

be justified by the Company's financial

position. If authorised by an ordinary

resolution of the shareholders, the Board

of Directors may also direct payment

of a dividend in whole or in part by the

distribution of specific assets (and in

particular of paid-up shares or

debentures of any other company).

---

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|:---|:---|:---|
| 276 | IHG | Annual Report and Form 20-F 2025 |

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---

| |
|:---|
| Group information continued |
| Articles of Association continued |

---

Any dividend unclaimed by a member

(or by a person entitled by virtue of

transmission on death or bankruptcy

or otherwise by operation of law) after

six years from the date the dividend was

declared, or became due for payment,

will be forfeited and will revert to the

Company.

**Voting rights**

The holders of ordinary shares are

entitled, in respect of their holdings of

such shares, to receive notice of general

meetings and to attend, speak and vote

at such meetings in accordance with

the Articles.

Voting at any general meeting of

shareholders is by a show of hands

unless a poll, which is a written vote,

is duly demanded. On a show of hands,

every shareholder who is present in

person or by proxy at a general meeting

has one vote regardless of the number

of shares held. Resolutions put to the

members at electronic general meetings

shall be voted on by a poll, which poll

votes may be cast by such electronic

means as the Board in its sole discretion

deems appropriate for the purposes

of the meeting.

On a poll, every shareholder who

is present in person or by proxy has

one vote for every share held by that

shareholder. A poll may be demanded

by any of the following:

the Chair of the meeting;

–at least five shareholders present

in person or by proxy and entitled

to vote at the meeting;

–any shareholder or shareholders

present in person or by proxy

representing in the aggregate not

less than one-tenth of the total voting

rights of all shareholders entitled

to vote at the meeting; or

–any shareholder or shareholders

present in person or by proxy holding

shares conferring a right to vote at

the meeting and on which there have

been paid up sums in the aggregate

at least equal to one-tenth of the

total sum paid up on all the shares

conferring that right.

A proxy form will be treated as giving

the proxy the authority to demand a poll,

or to join others in demanding one.

The necessary quorum for a general

meeting is two persons carrying a

right to vote upon the business to be

transacted, whether present in person

or by proxy.

Matters are transacted at general

meetings of the Company by the

proposing and passing of resolutions,

of which there are two kinds:

–an ordinary resolution, which

includes resolutions for the election

of Directors, the approval of

financial statements, the cumulative

annual payment of dividends, the

appointment of the Auditor, the

increase of share capital or the grant

of authority to allot shares; and

–a special resolution, which includes

resolutions amending the Articles,

disapplying statutory pre-emption

rights, modifying the rights of

any class of the Company's shares

at a meeting of the holders of such

class or relating to certain matters

concerning the Company's winding

up or changing the Company's name.

An ordinary resolution requires the

affirmative vote of a majority of the votes

of those persons present and entitled

to vote at a meeting at which there

is a quorum.

Special resolutions require the

affirmative vote of not less than three-

quarters of the persons present and

entitled to vote at a meeting at which

there is a quorum.

AGMs must be convened upon advance

written notice of 21 days. Other meetings

must be convened upon advance

written notice of 14 days. The days of

delivery or receipt of the notice are not

included. The notice must specify the

nature of the business to be transacted.

The Board of Directors may, if they

choose, make arrangements for

shareholders, who are unable to attend

the place of the meeting, to participate

at other places or to allow for shareholders

to attend and participate in shareholder

meetings by electronic means.

**Variation of rights**

If, at any time, the Company's share

capital is divided into different classes

of shares, the rights attached to any

class may be varied, subject to the

provisions of the Companies Act, with

the consent in writing of holders of

three-quarters in nominal value of the

issued shares of that class or upon the

adoption of a special resolution passed

at a separate meeting of the holders of

the shares of that class. At every such

separate meeting, all of the provisions

of the Articles relating to proceedings

at a general meeting apply, except that

the quorum is to be the number of

persons (which must be two or more)

who hold or represent by proxy not less

than one-third in nominal value of the

issued shares of that class.

**Rights in a winding-up**

Except as the Company's shareholders

have agreed or may otherwise agree,

upon the Company's winding up,

the balance of assets available for

distribution is to be distributed among

the holders of ordinary shares according

to the amounts paid up on the shares

held by them:

–after the payment of all creditors

including certain preferential creditors,

whether statutorily preferred creditors

or normal creditors; and

–subject to any special rights attaching

to any class of shares.

This distribution is generally to be made

in cash. A liquidator may, however,

upon the adoption of a special resolution

of the shareholders, divide among the

shareholders the whole or any part of

the Company's assets in kind.

**Limitations on voting** 

**and shareholding**

There are no limitations imposed by

English law or the Articles on the right

of non-residents or foreign persons to

hold or vote the Company's ordinary

shares or ADSs, other than the

limitations that would generally apply

to all of the Company's shareholders.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 277 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

**Working Time** 

**Regulations 1998**

In the UK, many employees of

Group companies are covered by

the Working Time Regulations, which

came into force on 1 October 1998.

These regulations implemented the

EU Working Time Directive and parts

of the Young Workers Directive, and

lay down rights and protections for

employees in areas such as maximum

working hours, minimum rest time,

minimum days off and paid leave.

The Working Time Regulations continue

to apply in the UK following the UK's

exit from the EU as retained EU law

under the European Union (Withdrawal)

Act 2018, as amended.

In the UK, there is in place a national

minimum wage under the National

Minimum Wage Act 1998, as amended.

At 31 December 2025, the minimum

wage for individuals aged 18 to 20 was

£10 per hour and for those aged 21

or over was £12.21 per hour in each case,

excluding apprentices aged under

18 years or, otherwise, in the first year

of their apprenticeships.

This particularly impacts businesses

in the hospitality and retailing sectors.

Compliance with the National Minimum

Wage Act is being monitored by the

Low Pay Commission, an independent

statutory body established by the UK

Government.

None of the Group's UK employees

are covered by collective bargaining

agreements with trade unions.

Continual attention is paid to the

external market in order to ensure that

terms of employment are appropriate.

The Group believes the Group

companies will be able to conduct their

relationships with trade unions and

employees in a satisfactory manner.

**Material contracts**<br>

The following contracts have been

entered into otherwise than in the

course of ordinary business by

members of the Group: (i) in the two

years immediately preceding the

date of this document in the case of

contracts which are or may be material;

or (ii) that contain provisions under

which any Group member has any

obligation or entitlement that is material

to the Group as at the date of this

document. To the extent that these

agreements include representations,

warranties and indemnities, such

provisions are considered standard

in an agreement of that nature, save

to the extent identified below.

**Syndicated Facility**

In December 2025, the Company,

together with Six Continents Limited,

InterContinental Hotels Limited and

IHG Finance LLC (as borrowers and

guarantors), signed a five-year $1.5 billion

bank facility agreement (Syndicated

Facility) with Bank of America, N.A.,

London Branch; Bank of China Limited,

London Branch; Barclays Bank PLC;

BNP Paribas S.A.; Commerzbank

Aktiengesellschaft, London Branch;

DBS Bank Ltd., London Branch; MUFG

Bank, Ltd.; Standard Chartered Bank;

Truist Bank; U.S. Bank National Association;

UniCredit Bank GmbH; and Wells Fargo

Bank, N.A. London Branch all acting

as lenders, mandated lead arrangers

and joint bookrunners, and MUFG Bank,

Ltd. as facility agent.

The interest margin payable on

borrowings under the Syndicated

Facility is linked to the long-term credit

rating assigned to the senior unsecured

and unsubordinated debt of the

Company. The margin can vary between

the applicable reference rate + 0.30%

and the applicable reference rate +

0.85% depending on the credit rating.

The Syndicated Facility was undrawn

as at 31 December 2025.

**£4 billion Euro Medium Term** 

**Note programme**

In 2025, the Group updated its

Euro Medium Term Note programme

(EMTN Programme) and issued a

tranche of €850 million 3.375% notes due

10 September 2030 (2025 Issuance).

On 19 September 2024, an amended

and restated trust deed (Trust Deed)

was executed by the Company and IHG

Finance LLC (IHGFL) as issuers (Issuers);

the Company, IHGFL, Six Continents

Limited and InterContinental Hotels

Limited as guarantors (Guarantors) and

U.S. Bank Trustees Limited as trustee

(Trustee), pursuant to which the

trust deed dated 27 November 2009,

as supplemented by six supplemental

trust deeds dated 7 July 2011,

9 November 2012, 16 June 2015,

11 August 2016, 14 September 2020

and 21 September 2023 originally

between the Company as issuer,

Six Continents Limited and

InterContinental Hotels Limited

as guarantors and HSBC Corporate

Trustee Company (UK) Limited as

trustee relating to the Programme,

was amended and restated. Under the

Trust Deed, the Issuers may issue notes

(Notes) unconditionally and irrevocably

guaranteed by the Guarantors, up to

a maximum nominal amount from time

to time outstanding of £4 billion (or its

equivalent in other currencies). Notes

are to be issued in series (each a Series)

in bearer or registered form. Each Series

may comprise one or more tranches

(each a Tranche) issued on different

issue dates. A Tranche of Notes may be

issued on the terms and conditions set

out in a base prospectus as amended

and/or supplemented by a document

setting out the final terms (Final Terms)

of such Tranche or in a separate

prospectus specific to such Tranche.

Under the Trust Deed, each of the

Issuers and the Guarantors has given

certain customary covenants in

favour of the Trustee.

---

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|:---|:---|:---|
| 278 | IHG | Annual Report and Form 20-F 2025 |

---

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| |
|:---|
| Group Information continued |
| Material contracts continued |

---

The Final Terms issued under the 2025

Issuance provide that the holders of

the Notes have the right to repayment

if the Notes (a) become non-investment

grade within the period commencing

on the date of announcement of a

change of control and ending 90 days

after the change of control (Change

of Control Period) and are not

subsequently, within the Change of

Control Period, reinstated to investment

grade; (b) are downgraded from a non-

investment grade and are not reinstated

to its earlier credit rating or better within

the Change of Control Period; or (c)

are not credit rated and do not become

investment-grade credit rated by the

end of the Change of Control Period.

On 19 September 2024, the Issuers

and the Guarantors entered into

an amended and restated agency

agreement (Agency Agreement) with

Elavon Financial Services DAC, UK

Branch as principal paying agent, Elavon

Financial Services DAC as transfer agent

and registrar and the Trustee, pursuant

to which the Issuers and the Guarantors

appointed paying agents and calculation

agents in connection with the EMTN

Programme and the Notes.

Under the Agency Agreement, each

of the Issuers and the Guarantors

has given a customary indemnity in

favour of the paying agents and the

calculation agents.

On 15 August 2025, the Issuers and the

Guarantors entered into an amended

and restated dealer agreement (Dealer

Agreement) with Barclays Bank PLC

as arranger and Bank of China Limited,

London Branch, Barclays Bank PLC,

Commerzbank Aktiengesellschaft,

Merrill Lynch International, MUFG

Securities EMEA plc, Truist Securities, Inc.

and Wells Fargo Securities International

Limited as dealers (Dealers), pursuant

to which the Dealers were appointed in

connection with the EMTN Programme

and the Notes.

Under the Dealer Agreement, each of

the Issuer and the Guarantors has given

customary warranties and indemnities

in favour of the Dealers.

**Exchange controls and** <br>**restrictions on payment** <br>**of dividends**<br>

There are no restrictions on dividend

payments to US citizens.

Although there are currently no UK

foreign exchange control restrictions

on the export or import of capital or the

payment of dividends on the ordinary

shares or the ADSs, economic sanctions

which may be in force in the UK from

time to time impose restrictions on

the payment of dividends to persons

resident (or treated as so resident) in or

governments of (or persons exercising

public functions in) certain countries.

Other than economic sanctions which

may be in force in the UK from time to

time, there are no restrictions under the

Articles of Association or under English

law that limit the right of non-resident

or foreign owners to hold or vote the

ordinary shares or the ADSs. In addition,

the Articles contain certain limitations

on the voting and other rights of any

holder of ordinary shares whose holding

may, in the opinion of the Directors,

result in the loss or failure to secure the

reinstatement of any licence or franchise

from any US governmental agency held

by Six Continents Hotels, Inc. or any

subsidiary thereof.

---

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|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 279 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

**Legal proceedings**

Group companies have extensive

operations in the UK, as well as

internationally, and are involved in a

number of legal claims and proceedings

incidental to those operations. These

legal claims and proceedings are in

various stages and include disputes

related to specific hotels where the

potential materiality is not yet known.

It is the Company's view that such

proceedings, either individually or

in the aggregate, have not in the

recent past and are not likely to have

a significant effect on the Group's

financial position or profitability.

Notwithstanding the above, the

Company notes the matters set out

below, which are ongoing. Litigation

is inherently unpredictable and,

as at 12 February 2026, unless stated

otherwise, the outcome of these matters

cannot be reasonably determined.

A claim was filed on 26 June 2017

against Inter-Continental Hotels

Corporation, InterContinental

Hotels Group Resources, Inc., and

InterContinental Hotels Group (Canada),

Inc. seeking class action status and

alleging breach of fiduciary duty,

negligence, breach of confidence,

intrusion upon seclusion, breach of

contract, breach of privacy legislation,

and unjust enrichment regarding an

alleged data breach.

The claim was amended in March 2018

to name Six Continents Hotels, Inc.

as the sole defendant. The claimant

alleges that security failures allowed

customers' financial information to

be compromised. As of 12 February

2026, the likelihood of a favourable

or unfavourable result cannot be

reasonably determined, and it is not

possible to determine whether any

loss is likely or to estimate the

amount of any loss.

Seven claims were filed in March 2022

against HHF, Six Continents Hotels,

Inc., and the IHG Owner's Association,

seeking class action status on

behalf of the Group's franchisees.

Following dismissal of two claims and

consolidation of the remaining, an

amended claim was filed against HHF

and Six Continents Hotels, Inc., alleging

claims for breach of contract, breach

of implied covenant of good faith and

fair dealing, breach of fiduciary duty,

declaratory judgement, violation

of the Sherman Act and demand for

accounting. The claims allege that

the Group as franchisor, is engaged

in unlawful business practices relating

to numerous programmes, products

and requirements which are purportedly

part of the Group's franchise system.

The Court dismissed the majority of

the claims, and the remaining claims

allege breach of contract and deceptive

trade practices. The Court ruled in the

Group's favour on the remaining claims

on 9 December 2024, and the matter

was subsequently dismissed with

prejudice on 20 May 2025.

An arbitration was filed on 11 December

2022, alleging that Holiday Inns Middle

East Limited breached its contractual

obligations by causing delay in relation

to the opening of a hotel. The claim

sought monetary damages for various

alleged losses. The parties finalised a

commercial resolution and the arbitration

proceedings were terminated on

2 October 2025.

Six Continents Hotels, Inc. is a party to

two lawsuits seeking class action status

that were filed in February and March

2024 against Six Continents Hotels, Inc.

and other hotel companies as well

as revenue management software

providers. The lawsuits allege that

the defendants violated antitrust laws

by exchanging proprietary, current

and forward-looking information causing

consumers to pay higher room rates.

Motions to dismiss have been filed in

both actions. As of 12 February 2026,

the likelihood of a favourable or

unfavourable result cannot be reasonably

determined, and it is not possible to

determine whether any loss is likely or

to estimate the amount of any loss.

A claim was filed on 30 June 2025

against InterContinental Hotels

Group Resources, LLC seeking class

action status and alleging violations

of applicable unfair and deceptive

trade practices regulations with

respect to pricing displays on the

websites of online travel agencies.

The claim was subsequently amended

to name Six Continents Hotels, Inc.

as the sole defendant. As of 12 February

2026, the likelihood of a favourable

or unfavourable result cannot be

reasonably determined, and it is not

possible to determine whether any

loss is likely or to estimate the

amount of any loss.

A lawsuit was filed on 18 December

2025 against Six Continents Hotels,

Inc. and Holiday Hospitality Franchising,

LLC by the licensee and guarantors

of a conversion hotel. The plaintiffs

assert that the defendants violated

state franchise law and made

misrepresentations with respect

to the offer of the franchise. As of

12 February 2026, the likelihood of

a favourable or unfavourable result

cannot be reasonably determined,

and it is not possible to determine

whether any loss is likely or to

estimate the amount of any loss.

---

| | | |
|:---|:---|:---|
| 280 | IHG | Annual Report and Form 20-F 2025 |

---

Shareholder information<br>

**Taxation**

This section provides a summary

of material US federal income tax and

UK tax consequences to US holders,

described below, of owning and

disposing of ordinary shares or ADSs

of the Company. This section addresses

only the tax position of a US holder who

holds ordinary shares or ADSs as capital

assets. This section does not, however,

discuss all of the tax considerations

that may be relevant to any particular

US holder, such as the provisions of

the Internal Revenue Code of 1986,

as amended (IR Code) known as

the Medicare Contribution tax or tax

consequences to US holders subject

to special rules, such as:

–certain financial institutions;

–insurance companies;

–dealers and traders in securities

who use a mark-to-market method

of tax accounting;

–persons holding ordinary shares or

ADSs as part of a straddle, conversion

transaction, integrated transaction

or wash sale, or persons entering

into a constructive sale with respect

to the ordinary shares or ADSs;

–persons whose functional currency

for US federal income tax purposes

is not the US dollar;

–partnerships or other entities classified

as partnerships for US federal income

tax purposes;

–persons liable for any minimum tax;

–tax-exempt organisations;

–persons who acquired the Company's

ADSs or ordinary shares pursuant to

the exercise of any employee stock

option or otherwise in connection

with employment; and

–persons who, directly or indirectly,

own ordinary shares or ADSs

representing 10% or more of the

Company's voting power or value.

This section does not generally deal

with the position of a US holder who

is resident in the UK for UK tax purposes

or who is subject to UK taxation on

capital gains or income by virtue of

carrying on a trade, profession or

vocation in the UK through a branch,

agency or permanent establishment

to which such ADSs or ordinary shares

are attributable ('trading in the UK').

As used herein, a 'US holder' is a

person who, for US federal income

tax purposes, is a beneficial owner

of ordinary shares or ADSs and is: (i) a

citizen or individual resident of the US;

(ii) a corporation, or other entity taxable

as a corporation, created or organised

in or under the laws of the US, any

state therein or the District of Columbia;

(iii) an estate whose income is subject

to US federal income tax regardless of

its source; or (iv) a trust, if a US court can

exercise primary supervision over the

trust's administration and one or more

US persons are authorised to control

all substantial decisions of the trust.

This section is based on the IR Code, its

legislative history, existing and proposed

regulations, published rulings and court

decisions, and on UK tax laws and the

published practice of HM Revenue and

Customs (HMRC), all as of the date

hereof. These laws, and that practice,

are subject to change, possibly on a

retroactive basis.

This section is further based in part

upon the representations of the ADR

Depositary and assumes that each

obligation in the deposit agreement and

any related agreement will be performed

in accordance with its terms. For US

federal income tax purposes, an owner

of ADRs evidencing ADSs will generally

be treated as the owner of the

underlying shares represented by those

ADSs. For UK tax purposes, in practice,

HMRC will also regard holders of ADSs

as the beneficial owners of the ordinary

shares represented by those ADSs

(although case law has cast some doubt

on this). The discussion below assumes

that HMRC's position is followed.

Generally, exchanges of ordinary shares

for ADSs, and ADSs for ordinary shares,

will not be subject to US federal income

tax or UK taxation on capital gains,

although UK stamp duty or stamp duty

reserve tax (SDRT) may arise as

described below.

Investors should consult their own

tax advisers regarding the US federal,

state and local, the UK and other tax

consequences of owning and disposing

of ordinary shares or ADSs in their

particular circumstances.

The following disclosures assume

that the Company is not, and will not

become, a passive foreign investment

company (PFIC), except as described

below.

**Taxation of dividends**

**UK taxation**

Under current UK tax law, the Company

will not be required to withhold tax

at source from dividend payments

it makes.

A US holder who is not resident for

UK tax purposes in the UK and who is

not trading in the UK will generally not

be liable for UK taxation on dividends

received in respect of the ADSs or

ordinary shares.

**US federal income taxation**

A US holder is generally subject to US

federal income taxation on the gross

amount of any dividend paid by

the Company out of its current or

accumulated earnings and profits

(as determined for US federal income

tax purposes). Distributions in excess

of the Company's current and

accumulated earnings and profits,

as determined for US federal income

tax purposes, will be treated as a return

of capital to the extent of the US holder's

basis in the ordinary shares or ADSs

and thereafter as capital gain. Because

the Company has not historically

maintained, and does not currently

maintain, books in accordance with US

tax principles, the Company does not

expect to be in a position to determine

whether any distribution will be in

excess of the Company's current and

accumulated earnings and profits as

computed for US federal income tax

purposes. As a result, it is expected that

amounts distributed will be reported

to the Internal Revenue Service (IRS)

as dividends.

Subject to applicable limitations,

dividends paid to certain non-corporate

US holders will be taxable at the

preferential rates applicable to long-term

capital gain if the dividends constitute

'qualified dividend income'. The Company

expects that dividends paid by the

Company with respect to the ordinary

shares or ADSs will constitute qualified

dividend income. Non-corporate US

holders should consult their own tax

advisers to determine whether they

are subject to any special rules that

limit their ability to be taxed at

these preferential rates.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 281 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

Dividends must be included in income

when the US holder, in the case of

shares, or the ADR Depositary, in the

case of ADSs, actually or constructively

receives the dividend, and will not

be eligible for the dividends-received

deduction generally allowed to US

corporations in respect of dividends

received from certain other US

corporations. For foreign tax credit

limitation purposes, dividends will

generally be income from sources

outside the US.

The amount of any dividend paid in

pounds sterling will be the US dollar

value of the sterling payments made,

determined at the spot sterling/US dollar

rate on the date the dividend distribution

is includible in income, regardless

of whether the payment is in fact

converted into US dollars. If the dividend

is converted into US dollars on that date,

a US holder should not be required to

recognise foreign currency gain or

loss in respect of the dividend income.

Generally, any gain or loss resulting from

currency exchange fluctuations during

the period from the date the dividend

payment is includible in income to the

date the payment is converted into US

dollars will be treated as ordinary income

or loss from sources within the US.

**Taxation of capital gains**

**UK taxation**

A US holder who is not resident for UK

tax purposes in the UK and who is not

trading in the UK will not generally be

liable for UK taxation on capital gains,

or eligible for relief for allowable losses,

realised or accrued on the sale or other

disposal of ADSs or ordinary shares.

A US holder of ADSs or ordinary shares

who is an individual and who, broadly,

has temporarily ceased to be resident

in the UK or has become temporarily

treated as non-resident for UK tax

purposes for a period of not more than

five years and who disposes of ordinary

shares or ADSs during that period may,

for the year of assessment when that

individual becomes resident again in

the UK, be liable to UK tax on capital

gains (subject to any available

exemption or relief), notwithstanding

the fact that such US holder was not

treated as resident in the UK at the

time of the sale or other disposal.

**US federal income taxation**

A US holder who sells or otherwise

disposes of ordinary shares or ADSs

will recognise a capital gain or loss for

US federal income tax purposes equal

to the difference between the amount

realised and its tax basis in the ordinary

shares or ADSs, each determined in

US dollars. Such capital gain or loss

will be a long-term capital gain or loss

where the US holder has a holding

period greater than one year. Losses

may also be treated as long-term

capital losses to the extent of certain

'extraordinary dividends' that qualified

for the preferential tax rates on qualified

dividend income described above.

The capital gain or loss will generally

be income or loss from sources within

the US for foreign tax credit limitation

purposes. The deductibility of capital

losses is subject to limitations.

**PFIC rules**

Based on the manner in which

the Group operates its business and

estimates of the value of its assets

(which estimates are based, in part,

on the market value of the Company's

ADSs) the Company believes that it

was not a PFIC for US federal income

tax purposes for its 2025 taxable year.

However, the Company's PFIC status

is an annual factual determination and

thus may be subject to change. If the

Company were a PFIC for any taxable

year during which a US holder owned

ordinary shares or ADSs, gain realised on

the sale or other disposition of ordinary

shares or ADSs would, in general, not

be treated as capital gain. Instead, gain

would be treated as if the US holder

had realised such gain rateably over the

holding period for the ordinary shares

or ADSs and, to the extent allocated

to the taxable year of the sale or other

disposition and to any year before the

Company became a PFIC, would be

taxed as ordinary income. The amount

allocated to each other taxable year

would be taxed at the highest tax rate

in effect (for individuals or corporations,

as applicable) for each such year to

which the gain was allocated, together

with an interest charge in respect of

the tax attributable to each such year.

In addition, similar rules would apply

to any 'excess distribution' received on

the ordinary shares or ADSs (generally,

the excess of distributions received on

the ordinary shares or ADSs during the

taxable year over 125% of the average

amount of distributions received

during a specified prior period).

The preferential rates for qualified

dividend income described above would

not apply if the Company were a PFIC

for the taxable year of the distribution

or the preceding taxable year.

Certain elections may be available

(including a mark-to-market election)

to US holders that would result in

alternative treatments of the ordinary

shares or ADSs. If the Company were

a PFIC for any taxable year in which a

US holder held ordinary shares or ADSs,

a US holder would generally be required

to file IRS Form 8621 with their annual

US federal income tax returns, subject

to certain exceptions.

**Additional tax considerations**

**UK inheritance tax**

Following the enactment of the

United Kingdom's Finance Act 2025,

an individual who is not a 'long-term

resident' for the purposes of the United

Kingdom's Inheritance Tax Act 1984

should generally only be chargeable

to UK inheritance tax to the extent the

individual owns assets situated in the UK.

As a matter of UK law, it is not clear

whether the situs of an ADS for UK

inheritance tax purposes is determined

by the place where the depositary is

established and records the entitlements

of the deposit holders, or by the situs

of the underlying share which the ADS

represents, but HMRC may take the view

that the ADSs, as well as the ordinary

shares, are or represent UK-situs assets.

However, an individual who is domiciled

in the US (for the purposes of the

Estate and Gift Tax Convention (the

'Convention')), and is not a UK national

as defined in the Convention, will not

be subject to UK inheritance tax (to the

extent UK inheritance tax applies) in

respect of the ordinary shares or ADSs

on the individual's death or on a transfer

of the ordinary shares or ADSs during

their lifetime, provided that any

applicable US federal gift or estate tax

is paid, unless the ordinary shares or

ADSs are part of the business property

of a UK permanent establishment

or pertain to a UK fixed base of an

individual used for the performance

of independent personal services.

Where the ordinary shares or ADSs have

been placed in trust by a settlor, they

may be subject to UK inheritance tax

unless, when the trust was created,

the settlor was domiciled in the US

and was not a UK national.

---

| | | |
|:---|:---|:---|
| 282 | IHG | Annual Report and Form 20-F 2025 |

---

---

| |
|:---|
| Shareholder information continued |
| Taxation continued |

---

If no relief is given under the Convention,

inheritance tax may be charged on

death and also on the amount by which

the value of an individual's estate is

reduced as a result of any transfer made

by way of a gift or other undervalue

transfer, broadly within seven years

of death, and in certain other

circumstances. Where the ordinary

shares or ADSs are subject to both UK

inheritance tax and to US federal gift

or estate tax, the Convention generally

provides for either a credit against US

federal tax liabilities for UK inheritance

tax paid or for a credit against UK

inheritance tax liabilities for US federal

tax paid, as the case may be.

The above discussion reflects current

UK tax law. US Holders who may be

impacted by the tax laws discussed

above should consult with their tax

advisers as necessary.

**UK stamp duty and SDRT**

Neither stamp duty nor Stamp Duty

Reserve Tax (SDRT) will generally be

payable in the UK on the purchase or

transfer of an ADS, provided that the

ADS and any separate instrument

or written agreement of transfer are

executed and remain at all times outside

the UK. UK legislation does, however,

provide for stamp duty or SDRT to

be payable at the rate of 1.5% on the

amount or value of the consideration

(or, in some cases, the value of the

ordinary shares) where ordinary shares

are transferred to a person (or a

nominee or agent of a person) whose

business is or includes issuing depositary

receipts or the provision of clearance

services. In accordance with the terms

of the deposit agreement, any tax or

duty payable on deposits of ordinary

shares by the depositary or by the

custodian of the depositary will typically

be charged to the party to whom ADSs

are delivered against such deposits.

However, such transfers will not attract

stamp duty or SDRT where they satisfy

the conditions of an exemption,

including exemptions which can apply

to certain capital raising or qualifying

listing arrangements.

Specific professional advice should

be sought before paying a 1.5%

SDRT or stamp duty charge in any

circumstances.

A transfer of the underlying ordinary

shares will generally be subject to stamp

duty or SDRT, normally at the rate of

0.5% of the amount or value of the

consideration (rounded up to the next

multiple of £5 in the case of stamp duty).

A transfer of ordinary shares from

a nominee to its beneficial owner,

including the transfer of underlying

ordinary shares from the depositary

to an ADS holder, under which no

beneficial interest passes, will not be

subject to stamp duty or SDRT.

Any UK stamp duty or SDRT imposed

upon transfers of ADSs or ordinary

shares will not be creditable for US

federal income tax purposes. US

Holders should consult their tax advisers

regarding whether any such UK stamp

duty or SDRT may be deductible or

reduce the amount of gain (or increase

the amount of loss) recognised upon

a sale or other disposition of the ADSs

or ordinary shares.

**US backup withholding** 

**and information reporting**

Payments of dividends and sales

proceeds with respect to ADSs and

ordinary shares may be reported to

the IRS and to the US holder. Backup

withholding may apply to these

reportable payments if the US holder

fails to provide an accurate taxpayer

identification number or certification

of exempt status, or fails to report all

interest and dividends required to be

shown on its US federal income tax

returns. Certain US holders (including,

among others, corporations) are not

subject to information reporting and

backup withholding (but may be

required to establish their exempt

status). The amount of any backup

withholding from a payment to a US

holder will be allowed as a credit against

the holder's US federal income tax

liability and may entitle the holder to

a refund, provided that the required

information is furnished in a timely

manner to the IRS. US holders should

consult their tax advisers as to their

qualification for exemption from backup

withholding and the procedure for

obtaining an exemption.

Certain US holders who are individuals

(and certain specified entities) may

be required to report information

relating to their ownership of non-US

securities unless the securities are held

in accounts at financial institutions

(in which case the accounts may be

reportable if maintained by non-US

financial institutions). US holders should

consult their tax advisers regarding

any reporting obligations they may

have with respect to the Company's

ordinary shares or ADSs.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 283 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

**Disclosure controls** 

**and procedures**

As of the end of the period covered

by this report, the Group carried out an

evaluation under the supervision and

with the participation of the Group's

management, including the Chief

Executive Officer and Chief Financial

Officer, of the effectiveness of the

design and operation of the Group's

disclosure controls and procedures (as

defined in Rules 13a–15(e) and 15d–15(e)

of the Securities Exchange Act 1934).

These are defined as those controls

and procedures designed to ensure that

information required to be disclosed

in reports filed under the Securities

Exchange Act 1934 is recorded,

processed, summarised and reported

within the specified periods. Based on

that evaluation, the Chief Executive

Officer and Chief Financial Officer

concluded that the Group's disclosure

controls and procedures were effective.

**Insider trading policy**

The Company has in place a code of

practice for dealing in the Company's

securities, which is designed to ensure

that the Company's Directors, Executive

Committee members and certain

of the Group's employees comply

with applicable insider trading laws,

rules and regulations and related

regulatory obligations.

A copy of the code of practice is

included as Exhibit 11.1 to this Annual

Report and Form 20-F.

---

| | | |
|:---|:---|:---|
| 284 | IHG | Annual Report and Form 20-F 2025 |

---

Shareholder information continued<br>

**Summary of significant** 

**corporate governance** 

**differences from NYSE** 

**listing standards**

The Group's statement of compliance with

the principles and provisions specified

in the UK Corporate Governance Code

2024, issued in January 2024 by the

Financial Reporting Council (the Code)

is set out on pages 162 and 163.

IHG has also adopted the corporate

governance requirements of the US

Sarbanes-Oxley Act and related rules

and of the NYSE, to the extent that they

are applicable to it as a foreign private

issuer. As a foreign private issuer, IHG

is required to disclose any significant

ways in which its corporate governance

practices differ from those followed by

US companies. These are as follows:

**Basis of regulation**

The Code contains a series of principles

and provisions. Listed companies are

required to state how they have applied

the Code's principles, and the provisions

operate on a 'comply or explain' basis,

where any areas of non-compliance

should be disclosed with an explanation

for the non-compliance.

In contrast, US companies listed on the

NYSE are required to adopt and disclose

corporate governance guidelines

adopted by the NYSE.

**Independent Directors**

The Code's principles recommend that

at least half the Board, excluding the

Chair, should consist of independent

non-executive directors. As at 12

February 2026, the Board consisted

of the Chair, independent at the time

of her appointment, two Executive

Directors and seven independent Non-

Executive Directors. NYSE listing rules

applicable to US companies state that

companies must have a majority of

independent directors. The NYSE has

set out six bright line tests for director

independence. The Board's judgement

is that all of its Non-Executive Directors

are independent. However, it did

not explicitly take into consideration

the NYSE's tests in reaching this

determination.

**Chair and Chief Executive Officer**

The Code recommends that the Chair

and Chief Executive Officer should not

be the same individual to ensure that

there is a clear division of responsibility

for the running of the Company's

business. There is no corresponding

requirement for US companies. The

roles of Chair and Chief Executive

Officer were, as at 12 February 2026

and throughout 2025, fulfilled by

separate individuals.

**Committees**

The Company has a number of Board

Committees which are similar in purpose

and constitution to those required for

domestic companies under NYSE rules.

The NYSE requires US companies

to have audit, remuneration and

nominating/corporate governance

committees composed entirely of

independent directors, as defined

under the NYSE rules. The Company's

Nomination, Audit and Remuneration

Committees consist entirely of

Non-Executive Directors who are

independent under the standards of

the Code, which may not necessarily

be the same as the NYSE independence

standards. The nominating/governance

committee is responsible for identifying

individuals qualified to become Board

members and to recommend to the

Board a set of corporate governance

principles. As the Company is subject

to the Code, the Company's Nomination

Committee is responsible for

nominating, for approval by the Board,

candidates for appointment to the

Board, including recommending suitable

candidates for the role of Senior

Independent Non-Executive Director.

The Company's Nomination Committee

consists of the Chair and independent

Non-Executive Directors.

The Chair of the Company is not a

member of the Audit Committee. As set

out on page 128, the Audit Committee

is chaired by an independent Non-

Executive Director who, in the Board's

view, has the experience and

qualifications to satisfy the criterion

under US rules for an 'audit committee

financial expert'.

**Non-Executive Director meetings**

NYSE rules require that non-

management Directors of US companies

must meet on a regular basis without

management present, and independent

Directors must meet separately at least

once per year. The Code recommends:

(i) the Board Chair to hold meetings

with the Non-Executive Directors

without the Executive Directors present;

and (ii) the Non-Executive Directors

to meet at least annually without the

Chair present to appraise the Chair's

performance. The Company's Non-

Executive Directors have met frequently

without Executive Directors being

present, and intend to continue this

practice, after every Board meeting

if possible.

**Shareholder approval of equity** 

**compensation plans**

The NYSE rules require that shareholders

must be given the opportunity to

vote on all equity compensation plans

and material revisions to those plans.

The Company complies with UK

requirements, which are similar to

the NYSE rules. The Board does not,

however, explicitly take into

consideration the NYSE's detailed

definition of 'material revisions'.

**Code of Conduct**

The NYSE requires companies to adopt

a code of business conduct and ethics,

applicable to Directors, officers and

employees. Any waivers granted to

Directors or officers under such a code

must be promptly disclosed. As set

out on pages 56 to 57, IHG's Code of

Conduct is applicable to all Directors,

officers and employees, and is

available on the Company's website

at **[ihgplc.com/investors/corporate-](ihgplc.com/investors/corporate-governance/code-of-conduct)**

**[governance/code-of-conduct](ihgplc.com/investors/corporate-governance/code-of-conduct)**.

No waivers have been granted under

the Code of Conduct.

**Compliance certification**

Each chief executive of a US company

must certify to the NYSE each year that

he or she is not aware of any violation

by the Company of any NYSE corporate

governance listing standard. As the

Company is a foreign private issuer,

the Company's Chief Executive Officer

is not required to make this certification.

However, he is required to notify the

NYSE promptly in writing after any of the

Company's executive officers become

aware of any non-compliance with those

NYSE corporate governance rules

applicable to the Company.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 285 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

**Return of funds**

Since March 2003, the Group has returned over £8 billion of funds to shareholders by way of special dividends, capital returns

and share repurchase programmes.

---

| | | | |
|:---|:---|:---|:---|
| Return of funds programme | Timing | Total return | Returned to date |
| £501m special dividend<sup>a</sup> | Paid in December 2004 | £501m | £501m |
| £250m share buyback | Completed in 2004 | £250m | £250m |
| £996m capital return<sup>a</sup> | Paid in July 2005 | £996m | £996m |
| £250m share buyback | Completed in 2006 | £250m | £250m |
| £497m special dividend<sup>a</sup> | Paid in June 2006 | £497m | £497m |
| £250m share buyback | Completed in 2007 | £250m | £250m |
| £709m special dividend<sup>a</sup> | Paid in June 2007 | £709m | £709m |
| £150m share buyback | N/A<sup>b</sup> | £150m | £120m |
| $500m special dividend<sup>a,c</sup> | Paid in October 2012 | £315m<sup>d</sup><br>($500m)<br>| £315m<sup>e</sup><br>($505m)<br>|
| $500m share buyback | Completed in 2014 | £315m<sup>d</sup><br>($500m)<br>| £315m<br>($500m)<sup>f</sup><br>|
| $350m special dividend | Paid in October 2013 | £229m<sup>g</sup><br>($350m)<br>| £228m<br>($355m)<sup>h</sup><br>|
| $750m special dividend<sup>a</sup> | Paid in July 2014 | £447m<sup>i</sup><br>($750m)<br>| £446m<br>($763m)<sup>j</sup><br>|
| $1,500m special dividend<sup>a</sup> | Paid in May 2016 | £1,038m<sup>k</sup><br>($1,500m)<br>| £1,038m<br>($1,500m)<br>|
| $400m special dividend<sup>a</sup> | Paid in May 2017 | £309m<sup>l</sup><br>($400m)<br>| £310m<br>($404m)<br>|
| $500m special dividend<sup>a</sup> | Paid in January 2019 | £389m<sup>m</sup><br>($500m)<br>| £388m<br>($510m)<br>|
| $500m share buyback | Completed in January 2023 | £432m<br>($496m)<br>| £432m<br>($496m)<br>|
| $750m share buyback | Completed in December 2023 | £595m<br>($746m)<br>| £595m<br>($746m)<br>|
| $800m share buyback | Completed in December 2024 | £622m<br>($792m)<br>| £622m<br>($792m)<br>|
| $900m share buyback | Completed in December 2025 | £671m<br>($887m)<br>| £671m<br>($887m)<br>|
| Total |  | £8,965m | £8,933m |

---

a.Accompanied by a share consolidation.

b.This programme was superseded by the share buyback programme announced on 7 August 2012.

c.IHG changed the reporting currency of its Consolidated Financial Statements from sterling to US dollars effective from the Half-Year Results

as at 30 June 2008.

d.The dividend was first determined in US dollars and converted to sterling immediately before announcement at the rate of $1=£0.63, as set out

in the circular detailing the special dividend and share buyback programme published on 14 September 2012.

e.Sterling dividend translated at $1=£0.624.

f.Translated into US dollars at the average rates of exchange for the relevant years (2014 $1=£0.61; 2013 $1=£0.64; 2012 $1 = £0.63).

g.The dividend was first determined in US dollars and converted to sterling immediately before announcement at the rate of $1=£0.65, as announced

in the Half-Year Results to 30 June 2013.

h.Sterling dividend translated at $1=£0.644.

i.The dividend was first determined in US dollars and converted to sterling immediately before announcement at the rate translated at $1=£0.597.

j.Sterling dividend translated at $1=£0.5845.

k.The dividend was first determined in US dollars and converted to sterling at the rate of $1 = £0.6923, as announced on 12 May 2016.

l.The dividend was first determined in US dollars and converted to sterling at the rate of $1 = £0.7724, as announced on 11 May 2017.

m.The dividend was first determined in US dollars and converted to sterling at the rate of £1 = $1.2860, as announced on 17 January 2019.

---

| | | |
|:---|:---|:---|
| 286 | IHG | Annual Report and Form 20-F 2025 |

---

Shareholder information continued<br>

**Purchases of equity securities by the Company and affiliated purchaser**

The Group's $900m share buyback programme was announced on 18 February 2025 and completed by 31 December 2025.

As at 31 December 2025, 7,585,264 shares had been repurchased at an average price of £88.50 per share (approximately £671m).

---

| | | | |
|:---|:---|:---|:---|
|  | Total number of shares <br>(or units) purchased<br>| Average price paid<br>per share (or unit) (£)<br>| Total number of shares <br>(or units) purchased as <br>part of publicly <br>announced plans or <br>programmes<br>|
| Month 1 (no purchases this month) | – | – | –<br> 16427423<sup>a</sup> |
| Month 2 | 786399 | 99.1932 | 786399<br> 16427423<sup>a</sup> |
| Month 3 | 530657 | 91.9176 | 530657<br> 16427423<sup>a</sup> |
| Month 4 | 1609223 | 76.5969 | 1609223<br> 16427423<sup>a</sup> |
| Month 5 | 68396 | 84.7407 | 68396<br> 15718872<sup>b</sup> |
| Month 6 | 828523 | 83.3338 | 828523<br> 15718872<sup>b</sup> |
| Month 7 | 310889 | 86.2786 | 310889<br> 15718872<sup>b</sup> |
| Month 8 | 691095 | 87.5773 | 691095<br> 15718872<sup>b</sup> |
| Month 9 | 1030229 | 88.4909 | 1030229<br> 15718872<sup>b</sup> |
| Month 10 | 591571 | 91.8212 | 591571<br> 15718872<sup>b</sup> |
| Month 11 | 666487 | 97.5183 | 666487<br> 15718872<sup>b</sup> |
| Month 12 | 471795 | 103.0149 | 471795<br> 15718872<sup>b</sup> |

---

a.Reflects the resolution passed at the Company's AGM held on 3 May 2024.

b.Reflects the resolution passed at the Company's AGM held on 8 May 2025.

**Dividend history**

The table below sets forth the amounts of ordinary dividends on each ordinary share and special dividends, in respect of each

financial year indicated.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Interim dividend | Interim dividend | Final dividend | Final dividend | Total dividend | Total dividend | Special dividend | Special dividend |
| | Pence | Cents | Pence | Cents | Pence | Cents | Pence | Cents |
| 2025 | 43.3 | 58.6 | N/A<sup>a</sup> | 125.9 | N/A<sup>a</sup> | 184.5 | – | – |
| 2024 | 40.8 | 53.2 | 86 | 114.4 | 126.8 | 167.6 | – | – |
| 2023 | 38.7 | 48.3 | 83.9 | 104 | 122.6 | 152.3 | – | – |
| 2022 | 37.8 | 43.9 | 76.08 | 94.5 | 113.88 | 138.4 | – | – |
| 2021 | – | – | 67.5 | 85.9 | 67.5 | 85.9 | – | – |
| 2020 | – | – | – | – | – | – | – | – |
| 2019 | 32 | 39.9 | –<sup>b</sup> | –<sup>b</sup> | 32 | 39.9 | – | – |
| 2018 | 27.7 | 36.3 | 60.4 | 78.1 | 88.1 | 114.4 | 203.8<sup>c,e</sup> | 262.1<sup>c,e</sup> |
| 2017 | 24.4 | 33 | 50.2 | 71 | 74.6 | 104 | 156.4<sup>c</sup> | 202.5<sup>c</sup> |
| 2016 | 22.6 | 30 | 49.4 | 64 | 72 | 94 | 438.2<sup>c</sup> | 632.9<sup>c</sup> |
| 2015 | 17.7 | 27.5 | 40.3 | 57.5 | 58 | 85 | – | – |
| 2014 | 14.8 | 25 | 33.8 | 52 | 48.6 | 77 | 174.9<sup>c</sup> | 293.0<sup>c</sup> |
| 2013 | 15.1 | 23 | 28.1 | 47 | 43.2 | 70 | 87.1 | 133 |
| 2012 | 13.5 | 21 | 27.7 | 43 | 41.2 | 64 | 108.4<sup>c</sup> | 172.0<sup>c</sup> |
| 2011 | 9.8 | 16 | 24.7 | 39 | 34.5 | 55 | – | – |
| 2010 | 8 | 12.8 | 22 | 35.2 | 30 | 48 | – | – |
| 2009 | 7.3 | 12.2 | 18.7 | 29.2 | 26 | 41.4 | – | – |
| 2008<sup>d</sup> | 6.4 | 12.2 | 20.2 | 29.2 | 26.6 | 41.4 | – | – |
| 2007 | 5.7 | 11.5 | 14.9 | 29.2 | 20.6 | 40.7 | 200<sup>c</sup> | – |
| 2006 | 5.1 | 9.6 | 13.3 | 25.9 | 18.4 | 35.5 | 118<sup>c</sup> | – |

---

a.The sterling amount of the final dividend will be announced on 27 April 2026 using the average of the daily exchange rates for the three working days

commencing 22 April 2026.

b.The Board withdrew its recommendation of a final dividend in respect of 2019 of 85.9¢ per share.

c.Accompanied by a share consolidation.

d.IHG changed the reporting currency of its Consolidated Financial Statements from sterling to US dollars effective from the Half-Year Results as at

30 June 2008. Starting with the interim dividend for 2008, all dividends have first been determined in US dollars and converted into sterling prior

to payment.

e.This special dividend was announced on 19 October 2018 and paid on 29 January 2019.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 287 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

Shareholder profiles<br>

**Shareholder profile by type as at 31 December 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
| Category of shareholder | Number of <br>shareholders<br>| Percentage of total <br>shareholders<br>| Number of ordinary <br>shares<br>| Percentage of issued <br>share capital<br>|
| Private individuals | 25052 | 93.99 | 5994924 | 3.82 |
| Nominee companies | 1246 | 4.67 | 117799975 | 74.97 |
| Limited and public limited companies | 199 | 0.75 | 18435723 | 11.73 |
| Other corporate bodies | 149 | 0.56 | 14848971 | 9.45 |
| Banks and unknown | 8 | 0.03 | 46997 | 0.03 |
| Total | 26654 | 100 | 157126590 | 100 |

---

**Shareholder profile by size as at 31 December 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
| Range of shareholdings | Number of <br>shareholders<br>| Percentage of total <br>shareholders<br>| Number of ordinary <br>shares<br>| Percentage of issued <br>share capital<br>|
| 1–199 | 18601 | 69.79 | 1073976 | 0.68 |
| 200–499 | 4402 | 16.52 | 1374462 | 0.87 |
| 500–999 | 1760 | 6.60 | 1219238 | 0.78 |
| 1000–4999 | 1199 | 4.50 | 2331655 | 1.48 |
| 5000–9999 | 187 | 0.70 | 1330899 | 0.85 |
| 10000–49999 | 265 | 0.99 | 6305601 | 4.01 |
| 50, 000–99999 | 69 | 0.26 | 4912850 | 3.13 |
| 100000–499999 | 125 | 0.47 | 26721226 | 17.01 |
| 500000–999999 | 22 | 0.08 | 15259905 | 9.71 |
| 1,000,000 and above | 24 | 0.09 | 96596778 | 61.48 |
| Total | 26654 | 100 | 157126590 | 100 |

---

**Shareholder profile by geographical location as at 31 December 2025**

---

| | |
|:---|:---|
| Country/Jurisdiction | Percentage of issued <br>share capital<br>|
| UK | 30.6% |
| Rest of Europe | 17.2% |
| North America (inc. ADRs) | 49.5% |
| Rest of world | 2.7% |
| Total | 100% |

---

The geographical profile presented is based on an analysis of shareholders (by manager) of 10,000 shares or above where

geographical ownership is known. This analysis only captures 88% of total issued share capital. Therefore, the known percentage

distributions have been multiplied by 100/88 to achieve the figures shown in the table above.

As of 12 February 2026, 14,532,685 ADRs equivalent to 14,532,685 ordinary shares, or approximately 9.5% of the total issued

share capital, were outstanding and were held by 363 registered holders. Since certain ordinary shares are registered in the

names of nominees, the number of shareholders on record may not be representative of the number of beneficial owners.

As of 12 February 2026, there were a total of 27,306 recorded holders of ordinary shares, of whom 214 had registered addresses

in the US and held a total of 249,487 ordinary shares (0.16% of the total issued share capital).

---

| | | |
|:---|:---|:---|
| 288 | IHG | Annual Report and Form 20-F 2025 |

---

Schedule 1: Condensed Parent Company <br>financial information<br>

As described in note 15 to the Consolidated Financial Statements, certain of the Group's financial assets, which are held

in subsidiaries of InterContinental Hotels Group PLC, are subject to restrictions. Since the Group as a whole has net liabilities,

the restricted net assets of InterContinental Hotels Group PLC's consolidated subsidiaries as of 31 December therefore exceeded

25% of consolidated net assets. This Schedule I has therefore been provided pursuant to the requirements of Securities and

Exchange Commission (SEC) Regulation S-X Rule 12-04(a), which require condensed financial information of a parent company

as of the same dates and for the same periods for which audited consolidated financial statements have been presented.

The Condensed Parent Company financial information should be read in conjunction with the Consolidated Financial

Statements. The condensed financial information has been prepared using the same material accounting policies as set out

in the Consolidated Financial Statements. Additionally, investments in subsidiaries are included at cost less any provision for

impairment in value. Where the Company grants awards over its own shares to the employees of its subsidiaries, it recognises

an increase in the cost of investment in its subsidiaries equivalent to the equity-settled share-based payment charge. Any

consideration received from subsidiaries in relation to those awards does not represent an increase in the cost of investment.

Amounts due from Group undertakings are recognised initially at fair value and subsequently measured at amortised cost

using the effective interest rate method less provision for expected credit losses. In the condensed statement of cash flows,

dividends received are presented within investing activities.

The condensed financial information is presented in millions of US dollars.

Dividends paid by the Parent Company are analysed in note 9 to the Consolidated Financial Statements.

As at 31 December 2025, there are no mandatory dividend or redemption requirements for redeemable stocks to disclose.

**Condensed statement of profit/(loss) and other comprehensive income of the Parent Company**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
| For the year ended 31 December 2025 | $m | $m | $m |
| Administrative expenses | (2) | (2) | (2) |
| Operating loss | (2) | (2) | (2) |
| Dividend income from subsidiary undertaking | 2015 | 762 | 1877 |
| Financial income | 3 | 30 | 30 |
| Financial expenses | (86) | (81) | (77) |
| Profit before tax | 1930 | 709 | 1828 |
| Tax | 25 | 16 | 16 |
| Profit for the year | 1955 | 725 | 1844 |
| Other comprehensive income/(loss) |  |  |  |
| Items that may be subsequently reclassified to profit or loss: |  |  |  |
| Gains/(losses) on cash flow hedges, including related tax credit of $2m (2024: $2m <br>charge; 2023: $1m charge)<br>| 12 | (51) | (36) |
| Costs of hedging | 2 | 1 | 2 |
| Hedging (gains)/losses reclassified to financial expenses | (21) | 57 | 35 |
| Exchange gains/(losses) on translation | 165 | (38) | 119 |
| Total other comprehensive income/(loss) | 158 | (31) | 120 |
| Total comprehensive income | 2113 | 694 | 1964 |

---

Total comprehensive income for the year is entirely attributable to the equity holders of the Parent Company.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 289 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

**Condensed statement of financial position of the Parent Company**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| 31 December 2025 | $m | $m |
| ASSETS |  |  |
| Investments in subsidiary undertakings | 4433 | 4077 |
| Derivative financial instruments | 6 | – |
| Deferred tax assets | 59 | 53 |
| Total non-current assets | 4498 | 4130 |
| Amounts due from related parties | 578 | 193 |
| Tax receivable | 25 | 16 |
| Total current assets | 603 | 209 |
| Total assets | 5101 | 4339 |
| LIABILITIES |  |  |
| Loans and other borrowings | (475) | (381) |
| Amounts due to related parties | (3) | (1) |
| Tax payable | (4) | – |
| Total current liabilities | (482) | (382) |
| Loans and other borrowings | (1133) | (1469) |
| Tax payable | – | (2) |
| Derivative financial instruments | – | (14) |
| Total non-current liabilities | (1133) | (1485) |
| Total liabilities | (1615) | (1867) |
| Net assets | 3486 | 2472 |
| EQUITY |  |  |
| Called up share capital | 44 | 43 |
| Share premium account | 101 | 94 |
| Currency translation reserve | (85) | (250) |
| Other reserves | 812 | 759 |
| Retained earnings | 2614 | 1826 |
| Total equity | 3486 | 2472 |

---

---

| | | |
|:---|:---|:---|
| 290 | IHG | Annual Report and Form 20-F 2025 |

---

Schedule 1: Condensed Parent Company financial information continued<br>

**Condensed statement of cash flows of the Parent Company**

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
| For the year ended 31 December 2025 | $m | $m | $m |
| Profit for the year | 1955 | 725 | 1844 |
| Adjustments for: |  |  |  |
| Administrative expenses funded by subsidiaries | 2 | 2 | 2 |
| Net financial expenses | 83 | 51 | 47 |
| Dividend income from subsidiary undertaking | (2015) | (762) | (1877) |
| Income tax credit | (25) | (16) | (16) |
| Total adjustments | (1955) | (725) | (1844) |
| Changes in amounts due from related parties: operating activities | 16 | 7 | 9 |
| Cash flow from operations | 16 | 7 | 9 |
| Interest received | 3 | 30 | 29 |
| Interest paid | (94) | (84) | (74) |
| Net cash from operating activities | (75) | (47) | (36) |
| Cash flow from investing activities |  |  |  |
| Dividend received from subsidiary undertaking | 2015 | 762 | 1877 |
| Changes in amounts due from related parties: investing activities | (380) | 930 | (824) |
| Net cash from investing activities | 1635 | 1692 | 1053 |
| Cash flow from financing activities |  |  |  |
| Repurchase of shares, including taxes and transaction costs | (897) | (804) | (790) |
| Dividends paid to shareholders | (270) | (259) | (245) |
| Repayment of long-term bonds | (403) | (547) | – |
| Settlement of currency swaps | – | (45) | – |
| Changes in amounts due from related parties: financing activities | 10 | 10 | 18 |
| Net cash from financing activities | (1560) | (1645) | (1017) |
| Net movement in cash and cash equivalents in the year |  |  |  |
| Cash and cash equivalents at beginning of the year | – | – | – |
| Exchange rate effects | – | – | – |
| Cash and cash equivalents at end of the year | – | – | – |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 291 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

**Contingencies of the Parent Company**

The following UK subsidiaries will take advantage of the audit exemption set out within Section 479A of the Companies Act 2006

for the year ended 31 December 2025:

---

| | |
|:---|:---|
| Company name | Company number |
| Asia Pacific Holdings Limited | 3941780 |
| Gem Brand Company Limited | 16147706 |
| Hotel InterContinental London (Holdings) Limited | 6451128 |
| Hotel Inter-Continental London Limited | 1036984 |
| IHC May Fair Hotel Limited | 2323039 |
| IHC Overseas (U.K.) Limited | 2322038 |
| IHG PS Nominees Limited | 7092523 |
| InterContinental (PB) 1 | 6724223 |
| InterContinental (PB) 3 Limited | 6947603 |
| SC Leisure Group Limited | 658907 |
| Six Continents Holdings Limited | 3211009 |
| Six Continents Hotels International Limited | 722401 |
| Six Continents Investments Limited | 694156 |
| Six Continents Overseas Holdings Limited | 2661055 |

---

The Company will guarantee all outstanding liabilities of the above UK subsidiary undertakings as at the balance sheet date

in accordance with Section 479C of the Companies Act 2006. The Company has assessed the probability of loss under the

guarantees as remote.

As at 31 December 2025, 2024 and 2023 the Company had provided guarantees in respect of certain borrowings of subsidiaries,

the carrying values of which are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | 2025 | 2024 | 2023 |
| Description | Maturity date | $m | $m | $m |
| €600m 4.375% bonds 2029 | 28 November 2029 | 705 | 623 | 663 |
| €850m 3.375% bonds 2030 | 10 September 2030 | 1000 | – | – |
| €750m 3.625% bonds 2031 | 27 September 2031 | 885 | 784 | – |
|  |  | 2590 | 1407 | 663 |

---

**Maturity profile of borrowings of the Parent Company**

The principal values to be repaid on maturity are shown below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | 2026 | 2027 | 2028 |
| Description | Maturity date | $m | $m | $m |
| £350m 2.125% bonds 2026 | 24 August 2026 | 471 | – | – |
| €500m 2.125% bonds 2027 | 15 May 2027 | – | 587 | – |
| £400m 3.375% bonds 2028 | 8 October 2028 | – | – | 538 |
|  |  | 471 | 587 | 538 |

---

---

| | | |
|:---|:---|:---|
| 292 | IHG | Annual Report and Form 20-F 2025 |

---

Exhibits<br>

The following exhibits are filed as part of this Annual Report on Form 20-F with the SEC, and are publicly available through the

SEC's website.

---

| | |
|:---|:---|
| **+** | Visit [sec.gov](sec.gov) and search InterContinental Hotels Group PLC under Company Filings. |

---

---

| | |
|:---|:---|
| <u>[Exhibit 1(a)](https://www.sec.gov/Archives/edgar/data/858446/000119312525037543/d867363dex1.htm)</u><sup>a</sup> | Articles of Association of the Company dated 3 May 2024 (incorporated by reference to Exhibit 1 of the <br>InterContinental Hotels Group PLC Annual Report on Form 20-F (File No. 1-10409) dated 27 February 2025)<br>|
| <u>[Exhibit 2(d)](ex-2dpdffinal.htm)</u> | Description of Securities Registered Under Section 12 of the Exchange Act |
| <u>[Exhibit 4(a)(i)](https://www.sec.gov/Archives/edgar/data/858446/000119312525037543/d867363dex4ai.htm)</u><sup>a</sup> | Amended and restated trust deed dated 19 September 2024 relating to a £4 billion Euro Medium Term <br>Note Programme, among InterContinental Hotels Group PLC, IHG Finance LLC, Six Continents Limited, <br>InterContinental Hotels Limited and U.S. Bank Trustees Limited (incorporated by reference to Exhibit 4(a)(i) <br>of the InterContinental Hotels Group PLC Annual Report on Form 20-F (File No. 1-10409) dated 27 February 2025)<br>|
| <u>[Exhibit 4(a)(ii)](ex-4aiipdffinal1.htm)</u> | $1.5 billion bank facility agreement dated 4 December 2025, among InterContinental Hotels Group PLC <br>and certain subsidiaries, and Bank of America, N.A., London Branch; Bank of China Limited, London Branch; <br>Barclays Bank PLC; BNP Paribas S.A.; Commerzbank Aktiengesellschaft, London Branch; DBS Bank Ltd., <br>London Branch; MUFG Bank, Ltd.; Standard Chartered Bank; Truist Bank; U.S. Bank National Association; <br>UniCredit Bank GmbH; and Wells Fargo Bank, N.A. London Branch<br>|
| <u>[Exhibit 4(c)(i)](https://www.sec.gov/Archives/edgar/data/858446/000119312524051757/d518031dex4ci.htm)</u><sup>a</sup> | Michael Glover's service contract dated 12 December 2022, commenced on 20 March 2023 <br>(incorporated by reference to Exhibit 4(c)(i) of the InterContinental Hotels Group PLC Annual Report <br>on Form 20-F (File No. 1-10409) dated 29 February 2024)<br>|
| <u>[Exhibit 4(c)(ii)](https://www.sec.gov/Archives/edgar/data/858446/000119312521068584/d52499dex4cii.htm)</u><sup>a</sup> | Rules of the InterContinental Hotels Group Long Term Incentive Plan as approved by shareholders <br>on 2 May 2014 and as amended on 14 February 2019, 4 December 2019 and 7 May 2020 (incorporated <br>by reference to Exhibit 4(c)(ii) of the InterContinental Hotels Group PLC Annual Report on Form 20-F <br>(File No. 1-10409) dated 4 March 2021)<br>|
| <u>[Exhibit 4(c)(iii)](https://www.sec.gov/Archives/edgar/data/858446/000119312521068584/d52499dex4ciii.htm)</u><sup>a</sup> | Rules of the InterContinental Hotels Group Annual Performance Plan as amended (incorporated by <br>reference to Exhibit 4(c)(iii) of the InterContinental Hotels Group PLC Annual Report on Form 20-F <br>(File No. 1-10409) dated 4 March 2021)<br>|
| <u>[Exhibit 4(c)(iv)](https://www.sec.gov/Archives/edgar/data/858446/000119312524051757/d518031dex4civ.htm)</u><sup>a</sup> | Elie Maalouf's service contract dated 4 May 2023, commenced on 1 July 2023 (incorporated by reference <br>to Exhibit 4(c)(iv) of the InterContinental Hotels Group PLC Annual Report on Form 20-F (File No. 1-10409) <br>dated 29 February 2024)<br>|
| <u>[Exhibit 4(c)(v)](ex4cvpdffinal.htm)</u> | Rules of the InterContinental Hotels Group Deferred Award Plan as approved by shareholders on <br>5 May 2023 and as amended on 18 October 2023 and 11 February 2026<br>|
| <u>[Exhibit 4(c)(vi)](https://www.sec.gov/Archives/edgar/data/858446/000119312525037543/d867363dex4cvi.htm)</u><sup>a</sup> | Rules of the InterContinental Hotels Group Annual Performance Plan as approved by the Remuneration <br>Committee on 30 November 2023 (incorporated by reference to Exhibit 4(c)(vi) of the InterContinental <br>Hotels Group PLC Annual Report on Form 20-F (File No. 1-10409) dated 27 February 2025)<br>|
| <u>[Exhibit 8](#ic91c88ca5dce45958d82f6834f4c9050_18019)</u> | List of subsidiaries as at 31 December 2025 (can be found on pages 237 to 240) |
| <u>[Exhibit 11.1](https://www.sec.gov/Archives/edgar/data/858446/000119312525037543/d867363dex111.htm)</u><sup>a</sup> | Code of Practice for dealing in InterContinental Hotels Group PLC Securities (incorporated by reference <br>to Exhibit 11.1 of the InterContinental Hotels Group PLC Annual Report on Form 20-F (File No. 1-10409) <br>dated 27 February 2025)<br>|
| <u>[Exhibit 12(a)](exhibits12a1.htm)</u> | Certification of Elie Maalouf filed pursuant to 17 CFR 240.13a–14(a) |
| <u>[Exhibit 12(b)](exhibits12b1.htm)</u> | Certification of Michael Glover filed pursuant to 17 CFR 240.13a–14(a) |
| <u>[Exhibit 13(a)](exhibits13a.htm)</u> | Certification of Elie Maalouf and Michael Glover furnished pursuant to 17 CFR 240.13a–14(b) <br>and 18 U.S.C.1350<br>|
| <u>[Exhibit 15(a)](exhibit15a.htm)</u> | Consent of independent registered public accounting firm, PricewaterhouseCoopers LLP |
| <u>[Exhibit 97](https://www.sec.gov/Archives/edgar/data/858446/000119312524051757/d518031dex97.htm)</u><sup>a</sup> | Incentive-Based Compensation Recovery Policy approved on 18 October 2023 (incorporated by reference <br>to Exhibit 97 of the InterContinental Hotels Group PLC Annual Report on Form 20-F (File No. 1-10409) <br>dated 29 February 2024)<br>|
| Exhibit 101.INS | Inline XBRL Instance Document |
| Exhibit 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| Exhibit 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| Exhibit 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| Exhibit 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| Exhibit 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |

---

a.Incorporated by reference.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 293 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

Forward-looking statements<br>

The Annual Report and Form 20-F

2025 contains certain forward-looking

statements as defined under US

legislation (Section 21E of the Securities

Exchange Act of 1934) with respect

to the financial condition, results of

operations and business of the Group

and certain plans and objectives of the

Board of Directors of InterContinental

Hotels Group PLC with respect thereto.

Such statements include, but are not

limited to, statements made in the

Chair's statement, the Chief Executive

Officer's review and the Strategic

Report. These forward-looking

statements can be identified by the fact

that they do not relate only to historical

or current facts. Forward-looking

statements often use words such as

'anticipate', 'target', 'expect', 'estimate',

'intend', 'plan', 'goal', 'believe', or other

words of similar meaning. These

statements are based on assumptions

and assessments made by the Group's

management in light of their experience

and their perception of historical trends,

current conditions, expected future

developments and other factors they

believe to be appropriate.

By their nature, forward-looking

statements are inherently predictive,

speculative and involve risk and

uncertainty. There are a number of

factors that could cause actual results

and developments to differ materially

from those expressed in, or implied by,

such forward-looking statements,

including, but not limited to: the Group's

exposure to a competitive and changing

industry; the Group's reliance on the

reputation of its existing brands and

exposure to inherent reputation risks;

the Group's exposure to inherent

uncertainties associated with brand

development and expansion; the

Group's reliance on the ongoing appeal

of its loyalty programme; the Group's

exposure to a variety of risks related

to identifying, securing and retaining

franchise and management agreements;

the Group's exposure to the risks of

hotel industry overcapacity; the Group's

requirement to have the right people,

skills and capability to manage growth

and change; the risk that the Group's

collective bargaining activity could

disrupt operations, increase labour

costs or interfere with the ability of

management to focus on executing

business strategies; the Group's

exposure to cybersecurity and data

privacy risks; the Group's exposure to

intellectual property risks; the risk that

the Group's reputation and the value

of its brands are influenced by the

perception of various stakeholders of

the Group; the Group's requirements

to comply with existing and changing

regulations and act in accordance with

societal expectations across numerous

countries, territories and jurisdictions;

the Group's exposure to the risk of

litigation; the potential for domestic and

international environmental laws and

regulations to cause the Group to incur

substantial costs or subject the Group to

potential liabilities; the Group's financial

performance being affected by changes

in tax laws; the Group's dependence on

a wide range of external stakeholders

and business partners; the Group's

exposure to a variety of risks associated

with safety, security and crisis

management; the Group's reliance on

the resilience of its reservation system

and other key technology platforms and

the exposure to risks that could disrupt

their operation and/or integrity; the

Group's exposure to political and

economic developments; the Group's

exposure to continued disruption and

consequences from the war in Ukraine;

the Group's exposure to disruption and

consequences from the conflict in the

Middle East; the potential for the Group

to face difficulties insuring its business;

the Group's exposure to risks related

to executing and realising benefits

from strategic transactions, including

acquisitions and restructuring; the

Group's exposure to a variety of risks

associated with its financial stability

and ability to borrow; the dependence

of the Group's operations on maintaining

sufficient liquidity to meet all foreseeable

medium-term requirements and

provide headroom against unforeseen

obligations; the Group's exposure to an

impairment of the carrying value of its

brands, goodwill or other tangible and

intangible assets negatively affecting

its consolidated operating results;

the Group's exposure to fluctuations in

exchange rates, currency devaluations

or restructurings and to interest rate risk

in relation to its borrowings; the potential

for the Group to be affected by credit

risk on treasury transactions and loans

to owners; the Group's exposure to

inherent risks in relation to changing

technology and systems; the various

operational, compliance and

reputational risks that the Group's

integration of AI technologies into its

processes and systems may introduce;

the Group's exposure to competition

from online travel agents and

intermediaries; the Group's exposure

to the risk of events or stakeholder

expectations that adversely impact

domestic or international travel, including

climate change; the Group's exposure

to climate change and sustainability risks;

and the Group's exposure to risks

relating to its commitments in relation

to climate change.

The main factors that could affect

the business and financial results are

described in the Strategic Report of

the Annual Report and Form 20-F 2025.

---

| | | |
|:---|:---|:---|
| 294 | IHG | Annual Report and Form 20-F 2025 |

---

Form 20-F cross-reference guide<br>

The table below references information in this document that will be included in the Company's Annual Report on Form 20-F

for 2025 filed with the SEC.

---

| | | | |
|:---|:---|:---|:---|
| Item | Form 20-F caption | Location in this document | Page |
| 1 | Identity of Directors, senior <br>management and advisers<br>| Not applicable | – |
| 2 | Offer statistics and <br>expected timetable<br>| Not applicable | – |
| 3 | Key information |  |  |
| 3 | 3A – Selected financial data | Shareholder information: Dividend history | 286 |
| 3 | 3B – Capitalisation and <br>indebtedness<br>| Not applicable | – |
| 3 | 3C – Reason for the offer <br>and use of proceeds<br>| Not applicable | – |
| 3 | 3D – Risk factors | Group information: Risk factors | 264–271 |
| 4 | Information on the Company |  |  |
| 4 | 4A – History and development <br>of the Company | Group information: History and developments | 264 |
| 4 | 4A – History and development <br>of the Company | Shareholder information: Return of funds | 285 |
| 4 | 4A – History and development <br>of the Company | Useful information: Contacts | 302 |
| 4 | 4B – Business overview | Strategic Report | 4–114 |
| 4 | 4B – Business overview | Group information: Working Time Regulations 1998 | 277 |
| 4 | 4B – Business overview | Group Information: Risk factors | 264–271 |
| 4 | 4B – Business overview | Directors' Report: Business relationships with suppliers, <br>customers and others<br>| 262 |
| 4 | 4C – Organisational structure | Strategic Report: Our culture | 56–61 |
| 4 | 4C – Organisational structure | Group Financial Statements: Note 32 – Group companies | 237–240 |
| 4 | 4C – Organisational structure | Group Information: History and developments | 264 |
| 4 | 4D – Property, plant <br>and equipment | Strategic Report: Key performance indicators | 40–43 |
| 4 | 4D – Property, plant <br>and equipment | Strategic Report: Greenhouse gas (GHG) emissions | 82–83 |
| 4 | 4D – Property, plant <br>and equipment | Group Financial Statements: Note 12 – Property, plant and equipment | 210 |
| 4A | Unresolved staff comments |  | – |
| 5 | Operating and financial <br>review and prospects<br>|  |  |
|  | 5A – Operating results | Strategic Report: Key performance indicators | 40–43 |
|  | 5A – Operating results | Strategic Report: Performance | 86–112 |
|  | 5A – Operating results | Group Financial Statements: Accounting policies | 183–194 |
|  | 5A – Operating results | Group Financial Statements: New accounting standards | 194 |
|  | 5A – Operating results | Viability statement | 113–114 |
|  | 5B – Liquidity and capital <br>resources | Strategic Report: Our Business Model – Capital allocation <br>and dividend policy<br>| 26–27 |
|  | 5B – Liquidity and capital <br>resources | Viability statement | 113–114 |
|  | 5B – Liquidity and capital <br>resources | Strategic Report: Performance – Sources of liquidity | 90 |
|  | 5B – Liquidity and capital <br>resources | Group Financial Statements: Note 17 – Cash and cash equivalents | 215–216 |
|  | 5B – Liquidity and capital <br>resources | Group Financial Statements: Note 21 – Loans and other borrowings | 218 |
|  | 5B – Liquidity and capital <br>resources | Group Financial Statements: Note 23 – Financial risk management <br>and derivative financial instruments<br>| 220–224 |
|  | 5B – Liquidity and capital <br>resources | Group Financial Statements: Note 24 – Classification and measurement <br>of financial instruments<br>| 224–226 |
|  | 5B – Liquidity and capital <br>resources | Group Financial Statements: Note 25 – Reconciliation of (loss)/profit for <br>the year to cash flow from operations before contract acquisition costs<br>| 227 |
|  | 5B – Liquidity and capital <br>resources | Additional Information: Forward-looking statements | 293 |
|  | 5C – Research and development; <br>intellectual property<br>| Not applicable | – |
|  | 5D – Trend information | Strategic Report: Performance | 86–112 |
|  | 5D – Trend information | Strategic Report: Trends shaping our industry | 22–23 |
|  | 5E – Critical accounting estimates | Group Financial Statements: Critical accounting policies | 183, 244 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 295 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| Item | Form 20-F caption | Location in this document | Page |
| 5 | Non-GAAP financial measures | Strategic Report: Performance | 86–112 |
| 5 | Non-GAAP financial measures | Other financial information | 250–259 |
| 5 | Non-GAAP financial measures | Group Financial Statements: Note 22 – Net debt | 219–220 |
| 6 | Directors, senior management <br>and employees<br>|  |  |
| 6 | 6A – Directors and <br>senior management<br>| Governance: Our Board of Directors and Our Executive Committee <br>(excluding the information under the heading 'Information on Directors <br>and Executive Committee Members' on page 121)<br>| 118–121 |
| 6 | 6B – Compensation | Directors' Remuneration Report | 138–161 |
| 6 | 6B – Compensation | Directors' Remuneration Policy | 148–161 |
| 6 | 6B – Compensation | Group Financial Statements: Note 26 – Retirement benefits | 228–230 |
| 6 | 6B – Compensation | Group Financial Statements: Note 30 – Related party disclosures | 235 |
| 6 | 6B – Compensation | Group Financial Statements: Note 27 – Share-based payments | 231–232 |
| 6 | 6C – Board practices | Governance structure and Board activities | 122–125 |
| 6 | 6C – Board practices | Executive Directors' benefits upon termination of office | 273 |
| 6 | 6D – Employees | Group Financial Statements: Note 4 – Staff costs <br>and Directors' remuneration<br>| 199–200 |
| 6 | 6D – Employees | Group information: Working Time Regulations 1998 | 277 |
| 6 | 6D – Employees | Directors' Report: Employees and Code of Conduct | 261–262 |
| 6 | 6E – Share ownership | Directors' Remuneration Report: Annual Report on Directors' <br>remuneration – Scheme interests awarded during 2025<br>| 151–152 |
| 6 | 6E – Share ownership | Directors' Remuneration Report: Annual Report on Directors' <br>remuneration – Shares and awards held by Executive Directors <br>at 31 December 2025: number of shares<br>| 153 |
| 6 | 6E – Share ownership | Group Financial Statements: Note 27 – Share-based payments | 231–232 |
| 6 | 6E – Share ownership | Group information: Directors' and Executive Committee <br>members' shareholdings<br>| 273 |
| 6 | 6F – Disclosure of a registrant's <br>action to recover erroneously <br>awarded compensation<br>| Not applicable | – |
| 7 | Major shareholders and related <br>party transactions<br>|  |  |
| 7 | 7A – Major shareholders | Directors' Report: Major institutional shareholders | 260 |
| 7 | 7A – Major shareholders | Shareholder information: Shareholder profiles | 287 |
| 7 | 7B – Related party transactions | Group Financial Statements: Note 14 – Investment in associates <br>and joint ventures<br>| 213 |
| 7 | 7B – Related party transactions | Group Financial Statements: Note 30 – Related party disclosures | 235 |
| 7 | 7C – Interests of experts and <br>counsel<br>| Not applicable | – |
| 8 | Financial Information |  |  |
| 8 | 8A – Consolidated statements and <br>other financial information | Directors' Report: Dividends | 260 |
| 8 | 8A – Consolidated statements and <br>other financial information | Group Financial Statements | 176–182 |
| 8 | 8A – Consolidated statements and <br>other financial information | Group information: Legal proceedings | 279 |
| 8 | 8A – Consolidated statements and <br>other financial information | Other financial information | 250–259 |
| 8 | 8B – Significant changes | Not applicable | – |
| 9 | The offer and listing |  |  |
| 9 | 9A – Offer and listing details | Useful information: Trading markets | 300 |
| 9 | 9B – Plan of distribution | Not applicable | – |
| 9 | 9C – Markets | Useful information: Trading markets | 300 |
| 9 | 9D – Selling shareholders | Not applicable | – |
| 9 | 9E – Dilution | Not applicable | – |
| 9 | 9F – Expenses of the issue | Not applicable | – |
| 10 | Additional information |  |  |
|  | 10A – Share capital | Not applicable | – |
|  | 10B – Memorandum and articles <br>of association | Group information: Articles of Association | 275–276 |
|  | 10B – Memorandum and articles <br>of association | Group information: Rights attaching to shares | 275–276 |
|  | 10C – Material contracts | Group information: Material contracts | 277–278 |

---

---

| | | |
|:---|:---|:---|
| 296 | IHG | Annual Report and Form 20-F 2025 |

---

Form 20-F cross-reference guide continued<br>

---

| | | | |
|:---|:---|:---|:---|
| Item | Form 20-F caption | Location in this document | Page |
| 10 | 10D – Exchange controls | Group information: Exchange controls and restrictions on payment <br>of dividends<br>| 278 |
|  | 10E – Taxation | Shareholder information: Taxation | 280–282 |
|  | 10F – Dividends and paying agents | Not applicable | – |
|  | 10G – Statement by experts | Not applicable | – |
|  | 10H – Documents on display | Useful information: Investor information – Documents on display | 300 |
|  | 10I – Subsidiary information | Not applicable | – |
| 11 | Quantitative and qualitative <br>disclosures about market risk<br>| Group Financial Statements: Note 23 – Financial risk management <br>and derivative financial instruments<br>| 220–224 |
| 12 | Description of securities other <br>than equity securities<br>|  |  |
| 12 | 12A – Debt securities | Not applicable | – |
| 12 | 12B – Warrants and rights | Not applicable | – |
| 12 | 12C – Other securities | Not applicable | – |
| 12 | 12D – American depositary shares | Group information: Description of securities other than equity securities | 274 |
| 12 | 12D – American depositary shares | Additional Information: Investor information | 300 |
| 12 | 12D – American depositary shares | Additional Information: Contacts | 302 |
| 13 | Defaults, dividend arrearages <br>and delinquencies<br>| Not applicable | – |
| 14 | Material modifications to the <br>rights of security holders and use <br>of proceeds<br>| Not applicable | – |
| 15 | Controls and procedures | Shareholder information: Disclosure controls and procedures | 283 |
| 15 | Controls and procedures | Statement of Directors' Responsibilities: Management's report <br>on internal control over financial reporting<br>| 165 |
| 15 | Controls and procedures | Independent Auditor's US Report | 174–175 |
| 16 | 16A – Audit committee <br>financial expert | Governance: Audit Committee Report | 128–133 |
| 16 | 16A – Audit committee <br>financial expert | Shareholder information: Summary of significant corporate <br>governance differences from NYSE listing standards – Committees<br>| 284 |
| 16 | 16B – Code of ethics | Directors' Report: Code of Conduct | 262 |
| 16 | 16B – Code of ethics | Strategic Report: Our culture | 56–61 |
| 16 | 16B – Code of ethics | Shareholder information: Summary of significant corporate <br>governance differences from NYSE listing standards<br>| 284 |
| 16 | 16C – Principal accountant <br>fees and services | Governance: Audit Committee Report – External auditor | 131 |
| 16 | 16C – Principal accountant <br>fees and services | Governance: Audit Committee Report – Non-audit services | 130 |
| 16 | 16C – Principal accountant <br>fees and services | Group Financial Statements: Note 5 – Auditor's remuneration | 200 |
| 16 | 16D – Exemptions from the listing <br>standards for audit committees<br>| Not applicable | – |
| 16 | 16E – Purchase of equity <br>securities by the issuer and <br>affiliated purchasers<br>| Shareholder information: Purchases of equity securities by the <br>Company and affiliated purchasers<br>| 286 |
| 16 | 16F – Change in registrant's <br>certifying accountant<br>| Not applicable | – |
| 16 | 16G – Corporate Governance | Shareholder information: Summary of significant corporate <br>governance differences from NYSE listing standards<br>| 284 |
| 16 | 16H – Mine safety disclosure | Not applicable | – |
| 16 | 16I – Disclosure regarding foreign <br>jurisdictions that prevent inspections<br>| Not applicable | – |
| 16 | 16J – Insider trading policies | Additional Information: Insider trading policy | 283 |
| 16 | 16K – Cybersecurity | Additional Information: Cybersecurity | 272–273 |
| 17 | Financial statements | Group Financial Statements<br>Schedule 1: Parent Company condensed financial information<br>| 176–182<br>288–291<br>|
| 18 | Financial statements | Group Financial Statements<br>Schedule 1: Parent Company condensed financial information<br>| 176–182<br>288–291<br>|
| 19 | Exhibits | Additional Information: Exhibits | 292 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 297 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

Glossary<br>

**ADR**

an American Depositary Receipt,

being a receipt evidencing title

to an ADS.

**ADR Depositary**<br>

J.P. Morgan Chase Bank N.A.

**ADS**<br>

an American Depositary Share

as evidenced by an ADR, being a

registered negotiable security, listed

on the New York Stock Exchange,

representing one ordinary share of

20 <sup>340</sup>⁄399 pence each of the Company.

**AGM**<br>

Annual General Meeting.

**AI**<br>

Artificial Intelligence

**APP**<br>

Annual Performance Plan.

**Average daily rate**<br>

rooms revenue divided by the

number of room nights sold.

**Capital expenditure**<br>

purchases of property, plant and

equipment, intangible assets, associate

and joint venture investments, and

other financial assets, plus contract

acquisition costs (key money).

**Captive**<br>

the Group's captive insurance company,

SCH Insurance Company.

**Code**<br>

IHG's Code of Conduct.

**Colleague**<br>

individuals who work at IHG corporate

offices, reservation centres, owned &

leased and franchised hotels collectively.

**Companies Act**<br>

the UK Companies Act 2006,

as amended from time to time.

**Company or Parent Company**<br>

InterContinental Hotels Group PLC.

**Comparable RevPAR**<br>

a comparison for a grouping of

hotels that have traded in all months

in financial years being compared.

Principally excludes new hotels, hotels

closed for major refurbishment and

hotels sold in either of the two years.

**Compound Annual Growth Rate** 

**(CAGR)**

growth over a period of years

expressed as the constant rate of

growth that would produce the same

growth if compounded annually.

**Constant currency**<br>

a prior-year value translated using the

current year's average exchange rates.

**Currency swap**<br>

an exchange of a deposit and a borrowing,

each denominated in a different currency,

for an agreed period of time.

**DAP**<br>

Deferred Award Plan.

**Deferred Compensation Plan or DCP**<br>

a US plan that allows for the additional

provision for retirement within a dedicated

trust, either through employee deferral

of salary with matching company

contributions, deferral of APP earnings or

through direct company contribution.

**Derivatives**<br>

financial instruments used to reduce risk,

the price of which is derived from an

underlying asset, index or rate.

**EMEAA**<br>

Europe, Middle East, Asia and Africa

(excludes Greater China).

**Employee engagement survey**<br>

our employee engagement survey,

known as the Colleague HeartBeat,

completed by colleagues in corporate

and reservation offices and owned &

leased or managed hotels.

**Enterprise contribution to revenue**<br>

the percentage of room revenue booked

through IHG-managed channels and

sources: direct via our websites, apps

and call centres; through our interfaces

with Global Distribution Systems (GDS)

and agreements with Online Travel

Agencies (OTAs); other distribution

partners directly connected to our

reservation system; and Global Sales

Office business or IHG One Rewards

members that book directly at a hotel.

**ERG**

employee resource group.

**Executive officers**<br>

defined by the SEC as the president,

any vice president in charge of a

principal business unit, division or

function (such as sales, administration

or finance), any officer who performs

a policy making function, or any other

person who performs similar policy

making functions.

**F&B**<br>

Food and Beverage

**Fee business**<br>

IHG's franchised and managed

businesses combined.

**FERA**<br>

fuel- and energy-related emissions.

**Franchised hotels**<br>

hotels operated under an IHG brand

license by a franchisee. IHG receives

a fixed percentage of rooms revenue

and neither owns, leases nor operates

the property.

**Franchisee**<br>

an owner who uses a brand under

licence from IHG.

**FRC**<br>

UK Financial Reporting Council.

**Group or IHG**<br>

the Company and its subsidiaries.

**Guest Love**<br>

IHG's guest satisfaction measurement

tool used to measure brand preference

and guest satisfaction.

**Guest Reservation System or GRS**<br>

our global electronic guest

reservation system.

---

| | | |
|:---|:---|:---|
| 298 | IHG | Annual Report and Form 20-F 2025 |

---

Glossary continued<br>

**Hedging**

the reduction of risk, normally in

relation to foreign currency or interest

rate movements, by making offsetting

commitments.

**Hotel revenue**<br>

revenue from all revenue-generating

activity undertaken by owned & leased

hotels, including room nights, food

and beverage sales.

**IASB**<br>

International Accounting

Standards Board.

**IFRS**<br>

International Financial Reporting

Standards as issued by the IASB

and adopted under UK law.

**IHG PLC**<br>

InterContinental Hotels Group PLC.

**International Sustainability** <br>**Standards Board (ISSB)**<br>

formed by the IFRS to create

sustainability-related disclosure

standards that provide investors with

consistent and comparable information

about companies' sustainability-related

risks and opportunities.

**Journey to Tomorrow**<br>

IHG's responsible business plan

to create positive change by 2030.

**Liquidated damages**<br>

payments received in respect of the

early termination of franchise and

management agreements.

**Listing Rules**<br>

regulations subject to the oversight

of the Financial Conduct Authority,

which set out the obligations of UK

listed companies.

**Lives Improved**<br>

Lives improved is defined as a direct

beneficiary under the Business for

Societal Impact (B4SI) framework,

a recognised standard for measuring

corporate community impact. The

cumulative lives improved figure is the

sum of the annual totals since 2021.

**LTIP**

Long Term Incentive Plan.

**Managed hotels**<br>

hotels operated by IHG under a

management agreement on behalf

of the hotel owner. IHG generates

revenue through a fixed percentage

of the total hotel revenue and a

proportion of hotel profit, and neither

leases nor owns the property.

**Management agreement**<br>

a contract to operate a hotel on behalf

of the hotel owner.

**Market capitalisation**<br>

the value attributed to a listed company

by multiplying its share price by the

number of shares in issue.

**Net rooms supply**<br>

net total number of IHG System

hotel rooms.

**NYSE**<br>

New York Stock Exchange.

**Occupancy rate**<br>

rooms occupied by hotel guests,

expressed as a percentage of rooms

that are available.

**Ordinary share**<br>

ordinary shares of 20 <sup>340</sup>⁄399 pence

each in the Company.

**Owned & leased**<br>

hotels operated by IHG where IHG is,

or effectively acts as, the owner, with

responsibility for assets, employees

and running costs. The entire revenue

and profit of the hotels are recorded

in IHG's financial statements.

**Owner**<br>

the owner of a hotel property.

**Pipeline**<br>

hotels/rooms due to enter the IHG

System at a future date. A hotel enters

the pipeline once a contract has been

signed and appropriate fees paid.

**% pts**

a percentage point is the unit

for the arithmetic difference of

two percentages.

**Reimbursable revenues**<br>

reimbursements from managed and

franchised hotels for costs incurred

by IHG, for example the cost of IHG

employees working in managed hotels.

The related revenues and costs are

presented gross in the Group income

statement and there is no impact

to profit.

**Revenue management**<br>

the employment of pricing and segment

strategies to optimise the revenue

generated from the sale of room nights.

**RevPAR or Revenue per available room**<br>

rooms revenue divided by the number

of room nights that are available (can be

mathematically derived from occupancy

rate multiplied by average daily rate).

**Revolving Credit Facility or RCF**<br>

the Group's syndicated bank

revolving credit facility.

**Room count**<br>

number of rooms franchised,

owned & leased by IHG.

**Rooms revenue**<br>

revenue generated from the sale

of room nights.

**Royalties**<br>

fees, based on rooms revenue,

that a franchisee pays to the Group.

**Saudi Arabia**<br>

Kingdom of Saudi Arabia

**Science-based targets (SBTs)**<br>

measurable, actionable and time-bound

carbon reduction targets, based on

the best available science and in line

with the scale of reductions required

to keep global warming below 2°C

or 1.5°C from pre-industrial levels.

**Science Based Targets initiative (SBTi)**<br>

helps businesses commit to and meet

SBTs by independently assessing and

approving any targets that are set.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 299 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

**SEC**

US Securities and Exchange

Commission.

**Subsidiary**<br>

a company over which the Group

exercises control.

**System**<br>

hotels/rooms operating under franchise

and management agreements together

with IHG owned & leased hotels/rooms,

globally (the IHG System) or on a

regional basis, as the context requires.

**System Fund or Fund**<br>

The System Fund, including associated

funds, comprises assessment fees

and contributions collected from

hotels within the IHG System which

fund hotel services and activities that

drive revenue to our hotels including

marketing, the IHG One Rewards

loyalty programme and our distribution

channels, as well as fees collected

from hotels for programmes relating

to certain hotel services.

**Task Force on Climate-related** <br>**Financial Disclosures (TCFD)**<br>

to improve and increase reporting

of climate-related financial information

and to help inform investors and others

about the risks they face related to

climate change.

**Total Shareholder Return or TSR**

the theoretical growth in value of a

shareholding over a period, by reference

to the beginning and ending share price,

and assuming that dividends, including

special dividends, are reinvested to

purchase additional units of the equity.

**UAE**<br>

United Arab Emirates

**UK Corporate Governance Code**<br>

a Code issued in 2024 by the Financial

Reporting Council in the UK, which

guides best practice for the governance

of listed companies.

**Working capital**<br>

the sum of inventories, receivables and

payables of a trading nature, excluding

financing and taxation items.

---

| | |
|:---|:---|
| **+** | For the definitions of our Key performance <br>measures (including Non-GAAP measures) <br>see pages 107 to 112. |
|  | For the definitions of our Key performance <br>measures (including Non-GAAP measures) <br>see pages 107 to 112. |
|  | For the definitions of our Key performance <br>measures (including Non-GAAP measures) <br>see pages 107 to 112. |

---

---

| | | |
|:---|:---|:---|
| 300 | IHG | Annual Report and Form 20-F 2025 |

---

Useful information<br>

**Investor information**

**Website and electronic** <br>**communication**<br>

As part of IHG's commitment to reduce

the cost and environmental impact

of producing and distributing printed

documents in large quantities, this

Annual Report and Form 20-F 2025 has

been made available to shareholders

through our website at **[ihgplc.com/](ihgplc.com/investors)**

**[investors](ihgplc.com/investors)** under Annual Report.

Shareholders may electronically appoint

a proxy to vote on their behalf at the

2026 AGM. Shareholders who hold their

shares through CREST may appoint

proxies through the CREST electronic

proxy appointment service, by using

the procedures described in the

CREST Manual.

**Shareholder hotel discount**<br>

IHG offers discounted hotel stays

(subject to availability) for registered

shareholders only, through a controlled-

access website. This is not available to

shareholders who hold shares through

nominee companies, ISAs or ADRs.

For further details please contact

the Company Secretary's office

(see page 302).

**Responsible Business Report**<br>

In line with our commitment to responsible

business practices, this year we have

incorporated our Responsible Business

Report within this Annual Report, outlining

our approach to responsible business

and our progress against our Responsible

Business Targets.

---

| | |
|:---|:---|
| **+** | Visit [ihgplc.com/responsible-business](ihgplc.com/responsible-business) <br>for further information. |
|  | Visit [ihgplc.com/responsible-business](ihgplc.com/responsible-business) <br>for further information. |

---

**Modern Slavery Statement**

In accordance with the UK Modern

Slavery Act 2015, we have produced

a Modern Slavery Statement.

---

| | |
|:---|:---|
| **+** | Visit [ihgplc.com/reporting](ihgplc.com/reporting) <br>for further information. |
|  | Visit [ihgplc.com/reporting](ihgplc.com/reporting) <br>for further information. |

---

**Registrar**<br>

For information on a range of

shareholder services, including enquiries

concerning individual shareholdings,

notification of a shareholder's change

of address and amalgamation of

shareholder accounts (in order to

avoid duplicate mailing of shareholder

communications), shareholders should

contact the Company's Registrar,

Equiniti, on +44 (0) 371 384 2030<sup>a</sup>.

**Dividend services**

**Dividend Reinvestment Plan (DRIP)**

The Company offers a DRIP for

shareholders to purchase additional

IHG shares with their cash dividends.

For further information about the DRIP,

please contact our Registrar helpline

on +44 (0) 371 384 2030<sup>a</sup>.

---

| | |
|:---|:---|
| **+** | Visit [shareview.co.uk/info/drip](shareview.co.uk/info/drip) for a DRIP <br>application form and information booklet. |
|  | Visit [shareview.co.uk/info/drip](shareview.co.uk/info/drip) for a DRIP <br>application form and information booklet. |

---

**Bank mandate**

We encourage shareholders to have

their dividends paid directly into their

UK bank or building society accounts,

to ensure efficient payment and clearance

of funds on the payment date. For

further information, please contact

our Registrar (see page 302).

**Overseas payment service**

It is also possible for shareholders

to have their dividends paid directly to

their bank accounts in a local currency.

Charges are payable for this service.

---

| | |
|:---|:---|
| **+** | Visit [shareview.co.uk/info/ops](shareview.co.uk/info/ops) <br>for further information. |
|  | Visit [shareview.co.uk/info/ops](shareview.co.uk/info/ops) <br>for further information. |

---

**Out-of-date/unclaimed dividends**

If you think that you have out-of-date

dividend cheques or unclaimed dividend

payments, please contact our Registrar

(see page 302).

**Individual Savings Account (ISA)**<br>

Equiniti offers a Stocks and Shares ISA

that can invest in IHG shares.

For further information, please contact

Equiniti on +44 (0) 371 384 2030<sup>a</sup>.

**Share-dealing services**<br>

Equiniti offers the following

share-dealing facilities:

**Postal dealing**

+44 (0) 371 384 2030

from the UK and overseas<sup>a</sup>

**Telephone dealing**

For more information,

call +44 (0) 371 384 2030<sup>a</sup>

**Internet dealing**

Visit **[shareview.co.uk](shareview.co.uk)** for

more information.

**Changes to the base cost** <br>**of IHG shares**<br>

Details of all the changes to the base

cost of IHG shares held from April 2004

to January 2019, for UK Capital Gains

Tax purposes, may be found on

our website at **[ihgplc.com/investors](ihgplc.com/investors)** 

under Shareholder centre in the Tax

information section.

**Shareholder security**

Many companies have become

aware that their shareholders have

received unsolicited telephone calls or

correspondence concerning investment

matters. These are typically from

'brokers' who target UK shareholders,

offering to sell them what often turn out

to be worthless or high-risk shares in

US or UK investments. These operations

are commonly known as 'boiler rooms'.

More detailed information on this

or similar activity can be found at

**[fca.org.uk/consumers](fca.org.uk/consumers)** on the Financial

Conduct Authority website.

Details of any share dealing facilities

that the Company endorses will be

included in Company mailings.

**Trading markets**<br>

The principal trading market for the

Company's ordinary shares is the London

Stock Exchange (LSE). The ordinary

shares are also listed on the NYSE, trading

in the form of ADSs evidenced by ADRs.

Each ADS represents one ordinary share.

The Company has a sponsored ADR

facility with J.P. Morgan Chase Bank,

N.A., as ADR Depositary.

**American Depositary Receipts (ADRs)**<br>

The Company's shares are listed

on the NYSE in the form of American

Depositary Shares, evidenced by ADRs

and traded under the symbol 'IHG'.

Each ADR represents one ordinary share.

All enquiries regarding ADR holder

accounts and payment of dividends

should be directed to J.P. Morgan Chase

Bank, N.A., our ADR Depositary bank

(contact details shown on page 302).

**Documents on display**<br>

Documents referred to in this Annual

Report and Form 20-F that are filed

with the SEC can be found at the SEC's

public reference room located at 100 F

Street, NE Washington, DC 20549. For

further information and copy charges

please call the SEC at 1-800-SEC-0330.

The SEC maintains a website that

contains reports, proxy and information

statements, and other information

regarding issuers that file electronically

and the Company's SEC filings since

22 May 2002 are also publicly available

through the SEC's website at **[sec.gov](sec.gov)** 

Copies of the Company's Articles of

Association can be obtained via the

website at **[ihgplc.com/investors](ihgplc.com/investors)** under

Corporate governance or from the

Company's registered office on request.

a.Lines are open from 08:30 to 17:30 Monday to Friday, excluding UK public holidays.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** | Annual Report and Form 20-F 2025 | IHG | 301 |
| [Strategic](#i8de52f7da8cb42fcba7bb475e53ba9b6_7)<br>[Report](#i8de52f7da8cb42fcba7bb475e53ba9b6_7) | [Governance](#i8de52f7da8cb42fcba7bb475e53ba9b6_148) | [Group Financial](#i8de52f7da8cb42fcba7bb475e53ba9b6_205)<br>[Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_205) | [Parent Company](#i8de52f7da8cb42fcba7bb475e53ba9b6_343)<br>[Financial Statements](#i8de52f7da8cb42fcba7bb475e53ba9b6_343) | **[Additional](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)**<br>**[Information](#i8de52f7da8cb42fcba7bb475e53ba9b6_388)** |  |  |  |

---

**Financial calendar – Dividends**

---

| | |
|:---|:---|
|  | 2025 |
| 2025 Interim dividend |  |
| Ex-dividend date – Ordinary shares | 21 August |
| Ex-dividend date – ADRs | 22 August |
| Record date | 22 August |
| Payment date | 2 October |
|  | 2026 |
| 2025 Final dividend of 125.9¢ per ordinary share<sup>a</sup> |  |
| Ex-dividend date – Ordinary shares | 9 April |
| Ex-dividend date – ADRs | 10 April |
| Record date | 10 April |
| Payment date | 14 May |

---

a.The sterling amount of the final dividend will be announced on 27 April 2026 using the average of the daily exchange rates for the three working days

commencing 22 April 2026.

**Financial calendar – Other dates**

---

| | |
|:---|:---|
|  | 2025 |
| Financial year end | 31 December |
|  | 2026 |
| Announcement of Preliminary Results for 2025 | 17 February |
| Announcement of 2026 First Quarter Trading Update | 7 May |
| Annual General Meeting | 7 May |
| Announcement of Half-Year Results for 2026 | 11 August |
| Announcement of 2026 Third Quarter Trading Update | 22 October |
| Financial year end | 31 December |
|  | 2027 |
| Announcement of Preliminary Results for 2026 | February |

---

---

| | | |
|:---|:---|:---|
| 302 | IHG | Annual Report and Form 20-F 2025 |

---

Contacts<br>

**Registered office**

IHG Hotels & Resorts,

1 Windsor Dials,

Arthur Road,

Windsor, SL4 1RS,

United Kingdom

Telephone:

+44 (0) 1753 972 000

**[ihgplc.com](ihgplc.com)**

For general information about the

Group's business, please contact

the Corporate Affairs department

at the above address. For all other

enquiries, please contact the

Company Secretary's office at

the above address.

**Registrar**<br>

Equiniti, Aspect House,

Spencer Road, Lancing,

West Sussex,

BN99 6DA,

United Kingdom

Telephone:

+44 (0) 345 607 6838

**[shareview.co.uk](shareview.co.uk)**

b.+ Denotes international access code.

00 or 011 in most countries.

a.Toll charges apply.

b.Universal international freephone number.

c.International calling rates may apply.

**ADR Depositary**

JPMorgan Chase Bank, N.A.

270 Park Avenue, Floor 8

New York, NY 10017

Attn: Depositary Receipts Group

United States of America

Telephone:

+1 800 990 1135 (US Calls) (Toll-free)

+1 651 453 2128 (non-US Calls)

**Auditor**<br>

PricewaterhouseCoopers LLP

**Investment bankers**<br>

BofA Securities

Goldman Sachs

**Solicitors**

Freshfields LLP

**Stockbrokers**<br>

BofA Securities

**IHG® One Rewards**

If you wish to enquire about, or join,

IHG Rewards, visit **[ihg.com/onerewards](ihg.com/onerewards)** 

or telephone:

**EMEAA**

+800 2222 7172<sup>b</sup>

(Austria, Belgium, Denmark,

Finland, France, Germany, Hungary,

Ireland, Israel, Italy, Luxembourg,

Netherlands, Norway, Portugal,

Spain, Sweden, Switzerland and UK)

+44 1950 499004<sup>c</sup>

(all other countries/regions

in Europe and Africa)

+973 6 500 9 296<sup>a</sup>(Middle East)

+800 2222 7172<sup>b</sup>

(Australia, Japan, Korea, Malaysia,

New Zealand, Philippines,

Singapore and Thailand)

+632 8857 8788<sup>c</sup>

(all other countries/regions

in Asia Pacific)

**Americas**

+1 888 211 9874 (US and Canada)

+1 800 272 9273<sup>c</sup> (Mexico)

+1 801 975 3013<sup>c</sup> (Spanish)

(Central and South America)

+1 801 975 3063<sup>c</sup> (English)

(Central and South America)

**Greater China**

800 830 1128<sup>a</sup> or 021 20334848<sup>a</sup>

(Mainland China)

800 965 222 (Hong Kong)

0800 738 (Macau)

0800 149 1963 (Taiwan)

---

| | |
|:---|:---|
| ![Credits_ry_logo.jpg](ihg-20251231_g301.jpg) | Designed and produced <br>by Radley Yeldar <br>**[ry.com](ry.com)**<br>|

---

Printed by Park Communications, a Carbon Neutral Company, on FSC® certified paper.

![fccqr_EN_B_13766-2602-1004 (1).gif](ihg-20251231_g302.gif)

Park works to the EMAS standard and its Environmental Management System is certified to ISO 14001.

This publication has been manufactured using 100% offshore wind electricity sourced from UK wind.

100% of the inks used are vegetable oil based, 95% of press chemicals are recycled for further use and,

on average 99% of any waste associated with this production will be recycled and the remaining 1%

used to generate energy.

This document is printed on Revive 100 Silk, a white triple coated sheet that is manufactured from

FSC® Recycled certified fibre derived from 100% pre- and post-consumer wastepaper containing

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The FSC® label on this product ensures responsible use of the world's forest resources.

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Back cover image:

Hotel Indigo Jabal Akhdar Resort & Spa,

Al Jabal Al Akhdar, Oman.

![OBC_main image.jpg](ihg-20251231_g306.jpg)

**InterContinental Hotels Group PLC**

1 Windsor Dials

Arthur Road

Windsor

Berkshire SL4 1RS

Switchboard +44 (0) 1753 972000

**Make a booking at [ihg.com](ihg.com)**

## Ex-2.D

![](ex-2dpdffinal001.jpg)

Exhibit 2(d) DESCRIPTION OF SECURITIES REGISTERED UNDER SECTION 12 OF THE EXCHANGE ACT As of December 31, 2025, InterContinental Hotels Group PLC (the "Company" or "IHG") had the following series of securities registered pursuant to Section 12(b) of the Act: Title of each class Ticker symbol Name of each exchange on which registered American Depositary Shares IHG New York Stock Exchange Ordinary Shares of 20340/399 pence each IHG New York Stock Exchange\* \* Not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission. Capitalized terms used but not defined herein have the meanings given to them in the Company's annual report on Form 20-F for the fiscal year ended December 31, 2025. ORDINARY SHARES The following is a summary of the material terms of the ordinary shares of nominal value of 20340/399, as set forth in our Articles of Association and the material provisions of U.K. law. This description is a summary and does not purport to be complete. You are encouraged to read our Articles of Association, which are filed as an exhibit to the Group's Annual Report on Form 20-F for the fiscal year ended December 31, 2024, incorporated by reference into this document. Share Capital The Company's issued share capital at December 31, 2025 consisted of 157,126,590 ordinary shares of 20340/399 pence each, including 5,481,782 shares held in treasury, which constituted 3.49% of the total issued share capital (including treasury shares). There are no special control rights or restrictions on share transfers or limitations on the holding of any class of shares. During 2025, 760,000 shares were transferred from treasury to the employee share ownership trust. As far as is known to management, IHG is not directly or indirectly owned or controlled by another company or by any government. The Board focuses on shareholder value-creation. When it decides to return capital to shareholders, it considers all of its options, including share buybacks and special dividends. Trading Markets The principal trading market for the Company's ordinary shares is the London Stock Exchange (LSE). The ordinary shares are also listed on the NYSE, trading in the form of ADSs evidenced by ADRs. Each ADS represents one ordinary share. The Company has a sponsored ADR facility with J.P. Morgan Chase Bank, N.A. as ADR Depositary. Rights Attaching to Ordinary Shares Dividend Rights and Rights to Share in the Company's Profits Under English law, dividends are payable on the Company's ordinary shares only out of profits available for distribution, as determined in accordance with accounting principles generally accepted in the UK and by the Companies Act. No dividend will bear interest as against the Company. Holders of the Company's ordinary shares are entitled to receive such dividends as may be declared by the shareholders in general meeting, rateably according to the amounts paid up on such shares, provided that the dividend cannot exceed the amount recommended by the Directors.

------

![](ex-2dpdffinal002.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;The Company's Board of Directors may declare and pay to shareholders such interim dividends as appear to them to be justified by the Company's financial position. If authorised by an ordinary resolution of the shareholders, the Board of Directors may also direct payment of a dividend in whole or in part by the distribution of specific assets (and in particular of paid-up shares or debentures of any other company). Any dividend unclaimed by a member (or by a person entitled by virtue of transmission on death or bankruptcy or otherwise by operation of law) after six years from the date the dividend was declared, or became due for payment, will be forfeited and will revert to the Company. Voting Rights The holders of ordinary shares are entitled, in respect of their holdings of such shares, to receive notice of general meetings and to attend, speak and vote at such meetings in accordance with the Articles. Voting at any general meeting of shareholders is by a show of hands unless a poll, which is a written vote, is duly demanded. On a show of hands, every shareholder who is present in person or by proxy at a general meeting has one vote regardless of the number of shares held. Resolutions put to the members at electronic general meetings shall be voted on by a poll, which poll votes may be cast by such electronic means as the Board in its sole discretion deems appropriate for the purposes of the meeting. On a poll, every shareholder who is present in person or by proxy has one vote for every share held by that shareholder. A poll may be demanded by any of the following: • The Chair of the meeting; • At least five shareholders present in person or by proxy and entitled to vote at the meeting; • Any shareholder or shareholders present in person or by proxy representing in the aggregate not less than one-tenth of the total voting rights of all shareholders entitled to vote at the meeting; or • Any shareholder or shareholders present in person or by proxy holding shares conferring a right to vote at the meeting and on which there have been paid up sums in the aggregate at least equal to one-tenth of the total sum paid up on all the shares conferring that right. A proxy form will be treated as giving the proxy the authority to demand a poll, or to join others in demanding one. The necessary quorum for a general meeting is two persons carrying a right to vote upon the business to be transacted, whether present in person or by proxy. Matters are transacted at general meetings of the Company by the proposing and passing of resolutions, of which there are two kinds: • An ordinary resolution, which includes resolutions for the election of Directors, the approval of financial statements, the cumulative annual payment of dividends, the appointment of the Auditor, the increase of share capital or the grant of authority to allot shares. • A special resolution, which includes resolutions amending the Articles, disapplying statutory pre-emption rights, modifying the rights of any class of the Company's shares at a meeting of the holders of such class or relating to certain matters concerning the Company's winding up or changing the Company's name. An ordinary resolution requires the affirmative vote of a majority of the votes of those persons present and entitled to vote at a meeting at which there is a quorum. Special resolutions require the affirmative vote of not less than three quarters of the persons present and entitled to vote at a meeting at which there is a quorum. AGMs must be convened upon advance written notice of 21 days. Other meetings must be convened upon advance written notice of 14 days. The days of delivery or receipt of the notice are not included. The notice must specify the nature of the business to be transacted. The Board of Directors may, if they choose, make arrangements

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for shareholders, who are unable to attend the place of the meeting, to participate at other places. The Articles also allow for shareholders to attend and participate in shareholder meetings by electronic means. Variation of Rights If, at any time, the Company's share capital is divided into different classes of shares, the rights attached to any class may be varied, subject to the provisions of the Companies Act, with the consent in writing of holders of three-quarters in nominal value of the issued shares of that class or upon the adoption of a special resolution passed at a separate meeting of the holders of the shares of that class. At every such separate meeting, all of the provisions of the Articles relating to proceedings at a general meeting apply, except that the quorum is to be the number of persons (which must be two or more) who hold or represent by proxy not less than one-third in nominal value of the issued shares of that class. Rights in a Winding-Up Except as the Company's shareholders have agreed or may otherwise agree, upon the Company's winding up, the balance of assets available for distribution is to be distributed among the holders of ordinary shares according to the amounts paid up on the shares held by them: • After the payment of all creditors including certain preferential creditors, whether statutorily preferred creditors or normal creditors; and • Subject to any special rights attaching to any class of shares. This distribution is generally to be made in cash. A liquidator may, however, upon the adoption of a special resolution of the shareholders, divide among the shareholders the whole or any part of the Company's assets in kind. Limitations on Voting and Shareholding There are no limitations imposed by English law or the Articles on the right of non-residents or foreign persons to hold or vote the Company's ordinary shares, other than the limitations that would generally apply to all of the Company's shareholders. Exchange controls and restrictions on payment of dividends Other than economic sanctions which may be in force in the UK from time to time, there are no restrictions under the Articles or under English law that limit the right of non-resident or foreign owners to hold or vote the ordinary shares or the ADSs. In addition, the Articles contain certain limitations on the voting and other rights of any holder of ordinary shares whose holding may, in the opinion of the Directors, result in the loss or failure to secure the reinstatement of any licence or franchise from any US governmental agency held by Six Continents Hotels, Inc. or any subsidiary thereof. Share Awards and Grants to Employees Our current policy is to settle awards or grants under the Company's share plans with shares purchased in the market or from shares held in treasury; however, the Company continues to review this policy. The Company's share plans incorporate limits on dilution which provide that commitments to issue new shares or re-issue treasury shares under executive plans should not exceed 5%, and under all plans should not exceed 10%, of the issued ordinary share capital of the Company (adjusted for share issuance and cancellation) in any 10-year period. As at December 31, 2025, no options were outstanding. The Company has not utilised the authority given by shareholders at any of its AGMs to allot shares for cash without first offering such shares to existing shareholders. Employee Share Ownership Trust (ESOT) IHG operates an ESOT for the benefit of employees and former employees. The ESOT receives treasury shares from the Company and purchases ordinary shares in the market and releases them to current and former employees in satisfaction of share awards.

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&nbsp;&nbsp;&nbsp;&nbsp;Certain shares that have been allocated to share plan participants under the Annual Performance Plan (APP) are held in a nominee account on behalf of those participants by Computershare Investors Plc (Nominee). The shares held by the Nominee have been allocated to share plan participants on terms that entitle those participants to request or require the Nominee to exercise the voting rights relating to those shares. The Nominee shall exercise those votes in accordance with the directions of the participants. Shares that have not been allocated to share plan participants under such terms continue to be held by the ESOT and the trustee may vote or abstain from exercising their voting rights in relation to those shares, or accept or reject any offer relating to the shares, in any way it sees fit. As at 31 December 2025, the Nominee held 178,309 ordinary shares in the Company, in the form of unvested share plan awards, allocated to APP participants. Unless otherwise requested by the Company, the trustee of the ESOT waives all ordinary dividends on the shares held in the ESOT, other than shares which have been allocated to participants on terms which entitle them to the benefit of dividends, except for such amount per share as shall, when multiplied by the number of shares held by it on the relevant date, equal one pence or less. AMERICAN DEPOSITARY SHARES The following is a summary of the general terms and provisions of the Second Amended and Restated Deposit Agreement (the "Deposit Agreement") under which the Depositary will deliver the American Depositary Shares ("ADSs"). The Deposit Agreement is among us, J.P. Morgan Chase Bank, N.A., as Depositary, and all registered holders and beneficial owners from time to time of ADSs issued under it. This summary does not purport to be complete. You should read the Amended and Restated Deposit Agreement, which we have filed with the SEC as an exhibit to the Form F-6 filed on November 4, 2021. You may also read the Deposit Agreement at the corporate trust offices of J.P. Morgan Chase Bank, N.A. The principal executive office of the Depositary and its corporate trust office is currently located at J.P. Morgan Depositary Receipts, 383 Madison Avenue, Floor 11, New York, NY 10179, United States. American Depositary Shares The Company's ordinary shares are listed on the NYSE in the form of ADSs, evidenced by American Depositary Receipts ("ADRs") and traded under the symbol 'IHG'. Each ADR represents one ordinary share. Voting Rights The Deposit Agreement has granted certain indirect rights to vote to the ADR holders. ADR holders may not attend the Company's general meetings in person. ADR holders exercise their voting rights by instructing the Depositary to exercise the voting rights attached to the registered ordinary shares underlying the ADRs. The Depositary exercises the voting rights for registered ordinary shares underlying ADRs for which no voting instructions have been given by providing a discretionary proxy to an uninstructed independent designee pursuant to paragraph 12 of the form of ADR. The same voting restrictions apply to ADR holders as to those holding ordinary shares of the Company (i.e., the application of the United Kingdom Disclosure and Transparency Rules with regard to the notification to the Company of certain interests in the Company). As soon as practicable after receipt from the Company of notice of any meeting or solicitation of consents or proxies of holders of ordinary shares or other deposited securities, the Depositary will distribute to holders a notice stating (a) such information as is contained in such notice and any solicitation materials, (b) that each holder on the record date set by the Depositary therefor will, subject to any provisions of United Kingdom law, be entitled to instruct the Depositary as to the exercise of the voting rights, if any, pertaining to the deposited securities represented by the ADSs evidenced by such holder's ADRs and (c) the manner in which such instructions may be given, including instructions to give a discretionary proxy to a person designated by the Company. Upon actual receipt by the ADR department of the Depositary of instructions of a holder on such record date in the manner and on or before the time established by the Depositary for such purpose, the Depositary will endeavor insofar as practicable and permitted under the provisions of or governing deposited securities to vote or cause to be voted the

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deposited securities represented by the ADSs evidenced by such holder's ADRs in accordance with such instructions. The Depositary will not itself exercise any voting discretion in respect of any deposited securities. To the extent such instructions are not so received by the Depositary from any holder, the Depositary shall deem such holder to have so instructed the Depositary to give a discretionary proxy to a person designated by the Company and the Depositary shall endeavor insofar as practicable and permitted under the provisions of or governing deposited securities to give a discretionary proxy to a person designated by the Company to vote the deposited securities represented by the ADSs evidenced by such holder's ADRs as to which such instructions are so given, provided that no such instruction shall be deemed given and no discretionary proxy shall be given with respect to any matter (a) as to which the Company informs the Depositary (and the Company agrees to provide such information promptly in writing) that (i) the Company does not wish such proxy given, (ii) substantial opposition exists or (iii) materially affects the rights of holders of ordinary shares and (b) unless, with respect to such meeting, the Depositary has been provided with an opinion of counsel to the Company, in form and substance satisfactory to the Depositary, to the effect that (i) the granting of such discretionary proxy does not subject the Depositary to any reporting obligations in the United Kingdom, (ii) the granting of such proxy will not result in a violation of United Kingdom law, rule, regulation or permit, (iii) the voting arrangement and deemed instruction as contemplated herein will be given effect under United Kingdom law, and (iv) the granting of such discretionary proxy will not under any circumstances result in the ordinary shares represented by the ADSs being treated as assets of the Depositary under United Kingdom law. The Depositary may, but is not obligated to, require a certification by the Company as to the non- existence of the circumstances described in (a)(ii) and (a)(iii) above and shall incur no liability in connection with any matter related to such deemed instruction or the failure to provide such deemed instruction. Share Dividends and Other Distributions Subject to paragraphs 4 and 5 of the form ADR, to the extent practicable, the Depositary will distribute to each ADR holder entitled thereto on the record date set by the Depositary therefor at such ADR holder's address shown on the ADR Register, in proportion to the number of deposited securities (on which the following distributions on deposited securities are received by the custodian) represented by ADSs evidenced by such holder's ADRs: (a) Cash: Any US dollars available to the Depositary resulting from a cash dividend or other cash distribution or the net proceeds of sales of any other distribution or portion thereof authorized in paragraph 10 ("Cash") of the form of ADR, on an averaged or other practicable basis, subject to (i) appropriate adjustments for taxes withheld, (ii) such distribution being impermissible or impracticable with respect to certain holders, and (iii) deduction of the Depositary's and/or its agents' fees and expenses in (1) converting any foreign currency to US dollars by sale or in such other manner as the Depositary may determine to the extent that it determines that such conversion may be made on a reasonable basis, (2) transferring foreign currency or US dollars to the US by such means as the Depositary may determine to the extent that it determines that such transfer may be made on a reasonable basis, (3) obtaining any approval or license of any governmental authority required for such conversion or transfer, which is obtainable at a reasonable cost and within a reasonable time and (4) making any sale by public or private means in any commercially reasonable manner. (b) Shares. (i) Additional ADRs evidencing whole ADSs representing any ordinary shares available to the Depositary resulting from a dividend or free distribution on deposited securities consisting of ordinary shares (a "Share Distribution") and (ii) US dollars available to it resulting from the net proceeds of sales of ordinary shares received in a Share Distribution, which ordinary shares would give rise to fractional ADSs if additional ADRs were issued therefor, as in the case of Cash. (c) Rights. (i) Warrants or other instruments in the discretion of the Depositary representing rights to acquire additional ADRs in respect of any rights to subscribe for additional ordinary shares or rights of any nature available to the Depositary as a result of a distribution on deposited securities ("Rights"), to the extent that the Company timely furnishes to the Depositary evidence satisfactory to the Depositary that the Depositary may lawfully distribute the same (the Company has no obligation to so furnish such evidence), or (ii) to the extent the Company does not so furnish such evidence and sales of Rights are practicable, any US dollars available to the Depositary from the net proceeds of sales of Rights as in the case of Cash, or (iii) to the extent the Company does not so furnish such evidence and such sales cannot practicably be accomplished by reason of the non-transferability of the Rights, limited markets therefor, their short duration or otherwise, nothing (and any Rights may lapse).

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(d) Other Distributions. (i) Securities or property available to the Depositary resulting from any distribution on deposited securities other than Cash, Share Distributions and Rights ("Other Distributions"), by any means that the Depositary may deem equitable and practicable, or (ii) to the extent the Depositary deems distribution of such securities or property not to be equitable and practicable, any US dollars available to the Depositary from the net proceeds of sales of Other Distributions as in the case of Cash. The Depositary will distribute US dollars by checks drawn on a bank in the US for whole dollars and cents (any fractional cents will be withheld without liability and dealt with by the Depositary in accordance with its then current practices), pursuant to paragraph 10 of the form of ADR. Deposit, Withdrawal and Cancellation Subject to paragraphs 4 and 5 of the form of ADR, upon surrender of (i) a certificated ADR in form satisfactory to the Depositary at the transfer office or (ii) proper instructions and documentation in the case of a Direct Registration ADR, the holder hereof is entitled to delivery, or to the extent in dematerialized form from, the custodian's office of the deposited securities at the time represented by the ADSs evidenced by this ADR. At the request, risk and expense of the holder, the Depositary may deliver such deposited securities at such other place as may have been requested by the holder. Notwithstanding any other provision of the deposit agreement or this ADR, the withdrawal of deposited securities may be restricted only for the reasons set forth in General Instruction I.A.(1) of Form F-6 (as such instructions may be amended from time to time) under the Securities Act of 1933. Reclassification, Recapitalizations and Mergers If the Company takes certain actions that affect the deposited securities, including (i) any change in par value, split-up, consolidation, cancellation or other reclassification of deposited securities, (ii) any Share Distribution or Other Distribution not distributed to holders or (iii) any cash, securities or property available to the Depositary in respect of the Deposited Securities from any recapitalization, reorganization, merger, consolidation, liquidation, receivership, bankruptcy or sale of all or substantially all the assets of the company, then the Depositary may choose to: (a) amend the applicable ADRs; (b) distribute additional or amended ADRs; and (c) distribute cash, securities or property on the record date set by the Depositary to reflect the transaction. Amendment and Termination The ADRs and the Deposit Agreement may be amended by the Company and the Depositary, provided that any amendment that imposes or increases any fees or charges (other than stock transfer or other taxes and other governmental charges, transfer or registration fees, cable, telex or facsimile transmission costs, delivery costs or other such expenses), or that shall otherwise prejudice any substantial existing right of holders, shall become effective 30 days after notice of such amendment shall have been given to the holders. Every holder of an ADR at the time any amendment to the Deposit Agreement so becomes effective shall be deemed, by continuing to hold such ADR, to consent and agree to such amendment and to be bound by the Deposit Agreement as amended thereby. The Depositary may, and shall at the written direction of the Company, terminate the Deposit Agreement and this ADR by mailing notice of such termination to the holders at least 30 days prior to the date fixed in such notice for such termination, subject to the provisions of paragraph 17 of the form ADR. After the date so fixed for termination, the Depositary and its agents will perform no further acts under the Deposit Agreement and this ADR, except to receive and hold (or sell) distributions on deposited securities and deliver deposited securities being withdrawn. As soon as practicable after the expiration of six months from the date so fixed for termination, the Depositary shall sell the deposited securities and shall thereafter (as long as it may lawfully do so) hold in a segregated account the net proceeds of such sales, together with any other cash then held by it under the Deposit Agreement, without liability for interest, in trust for the pro rata benefit of the holders of ADRs not theretofore surrendered. After making such sale, the Depositary shall be discharged from all obligations in respect of the Deposit Agreement and this ADR, except for its obligations to the Company under Section 16 of the Deposit Agreement and to account for such net proceeds and other cash. After the date so fixed for termination, the

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Company shall be discharged from all obligations under the Deposit Agreement except for its obligations to the Depositary and its agents. Limitation on Obligations and Liability to ADR Holders The Depositary, the Company, their agents and each of them shall: (a) incur no liability (i) if any present or future law, rule, fiat, order or decree of the United States, the United Kingdom or any other country, or of any governmental or regulatory authority or any securities exchange or market or automated quotation system, the provisions of or governing any deposited securities, any present or future provision of the Company's charter, any act of God, war, terrorism, nationalization or other circumstance beyond its control shall prevent or delay, or shall cause any of them to be subject to any civil or criminal penalty in connection with, any act which the Deposit Agreement or this ADR provides shall be done or performed by it or them (including, without limitation, voting pursuant to paragraph 12 of the form ADR), or (ii) by reason of any exercise or failure to exercise any discretion given it in the Deposit Agreement or the ADR (including, without limitation, any failure to determine that any distribution or action maybe lawful or reasonably practicable); (b) assume no liability except to perform its obligations to the extent they are specifically set forth in this ADR and the Deposit Agreement without gross negligence or willful misconduct; (c) in the case of the Depositary and its agents, be under no obligation to appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities or this ADR; (d) in the case of the Company and its agents hereunder be under no obligation to appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities or this ADR, which in its opinion may involve it in expense or liability, unless indemnity satisfactory to it against all expense (including fees and disbursements of counsel) and liability be furnished as often as may be required; or (d) not be liable for any action or inaction by it in reliance upon the advice of or information from legal counsel, accountants, any person presenting shares for deposit, any holder, or any other person believed by it to be competent to give such advice or information. The Depositary, its agents and the Company may rely and shall be protected in acting upon any written notice, request, direction, instruction or document believed by them to be genuine and to have been signed, presented or given by the proper party or parties. The Depositary shall be under no obligation to inform holders or any other holders of an interest in any ADSs about the requirements of English law, rules or regulations or any changes therein or thereto. The Depositary and its agents will not be responsible for any failure to carry out any instructions to vote any of the deposited securities, for the manner in which any such vote is cast or for the effect of any such vote. The Depositary and its agents may own and deal in any class of securities of the Company and its affiliates and in ADRs. The Company has agreed to indemnify the Depositary and its agents under certain circumstances and the Depositary and its agents have agreed to indemnify the Company under certain circumstances. No disclaimer of liability under the Securities Act is intended by any provision hereof. Books of Depositary The Depositary will keep books at its principal office for the registration and transfer of ADRs, which will be open for your inspection at all reasonable times. Such inspection shall be for the purpose of communicating with holders in the interest of the business of the Company or a matter relating to the Deposit Agreement. 7

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## Ex-4.Aii

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EUROPE-LEGAL-311309212 Exhibit 4(a)(ii) Freshfields LLP 100 Bishopsgate London EC2P 2SR DATED __4__ DECEMBER 2025 INTERCONTINENTAL HOTELS GROUP PLC AND CERTAIN OF ITS SUBSIDIARIES AS BORROWERS AND/OR GUARANTORS BANK OF AMERICA, N.A., LONDON BRANCH BANK OF CHINA LIMITED, LONDON BRANCH BARCLAYS BANK PLC BNP PARIBAS S.A. COMMERZBANK AKTIENGESELLSCHAFT, LONDON BRANCH DBS BANK LTD., LONDON BRANCH MUFG BANK, LTD. STANDARD CHARTERED BANK TRUIST BANK U.S. BANK NATIONAL ASSOCIATION UNICREDIT BANK GMBH WELLS FARGO BANK, N.A., LONDON BRANCH AS ORIGINAL LENDERS MUFG BANK, LTD. AS FACILITY AGENT MUFG BANK, LTD. AS DOCUMENTATION COORDINATOR AND BANK OF AMERICA EUROPE DESIGNATED ACTIVITY COMPANY BANK OF CHINA LIMITED, LONDON BRANCH BARCLAYS BANK PLC BNP PARIBAS S.A. COMMERZBANK AKTIENGESELLSCHAFT, LONDON BRANCH DBS BANK LTD., LONDON BRANCH MUFG BANK, LTD. STANDARD CHARTERED BANK TRUIST SECURITIES, INC. U.S. BANK NATIONAL ASSOCIATION UNICREDIT BANK GMBH WELLS FARGO BANK, N.A., LONDON BRANCH AS MANDATED LEAD ARRANGERS AND JOINT BOOKRUNNERS $1,500,000,000 FACILITY AGREEMENT Facility Agreement Execution version EUROPE-LEGAL-311309212 CONTENTS CLAUSE PAGE 1. DEFINITIONS AND INTERPRETATION ................................................. 1 2. THE FACILITY .............................................................................................. 29 3. PURPOSE ....................................................................................................... 32 4. CONDITIONS OF UTILISATION ............................................................ 33 5. UTILISATION ............................................................................................... 34 6. OPTIONAL CURRENCIES ......................................................................... 36 7. REPAYMENT ................................................................................................. 36 8. PREPAYMENT AND CANCELLATION .................................................... 40 9. INTEREST ..................................................................................................... 45 10. INTEREST PERIODS .................................................................................. 47 11. CHANGES TO THE CALCULATION OF INTEREST ........................... 48 12. FEES ............................................................................................................... 50 13. TAX GROSS-UP AND INDEMNITIES ................................................... 51 14. INCREASED COSTS .................................................................................. 66 15. OTHER INDEMNITIES .............................................................................. 68 16. MITIGATION BY THE LENDERS ............................................................ 69 17. COSTS AND EXPENSES ........................................................................... 69 18. GUARANTEE AND INDEMNITY .............................................................. 70 19. REPRESENTATIONS .................................................................................. 74 20. INFORMATION UNDERTAKINGS .......................................................... 79 21. GENERAL UNDERTAKINGS .................................................................... 82 22. EVENTS OF DEFAULT ............................................................................... 90 23. CHANGES TO THE LENDERS ................................................................. 94 24. CHANGES TO THE OBLIGORS ............................................................ 101 25. ROLE OF THE FACILITY AGENT AND THE ARRANGER .............. 103 26. CONDUCT OF BUSINESS BY THE FINANCE PARTIES ................ 111 27. SHARING AMONG THE FINANCE PARTIES .................................... 111 28. PAYMENT MECHANICS........................................................................... 113 29. SET-OFF ...................................................................................................... 118 30. NOTICES ..................................................................................................... 118

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EUROPE-LEGAL-311309212 24015400865-v5 -ii- US-3000-BF 31. CALCULATIONS AND CERTIFICATES ............................................... 121 32. PARTIAL INVALIDITY ............................................................................. 121 33. REMEDIES AND WAIVERS ................................................................... 122 34. AMENDMENTS AND WAIVERS ............................................................ 122 35. CONFIDENTIALITY .................................................................................. 129 36. CONFIDENTIALITY OF FUNDING RATES ........................................ 134 37. BAIL-IN ........................................................................................................ 136 38. PATRIOT ACT ............................................................................................ 138 39. WAIVER OF TRIAL BY JURY ................................................................. 138 40. COUNTERPARTS ....................................................................................... 139 41. GOVERNING LAW .................................................................................... 139 42. ENFORCEMENT ......................................................................................... 139 SCHEDULE 1 THE ORIGINAL LENDERS ...................................................... 142 SCHEDULE 2 CONDITIONS PRECEDENT .................................................... 143 PART A CONDITIONS PRECEDENT TO INITIAL UTILISATION ....................... 143 PART B CONDITIONS PRECEDENT REQUIRED TO BE DELIVERED BY AN ADDITIONAL OBLIGOR ............................................................................ 145 SCHEDULE 3 UTILISATION REQUEST ......................................................... 147 SCHEDULE 4 FORM OF TRANSFER CERTIFICATE ................................... 148 SCHEDULE 5 FORM OF ACCESSION LETTER ............................................ 152 SCHEDULE 6 FORM OF RESIGNATION LETTER ....................................... 153 SCHEDULE 7 SECURITY .................................................................................... 154 SCHEDULE 8 TIMETABLES ............................................................................... 156 SCHEDULE 9 FORM OF INCREASE CONFIRMATION .............................. 158 SCHEDULE 10 REFERENCE RATE TERMS ................................................... 162 PART A - DOLLARS ......................................................................................... 162 PART B - STERLING ........................................................................................ 165 PART C – EURO .............................................................................................. 169 SCHEDULE 11 DAILY NON-CUMULATIVE COMPOUNDED RFR RATE ............................................................................................................. 172 SCHEDULE 12 CUMULATIVE COMPOUNDED RFR RATE ....................... 174 EUROPE-LEGAL-311309212 1 THIS AGREEMENT is dated __4__ December 2025 BETWEEN: (1) INTERCONTINENTAL HOTELS GROUP PLC incorporated in England and Wales with registration number 05134420 (the Company); (2) SIX CONTINENTS LIMITED incorporated in England and Wales with registration number 913450, INTERCONTINENTAL HOTELS LIMITED incorporated in England and Wales with registration number 4551528, and IHG FINANCE LLC formed in the state of Delaware with state file number 7546892 (together with the Company, the Original Borrowers); (3) SIX CONTINENTS LIMITED incorporated in England and Wales with registration number 913450, INTERCONTINENTAL HOTELS LIMITED incorporated in England and Wales with registration number 4551528, and IHG FINANCE LLC formed in the state of Delaware with state file number 7546892 (together with the Company, the Original Guarantors); (4) BANK OF AMERICA EUROPE DESIGNATED ACTIVITY COMPANY, BANK OF CHINA LIMITED, LONDON BRANCH, BARCLAYS BANK PLC, BNP PARIBAS, LONDON BRANCH, COMMERZBANK AKTIENGESELLSCHAFT, LONDON BRANCH, DBS BANK LTD., LONDON BRANCH, MUFG BANK, LTD., STANDARD CHARTERED BANK, TRUIST SECURITIES, INC., U.S. BANK NATIONAL ASSOCIATION, UNICREDIT BANK GMBH, WELLS FARGO BANK, N.A., LONDON BRANCH as mandated lead arrangers and joint bookrunners (the Mandated Lead Arranger and Joint Bookrunner and, whether acting individually or together, the Arranger) and MUFG BANK, LTD. as documentation coordinator; (5) THE FINANCIAL INSTITUTIONS listed in Schedule 1 as lenders (the Original Lenders); and (6) MUFG BANK, LTD. as agent of the other Finance Parties (the Facility Agent). IT IS AGREED as follows: 1. Definitions and Interpretation 1.1 Definitions In this Agreement: Acceptable Bank means a bank or financial institution which has a rating for its long-term unsecured and non credit-enhanced debt obligations of A-1 or higher by Standard & Poor's Rating Services Limited

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EUROPE-LEGAL-311309212 2 or Fitch Ratings Ltd or P-1 or higher by Moody's or a comparable rating from an internationally recognised credit rating agency. Accession Letter means a document substantially in the form set out in Schedule 5 (Form of Accession Letter). Additional Borrower means a company which becomes an Additional Borrower in accordance with Clause 24 (Changes to the Obligors). Additional Business Day means any day specified as such in the applicable Reference Rate Terms. Additional Guarantor means a company which becomes an Additional Guarantor in accordance with Clause 24 (Changes to the Obligors). Additional Obligor means an Additional Borrower or an Additional Guarantor. Affiliate means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company. Agent's Spot Rate of Exchange means: (a) the Facility Agent's spot rate of exchange; or (b) (if the Facility Agent does not have an available spot rate of exchange) any other publicly available spot rate of exchange selected by the Facility Agent (acting reasonably), for the purchase of the relevant currency with the Base Currency in the London foreign exchange market at or about 11:00 a.m. on a particular day. Applicable Accounting Principles means those accounting principles, standards and practices on which the preparation of the Original Financial Statements was based and those accounting policies which were used in the preparation of those financial statements. Authorisation means an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration. Anti-Bribery and Corruption Law means any applicable law or regulation prohibiting bribery or corruption, including, as amended from time to time, (i) the U.S. Foreign Corrupt Practices Act of 1977, (ii) the UK Bribery Act 2010 and (iii) any law, rule, regulation or other legally binding measure of any jurisdiction that implements the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. Availability Period means the period from and including the date of this Agreement to and including the date one Month before the Termination Date. EUROPE-LEGAL-311309212 3 Available Commitment means a Lender's Commitment minus: (a) the Base Currency Amount of its participation in any outstanding Loans; and (b) in relation to any proposed Utilisation, the Base Currency Amount of its participation in any Loans that are due to be made on or before the proposed Utilisation Date, other than that Lender's participation in any Loans that are due to be repaid or prepaid on or before the proposed Utilisation Date. Automatic Acceleration Event has the meaning given to that term in Clause 22.13 (Automatic Acceleration). Available Facility means the aggregate for the time being of each Lender's Available Commitment. Base Currency or $ means US Dollars. Base Currency Amount means, in relation to a Loan, the amount specified in the Utilisation Request delivered by a Borrower for that Loan (or, if the amount requested is not denominated in the Base Currency, that amount converted into the Base Currency at the Agent's Spot Rate of Exchange on the date which is three Business Days before the Utilisation Date or, if later, on the date the Facility Agent receives the Utilisation Request) adjusted to reflect any repayment or prepayment or consolidation or division of the Loan. Basel III means: (a) the agreements on capital requirements, a leverage ratio and liquidity standards contained in "Basel III: A global regulatory framework for more resilient banks and banking systems", "Basel III: International framework for liquidity risk measurement, standards and monitoring" and "Guidance for national authorities operating the countercyclical capital buffer" published by the Basel Committee on Banking Supervision on 16 December 2010, each as amended, supplemented or restated; (b) the rules for global systemically important banks contained in "Global systemically important banks: assessment methodology and the additional loss absorbency requirement – Rules text" published by the Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and (c) any further guidance or standards published by the Basel Committee on Banking Supervision relating to "Basel III". Beneficial Ownership Regulation means 31 C.F.R. § 1010.230. Blocking Law means:

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EUROPE-LEGAL-311309212 4 (a) Council Regulation (EC) No 2271/1996 of 22 November 1996, Commission Implementing Regulation (EU) No 2018/1101 of 3 August 2018, and/or any law or regulation implementing such Regulations in any member state of the European Union, each as amended from time to time; (b) Section 7 of the German Foreign Trade Regulation (Außenwirtschaftsverordnung); or (c) the Protecting against the Effects of the Extraterritorial Application of Third Country Legislation (Amendment) (EU Exit) Regulations 2020; and (d) any other applicable blocking or anti-boycott law or regulation. Borrower means an Original Borrower or an Additional Borrower, unless it has ceased to be a Borrower in accordance with Clause 24 (Changes to the Obligors). Break Costs means any amount specified as such in the applicable Reference Rate Terms. Business Day means a day (other than a Saturday or Sunday) on which banks are open for general business in London and: (a) (in relation to any date for payment, purchase or sale of a currency other than euro) the principal financial centre of the country of that currency; or (b) (in relation to any date for payment, purchase or sale of euro) any TARGET Day; and (c) (in relation to: (i) the fixing of an interest rate in relation to a Term Rate Loan; (ii) any date for payment or purchase of an amount relating to a Compounded Rate Loan; or (iii) the determination of the first day or the last day of an Interest Period for a Compounded Rate Loan, or otherwise in relation to the determination of the length of such an Interest Period), which is an Additional Business Day relating to that Loan or Unpaid Sum Central Bank Rate has the meaning given to that term in the applicable Reference Rate Terms. Central Bank Rate Adjustment has the meaning given to that term in the applicable Reference Rate Terms. EUROPE-LEGAL-311309212 5 Code means the US Internal Revenue Code of 1986 and the regulations promulgated and rulings issued thereunder. Commitment means: (a) in relation to an Original Lender, the amount in the Base Currency set opposite its name under the heading "Commitment" in Schedule 1 (The Original Lenders) and the amount of any other Commitment transferred to it under this Agreement or assumed by it in accordance with Clause 2.2 (Increase); and (b) in relation to any other Lender, the amount in the Base Currency of any Commitment transferred to it under this Agreement in accordance with Clause 2.2 (Increase) or Clause 23 (Changes to the Lenders), to the extent not cancelled, reduced or transferred by it under this Agreement. Commodity Exchange Act means the US Commodity Exchange Act (7 U.S.C. § 1 et seq.), and any successor statute. Compounded Rate Currency means any currency which is not a Term Rate Currency. Compounded Rate Interest Payment means the aggregate amount of interest that: (a) is, or is scheduled to become, payable under any Finance Document; and (b) relates to a Compounded Rate Loan. Compounded Rate Loan means any Loan or, if applicable, Unpaid Sum which is not a Term Rate Loan. Compounded Reference Rate means, in relation to any RFR Banking Day during the Interest Period of a Compounded Rate Loan, the percentage rate per annum which is the aggregate of: (a) the Daily Non-Cumulative Compounded RFR Rate for that RFR Banking Day; and (b) the applicable Credit Adjustment Spread. Compounding Methodology Supplement means, in relation to the Daily Non-Cumulative Compounded RFR Rate or the Cumulative Compounded RFR Rate, a document which: (a) is agreed in writing by the Company, the Facility Agent (in its own capacity) and the Facility Agent (acting on the instructions of the Majority Lenders); (b) specifies a calculation methodology for that rate; and

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EUROPE-LEGAL-311309212 6 (c) has been made available to the Company and each Finance Party. Confidential Information means all information relating to the Company, any Obligor, the Group, the Finance Documents or the Facility of which a Finance Party becomes aware in its capacity as, or for the purpose of becoming, a Finance Party or which is received by a Finance Party in relation to, or for the purpose of becoming a Finance Party under, the Finance Documents or the Facility from either: (a) any member of the Group or any of its advisers; or (b) another Finance Party, if the information was obtained by that Finance Party directly or indirectly from any member of the Group or any of its advisers, in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes: (i) information that: (A) is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of Clause 35 (Confidentiality); or (B) is identified in writing at the time of delivery as non- confidential by any member of the Group or any of its advisers; or (C) is known by that Finance Party before the date the information is disclosed to it in accordance with paragraphs (a) or (b) above or is lawfully obtained by that Finance Party after that date, from a source which is, as far as that Finance Party is aware, unconnected with the Group and which, in either case, as far as that Finance Party is aware, has not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality; and (ii) any Funding Rate. Confidentiality Undertaking means a confidentiality undertaking substantially in the form recommended by the LMA as at the date that the relevant confidentiality undertaking is entered into or in any other form agreed between the Company and the Facility Agent. Consolidated Gross Assets means the consolidated current assets plus consolidated non-current assets of the Group. EUROPE-LEGAL-311309212 7 Credit Adjustment Spread means, in relation to a Term Rate Loan in US dollars, the rate specified as such in the applicable Reference Rate Terms. Credit Rating means at any given time the long-term credit rating solicited by a member of the Group and assigned to the senior unsecured and unsubordinated debt of the Company by a Rating Agency. CTA 2009 means the Corporation Tax Act 2009. CTA 2010 means the Corporation Tax Act 2010. Cumulative Compounded RFR Rate means, in relation to an Interest Period for a Compounded Rate Loan, the percentage rate per annum determined by the Facility Agent (or by any other Finance Party which agrees to determine that rate in place of the Facility Agent) in accordance with the methodology set out in Schedule 12 (Cumulative Compounded RFR Rate) or in any relevant Compounding Methodology Supplement. Daily Non-Cumulative Compounded RFR Rate means, in relation to any RFR Banking Day during an Interest Period for a Compounded Rate Loan, the percentage rate per annum determined by the Facility Agent (or by any other Finance Party which agrees to determine that rate in place of the Facility Agent) in accordance with the methodology set out in Schedule 11 (Daily Non-Cumulative Compounded RFR Rate) or in any relevant Compounding Methodology Supplement. Daily Rate means the rate specified as such in the applicable Reference Rate Terms. Default means an Event of Default or any event or circumstance specified in Clause 22 (Events of Default) which would (with the expiry of a grace period and/or the giving of notice) be an Event of Default. Defaulting Lender means any Lender: (a) which has failed to make its participation in a Loan available or has notified the Facility Agent that it will not make its participation in a Loan available by the Utilisation Date of that Loan in accordance with Clause 5.4 (Lenders' participation); (b) which has otherwise rescinded or repudiated a Finance Document; or (c) with respect to which an Insolvency Event has occurred and is continuing, unless, in the case of paragraph (a) above: (i) its failure to pay is caused by: (A) administrative or technical error; or

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EUROPE-LEGAL-311309212 8 (B) a Disruption Event; and payment is made within five Business Days of its due date; or (ii) the Lender is disputing in good faith whether it is contractually obliged to make the payment in question. Disruption Event means either or both of: (a) a material disruption to those payment or communication systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Facility (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties; or (b) the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a Party preventing that, or any other Party: (i) from performing its payment obligations under the Finance Documents; or (ii) from communicating with other Parties in accordance with the terms of the Finance Documents, and which (in either such case) is not caused by, and is beyond the control of, the Party whose operations are disrupted. ERISA means, at any date, the US Employment Retirement Income Security Act of 1974 (or any successor statute thereto) as amended from time to time, and all regulations promulgated thereunder, all as the same may be in effect at such date. ERISA Affiliate means any trade or business (whether or not incorporated) for purposes of Title I and Title IV of ERISA and Section 412 of the Code that, together with any member of the Group, is treated as a single employer at any relevant time under Section 414(b) or (c) of the Code or Section 4001(b) of ERISA (or solely for the purposes of any requirement of or provision under the Code, Section 414(m) and (o) of the Code). ERISA Event means: (a) any "reportable event," as defined in Section 4043(c) of ERISA with respect to a Pension Plan (other than an event for which the 30-day notice period is waived); EUROPE-LEGAL-311309212 9 (b) the occurrence of a prohibited transaction with respect to a Pension Plan within the meaning of Section 406 of ERISA or Section 4975 of the Code for which an exemption is not available; (c) with respect to any Pension Plan, the failure to satisfy the minimum funding standards (within the meaning of Section 412 and 430 of the Code or Section 302 of ERISA), whether or not waived; (d) the filing of an application pursuant to Section 412(c) of the Code or Section 302 of ERISA for a waiver of the minimum funding standard with respect to any Pension Plan; (e) the existence of an Unfunded Pension Liability; (f) the filing under Section 412 of the Code or Section 302(c) of ERISA of any request for a minimum funding variance with respect to any Pension Plan or Multiemployer Plan; (g) the withdrawal from a Pension Plan by a member of the Group or ERISA Affiliate that is a "substantial employer" (as defined in Section 4001(a)(2) of ERISA) subject to Section 4063 of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (h) the filing of a notice of intent to terminate a Pension Plan under Section 4041 of ERISA or the treatment of a Pension Plan amendment as a termination under Section 4041 or 4041A of ERISA; (i) the commencement of proceedings by the PBGC to terminate or appoint a trustee to administer a Pension Plan, or an event or condition which could reasonably be expected to constitute grounds for the termination of or the appointment of a trustee to administer a Pension Plan, under Section 4042 of ERISA; (j) a complete or partial withdrawal by any member of the Group or ERISA Affiliate under Sections 4203 or 4205 of ERISA from a Multiemployer Plan, or the failure to make any required contribution to a Multiemployer Plan; (k) a determination that a Multiemployer Plan is or is expected to be "insolvent" (within the meaning of Section 4245 of ERISA), or "at- risk" or in "endangered" or "critical" status (within the meaning of Sections 430(i)(4), 431 or 432 of the Code or Sections 303(i)(4), 304 or 305 of ERISA); (l) the receipt by any member of the Group or any of its ERISA Affiliate of any written notice of the imposition of withdrawal liability;

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EUROPE-LEGAL-311309212 10 (m) the imposition of a lien under Section 303(k)(1)(A) of ERISA or Section 530(k) of the Code with respect to any Pension Plan; and/or (n) the occurrence of any event or condition that results in or could reasonably be expected to result in the imposition of any liability under Title IV of ERISA with respect to any Pension Plan upon any member of the Group or any of its ERISA Affiliates, other than PBGC premiums due but not delinquent under Section 4007 of Title IV of ERISA. EURIBOR means, in relation to any Loan in euro: (a) the applicable Primary Term Rate as of the Specified Time for euro and for a period equal in length to the Interest Period of that Loan; or (b) as otherwise determined pursuant to Clause 11.1 (Interest calculation if no Primary Term Rate), and if, in either case, that rate is less than zero, EURIBOR shall be deemed to be zero. euro or € means the single currency of the Participating Member States. Event of Default means any event or circumstance specified as such in Clause 22 (Events of Default). Excluded Swap Obligation means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the guarantee by such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor's failure for any reason to constitute an "eligible contract participant" as defined in the Commodity Exchange Act and the regulations thereunder at the time the guarantee by such Guarantor or the grant of such security interest becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guarantee or security interest is or becomes illegal. Existing Facility means the $1,350,000,000 revolving facility agreement dated 28 April 2022 between, among others, the Company, certain lenders and certain arrangers named in it and MUFG Bank, Ltd. as agent. Facility means the revolving loan facility made available under this Agreement as described in Clause 2 (The Facility). EUROPE-LEGAL-311309212 11 Facility Office means the office or offices notified by a Lender to the Facility Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than five Business Days' written notice) as the office or offices through which it will perform its obligations under this Agreement. Fallback Interest Period means an Interest Period of one Month. FATCA means: (a) sections 1471 to 1474 of the Code or any associated regulations; (b) any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of any law or regulation referred to in paragraph (a) above; or (c) any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraphs (a) or (b) above with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction. FATCA Application Date means: (a) in relation to a "withholdable payment" described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the US), 1 July 2014; or (b) in relation to a "passthru payment" described in section 1471(d)(7) of the Code not falling within paragraph (a) above, the first date from which such payment may become subject to a deduction or withholding required by FATCA. FATCA Deduction means a deduction or withholding from a payment under a Finance Document required by FATCA. FATCA Exempt Party means a Party that is entitled to receive payments free from any FATCA Deduction. Fee Letter means any letter or letters dated on or about the date of this Agreement between the Arranger and the Company (or the Facility Agent and the Company) setting out any of the fees referred to in Clause 12 (Fees) and any fee letter entered into in accordance with paragraph (d) of Clause 2.2 (Increase). Fitch means Fitch Ratings Inc. Finance Document means this Agreement, any Fee Letter, any Accession Letter, any Resignation Letter, any Reference Rate Supplement, any Compounding Methodology Supplement and any other document designated as such by the Facility Agent and the Company.

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EUROPE-LEGAL-311309212 12 Finance Party means the Facility Agent, the Arranger or a Lender. Financial Indebtedness means any indebtedness (without double counting) for or in respect of: (a) moneys borrowed; (b) any amount raised by acceptance under any acceptance credit facility or dematerialised equivalent; (c) any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock, commercial paper or any similar instrument (entered into or issued primarily as a method of raising finance) provided that, for all purposes under this Agreement (other than for the purposes of Clause 22.4 (Cross default)), any bonds from time to time issued and outstanding under the GBP 4 billion Bond Programme shall at the relevant time be valued as Financial Indebtedness having regard to the net effect of the marked-to-market value of any related interest and currency hedging arrangements in effect at that time; (d) the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with IFRS (as at the date of this Agreement), be treated as a balance sheet liability; (e) receivables sold or discounted (other than any receivables to the extent they are sold or discounted on a non-recourse basis); (f) any amount raised under any other transaction (including any forward sale or purchase agreement) of a type not referred to in any other paragraph of this definition having the commercial effect of borrowing; (g) for the purpose of Clause 22.4 (Cross default) only, any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market value shall be taken into account); (h) shares which are expressed to be redeemable prior to the Termination Date; (i) any counter-indemnity obligation in respect of a guarantee, indemnity, bond, letter of credit or any other instrument issued by a bank or financial institution; and (j) the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (i) above, but excluding indebtedness owing by a member of the Group to another member of the Group. EUROPE-LEGAL-311309212 13 Funding Rate means any individual rate notified by a Lender to the Facility Agent pursuant to paragraph (a)(ii) of Clause 11.3 (Cost of Funds). GBP, £ or Sterling means the lawful currency for the time being of the United Kingdom of Great Britain and Northern Ireland. GBP 4 billion Bond Programme means the Company's £4,000,000,000 Euro Medium Term Note programme as outlined in the prospectus dated 15 August 2025 as amended or updated from time to time. Group means the Company and its Subsidiaries for the time being. Guarantor means an Original Guarantor or an Additional Guarantor, unless it has ceased to be a Guarantor in accordance with Clause 24 (Changes to the Obligors). Historic Primary Term Rate means, in relation to any Term Rate Loan, the most recent applicable Primary Term Rate for a period equal in length to the Interest Period of that Loan and which is as of a day which is no more than 10 days before the Quotation Day. Historic RFR means, in relation to a currency and an RFR Banking Day for that currency, the most recent RFR for a day which is no more than three RFR Banking Days before that RFR Banking Day. Holding Company means, in relation to a company or corporation, any other company or corporation in respect of which it is a Subsidiary. IFRS means UK adopted international accounting standards within the meaning of section 474(1) of the Companies Act 2006 to the extent applicable to the relevant financial statements. Impaired Agent means the Facility Agent at any time when: (a) it has failed to make (or has notified a Party that it will not make) a payment required to be made by it under the Finance Documents by the due date for payment; (b) the Facility Agent otherwise rescinds or repudiates a Finance Document; (c) (if the Facility Agent is also a Lender) it is a Defaulting Lender under paragraph (a) or (b) of the definition of Defaulting Lender; or (d) an Insolvency Event has occurred and is continuing with respect to the Facility Agent, unless, in the case of paragraph (a) above: (i) its failure to pay is caused by:

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EUROPE-LEGAL-311309212 14 (A) administrative or technical error; or (B) a Disruption Event; and payment is made within five Business Days of its due date; or (ii) the Facility Agent is disputing in good faith whether it is contractually obliged to make the payment in question. Increase Confirmation means a confirmation substantially in the form set out in Schedule 9 (Form of Increase Confirmation). Increase Lender has the meaning given to that term in Clause 2.2 (Increase). Insolvency Event in relation to a Finance Party means that the Finance Party: (a) is dissolved (other than pursuant to a consolidation, amalgamation or merger); (b) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due; (c) makes a general assignment, arrangement or composition with or for the benefit of its creditors; (d) institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organisation or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official; (e) has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition is instituted or presented by a person or entity not prescribed in paragraph (d) above and: (i) results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; or EUROPE-LEGAL-311309212 15 (ii) is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof; (f) has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); (g) seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets; (h) has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter; or (i) causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) to (h) above. Interest Period means, in relation to a Loan, each period determined in accordance with Clause 10 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with Clause 9.4 (Default interest). Interpolated Historic Primary Term Rate means, in relation to any Term Rate Loan, the rate (rounded to the same number of decimal places as the two relevant Primary Term Rates) which results from interpolating on a linear basis between: (a) the most recent applicable Primary Term Rate for the longest period (for which that Primary Term Rate is available) which is less than the Interest Period of that Loan; and (b) the most recent applicable Primary Term Rate for the shortest period (for which that Primary Term Rate is available) which exceeds the Interest Period of that Loan, each of which is as of a day which is no more than 2 days before the Quotation Day. Interpolated Primary Term Rate means, in relation to any Term Rate Loan, the rate (rounded to the same number of decimal places as the two relevant Primary Term Rates) which results from interpolating on a linear basis between: (a) the applicable Primary Term Rate for the longest period (for which that Primary Term Rate is available) which is less than the Interest Period of that Loan; and

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EUROPE-LEGAL-311309212 16 (b) the applicable Primary Term Rate for the shortest period (for which that Primary Term Rate is available) which exceeds the Interest Period of that Loan, each as of the Quotation Time. IRS means the US Internal Revenue Service. ITA means the Income Tax Act 2007. Lender means: (a) any Original Lender; and (b) any bank, financial institution, trust, fund or other entity which has become a Party in accordance with Clause 2.2 (Increase) or Clause 23 (Changes to the Lenders), which in each case has not ceased to be a Party in accordance with the terms of this Agreement. LMA means the Loan Market Association. Loan means a loan made or to be made under the Facility or the principal amount outstanding for the time being of that loan. Lookback Period means the number of days specified as such in the applicable Reference Rate Terms. Majority Lenders means a Lender or Lenders whose Commitments aggregate more than 662/3 per cent. of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 662/3 per cent. of the Total Commitments immediately prior to the reduction). Managed Assets means any assets (including, for the avoidance of doubt, any equity interest in any such asset) of a member of the Group which are sold and become, or remain, the subject of a management or franchise agreement in favour of the Group. Margin means 0.45 per cent. per annum on the date of this Agreement and thereafter calculated by reference to the Credit Rating of the Company and the table below: Credit Rating: S&P/ Fitch/ Moody's Margin (per cent. p.a.) A- / A- / A3 0.30 BBB+ / BBB+ / Baa1 0.35 BBB / BBB / Baa2 0.45 BBB- / BBB- / Baa3 0.60 EUROPE-LEGAL-311309212 17 Credit Rating: S&P/ Fitch/ Moody's Margin (per cent. p.a.) BB+ / BB+ / Ba1 or lower 0.85 and: (i) the Company or a Borrower shall promptly notify the Facility Agent of any notification to the Company or Borrower by a Rating Agency of a change in any Credit Rating; (ii) if a Credit Rating is assigned by a Rating Agency that is not equivalent to other applicable Credit Ratings or one Rating Agency does not issue a Credit Rating, then the applicable Margin shall be the arithmetic mean of the Margins resulting from the relevant Credit Ratings as set out above; (iii) if there is only one Credit Rating assigned by a Rating Agency and not by the other Rating Agencies, then the Margin will be the Margin applicable to that Credit Rating; (iv) if there is no Credit Rating assigned by any Rating Agency, then the Credit Rating shall be deemed to be BB+/ Ba1 or lower and the Margin calculated accordingly by reference to the table above; and (v) any increase or decrease in the Margin shall take effect on the date which is five Business Days after the date such change to a Credit Rating is publicly announced. Margin Regulations means Regulations T, U and X. Margin Stock means "margin stock" or "margin security" within the meaning of Regulations T, U and X. Market Disruption Rate means the rate (if any) specified as such in the applicable Reference Rate Terms. Material Adverse Effect means a material adverse effect on the ability of the Obligors (taken as a whole) to perform and comply with their payment obligations under any Finance Document. Material Subsidiary means, at any time, any Subsidiary of the Company: (a) whose gross assets represent 5 per cent. or more of Consolidated Gross Assets or whose Revenue represents 5 per cent. or more of consolidated Revenue of the Group, in each case, as calculated by reference to the latest financial statements of such Subsidiary (which shall be audited if such statements are prepared by that Subsidiary) and the latest audited consolidated financial

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EUROPE-LEGAL-311309212 18 statements of the Group adjusted in such manner as the auditors of the Company may determine (which determination shall be conclusive in the absence of manifest error) (i) to reflect the gross assets and Revenue of any person which has become or ceased to be a member of the Group since the end of the financial year to which the latest audited consolidated financial statements of the Group relate where such adjustment is requested by the Company and (ii) so that for the purposes of this definition, the gross assets of the relevant Subsidiary shall be calculated on the same basis as Consolidated Gross Assets are calculated and/or, as the case may be, Revenue of the relevant Subsidiary shall be calculated on the same basis as consolidated Revenue for the Group (but, in each case, relating only to the relevant Subsidiary) and making such adjustments and eliminations as are required to show the same as the contribution of the relevant Subsidiary to Consolidated Gross Assets and/or, as the case may be, consolidated Revenue of the Group, including all fee revenue arising from contracts held by that subsidiary before taking account of any fees passed through to other Group companies under intercompany agreements; or (b) to which is transferred all or substantially all of the business, undertaking or assets of a Subsidiary which immediately prior to such transfer is a Material Subsidiary, whereupon the transferor Subsidiary shall cease to be a Material Subsidiary and the transferee Subsidiary shall become a Material Subsidiary under this sub-paragraph (b) upon the completion of such transfer. Any determination made by the auditors of the Company as to whether a Subsidiary of the Company is or is not a Material Subsidiary at any time shall be conclusive in the absence of manifest error. Month means, in relation to an Interest Period (or any other period for the accrual of commission or fees in a currency), a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, subject to adjustment in accordance with the rules specified as Business Day Conventions in the applicable Reference Rate Terms. Moody's means Moody's Investors Service Limited or any successor to its rating business. Multiemployer Plan means a Plan that is a multiemployer plan as defined in Sections 3(37) or 4001(a)(3) of ERISA. New Lender has the meaning given to it in Clause 23.1 (Assignments and transfers by the Lenders). Obligor means the Company, a Borrower or a Guarantor. EUROPE-LEGAL-311309212 19 OFAC means the Office of Foreign Assets Control of the US Department of the Treasury. Optional Currency means a currency (other than the Base Currency) which complies with the conditions set out in Clause 4.3 (Conditions relating to Optional Currencies). Original Financial Statements means the audited consolidated financial statements of the Group for the financial year ended 31 December 2024. Original Obligor means an Original Borrower or an Original Guarantor. Original Termination Date means the fifth anniversary of the date of this Agreement. Participating Member State means any member state of the European Union that has the euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union. Party means a party to this Agreement. Patriot Act means the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), as amended from time to time, and any successor statute. PBGC means the US Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions under ERISA. Pension Plan means a Plan (other than a Multiemployer Plan) that is subject to the provisions of Title IV or Section 302 of ERISA or Section 412 of the Code and that is sponsored or maintained by any member of the Group or ERISA Affiliate or to which any member of the Group or ERISA Affiliate contributes or has an obligation to contribute, or in the case of a plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding six plan years. Plan Asset Rules means the regulations issued by the United States Department of Labor at Section 2510.3-101 of Part 2510 of Chapter XXV, Title 29 of the United States Code of Federal Regulations or any successor regulations, as modified by Section 3(42) of ERISA, and the rules and regulations thereunder. Plan means an employee benefit plan (as defined in Section 3(3) of ERISA) which any member of the Group or ERISA Affiliate sponsors, maintains or contributes to or with respect to which any member of the Group or ERISA Affiliate has any liability.

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EUROPE-LEGAL-311309212 20 Primary Term Rate means the rate specified as such in the applicable Reference Rate Terms. Project Finance Indebtedness means Financial Indebtedness (in respect of which Security has been given) incurred by a member of the Group (a Project Group Member) for the purposes of financing the acquisition, construction, development and/or operation of an asset (a Project Asset) where the provider of the Financial Indebtedness has no recourse against any member of the Group, except for recourse to: (a) the Project Asset of the Project Group Member or receivables arising from the Project Asset; (b) a Project Group Member for the purpose of enforcing Security given by it so long as: (i) the recourse is limited to recoveries in respect of the Project Asset; and (ii) if the Project Asset does not comprise all or substantially all of the business of that Project Group Member, the provider of the Financial Indebtedness does not have the right to take any steps towards its winding up or dissolution or the appointment of a liquidator, administrator, receiver or similar officer or person, other than in respect of the Project Asset or receivables arising therefrom; or (c) a member of the Group to the extent only of its shareholding in a Project Group Member. Project Group Member has the meaning given to it in the definition of Project Finance Indebtedness provided that the principal assets and business of such member of the Group is constituted by Project Assets and it has no other Financial Indebtedness except Project Finance Indebtedness. Qualified ECP Guarantor means, in respect of any Swap Obligation, each Obligor that has total assets exceeding $10,000,000 at the time the relevant guarantee or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such other person that constitutes an "eligible contract participant" under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an "eligible contract participant" at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act. Qualifying Lender has the meaning given to it in Clause 13 (Tax gross- up and indemnities). Quotation Day means the day specified as such in the applicable Reference Rate Terms. EUROPE-LEGAL-311309212 21 Quotation Time means the relevant time (if any) specified as such in the applicable Reference Rate Terms. Quoted Tenor means, in relation to a Primary Term Rate, any period for which that rate is customarily published. Rating Agency means S&P, Moody's or Fitch. Reference Rate Supplement means, in relation to any currency, a document which: (a) is agreed in writing by the Company, the Facility Agent (in its own capacity), and the Facility Agent (acting on the instructions of the Majority Lenders); (b) specifies for that currency the relevant terms which are expressed in this Agreement to be determined by reference to Reference Rate Terms; (c) specifies whether that currency is a Compounded Rate Currency or a Term Rate Currency; and (d) has been made available to the Company and each Finance Party. Reference Rate Terms means, in relation to: (a) a currency; (b) a Loan or an Unpaid Sum in that currency; (c) an Interest Period for that Loan or Unpaid Sum (or other period for the accrual of commission or fees in a currency); or (d) any term of this Agreement relating to the determination of a rate of interest in relation to such a Loan or Unpaid Sum, the terms set out for that currency, and (where such terms are set out for different categories of Loan, Unpaid Sum or accrual of commission or fees in that currency) for the category of that Loan, Unpaid Sum or accrual, in Schedule 10 (Reference Rate Terms) or in any Reference Rate Supplement. Regulation U and X means Regulation U and X of the Board of Governors of the United States Federal Reserve System, or any successor thereto. Relevant Market means the market specified as such in the applicable Reference Rate Terms. Relevant Nominating Body means any applicable central bank, regulator or other supervisory authority or a group of them, or any working group or committee sponsored or chaired by, or constituted at the request of, any of them or the Financial Stability Board.

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EUROPE-LEGAL-311309212 22 Repeating Representations means each of the representations set out in Clauses 19.1 (Status) to 19.4 (Power and authority), paragraph (a) of Clause 19.6 (No default), Clause 19.8 (Pari passu ranking) and paragraph (a)(i) of Clause 19.11 (Sanctions). Reporting Day means the day (if any) specified as such in the applicable Reference Rate Terms. Reporting Time means the relevant time (if any) specified as such in the applicable Reference Rate Terms. Representative means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian. Resignation Letter means a letter substantially in the form set out in Schedule 6 (Form of Resignation Letter). Revenue means revenue from fee business and revenue from owned, leased and managed lease hotels. This excludes System Fund revenue and reimbursement of costs and is reported as 'revenue from reportable segments'. RFR means the rate specified as such in the applicable Reference Rate Terms. RFR Banking Day means any day specified as such in the applicable Reference Rate Terms. Rollover Loan means one or more Loans: (a) made or to be made on the same day that one or more maturing Loans is or are due to be repaid; (b) the aggregate amount of which is equal to or less than the maturing Loan(s) (unless it is more than the maturing Loan(s) solely because it arose as a result of the operation of Clause 6.2 (Unavailability of a currency)); (c) in the same currency as the maturing Loan(s) (unless arising as a result of the operation of Clause 6.2 (Unavailability of a currency)); and (d) made or to be made to the same Borrower for the purpose of refinancing the maturing Loan(s). S&P means Standard & Poor's Global Ratings Europe Limited, UK Branch. Sanctioned Person means any person or organisation: (a) designated on the list of Specially Designated Nationals and Blocked Persons maintained by the US Office of Foreign Assets Control (OFAC), the Consolidated List of Persons, Groups and EUROPE-LEGAL-311309212 23 Entities Subject to EU Financial Sanctions maintained by the European Commission, the UK Sanctions List maintained by the Office of Financial Sanctions Implementation (OFSI) of His Majesty's Treasury and the UK Foreign, Commonwealth & Development Office, or any other list of targeted persons maintained by any Sanctions Authority under any Sanctions Law; (b) that is, or is part of, a government of a Sanctioned Territory; (c) owned or controlled by, or acting on behalf of, any person under (a) or (b) above; (d) incorporated or located within or operating from a Sanctioned Territory; or (e) otherwise targeted under any Sanctions Law. Sanctioned Territory means any country or other territory subject to a general export, import, financial or investment embargo under Sanctions Law from time to time (which countries and territories as at the date of this Agreement comprise Cuba, Iran, North Korea, the region of Crimea, the so-called territories of the Donetsk People's Republic and the Luhansk People's Republic and the Kherson and Zaporizhzhia regions of Ukraine to the extent that such areas of Kherson and Zaporizhzhia are under the control of Russia). Sanctions Authority means: (a) the US; (b) the United Nations; (c) the European Union or any member state thereof; (d) the United Kingdom; or (e) the respective Governmental Authorities of any of the foregoing, including without limitation, OFAC, the US State Department and His Majesty's Treasury. Sanctions Law means any applicable trade, economic or financial sanctions, export controls or trade embargoes or other restrictive measures imposed by any Sanctions Authority. Security means a mortgage, pledge, lien, hypothecation, security interest or other charge or encumbrance entered into for the purpose of securing any obligation of any person. Separate Loan has the meaning given to that term in Clause 7.1 (Repayment of Loans). Specified Time means a time determined in accordance with Schedule 8 (Timetables).

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EUROPE-LEGAL-311309212 24 Subsidiary means a subsidiary within the meaning of section 1159 of the Companies Act 2006 and in relation to financial statements of the Group, a subsidiary undertaking within the meaning of section 1162 of the Companies Act 2006, but in this Agreement Subsidiary shall for all purposes exclude each Project Group Member. Super-Majority Lenders means a Lender or Lenders whose Commitments aggregate more than 85 per cent. of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 85 per cent. of the Total Commitments immediately prior to the reduction). Swap Obligation means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of Section 1a(47) of the Commodity Exchange Act. System Fund means the assessment fees and contributions collected from hotels owned, leased, managed, franchised, licensed or otherwise operated by any member of the Group, which fund activities that drive revenue to such hotels including marketing, distribution channels and the loyalty programme known, at the date of this Agreement, as "IHG Rewards"; T2 means the real time gross settlement system operated by the Eurosystem, or any successor system. TARGET Day means any day on which T2 is open for the settlement of payments in euro. Tax means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure by an Obligor to pay or any delay in paying by an Obligor any of the same). Term Rate Currency means: (a) euro; (b) US dollars; and (c) any currency specified as such in a Reference Rate Supplement relating to that currency, to the extent, in any case, not specified otherwise in a subsequent Reference Rate Supplement. Term Rate Loan means any Loan or, if applicable, Unpaid Sum in a Term Rate Currency. Term Reference Rate means, in relation to a Term Rate Loan: EUROPE-LEGAL-311309212 25 (a) the applicable Primary Term Rate as of the Quotation Time for a period equal in length to the Interest Period of that Loan; or (b) as otherwise determined pursuant to Clause 11.1 (Interest calculation if no Primary Term Rate) and if, in either case, that rate is less than zero, the Term Reference Rate shall be deemed to be zero. Termination Date means subject to Clause 7.2 (Extension of the Termination Date), the Original Termination Date. Total Commitments means the aggregate of the Lenders' Commitments being $1,500,000,000 as at the date of this Agreement. Transfer Certificate means a certificate substantially in the form set out in Schedule 4 (Form of Transfer Certificate) or any other form agreed between the Facility Agent and the Company. Transfer Date means, in relation to a transfer, the later of: (a) the proposed Transfer Date specified in the Transfer Certificate; and (b) the date on which the Facility Agent executes the Transfer Certificate. Unfunded Pension Liability means the excess of a Pension Plan's benefit liabilities under Section 4001(a)(16) of ERISA, over the current value of that plan's assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Code for the applicable plan year. Unpaid Sum means any sum due and payable but unpaid by an Obligor under the Finance Documents. US means the United States of America. US Bankruptcy Code means the US Bankruptcy Code (Title 11 of the US Code). US Bankruptcy Law means the US Bankruptcy Code and any other US Federal or State bankruptcy, insolvency or similar law. US Borrower means a Borrower that is organised, incorporated or formed under the laws of the United States of America or any state thereof or the District of Columbia. U.S. Debtor Relief Laws means the U.S. Bankruptcy Code and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, judicial management or similar debtor relief laws of the

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EUROPE-LEGAL-311309212 26 United States from time to time in effect and affecting the rights of creditors generally. US Group means a US Obligor and any of such US Obligor's Subsidiaries from time to time, and US Group Member means any of them. US Guarantor means a Guarantor that is organised, incorporated or formed under the laws of the United States of America or any state thereof or the District of Columbia. US Obligor means a US Borrower or US Guarantor. US Dollars or $ means the lawful currency for the time being of the United States of America. U.S.A. Patriot Act means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56. Utilisation means a utilisation of the Facility. Utilisation Date means the date of a Utilisation, being the date on which the relevant Loan is to be made. Utilisation Level means the Base Currency Amount of all Loans expressed as a percentage of the Total Commitments. Utilisation Request means a notice substantially in the form set out in Schedule 3 (Utilisation Request). VAT means: (a) any value added tax imposed by the Value Added Tax Act 1994; (b) any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and (c) any other tax of a similar nature, whether imposed in the United Kingdom or in a member state of the European Union in substitution for, or levied in addition to, such tax referred to in paragraphs (a) above or (b) above, or imposed elsewhere. 1.2 Construction (a) Unless a contrary indication appears, any reference in this Agreement to: (i) the Facility Agent, the Arranger, any Finance Party, any Guarantor, any Lender, any Obligor or any Party shall be construed so as to include its successors in title, permitted assigns and permitted transferees; EUROPE-LEGAL-311309212 27 (ii) assets includes present and future properties, revenues and rights of every description; (iii) a Lender's cost of funds in relation to its participation in a Loan is a reference to the average cost (determined either on an actual or a notional basis) which that Lender would incur if it were to fund, from whatever source(s) it may reasonably select, an amount equal to the amount of that participation in that Loan for a period equal in length to the Interest Period of that Loan; (iv) a Finance Document or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended, novated, supplemented, extended, restated (however fundamentally and whether or not more onerously) or replaced and includes any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under that Finance Document or other agreement or instrument; (v) a group of Lenders includes all the Lenders; (vi) indebtedness includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent; (vii) a person includes any individual, firm, company, corporation, government, state or agency of a state or any association, trust, joint venture, consortium or partnership (whether or not having separate legal personality); (viii) a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law but, if not having the force of law, which is generally complied with by those to whom it is addressed) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation; (ix) a provision of law is a reference to that provision as amended or re-enacted from time to time; and (x) a time of day is a reference to London time. (b) The determination of the extent to which a rate is for a period equal in length to an Interest Period shall disregard any inconsistency arising from the last day of that Interest Period being determined pursuant to the terms of this Agreement. (c) Section, Clause and Schedule headings are for ease of reference only.

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EUROPE-LEGAL-311309212 28 (d) Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement. (e) A Default or an Event of Default is "continuing" if it has not been remedied or waived. (f) A reference in this Agreement to a page or screen of an information service displaying a rate shall include: (i) any replacement page of that information service which displays that rate; and (ii) the appropriate page of such other information service which displays that rate from time to time in place of that information service, and, if such page or service ceases to be available, shall include any other page or service displaying that rate specified by the Facility Agent after consultation with the Company. (g) A reference in this Agreement to a Central Bank Rate shall include any successor rate to, or replacement rate for, that rate. (h) Any Reference Rate Supplement relating to a currency overrides anything relating to that currency in: (i) Schedule 10 (Reference Rate Terms); or (ii) any earlier Reference Rate Supplement. (i) A Compounding Methodology Supplement relating to the Daily Non-Cumulative Compounded RFR Rate or the Cumulative Compounded RFR Rate overrides anything relating to that rate in: (i) Schedule 11 (Daily Non-Cumulative Compounded RFR Rate) or Schedule 12 (Cumulative Compounded RFR Rate), as the case may be; or (ii) any earlier Compounding Methodology Supplement. 1.3 Third Party Rights (a) Unless expressly provided to the contrary in a Finance Document a person who is not a Party has no right under the Contracts (Rights of Third Parties) Act 1999 (the Third Parties Act) to enforce or to enjoy the benefit of any term of this Agreement. (b) Notwithstanding any term of any Finance Document, the consent of any person who is not a Party is not required to rescind or vary this Agreement at any time. EUROPE-LEGAL-311309212 29 1.4 Divisions For all purposes under the Finance Documents, in connection with any division or plan of division under Delaware law: (a) if any asset, right, obligation or liability of any person becomes the asset, right, obligation or liability of a different person, then it shall be deemed to have been transferred from the original person to the different person, and (b) if any new person comes into existence, such new person shall be deemed to have been organised and acquired on the first date of its existence by the holders of its equity interests at such time. 2. The Facility 2.1 The Facility Subject to the terms of this Agreement, the Lenders make available to the Borrowers a multicurrency revolving loan facility in an aggregate amount equal to the Total Commitments. 2.2 Increase (a) The Company may by giving prior notice to the Facility Agent after the effective date of a cancellation of: (i) the Available Commitments of a Defaulting Lender in accordance with Clause 8.7 (Right of cancellation in relation to a Defaulting Lender); (ii) all or part of the Commitments of a Lender in accordance with Clause 8.5 (Right of repayment and cancellation in relation to, or replacement of, a single Lender); or (iii) the Commitments of a Lender in accordance with Clause 8.1 (Illegality), request that the Total Commitments be increased (and the Total Commitments under the Facility shall be so increased) in an aggregate amount in the Base Currency of up to the amount of the Available Commitments or Commitments so cancelled as follows: (A) the increased Commitments may be assumed by one or more Lenders or other banks, financial institutions, trusts, funds or other entities (each an Increase Lender) selected by the Company (each of which shall not be a member of the Group) and each of which confirms its willingness to assume and does assume all the obligations of a Lender corresponding to that part of the increased Commitments which it is to assume, as if it had been an Original Lender;

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EUROPE-LEGAL-311309212 30 (B) each of the Obligors and any Increase Lender shall assume obligations towards one another and/or acquire rights against one another as the Obligors and the Increase Lender would have assumed and/or acquired had the Increase Lender been an Original Lender; (C) each Increase Lender shall become a Party as a Lender and any Increase Lender and each of the other Finance Parties shall assume obligations towards one another and acquire rights against one another as that Increase Lender and those Finance Parties would have assumed and/or acquired had the Increase Lender been an Original Lender; (D) the Commitments of the other Lenders shall continue in full force and effect; and (E) any increase in the Total Commitments shall take effect on the date specified by the Company in the notice referred to above or any later date on which the conditions set out in paragraph (b) below are satisfied. (b) An increase in the Total Commitments will only be effective on: (i) the execution by the Facility Agent of an Increase Confirmation from the relevant Increase Lender and the Facility Agent shall execute an Increase Confirmation within five Business Days of receipt by it of an Increase Confirmation duly executed by the Increase Lender; (ii) in relation to an Increase Lender which is not a Lender immediately prior to the relevant increase, the performance by the Facility Agent of all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to the assumption of the increased Commitments by that Increase Lender, the completion of which the Facility Agent shall promptly notify to the Company and the Increase Lender. (c) Each Increase Lender, by executing the Increase Confirmation, confirms (for the avoidance of doubt) that the Facility Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the increase becomes effective. (d) The Company may (but shall be under no obligation to) pay to the Increase Lender a fee in the amount and at the times agreed between the Company and the Increase Lender in a letter EUROPE-LEGAL-311309212 31 between the Company and the Increase Lender setting out that fee. A reference in this Agreement to a Fee Letter shall include any letter referred to in this paragraph. (e) Clause 23.6 (Limitation of responsibility of Existing Lenders) shall apply mutatis mutandis in this Clause 2.2 in relation to an Increase Lender as if references in that Clause to: (i) an Existing Lender were references to all the Lenders immediately prior to the relevant increase; (ii) the New Lender were references to that Increase Lender; and (iii) a re-transfer and re-assignment were references to respectively a transfer and assignment. 2.3 Finance Parties' rights and obligations (a) The obligations of each Finance Party under the Finance Documents are several. Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents. (b) The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance Party from an Obligor is a separate and independent debt in respect of which a Finance Party shall be entitled to enforce its rights in accordance with paragraph (c) below. The rights of each Finance Party include any debt owing to that Finance Party under the Finance Documents and, for the avoidance of doubt, any part of a Loan or any other amount owed by an Obligor which relates to a Finance Party's participation in the Facility or its role under a Finance Document (including any such amount payable to the Facility Agent on its behalf) is a debt owing to that Finance Party by that Obligor. (c) A Finance Party may, except as specifically provided in the Finance Documents, separately enforce its rights under or in connection with the Finance Documents. 2.4 Obligors' agent (a) Each Obligor (other than the Company) by its execution of this Agreement or an Accession Letter irrevocably appoints the Company to act on its behalf as its agent in relation to the Finance Documents and irrevocably authorises:

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EUROPE-LEGAL-311309212 32 (i) the Company on its behalf to supply all information concerning itself contemplated by this Agreement to the Finance Parties and to give all notices and instructions (including, if relevant, any Utilisation Request), to execute on its behalf any Accession Letter, to make such agreements and to effect the relevant amendments, supplements and variations capable of being given, made or effected by any Obligor notwithstanding that they may affect the Obligor (including, without limitation, by increasing the obligations of such Obligor howsoever fundamentally, whether by increasing the liabilities guaranteed or otherwise), without further reference to or the consent of that Obligor; and (ii) each Finance Party to give any notice, demand or other communication to that Obligor pursuant to the Finance Documents to the Company, and in each case the Obligor shall be bound as though the Obligor itself had given the notices and instructions (including, without limitation, any Utilisation Request) or executed or made the agreements or effected the amendments, supplements or variations, or received the relevant notice, demand or other communication. (b) Every act, omission, agreement, undertaking, settlement, waiver, amendment, supplement, variation, notice or other communication given or made by the Obligors' agent or given to the Obligors' agent under any Finance Document on behalf of another Obligor or in connection with any Finance Document (whether or not known to any other Obligor and whether occurring before or after such other Obligor became an Obligor under any Finance Document) shall be binding for all purposes on that Obligor as if that Obligor had expressly made, given or concurred with it. In the event of any conflict between any notices or other communications of the Obligors' agent and any other Obligor, those of the Obligors' agent shall prevail. 3. Purpose 3.1 Purpose Each Borrower shall apply all amounts borrowed by it under the Facility towards general corporate purposes of the Group, including, without limitation, the refinancing of existing indebtedness of the Group. 3.2 Monitoring No Finance Party is bound to monitor or verify the application of any amount borrowed pursuant to this Agreement. EUROPE-LEGAL-311309212 33 4. Conditions of Utilisation 4.1 Initial conditions precedent The Lenders will only be obliged to comply with Clause 5.4 (Lenders' participation) in relation to the first Utilisation if on or before the Utilisation Date for that Utilisation, the Facility Agent has received all of the documents and other evidence listed in Part A (Conditions Precedent to Initial Utilisation) of Schedule 2 (Conditions Precedent) in form and substance satisfactory to the Facility Agent. The Facility Agent shall notify the Company and the Lenders promptly upon being so satisfied. 4.2 Further conditions precedent The Lenders will only be obliged to comply with Clause 5.4 (Lenders' participation) if on the date of the Utilisation Request and on the proposed Utilisation Date: (a) in the case of a Rollover Loan, no notice has been served by the Facility Agent on the Company under Clause 22.15 (Acceleration) and, in the case of any other Loan, no Default is continuing or would result from the proposed Loan; and (b) the Repeating Representations to be made by each Obligor are true in all material respects. 4.3 Conditions relating to Optional Currencies (a) A currency will constitute an Optional Currency in relation to a Loan if it is euro or Sterling or: (i) it is readily available in the amount required and freely convertible into the Base Currency in the wholesale market for that currency at the Specified Time and on the Utilisation Date for that Loan; (ii) it has been approved by the Facility Agent (acting on the instructions of all the Lenders) on or prior to receipt by the Facility Agent of the relevant Utilisation Request for that Loan; and (iii) there are Reference Rate Terms for that currency. (b) If by the Specified Time the Facility Agent has received a written request from the Company for a currency to be approved under paragraph (a)(ii) above, the Facility Agent will notify the Lenders of that request by the Specified Time. Based on any responses received by the Facility Agent by the Specified Time, the Facility Agent will confirm to the Company by the Specified Time: (i) whether or not the Lenders have granted their approval; and

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EUROPE-LEGAL-311309212 34 (ii) if approval has been granted, the minimum amount (and, if required, integral multiples) for any subsequent Utilisation in that currency. 4.4 Maximum number of Loans (a) A Borrower may not deliver a Utilisation Request if as a result of the proposed Utilisation more than 15 Loans would be outstanding. (b) Any Loan made by a single Lender under Clause 6.2 (Unavailability of a currency) shall not be taken into account in this Clause 4.4. (c) Any Separate Loan shall not be taken into account in this Clause 4.4. 5. Utilisation 5.1 Delivery of a Utilisation Request A Borrower may utilise the Facility by delivery to the Facility Agent of a duly completed Utilisation Request not later than the Specified Time. 5.2 Completion of a Utilisation Request (a) Each Utilisation Request is irrevocable and will not be regarded as having been duly completed unless: (i) the proposed Utilisation Date is a Business Day within the Availability Period; (ii) the currency and amount of the Utilisation comply with Clause 5.3 (Currency and amount); (iii) the proposed Interest Period complies with Clause 10 (Interest Periods); and (iv) it specifies the account and bank (which must be in the principal financial centre of the country of the currency of the Utilisation or, in the case of euro, the principal financial centre of a Participating Member State in which banks are open for general business on that day or London or, such other financial centre as the relevant Borrower, with the consent of the Facility Agent, may select) to which the proceeds of the Utilisation are to be credited. (b) Only one Loan may be requested in each Utilisation Request. 5.3 Currency and amount (a) The currency specified in a Utilisation Request must be the Base Currency or an Optional Currency. EUROPE-LEGAL-311309212 35 (b) The amount of the proposed Loan must be: (i) if the currency selected is the Base Currency, a minimum of $20,000,000 and in multiples of $1,000,000, or if less, the Available Facility; (ii) if the currency selected is Sterling, a minimum of £10,000,000 and in multiples of £1,000,000, or, if less the Available Facility; or (iii) if the currency selected is euro, a minimum of €15,000,000, and in multiples of €1,000,000, or if less, the Available Facility; or (iv) if the currency selected is an Optional Currency other than Sterling or euro, the minimum amount (and, if required, integral multiple) as agreed between the Facility Agent, the Lenders and the Company provided that if no such agreement is reached between the Facility Agent, the Lenders and the Company the minimum amount shall be the equivalent at that time of $20,000,000 and multiples of $2,000,000, such amount to be rounded as reasonably determined by the Facility Agent and notified to the Company; and (v) in any event such that its Base Currency Amount is less than or equal to the Available Facility. 5.4 Lenders' participation (a) If the conditions set out in this Agreement have been met, and subject to Clause 7.1 (Repayment of Loans), each Lender shall make its participation in each Loan available by the Utilisation Date through its Facility Office. (b) The amount of each Lender's participation in each Loan will be equal to the proportion borne by its Available Commitment to the Available Facility immediately prior to making the Loan. (c) The Facility Agent shall determine the Base Currency Amount of each Loan which is to be made in an Optional Currency and shall notify each Lender of the amount, currency and the Base Currency Amount of each Loan and the amount of its participation in that Loan, in each case by the Specified Time. 5.5 Cancellation of Commitment The Commitments which, at that time, are unutilised shall be immediately cancelled at the end of the Availability Period.

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EUROPE-LEGAL-311309212 36 6. Optional Currencies 6.1 Selection of currency A Borrower (or the Company on behalf of a Borrower) shall select the currency of a Loan in a Utilisation Request. 6.2 Unavailability of a currency If before the Specified Time: (a) a Lender notifies the Facility Agent that the Optional Currency requested is not readily available to it in the amount required; or (b) a Lender notifies the Facility Agent that compliance with its obligation to participate in a Loan in the proposed Optional Currency would contravene a law or regulation applicable to it, the Facility Agent will give notice to the relevant Borrower to that effect by the Specified Time. In this event, any Lender that gives notice pursuant to this Clause 6.2 will be required to participate in the Loan in the Base Currency (in an amount equal to that Lender's proportion of the Base Currency Amount or, in respect of a Rollover Loan, an amount equal to that Lender's proportion of the Base Currency Amount of the Rollover Loan that is due to be made) and its participation will be treated as a separate Loan denominated in the Base Currency during that Interest Period. 6.3 Participation in a Loan Each Lender's participation in a Loan will be determined in accordance with paragraph (b) of Clause 5.4 (Lenders' participation). 7. Repayment 7.1 Repayment of Loans (a) Subject to paragraph (c) below, each Borrower which has drawn a Loan shall repay that Loan on the last day of its Interest Period. (b) Without prejudice to each Borrower's obligation under paragraph (a) above, if one or more Loans are to be made available to a Borrower: (i) on the same day that a maturing Loan is due to be repaid by that Borrower; (ii) in the same currency as the maturing Loan (unless it arose as a result of the operation of Clause 6.2 (Unavailability of a currency)); and (iii) in whole or in part for the purpose of refinancing the maturing Loan, EUROPE-LEGAL-311309212 37 the aggregate amount of the new Loans shall be treated as if applied in or towards repayment of the maturing Loan so that: (A) if the amount of the maturing Loan exceeds the aggregate amount of the new Loans: (B) the relevant Borrower will only be required to pay an amount in cash in the relevant currency equal to that excess; and (C) each Lender's participation (if any) in the new Loans shall be treated as having been made available and applied by the Borrower in or towards repayment of that Lender's participation (if any) in the maturing Loan and that Lender will not be required to make its participation in the new Loans available in cash; and (D) if the amount of the maturing Loan is equal to or less than the aggregate amount of the new Loans: (I) the relevant Borrower will not be required to make any payment in cash; and (II) each Lender will be required to make its participation in the new Loans available in cash only to the extent that its participation (if any) in the new Loans exceeds that Lender's participation (if any) in the maturing Loan and the remainder of that Lender's participation in the new Loans shall be treated as having been made available and applied by the Borrower in or towards repayment of that Lender's participation in the maturing Loan. (c) At any time when a Lender becomes a Defaulting Lender, the maturity date of each of the participations of that Lender in the Loans then outstanding will be automatically extended to the Termination Date and will be treated as separate Loans (the Separate Loans) denominated in the currency in which the relevant participations are outstanding. (d) A Borrower to whom a Separate Loan is outstanding may prepay that Loan by giving five Business Days' prior notice to the Facility Agent. The Facility Agent will forward a copy of a prepayment notice received in accordance with this paragraph (d) to the Defaulting Lender concerned as soon as practicable on receipt. (e) Interest in respect of a Separate Loan will accrue for successive Interest Periods selected by the Borrower by the time and date

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EUROPE-LEGAL-311309212 38 specified by the Facility Agent (acting reasonably) and will be payable by that Borrower to the Defaulting Lender on the last day of each Interest Period of that Separate Loan. (f) The terms of this Agreement relating to Loans generally shall continue to apply to Separate Loans other than to the extent inconsistent with paragraphs (c) to (e) above, in which case those paragraphs shall prevail in respect of any Separate Loan. 7.2 Extension of the Termination Date (a) In this Agreement: Extension Request means a written notice from the Company to the Facility Agent requesting an extension to the Termination Date in accordance with this Clause 7.2. First Extended Termination Date means the date which is twelve Months after the Termination Date or, if such date is not a Business Day, the immediately preceding Business Day. Second Extended Termination Date means the date which is twelve Months after the First Extended Termination Date, or if such date is not a Business Day, the immediately preceding Business Day. (b) The Company may, by delivering an irrevocable Extension Request to the Facility Agent not less than 20 Business Days before the date falling 12 Months after the date of this Agreement, request the extension of the Termination Date to the First Extended Termination Date. (c) The Company may, by delivering an irrevocable Extension Request to the Facility Agent not less 20 Business Days prior to the date falling 24 Months after the date of this Agreement: (i) if previously extended pursuant to paragraph (b) above, request that each Lender extends the Termination Date to the Second Extended Termination Date; or (ii) if the Company has not requested (or if a Lender has not agreed to) an extension of the Termination Date pursuant to paragraph (b) above, request that each Lender extends the Termination Date to either the First Extended Termination Date or the Second Extended Termination Date. (d) The Facility Agent will promptly notify each Lender if the Company delivers an Extension Request pursuant to paragraphs (b) or (c) above. EUROPE-LEGAL-311309212 39 (e) The agreement to an extension of the Termination Date pursuant to paragraphs (b) or (c) above is at the sole discretion of each Lender and subject to the satisfaction of the conditions in paragraph (f) below and payment of any extension fee agreed at the time with extending Lenders. If a Lender rejects an Extension Request or does not respond to an Extension Request by the date falling 15 Business Days after the date the Extension Request is delivered to the Facility Agent (such Lender being a Non- Extending Lender), either that Lender will be repaid and its Commitment cancelled on the original Termination Date or the First Extended Termination Date (as applicable), or the Company may, on giving 10 Business Days' prior notice to the Facility Agent and that Lender, replace that Lender by requiring that Lender to (and, to the extent permitted by law, that Lender shall) transfer pursuant to Clause 23 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or other entity selected by the Company (which shall not be a member of the Group) and which confirms its willingness to assume and does assume all the obligations of the transferring Lender in accordance with Clause 23 (Changes to the Lenders) for a purchase price in cash or other cash payment payable at the time of the transfer equal to the outstanding principal amount of such Lender's participation in the outstanding Loans and all accrued interest (to the extent that the Facility Agent has not given a notification under Clause 23.12 (Pro rata interest settlement)), Break Costs (if any) and other amounts payable in relation thereto under the Finance Documents. (f) In relation to the delivery of an Extension Request: (i) no Default is continuing or has occurred on the date of the Extension Request; and (ii) the Repeating Representations are true and correct as at the date of delivery of an Extension Request. (g) A Non-Extending Lender shall only be obliged to transfer its rights and obligations pursuant to paragraph (e) above once it is satisfied that it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to that transfer to the replacement Lender. Such checks shall be performed promptly following delivery of a notice referred to in paragraph (e) above and the Lender shall notify the Facility Agent and the Company when it is satisfied that it has complied with those checks. (h) Upon the transfer of the rights and obligations of a Non-Extending Lender pursuant to this Clause 7.2 (Extension of Termination Date), the Termination Date in respect of the Commitment

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EUROPE-LEGAL-311309212 40 acquired by the relevant transferee will automatically be extended to be the Extended Termination Date that would have been applicable in respect of that Commitment if the relevant Non-Extending Lender had agreed to the relevant Extension Request. (i) The replacement of a Lender pursuant to paragraph 8.5(d) below shall be subject to the following conditions: (i) no Finance Party shall have any obligation to find a replacement Lender; (ii) any replacement pursuant to this Clause 7.2 (but subject to the other provisions of this Agreement) of a Lender which is the Facility Agent shall not affect its role as the Facility Agent; and (iii) any Lender replaced pursuant to this Clause 7.2 shall not be required to refund, or to pay or surrender to any other Lender, any of the fees or other amounts received by that Lender under any Finance Document. 8. Prepayment and Cancellation 8.1 Illegality If it becomes unlawful in any applicable jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its participation in any Loan: (a) that Lender shall promptly notify the Facility Agent upon becoming aware of that event; (b) upon the Facility Agent notifying the Company, the Available Commitment of that Lender will be immediately cancelled; and (c) each Borrower shall repay that Lender's participation in the Loans made to that Borrower on the last day of the Interest Period for each Loan occurring after the Facility Agent has notified the Company or, if earlier, the date specified by the Lender in the notice delivered to the Facility Agent (being no earlier than the last day of any applicable grace period permitted by law) and that Lender's corresponding Commitment shall be immediately cancelled in the amount of the participations repaid. 8.2 Change of control (a) If at any time any person or group of persons acting in concert gains control of the Company: (i) the Company shall promptly notify the Facility Agent upon becoming aware of that event; EUROPE-LEGAL-311309212 41 (ii) a Lender shall not be obliged to fund a Utilisation (except for a Rollover Loan); and (iii) if a Lender so requires and notifies the Facility Agent within 30 days of the Company notifying the Facility Agent of the event, the Facility Agent shall, by not less than 30 days' notice to the Company, cancel all of the Commitments of that Lender and declare the participation of that Lender in all outstanding Loans, together with accrued interest, and all other amounts accrued under the Finance Documents immediately due and payable, whereupon the Commitments of that Lender shall immediately cease to be available for further utilisation and all such Loans, accrued interest and other amounts shall become immediately due and payable. (b) For the purpose of paragraph (a) above control has the meaning given to it in section 1124 of the CTA 2010. (c) For the purpose of paragraph (a) above acting in concert has the meaning given to it in the City Code on Takeovers and Mergers. 8.3 Voluntary cancellation The Company may, if it gives the Facility Agent not less than three Business Days' (or such shorter period as the Majority Lenders may agree) prior notice in writing, cancel the whole or any part (being a minimum amount of $10,000,000) of the Available Facility. Any cancellation under this Clause 8.3 shall reduce the Commitments of the Lenders rateably. 8.4 Voluntary prepayment of Loans (a) Subject to paragraph (c) below, the Borrower to which a Loan has been made may, if it gives the Facility Agent not less than: (i) in the case of a Term Rate Loan, five Business Day's (or such shorter period as the Majority Lenders may agree) prior notice; or (ii) in the case of a Compounded Rate Loan, five RFR Banking Day's (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of a Loan (but if in part, being an amount that reduces the Base Currency Amount of the Loan by a minimum amount of $10,000,000). (b) Any prepayment of a Loan pursuant to this Clause 8.4 shall be applied pro rata to each Lender's participation in that Loan.

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EUROPE-LEGAL-311309212 42 (c) In the case of Compounded Rate Loans only, the Borrowers may not prepay more than four times in a calendar year other than on the last day of an Interest Period. 8.5 Right of repayment and cancellation in relation to, or replacement of, a single Lender (a) If: (i) any sum payable to any Lender by an Obligor is required to be increased under paragraph (c) of Clause 13.2 (Tax gross-up) except where such increase is required pursuant to Clause 13.2(e) (Tax gross-up); or (ii) any Lender claims indemnification from the Company under Clause 13.3 (Tax indemnity) or Clause 14.1 (Increased costs) the Company may, whilst the circumstance giving rise to the requirement or indemnification continues, give the Facility Agent notice of: (A) cancellation of the Commitment of that Lender; and/or (B) its intention to procure the repayment of that Lender's participation in the Loans; and/or (C) its intention to procure the repayment of that Lender's participation in the Loans to the specified Borrower in relation to which an event referred to in paragraphs (i) or (ii) has occurred; and/or (D) its intention to replace that Lender in accordance with paragraph (d) below. (b) On receipt of a notice referred to in paragraph (a) above (other than one providing only for repayment of the Lender's participation in the Loans to a specified Borrower), the Commitment of that Lender shall immediately be reduced to zero. (c) On the last day of each Interest Period which ends after the Company has given notice under paragraph (a) above (or, if earlier, the date specified by the Company in that notice), each Borrower (or, as the case may be, the specified Borrower) to which a Loan is outstanding shall repay that Lender's participation in that Loan and that Lender's corresponding Commitment shall be cancelled in the amount of the participations repaid. (d) The Company may, in the circumstances set out in paragraph (a) above, on five Business Days' prior notice to the Facility Agent and that Lender, replace that Lender by requiring that Lender to EUROPE-LEGAL-311309212 43 (and, to the extent permitted by law, that Lender shall) transfer pursuant to Clause 23 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or other entity selected by the Company (which shall not be a member of the Group) and which confirms its willingness to assume and does assume all the obligations of the transferring Lender in accordance with Clause 23 (Changes to the Lenders) for a purchase price in cash or other cash payment payable at the time of the transfer equal to the outstanding principal amount of such Lender's participation in the outstanding Loans and all accrued interest (to the extent that the Facility Agent has not given a notification under Clause 23.12 (Pro rata interest settlement)), Break Costs (if any) and other amounts payable in relation thereto under the Finance Documents. (e) The replacement of a Lender pursuant to paragraph (d) above shall be subject to the following conditions: (i) no Finance Party shall have any obligation to find a replacement Lender; (ii) any replacement pursuant to this Clause 8.5 (but subject to the other provisions of this Agreement) of a Lender which is the Facility Agent shall not affect its role as the Facility Agent; and (iii) any Lender replaced pursuant to this Clause 8.5 shall not be required to refund, or to pay or surrender to any other Lender, any of the fees or other amounts received by that Lender under any Finance Document. 8.6 Replacement of a Non-Consenting Lender (a) In this Clause 8.6, Non-Consenting Lender means any Lender which does not agree to a consent, waiver or amendment if: (i) the Company or the Facility Agent has requested a consent under or waiver or amendment of any provision of any Finance Document; (ii) that consent, waiver or amendment requires the agreement of all the Lenders; and (iii) the Super-Majority Lenders have agreed to that consent, waiver or amendment. (b) If any Lender becomes a Non-Consenting Lender, the Company may, if it gives the Facility Agent and that Lender not less than 5 Business Days' prior notice, arrange for the transfer of the whole (but not part only) of that Lender's Commitment and participations in the Utilisations at par to a new or existing Lender

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EUROPE-LEGAL-311309212 44 willing to accept that transfer and acceptable to the Company and the remaining Lenders. (c) The replacement of a Lender pursuant to this Clause 8.6 shall be subject to the following conditions: (i) no Finance Party shall have any obligation to find a replacement Lender; (ii) any replacement of a Non-Consenting Lender must take place no later than 180 days after the earlier of (A) the date the Non-Consenting Lender notified the Facility Agent of its refusal to agree to the relevant consent, waiver or amendment and (B) the deadline (being not less than 15 Business Days after the Lender received the request for the relevant consent, waiver or amendment) by which the Non-Consenting Lender failed to reply to that request; and (iii) any Lender replaced pursuant to this Clause 8.6 shall not be required to refund, or to pay or surrender to any other Lender, any of the fees or other amounts received by that Lender under any Finance Document. (d) Any replacement pursuant to this Clause 8.6 (but subject to the other provisions of this Agreement) of a Lender which is the Facility Agent shall not affect its role as the Facility Agent. 8.7 Right of cancellation in relation to a Defaulting Lender (a) If any Lender becomes a Defaulting Lender, the Company may, at any time whilst the Lender continues to be a Defaulting Lender, give the Facility Agent five Business Days' notice of cancellation of that Lender's Available Commitment. (b) On the notice referred to in paragraph (a) above becoming effective, each Available Commitment of the Defaulting Lender shall immediately be reduced to zero. (c) The Facility Agent shall as soon as practicable after receipt of a notice referred to in paragraph (a) above, notify all the Lenders. 8.8 Restrictions (a) Any notice of cancellation, prepayment or replacement given by any Party under this Clause 8 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment. (b) Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, (in relation to EUROPE-LEGAL-311309212 45 any Term Rate Loan only, subject to any Break Costs) without premium or penalty. (c) Unless a contrary indication appears in this Agreement, any part of the Facility which is prepaid may be reborrowed in accordance with the terms of this Agreement. (d) The Borrowers shall not repay or prepay all or any part of the Loans or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement. (e) Subject to Clauses 2.2 (Increase), no amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated. (f) If the Facility Agent receives a notice under this Clause 8 it shall promptly forward a copy of that notice to either the Company or the affected Lender, as appropriate. (g) If all or part of any Lender's participation in a Loan is repaid or prepaid and is not available for redrawing (other than by operation of Clause 4.2 (Further conditions precedent)), an amount of that Lender's Commitments (equal to the Base Currency Amount of the amount of the participation which is repaid or prepaid) will be deemed to be cancelled on the date of repayment or prepayment. 9. Interest 9.1 Calculation of interest – Term Rate Loans The rate of interest on each Term Rate Loan for an Interest Period is the percentage rate per annum which is the aggregate of the applicable: (a) Margin; (b) Term Reference Rate; and (c) Credit Adjustment Spread (if applicable). 9.2 Calculation of interest – Compounded Rate Loans (a) The rate of interest on each Compounded Rate Loan for any day during an Interest Period is the percentage rate per annum which is the aggregate of the applicable: (i) Margin; and (ii) Compounded Reference Rate for that day. (b) If any day during an Interest Period for a Compounded Rate Loan is not an RFR Banking Day, the rate of interest on that

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EUROPE-LEGAL-311309212 46 Compounded Rate Loan for that day will be the rate applicable to the immediately preceding RFR Banking Day. 9.3 Payment of interest The Borrower to which a Loan has been made shall pay accrued interest on that Loan on the last day of each Interest Period. 9.4 Default interest (a) If an Obligor fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to paragraph (b) below, is the sum of 1 per cent. and the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Loan in the currency of the overdue amount for successive Interest Periods, each of a duration selected by the Facility Agent (acting reasonably). Any interest accruing under this Clause 9.4 shall be immediately payable by the Obligor on demand by the Facility Agent. (b) If any overdue amount consists of all or part of a Term Rate Loan and which became due on a day which was not the last day of an Interest Period relating to that Loan: (i) the first Interest Period for that overdue amount shall have a duration equal to the unexpired portion of the current Interest Period relating to that Loan; and (ii) the rate of interest applying to the overdue amount during that first Interest Period shall be the sum of 1 per cent. and the rate which would have applied if the overdue amount had not become due. (c) Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue amount at the end of each Interest Period applicable to that overdue amount but will remain immediately due and payable. 9.5 Notification of rates of interest (a) The Facility Agent shall promptly notify the relevant Lenders and the relevant Borrower of the determination of a rate of interest relating to a Term Rate Loan. (b) The Facility Agent shall promptly upon a Compounded Rate Interest Payment being determinable notify: (i) the relevant Borrower of that Compounded Rate Interest Payment; EUROPE-LEGAL-311309212 47 (ii) each relevant Lender of the proportion of that Compounded Rate Interest Payment which relates to that Lender's participation in the relevant Compounded Rate Loan; and (iii) the relevant Lenders and the relevant Borrower of: (A) each applicable rate of interest relating to the determination of that Compounded Rate Interest Payment; and (B) to the extent it is then determinable, the Market Disruption Rate (if any) relating to the relevant Compounded Rate Loan. This paragraph (b) shall not apply to any Compounded Rate Interest Payment determined pursuant to Clause 11.3 (Cost of funds). (c) The Facility Agent shall promptly notify the relevant Borrower of each Funding Rate relating to a Loan. (d) The Facility Agent shall promptly notify the relevant Lenders and the relevant Borrower of the determination of a rate of interest relating to a Compounded Rate Loan to which Clause 11.3 (Cost of funds) applies. (e) This Clause 9.5 shall not require the Facility Agent to make any notification to any Party on a day which is not a Business Day. 10. Interest Periods 10.1 Selection of Interest Periods (a) A Borrower (or the Company on behalf of a Borrower) may select an Interest Period for a Loan in the Utilisation Request for that Loan. (b) Subject to this Clause 10, a Borrower (or the Company) may select an Interest Period of any period specified in the applicable Reference Rate Terms or of any other period agreed between the Company and the Facility Agent and all the Lenders in relation to the relevant Loan. (c) An Interest Period for a Loan shall not extend beyond the Termination Date. (d) A Loan has one Interest Period only. (e) Each Interest Period shall start on the Utilisation Date.

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EUROPE-LEGAL-311309212 48 10.2 Non-Business Days Any rules specified as "Business Day Conventions" in the applicable Reference Rate Terms for a Loan or Unpaid Sum shall apply to each Interest Period for that Loan or Unpaid Sum. 11. Changes to the Calculation of Interest 11.1 Interest calculation if no Primary Term Rate (a) Interpolated Primary Term Rate: If no Primary Term Rate is available for the Interest Period of a Term Rate Loan, the applicable Term Reference Rate shall be the Interpolated Primary Term Rate for a period equal in length to the Interest Period of that Loan. (b) Shortened Interest Period: If paragraph (a) above applies but it is not possible to calculate the Interpolated Primary Term Rate, the Interest Period of the Loan shall (if it is longer than the applicable Fallback Interest Period) be shortened to the applicable Fallback Interest Period and the applicable Term Reference Rate shall be determined pursuant to the definition of Term Reference Rate. (c) Shortened Interest Period and Historic Primary Term Rate: If paragraph (b) above applies but no Primary Term Rate is available for the Interest Period of that Loan and it is not possible to calculate the Interpolated Primary Term Rate, the applicable Term Reference Rate shall be the Historic Primary Term Rate for that Loan. (d) Shortened Interest Period and Interpolated Historic Primary Term Rate: If paragraph (c) above applies but no Historic Primary Term Rate is available for the Interest Period of the Loan, the applicable Term Reference Rate shall be the Interpolated Historic Primary Term Rate for a period equal in length to the Interest Period of that Loan. 11.2 Market disruption If: (a) a Market Disruption Rate is specified in the Reference Rate Terms for a Loan; and (b) before the Reporting Time for that Loan the Facility Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed 35 per cent. of that Loan) that the cost to it of funding its participation in that Loan would be in excess of that Market Disruption Rate, EUROPE-LEGAL-311309212 49 then Clause 11.3 (Cost of funds) shall apply to that Loan for the relevant Interest Period. 11.3 Cost of funds (a) If this Clause 11.3 applies to a Loan for an Interest Period, Clause 9.1 (Calculation of interest – Term Rate Loans) or Clause 9.2 (Calculation of interest – Compounded Rate Loans), as applicable, shall not apply to that Loan for that Interest Period and the rate of interest on each Lender's share of the relevant Loan for the relevant Interest Period shall be the percentage rate per annum which is the sum of: (i) the applicable Margin; and (ii) the weighted average of the rates notified to the Facility Agent by each Lender as soon as practicable and in any event by the Reporting Time for that Loan, to be that which expresses as a percentage rate per annum the cost to the relevant Lender of funding its participation in that Loan from whatever source it may reasonably select. (b) If this Clause 11.3 applies and the Facility Agent or the Company so requires, the Facility Agent and the Company shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute basis for determining the rate of interest. (c) Any alternative basis agreed pursuant to paragraph (b) above shall, with the prior consent of all the Lenders and the Company, be binding on all Parties. (d) If this Clause 11.3 applies but any Lender does not supply a quotation by the time specified in paragraph 11.3(a)(ii) above the rate of interest applicable to that Lender shall be calculated on the basis of the quotations of the remaining Lenders. 11.4 Break Costs (a) If an amount is specified as Break Costs in the Reference Rate Terms for a Loan or Unpaid Sum, each Borrower shall, within five Business Days of a demand by a Finance Party, pay to that Finance Party its Break Costs (if any) attributable to all or any part of that Loan or Unpaid Sum being paid by that Borrower on a day prior to the last day of an Interest Period for that Loan or Unpaid Sum. (b) Each Lender shall, together with its demand provide a certificate confirming the amount and basis of calculation of its Break Costs for any Interest Period in respect of which they become, or may become, payable.

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EUROPE-LEGAL-311309212 50 12. Fees 12.1 Commitment fee (a) The Company shall pay to the Facility Agent (for the account of each Lender) a fee in the Base Currency computed on a day to day basis at a percentage rate per annum equal to 35 per cent. of the relevant Margin which would apply to a Loan drawn on that day on that Lender's Available Commitment for the Availability Period. (b) The accrued commitment fee is payable on the last day of each successive period of three Months which ends during the Availability Period, on the last day of the Availability Period and, if cancelled in full, on the cancelled amount of the relevant Lender's Available Commitment at the time the cancellation is effective. (c) No commitment fee is payable to the Facility Agent (for the account of a Lender) on any Available Commitment of that Lender for any day on which that Lender is a Defaulting Lender. 12.2 Utilisation Fee The Borrower shall pay a utilisation fee which: (a) shall be calculated daily from the date of this Agreement and at the rate per annum (on the basis of a 360 day year) determined in accordance with the following table upon the daily Utilisation Level: Utilisation Level (%) Rate (%) Equal to or lower than 33.34% 0.10 Higher than 33.34% but equal to or lower than 66.67% 0.20 Higher than 66.67% 0.40 (b) shall be paid in arrear to the Facility Agent for the account of the Lenders on: (i) the date falling three months after the date of this Agreement; (ii) each date falling at three monthly intervals thereafter; and (iii) the Termination Date; and (c) shall be paid in arrear to the Facility Agent for the account of a particular Lender on the date on which that Lender's participations in the Facility are repaid. EUROPE-LEGAL-311309212 51 12.3 Agency fee The Company shall pay, or procure that the same is paid, to the Facility Agent (for its own account) an agency fee in the amount and at the times agreed in a Fee Letter. 12.4 Arrangement fee The Company shall pay, or procure that the same is paid, to the Facility Agent (for the account of each Mandated Lead Arranger) an arrangement fee in the amount and at the times agreed in a Fee Letter. 13. Tax Gross-Up and Indemnities 13.1 Definitions In this Agreement: Borrower DTTP Filing means an HM Revenue & Customs' Form DTTP2 duly completed and filed by the relevant Borrower, which: (a) where it relates to a Treaty Lender that is an Original Lender, contains the scheme reference number and jurisdiction of tax residence stated opposite that Lender's name in Schedule 1 (The Original Lenders); and (i) where the Borrower is an Original Borrower, is filed with HM Revenue & Customs within 30 days of the date of this Agreement; or (ii) where the Borrower is an Additional Borrower, is filed with HM Revenue & Customs within 30 days of the date on which that Borrower becomes an Additional Borrower; or (b) where it relates to a Treaty Lender that is not an Original Lender, contains the scheme reference number and jurisdiction of tax residence stated in respect of that Lender in the documentation which it executes on becoming a Party as Lender; and (i) where the Borrower is a Borrower as at the date on which that Treaty Lender becomes a Party as a Lender, is filed with HM Revenue & Customs within 30 days of that date; or (ii) where the Borrower is not a Borrower as at the date on which that Treaty Lender becomes a Party as a Lender, is filed with HM Revenue & Customs within 30 days of the date on which that Borrower becomes an Additional Borrower. Protected Party means a Finance Party which is or will be subject to any liability, or required to make any payment, for or on account of Tax

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EUROPE-LEGAL-311309212 52 in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document. Qualifying Lender means: (a) in respect of a payment of interest on a Loan advanced to a Borrower incorporated in the United Kingdom, a Lender which is beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document and is: (i) a Lender: (A) which is a bank (as defined for the purpose of section 879 of the ITA) making an advance under a Finance Document and is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance or would be within such charge as respects such payments apart from section 18A of the CTA 2009; or (B) in respect of an advance made under a Finance Document by a person that was a bank (as defined for the purpose of section 879 of the ITA) at the time that that advance was made and is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance; or (ii) a Lender which is: (A) a company resident in the United Kingdom for United Kingdom tax purposes; (B) a partnership each member of which is: (I) a company so resident in the United Kingdom; or (II) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (for the purposes of section 19 of the CTA 2009) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA 2009; or (C) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which EUROPE-LEGAL-311309212 53 brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA 2009) of that company; or (iii) a Treaty Lender; or (b) in respect of a payment of interest on a Loan advanced to a Borrower incorporated in the United Kingdom, a Lender which is a building society (as defined for the purposes of section 880 of the ITA) making an advance under a Finance Document; or (c) in respect of a payment of interest on a Loan advanced to a US Tax Obligor, a Lender which is beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document, is entitled to receive all payments of interest payable to it under a Finance Document without deduction or withholding of any US federal income Tax or US federal backup withholding Tax and has provided the appropriate Withholding Form to the Facility Agent and to the relevant Obligor required to establish an entitlement to a complete exemption from withholding; provided, however, that an Original Lender as of the date of this Agreement that does not otherwise satisfy the requirements set forth in this paragraph (c) shall nevertheless be considered a Qualifying Lender in respect of a payment of interest on a Loan advanced to a US Tax Obligor to the extent that (i) it delivers a Withholding Form claiming entitlement to the reduced rate of US federal income tax withholding specified in article 10(2) of the Treaty between the US and the People's Republic of China and (ii) it otherwise satisfies the requirements, as to an advance to a US Tax Obligor, to be a Treaty Lender whose Treaty State is the People's Republic of China (except as to being eligible for a full exemption from Tax imposed by the Source Jurisdiction on interest, as referred to in the definition of "Treaty State" as well as paragraph (c) of the definition of "Treaty Lender"). Tax Confirmation means a confirmation by a Lender that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either: (a) a company resident in the United Kingdom for United Kingdom tax purposes; or (b) a partnership each member of which is: (i) a company so resident in the United Kingdom; or (ii) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of

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EUROPE-LEGAL-311309212 54 section 19 of the CTA 2009) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA 2009; or (c) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA 2009) of that company. Tax Credit means a credit against, relief or remission for, or repayment of any Tax. Tax Deduction means a deduction or withholding for or on account of Tax from a payment under a Finance Document other than a FATCA Deduction. Tax Payment means either the increase in a payment made by an Obligor to a Finance Party under Clause 13.2 (Tax gross-up) or a payment under Clause 13.3 (Tax indemnity). Treaty Lender means a Lender which: (a) is treated as a resident of a Treaty State for the purposes of the Treaty; (b) does not carry on a business in the jurisdiction in which the Borrower making a payment is resident for Tax purposes (the Source Jurisdiction) through a permanent establishment with which that Lender's participation in the Loans is effectively connected; and (c) meets all other requirements in the Treaty for full exemption from Tax imposed by the Source Jurisdiction on interest payable under the Finance Documents (subject to the completion of any necessary procedural formalities), except that it will be assumed for these purposes that any such requirement relating to there not being a special relationship between the Borrower and a Lender or between both of them and some other person is met. Treaty State means a jurisdiction having a double taxation agreement (a Treaty) with the Source Jurisdiction which makes provision for full exemption from tax imposed by the Source Jurisdiction on interest. US Tax Obligor means: (a) a borrower which is resident for Tax purposes in the US; or (b) an Obligor some or all of whose payments under the Finance Documents are from sources within the US for US federal income tax purposes. EUROPE-LEGAL-311309212 55 UK Non-Bank Lender means a Lender which is not an Original Lender and which gives a Tax Confirmation in the documentation which it executes on becoming a Party as a Lender. Withholding Form means whichever of the following is applicable (including in each case any successor form): (a) IRS Form W-8BEN or W-8BEN-E, as applicable, that either: (i) includes a claim for an exemption from or reduction of US withholding tax under an applicable income tax treaty, with Part II of such W-8BEN (or part III of such W-8BEN- E, as applicable) completed; or (ii) if such claim for exemption is based on the "portfolio interest exemption" is accompanied by a certificate representing that such Lender is not any of the following: (A) a "bank" described in section 881(c)(3)(A) of the Code; (B) a "10 percent shareholder" of the relevant US Tax Obligor within the meaning of section 881(c)(3)(B) of the Code; (C) a "controlled foreign corporation" described in section 881(c)(3)(C) of the Code; or (D) conducting a trade or business in the US with which the relevant interest payments are effectively connected; or (iii) in the case of an Original Lender that is a Lender as of the date of this Agreement, includes a claim for the reduced rate of US federal income tax withholding specified in article 10(2) of the Treaty between the US and the People's Republic of China; or (b) IRS Form W-8ECI; (c) IRS Form W-8EXP; (d) IRS Form W-9; or (e) any other IRS form by which a person may claim complete exemption from, or reduction in the rate of, withholding (including backup withholding) of US federal income tax on interest payments to that person, which in each case may be provided directly or attached to an IRS Form W-8IMY (with all required attachments), as appropriate.

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EUROPE-LEGAL-311309212 56 Unless a contrary indication appears, in this Clause 13 a reference to determines or determined means a determination made in the absolute discretion of the person making the determination. 13.2 Tax gross-up (a) Each Obligor shall make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law. (b) The Company shall promptly upon becoming aware that an Obligor must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Facility Agent accordingly. Similarly, a Lender shall promptly notify the Facility Agent on becoming so aware in respect of a payment payable to that Lender. If the Facility Agent receives such notification from a Lender it shall promptly notify the Company and that Obligor. (c) If a Tax Deduction is required by law to be made by an Obligor, the amount of the payment due from that Obligor shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required. (d) A payment shall not be increased under paragraph (c) above by reason of a Tax Deduction on account of tax imposed by the Source Jurisdiction or by the US in the case of a US Tax Obligor, if on the date on which the payment falls due: (i) the payment could have been made to the relevant Lender without a Tax Deduction if the Lender had been a Qualifying Lender, but on that date that Lender is not or has ceased to be a Qualifying Lender other than as a result of any change after the date it became a Lender under this Agreement in (or in the interpretation, administration, or application of) any law or Treaty, or any published practice or published concession of any relevant taxing authority; or (ii) the relevant Lender is a Qualifying Lender solely by virtue of paragraph (a)(ii) of the definition of "Qualifying Lender" and; (A) an officer of HM Revenue & Customs has given (and not revoked) a direction (a Direction) under section 931 of the ITA which relates to the payment and that Lender has received from the Obligor making the payment or from the Company a certified copy of that Direction; and EUROPE-LEGAL-311309212 57 (B) the payment could have been made to the Lender without any Tax Deduction if that Direction had not been made; or (iii) the relevant Lender is a Qualifying Lender solely by virtue of (a)(ii) of the definition of "Qualifying Lender" and: (A) the relevant Lender has not given a Tax Confirmation to the Company; and (B) the payment could have been made to the Lender without any Tax Deduction if the Lender had given a Tax Confirmation to the Company, on the basis that the Tax Confirmation would have enabled the Company to have formed a reasonable belief that the payment was an "excepted payment" for the purpose of section 930 of the ITA; or (iv) the relevant Lender is a Treaty Lender and the Obligor making the payment is able to demonstrate that (assuming the completion of all necessary procedural formalities by the Obligor) the payment could have been made to the Lender without the Tax Deduction had that Lender complied with its obligations under paragraph (h) or (i) (as applicable) below; (v) the Tax Deduction is required as a result of a direction under regulation 9(b) of SI 1970/488 and the application of regulation 9(b) to that Lender does not result from a change after it became a Lender in (or the interpretation, administration or application of) any law or Treaty, or any published practice or concession of any relevant taxing authority; or (vi) the payment could have been made to the relevant Lender without the Tax Deduction had that Lender complied with its obligations under paragraph (m) below provided however that a Lender will not be treated as having failed to comply with its obligations under paragraph (m) below to the extent that a US Tax Obligor has notified the Facility Agent of its waiver of the requirements of paragraph (m) below with respect to such Lender. (e) Notwithstanding the provisions of paragraph (d) above, a payment shall be increased under paragraph (c) above by reason of a Tax Deduction on account of Tax imposed by the US in the case of a US Tax Obligor, if on the date on which the payment falls due, the relevant Lender is a Qualifying Lender solely by virtue of the proviso to paragraph (c) above of the definition of Qualifying Lender and has provided the Withholding Form specified in paragraph (a)(iii) of the definition of Withholding

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EUROPE-LEGAL-311309212 58 Form; provided that only Tax imposed at the reduced rate of US federal income tax withholding specified in article 10(2) of the Treaty between the US and the People's Republic of China shall be taken account under this paragraph (e). (f) If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law. (g) Within thirty days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Facility Agent for the Finance Party entitled to the payment a statement under section 975 of the ITA or evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority. (h) (i) Subject to paragraph (ii) below, a Treaty Lender and each Obligor which makes a payment to which that Treaty Lender is entitled shall co-operate in promptly completing any procedural formalities (including completing and submitting appropriate documents to the applicable tax authorities) necessary for that Obligor to obtain authorisation to make that payment without a Tax Deduction. (ii) (A) A Treaty Lender which is an Original Lender and that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its scheme reference number and its jurisdiction of tax residence opposite its name in Schedule 1 (The Original Lenders); and (B) a Treaty Lender which is not an Original Lender and that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its scheme reference number and its jurisdiction of tax residence in the documentation which it executes on becoming a Party as a Lender, and having done so, that Lender shall be under no obligation pursuant to paragraph (i) above. EUROPE-LEGAL-311309212 59 (iii) Each Lender severally warrants to the Company that it is a Qualifying Lender on the date it becomes a Party to this Agreement. If at any time after this Agreement is entered into any Lender becomes aware that it is not and will not or will cease to be a Qualifying Lender, it shall promptly notify the Facility Agent and the Company. (i) If a Lender has confirmed its scheme reference number and its jurisdiction of tax residence in accordance with paragraph (h)(ii) above and: (i) An Obligor making a payment to that Lender has not made a Borrower DTTP Filing in respect of that Lender; or (ii) An Obligor making a payment to that Lender has made a Borrower DTTP Filing in respect of that Lender but: (A) that Borrower DTTP Filing has been rejected by HM Revenue & Customs; or (B) HM Revenue & Customs has not given the Borrower authority to make payments to that Lender without a Tax Deduction within 60 days of the date of the Borrower DTTP Filing; or (C) HM Revenue & Customs has given the Borrower authority to make payments to that Lender without a Tax Deduction but such authority has subsequently been revoked or expired, and in each case, the Obligor has notified that Lender in writing, that Lender and the Obligor shall co-operate in completing any additional procedural formalities necessary for that Obligor to obtain authorisation to make that payment without a Tax Deduction. (j) If a Lender has not confirmed its scheme reference number and jurisdiction of tax residence in accordance with paragraph (h)(ii) above, no Obligor shall make a Borrower DTTP Filing or file any other form relating to the HMRC DT Treaty Passport scheme in respect of that Lender's Commitment or its participation in any Loan unless the Lender otherwise agrees. (k) An Obligor shall, promptly on making a Borrower DTTP Filing, deliver a copy of that Borrower DTTP Filing to the Facility Agent for delivery to the relevant Lender. (l) A UK Non-Bank Lender shall promptly notify the Company and the Facility Agent if there is any change in the position from that set out in the Tax Confirmation.

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EUROPE-LEGAL-311309212 60 (m) With respect to an advance made under a Finance Document to a US Tax Obligor, each Lender shall within thirty days after the date of this Agreement and thereafter, to the extent it is legally entitled to do so, if reasonably requested by the Facility Agent or such US Tax Obligor or Guarantor thereof, provide to the Facility Agent and to such US Tax Obligor, a duly completed and executed applicable Withholding Form and shall update such form upon the information on such form becoming incorrect. 13.3 Tax indemnity (a) The Company shall (within five Business Days of demand by the Facility Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of a Finance Document. (b) Paragraph (a) above shall not apply: (i) with respect to any Tax assessed on a Finance Party: (A) under the law of the jurisdiction in which that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is treated as resident for tax purposes; or (B) under the law of the jurisdiction in which that Finance Party's Facility Office is located in respect of amounts received or receivable in that jurisdiction, if that Tax is imposed on or calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that Finance Party; or (ii) to the extent a loss, liability or cost: (A) is compensated for by an increased payment under Clause 13.2 (Tax gross-up); or (B) would have been compensated for by an increased payment under Clause 13.2 (Tax gross-up) but was not so compensated solely because one of the exclusions in paragraph (d) of Clause 13.2 (Tax gross-up) applied; or (C) relates to a FATCA Deduction required to be made by a Party; or (D) is (i) in respect of an amount of stamp duty, registration or other similar Tax or (ii) attributable EUROPE-LEGAL-311309212 61 to VAT (which shall be dealt with in accordance with Clause 13.6 (Stamp taxes) and Clause 13.7 (Value added tax) respectively). (c) A Protected Party making, or intending to make, a claim under paragraph (a) above shall promptly notify the Facility Agent of the event which will give, or has given, rise to the claim, following which the Facility Agent shall promptly notify the Company. (d) A Protected Party shall, on receiving a payment from an Obligor under this Clause 13.3, notify the Facility Agent. 13.4 Tax Credit If an Obligor makes a Tax Payment and the relevant Finance Party determines that: (a) a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was required; and (b) that Finance Party has obtained and utilised that Tax Credit, the Finance Party shall pay an amount to the Obligor which that Finance Party determines will leave it (after that payment) in the same after-Tax position as it would have been in had the Tax Payment not been required to be made by the Obligor. 13.5 Lender status confirmation (a) Each Lender which is not an Original Lender shall indicate, in the documentation which it executes on becoming a Party as a Lender, and for the benefit of the Facility Agent and without liability to any Obligor, which of the following categories it falls in: (i) not a Qualifying Lender; (ii) a Qualifying Lender (other than a Treaty Lender); or (iii) a Treaty Lender. (b) If such a Lender fails to indicate its status in accordance with this Clause 13.5 then that Lender shall be treated for the purposes of this Agreement (including by each Obligor) as if it is not a Qualifying Lender until such time as it notifies the Facility Agent which category applies (and the Facility Agent, upon receipt of such notification, shall inform the Company). For the avoidance of doubt, the documentation which a Lender executes on becoming a Party as a Lender shall not be invalidated by any failure of a Lender to comply with this Clause 13.5.

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EUROPE-LEGAL-311309212 62 13.6 Stamp taxes The Company shall pay and, within five Business Days of demand, indemnify each Finance Party against any cost, loss or liability that Finance Party incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document. 13.7 Value added tax (a) All amounts expressed to be payable under a Finance Document by any Party to a Finance Party which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, subject to paragraph (b) below, if VAT is or becomes chargeable on any supply made by any Finance Party to any Party under a Finance Document and such Finance Party is required to account to the relevant tax authority for the VAT, that Party must pay to such Finance Party (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and such Finance Party must promptly provide an appropriate VAT invoice to that Party). (b) If VAT is or becomes chargeable on any supply made by any Finance Party (the Supplier) to any other Finance Party (the Recipient) under a Finance Document, and any Party other than the Recipient (the Relevant Party) is required by the terms of any Finance Document to pay an amount equal to the consideration for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration): (i) (where the Supplier is the person required to account to the relevant tax authority for the VAT) the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount of the VAT. The Recipient must (where this paragraph (i) applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the Recipient receives from the relevant tax authority which the Recipient reasonably determines relates to the VAT chargeable on that supply; and (ii) (where the Recipient is the person required to account to the relevant tax authority for the VAT) the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT chargeable on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or EUROPE-LEGAL-311309212 63 repayment from the relevant tax authority in respect of that VAT. (c) Where a Finance Document requires any Party to reimburse or indemnify a Finance Party for any cost or expense, that Party shall reimburse or indemnify (as the case may be) such Finance Party for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that such Finance Party reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority. (d) Any reference in this Clause 13.7 to any Party shall, at any time when such Party is treated as a member of a group or unity (or fiscal unity) for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to representative member of such group at such time (the term representative member to have the same meaning as in the Value Added Tax Act 1994) or, in the case of the grouping rules provided for in Article 11 of Council Directive 2006/112/EC (or as implemented by the relevant member state of the European Union) or any other similar provision in any jurisdiction which is not a member state of the European Union, the person who is treated as making the supply, or (as appropriate) receiving the supply so that a reference to a Party shall be construed as a reference to that Party or the relevant group or unity (or fiscal unity) of which that Party is a member for VAT purposes at the relevant time or the relevant representative member (or head) of that group or unity (or fiscal unity) at the relevant time (as the case may be). (e) In relation to any supply made by a Finance Party to any Party under a Finance Document, if reasonably requested by such Finance Party, that Party must promptly provide such Finance Party with details of that Party's VAT registration and such other information as is reasonably requested in connection with such Finance Party's VAT reporting requirements in relation to such supply. 13.8 FATCA Information (a) Subject to paragraph (c) below, each Party shall, within ten Business Days of a reasonable request by another Party: (i) confirm to that other Party whether it is: (A) a FATCA Exempt Party; or (B) not a FATCA Exempt Party; (ii) supply to that other Party such forms, documentation and other information relating to its status under FATCA as that

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EUROPE-LEGAL-311309212 64 other Party reasonably requests for the purposes of that other Party's compliance with FATCA; and (iii) supply to that other Party such forms, documentation and other information relating to its status as that other Party reasonably requests for the purposes of that other Party's compliance with any other law, regulation, or exchange of information regime. (b) If a Party confirms to another Party pursuant to paragraph (a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not or has ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly. (c) Paragraph (a) above shall not oblige any Finance Party to do anything, and paragraph (a)(iii) above shall not oblige any other Party to do anything, which would or might in its reasonable opinion constitute a breach of: (i) any law or regulation; (ii) any fiduciary duty; or (iii) any duty of confidentiality. (d) If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation or other information requested in accordance with paragraph (a)(i) or (ii) above (including, for the avoidance of doubt, where paragraph (c) above applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation or other information. (e) If an Obligor is a US Tax Obligor or the Facility Agent reasonably believes that its obligations under FATCA or any other applicable law or regulation require it, each Lender shall, within ten Business Days of: (i) where an Obligor is a US Tax Obligor and the relevant Lender is an Original Lender, the date of this Agreement; (ii) where an Obligor is a US Tax Obligor on a date on which any other Lender becomes a Party as a Lender, that date; (iii) the date a new US Tax Obligor accedes as a Party; or (iv) where an Obligor is not a US Tax Obligor, the date of a request from the Facility Agent, supply to the Facility Agent: EUROPE-LEGAL-311309212 65 (A) a withholding certificate on an applicable IRS Form W-8, Form W-9 or any other relevant form; or (B) any withholding statement or other document, authorisation or waiver as the Facility Agent may require to certify or establish the status of such Lender under FATCA or that other law or regulation. (f) The Facility Agent shall provide any withholding certificate, withholding statement, document, authorisation or waiver it receives from a Lender pursuant to paragraph (e) above to the relevant Party. (g) If any withholding certificate, withholding statement, document, authorisation or waiver provided to the Facility Agent by a Lender pursuant to paragraph (e) above is or becomes materially inaccurate or incomplete, that Lender shall promptly update it and provide such updated withholding certificate, withholding statement, document, authorisation or waiver to the Facility Agent unless it is unlawful for the Lender to do so (in which case the Lender shall promptly notify the Facility Agent). The Facility Agent shall provide any such updated withholding certificate, withholding statement, document, authorisation or waiver to the relevant Party. (h) The Facility Agent may rely on any withholding certificate, withholding statement, document, authorisation or waiver it receives from a Lender pursuant to Clause 13.8(e) or Clause 13.8(g) above without further verification. The Facility Agent shall not be liable for any action taken by it under or in connection with Clauses 13.8(e), 13.8(f) or 13.8(g) above. 13.9 FATCA Deduction (a) Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction. (b) Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction), notify the Party to whom it is making the payment and, in addition, shall notify the Company and the Facility Agent and the Facility Agent shall notify the other Finance Parties.

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EUROPE-LEGAL-311309212 66 13.10 Nonqualified Intermediary The Facility Agent agrees to provide any US Tax Obligor with a properly completed and duly executed IRS Form W-8IMY indicating its status as a "nonqualified intermediary" with respect to the payments it receives for the account of other Lenders under any Finance Document, and all required information statements, attachments and backup documentation (including without limitation a withholding statement and any forms pursuant to Clause 13.2(m) (Tax gross-up) provided by the Lenders or any other person for which the Facility Agent is acting as an intermediary within the meaning of Section 1441 of the US Treasury Regulations) required by any US Tax Obligor to fully comply with any applicable withholding and information reporting obligations, and shall update or replace any previously provided documentation upon such documentation becoming obsolete, incorrect or upon its expiration. 14. Increased Costs 14.1 Increased Costs (a) Subject to Clause 14.3 (Exceptions) the Company shall, within five Business Days of a demand by the Facility Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of: (i) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation; or (ii) compliance with any law or regulation made after the date of this Agreement, provided, that notwithstanding anything herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith shall be deemed to have been introduced after the date of this Agreement, regardless of the date enacted, adopted or issued. (b) In this Agreement, Increased Costs means: (i) a reduction in the rate of return from the Facility or on a Finance Party's (or its Affiliate's) overall capital; (ii) an additional or increased cost; or (iii) a reduction of any amount due and payable under any Finance Document, which is incurred or suffered by a Finance Party or any of its Affiliates to the extent that it is attributable to that Finance Party EUROPE-LEGAL-311309212 67 having entered into its Commitment or funding or performing its obligations under any Finance Document. 14.2 Increased Cost claims (a) A Finance Party intending to make a claim pursuant to Clause 14.1 (Increased Costs) shall notify the Facility Agent of the event giving rise to the claim, following which the Facility Agent shall promptly notify the Company. (b) Each Finance Party shall, as soon as practicable after a demand by the Facility Agent, provide a certificate confirming the amount and reasonable details of the basis therefor. 14.3 Exceptions (a) Clause 14.1 (Increased Costs) does not apply to the extent any Increased Cost is: (i) attributable to a Tax Deduction required by law to be made by an Obligor; (ii) attributable to a FATCA Deduction required to be made by a Party; (iii) compensated for by Clause 13.3 (Tax indemnity) (or would have been compensated for under Clause 13.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in paragraph (b) of Clause 13.3 (Tax indemnity) applied); (iv) in respect of an amount of (i) stamp duty, registration or other similar Tax or (ii) VAT (which shall be dealt with in accordance with accordance with Clause 13.6 (Stamp taxes) and Clause 13.7 (Value added tax) respectively); (v) attributable to the negligence or wilful breach by the relevant Finance Party or its Affiliates of any law or regulation; or (vi) attributable to the implementation or application of or compliance with the "International Convergence of Capital Measurement and Capital Standards, a Revised Framework" published by the Basel Committee on Banking Supervision in June 2004 in the form existing on the date of this Agreement (but excluding any amendment arising out of Basel III) (Basel II) or any other law or regulation which implements Basel II (whether such implementation, application or compliance is by a government, regulator, Finance Party or any of its Affiliates).

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EUROPE-LEGAL-311309212 68 (b) In this Clause 14.3, a reference to a Tax Deduction has the same meaning given to the term in Clause 13.1 (Definitions). 15. Other Indemnities 15.1 Currency indemnity (a) If any sum due from an Obligor under the Finance Documents (a Sum), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the First Currency) in which that Sum is payable into another currency (the Second Currency) for the purpose of: (i) making or filing a claim or proof against that Obligor; (ii) obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings, that Obligor shall as an independent obligation, within five Business Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum. (b) Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to be payable. 15.2 Other indemnities The Company shall (or shall procure that an Obligor will), within five Business Days of demand, indemnify each Finance Party against any cost, loss or liability incurred by that Finance Party as a result of: (a) the occurrence of any Event of Default; (b) a failure by an Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of Clause 27 (Sharing among the Finance Parties); (c) funding, or making arrangements to fund, its participation in a Loan requested by a Borrower in a Utilisation Request but not made by reason of the operation of any one or more of the provisions of this Agreement (other than by reason of default or negligence by that Finance Party alone); or EUROPE-LEGAL-311309212 69 (d) a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by a Borrower or the Company. 15.3 Indemnity to the Facility Agent The Company shall promptly indemnify the Facility Agent against any cost, loss or liability incurred by the Facility Agent (acting reasonably) as a result of: (a) investigating any event which it reasonably believes is an Event of Default; or (b) acting or relying on any notice, request or instruction made by an Obligor which it reasonably believes to be genuine, correct and appropriately authorised. 16. Mitigation by the Lenders 16.1 Mitigation (a) Each Finance Party shall, in consultation with the Company, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 8.1 (Illegality), Clause 13 (Tax gross-up and indemnities), Clause 14.1 (Increased Costs) including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office. (b) Paragraph (a) above does not in any way limit the obligations of any Obligor under the Finance Documents. 16.2 Limitation of liability (a) The Company shall indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 16.1 (Mitigation). (b) A Finance Party is not obliged to take any steps under Clause 16.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it. 17. Costs and Expenses 17.1 Transaction expenses The Company shall promptly on demand pay the Facility Agent and the Arranger the amount of all reasonable costs and expenses (including legal fees subject to any estimates and caps as agreed between the Company and the Facility Agent) reasonably incurred by any of them (subject to a maximum in respect of legal fees as agreed with the Company) in connection with the negotiation, preparation, printing and execution of:

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EUROPE-LEGAL-311309212 70 (a) this Agreement and any other documents referred to in this Agreement; and (b) any other Finance Documents executed after the date of this Agreement. 17.2 Amendment costs If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required pursuant to Clause 28.10 (Change of currency), the Company shall, within five Business Days of demand, reimburse the Facility Agent for the amount of all reasonable costs and expenses (including legal fees) reasonably incurred by the Facility Agent in evaluating, negotiating or complying with that request. 17.3 Enforcement costs The Company shall, within five Business Days of demand, pay to each Finance Party the amount of all costs and expenses (including legal fees) incurred by that Finance Party in connection with the enforcement of, or the preservation of any rights under, any Finance Document. 18. Guarantee and Indemnity 18.1 Guarantee and indemnity Each Guarantor irrevocably and unconditionally jointly and severally: (a) guarantees to each Finance Party punctual performance by each Borrower of all that Borrower's payment obligations under the Finance Documents (including, without limitation, all amounts which, but for any U.S. Debtor Relief Law, would become due and payable and all interest accruing after the commencement of any proceeding under a U.S. Debtor Relief Law at the rate provided for in the relevant Finance Document, whether or not allowed in any such proceeding); (b) undertakes with each Finance Party that whenever a Borrower does not pay any amount when due under or in connection with any Finance Document, that Guarantor shall immediately on demand pay that amount as if it was the principal obligor; and (c) agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of a Borrower not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would have been due. The amount payable by a Guarantor under this indemnity will not exceed the amount it would have had to EUROPE-LEGAL-311309212 71 pay under this Clause 18 if the amount claimed had been recoverable on the basis of a guarantee. Notwithstanding anything to the contrary herein, upon any Automatic Acceleration Event any presentment, demand, protest or notice of any kind required by the foregoing clauses are expressly waived. 18.2 Continuing guarantee This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by any Obligor under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part. 18.3 Reinstatement If any discharge, release or arrangement (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is made by a Finance Party in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of each Guarantor under this Clause 18 will continue or be reinstated as if the discharge, release or arrangement had not occurred. 18.4 Waiver of defences The obligations of each Guarantor under this Clause 18 will not be affected by an act, omission, matter or thing which, but for this Clause, would reduce, release or prejudice any of its obligations under this Clause 18 (without limitation and whether or not known to it or any Finance Party) including: (a) any time, waiver or consent granted to, or composition with, any Obligor or other person; (b) the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor of any member of the Group; (c) the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any Obligor or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security; (d) any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor or any other person; (e) any amendment, novation, supplement, extension, restatement (however fundamental and whether or not more onerous) or

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EUROPE-LEGAL-311309212 72 replacement of any Finance Document or any other document or security including without limitation any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under any Finance Document or other document or security; (f) any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or security; or (g) any insolvency or similar proceedings. 18.5 Guarantee Limitation: Fraudulent Conveyance Notwithstanding anything to the contrary in this Clause 18, the maximum aggregate amount recoverable from any US Guarantor under this Clause 18 shall in no event exceed an amount equal to the largest amount that would not render such US Guarantor's obligations under this Clause 18 subject to avoidance under any applicable US federal or state fraudulent obligation, transfer or conveyance law, including Section 548 of the US Bankruptcy Code. 18.6 Guarantee Limitation – Excluded Swap Obligations (a) Any term or provision of this Clause 18 or any other term in this Agreement or any other Finance Document notwithstanding: (i) no US Guarantor shall be liable for any Excluded Swap Obligation; (ii) each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Guarantor to honour all of its obligations under the Finance Documents in respect of Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this paragraph (b)(ii) for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Clause 18, or otherwise under the Finance Documents, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of each Qualified ECP Guarantor under this paragraph (b)(ii) shall remain in full force and effect until the discharge or release of its guarantee pursuant to the terms of the Finance Documents. Each Qualified ECP Guarantor intends that this paragraph (b)(ii) constitutes, and shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each other Obligor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act. EUROPE-LEGAL-311309212 73 18.7 Immediate recourse Each Guarantor waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from that Guarantor under this Clause 18. This waiver applies irrespective of any law or any provision of a Finance Document to the contrary. 18.8 Appropriations Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee or agent on its behalf) may: (a) refrain from applying or enforcing any other moneys, security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and no Guarantor shall be entitled to the benefit of the same; and (b) hold in an interest-bearing suspense account any moneys received from any Guarantor or on account of any Guarantor's liability under this Clause 18. 18.9 Deferral of Guarantors' rights (a) Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full and unless the Facility Agent otherwise directs, no Guarantor will exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents or by reason of any amount being payable, or liability arising, under this Clause 18: (i) to be indemnified by an Obligor; (ii) to claim any contribution from any other guarantor of any Obligor's obligations under the Finance Documents; (iii) to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under the Finance Documents or of any other guarantee or security taken pursuant to, or in connection with, the Finance Documents by any Finance Party; (iv) to bring legal or other proceedings for an order requiring any Obligor to make any payment, or perform any obligation, in respect of which any Guarantor has given a guarantee, undertaking or indemnity under Clause 18.1 (Guarantee and Indemnity);

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EUROPE-LEGAL-311309212 74 (v) to exercise any right of set-off against any Obligor; and/or (vi) to claim or prove as a creditor of any Obligor in competition with any Finance Party. (b) If a Guarantor receives any benefit, payment or distribution in relation to such rights it shall hold that benefit, payment or distribution to the extent necessary to enable all amounts which may be or become payable to the Finance Parties by the Obligors under or in connection with the Finance Documents to be repaid in full on trust for the Finance Parties and shall promptly pay or transfer the same to the Facility Agent or as the Facility Agent may direct for application in accordance with Clause 28 (Payment mechanics). 18.10 Release of Guarantors' right of contribution If any Guarantor (a Retiring Guarantor) ceases to be a Guarantor in accordance with the terms of the Finance Documents for the purpose of any sale or other disposal of that Retiring Guarantor then on the date such Retiring Guarantor ceases to be a Guarantor: (a) that Retiring Guarantor is released by each other Guarantor from any liability (whether past, present or future and whether actual or contingent) to make a contribution to any other Guarantor arising by reason of the performance by any other Guarantor of its obligations under the Finance Documents; and (b) each other Guarantor waives any rights it may have by reason of the performance of its obligations under the Finance Documents to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under any Finance Document or of any other security taken pursuant to, or in connection with, any Finance Document where such rights or security are granted by or in relation to the assets of the Retiring Guarantor. 18.11 Additional security This guarantee is in addition to and is not in any way prejudiced by any other guarantee or security now or subsequently held by any Finance Party. 19. Representations Each Obligor makes the representations and warranties set out in this Clause 19 to each Finance Party, on the date of this Agreement. 19.1 Status (a) It is a corporation, duly incorporated and validly existing under the law of its jurisdiction of incorporation. EUROPE-LEGAL-311309212 75 (b) It and each of its Material Subsidiaries has the power to own its assets and carry on its business as it is being conducted. 19.2 Binding obligations The obligations expressed to be assumed by it in each Finance Document are subject to any general principles of law limiting its obligations which are specifically referred to in any legal opinion delivered pursuant to Clause 4 (Conditions of Utilisation) or Clause 24 (Changes to the Obligors) legal, valid, binding and enforceable obligations. 19.3 Non-conflict with other obligations The entry into and performance by it of, and the transactions contemplated by, the Finance Documents do not and will not conflict with: (a) any law or regulation applicable to it; (b) its constitutional documents; or (c) any agreement or instrument binding upon it or any of its Subsidiaries or any of its or any of its Subsidiaries' assets breach of which would have a Material Adverse Effect. 19.4 Power and authority It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Finance Documents to which it is a party and the transactions contemplated by those Finance Documents. 19.5 Validity and admissibility in evidence All Authorisations required: (a) to enable it lawfully to enter into, exercise its rights and comply with its obligations in the Finance Documents to which it is a party; and (b) to make the Finance Documents to which it is a party admissible in evidence in its jurisdiction of incorporation, have been obtained or effected and are in full force and effect (or, in each case, will be when required). 19.6 No default (a) No Event of Default is continuing or could reasonably be expected to result from the making of any Utilisation. (b) No other event or circumstance is outstanding which constitutes a default under any other agreement or instrument which is binding on it or any of its Subsidiaries or to which its (or any of

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EUROPE-LEGAL-311309212 76 its Subsidiaries') assets are subject which has or could reasonably be expected to have a Material Adverse Effect. 19.7 Financial statements (a) The Original Financial Statements were prepared in accordance with IFRS consistently applied. (b) The Original Financial Statements fairly represent the consolidated financial condition and operations of the Group during the relevant financial period. (c) There has been no material adverse change in the business or financial condition of the Group since the date to which the Original Financial Statements were drawn up. 19.8 Pari passu ranking Its payment obligations under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally. 19.9 No proceedings pending or threatened No litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which are reasonably likely to be adversely determined and, if adversely determined, could be reasonably likely to have a Material Adverse Effect have (to the best of its knowledge and belief) been started or threatened against it or any of its Subsidiaries. 19.10 No misleading information (a) Any written factual information provided by or on behalf of any member of the Group for the purposes of the entry into of this Agreement by a Finance Party, was true and accurate in all material respects as at the date it was provided or as at the date (if any) at which it is stated. (b) Nothing has occurred since the date of delivery of, or been omitted from, the factual information referred to in paragraph (a) above and no information has been given or withheld that results in the information referred to in paragraph (a) being untrue or misleading in any material respect. (c) The representations and warranties in this Clause 19.10 are made by the Company only. 19.11 Sanctions (a) Neither it nor any of its Subsidiaries, nor any directors or officers of it or any of its Subsidiaries: EUROPE-LEGAL-311309212 77 (i) is a Sanctioned Person; (ii) is doing any business in any Sanctioned Territory; or (iii) to its knowledge, is engaging, directly or indirectly, in any trade, business or other activities that is in breach of any Sanctions Law in any material respect. (b) This Clause 19.11 shall not apply to or in favour of any person if and to the extent that it would result in a breach by, or in respect of that person, of any applicable Blocking Law. 19.12 Anti-bribery and corruption It and each of its Subsidiaries has, to its knowledge, conducted its business in compliance with any applicable Anti-Bribery and Corruption Law and has instituted and maintains policies and procedures designed to achieve, and which are reasonably expected to continue to achieve, compliance therewith. 19.13 United States Laws No US Group Member is an "investment company" as defined in, or is required to be registered under, the US Investment company Act of 1940. 19.14 Federal Reserve Regulations (a) No Obligor is engaged or will engage, principally or as one of its important activities, in the business of purchasing or carrying Margin Stock or extending credit for the purpose of purchasing or carrying Margin Stock. (b) None of the proceeds of the Loans or other extensions of credit under this Agreement will be used, directly or indirectly, for the purpose of buying or carrying any Margin Stock, for the purpose of reducing or retiring any Financial Indebtedness that was originally incurred to buy or carry any Margin Stock or for any other purpose which might cause all or any Loans or other extensions of credit under this Agreement to be considered a "purpose credit" within the meaning of Regulation U or Regulation X, in each case, to the extent any such usage will violate Regulation U or Regulation X. 19.15 ERISA Compliance (a) Each Plan (other than a Multiemployer Plan) and, to the knowledge of each Obligor, each Multiemployer Plan is in compliance with applicable laws and regulations except where any failure to comply would not reasonably be expected to, individually or taken together with any other such failures,

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EUROPE-LEGAL-311309212 78 materially impair the Obligor's ability to perform its obligations under the Finance Documents. (b) No ERISA Event has occurred, is continuing or is reasonably likely to occur that could, individually or in the aggregate, reasonably be expected to materially impair the Obligor's ability to perform its obligations under the Finance Documents. (c) There are no actions, suits or claims pending against or involving a Plan (other than routine claims for benefits) or, to the knowledge of any Obligor or any ERISA Affiliate, threatened, which would reasonably be expected to be asserted successfully against any Plan and, if so asserted successfully, could reasonably be expected either singly or in the aggregate to impair the Obligor's ability to perform its obligations under the Finance Documents. (d) To the knowledge of each Obligor and each ERISA Affiliate, no Multiemployer Plan is or is reasonably likely to become insolvent for purposes of Title IV of ERISA, except where any such insolvency would not reasonably be expected to materially impair the Obligor's ability to perform its obligations under the Finance Documents. (e) No member of the Group has any underlying assets which constitute "plan assets" within the Plan Asset Rules. 19.16 Solvency The Company represents and warrants to each Finance Party that, as of the date of this Agreement, after giving effect to the consummation of the transaction described herein (including after giving effect to the making of the Loans under this Agreement on each Utilisation Date and the application of the proceeds thereof): (a) the fair value of the assets of the Company and its subsidiaries on a consolidated basis exceeds the aggregate amount of the debts (including its obligations under the Finance Documents) of the Company and its subsidiaries on a consolidated basis; (b) the capital of the Company and its subsidiaries on a consolidated basis is not unreasonably small in relation to the business of the Company and its subsidiaries being conducted as of the Utilisation Date; (c) the Company and its subsidiaries, taken as a whole, have not incurred and do not intend to incur debts beyond their ability to pay as they mature in the ordinary course of business; and (d) the Company and its Subsidiaries, taken as a whole, are not engaged in a business or a transaction, and are not about to EUROPE-LEGAL-311309212 79 engage in a business or a transaction, for which their property would constitute an unreasonably small capital. For purposes of the foregoing, (i) it is assumed that the debts and other obligations under this Agreement will become due at their respective maturities and (ii) the amount of contingent liabilities have been computed as the amount that, in light of all the facts and circumstances existing on the date this representation and warranty is made, can reasonably be expected to become an actual or matured liability. 19.17 Repetition The Repeating Representations are deemed to be made by each Obligor by reference to the facts and circumstances then existing on: (a) the date of each Utilisation Request, the first day of each Interest Period and the date of each Extension Request; and (b) in the case of an Additional Obligor, the day on which the company becomes (or it is proposed that the company becomes) an Additional Obligor. 20. Information Undertakings The undertakings in this Clause 20 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force. 20.1 Financial statements The Company shall supply to the Facility Agent in sufficient copies for all the Lenders: (a) as soon as the same become available, but in any event: (i) within 120 days after the end of each of its financial years, its audited consolidated financial statements for that financial year; (ii) within 180 days after the end of each of its financial years, the financial statements of each other Obligor for that financial year (which shall be audited if that Obligor produces audited financial statements); and (b) as soon as the same become available, but in any event within 90 days after the end of the first half of each of its financial years, its consolidated financial statements for that financial half year. 20.2 Requirements as to financial statements (a) Each set of financial statements delivered by the Company pursuant to paragraph (a) of Clause 20.1 (Financial statements) shall be certified by an authorised signatory on behalf of the relevant company as fairly representing its (or, as the case may

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EUROPE-LEGAL-311309212 80 be, its consolidated) financial condition and operations as at the end of and for the period in relation to which those financial statements were drawn up. (b) The Company shall procure that each set of financial statements delivered pursuant to paragraph (a) of Clause 20.1 (Financial statements) is prepared using IFRS. 20.3 ERISA-Related Information Each Obligor Shall: (a) (i) promptly upon written request of the Facility Agent, deliver thereto copies of each annual and other return, report or valuation with respect to each Pension Plan or Multiemployer Plan, as filed with any applicable governmental authority and (ii) promptly following receipt thereof, deliver to the Facility Agent copies of (A) any documents described in Sections 101(k) or 101(l) of ERISA that any US Obligor or any ERISA Affiliate may request with respect to any Multiemployer Plan and (B) any documents described in Section 101(f) of ERISA that any US Obligor or any ERISA Affiliate receives with respect to any Multiemployer Plan; (b) promptly and in any event within 15 Business Days after any US Obligor or any ERISA Affiliate knows that an ERISA Event has occurred and that such ERISA Event has or could reasonably be expected to materially impair its ability to perform its obligations under the Finance Documents, deliver to the Facility Agent a statement of the finance director of the Parent or other officer acceptable to the Facility Agent (acting reasonably) of such US Obligor describing such occurrence and the action, if any, that such US Obligor or such ERISA Affiliate has taken and proposes to take with respect thereto; and (c) promptly and in any event within 15 days after receipt thereof by any Obligor or any ERISA Affiliate, deliver to the Facility Agent copies of each notice from the PBGC stating its intention to terminate any Plan or to have a trustee appointed to administer any Plan if the same could reasonably be expected to have a Material Adverse Effect. 20.4 Information: miscellaneous The Company shall supply to the Facility Agent (in sufficient copies for all the Lenders, if the Facility Agent so requests): (a) all documents dispatched by the Company to its shareholders (or any class of them) or its creditors generally at the same time as they are dispatched; EUROPE-LEGAL-311309212 81 (b) promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against any member of the Group, and which might, if adversely determined, have a Material Adverse Effect; and (c) promptly, such further information regarding the financial condition, business and operations of any member of the Group as any Finance Party (through the Facility Agent) may reasonably request except to the extent that disclosure of the information would breach any law regulation, stock exchange requirement or duty of confidentiality. 20.5 Notification of default (a) Each Obligor shall notify the Facility Agent of any Default and the steps, if any, being taken to remedy it promptly upon becoming aware of its occurrence (unless that Obligor is aware that a notification has already been provided by another Obligor). (b) Promptly upon a request by the Facility Agent, the Company shall supply to the Facility Agent a certificate signed by a director or authorised signatory on its behalf certifying that no Default is continuing (or if continuing, specifying the steps, if any, being taken to remedy it). 20.6 Direct electronic delivery by Company The Company may satisfy its obligation under this Agreement to deliver any information in relation to a Lender by delivering that information directly to that Lender in accordance with Clause 30.6 (Electronic communication) to the extent that Lender and the Facility Agent agree to this method of delivery. 20.7 "Know your customer" checks (a) If: (i) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement; (ii) any change in the status of an Obligor after the date of this Agreement; or (iii) a proposed assignment or transfer by a Lender of any of its rights and obligations under this Agreement to a party that is not a Lender prior to such assignment or transfer, obliges the Facility Agent or any Lender (or, in the case of paragraph (iii) above any prospective new Lender) to comply with "know your customer" or similar identification procedures in circumstances where

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EUROPE-LEGAL-311309212 82 the necessary information is not already available to it, each Obligor shall promptly upon the request of the Facility Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Facility Agent (for itself or on behalf of any Lender) or any Lender (for itself or, in the case of the event described in paragraph (iii) above, on behalf of any prospective new Lender) in order for the Facility Agent, such Lender or, in the case of the event described in paragraph (iii) above, any prospective new Lender to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents. (b) Each Lender shall promptly upon the request of the Facility Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Facility Agent (for itself) in order for the Facility Agent to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents. (c) The Company shall, by not less than five Business Days' prior written notice to the Facility Agent, notify the Facility Agent (which shall promptly notify the Lenders) of its intention to request that one of its Subsidiaries becomes an Additional Obligor pursuant to Clause 24 (Changes to the Obligors). (d) Following the giving of any notice pursuant to paragraph (c) above, if the accession of such Additional Obligor obliges the Facility Agent or any Lender to comply with "know your customer" or similar identification procedures in circumstances where the necessary information is not already available to it, the Company shall promptly upon the request of the Facility Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Facility Agent (for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the Facility Agent or such Lender or any prospective new Lender to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the accession of such Subsidiary to this Agreement as an Additional Obligor. 21. General Undertakings The undertakings in this Clause 21 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force. EUROPE-LEGAL-311309212 83 21.1 Authorisations Each Obligor shall promptly: (a) obtain, comply with and do all that is necessary to maintain in full force and effect; and (b) supply certified copies to the Facility Agent of, any Authorisation required under any law or regulation of its jurisdiction of incorporation to enable it to perform its obligations under the Finance Documents and to ensure the legality, validity, enforceability or admissibility in evidence in its jurisdiction of incorporation of any Finance Document. 21.2 Compliance with laws Each Obligor shall comply with all laws to which it may be subject, if failure so to comply would materially impair its ability to perform its obligations under the Finance Documents. 21.3 Negative pledge (a) No Obligor shall (and the Company shall ensure that no other member of the Group will) create or permit to subsist any Security over any of its assets. (b) Paragraph (a) above does not apply to: (i) any Security listed in Schedule 7 (Security) except to the extent the principal amount secured by that Security exceeds the amount stated in that Schedule; (ii) any cash management, netting or set-off arrangement entered into by any member of the Group in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances; (iii) any payment or close out netting or set-off arrangement pursuant to any hedging transaction entered into by a member of the Group for the purpose of: (A) hedging any risk to which any member of the Group is exposed in its ordinary course of trading; or (B) its interest rate or currency management operations which are carried out in the ordinary course of business and for non-speculative purposes only, excluding, in each case, any Security under a credit support arrangement in relation to a hedging transaction;

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EUROPE-LEGAL-311309212 84 (iv) any lien arising by operation of law and in the ordinary course of business; (v) any Security resulting from the rules and regulations of any clearing system or stock exchange over shares and/or other securities held in that clearing system or stock exchange; (vi) any Security over or affecting any asset acquired by a member of the Group after the date of this Agreement to the extent that: (A) the Security was not created in contemplation of the acquisition of that asset by a member of the Group; and (B) the principal amount secured has not been increased in contemplation of or since the acquisition of that asset by a member of the Group; (vii) any Security over or affecting any asset of any company which becomes a member of the Group after the date of this Agreement, where the Security is created prior to the date on which that company becomes a member of the Group, to the extent that: (A) the Security was not created in contemplation of the acquisition of that company; and (B) the principal amount secured has not increased in contemplation of or since the acquisition of that company; (viii) any Security created pursuant to any Finance Document; (ix) any title transfer or retention of title arrangement entered into by any member of the Group in the ordinary course of business; (x) pledges of goods, the related documents of title and/or other related documents arising or created in the ordinary course of business as security for indebtedness to a bank or financial institution directly relating to the goods or documents over which that pledge exists; (xi) any Security over cash or other investments for bank guarantees given in the ordinary course of trading securing liabilities of up to, in aggregate, $100,000,000 (or its equivalent in any other currency or currencies) or to meet any margin requirement in respect of derivative transactions; EUROPE-LEGAL-311309212 85 (xii) any Security resulting from the rules and regulations of any clearing system or stock exchange over shares and/or other securities held in that clearing system or stock exchange; (xiii) any Security securing Project Finance Indebtedness; (xiv) any Security provided in relation to the InterContinental executive top-up scheme securing liabilities of up to, in aggregate, $100,000,000 (or its equivalent in any other currency or currencies); (xv) any Security replacing any Security permitted under paragraph (i) above or this paragraph (xv) and securing the same indebtedness or obligations whose principal amount does not exceed the maximum principal amount secured, or which could be secured, by the replaced Security when it is replaced; (xvi) any Security securing indebtedness the principal amount of which (when aggregated with the principal amount of any other indebtedness which has the benefit of Security given by any member of the Group other than any permitted under paragraphs (i) to (xv) above) does not exceed an amount equal to $150,000,000 (or its equivalent in any other currency or currencies); or (xvii) any other Security created or outstanding with the prior consent of the Majority Lenders. 21.4 Disposals (a) No Obligor shall (and the Company shall ensure that no other member of the Group will) enter into a single transaction or a series of transactions (whether related or not and whether voluntary or involuntary) to sell, lease, transfer or otherwise dispose of any asset of the Group (each a Disposal). (b) Paragraph (a) above does not apply to any Disposal: (i) made in the ordinary course of day-to-day business of the disposing entity; (ii) of assets in exchange for or to be replaced within 12 months (or committed within 12 months to be replaced and actually replaced within 24 months) by other assets comparable or superior as to type, value and quality; (iii) of assets which are obsolete or redundant; (iv) which constitutes the payment of cash for any purpose not prohibited by any Finance Document;

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EUROPE-LEGAL-311309212 86 (v) by any member of the Group to another member of the Group; (vi) which constitutes any short term investment of funds not immediately required in the Group's business and the realisation of those investments; (vii) which constitutes the making of a lawful distribution; (viii) of assets which become Managed Assets following such Disposal; (ix) of assets (i) acquired by a member of the Group or (ii) owned by an entity which is acquired by a member of the Group, in each case as permitted by the terms of this Agreement, which become the subject of a Disposal on arm's length terms to a person who is not a member of the Group within the period of twelve Months following the date of the relevant acquisition; (x) where the proceeds of that Disposal (net of fees, transaction costs and Taxes) (or such smaller amount having regard to other Disposals which are permitted to be made pursuant to the other sub-paragraphs of this paragraph (b)) are (within the period of 12 months following receipt of those proceeds) applied (or committed within the period of 12 months following receipt of those proceeds to be applied (and actually applied within the period of 18 months following receipt of those proceeds)) in or towards capital expenditure of the Group; (xi) where any member of the Group has applied funds in or towards capital expenditure of the Group within the period of 12 months prior to the receipt of the proceeds of that Disposal and where the amount so applied is at least equal to the proceeds of that Disposal (net of fees, transaction costs and Taxes) or, to the extent it is less than those proceeds, the balance is attributed to, or applied pursuant to, another sub-paragraph of this paragraph (b); (xii) where an amount equal to the proceeds of that Disposal (net of fees, transaction costs and Taxes) (or such smaller amount having regard to other Disposals which are permitted to be made pursuant to the other sub- paragraphs of this paragraph (b)) is used in or towards a permanent reduction of Financial Indebtedness of the Group; (xiii) to which the Majority Lenders have consented; or EUROPE-LEGAL-311309212 87 (xiv) where the higher of the market value or consideration receivable (when aggregated with the higher of the market value or consideration receivable for any other Disposal, to the extent not permitted under any of paragraphs (i) to (xiii) above, effected during any financial year), does not exceed an amount equal to $225,000,000 (or its equivalent in any other currency or currencies) in any financial year. 21.5 Subsidiary Indebtedness (a) The Company shall ensure that the portion of Financial Indebtedness which is borrowed or incurred by Subsidiaries that are not Guarantors under this Agreement shall not at any time exceed the aggregate of: (i) $650,000,000 (or its equivalent in any other currency or currencies); and (but without double counting); and (ii) $400,000,000 (or its equivalent in any other currency or currencies) (provided such amount relates exclusively to Financial Indebtedness specified in paragraphs (i) and (j) of the definition of Financial Indebtedness), and provided that Financial Indebtedness for the purpose of this Clause 21.5 shall exclude: (A) amounts borrowed under this Agreement; (B) qualifying amounts specified in paragraph (b) below which are secured as permitted pursuant to paragraphs (b)(vi) or (vii) of Clause 21.3 (Negative pledge) or otherwise is outstanding for the period of up to 6 months following the relevant acquisition; (C) amounts which would be included as Financial Indebtedness due to a change in IFRS after the date of this Agreement but would not be treated as Financial Indebtedness using Applicable Accounting Principles; and (D) amounts which are incurred in connection with the arrangements described in paragraphs (b)(ii) or (b)(iii) of Clause 21.3 (Negative pledge). (b) Where a member of the Group acquires an asset or a company after the date of this Agreement in respect of which Financial Indebtedness is outstanding (other than Project Finance Indebtedness), where:

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EUROPE-LEGAL-311309212 88 (i) that Financial Indebtedness was not created in contemplation of the acquisition of that asset or company; and (ii) that Financial Indebtedness has not increased in contemplation of or since that acquisition, then that Financial Indebtedness shall be permitted and be in addition to the threshold numbers specified in paragraph (a) above. 21.6 Change of business The Company shall procure that no substantial change is made to the general nature of the business of the Group taken as a whole from that anticipated to be carried on at the date of this Agreement but this shall not prevent any member of the Group engaging in any ancillary or related business. 21.7 Insurance The Company shall or shall procure that other members of the Group shall, maintain insurances on and in relation to the business and assets of the Group with reputable underwriters or insurance companies against those risks, and to the extent, usually insured against by a prudent group of companies located in the same or similar locations and carrying on a similar business to that of the Group. 21.8 Acquisitions No Obligor shall (and the Company shall ensure that no other member of the Group will) complete (without the approval of the Majority Lenders which shall not be unreasonably withheld or delayed) any acquisition (whether through a single transaction or series of related transactions with the same party or with parties connected with one another) where the consideration for the acquisition exceeds 25 per cent. of the Group's market capitalisation at the time of the London Stock Exchange market close on the Business Day falling immediately prior to the date of formal announcement of such acquisition by the Company. 21.9 Disposal of Receivables (a) No Obligor shall (and the Company shall ensure that no other member of the Group will) sell, transfer or otherwise dispose of any of its trade receivables. (b) Paragraph (a) above does not apply to any sale, transfer or other disposal of any of its receivables where the aggregate face value of all such receivables that are outstanding at any time does not exceed $70,000,000 (or its equivalent in any other currency or currencies). EUROPE-LEGAL-311309212 89 21.10 Merger No Obligor shall enter into any amalgamation, demerger, merger, consolidation or corporate reconstruction other than any such transaction between Obligors or Obligors and other persons provided that, in each case, the surviving entity is (or, as the case may be, becomes) a Guarantor and/or a Borrower (as the case may be). 21.11 Use of proceeds (a) No Borrower shall: (i) knowingly use, lend, contribute or otherwise make available any part of the proceeds of any Loan in any manner that would result in any member of the Group being in breach of any applicable Sanctions Law or becoming a Sanctioned Person; (ii) engage in any transaction that evades or avoids or breaches directly or indirectly, any Sanctions Law applicable to it; or (iii) fund all or part of any payment in connection with a Finance Document out of proceeds derived from business or transactions with a Sanctioned Person (to the extent such business or transactions would be prohibited by any Sanctions Law applicable to the Group), or from any action which is in breach of any Sanctions Law applicable to the Group. (b) This Clause 21.11 shall not apply to or in favour of any person if and to the extent that it would result in a breach by, or in respect of that person, of any applicable Blocking Law. 21.12 ERISA Each Obligor shall (and the Parent shall cause each ERISA Affiliate to): (a) ensure that neither it nor any ERISA Affiliate engages in a complete or partial withdrawal, within the meaning of Sections 4203 and 4205 of ERISA, from any Multiemployer Plan without the prior consent of the Majority Lenders unless that withdrawal could not reasonably be expected to have a Material Adverse Effect; (b) ensure that any material liability imposed on it or any ERISA Affiliate pursuant to Title IV of ERISA is paid and discharged when due; (c) ensure that neither it nor any ERISA Affiliate adopts an amendment to an Plan requiring the provision of security under ERISA or the Code without the prior consent of the Majority

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EUROPE-LEGAL-311309212 90 Lenders in an amount that could reasonably be expected to have a Material Adverse Effect; and (d) ensure that no Plan is terminated under Section 4041 of ERISA unless that termination could not reasonably be expected to have a Material Adverse Effect. 21.13 Margin Regulations No Obligor will, and no Obligor will permit any other Group Member to, use the proceeds of any Loan or other extension of credit hereunder, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry Margin Stock, or to extend credit to others for the purpose of purchasing or carrying Margin Stock or to maintain, reduce or retire indebtedness originally incurred for such purpose. 21.14 Anti-Bribery and Corruption undertaking No Borrower shall directly or, to its knowledge, indirectly use the proceeds of any Loan in furtherance of any offer, payment, promise to pay, or authorisation of payment or giving of money, or anything else of value, to any person in violation of any applicable Anti-Bribery and Corruption Laws. 22. Events of Default Each of the events or circumstances set out in this Clause 22 (other than Clauses 22.14 (Automatic Acceleration) and 22.15 (Acceleration)) is an Event of Default. 22.1 Non-payment An Obligor does not pay on the due date any amount payable pursuant to a Finance Document at the place at and in the currency in which it is expressed to be payable unless: (a) its failure to pay is caused by: (i) administrative or technical error; or (ii) a Disruption Event; and (b) payment is made within five Business Days of its due date. 22.2 Other obligations (a) An Obligor does not comply with any provision of the Finance Documents(other than those referred to in Clause 20.2 (ERISA) and Clause 21.12 (ERISA)). (b) An US Obligor does not comply with Clause 20.2 (ERISA) or Clause 21.12 (ERISA). EUROPE-LEGAL-311309212 91 (c) No Event of Default under paragraph (a) above will occur if the failure to comply is capable of remedy and is remedied within 20 days of the earlier of Facility Agent giving notice to the Company or the Company becoming aware of the failure to comply. 22.3 Misrepresentation (a) Any representation or statement made or deemed to be made by an Obligor in the Finance Documents or any other document delivered by or on behalf of any Obligor under or in connection with any Finance Document is or proves to have been incorrect or misleading in any material respect when made or deemed to be made. (b) No Event of Default under paragraph (a) above will occur if the circumstances giving rise to a misrepresentation or misstatement is/are capable of remedy and is/are remedied within 20 days of the Facility Agent giving notice to the Company requiring such remedy or (if earlier) the Company becoming aware of the failure to comply. 22.4 Cross default (a) Any Financial Indebtedness of any member of the Group is not paid when due nor within any applicable grace period. (b) Any Financial Indebtedness of any member of the Group is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described). (c) Any creditor of any member of the Group becomes entitled to declare any Financial Indebtedness of any member of the Group due and payable prior to its specified maturity as a result of an event of default (however described). (d) No Event of Default will occur under this Clause 22.4 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (a) to (c) above is less than $50,000,000 (or its equivalent in any other currency or currencies) and Financial Indebtedness for the purposes of this Clause 22.4 shall exclude, in each case, Project Finance Indebtedness. 22.5 Insolvency (a) An Obligor or a Material Subsidiary is unable or admits inability to pay its debts as they fall due, suspends making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness.

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EUROPE-LEGAL-311309212 92 (b) A moratorium is declared or takes effect in respect of all or a material part (or a particular type of) the indebtedness of an Obligor or a Material Subsidiary. 22.6 Insolvency proceedings (a) Any corporate action or legal proceeding is taken (subject to paragraph (d) below) for the winding-up or dissolution of an Obligor or Material Subsidiary, or the appointment of a liquidator, administrator, administrative receiver, compulsory manager or other similar officer is appointed in respect of, an Obligor or Material Subsidiary other than for a solvent winding-up, dissolution or liquidation of an Obligor (other than the Company or the Guarantors) or a Material Subsidiary. (b) Any corporate action or legal proceeding is taken (subject to paragraph (d) below), or an agreement is entered into or proposed by an Obligor or Material Subsidiary, for the suspension of payments by, a moratorium of any indebtedness of, or a general composition, compromise or assignment for the benefit of the creditors of, an Obligor or Material Subsidiary. (c) A receiver, administrative receiver, compulsory manager or other similar officer is appointed in respect of an Obligor or Material Subsidiary or any of its assets, or any Security is enforced over an Obligor's or Material Subsidiary's assets, having an aggregate value of and in respect of indebtedness aggregating not less than $50,000,000 (or its equivalent in any other currency or currencies). (d) A person presents a petition for the winding up, liquidation, dissolution, administration or suspension of payments of an Obligor or Material Subsidiary except: (i) where such petition is being contested in good faith and by appropriate means and is in any event dismissed within 30 days of its presentation; or (ii) where such presentation is frivolous or vexatious or an abuse of process and is in any event dismissed within 30 days of its presentation. 22.7 Creditors' process Any expropriation, attachment, sequestration, distress or execution affects any asset or assets of an Obligor or Material Subsidiary having an aggregate value of and in respect of indebtedness aggregating at least $50,000,000 (or its equivalent in any other currency or currencies) and is not discharged within 30 days. EUROPE-LEGAL-311309212 93 22.8 Ownership of the Obligors An Obligor (other than the Company) is not or ceases to be a Subsidiary of the Company. 22.9 Unlawfulness It is or becomes unlawful for an Obligor to perform any of its material obligations under the Finance Documents. 22.10 Repudiation An Obligor repudiates a Finance Document or evidences an intention to repudiate a Finance Document. 22.11 Cessation of business An Obligor ceases to carry on its business except pursuant to a reconstruction, amalgamation, merger or consolidation on solvent terms or, for the avoidance of doubt, by way of a disposal. 22.12 United States Bankruptcy Laws Any of the following occurs in respect of any US Borrower, in each case under US Bankruptcy Law: (a) it makes a general assignment for the benefit of creditors; (b) consent to the institution of any proceeding under US Bankruptcy Law; (c) it commences a voluntary case or proceeding under any US Bankruptcy Law; (d) an involuntary case under any US Bankruptcy Law is commenced against it and is not controverted within 30 days or is not dismissed or stayed within 60 days after commencement of the case; or (e) an order for relief or other order approving any case or proceeding is entered against it under any US Bankruptcy Law. 22.13 ERISA Event Any ERISA Event shall have occurred that, when aggregated with any other then existing ERISA Event, could reasonably be expected to have a Material Adverse Effect. 22.14 Automatic Acceleration If an Event of Default under Clause 22.5 (Insolvency), 22.6 (Insolvency Proceeding) or 22.12 (United States Bankruptcy Laws) shall occur in a US court of competent jurisdiction (an Automatic Acceleration Event) in relation to:

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EUROPE-LEGAL-311309212 94 (a) any US Borrower: (i) the Total Commitments in relation to such US Borrower shall be immediately cancelled; and (ii) all of the Loans made to such US Borrower and all obligations of such US Borrower, accrued interest thereon, and any other sum then payable under this Agreement and any of the other Finance Documents by such US Borrower (including any applicable prepayment premium) shall be immediately due and payable, then in each case automatically and without direction, notice, declaration or other act; or (b) any US Guarantor, each amount expressed by Clause 18 (Guarantee and Indemnity) to be payable by that US Guarantor on demand shall, after that Event of Default has occurred, be immediately due and payable by that US Guarantor without the need for any demand or other claim on that US Guarantor or any US Obligor. 22.15 Acceleration On and at any time after the occurrence of an Event of Default which is continuing the Facility Agent may, and shall if so directed by the Majority Lenders, by notice to the Company: (a) cancel each Available Commitment of each Lender whereupon each such Available Commitment shall immediately be cancelled and the Facility shall immediately cease to be available for further utilisation; (b) declare that all or part of the Loans, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, whereupon they shall become immediately due and payable; and/or (c) declare that all or part of the Loans be payable on demand, whereupon they shall immediately become payable on demand by the Facility Agent on the instructions of the Majority Lenders. 23. Changes to the Lenders 23.1 Assignments and transfers by the Lenders Subject to this Clause 23, a Lender (the Existing Lender) may: (a) assign any of its rights; or (b) transfer by novation any of its rights and obligations, EUROPE-LEGAL-311309212 95 to another bank or financial institution or, following the occurrence of an Event of Default which is continuing, to a trust, fund or other entity which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets (the New Lender). 23.2 Conditions of assignment or transfer (a) The consent of the Company is required for an assignment or transfer by an Existing Lender, unless the assignment or transfer is to another Lender or an Affiliate of a Lender or following the occurrence of an Event of Default which is continuing. (b) The consent of the Company to an assignment or transfer must not be unreasonably withheld or delayed. The Company will be deemed to have given its consent seven Business Days after the Existing Lender has requested it unless consent is expressly refused by the Company within that time. (c) A partial transfer by a Lender shall be in a minimum amount of $10,000,000. 23.3 Other conditions of assignment or transfer (a) An assignment will only be effective on: (i) receipt by the Facility Agent of written confirmation from the New Lender (in form and substance satisfactory to the Facility Agent) that the New Lender will assume the same obligations to the other Finance Parties as it would have been under if it had been an Original Lender; and (ii) performance by the Facility Agent of all "know your customer" or other checks relating to any person that it is required to carry out in relation to such assignment to a New Lender, the completion of which the Facility Agent shall promptly notify to the Existing Lender and the New Lender. (b) A transfer will only be effective if the procedure set out in Clause 23.7 (Procedure for transfer) is complied with. (c) If: (i) a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and (ii) as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 13 (Tax

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EUROPE-LEGAL-311309212 96 gross-up and indemnities) or Clause 14.1 (Increased Costs), then the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the Existing Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred. This paragraph (c) shall not apply, in relation to Clause 13 (Tax gross-up), to a Treaty Lender that has included a confirmation of its scheme reference number and its jurisdiction of tax residence in accordance with Clause 13.2(h)(ii)(B) (Tax gross-up) if the Obligor making the payment has not made a Borrower DTTP Filing in respect of that Treaty Lender. 23.4 Transfer by sub-participation Where a Lender proposes to enter into a sub-participation (whether funded or unfunded) where as a result of the sub-participation such Lender would no longer retain absolute discretion with regard to the exercise of votes under the Finance Documents, then unless the sub-participation is to be entered into with an Affiliate of the Lender or an existing Lender, the Company's consent shall be required to the extent so required when applying Clause 23.2 (Company consent) and Clause 23.3 (Other conditions of assignment or transfer) mutatis mutandis in respect of such sub-participation. 23.5 Assignment or transfer fee The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Facility Agent (for its own account) a fee of $2,000. 23.6 Limitation of responsibility of Existing Lenders (a) Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for: (i) the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents; (ii) the financial condition of any Obligor; (iii) the performance and observance by any Obligor of its obligations under the Finance Documents or any other documents; or (iv) the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document, EUROPE-LEGAL-311309212 97 and any representations or warranties implied by law are excluded. (b) Each New Lender confirms to the Existing Lender and the other Finance Parties that it: (i) has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender in connection with any Finance Document; and (ii) will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force. (c) Nothing in any Finance Document obliges an Existing Lender to: (i) accept a re-transfer from a New Lender of any of the rights and obligations assigned or transferred under this Clause 23; or (ii) support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Obligor of its obligations under the Finance Documents or otherwise. 23.7 Procedure for transfer (a) Subject to the conditions set out in Clause 23.2 (Company consent) and Clause 24.3 (Other conditions of assignment or transfer) a transfer is effected in accordance with paragraph (b) below when the Facility Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender and the Facility Agent makes a corresponding entry in the Register pursuant to Clause 23.8. The Facility Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate. (b) The Facility Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing Lender and the New Lender and make a corresponding entry in the Register once it is satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to the transfer to such New Lender.

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EUROPE-LEGAL-311309212 98 (c) Subject to Clause 23.12 (Pro rata interest settlement), the Transfer Date: (i) to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents each of the Obligors and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another under the Finance Documents shall be cancelled (being the Discharged Rights and Obligations); (ii) each of the Obligors and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as that Obligor and the New Lender have assumed and/or acquired the same in place of that Obligor and the Existing Lender; (iii) the Facility Agent, the Arranger, the New Lender and other Lenders shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Facility Agent, the Arranger and the Existing Lender shall each be released from further obligations to each other under the Finance Documents; and (iv) the New Lender shall become a Party as a Lender. 23.8 Copy of the Register The Facility Agent, acting solely for this purpose as a non-fiduciary agent of the Obligors, shall maintain at one of its offices a copy of each Transfer Certificate delivered to it and a register (the Register) for the recordation of the names and addresses of each Lender and the Commitments of, and principal amount and entitlement to stated interest, owing to each Lender. Without limitation of any other provision of this Clause 23 (Changes to the Lenders), no transfer of an interest in a Loan or Commitment hereunder shall be effective unless and until recorded in the Register. The entries in the Register shall be conclusive absent manifest error and each Obligor, the Facility Agent and each Lender shall treat each person whose name is recorded in the Register as a Lender notwithstanding any notice to the contrary. A copy of the Register shall be available for inspection by any Borrower and any Lender, at any reasonable time and from time to time upon reasonable notice. EUROPE-LEGAL-311309212 99 23.9 The Sub-participant Register Each Lender that sells a sub-participation in a Loan of a US Tax Obligor or other obligation of a US Tax Obligor under a Finance Document shall, acting solely for this purpose as a non-fiduciary agent of the Obligors, maintain a register on which it enters the name and address of each sub-participant and the principal amounts (and entitlement to stated interest) of each sub-participant's interest in the Loans or other obligations (the Sub-participant Register); provided that no Lender shall have any obligation to disclose all or any portion of the Sub-participant Register (including the identity of any sub-participant or any information relating to a sub-participant's interest in any Commitments, Loans or other obligations under any Finance Document) to any person except to the extent that such disclosure is necessary to establish that such Commitment, Loan or other obligation is in registered form under Section 5f.103-1(c) of the US Treasury Regulations. The entries in the Sub-participant Register shall be conclusive absent manifest error, and each such Lender shall treat each person whose name is recorded in the Sub-participant Register as the owner of such sub-participation for all purposes of the Finance Documents notwithstanding any notice to the contrary. 23.10 Copy of Transfer Certificate or Increase Confirmation to Company The Facility Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate or Increase Confirmation, send to the Company a copy of that Transfer Certificate or Increase Confirmation. 23.11 Security over Lenders' rights In addition to the other rights provided to Lenders under this Clause 23, each Lender may without consulting with or obtaining consent from any Obligor in relation to a charging, assignment or creation of Security in favour of a central bank or federal reserve, or with the agreement of the Company (acting reasonably) in relation to a charging, assignment or creation of Security in favour of any other entity, at any time charge, assign or otherwise create Security in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation: (a) any charge, assignment or other Security to secure obligations to a federal reserve or central bank; and (b) any charge, assignment or other Security granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as security for those obligations or securities, except that no such charge, assignment or Security shall:

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EUROPE-LEGAL-311309212 100 (i) release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security for the Lender as a party to any of the Finance Documents; or (ii) require any payments to be made by an Obligor other than or in excess of, or grant to any person any more extensive rights than, those required to be made or granted to the relevant Lender under the Finance Documents. 23.12 Pro rata interest settlement (a) If the Facility Agent has notified the Lenders that it is able to distribute interest payments on a "pro rata basis" to Existing Lenders and New Lenders then (in respect of any transfer pursuant to Clause 23.7 (Procedure for transfer) the Transfer Date of which, in each case, is after the date of such notification and is not on the last day of an Interest Period): (i) any interest or fees in respect of the relevant participation which are expressed to accrue by reference to the lapse of time shall continue to accrue in favour of the Existing Lender up to but excluding the Transfer Date (Accrued Amounts) and shall become due and payable to the Existing Lender (without further interest accruing on them) on the last day of the current Interest Period; and (ii) the rights assigned or transferred by the Existing Lender will not include the right to the Accrued Amounts, so that, for the avoidance of doubt: (A) when the Accrued Amounts become payable, those Accrued Amounts will be payable to the Existing Lender; and (B) the amount payable to the New Lender on that date will be the amount which would, but for the application of this Clause 23.12, have been payable to it on that date, but after deduction of the Accrued Amounts. (b) In this Clause 23.12 references to "Interest Period" shall be construed to include a reference to any other period for accrual of fees. (c) An Existing Lender which retains the right to the Accrued Amounts pursuant to this Clause 23.12 but which does not have a Commitment shall be deemed not to be a Lender for the purposes of ascertaining whether the agreement of any specified group of Lenders has been obtained to approve any request for a consent, EUROPE-LEGAL-311309212 101 waiver, amendment or other vote of Lenders under the Finance Documents. 24. Changes to the Obligors 24.1 Assignments and transfer by Obligors No Obligor may assign any of its rights or transfer any of its rights or obligations under the Finance Documents. 24.2 Additional Borrowers (a) Subject to compliance with the provisions of paragraphs (c) and (d) of Clause 20.7 ("Know your customer" checks), the Company may request that any of its Subsidiaries becomes an Additional Borrower. That Subsidiary shall become an Additional Borrower if: (i) all Lenders (acting reasonably) approve the addition of that Subsidiary and which they shall do so if that Subsidiary is a wholly owned subsidiary incorporated in the United Kingdom, the United States or in the same jurisdiction as an existing Borrower; (ii) the Company delivers to the Facility Agent a duly completed and executed Accession Letter; (iii) the Company confirms that no Default is continuing or would occur as a result of that Subsidiary becoming an Additional Borrower; and (iv) the Facility Agent has received all of the documents and other evidence listed in Part B of Schedule 2 (Conditions precedent) in relation to that Additional Borrower, each in form and substance reasonably satisfactory to the Facility Agent. (b) The Facility Agent shall notify the Company and the Lenders promptly upon being satisfied that it has received (in form and substance reasonably satisfactory to it) all the documents and other evidence listed in Part B of Schedule 2 (Conditions precedent). 24.3 Resignation of a Borrower (a) The Company may request that a Borrower (other than the Company) ceases to be a Borrower by delivering to the Facility Agent a Resignation Letter. (b) The Facility Agent shall accept a Resignation Letter and notify the Company and the Lenders of its acceptance if:

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EUROPE-LEGAL-311309212 102 (i) no Default is continuing or would result from the acceptance of the Resignation Letter (and the Company has confirmed this is the case); and (ii) that Borrower is under no actual or contingent obligations as a Borrower under any Finance Documents, whereupon that company shall cease to be a Borrower and shall have no further rights or obligations under the Finance Documents. 24.4 Additional Guarantors (a) Subject to compliance with the provisions of paragraphs (c) and (d) of Clause 20.7 ("Know your customer" checks), the Company may request that any of its Subsidiaries become an Additional Guarantor. That Subsidiary shall become an Additional Guarantor if: (i) the Company delivers to the Facility Agent a duly completed and executed Accession Letter; and (ii) the Facility Agent has received all of the documents and other evidence listed in Part B of Schedule 2 (Conditions precedent) in relation to that Additional Guarantor, each in form and substance reasonably satisfactory to the Facility Agent. (b) The Facility Agent shall notify the Company and the Lenders promptly upon being satisfied that it has received (in form and substance reasonably satisfactory to it) all the documents and other evidence listed in Part B of Schedule 2 (Conditions precedent). 24.5 Repetition of Representations Delivery of an Accession Letter constitutes confirmation by the relevant Subsidiary that the Repeating Representations are true and correct in relation to it as at the date of delivery as if made by reference to the facts and circumstances then existing. 24.6 Resignation of a Guarantor (a) The Company may request that a Guarantor (other than the Company) ceases to be a Guarantor by delivering to the Facility Agent a Resignation Letter. (b) The Facility Agent shall accept a Resignation Letter and notify the Company and the Lenders of its acceptance if: (i) no Default is continuing or would result from the acceptance of the Resignation Letter (and the Company has confirmed this is the case); and EUROPE-LEGAL-311309212 103 (ii) the Majority Lenders have consented to the Company's request (which they shall do if in relation to any Subsidiary of the Company, Clause 21.5 (Subsidiary Indebtedness) is being complied with at such time). 25. Role of the Facility Agent and the Arranger 25.1 Appointment of the Facility Agent (a) Each other Finance Party appoints the Facility Agent to act as its agent under and in connection with the Finance Documents. (b) Each other Finance Party authorises the Facility Agent to exercise the rights, powers, authorities and discretions specifically given to the Facility Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions. (c) Each of the Mandated Lead Arrangers and the Lenders hereby exempts the Facility Agent from the restrictions pursuant to section 181 of the German Civil Code (Bürgerliches Gesetzbuch) and similar restrictions applicable to it pursuant to any other applicable law, in each case to the extent legally possible to such Finance Party. A Finance Party which cannot grant such exemption shall notify the Facility Agent accordingly and, upon request of the Facility Agent, either act in accordance with the terms of this Agreement and/or any other Finance Document as required pursuant to this Agreement and/or such other Finance Document or grant a special power of attorney to a party acting on its behalf, in a manner that is not prohibited pursuant to section 181 of the German Civil Code (Bürgerliches Gesetzbuch) and/or any other applicable laws. 25.2 Duties of the Facility Agent (a) Subject to paragraph (b) below, the Facility Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Facility Agent for that Party by any other Party. (b) Without prejudice to Clause 23.8 (Copy of Transfer Certificate or Increase Confirmation to Company), paragraph (a) above shall not apply to any Transfer Certificate or any Increase Confirmation. (c) Except where a Finance Document specifically provides otherwise, the Facility Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party. (d) If the Facility Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the

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EUROPE-LEGAL-311309212 104 circumstance described is a Default, it shall promptly notify the Finance Parties. (e) If the Facility Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Facility Agent or the Arranger) under this Agreement it shall promptly notify the other Finance Parties. (f) The Facility Agent shall provide to the Company (i) every six months, starting with the date falling six Months from the date of this Agreement and (ii) in any event within three Business Days of a request by the Company, a list (which may be in electronic form) setting out the names of the Lenders as at the date of response or as at the date of that request (as the Company may elect), their respective Commitments, the address and fax number (and the department or officer, if any, for whose attention any communication is to be made) of each Lender for any communication to be made or document to be delivered under or in connection with the Finance Documents, the electronic mail address and/or any other information required to enable the sending and receipt of information by electronic mail or other electronic means to and by each Lender to whom any communication under or in connection with the Finance Documents may be made by that means and the account details of each Lender for any payment to be distributed by the Facility Agent to that Lender under the Finance Documents. (g) The Facility Agent's duties under the Finance Documents are solely mechanical and administrative in nature. 25.3 Role of the Arranger Except as specifically provided in the Finance Documents, the Arranger has no obligations of any kind to any other Party under or in connection with any Finance Document. 25.4 No fiduciary duties (a) Nothing in this Agreement constitutes the Facility Agent or the Arranger as a trustee or fiduciary of any other person. (b) Neither the Facility Agent nor the Arranger shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account. 25.5 Business with the Group The Facility Agent and the Arranger may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the Group. EUROPE-LEGAL-311309212 105 25.6 Rights and discretions of the Facility Agent (a) The Facility Agent may rely on: (i) any representation, notice or document believed by it to be genuine, correct and appropriately authorised; and (ii) any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify. (b) The Facility Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders) that: (i) no Default has occurred (unless it has actual knowledge of a Default arising under Clause 22.1 (Non-payment)); (ii) any right, power, authority or discretion vested in any Party or the Majority Lenders has not been exercised; and (iii) any notice or request made by the Company (other than a Utilisation Request) is made on behalf of and with the consent and knowledge of all the Obligors. (c) The Facility Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts. (d) The Facility Agent may act in relation to the Finance Documents through its personnel and agents. (e) The Facility Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement. (f) Without prejudice to the generality of paragraph (e) above, the Facility Agent may disclose the identity of a Defaulting Lender to the other Finance Parties and the Company and shall disclose the same upon the written request of the Company or the Majority Lenders. (g) Notwithstanding any other provision of any Finance Document to the contrary, neither the Facility Agent nor the Arranger is obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality. 25.7 Majority Lenders' instructions (a) Unless a contrary indication appears in a Finance Document, the Facility Agent shall (i) exercise any right, power, authority or discretion vested in it as Facility Agent in accordance with any instructions given to it by the Majority Lenders (or, if so instructed

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EUROPE-LEGAL-311309212 106 by the Majority Lenders, refrain from exercising any right, power, authority or discretion vested in it as Facility Agent) and (ii) not be liable for any act (or omission) if it acts (or refrains from taking any action) in accordance with an instruction of the Majority Lenders. (b) Unless a contrary indication appears in a Finance Document, any instructions given by the Majority Lenders will be binding on all the Finance Parties. (c) The Facility Agent may refrain from acting in accordance with the instructions of the Majority Lenders (or, if appropriate, the Lenders) until it has received such security as it may require for any cost, loss or liability (together with any associated VAT) which it may incur in complying with the instructions. (d) In the absence of instructions from the Majority Lenders (or, if appropriate, the Lenders), the Facility Agent may act (or refrain from taking action) as it considers to be in the best interest of the Lenders. (e) The Facility Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender's consent) in any legal or arbitration proceedings relating to any Finance Document. 25.8 Responsibility for documentation Neither the Facility Agent nor the Arranger: (a) is responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Facility Agent, the Arranger, an Obligor or any other person given in or in connection with any Finance Document; or (b) is responsible for the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Finance Document. 25.9 Exclusion of liability (a) Without limiting paragraph (b) below and without prejudice to the provisions of paragraph (e) of Clause 28.11 (Disruption to Payment Systems, etc.), the Facility Agent will not be liable for any action taken by it under or in connection with any Finance Document, unless directly caused by its gross negligence or wilful misconduct. (b) No Party (other than the Facility Agent) may take any proceedings against any officer, employee or agent of the Facility Agent in respect of any claim it might have against the Facility Agent or in respect of any act or omission of any kind by that officer, EUROPE-LEGAL-311309212 107 employee or agent in relation to any Finance Document and any officer, employee or agent of the Facility Agent may rely on this Clause. (c) The Facility Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Facility Agent if the Facility Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Facility Agent for that purpose. (d) Nothing in this Agreement shall oblige the Facility Agent or the Arranger to carry out any "know your customer" or other checks in relation to any person on behalf of any Lender and each Lender confirms to the Facility Agent and the Arranger that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Facility Agent or the Arranger. 25.10 Lenders' indemnity to the Facility Agent Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Facility Agent, within three Business Days of demand, against any cost, loss or liability incurred by the Facility Agent (otherwise than by reason of the Facility Agent's gross negligence or wilful misconduct) in acting as Facility Agent under the Finance Documents (unless the Facility Agent has been reimbursed by an Obligor pursuant to a Finance Document). 25.11 Resignation of the Facility Agent (a) The Facility Agent may resign and appoint one of its Affiliates acting through an office in the United Kingdom as successor by giving notice to the other Finance Parties and the Company. (b) Alternatively the Facility Agent may resign by giving notice to the other Finance Parties and the Company, in which case the Majority Lenders may appoint a successor Facility Agent with the consent of the Company (such consent not to be unreasonably withheld or delayed) unless the successor Facility Agent is an Arranger or an Affiliate thereof, in which case the consent of the Company shall not be required. (c) If the Majority Lenders have not appointed a successor Facility Agent in accordance with paragraph (b) above within 30 days after notice of resignation was given, the Facility Agent (after consultation with the Company) may appoint a successor Facility Agent (acting through an office in the United Kingdom).

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EUROPE-LEGAL-311309212 108 (d) The retiring Facility Agent shall, at its own cost, make available to the successor Facility Agent such documents and records and provide such assistance as the successor Facility Agent may reasonably request for the purposes of performing its functions as Facility Agent under the Finance Documents. (e) The Facility Agent's resignation notice shall only take effect upon the appointment of a successor. (f) Upon the appointment of a successor, the retiring Facility Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 25. Its successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party. (g) After consultation with the Company the Majority Lenders may, by notice to the Facility Agent, require it to resign in accordance with paragraph (b) above. In this event, the Facility Agent shall resign in accordance with paragraph (b) above. (h) The Facility Agent shall resign in accordance with paragraph (b) above (and, to the extent applicable, shall use reasonable endeavours to appoint a successor Facility Agent pursuant to paragraph (c) above) if on or after the date which is three months before the earliest FATCA Application Date relating to any payment to the Facility Agent under the Finance Documents, either: (i) the Facility Agent fails to respond to a request under Clause 13.8 (FATCA Information) and the Company or a Lender reasonably believes that the Facility Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; (ii) the information supplied by the Facility Agent pursuant to Clause 13.8 (FATCA Information) indicates that the Facility Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or (iii) the Facility Agent notifies the Company and the Lenders that the Facility Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date, and (in each case) the Company or a Lender reasonably believes that a Party will be required to make a FATCA Deduction that would not be required if the Facility Agent were a FATCA Exempt Party, and the Company or that Lender, by notice to the Facility Agent, requires it to resign. EUROPE-LEGAL-311309212 109 25.12 Replacement of the Facility Agent (a) Subject to paragraph (b) below, the Majority Lenders may, by giving 30 days' notice to the Facility Agent (or, at any time the Facility Agent is an Impaired Agent, by giving any shorter notice determined by the Majority Lenders) replace the Facility Agent by appointing a successor Facility Agent (acting through an office in the United Kingdom). (b) The Facility Agent may only be replaced with the consent of the Company (such consent not to be unreasonably withheld or delayed) unless the successor Facility Agent is an Arranger or an Affiliate thereof, in which case the consent of the Company shall not be required. (c) The retiring Facility Agent shall (at its own cost if it is an Impaired Agent and otherwise at the expense of the Lenders) make available to the successor Facility Agent such documents and records and provide such assistance as the successor Facility Agent may reasonably request for the purposes of performing its functions as Facility Agent under the Finance Documents. (d) The appointment of the successor Facility Agent shall take effect on the date specified in the notice from the Majority Lenders to the retiring Facility Agent. As from this date, the retiring Facility Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 25 (and any agency fees for the account of the retiring Facility Agent shall cease to accrue from (and shall be payable on) that date). (e) Any successor Facility Agent and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party. 25.13 Confidentiality (a) In acting as agent for the Finance Parties, the Facility Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments. (b) If information is received by another division or department of the Facility Agent, it may be treated as confidential to that division or department and the Facility Agent shall not be deemed to have notice of it. 25.14 Relationship with the Lenders (a) Subject to Clause 23.12 (Pro rata interest settlement), the Facility Agent may treat each Lender as a Lender, entitled to payments under this Agreement and acting through its Facility

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EUROPE-LEGAL-311309212 110 Office unless it has received not less than five Business Days prior notice from that Lender to the contrary in accordance with the terms of this Agreement. (b) Any Lender may by notice to the Facility Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or despatched to that Lender under the Finance Documents. Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under Clause 30.6 (Electronic communication)) electronic mail address and/or any other information required to enable the sending and receipt of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail address, department and officer by that Lender for the purposes of Clause 30.2 (Addresses) and paragraph (a)(iii) of Clause 30.6 (Electronic communication) and the Facility Agent shall be entitled to treat such person as the person entitled to receive all such notices, communications, information and documents as though that person were that Lender. 25.15 Credit appraisal by the Lenders Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to the Facility Agent and the Arranger that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to: (a) the financial condition, status and nature of each member of the Group; (b) the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; (c) whether that Lender has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and (d) the adequacy, accuracy and/or completeness of any information provided by the Facility Agent, any Party or by any other person under or in connection with any Finance Document, the EUROPE-LEGAL-311309212 111 transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document. 25.16 Deduction from amounts payable by the Facility Agent If any Party owes an amount to the Facility Agent under the Finance Documents the Facility Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Facility Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed. For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted. 26. Conduct of Business by the Finance Parties No provision of this Agreement will: (a) interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit; (b) oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or (c) oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax. 27. Sharing among the Finance Parties 27.1 Payments to Finance Parties If a Finance Party (a Recovering Finance Party) receives or recovers any amount from an Obligor other than in accordance with Clause 28 (Payment mechanics) and applies that amount to a payment due under the Finance Documents then: (a) the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery to the Facility Agent; (b) the Facility Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Facility Agent and distributed in accordance with Clause 28 (Payment mechanics), without taking account of any Tax which would be imposed on the Facility Agent in relation to the receipt, recovery or distribution; and

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EUROPE-LEGAL-311309212 112 (c) the Recovering Finance Party shall, within three Business Days of demand by the Facility Agent, pay to the Facility Agent an amount (the Sharing Payment) equal to such receipt or recovery less any amount which the Facility Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 28.6 (Partial payments). 27.2 Redistribution of payments The Facility Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the Recovering Finance Party) in accordance with Clause 28.6 (Partial payments). 27.3 Recovering Finance Party's rights (a) On a distribution by the Facility Agent under Clause 27.2 (Redistribution of payments), the Recovering Finance Party will be subrogated to the rights of the Finance Parties which have shared in the redistribution. (b) If and to the extent that the Recovering Finance Party is not able to rely on its rights under paragraph (a) above, the relevant Obligor shall be liable to the Recovering Finance Party for a debt equal to the Sharing Payment which is immediately due and payable. 27.4 Reversal of redistribution If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then: (a) each Finance Party which has received a share of the relevant Sharing Payment pursuant to Clause 27.2 (Redistribution of payments) shall, upon request of the Facility Agent, pay to the Facility Agent for account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay); and (b) that Recovering Finance Party's rights of subrogation in respect of any reimbursement shall be cancelled and the relevant Obligor will be liable to the reimbursing Finance Party for the amount so reimbursed. 27.5 Exceptions (a) This Clause 27 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to EUROPE-LEGAL-311309212 113 this Clause, have a valid and enforceable claim against the relevant Obligor. (b) A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if: (i) it notified that other Finance Party of the legal or arbitration proceedings; and (ii) that other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings. 28. Payment Mechanics 28.1 Payments to the Facility Agent (a) On each date on which an Obligor or a Lender is required to make a payment under a Finance Document, that Obligor or Lender shall make the same available to the Facility Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Facility Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment. (b) Payment shall be made to such account in the principal financial centre of the country of that currency (or, in relation to euro, in the principal financial centre in a Participating Member State or London) with such bank as the Facility Agent specifies. 28.2 Distributions by the Facility Agent Each payment received by the Facility Agent under the Finance Documents for another Party shall, subject to Clause 28.3 (Distributions to an Obligor) and Clause 28.4 (Clawback), be made available by the Facility Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Facility Agent by not less than five Business Days' notice with a bank in the principal financial centre of the country of that currency (or, in relation to euro, in the principal financial centre of a Participating Member State or London). 28.3 Distributions to an Obligor The Facility Agent may (with the consent of the Obligor or in accordance with Clause 29 (Set-off)) apply any amount received by it for that Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from that Obligor under the Finance

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EUROPE-LEGAL-311309212 114 Documents or in or towards purchase of any amount of any currency to be so applied. 28.4 Clawback (a) Where a sum is to be paid to the Facility Agent under the Finance Documents for another Party, the Facility Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum. (b) If the Facility Agent pays an amount to another Party and it proves to be the case that the Facility Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Facility Agent shall on demand refund the same to the Facility Agent together with interest on that amount from the date of payment to the date of receipt by the Facility Agent, calculated by the Facility Agent to reflect its cost of funds. 28.5 Impaired Agent (a) If, at any time, the Facility Agent becomes an Impaired Agent, an Obligor or a Lender which is required to make a payment under the Finance Documents to the Facility Agent in accordance with Clause 28.1 (Payments to the Facility Agent) may instead either pay that amount direct to the required recipient or pay that amount to an interest-bearing account held with an Acceptable Bank and in relation to which no Insolvency Event has occurred and is continuing, in the name of the Obligor or the Lender making the payment and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents. In each case such payments must be made on the due date for payment under the Finance Documents. (b) All interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the beneficiaries of that trust account pro rata to their respective entitlements. (c) A Party which has made a payment in accordance with this Clause 28.5 shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of the trust account. (d) Promptly upon the appointment of a successor Facility Agent in accordance with Clause 25.12 (Replacement of the Facility Agent), each Party which has made a payment to a trust account in accordance with this Clause 28.5 shall give all requisite instructions to the bank with whom the trust account is held to EUROPE-LEGAL-311309212 115 transfer the amount (together with any accrued interest) to the successor Facility Agent for distribution in accordance with Clause 28.2 (Distributions by the Facility Agent). 28.6 Partial payments (a) If the Facility Agent receives a payment that is insufficient to discharge all the amounts then due and payable by an Obligor under the Finance Documents, the Facility Agent shall apply that payment towards the obligations of that Obligor under the Finance Documents in the following order: (i) firstly, in or towards payment pro rata of any unpaid fees, costs and expenses of the Facility Agent or the Arranger under the Finance Documents; (ii) secondly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under this Agreement; (iii) thirdly, in or towards payment pro rata of any principal due but unpaid under this Agreement; and (iv) fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents. (b) The Facility Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs (a)(ii)to (iv) above. (c) Paragraphs (a) and (b) above will override any appropriation made by an Obligor. 28.7 No set-off by Obligors All payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim unless: (a) the relevant payments are to be made to a Defaulting Lender; and (b) all Lenders (other than the Defaulting Lender) have agreed to that Obligor making such payments with set-off or counterclaim. 28.8 Business Days (a) Any payment which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not). (b) During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the

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EUROPE-LEGAL-311309212 116 principal or Unpaid Sum at the rate payable on the original due date. 28.9 Currency of account (a) Subject to paragraphs (b) to (e) below, the Base Currency is the currency of account and payment for any sum due from an Obligor under any Finance Document. (b) A repayment of a Loan or Unpaid Sum or a part of a Loan or Unpaid Sum shall be made in the currency in which that Loan or Unpaid Sum is denominated on its due date. (c) Each payment of interest shall be made in the currency in which the sum in respect of which the interest is payable was denominated when that interest accrued. (d) Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred. (e) Any amount expressed to be payable in a currency other than the Base Currency shall be paid in that other currency. 28.10 Change of currency (a) Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then: (i) any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Facility Agent (acting reasonably and after consultation with the Company); and (ii) any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Facility Agent (acting reasonably and after consultation with the Company). (b) If a change in any currency of a country occurs, this Agreement will, to the extent the Facility Agent (acting reasonably and after consultation with the Company) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Market and otherwise to reflect the change in currency. EUROPE-LEGAL-311309212 117 28.11 Disruption to Payment Systems etc. If either the Facility Agent determines (in its discretion) that a Disruption Event has occurred or the Facility Agent is notified by the Company that a Disruption Event has occurred: (a) the Facility Agent may, and shall if requested to do so by the Company, consult with the Company with a view to agreeing with the Company such changes to the operation or administration of the Facility as the Facility Agent may deem necessary in the circumstances; (b) the Facility Agent shall not be obliged to consult with the Company in relation to any changes mentioned in paragraph (a) if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation to agree to such changes; (c) the Facility Agent may consult with the Finance Parties in relation to any changes mentioned in paragraph (a) but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances; (d) any such changes agreed upon by the Facility Agent and the Company shall (whether or not it is finally determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be, waiver of) the terms of the Finance Documents notwithstanding the provisions of Clause 34 (Amendments and Waivers); (e) the Facility Agent shall not be liable for any damages, costs or losses whatsoever arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 28.11 save to the extent the relevant damage, cost or loss (as the case may be) is caused by the fraud of the Facility Agent; and (f) the Facility Agent shall notify the Finance Parties of all changes agreed pursuant to paragraph (d) above. 28.12 Amounts paid in error (a) If the Facility Agent pays an amount to another Party and within 5 Business Days of the date of payment the Facility Agent notifies that Party that that payment was an Erroneous Payment then the Party to whom that amount was paid by the Facility Agent shall promptly refund the same to the Facility Agent. (b) Neither: (i) the obligations of any Party to the Facility Agent; nor

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EUROPE-LEGAL-311309212 118 (ii) the remedies of the Facility Agent, (whether arising under this Clause 28.12 or otherwise) which relate to an Erroneous Payment will be affected by any act, omission, matter or thing which, but for this paragraph (b), would reduce, release or prejudice any such obligation or remedy (whether or not known by the Facility Agent or any other Party). (c) All payments to be made by a Party to the Facility Agent (whether made pursuant to this Clause 28 or otherwise) which relate to an Erroneous Payment shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim. (d) In this Agreement, Erroneous Payment means a payment of an amount by the Facility Agent to another Party which the Facility Agent determines (in its sole discretion) was made in error. 29. Set-Off Without prejudice to the normal rights of the Finance Parties at law, after the occurrence of an Event of Default which is continuing, a Finance Party may set off any matured obligation due from an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. That Finance Party shall promptly notify that Obligor of any such set-off or conversion. 30. Notices 30.1 Communications in writing Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax or letter. 30.2 Addresses The address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is: (a) in the case of the Company, that identified with its name below; EUROPE-LEGAL-311309212 119 (b) in the case of each Lender or any other Obligor, that notified in writing to the Facility Agent on or prior to the date on which it becomes a Party; and (c) in the case of the Facility Agent, that identified with its name below, or any substitute address, fax number or department or officer as the Party may notify to the Facility Agent (or the Facility Agent may notify to the other Parties, if a change is made by the Facility Agent) by not less than five Business Days' notice. 30.3 Delivery (a) Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective: (i) if by way of fax, when received in legible form; or (ii) if by way of letter, when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address, (iii) and, if a particular department or officer is specified as part of its address details provided under Clause 30.2 (Addresses), if addressed to that department or officer. (b) Any communication or document to be made or delivered to the Facility Agent will be effective only when actually received by the Facility Agent and then only if it is expressly marked for the attention of the department or officer identified with the Facility Agent's signature below (or any substitute department or officer as the Facility Agent shall specify for this purpose). (c) All notices from or to an Obligor shall be sent through the Facility Agent. (d) Any communication or document made or delivered to the Company in accordance with this Clause 30.3 will be deemed to have been made or delivered to each of the Obligors. 30.4 Notification of address and fax number Promptly upon receipt of notification of an address and fax number or change of address or fax number pursuant to Clause 30.2 (Addresses) or changing its own address or fax number, the Facility Agent shall notify the other Parties.

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EUROPE-LEGAL-311309212 120 30.5 Communication when Facility Agent is Impaired Agent If the Facility Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Facility Agent, communicate with each other directly and (while the Facility Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the Facility Agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly. This provision shall not operate after a replacement Facility Agent has been appointed. 30.6 Electronic communication (a) Any communication to be made between the Facility Agent and a Lender or an Obligor and the Facility Agent under or in connection with the Finance Documents may be made by electronic mail or other electronic means, if the Facility Agent and the relevant Lender or, as appropriate, the relevant Obligor and the Facility Agent: (i) agree that, unless and until notified to the contrary, this is to be an accepted form of communication; (ii) notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and (iii) notify each other of any change to their address or any other such information supplied by them. (b) Any electronic communication made between the Facility Agent and a Lender or an Obligor and the Facility Agent will be effective only when actually received in readable form and in the case of any electronic communication made by a Lender to the Facility Agent or an Obligor to the Facility Agent only if it is addressed in such a manner as the Facility Agent shall specify for this purpose. (c) The ability of an Obligor to use electronic communications is without prejudice to its obligation to submit any Utilisation Request, Accession Letter, or Resignation Letter in the form required under this Agreement or any other document or notice which requires the signature of any director or authorised signatory of an Obligor. 30.7 English language (a) Any notice given under or in connection with any Finance Document must be in English. (b) All other documents provided under or in connection with any Finance Document must be: EUROPE-LEGAL-311309212 121 (i) in English; or (ii) if not in English, and if so required by the Facility Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document. 31. Calculations and Certificates 31.1 Accounts In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate. 31.2 Certificates and determinations Any certification or determination by a Finance Party of a rate or amount under any Finance Document shall set out the basis of calculation in reasonable detail and is prima facie evidence of the matters to which it relates. 31.3 Day count convention and interest calculation (a) Any interest, commission or fee accruing under a Finance Document will accrue from day to day and the amount of any such interest, commission or fee is calculated: (i) on the basis of the actual number of days elapsed and a year of 365 days in the case of Sterling or 360 days in the case of euro and US Dollars or, in any case where the practice in the Relevant Market differs, in accordance with that market practice; and (ii) subject to paragraph (b) below, without rounding. (b) The aggregate amount of any accrued interest, commission or fee which is, or becomes, payable by an Obligor under a Finance Document shall be rounded to 2 decimal places. 32. Partial Invalidity If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.

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EUROPE-LEGAL-311309212 122 33. Remedies and Waivers No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or remedy under the Finance Documents shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy. The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law. 34. Amendments and Waivers 34.1 Required consents (a) Subject to Clause 34.2 (Exceptions) and Clause 34.3 (Changes to reference rates) any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Obligors and any such amendment or waiver will be binding on all Parties. (b) The Facility Agent may effect, on behalf of any Finance Party, and the Company may effect, on behalf of any Obligor, any amendment or waiver permitted by this Clause. 34.2 Exceptions (a) Subject to Clause 34.3 (Changes to reference rates) an amendment or waiver that has the effect of changing or which relates to: (i) the definition of EURIBOR, Majority Lenders or Super- Majority Lenders in Clause 1.1 (Definitions); (ii) an extension to the date of payment of any amount under the Finance Documents; (iii) a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable; (iv) other than pursuant to Clause 2.2 (Increase), an increase in any Commitment, an extension of any Availability Period or any requirement that a cancellation of Commitments reduces the Commitments of the Lenders rateably under the relevant Facility; (v) a change to the Borrowers or Guarantors other than in accordance with Clause 24 (Changes to the Obligors); (vi) any provision which expressly requires the consent of all the Lenders; EUROPE-LEGAL-311309212 123 (vii) Clause 2.3 (Finance Parties' rights and obligations), Clause 23 (Changes to the Lenders), Clause 24 (Changes to the Obligors), Clause 27 (Sharing among the Finance Parties), this Clause 34, Clause 41 (Governing law) or Clause 42 (Enforcement); or (viii) the nature or scope of the guarantee and indemnity granted under Clause 18 (Guarantee and Indemnity), shall not be made without the prior consent of all the Lenders. (b) An amendment or waiver which relates to the rights or obligations of the Facility Agent or the Arranger may not be effected without the consent of the Facility Agent or the Arranger. (c) An amendment or waiver which relates to any part of paragraph (b) of Clause 19.11 (Sanctions), paragraph (b) of Clause 21.11 (Use of Proceeds), this paragraph (c) and/or paragraph (d) below of Clause 34.2 (Exceptions) may be amended or waived only with the consent of the Majority Lenders and each Lender relying on any part of paragraph (b) of Clause 19.11 (Sanctions), paragraph (b) of Clause 21.11 (Use of Proceeds) and/or paragraph (d) of Clause 34.2 (Exceptions), as the case may be, and the Obligors. (d) In connection with any waiver, determination or direction relating to any part of paragraph (b) of Clause 19.11 (Sanctions) and/or paragraph (b) of Clause 21.11 (Use of Proceeds) of which a Lender does not have the benefit, the Commitment of that Lender will be excluded for the purpose of determining whether the consent of the requisite majority of Lenders has been obtained or whether the determination or direction by the requisite majority of Lenders has been made. (e) If a Lender fails to respond or vote in relation to a request for a consent, waiver, amendment or other vote under the Finance Documents (a Request) within fifteen Business Days (unless any Borrower and the Facility Agent agree a longer time period in relation to any request) of that Request being made, (i) with respect to any Request that does not require the consent of all Lenders pursuant to paragraph (a) of this Clause 34.2, in ascertaining whether the Majority Lenders or any other given percentage of the Total Commitments has been obtained, that Lender's Commitments shall not be included (for the avoidance of doubt, for the purposes of calculating both (A) the Total Commitments and (B) the aggregate Commitments of Lenders voting in favour of such Request) and (ii) with respect to any Request requiring the consent of all Lenders pursuant to paragraph (a) of this Clause 34.2, that Lender shall be deemed to have declined to consent to such Request (and the requested consent, waiver, amendment or other vote shall not become

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EUROPE-LEGAL-311309212 124 effective); provided, however, that if the Super-Majority Lenders have agreed to the Request, the Company may exercise its rights under Clause 8.6 (Replacement of a Non-Consenting Lender) with respect to such Lender as if it were a Non-Consenting Lender. 34.3 Changes to reference rates (a) If a Published Rate Replacement Event has occurred in relation to any Published Rate for a currency which can be selected for a Loan, any amendment or waiver which relates to: (i) providing for the use of a Replacement Reference Rate in relation to that currency in place of (or in addition to) the affected Published Rate; and (ii) (A) aligning any provision of any Finance Document to the use of that Replacement Reference Rate; (B) enabling that Replacement Reference Rate to be used for the calculation of interest under this Agreement (including, without limitation, any consequential changes required to enable that Replacement Reference Rate to be used for the purposes of this Agreement); (C) implementing market conventions applicable to that Replacement Reference Rate; (D) providing for appropriate fallback (and market disruption) provisions for that Replacement Reference Rate; or (E) adjusting the pricing to reduce or eliminate, to the extent reasonably practicable, any transfer of economic value from one Party to another as a result of the application of that Replacement Reference Rate (and if any adjustment or method for calculating any adjustment has been formally designated, nominated or recommended by the Relevant Nominating Body, the adjustment shall be determined on the basis of that designation, nomination or recommendation), may be made with the consent of the Facility Agent (acting on the instructions of the Majority Lenders) and the Obligors. (b) An amendment or waiver that relates to, or has the effect of, aligning the means of calculation of interest on a Compounded Rate Loan in any currency under this Agreement to any recommendation of a Relevant Nominating Body which: EUROPE-LEGAL-311309212 125 (i) relates to the use of the RFR for that currency on a compounded basis in the international or any relevant domestic syndicated loan markets; and (ii) is issued on or after the date of this Agreement, may be made with the consent of the Facility Agent (acting on the instructions of the Majority Lenders) and the Obligors. (c) If any Lender fails to respond to a request for an amendment or waiver described in paragraph (a) or paragraph (b) above within 10 Business Days (or such longer time period in relation to any request which the Company and the Facility Agent may agree) of that request being made: (i) its Commitment(s) shall not be included for the purpose of calculating the Total Commitments when ascertaining whether any relevant percentage of Total Commitments has been obtained to approve that request; and (ii) its status as a Lender shall be disregarded for the purpose of ascertaining whether the agreement of any specified group of Lenders has been obtained to approve that request. (d) In this Clause 34.3: Published Rate means: (i) the Primary Term Rate for any Quoted Tenor; or (ii) an RFR. Published Rate Replacement Event means, in relation to a Published Rate: (c) the methodology, formula or other means of determining that Published Rate has, in the opinion of the Majority Lenders, and the Obligors materially changed; (d) (i) (A) the administrator of that Published Rate or its supervisor publicly announces that such administrator is insolvent; or (B) information is published in any order, decree, notice, petition or filing, however described, of or filed with a court, tribunal, exchange, regulatory authority or similar administrative, regulatory or judicial body which reasonably confirms that the

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EUROPE-LEGAL-311309212 126 administrator of that Published Rate is insolvent, provided that, in each case, at that time, there is no successor administrator to continue to provide that Published Rate; (ii) the administrator of that Published Rate publicly announces that it has ceased or will cease to provide that Published Rate permanently or indefinitely and, at that time, there is no successor administrator to continue to provide that Published Rate; (iii) the supervisor of the administrator of that Published Rate publicly announces that such Published Rate has been or will be permanently or indefinitely discontinued; (iv) the administrator of that Published Rate or its supervisor announces that that Published Rate may no longer be used; (v) in the case of the Primary Term Rate for any Quoted Tenor for euro, the supervisor of the administrator of that Primary Term Rate makes a public announcement or publishes information stating that that Primary Term Rate for that Quoted Tenor is no longer, or as of a specified future date will no longer be, representative of the underlying market or economic reality that it is intended to measure and that representativeness will not be restored (as determined by such supervisor); (e) the administrator of that Published Rate (or the administrator of an interest rate which is a constituent element of that Published Rate) determines that that Published Rate should be calculated in accordance with its reduced submissions or other contingency or fallback policies or arrangements and the circumstance(s) or event(s) leading to such determination are not (in the opinion of the Majority Lenders and the Obligors) temporary; (f) in the opinion of the Majority Lenders and the Obligors, that Published Rate is otherwise no longer appropriate for the purposes of calculating interest under this Agreement. Relevant Nominating Body means any applicable central bank, regulator or other supervisory authority or a group of them, or any working group or committee sponsored or chaired by, or EUROPE-LEGAL-311309212 127 constituted at the request of, any of them or the Financial Stability Board. Replacement Reference Rate means a reference rate which is: (a) formally designated, nominated or recommended as the replacement for a Published Rate by: (i) the administrator of that Published Rate (provided that the market or economic reality that such reference rate measures is the same as that measured by that Published Rate); or (ii) any Relevant Nominating Body, and if replacements have, at the relevant time, been formally designated, nominated or recommended under both paragraphs, the "Replacement Reference Rate" will be the replacement under paragraph (ii) above; (b) in the opinion of the Majority Lenders and the Obligors, generally accepted in the international or any relevant domestic syndicated loan markets as the appropriate successor to a Published Rate; or (c) in the opinion of the Majority Lenders and the Obligors, an appropriate successor to a Published Rate. 34.4 Disenfranchisement of Defaulting Lenders (a) For so long as a Defaulting Lender has any Available Commitment, in ascertaining the Majority Lenders or whether any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments has been obtained in respect of any request for a consent, waiver, amendment or other vote under the Finance Documents, that Defaulting Lender's Commitments will be reduced (for the avoidance of doubt, for the purposes of calculating both (i) the Total Commitments and (ii) the aggregate Commitments of Lenders voting in favour of such consent, waiver, amendment or other vote under the Finance Documents) by the amount of its Available Commitments. (b) For the purposes of this Clause 34.4, the Facility Agent may assume that the following Lenders are Defaulting Lenders: (i) any Lender which has notified the Facility Agent that it has become a Defaulting Lender; (ii) any Lender in relation to which it is aware that any of the events or circumstances referred to in paragraphs (a), (b) or (c) of the definition of Defaulting Lender has occurred,

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EUROPE-LEGAL-311309212 128 unless it has received notice to the contrary from the Lender concerned (together with any supporting evidence reasonably requested by the Facility Agent) or the Facility Agent is otherwise aware that the Lender has ceased to be a Defaulting Lender. 34.5 Replacement of a Defaulting Lender (a) The Company may, at any time a Lender has become and continues to be a Defaulting Lender, by giving five Business Days' prior written notice to the Facility Agent and such Lender: (i) replace such Lender by requiring such Lender to (and to the extent permitted by law such Lender shall) transfer pursuant to Clause 23 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement; (ii) require such Lender to (and to the extent permitted by law such Lender shall) transfer pursuant to Clause 23 (Changes to the Lenders) all (and not part only) of the undrawn Commitment of the Lender; or (iii) require such Lender to (and to the extent permitted by law such Lender shall) transfer pursuant to Clause 23 (Changes to the Lenders) all (and not part only) of its rights and obligations, to a Lender or other bank, financial institution, trust, fund or other entity (a Replacement Lender) selected by the Company (which is not a member of the Group) and which confirms its willingness to assume and does assume all the obligations or all the relevant obligations of the transferring Lender (including the assumption of the transferring Lender's participations or unfunded participations (as the case may be) on the same basis as the transferring Lender) for a purchase price in cash payable at the time of transfer equal to the outstanding principal amount of such Lender's participation in the outstanding Utilisations and all accrued interest, Break Costs (if any) and other amounts payable in relation thereto under the Finance Documents. (b) Any transfer of rights and obligations of a Defaulting Lender pursuant to this Clause shall be subject to the following conditions: (i) the relevant Lender continues to be a Defaulting Lender at the time when the Company exercises its rights under this Clause 34.5); (ii) the Company shall have no right to replace the Facility Agent; EUROPE-LEGAL-311309212 129 (iii) neither the Facility Agent nor the Defaulting Lender shall have any obligation to the Company to find a Replacement Lender; (iv) the transfer must take place as soon as reasonably practicable following receipt by the Facility Agent of the notice referred to in paragraph (a) above; and (v) in no event shall the Defaulting Lender be required to pay or surrender to the Replacement Lender any of the fees received by the Defaulting Lender pursuant to the Finance Documents. 35. Confidentiality 35.1 Confidential Information Each Finance Party agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 35.2 (Disclosure of Confidential Information) and Clause 35.3 (Disclosure to numbering service providers), to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information and to use all reasonable endeavours to ensure that any person to whom that Finance Party passes any Confidential Information (unless disclosed in accordance with paragraph (b)(v) of Clause 35.2 (Disclosure of Confidential Information)) acknowledges and complies with the provisions of this Clause 35 as if that person were bound by it. 35.2 Disclosure of Confidential Information Any Finance Party may disclose, on a need-to-know basis: (a) to any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors and partners such Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph (a) is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information; (b) to any person: (i) to (or through) whom it transfers (or may potentially transfer) all or any of its rights and/or obligations under one or more Finance Documents and to any of that person's Affiliates, Representatives and professional

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EUROPE-LEGAL-311309212 130 advisers for the purpose of that actual or potential assignment or transfer; (ii) with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub- participation in relation to, or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents and/or one or more Obligors and to any of that person's Affiliates, Representatives and professional advisers for the purpose of that actual or potential sub-participation or transaction; (iii) appointed by any Finance Party or by a person to whom paragraph (b)(i) or (ii) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf (including, without limitation, any person appointed under paragraph (b) of Clause 25.14 (Relationship with the Lenders)); (iv) who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in paragraph (b)(i) or (b)(ii) above for the purpose of that transaction; (v) to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation; (vi) to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 23.11 (Security over Lenders' rights); (vii) to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes in connection with the Finance Documents; (viii) who is a Party; or (ix) with the consent of the Company; in each case, such Confidential Information as that Finance Party shall consider appropriate if: (A) in relation to paragraphs (b)(i), (b)(ii) and (b)(iii) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall EUROPE-LEGAL-311309212 131 be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information; (B) in relation to paragraph (b)(iv) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information; (C) in relation to paragraphs (b)(v), (b)(vi) and (b)(vii) above, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the reasonable opinion of that Finance Party, it is not practicable so to do in the circumstances; (c) to any person appointed by that Finance Party or by a person to whom paragraph (b)(i) or (b)(ii) above applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this paragraph (c) if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Company and the relevant Finance Party; (d) to any other person appointed by that Finance Party in connection with or ancillary to services provided under this Agreement (such person to include any service provider or sub-contractor) such Confidential Information as may be required to be disclosed, and to the extent necessary in the reasonable opinion of that Finance Party, to enable such person to provide any of the services referred to in this paragraph (d) if such person is bound by the requirements of confidentiality in relation to the Confidential Information; and

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EUROPE-LEGAL-311309212 132 (e) to any rating agency (including its professional advisers) the following information: (i) names of Obligors; (ii) country of domicile of Obligors; (iii) place of incorporation of Obligors; (iv) date of this Agreement; (v) the names of the Facility Agent and the Arranger; (vi) date of each amendment and restatement of this Agreement; (vii) amount of Total Commitments; (viii) currencies of the Facility; (ix) type of Facility; (x) ranking of Facility; (xi) Termination Date for Facility; (xii) the amount of such Finance Party's Commitment; (xiii) changes to any of the information previously supplied pursuant to paragraphs (i) to (xii) above; and (xiv) such other information agreed between such Finance Party and the Company, as may be required to be disclosed to enable such rating agency to perform its normal corporate loan rating activities in relation to the Finance Documents. 35.3 Disclosure to numbering service providers (a) Any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification numbering services in respect of this Agreement, the Facility and/or one or more Obligors the following information: (i) names of Obligors; (ii) country of domicile of Obligors; (iii) place of incorporation of Obligors; (iv) date of this Agreement; (v) the names of the Facility Agent and the Arranger; EUROPE-LEGAL-311309212 133 (vi) date of each amendment and restatement of this Agreement; (vii) amount of Total Commitments; (viii) currencies of the Facility; (ix) type of Facility; (x) ranking of Facility; (xi) Termination Date for Facility; (xii) changes to any of the information previously supplied pursuant to paragraphs (i) to (xi) above; and (xiii) such other information agreed between such Finance Party and the Company, to enable such numbering service provider to provide its usual syndicated loan numbering identification services. (b) The Parties acknowledge and agree that each identification number assigned to this Agreement, the Facility and/or one or more Obligors by a numbering service provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider. (c) The Facility Agent shall notify the Company and the other Finance Parties of: (i) the name of any numbering service provider appointed by the Facility Agent in respect of this Agreement, the Facility and/or one or more Obligors; and (ii) the number or, as the case may be, numbers assigned to this Agreement, the Facility and/or one or more Obligors by such numbering service provider. 35.4 Entire agreement This Clause 35 (Confidentiality) constitutes the entire agreement between the Parties in relation to the obligations of the Finance Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information. 35.5 Inside information Each of the Finance Parties acknowledges that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing

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EUROPE-LEGAL-311309212 134 and market abuse and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose. 35.6 Notification of disclosure Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the Company: (a) of the circumstances of any disclosure of Confidential Information made pursuant to (i) paragraph (b)(v) of Clause 35.2 (Disclosure of Confidential Information) except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function or (ii) paragraph (b)(vi) of Clause 35.2 (Disclosure of Confidential Information); and (b) upon becoming aware that Confidential Information has been disclosed in breach of this Clause 35. 35.7 Continuing obligations The obligations in this Clause 35 are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of twelve months from the earlier of: (a) the date on which all amounts payable by the Obligors under or in connection with this Agreement have been paid in full and all Commitments have been cancelled or otherwise cease to be available; and (b) the date on which such Finance Party otherwise ceases to be a Finance Party. 36. Confidentiality of Funding Rates 36.1 Confidentiality and disclosure (a) The Facility Agent and each Obligor agree to keep each Funding Rate confidential and not to disclose it to anyone, save to the extent permitted by paragraphs (b) and (c) below. (b) The Facility Agent may disclose: (i) any Funding Rate to the relevant Borrower pursuant to Clause 9.5 (Notification of rates of interest); and (ii) any Funding Rate to any person appointed by it to provide administration services in respect of one or more of the Finance Documents to the extent necessary to enable such service provider to provide those services if the service provider to whom that information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for EUROPE-LEGAL-311309212 135 Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Facility Agent and the relevant Lender. (c) The Facility Agent may disclose any Funding Rate and each Obligor may disclose any Funding Rate, to: (i) any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives if any person to whom that Funding Rate is to be given pursuant to this paragraph (i) is informed in writing of its confidential nature and that it may be price- sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of that Funding Rate or is otherwise bound by requirements of confidentiality in relation to it; (ii) any person to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation if the person to whom that Funding Rate is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Facility Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances; (iii) any person to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes if the person to whom that Funding Rate is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Facility Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances; and (iv) any person with the consent of the relevant Lender. 36.2 Related obligations (a) The Facility Agent and each Obligor acknowledge that each Funding Rate is or may be price-sensitive information and that its use may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and the Facility Agent and each Obligor undertake not to use any Funding Rate for any unlawful purpose.

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EUROPE-LEGAL-311309212 136 (b) The Facility Agent and each Obligor agree (to the extent permitted by law and regulation) to inform the relevant Lender, as the case may be: (i) of the circumstances of any disclosure made pursuant to paragraph (c)(ii) of Clause 36.1 (Confidentiality and disclosure) except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and (ii) upon becoming aware that any information has been disclosed in breach of this Clause 36. 36.3 No Event of Default No Event of Default will occur under Clause 22.2 (Other obligations) by reason only of an Obligor's failure to comply with this Clause 36. 37. Bail-in 37.1 Contractual recognition of bail-in Notwithstanding any other term of any Finance Document or any other agreement, arrangement or understanding between the Parties, each Party acknowledges and accepts that any liability of any Party to any other Party under or in connection with the Finance Documents may be subject to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be bound by the effect of: (a) any Bail-In Action in relation to any such liability, including (without limitation): (i) a reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in respect of any such liability; (ii) a conversion of all, or part of, any such liability into shares or other instruments of ownership that may be issued to, or conferred on, it; and (iii) a cancellation of any such liability; and (b) a variation of any term of any Finance Document to the extent necessary to give effect to any Bail-In Action in relation to any such liability. EUROPE-LEGAL-311309212 137 37.2 Bail-in definitions In this Clause 37: Article 55 BRRD means Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms. Bail-In Action means the exercise of any Write-down and Conversion Powers. Bail-In Legislation means: (a) in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 BRRD, the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time; (b) in relation to the United Kingdom, the UK Bail-In Legislation; and (c) in relation to any state other than such an EEA Member Country and the United Kingdom, any analogous law or regulation from time to time which requires contractual recognition of any Write- down and Conversion Powers contained in that law or regulation. EEA Member Country means any member state of the European Union, Iceland, Liechtenstein and Norway. EU Bail-In Legislation Schedule means the document described as such and published by the Loan Market Association (or any successor person) from time to time. Resolution Authority means any body which has authority to exercise any Write-down and Conversion Powers. UK Bail-In Legislation means Part I of the United Kingdom Banking Act 2009 and any other law or regulation applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (otherwise than through liquidation, administration or other insolvency proceedings). Write-down and Conversion Powers means: (a) in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time to time, the powers described as such in relation to that Bail-In Legislation in the EU Bail-In Legislation Schedule; (b) in relation to the UK Bail-In Legislation, any powers under that UK Bail-In Legislation to cancel, transfer or dilute shares issued by a person that is a bank or investment firm or other financial institution or affiliate of a bank, investment firm or other financial

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EUROPE-LEGAL-311309212 138 institution, to cancel, reduce, modify or change the form of a liability of such a person or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that UK Bail-In Legislation that are related to or ancillary to any of those powers; and (c) in relation to any other applicable Bail-In Legislation: (i) any powers under that Bail-In Legislation to cancel, transfer or dilute shares issued by a person that is a bank or investment firm or other financial institution or affiliate of a bank, investment firm or other financial institution, to cancel, reduce, modify or change the form of a liability of such a person or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers; and (ii) any similar or analogous powers under that Bail-In Legislation 38. Patriot Act Each Finance Party that is subject to the requirements of the Patriot Act hereby notifies each Obligor that pursuant to the requirement of the Patriot Act, it is required to obtain, verify and record information that identifies the Obligors, which information includes the name and address of the Obligors and other information that will allow such Finance Party to identify the Obligors in accordance with the Patriot Act and any Borrower in accordance with the Beneficial Ownership Regulation. 39. Waiver of trial by jury EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT THAT IT MAY HAVE TO A TRIAL BY JURY (WHETHER IN NEW YORK OR ELSEWHERE) IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER FINANCE DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO AGREES THAT ANY PARTY MAY FILE A COPY OF THIS SECTION WITH ANY COURT AS EVIDENCE OF THE WAIVER OF ITS JURY TRIAL RIGHTS. EUROPE-LEGAL-311309212 139 40. Counterparts Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document. 41. Governing Law This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law. 42. Enforcement 42.1 Jurisdiction (a) The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement or any non-contractual obligation arising out of or in connection with this Agreement) (a Dispute). (b) The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary. (c) Notwithstanding paragraphs (a) and (b) above, no Finance Party shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions. 42.2 Service of process Without prejudice to any other mode of service allowed under any relevant law, each Obligor (other than an Obligor incorporated in England and Wales): (a) irrevocably appoints the Company as its agent for service of process in relation to any proceedings before the English courts in connection with any Finance Document; and (b) agrees that failure by a process agent to notify the relevant Obligor of the process will not invalidate the proceedings concerned. 42.3 Acknowledgement Regarding Any Supported QFCs To the extent that the Finance Documents provide support, through a guarantee or otherwise, for hedging agreements or any other agreement or instrument that is a QFC (such support, QFC Credit Support and each such QFC a Supported QFC), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title

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EUROPE-LEGAL-311309212 140 II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the US Special Resolution Regimes) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Finance Documents and any Supported QFC may in fact be stated to be governed by the laws of any other country or state of the US): (a) In the event a Covered Entity that is party to a Supported QFC (each, a Covered Party) becomes subject to a proceeding under a US Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the US Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the US or a state of the US. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a US Special Resolution Regime, Default Rights under the Finance Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the US Special Resolution Regime if the Supported QFC and the Finance Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support. (b) As used in this Clause 42.3 (Acknowledgement Regarding Any Supported QFCs), the following terms have the following meanings: (i) BHC Act Affiliate of a party means an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party. (ii) Covered Entity means any of the following: (A) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (B) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or EUROPE-LEGAL-311309212 141 (C) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b). (iii) Default Right has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable. (iv) QFC has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D). This Agreement has been entered into on the date stated at the beginning of this Agreement.

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EUROPE-LEGAL-311309212 142 Schedule 1 The Original Lenders Name of Original Lender Commitment Treaty Passport scheme reference number and jurisdiction of tax residence (if applicable) Bank of America, N.A., London Branch $136,500,000 N/A Bank of China Limited, London Branch $136,500,000 N/A Barclays Bank PLC $136,500,000 N/A BNP Paribas, London Branch $136,500,000 N/A Commerzbank Aktiengesellschaft, London Branch $136,500,000 N/A MUFG Bank, Ltd. $136,500,000 N/A Truist Bank $136,500,000 13/T/357522/DTTP USA U.S. Bank National Association $136,500,000 13/U/62184/DTTP USA UniCredit Bank GmbH $136,500,000 7/U/237605/DTTP Germany Wells Fargo Bank, N.A., London Branch $136,500,000 N/A DBS Bank Ltd., London Branch $67,500,000 67/D/363894/DTTP Singapore Standard Chartered Bank $67,500,000 N/A EUROPE-LEGAL-311309212 143 Schedule 2 Conditions Precedent Part A Conditions Precedent to Initial Utilisation 1. The Company 1.1 A copy of the constitutional documents of each Original Obligor. 1.2 A copy of a resolution of the board of directors and/or a committee of the board of directors (or equivalent managing body) of each Original Obligor (together with a copy of the resolutions appointing such committee): (a) approving the terms of, and the transactions contemplated by, the Finance Documents and resolving that it execute the Finance Documents; (b) authorising a specified person or persons to execute the Finance Documents on its behalf; and (c) authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Utilisation Request) to be signed and/or despatched by it under or in connection with the Finance Documents. 1.3 A specimen of the signature of each person authorised by the resolution referred to in paragraph 1.2 above. 1.4 In relation to an Obligor incorporated in the United States, a copy of a good standing certificate issued as of a recent date by the Secretary of State or other appropriate official of such Obligor's jurisdiction of incorporation or organisation. 1.5 A copy of any necessary resolution signed by the holders of the issued shares in each Original Guarantor (other than the Company) which is a Subsidiary of the Company and is incorporated in England and Wales, approving the terms of, and the transactions contemplated by, the Finance Documents to which the Original Guarantor is a party. 1.6 A certificate of the Company (signed by a duly authorised officer) confirming that borrowing or guaranteeing, as appropriate, the Total Commitments would not cause any borrowing, guaranteeing or similar limit binding on any Original Obligor to be exceeded. 1.7 A certificate of each Original Obligor (signed by an authorised signatory) certifying that each copy document relating to it specified in this Part A of Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement (except that, where such Original Obligor is an US Obligor, such certificate shall only be in respect

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EUROPE-LEGAL-311309212 144 of each copy document relating to it specified in paragraphs 1.1 to 1.5 (inclusive) of this Part A of Schedule 2). 1.8 The Original Financial Statements. 1.9 A cancellation and, if applicable, prepayment notice (which shall be irrevocable) in respect of the Existing Facility to be effective on the date of this Agreement and such that the Existing Facility will be cancelled and prepaid in full on the first Utilisation Date under this Agreement. 1.10 The Finance Documents, duly executed by the Obligors. 2. Legal Opinions 2.1 A legal opinion of Clifford Chance LLP, legal advisers to the Mandated Lead Arranger and the Facility Agent in England, substantially in the form distributed to the Original Lenders prior to signing this Agreement. 2.2 A legal opinion of Freshfields US LLP, legal advisers to the Company in New York, substantially in the form distributed to the Original Lenders prior to signing this Agreement. 3. Other documents and evidence The Fee Letters, duly executed. EUROPE-LEGAL-311309212 145 Part B Conditions Precedent Required to be Delivered by an Additional Obligor 1. An Accession Letter, duly executed by the Additional Obligor and the Company. 2. A copy of the constitutional documents of the Additional Obligor. 3. A copy of a resolution of (or of a committee of) the board of directors of the Additional Obligor: (a) approving the terms of, and the transactions contemplated by, the Accession Letter and the Finance Documents and resolving that it execute the Accession Letter; (b) authorising a specified person or persons to execute the Accession Letter on its behalf; and (c) authorising a specified person or persons, on its behalf, to sign and/or despatch all other documents and notices (including, in relation to an Additional Borrower, any Utilisation Request) to be signed and/or despatched by it under or in connection with the Finance Documents. 4. A specimen of the signature of each person authorised by the resolution referred to in paragraph 3 above. 5. In relation to an Additional Obligor incorporated in the United States, a copy of a good standing certificate issued as of a recent date by the Secretary of State or other appropriate official of such Additional Obligor's jurisdiction of incorporation or organisation. 6. A copy of any necessary resolutions signed by all the holders of the issued shares of the Additional Guarantor which are members of the Group, approving the terms of, and the transactions contemplated by, the Finance Documents to which the Additional Guarantor is a party. 7. A certificate of the Additional Obligor (signed by an authorised signatory) confirming that borrowing or guaranteeing, as appropriate, the Total Commitments would not cause any borrowing, guaranteeing or similar limit binding on it to be exceeded 8. A certificate of the Additional Obligor (signed by an authorised signatory) certifying that each copy document listed in this Part B of Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of the Accession Letter (except that, where such Additional Obligor is a US Obligor, such certificate shall only be in respect of each copy document relating to it specified in paragraphs 2 to 7 (inclusive) of this Part B of Schedule 2).

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EUROPE-LEGAL-311309212 146 9. If available, the latest audited financial statements of the Additional Obligor. 10. A legal opinion of Clifford Chance LLP, legal advisers to the Arranger and the Facility Agent in England. 11. If the Additional Obligor is incorporated in a jurisdiction other than England and Wales, a legal opinion of the legal advisers to the Arranger and the Facility Agent in the jurisdiction in which the Additional Obligor is incorporated. 12. If the proposed Additional Obligor is incorporated in a jurisdiction other than England and Wales, evidence that the process agent specified in Clause 42.2 (Service of process), if not an Obligor, has accepted its appointment in relation to the proposed Additional Obligor. EUROPE-LEGAL-311309212 147 Schedule 3 Utilisation Request From: [Borrower] To: MUFG Bank, Ltd. as Facility Agent Dated: InterContinental Hotels Group PLC - $1,500,000,000 Facility Agreement dated 4 December 2025 (the Agreement) 1. We refer to the Agreement. This is a Utilisation Request. Terms defined in the Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request. 2. We wish to borrow a Loan on the following terms: Proposed Utilisation Date: [●] (or, if that is not a Business Day, the next Business Day) Currency of Loan: [●] Amount: [●] or, if less, the Available Facility Interest Period: [●] 3. We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Utilisation Request. 4. The proceeds of this Loan should be credited to [account]. 5. This Utilisation Request is irrevocable. Yours faithfully …………………………………………….. authorised signatory for [name of relevant Borrower]

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EUROPE-LEGAL-311309212 148 Schedule 4 Form of Transfer Certificate To: MUFG Bank, Ltd. as Facility Agent From: [The Existing Lender] (the Existing Lender) and [The New Lender] (the New Lender) Dated: InterContinental Hotels Group PLC - $1,500,000,000 Facility Agreement dated 4 December 2025 (the Agreement) 1. We refer to the Agreement. This is a Transfer Certificate. Terms defined in the Agreement have the same meaning in this Transfer Certificate unless given a different meaning in this Transfer Certificate. 2. We refer to Clause 23.7 (Procedure for transfer) of the Agreement: (a) The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation all or part of the Existing Lender's Commitment, rights and obligations referred to in the Schedule in accordance with Clause 23.7 (Procedure for transfer) of the Agreement. (b) The proposed Transfer Date is [●]. (c) The Facility Office, administrative office (if different) and address, fax number and attention details for notices of the New Lender for the purposes of Clause 30.2 (Addresses) of the Agreement are set out in the Schedule. 3. The New Lender expressly acknowledges the limitations on the Existing Lender's obligations set out in paragraph (c) of Clause 23.6 (Limitation of responsibility of Existing Lenders) of the Agreement. 4. The New Lender confirms, for the benefit of the Facility Agent and without liability to any Obligor, that it is: (a) [a Qualifying Lender (other than a Treaty Lender);] (b) [a Treaty Lender;] (c) [not a Qualifying Lender].1 [5.] [The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either: 1 Delete as applicable – each Increase Lender is required to confirm which of these three categories it falls within. EUROPE-LEGAL-311309212 149 (a) a company resident in the United Kingdom for United Kingdom tax purposes; (b) a partnership each member of which is: (i) a company so resident in the United Kingdom; or (ii) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA 2009) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA 2009; or (c) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (for the purposes of section 19 of the CTA 2009) of that company.2 [5/6.] [The New Lender confirms, for the benefit of the Facility Agent and without liability to any Obligor, that it is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme (reference number [____]) and is tax resident in [_______]3, so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax and requests that Company notify: (a) each Borrower which is a Party as a Borrower as at the Transfer Date; and (b) each Additional Borrower which becomes an Additional Borrower after the Transfer Date, that it wishes that scheme to apply to the Agreement]\*\*4 [5/6/7.] This Transfer Certificate may be executed in any number of counterparts, and by each party on separate counterparts. Each counterpart is an original, but all counterparts shall together constitute one and the same instrument. Delivery of a counterpart of this Transfer Certificate by e-mail attachment or telecopy shall be an effective mode of delivery. 2 Include if New Lender comes within paragraph (a)(ii) of the definition of Qualifying Lender in Clause 1.1 (Definitions). 3 Insert jurisdiction of tax residence. 4 This confirmation must be included if the New Lender holds a passport under the HMRC DT Treaty Passport scheme as at the Transfer Date, and wishes that scheme to apply to the Facility Agreement.

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EUROPE-LEGAL-311309212 150 [6/7/8.] This Transfer Certificate and any non contractual obligations arising out of or in connection with it are governed by English law. EUROPE-LEGAL-311309212 151 THE SCHEDULE Commitment/rights and obligations to be transferred [insert relevant details] [Facility Office, administrative office (if different) address, fax number and attention details for notices and account details for payments.] [Existing Lender] [New Lender] By: …………………………………….. By: …………………………………….. This Transfer Certificate is accepted by the Facility Agent and the Transfer Date is confirmed as [●]. [Facility Agent] By: ……………………………………..

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EUROPE-LEGAL-311309212 152 Schedule 5 Form of Accession Letter To: MUFG Bank, Ltd. as Facility Agent From: [Subsidiary] and InterContinental Hotels Group PLC Dated: InterContinental Hotels Group PLC - $1,500,000,000 Facility Agreement dated 4 December 2025 (the Agreement) 1. We refer to the Agreement. This is an Accession Letter. Terms defined in the Agreement have the same meaning in this Accession Letter unless given a different meaning in this Accession Letter. 2. [Subsidiary] agrees to become an Additional [Borrower]/[Guarantor] and to be bound by the terms of the Agreement as an Additional [Borrower]/[Guarantor] pursuant to [Clause 24.2 (Additional Borrowers)]/[Clause 24.4 (Additional Guarantors)] of the Agreement. [Subsidiary] is a company duly incorporated under the laws of [name of relevant jurisdiction]. 3. [Subsidiary's] administrative details are as follows: Address: Fax No: Attention: 4. This Accession Letter and any non contractual obligations arising out of or in connection with it are governed by English law. [This Guarantor Accession Letter is entered into by deed.] InterContinental Hotels Group PLC [Subsidiary] By: …………………………………….. By: …………………………………….. EUROPE-LEGAL-311309212 153 Schedule 6 Form of Resignation Letter To: MUFG Bank, Ltd. as Facility Agent From: [resigning Obligor] and InterContinental Hotels Group PLC Dated: InterContinental Hotels Group PLC - $1,500,000,000 Facility Agreement dated 4 December 2025 (the Agreement) 1. We refer to the Agreement. This is a Resignation Letter. Terms defined in the Agreement have the same meaning in this Resignation Letter unless given a different meaning in this Resignation Letter. 2. Pursuant to [Clause 24.3 (Resignation of a Borrower)]/[Clause 24.6 (Resignation of a Guarantor)] of the Agreement, we request that [resigning Obligor] be released from its obligations as a [Borrower]/[Guarantor] under the Agreement. 3. We confirm that: (a) no Default is continuing or would result from the acceptance of this request; and (b) the provisions of [Clause 24.3 (Resignation of a Borrower)]/[Clause 24.6 (Resignation of a Guarantor)] of the Agreement are otherwise complied with. 4. This Resignation Letter and any non contractual obligations arising out of or in connection with it are governed by English law. InterContinental Hotels Group PLC [Subsidiary] By: …………………………………….. By: ……………………………………..

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EUROPE-LEGAL-311309212 154 Schedule 7 Security Member of the Group Counterparty Maturity Date Principal amount secured Six Continents Limited The Law Debenture Pension Trust Corporation plc Not applicable (Executive Top-Up Plan) GBP 31,250,000 Russell London Hotel Opco Limited Lagonda Russell PropCo Limited Lease termination date (31 December 2043) GBP 6,926,575 Edinburgh George Street Hotel Opco Limited George Hotel Investments Limited Lease termination date (31 December 2043) GBP 4,977,200 Roxburghe Hotel Edinburgh Opco Limited Roxburghe Investments Propco Limited Lease termination date (31 December 2043) GBP 4,126,925 Manchester Oxford Street Hotel Opco Limited Lagonda Palace PropCo Limited Lease termination date (31 December 2043) GBP 5,599,325 York Station Road Hotel Opco Limited Lagonda York PropCo Limited Lease termination date (31 December 2043) GBP 3,214,425 Grand Central Glasgow Hotel Opco Limited Grand Central Hotel Company Limited Lease termination date (31 December 2043) GBP 5,039,400 EUROPE-LEGAL-311309212 155 Member of the Group Counterparty Maturity Date Principal amount secured Blysthwood Square Glasgow Hotel Opco Limited Blythswood Square Hotel Glasgow Ltd Lease termination date (31 December 2043) GBP 2,343,425 St David's Cardiff Hotel Opco Limited The St David's Hotel Cardiff Limited Lease termination date (31 December 2043) GBP 2,944,825 Oxford Spires Hotel Opco Limited Oxford Spires Hotel Limited Lease termination date (31 December 2043) GBP 3,753,625 Oxford Thames Hotel OpCo Limited Oxford Thames Limited (previously called De Vere Oxford Thames Limited) Lease termination date (31 December 2043) GBP 2,156,775

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EUROPE-LEGAL-311309212 156 Schedule 8 Timetables Loans in euro Loans in sterling Loans in other currencies Currency to be available and convertible into the Base Currency (Clause 4.3 (Conditions relating to Optional Currencies)) On the day which is two TARGET Days before the first day of the Interest Period for the relevant Loan. On the first day of the Interest Period for the relevant Loan. On the day which is two Business Days before the first day of the Interest Period for the relevant Loan. Agent notifies the Company if a currency is approved as an Optional Currency in accordance with Clause 4.3 (Conditions relating to Optional Currencies) - - U-4 Delivery of a duly completed Utilisation Request (Clause 5.1 (Delivery of a Utilisation Request)) U-3 10.30 a.m. U-1 9.30 a.m. U-3 9.30 a.m. Agent determines (in relation to a Utilisation) the Base Currency Amount of the Loan, if required under Clause 5.4 (Lenders' participation) and notifies the Lenders of the Loan in accordance with Clause 5.4 (Lenders' participation) U-3 3.00 p.m. U-1 Noon U-3 Noon Agent receives a notification from a Lender under Clause 6.2 (Unavailability of a currency) Quotation Day 9.30 a.m. - 9.30 a.m. on the day which is two Business Days before the first day of the Interest Period for the relevant Loan. EUROPE-LEGAL-311309212 157 where: U means date of utilisation U-X means Business Days prior to date of utilisation Loans in euro Loans in sterling Loans in other currencies Agent gives notice in accordance with Clause 6.2 (Unavailability of a currency) Quotation Day 10.30 a.m. - 5.30 p.m. on the day which is two Business Days before the first day of the Interest Period for the relevant Loan. EURIBOR is fixed Quotation Day as of 11:00 a.m. Brussels time for EURIBOR loans

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EUROPE-LEGAL-311309212 158 Schedule 9 Form of Increase Confirmation To: MUFG Bank, Ltd. as Facility Agent and InterContinental Hotels Group PLC as Company, for and on behalf of each Obligor From: [the Increase Lender] (the Increase Lender) Dated: InterContinental Hotels Group PLC - $1,500,000,000 Facility Agreement dated 4 December 2025 (the Agreement) 1. We refer to the Agreement. This is an Increase Confirmation. Terms defined in the Agreement have the same meaning in this Increase Confirmation unless given a different meaning in this Increase Confirmation. 2. We refer to Clause 2.2 (Increase). 3. The Increase Lender agrees to assume and will assume all of the obligations corresponding to the Commitment specified in the Schedule (the Relevant Commitment) as if it was an Original Lender under the Agreement. 4. The proposed date on which the increase in relation to the Increase Lender and the Relevant Commitment is to take effect (the Increase Date) is [•]. 5. On the Increase Date, the Increase Lender becomes party to the Finance Documents as a Lender. 6. The Facility Office and address, fax number and attention details for notices to the Increase Lender for the purposes of Clause 30.2 (Addresses) are set out in the Schedule. 7. The Increase Lender expressly acknowledges the limitations on the Lenders' obligations referred to in paragraph (e) of Clause 2.2 (Increase). 8. The Increase Lender confirms, for the benefit of the Facility Agent and without liability to any Obligor, that it is: (a) [a Qualifying Lender (other than a Treaty Lender);] (b) [a Treaty Lender;] (c) [not a Qualifying Lender].5 5 Delete as applicable – each Increase Lender is required to confirm which of these three categories it falls within. EUROPE-LEGAL-311309212 159 9. [The Increase Lender confirms, for the benefit of the Facility Agent and without liability to any Obligor, that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either: (a) a company resident in the United Kingdom for United Kingdom tax purposes; or (b) a partnership each member of which is: (i) a company so resident in the United Kingdom; or (ii) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA 2009) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA 2009; or (c) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA 2009) of that company.]6 [9/10.] [The Increase Lender confirms, for the benefit of the Facility Agent and without liability to any Obligor, that it is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme (reference number [ ]) and is tax resident in [ ], so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax and requests that the Company notify: (a) each Borrower which is a Party as a Borrower as at the Increase Date; and (b) each Additional Borrower which becomes an Additional Borrower after the Increase Date, that it wishes that scheme to apply to the Agreement] [9/10/11] This Increase Confirmation may be executed in any number of counterparts, and by each party on separate counterparts. Each counterpart is an original, but all counterparts shall together constitute one and the same instrument. Delivery of a counterpart of this Increase 6 Include if New Lender comes within paragraph (a)(ii) of the definition of Qualifying Lender in Clause 13.1 (Definitions).

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EUROPE-LEGAL-311309212 160 Confirmation by e-mail attachment or telecopy shall be an effective mode of delivery. [10/11/12] This Increase Confirmation and any non contractual obligations arising out of or in connection with it are governed by English law. [11/12/13] This Agreement has been entered into on the date stated at the beginning of this Agreement. EUROPE-LEGAL-311309212 161 THE SCHEDULE Relevant Commitment/rights and obligations to be assumed by the Increase Lender [insert relevant details] [Facility office address, fax number and attention details for notices and account details for payments] [Increase Lender] By: ……………………………………………. This Increase Confirmation is accepted as an Increase Confirmation for the purposes of the Agreement by the Facility Agent and the Increase Date is confirmed as [•]. Facility Agent By: …………………………………………….

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EUROPE-LEGAL-311309212 162 Schedule 10 Reference Rate Terms Part A - Dollars CURRENCY: US Dollars. Cost of funds as a fallback Cost of funds will not apply as a fallback. Definitions Additional Business Days: Any day other than: a) a Saturday or a Sunday; and b) a day on which the Securities Industry and Financial Markets Association (or any successor organisation) recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in US Government securities. Break Costs: The amount (if any) by which: a) the interest (excluding Margin) which a Lender should have received for the period from the date of receipt of all or any part of its participation in a Loan or Unpaid Sum in that currency to the last day of the current Interest Period in respect of that Loan or Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last day of that Interest Period, exceeds: b) the amount which that Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with a leading bank for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period. Business Day Conventions (definition of "Month" and (a) If any period is expressed to accrue by reference to a Month or any number of EUROPE-LEGAL-311309212 163 Clause 10.2 (Non-Business Days)): Months then, in respect of the last Month of that period: (i) subject to paragraph (iii) below, if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day; (ii) if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month; and (iii) if an Interest Period begins on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in which that Interest Period is to end. (b) If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not). Credit Adjustment Spread: 0.10 per cent. per annum Market Disruption Rate: The Term Reference Rate. Overnight Rate: The secured overnight financing rate (SOFR) administered by the Federal Reserve Bank of New York (or any other person which takes over the administration of that rate) published by the Federal Reserve Bank of New York (or any other person which takes over the publication of that rate). Overnight Reference Day: The day which is two Additional Business Days before the Quotation Day. Primary Term Rate: The Term SOFR reference rate administered by CME Group Benchmark Administration Limited

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EUROPE-LEGAL-311309212 164 (or any other person which takes over the administration of that rate) for the relevant period published by CME Group Benchmark Administration Limited (or any other person which takes over the publication of that rate). Quotation Day: Two Additional Business Days before the first day of the relevant Interest Period (unless market practice differs in the relevant syndicated loan market, in which case the Quotation Day will be determined by the Agent in accordance with that market practice (and if quotations would normally be given on more than one day, the Quotation Day will be the last of those days)). Quotation Time: The Quotation Day. Relevant Market: The market for overnight cash borrowing collateralised by US Government securities. Reporting Day: The Quotation Day. Interest Periods Periods capable of selection as Interest Periods (Clause 10.1 (Selection of Interest Periods)): One or three months, unless otherwise agreed between the Company, the Facility Agent and the Lenders (in relation to the relevant Loan). Reporting Times Deadline for Lenders to report market disruption in accordance with Clause 11.2 (Market disruption) Close of business in London on the Reporting Day for the relevant Loan. Deadline for Lenders to report their cost of funds in accordance with Clause 11.3 (Cost of funds) Close of business on the date falling three Business Days after the Reporting Day for the relevant Loan (or, if earlier, on the date falling three Business Days before the date on which interest is due to be paid in respect of the Interest Period for that Loan). EUROPE-LEGAL-311309212 165 Part B - Sterling CURRENCY: Sterling. Cost of funds as a fallback Cost of funds will not apply as a fallback. Definitions Additional Business Days: An RFR Banking Day. Break Costs: None specified. Business Day Conventions (definition of "Month" and Clause 10.2 (Non-Business Days)): (a) If any period is expressed to accrue by reference to a Month or any number of Months then, in respect of the last Month of that period: (i) subject to paragraph (iii) below, if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day; (ii) if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month; and (iii) if an Interest Period begins on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in which that Interest Period is to end. (b) If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).

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EUROPE-LEGAL-311309212 166 Central Bank Rate: The Bank of England's Bank Rate as published by the Bank of England from time to time. Central Bank Rate Adjustment: In relation to the Central Bank Rate prevailing at close of business on any RFR Banking Day, the 20 per cent. trimmed arithmetic mean (calculated by the Facility Agent) of the Central Bank Rate Spreads for the five most immediately preceding RFR Banking Days for which the RFR is available. Central Bank Rate Spread: In relation to any RFR Banking Day, the difference (expressed as a percentage rate per annum) calculated by the Facility Agent (or by any other Finance Party which agrees to do so in place of the Facility Agent) of: (a) the RFR for that RFR Banking Day; and (b) the Central Bank Rate prevailing at close of business on that RFR Banking Day. Credit Adjustment Spread: None specified. Daily Rate: The Daily Rate for any RFR Banking Day is: (a) the RFR for that RFR Banking Day; (b) if the RFR for that RFR Banking Day is not available, the Historic RFR for that RFR Banking Day; or (c) if paragraph (b) above applies but the Historic RFR for that RFR Banking Day is not available, the percentage rate per annum which is the aggregate of: (i) the Central Bank Rate for that RFR Banking Day; and (ii) the applicable Central Bank Rate Adjustment; or (d) if paragraph (c) above applies but the Central Bank Rate for that RFR Banking Day is not available, the percentage rate per annum which is the aggregate of: (i) the most recent Central Bank Rate for a day which is no more than five RFR Banking Days EUROPE-LEGAL-311309212 167 before that RFR Banking Day; and (ii) the applicable Central Bank Rate Adjustment, rounded, in either case, to four decimal places and if, in either case, that rate is less than zero, the Daily Rate shall be deemed to be zero. Lookback Period: five RFR Banking Days. Market Disruption Rate: The percentage rate per annum which is the aggregate of the Cumulative Compounded RFR Rate for the Interest Period of the relevant Loan. Relevant Market: The sterling wholesale market. Reporting Day: The Business Day which follows the day which is the Lookback Period prior to the last day of the Interest Period. RFR: The SONIA (sterling overnight index average) reference rate displayed on the relevant screen of any authorised distributor of that reference rate. RFR Banking Day: A day (other than a Saturday or Sunday) on which banks are open for general business in London. Interest Periods Periods capable of selection as Interest Periods (Clause 10.1 (Selection of Interest Periods)): Two weeks, one, two or three months, unless otherwise agreed between the Company, the Facility Agent and the Lenders (in relation to the relevant Loan). Reporting Times Deadline for Lenders to report market disruption in accordance with Clause 11.2 (Market disruption) Close of business in London on the Reporting Day for the relevant Loan. Deadline for Lenders to report their cost of funds in accordance with Clause 11.3 (Cost of funds) Close of business on the date falling three Business Days after the Reporting Day for the relevant Loan (or, if earlier, on the date falling three Business Days before the date on which interest is due to be paid in respect of the Interest Period for that Loan).

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EUROPE-LEGAL-311309212 168 EUROPE-LEGAL-311309212 169 Part C – Euro CURRENCY: Euro. Cost of funds as a fallback Cost of funds will apply as a fallback. Definitions Additional Business Days: A TARGET Day. Break Costs: The amount (if any) by which: (a) the interest (excluding the Margin) which a Lender should have received for the period from the date of receipt of all or any part of its participation in a Loan or Unpaid Sum to the last day of the current Interest Period in respect of that Loan or Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last day of that Interest Period; exceeds: (b) the amount which that Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with a leading bank in the Relevant Market for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period. Credit Adjustment Spread: None specified. Business Day Conventions (definition of "Month" and Clause 10.2 (Non-Business Days)): (a) If any period is expressed to accrue by reference to a Month or any number of Months then, in respect of the last Month of that period: (i) subject to paragraph (iii) below, if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the

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EUROPE-LEGAL-311309212 170 immediately preceding Business Day; (ii) if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month; and (iii) if an Interest Period begins on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in which that Interest Period is to end. (b) If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not). Market Disruption Rate: The Term Reference Rate. Primary Term Rate: The euro interbank offered rate administered by the European Money Markets Institute (or any other person which takes over the administration of that rate) for the relevant period published (before any correction, recalculation or republication by the administrator) by the European Money Markets Institute (or any other person which takes over the publication of that rate). Quotation Day: Two TARGET Days before the first day of the relevant Interest Period (unless market practice differs in the Relevant Market, in which case the Quotation Day will be determined by the Facility Agent in accordance with market practice in the Relevant Market (and if quotations would normally be given on more than one day, the Quotation Day will be the last of those days)). Quotation Time: Quotation Day 11:00 a.m. (Brussels time). EUROPE-LEGAL-311309212 171 Relevant Market: The European interbank market. Reporting Day: The Quotation Day. Interest Periods Periods capable of selection as Interest Periods (Clause 10.1 (Selection of Interest Periods)): Two weeks, one, three or six months, unless otherwise agreed between the Company, the Facility Agent and the Lenders (in relation to the relevant Loan). Reporting Times Deadline for Lenders to report market disruption in accordance with Clause 11.2 (Market disruption): Close of business in London on the Reporting Day for the relevant Loan. Deadline for Lenders to report their cost of funds in accordance with Clause 11.3 (Cost of funds): Close of business on the date falling three Business Days after the Reporting Day for the relevant Loan (or, if earlier, on the date falling three Business Days before the date on which interest is due to be paid in respect of the Interest Period for that Loan).

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EUROPE-LEGAL-311309212 172 Schedule 11 Daily Non-Cumulative Compounded RFR Rate The Daily Non-Cumulative Compounded RFR Rate for any RFR Banking Day "i" during an Interest Period for a Compounded Rate Loan is the percentage rate per annum (without rounding, to the extent reasonably practicable for the Finance Party performing the calculation, taking into account the capabilities of any software used for that purpose) calculated as set out below: (𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑖𝑖 - 𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑖𝑖-1) × 𝑑𝑑𝑑𝑑𝑑𝑑 𝑛𝑛𝑖𝑖 where: UCCDRi means the Unannualised Cumulative Compounded Daily Rate for that RFR Banking Day i; UCCDRi-1 means, in relation to that RFR Banking Day i, the Unannualised Cumulative Compounded Daily Rate for the immediately preceding RFR Banking Day (if any) during that Interest Period; dcc means 360 or, in any case where market practice in the Relevant Market is to use a different number for quoting the number of days in a year, that number; ni means the number of calendar days from, and including, that RFR Banking Day i up to, but excluding, the following RFR Banking Day; and the Unannualised Cumulative Compounded Daily Rate for any RFR Banking Day (the Cumulated RFR Banking Day) during that Interest Period is the result of the below calculation (without rounding, to the extent reasonably practicable for the Finance Party performing the calculation, taking into account the capabilities of any software used for that purpose): 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 × 𝑡𝑡𝑡𝑡𝑖𝑖 𝑑𝑑𝑑𝑑𝑑𝑑 where: ACCDR means the Annualised Cumulative Compounded Daily Rate for that Cumulated RFR Banking Day; tni means the number of calendar days from, and including, the first day of the Cumulation Period to, but excluding, the RFR Banking Day which immediately follows the last day of the Cumulation Period; Cumulation Period means the period from, and including, the first RFR Banking Day of that Interest Period to, and including, that Cumulated RFR Banking Day; dcc has the meaning given to that term above; and the Annualised Cumulative Compounded Daily Rate for that Cumulated RFR Banking Day is the percentage rate per annum (rounded EUROPE-LEGAL-311309212 173 to the number of decimal places specified for the Daily Rate in the applicable Reference Rate Terms) calculated as set out below: ⎣ ⎢ ⎢ ⎡ ��1 + 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷i-LP × ni dcc � d0 i̇=1 - 1 ⎦ ⎥ ⎥ ⎤ × dcc tni where: d0 means the number of RFR Banking Days in the Cumulation Period; Cumulation Period has the meaning given to that term above; i means a series of whole numbers from one to d0, each representing the relevant RFR Banking Day in chronological order in the Cumulation Period; DailyRatei-LP means, for any RFR Banking Day i in the Cumulation Period, the Daily Rate for the RFR Banking Day which is the applicable Lookback Period prior to that RFR Banking Day i; ni means, for any RFR Banking Day i in the Cumulation Period, the number of calendar days from, and including, that RFR Banking Day i up to, but excluding, the following RFR Banking Day; dcc has the meaning given to that term above; and tni has the meaning given to that term above.

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EUROPE-LEGAL-311309212 174 Schedule 12 Cumulative Compounded RFR Rate The Cumulative Compounded RFR Rate for any Interest Period for a Compounded Rate Loan is the percentage rate per annum (rounded to the same number of decimal places as is specified in the definition of Annualised Cumulative Compounded Daily Rate in Schedule 11 (Daily Non-Cumulative Compounded RFR Rate)) calculated as set out below: ⎣ ⎢ ⎢ ⎡ ��1 + 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷i-LP × ni dcc � d0 i̇=1 - 1 ⎦ ⎥ ⎥ ⎤ × dcc d where: d0 means the number of RFR Banking Days during the Interest Period; i means a series of whole numbers from one to d0, each representing the relevant RFR Banking Day in chronological order during the Interest Period; DailyRatei-LP means for any RFR Banking Day i during the Interest Period, the Daily Rate for the RFR Banking Day which is the applicable Lookback Period prior to that RFR Banking Day i; ni means, for any RFR Banking Day i, the number of calendar days from, and including, that RFR Banking Day i up to, but excluding, the following RFR Banking Day; dcc means 360 or, in any case where market practice in the Relevant Market is to use a different number for quoting the number of days in a year, that number; and d means the number of calendar days during that Interest Period. IHG RCF - Signature page SIGNATURE PAGES The Company INTERCONTINENTAL HOTELS GROUP PLC By: /s/Nicolette Henfrey Name: Nicolette Henfrey Title: Company Secretary Address: 1 Windsor Dials Arthur Road Windsor Berkshire SL4 1RS Email address: ihgtreasuryfo@ihg.com and ihgtreasurybo@ihg.com Attention: The General Counsel and Company Secretary

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page The Original Borrowers INTERCONTINENTAL HOTELS GROUP PLC By: /s/ Nicolette Henfrey Name: Nicolette Henfrey Title: Company Secretary Address: 1 Windsor Dials Arthur Road Windsor Berkshire SL4 1RS Email address: ihgtreasuryfo@ihg.com and ihgtreasurybo@ihg.com Attention: The General Counsel and Company Secretary IHG RCF - Signature page INTERCONTINENTAL HOTELS LIMITED By: /s/ Rebecca Law Name: Rebecca Law Title: Director Address: 1 Windsor Dials Arthur Road Windsor Berkshire SL4 1RS Email address: ihgtreasuryfo@ihg.com and ihgtreasurybo@ihg.com Attention: The General Counsel and Company Secretary

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page SIX CONTINENTS LIMITED By: /s/ Rebecca Law Name: Rebecca Law Title: Director Address: 1 Windsor Dials Arthur Road Windsor Berkshire SL4 1RS Email address: ihgtreasuryfo@ihg.com and ihgtreasurybo@ihg.com Attention: The General Counsel and Company Secretary IHG RCF - Signature page IHG FINANCE LLC By: /s/ Randall S. Hammer Name: Randall S. Hammer Title: Manager and Secretary Address: C/O InterContinental Hotels Group plc 1 Windsor Dials Arthur Road Windsor Berkshire SL4 1RS Email address: ihgtreasuryfo@ihg.com and ihgtreasurybo@ihg.com Attention: InterContinental Hotels Group plc, The General Counsel and Company Secretary

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page The Original Guarantors INTERCONTINENTAL HOTELS GROUP PLC By: /s/ Nicolette Henfrey Name: Nicolette Henfrey Title: Company Secretary INTERCONTINENTAL HOTELS LIMITED By: /s/ Rebecca Law Name: Rebecca Law Title: Director SIX CONTINENTS LIMITED By: /s/ Rebecca Law Name: Rebecca Law Title: Director IHG FINANCE LLC By: /s/ Randall S. Hammer Name: Randall S. Hammer Title: Manager and Secretary IHG RCF - Signature page – Facility Agent The Facility Agent MUFG BANK, LTD. By: /s/ Daniel Bullock Name: Daniel Bullock Title: Vice President

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page – Original Lenders The Original Lenders BANK OF AMERICA, N.A., LONDON BRANCH By: /s/ Mariola Tatarynowicz Name: Mariola Tatarynowicz Title: Director IHG RCF - Signature page – Original Lenders BANK OF CHINA LIMITED, LONDON BRANCH By: /s/ Martin Collard /s/ Mr. Zhijian Pan Name: Martin Collard Mr. Zhijian Pan Title: Deputy Head of Corporate Banking Dept. Deputy General Manager

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page – Original Lenders BARCLAYS BANK PLC By: /s/ Olga Ivannikova Name: Olga Ivannikova Title: VP, Transaction Management IHG RCF - Signature page – Original Lenders BNP PARIBAS, LONDON BRANCH By: /s/ Kieran Fahy /s/ Tony Reeves Name: Kieran Fahy Tony Reeves Title: Managing Director Director

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page – Original Lenders COMMERZBANK AKTIENGESELLSCHAFT, LONDON BRANCH By: /s/ Thomas Bush /s/ Bradley Lieberstein Name: Thomas Bush Bradley Lieberstein Title: Managing Director Authorised Signatory IHG RCF - Signature page – Original Lenders DBS BANK LTD., LONDON BRANCH By: /s/ Mark Cherry Name: Mark Cherry Title: Head of Corporate Banking Europe

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page – Original Lenders MUFG BANK, LTD. By: /s/ Edd McKee Name: Edd McKee Title: Managing Director IHG RCF - Signature page – Original Lenders STANDARD CHARTERED BANK By: /s/ Tom Barneby Name: Tom Barneby Title: Executive Director

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page – Original Lenders TRUIST BANK By: /s/ J. Carlos Navarrete Name: J. Carlos Navarrete Title: Director IHG RCF - Signature page – Original Lenders U.S. BANK NATIONAL ASSOCIATION By: /s/ Tyler Morgan Name: Tyler Morgan Title: Vice President

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page – Original Lenders UNICREDIT BANK GMBH By: /s/ James Buckle /s/ Susan Armour Name: James Buckle Susan Armour Title: Managing Director Managing Director IHG RCF - Signature page – Original Lenders WELLS FARGO BANK, N.A., LONDON BRANCH By: /s/ Jonathan Childs Name: Jonathan Childs Title: Executive Director

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page – MLAs and Joint Bookrunners Mandated Lead Arrangers and Joint Bookrunners BANK OF AMERICA EUROPE DESIGNATED ACTIVITY COMPANY By: /s/ Mariola Tatarynowicz Name: Mariola Tatarynowicz Title: Director IHG RCF - Signature page – MLAs and Joint Bookrunners BANK OF CHINA LIMITED, LONDON BRANCH By: /s/ Martin Collard /s/ Mr. Zhijian Pan Name: Martin Collard Mr. Zhijian Pan Title: Deputy Head of Corporate Banking Dept. Deputy General Manager

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page – MLAs and Joint Bookrunners BARCLAYS BANK PLC By: /s/ Olga Ivannikova Name: Olga Ivannikova Title: VP, Transaction Management IHG RCF - Signature page – MLAs and Joint Bookrunners BNP PARIBAS, LONDON BRANCH By: /s/ Kieran Fahy /s/ Tony Reeves Name: Kieran Fahy Tony Reeves Title: Managing Director Director

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page – MLAs and Joint Bookrunners COMMERZBANK AKTIENGESELLSCHAFT, LONDON BRANCH By: /s/ Thomas Bush /s/ Bradley Lieberstein Name: Thomas Bush Bradley Lieberstein Title: Managing Director Authorised Signatory IHG RCF - Signature page – MLAs and Joint Bookrunners DBS BANK LTD., LONDON BRANCH By: /s/ Mark Cherry Name: Mark Cherry Title: Head of Corporate Banking Europe

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page – MLAs and Joint Bookrunners MUFG BANK, LTD. By: /s/ Edd McKee Name: Edd McKee Title: Managing Director IHG RCF - Signature page – MLAs and Joint Bookrunners STANDARD CHARTERED BANK By: /s/ Kathleen Alpguner Name: Kathleen Alpguner Title: Executive Director

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page – MLAs and Joint Bookrunners TRUIST SECURITIES, INC. By: /s/ Shaun Dreyer Name: Shaun Dreyer Title: Managing Director IHG RCF - Signature page – MLAs and Joint Bookrunners U.S. BANK NATIONAL ASSOCIATION By: /s/ Tyler Morgan Name: Tyler Morgan Title: Vice President

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&nbsp;&nbsp;&nbsp;&nbsp;IHG RCF - Signature page – MLAs and Joint Bookrunners UNICREDIT BANK GMBH By: /s/ James Buckle /s/ Susan Armour Name: James Buckle Susan Armour Title: Managing Director Managing Director IHG RCF - Signature page – MLAs and Joint Bookrunners WELLS FARGO BANK, N.A., LONDON BRANCH By: /s/ Jonathan Childs Name: Jonathan Childs Title: Executive Director

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## Ex-4.Cv

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RULES of the INTERCONTINENTAL HOTELS GROUP PLC DEFERRED AWARD PLAN Board Adoption: 23rd March 2023 Shareholders' Approval: 5th May 2023 Effective Date 5th May 2023 Expiry Date: 5th May 2033 Amended by the Committee on 18 October 2023 and 11 February 2026 Exhibit 4(c)(v) **Table of Contents** 2. Granting Awards 5 3. Participant limits 7 4. Share dilution limits 8 5. Vesting and exercise of Awards 8 6. Lapsing 9 7. Settlement of Awards 9 8. Investigations 10 9. Dealing Restrictions 11 10. Holding Period 11 11. Leaving and Former Employees 12 12. Mobile Participants 14 13. Takeovers and other corporate events 14 14. Exchange of Awards 15 15. Variations in share capital 16 16. Tax 16 17. Terms of employment 17 18. General 18 19. Administration 19 20. Changing the Plan and termination 20 21. Governing law and jurisdiction 21 Appendix 1 Awards granted to US taxpayers (409A exempt) 22 Appendix 2 Awards granted to US taxpayers (409A compliant) 25 InterContinental Hotels Group PLC Deferred Award Plan (Page 2 of #NUM_PAGES#)

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InterContinental Hotels Group PLC Deferred Award Plan 1. Meaning of words used 1.1 General In these rules: "Award" means a Conditional Award, a Forfeitable Award, an Option or a Phantom Award; "Award Date" means the date specified under rule 2.4 (Terms of Awards); "Business Day" means a day on which the London Stock Exchange (or, if the Committee decides, any other stock exchange on which the Shares are traded) is open for the transaction of business; "Committee" means the board of directors of the Company or another committee duly authorised by it; "Company" means InterContinental Hotels Group PLC; "Conditional Award" means a conditional right to acquire Shares granted under the Plan; "Conditions" means any performance or other conditions imposed under rule 2.4 (Terms of Awards); "Control" means the power of a person to secure by means of the holding of shares or the possession of voting power or by virtue of any powers conferred by any articles of association (or other document), that the affairs of a body corporate are conducted in accordance with the wishes of that person; "Dealing Restrictions" means any internal or external restrictions on dealings or transactions in securities; "Dividend Equivalent" means a right to receive an additional amount, as set out in rule 7.3 (Dividend Equivalents); "Employee" means any person directly employed by the Company (including an employed executive director) or any Member of the Group and, for the purposes of rule 17 (Terms of employment), it includes a person who has Left; "Executive Director" means an executive director of the Company; "Exercise Period" means the period during which an Option may be exercised, starting when the Option Vests and ending on the 10th anniversary of the Award Date unless the Committee decides that a shorter period will apply under rule 2.4 (Terms of Awards); "Financial Year" means a financial year of the Company; "Forfeitable Award" means an award of Shares subject to forfeiture provisions under the Plan; "Former Employee" means any person who was an Employee but has Left; "Good Leaver Reason" means: (i) death; (ii) injury, ill health or disability (evidenced to the satisfaction of the Committee); (iii) the Participant's employing company ceasing to be a Member of the Group; InterContinental Hotels Group PLC Deferred Award Plan (Page 3 of #NUM_PAGES#) (iv) the business or part of the business that employs the Participant being transferred outside of the Group; or (v) any other reason, at the discretion of the Committee; "Group" means the Company and any company that is a subsidiary of the Company (within the meaning of section 1159 of the Companies Act 2006) and, for the purposes of rule 11 (Leaving and Former Employees), it includes associated companies nominated for this purpose by the Committee, and "Member of the Group" will be understood accordingly; "Holding Period" will be as described in rule 10 (Holding Period); "Leaves" means ceasing to be an employee (and ceasing to be a director) of all Members of the Group and "Leaving" and "Left" will be understood accordingly; "Malus and Clawback Policy" means such policy or policies in place for the purposes of adjusting and/or recovering remuneration, including the InterContinental Hotels Group PLC Malus and Clawback Policy (as amended from time to time), and any provisions or policies adopted to comply with the requirements of applicable law (including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act), and "Malus" and "Clawback" will have the meanings given in the Malus and Clawback Policy; "Market Value" on any day means: (i) when Shares are listed on the London Stock Exchange (or, if the Committee decides, any other stock exchange on which the Shares are traded): (a) the price shown in the Stock Exchange Daily Official List (or the relevant foreign exchange list that performs a similar function) for the previous Business Day as the closing price for the Shares on that day (or if two closing prices are shown, the lower price plus one-half of the difference between those two figures); or (b) if the Committee decides, the average of the price determined under (a) above over up to 5 consecutive Business Days, or up to such number of consecutive Business Days as determined by the Committee, ending on the previous Business Day; (ii) otherwise, the market value of a Share as determined in accordance with Part VIII of the Taxation of Chargeable Gains Act 1992; or (iii) such value as the Committee may decide; "Option" means a right in the form of an option to acquire Shares granted under, and exercisable in accordance with, the Plan; "Participant" means a person holding or who has held an Award or, after death, that person's personal representatives; "Performance Conditions" means any performance conditions imposed under rule 2.4 (Terms of Awards); "Performance Period" means the period in respect of which any Performance Conditions are to be satisfied; "Phantom Award" means a conditional right granted under the Plan to receive a cash sum linked to the value of a number of notional Shares; "Plan" means the plan constituted by these rules and its schedules known as the InterContinental Hotels Group PLC Deferred Award Plan, as amended from time to time; InterContinental Hotels Group PLC Deferred Award Plan (Page 4 of #NUM_PAGES#)

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"Remuneration Policy" means the Company's prevailing Directors' Remuneration Policy; "Share" means a fully paid ordinary share in the capital of the Company; "Tax" means any tax and social security charges (and/or any similar charges or levies, including, interest), wherever arising, in respect of a Participant's Award or otherwise arising in connection with that Participant's participation in the Plan; "Vesting" means: (i) in relation to a Conditional Award, a Participant becoming entitled to the Shares; (ii) in relation to a Forfeitable Award, the forfeiture provisions (in the form of Performance Conditions and/or other Conditions) applicable to the Shares ceasing to apply other than in connection with the Malus and Clawback Policy and rule 5.4 (Overriding discretion); (iii) in relation to an Option, the Option becoming exercisable; and (iv) in relation to a Phantom Award, a Participant becoming entitled to the cash sum, and "Vest", "Vested" and "Unvested" will be understood accordingly; and "Vesting Date" means the date specified at the Award Date on which an Award is expected to Vest. 1.2 Interpretation In this Plan, the singular includes the plural and the plural includes the singular. References to any enactment or statutory requirement will be understood as references to that enactment or requirement as amended or re-enacted and they include any subordinate legislation made under it. 1.3 Award tranches Where an Award is made up of different tranches with different Vesting Dates, each tranche will be considered a separate Award for the purposes of interpreting and administering this Plan, except for the purposes of rule 5.6 (Option tranches). 2. Granting Awards 2.1 Eligibility The Committee may only grant an Award to someone who is: 2.1.1 an Employee at the Award Date; or 2.1.2 a Former Employee at the Award Date and who was an Employee at any point during the Financial Year immediately preceding the Financial Year in which the Award Date falls. 2.2 Timing of grant Awards may only be granted within 42 days starting on any of the following: 2.2.1 the day on which the Company's shareholders approve the Plan; 2.2.2 the Business Day following the day on which the Company's results are announced or, where not announced, are published for any period; 2.2.3 any day on which changes to the legislation or regulations affecting share plans are announced or take effect; 2.2.4 any day on which the Committee resolves that exceptional circumstances exist which justify the grant of Awards; and InterContinental Hotels Group PLC Deferred Award Plan (Page 5 of #NUM_PAGES#) 2.2.5 the day Dealing Restrictions, which prevented the granting of Awards during the periods specified above, are lifted. No Awards may be granted after the termination of the Plan. 2.3 Making an Award Awards will be granted by deed or in any way which ensures the Awards are contractually enforceable. Participants will be notified of the terms of their Awards as soon as practicable. The Committee may require Participants to accept Awards or specific terms and may provide for Awards to lapse if they are not accepted within the time specified. The Committee may allow Participants to disclaim all or part of an Award within a specified period. If an Award is disclaimed, it will be deemed never to have been granted. 2.4 Terms of Awards Awards are subject to the rules of the Plan. The Committee will approve the terms of an Award, including: 2.4.1 the Award Date; 2.4.2 the Award type; 2.4.3 the number of Shares subject to the Award or the basis for calculating the number of Shares; 2.4.4 the Vesting Date; 2.4.5 in the case of an Option, the Exercise Period, any amount payable to exercise the Option and any Conditions on exercise; 2.4.6 if the Award is subject to any Performance Conditions, details of those Performance Conditions and the applicable Performance Period; 2.4.7 details of any other Conditions; 2.4.8 whether Dividend Equivalents will apply (other than in relation to a Forfeitable Award); 2.4.9 in the case of a Forfeitable Award, whether the Participant is required to waive their rights to dividends and/or vote in respect of the Shares subject to the Award; 2.4.10 whether the Malus and Clawback Policy will apply; 2.4.11 details of any Holding Period; and 2.4.12 whether the Participant may be required to enter into any election for a particular tax and/ or social security treatment in respect of an Award and/or any Shares and any consequences of failing to make the election. 2.5 Forfeitable Awards A Forfeitable Award will be subject to forfeiture provisions in the form of Performance Conditions and/or other Conditions. InterContinental Hotels Group PLC Deferred Award Plan (Page 6 of #NUM_PAGES#)

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2.6 Performance Conditions The Committee may make Vesting conditional on the satisfaction of one or more performance conditions. For Executive Directors (or Former Employees who were Executive Directors), the application of Performance Conditions and the Performance Period will be consistent with the Remuneration Policy. The Committee may change a Performance Condition in accordance with its terms or if anything happens that causes the Committee to reasonably consider it appropriate to do so. A changed Performance Condition will not be materially less or more difficult to satisfy than the original condition was intended to be at the Award Date. The Committee will notify any relevant Participant as soon as practicable after any change. 2.7 Other Conditions The Committee may impose other Conditions on Vesting or exercise. The Committee may change those Conditions in accordance with their terms or if anything happens which causes the Committee to reasonably consider it appropriate to do so. For Executive Directors (or Former Employees who were Executive Directors), the requirement for Conditions on Vesting, and the period over which they will be measured, will be consistent with the Remuneration Policy. The Committee will notify any relevant Participant as soon as practicable after any change. 2.8 Malus and Clawback If there is any discrepancy between the Malus and Clawback Policy and the Plan, the Malus and Clawback Policy will prevail. 2.9 Administrative errors If the Committee grants an Award: 2.9.1 in error, or with error, it will be deemed never to have been granted and/or will immediately lapse; and/or 2.9.2 which is inconsistent with any provisions in this Plan, it will take effect only to the extent permissible under the Plan and will otherwise be deemed never to have been granted and/or will immediately lapse. 2.10 Phantom Awards A Phantom Award will not confer any right to receive Shares or any interest in Shares. The Plan will be interpreted and applied to reflect the fact that Phantom Awards are granted in respect of notional Shares only and are settled in cash rather than Shares. 2.11 Shareholding Policy Where a Participant is subject to the Shareholding Policy, the Shareholding Policy will apply to the Participant's Awards and any Shares acquired pursuant to those Awards. For these purposes, "Shareholding Policy" means any policy of InterContinental Hotels Group PLC in relation to shareholding that requires a minimum shareholding by certain individuals, as in force from time to time. InterContinental Hotels Group PLC Deferred Award Plan (Page 7 of #NUM_PAGES#) 3. Participant limits 3.1 Awards to Executive Directors (or Former Employees who were Executive Directors) may only be granted in accordance with the limits set out in the Remuneration Policy. Awards to any other Employees (or other Former Employees) may not be granted in excess of the limits which apply to Executive Directors, unless otherwise determined by the Committee. 4. Share dilution limits 4.1 Share limits An Award may not be granted that would cause: 4.1.1 the total number of Shares that have been Allocated in the previous 10 years (or could still be Allocated by virtue of rights granted) under the Plan and under any other employee share plans operated by the Company to exceed 10% of the ordinary share capital of the Company in issue; or 4.1.2 the total number of Shares that have been Allocated in the previous 10 years (or could still be Allocated by virtue of rights granted) under the Plan and under any other discretionary employee share plans operated by the Company to exceed 5% of the ordinary share capital of the Company in issue. 4.2 Calculating the number of Shares For the purposes of this rule 4 (Share dilution limits): 4.2.1 Shares are considered to be "Allocated" when allotted and issued as new shares, or transferred from treasury. However, if relevant institutional investor guidelines cease to require treasury shares to be taken into account for these purposes, then treasury Shares will not count towards these Share limits; 4.2.2 where there has been a variation in the share capital of the Company as described in rule 15 (Variations in share capital), the number of Shares taken into account for the purposes of the Share limits will be adjusted as the Committee considers appropriate to take account of the variation. 5. Vesting and exercise of Awards 5.1 Timing of Vesting An Award will Vest on the latest of: 5.1.1 the Vesting Date; and 5.1.2 the date it is decided that any Performance Conditions and/or other Conditions are satisfied, 5.1.3 unless otherwise determined by the Committee. 5.2 Extent of Vesting An Award will Vest to the extent that the Committee decides that any Performance Conditions and/ or other Conditions are satisfied. InterContinental Hotels Group PLC Deferred Award Plan (Page 8 of #NUM_PAGES#)

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5.3 Fractions Where an Award would otherwise Vest over a fraction of a Share, the Shares that will Vest will be rounded down to the nearest whole Share, unless otherwise determined by the Committee. 5.4 Overriding discretion The Committee may adjust the extent to which an Award will Vest if it considers the extent of Vesting would otherwise not be appropriate, including when considering: 5.4.1 the wider performance of the Group; 5.4.2 the conduct, capability or performance of the Participant; 5.4.3 the experience of stakeholders; 5.4.4 any windfall gains; 5.4.5 the total value that would otherwise be received by the Participant compared to the maximum value that the Award was intended to deliver; or 5.4.6 any other reason at the discretion of the Committee. 5.5 Process for exercise of Options A Participant may exercise an Option by giving notice at any time during the Exercise Period in the manner decided by the Committee. The exercise of an Option is effective on the date of receipt of the notice (and the exercise price, if required). If notice to exercise is given but any Exercise Conditions are not met at the time of receipt of notice, such exercise will be processed as soon as practicable following determination by the Committee that such Exercise Conditions have been met. An Option may be exercised in full or in part. 5.6 Option tranches The Committee may decide that if 5.6.1 an Option is made up of different tranches; and 5.6.2 the Option is exercised, 5.6.3 all tranches of that Option that are then capable of exercise will be exercised on that occasion. 6. Lapsing An Award will lapse to the extent any part of it is no longer capable of Vesting (or of being exercised). To the extent an Award lapses, it cannot Vest, or be exercised, under any other provision of the Plan. This means that, to the extent the Award lapses, the Participant has no right to receive the Shares or cash comprised in the Award. In the case of a Forfeitable Award, the beneficial and legal title to the Shares will immediately transfer to the Company or such other person and on such terms as the Committee specifies, and InterContinental Hotels Group PLC Deferred Award Plan (Page 9 of #NUM_PAGES#) the Participant will enter into such documents and take all actions that the Company requires to effect or facilitate the transfer. 7. Settlement of Awards 7.1 Delivery of Shares or cash If an Award Vests, the Committee will arrange for the delivery of Shares or cash to the Participant as soon as practicable after Vesting or, in the case of an Option, exercise. In the case of a Forfeitable Award, if it is not already held by the Participant, the legal interest in the Shares will be transferred to the Participant or otherwise in accordance with the Participant's instructions. 7.2 Phantom Award payment In the case of a Phantom Award, the cash sum will be equal to the aggregate Market Value of the notional Shares which have Vested. 7.3 Dividend Equivalents Where a Conditional Award, an Option or a Phantom Award includes Dividend Equivalents, the Participant will receive: 7.3.1 an amount equal to the dividends, the record date for which falls between the Award Date and Vesting, multiplied by the number of Shares in respect of which the Award Vests; or 7.3.2 if the Committee so decides in the case of Options, an amount equal to the dividends, the record date for which falls between the Award Date and exercise, multiplied by the number of shares of Shares in respect of which the Award is exercised. Dividend Equivalents will be calculated on such basis as the Committee decides. Special dividends will not be included, unless the Committee decides otherwise. Any Dividend Equivalents may be paid in cash or in such whole number of shares of Shares (rounded down) that have an aggregate Market Value at Vesting (or where rule 7.3.2 applies, exercise), which is closest to that amount. Dividend Equivalents will be paid as soon as reasonably practicable following Vesting or, in the case of Options, exercise, as applicable, of the related Award and on the same terms as the related Award. 7.4 Nominee Shares may be delivered to and held by a nominee on behalf of the Participant and on such terms as the Committee may determine at the Award Date. 7.5 Shareholder rights Shares issued in connection with this Plan will rank equally in all respects with the Shares in issue on that date. Participants will only be entitled to rights attaching to Shares from the date of the allotment or transfer to them. InterContinental Hotels Group PLC Deferred Award Plan (Page 10 of #NUM_PAGES#)

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7.6 Cash alternative The Committee may choose to settle any Award partly or fully in cash. The Participant will have no right to acquire the Shares in respect of which an Award has been settled in cash. 7.7 Share transfer tax The Committee will arrange payment of any share transfer taxes that arise on grant or settlement. 8. Investigations 8.1 Relevant investigation This rule applies where an investigation is ongoing that might lead to Malus and/or Clawback being triggered in relation to a Participant's Award. 8.2 Impact of investigation If an investigation is ongoing then, unless the Committee decides otherwise: 8.2.1 the Participant's Award will not Vest; 8.2.2 if it is an Option, exercise will be suspended; and 8.2.3 where relevant, the Participant's Award will not be settled, 8.2.4 until the investigation is concluded and then any Award will only Vest, be exercisable or be settled as determined by the Committee. If the Exercise Period of an Option would otherwise have ended, the Committee can decide to extend the period and "Exercise Period" will be understood accordingly. 9. Dealing Restrictions 9.1 Application of rule This rule 9 (Dealing Restrictions) applies if Dealing Restrictions would prohibit the exercise of an Option, delivering or arranging delivery of Shares or cash to settle an Award, and/or the Participant from selling Shares, including if required to discharge Tax. 9.2 Impact of Dealing Restrictions If Dealing Restrictions apply, then: 9.2.1 an Unvested Award will not Vest until the Dealing Restrictions cease to apply; 9.2.2 any exercise will take effect as soon as practicable after the Dealing Restrictions cease to apply; 9.2.3 if an Exercise Period would otherwise end before the Dealing Restrictions cease to apply, it will be extended to end 30 days after the Dealing Restrictions cease to apply and "Exercise Period" will be understood accordingly; and 9.2.4 the delivery of Shares or cash to settle an Award will not occur until the Dealing Restrictions cease to apply, unless the Committee decides otherwise. InterContinental Hotels Group PLC Deferred Award Plan (Page 11 of #NUM_PAGES#) 10. Holding Period 10.1 Application of rule An Award granted to an Executive Director (or a Former Employee who was an Executive Director) will be subject to a Holding Period if required under the Remuneration Policy or any other policy approved by the Committee. An Award granted to any other Employee (or other Former Employee) may be subject to a Holding Period, as set out in rule 2.4 (Terms of Awards), unless the Committee decides otherwise. 10.2 Impact of Holding Period If a Holding Period applies, the Shares acquired on Vesting or exercise may not be transferred, assigned or otherwise disposed of during the Holding Period other than a transfer: 10.2.1 to the Participant's personal representatives on death; 10.2.2 to a nominee in accordance with rule 10.3 (Nominee); 10.2.3 in accordance with rule 16.1 (Withholding); 10.2.4 under the Malus and Clawback Policy; 10.2.5 in connection with an event described in rule 13 (Takeovers and other corporate events) or rule 15.1 (Adjustments to Awards); or 10.2.6 otherwise with the agreement of the Committee, and any such attempted action will be invalid and ineffective. 10.3 Nominee Following Vest, or exercise, as applicable, the Committee may decide that Shares will be delivered to and held by a nominee on behalf of the Participant until the expiry of the Holding Period on such terms as the Committee may decide. At the end of the Holding Period, the Participant may direct that the Shares are transferred from the nominee arrangement. 10.4 Phantom and cash-settled Awards The Committee will decide if and how any Holding Period will operate in relation to cash and will communicate this to the Participant. 10.5 Proof of ownership If the Committee requires, a Participant must provide proof of continued beneficial ownership of the Shares during and at the end of the Holding Period. 11. Leaving and Former Employees 11.1 Leaving – before Vesting Where a Participant Leaves before Vesting, the Award will lapse on the date the Participant Leaves, unless other provisions of this rule 11 (Leaving) apply. InterContinental Hotels Group PLC Deferred Award Plan (Page 12 of #NUM_PAGES#)

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If a Participant Leaves for a Good Leaver Reason before Vesting, the Award will: 11.1.1 if the reason is death, Vest on the date of death, or as soon as practicable following such date; 11.1.2 otherwise continue until the normal date of Vesting, unless the Committee determines otherwise; and 11.1.3 Vest, and, for an Option, become exercisable only to the extent prescribed by rule 11.4 (Good leavers – Vesting and exercise). 11.2 Leaving – after Vesting If a Participant Leaves after Vesting, the Award will: 11.2.1 continue in accordance with the Plan; and 11.2.2 in the case of an Option, be exercisable for a period of 6 months (12 months in the case of the Participant's death) from the date the Participant Leaves (or such longer period as the Committee decides) and will then lapse, unless otherwise determined by the Committee. 11.3 Summary dismissal If, at any time, a Participant is summarily dismissed or Leaves in circumstances where the Participant's employer would have been entitled to summarily dismiss the Participant (in the opinion of the Committee) then that Participant's Awards will immediately lapse. 11.4 Good leavers – Vesting and exercise If this rule 11.4 (Good leavers – Vesting and exercise) applies: 11.4.1 An Award will only Vest: (i) to the extent that the Committee decides any Performance Conditions and/or other Conditions have been satisfied, unless the Committee decides otherwise; (ii) in accordance with any adjustment under rule 5.4 (Overriding discretion); and (iii) pro-rata to reflect the period from the start of the Performance Period until the date the Participant Leaves, as a proportion of the period from the start of the Performance Period until the Vesting Date unless the Committee decides otherwise, and, to the extent the Participant's Award does not Vest, it will then lapse; and 11.4.2 Options will be exercisable for a period of 6 months (12 months in the case of the Participant's death) from Vesting (or such longer period as the Committee decides) and will then lapse. This will not extend any Exercise Period that would otherwise apply to an Award. 11.5 Leaving - Holding Period Where a Participant Leaves, any Holding Period will continue to apply unless the Committee decides otherwise, except on death, where any Holding Period will cease to apply. 11.6 Changing role and/or responsibilities Where a Participant's role and/or responsibilities within the Group significantly change, but the Participant does not Leave, the Committee may decide to treat that Participant as Leaving for the InterContinental Hotels Group PLC Deferred Award Plan (Page 13 of #NUM_PAGES#) purposes of any Awards which have not Vested, in which case the Participant will be treated in respect of those Awards as Leaving for a Good Leaver Reason, unless the Committee decides otherwise. 11.7 Former Employees The other provisions of this rule 11 (Leaving and Former Employees) will not apply to a Participant who is a Former Employee at the Award Date. Instead, the following provisions will apply to the Participant: 11.7.1 if the Participant dies holding an Award, the Award will: (i) Vest on the date of death; and (ii) in the case of an Option, be exercisable for a period of 12 months from the date of death (or such longer period as the Board decides) and will then lapse (this will not extend any Exercise Period that would otherwise apply to an Award); and 11.7.2 if it is discovered that there are circumstances which permit or which would have entitled the Participant's employer to summarily dismiss the Participant (in the opinion of the Board), the Participant's Award will immediately lapse. 12. Mobile Participants 12.1 Application of rule If a Participant moves from one jurisdiction to another or becomes tax resident in a different jurisdiction and, as a result, there may be adverse legal, regulatory, tax or administrative consequences for the Participant and/or a Member of the Group in connection with an Award then the Committee may adjust that Participant's Award so that the Award is on such terms, subject to such conditions and over such Shares (or other type of securities or cash) as the Committee may consider appropriate. 12.2 Cancellation If the Committee decides that the adjustment of an Award under rule 12.1 (Application of rule) is not practicable or appropriate, the Committee may decide that the Award will lapse. 12.3 Notifying Participants The Committee will notify affected Participants of any adjustment or decision made under this rule 12 (Mobile Participants) as soon as practicable. 13. Takeovers and other corporate events 13.1 Takeovers For the purposes of this rule 13 (Takeovers and other corporate events), a takeover occurs when: 13.1.1 a general offer to acquire Shares made by a person (or a group of persons acting in concert) becomes wholly unconditional; 13.1.2 under Section 895 of the Companies Act 2006 or equivalent procedure under local legislation, a court sanctions a compromise or arrangement in connection with the acquisition of Shares; or InterContinental Hotels Group PLC Deferred Award Plan (Page 14 of #NUM_PAGES#)

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13.1.3 a person (or a group of persons acting in concert) obtains Control of the Company in any other way. 13.2 Other corporate events If the Company is or may be affected by: 13.2.1 any demerger, delisting, distribution (other than an ordinary dividend) or other transaction which, in the opinion of the Committee, might affect the current or future value of any Award; or 13.2.2 any reverse takeover (not within rule 13.2.1 above), merger by way of a dual listed company or other significant corporate event, as determined by the Committee, the Committee may decide that, for the purposes of this this rule 13 (Takeovers and other corporate events), such event should be treated as if it were a takeover event within rule 13.1 (Takeovers). 13.3 Time of Vesting Where one of the events set out in rule 13.1 (Takeovers) occurs or the Committee decides pursuant to rule 13.2 (Other corporate events) that an event should be treated in the same way as a takeover, Awards will Vest to the extent provided in rule 13.5 (Extent of Vesting) on the date of such event, unless rule 14 (Exchange of Awards) applies or the Committee decides otherwise. 13.4 Winding up If notice is given of a resolution for the voluntary winding up of the Company, Awards will Vest on the date the notice is given in accordance with rule 13.5 (Extent of Vesting). 13.5 Extent of Vesting If this rule 13.5 (Extent of Vesting) applies: 13.5.1 an Award will Vest: (i) to the extent that the Committee decides any Performance Conditions and/or other Conditions have been satisfied, unless the Committee determines otherwise; (ii) pro-rata to reflect the period from the start of the Performance Period until the date of Vesting, as a proportion of the period from the start of the Performance Period until the Vesting Date unless the Committee decides otherwise; and (iii) in accordance with any adjustment under rule 5.4 (Overriding discretion), 13.6 and to the extent the Participant's Award does not Vest, it will then lapse. 13.6.1 Where an Option Vests pursuant to this rule 13 (Takeovers and other corporate events) or was already Vested, it will be exercisable for a period of 1 month from the date of the relevant event, or within such other period as the Committee decides, and then will lapse. This will not extend any Exercise Period that would otherwise apply to an Award. 13.7 Malus and Clawback If this rule 13 (Takeovers and other corporate events) applies to an Award, the Committee may determine that Malus and Clawback will no longer apply to the Award or will be varied in its application to the Award. In relation to any cash or Shares acquired prior to the relevant event, Malus and Clawback will continue to apply, with such amendments as the Committee determines. InterContinental Hotels Group PLC Deferred Award Plan (Page 15 of #NUM_PAGES#) 13.8 Holding Period If this rule 13 (Takeovers and other corporate events) applies to an Award, any applicable Holding Period will cease to apply to an Award unless the Committee determines that it should continue to apply until its expiry in accordance with the Plan and the terms of the Award. 14. Exchange of Awards 14.1 Meaning of "Acquirer" For the purposes of this rule 14 (Exchange of Awards), "Acquirer" means a person that obtains Control of the Company. 14.2 Application of rule Where any event within rule 13.1 (Takeovers), is expected to or does apply, including where the Committee decides pursuant to rule 13.2 (Other corporate events) that an event should be treated in the same way as a takeover: 14.2.1 if the relevant event constitutes a corporate reorganisation of the Company where substantially all the shareholders of the Company immediately before the reorganisation will continue to have Control immediately afterwards, Awards will not Vest under rule 13 (Takeovers and other corporate events) but will instead, along with Vested Awards, be exchanged for new awards, unless the Committee decides otherwise; and 14.2.2 in any other case, the Committee may, with the consent of the Acquirer, decide that Awards will not Vest under rule 13 (Takeovers and other corporate events) but will instead, along with Vested Awards, be exchanged for new awards. 14.3 Timing of exchange Any such exchange will take place on (or as soon as practicable after) the relevant event under rule 13 (Takeovers and other corporate events). 14.4 Exchange terms Any new award will be granted on such terms and over such shares (or other types of securities) as the Committee decides. Participants will enter into such arrangements and/or documents as the Committee requires in order to give effect to the terms of the new award. 14.5 Interpretation following exchange Unless the Committee decides otherwise, any new award that is subject to the Plan will be interpreted as if references to Shares are references to the shares (or other securities) over which the new award is granted and references to the Company are to such company as the Committee decides. 15. Variations in share capital 15.1 Adjustments to Awards 15.1.1 If there is: 15.1.1 a variation in the issued share capital of the Company, including a capitalisation or rights issue, open offer, sub-division, consolidation or reduction of share capital; 15.1.2 a demerger (in whatever form); InterContinental Hotels Group PLC Deferred Award Plan (Page 16 of #NUM_PAGES#)

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15.1.3 a special dividend or distribution; or 15.1.4 any other transaction which the Committee decides will materially affect the value of the Shares, and where the Committee has not decided pursuant to rule 13.2 (Other corporate events) that such event will be treated as a takeover, the Committee may adjust the Award so that the Award is on such terms and over such number or class of Shares as the Committee considers appropriate. 15.2 Notice of Adjustments The Committee will notify Participants of any adjustment made under rule 15.1 (Adjustments to Awards) as soon as practicable. 16. Tax 16.1 Withholding Any Member of the Group, any employing company, the trustee of any relevant employee benefit trust or any third-party provider nominated by the Committee may: 16.1.1 withhold such amounts from a Participant (including deducting such amounts from any cash payment owed to the Participant) and retain some or all of it; 16.1.2 sell some or all of the Shares to which the Participant is entitled under the Plan on behalf of the Participant; 16.1.3 reduce some of the Shares to which the Participant is entitled under the Plan on behalf of the Participant (in accordance with rule 7.6 (Cash alternative)); or 16.1.4 make such other withholding arrangements as it considers necessary or desirable, to meet any liability for Taxation, collect any outstanding exercise price and to meet any applicable dealing and/or currency exchange costs and other associated costs. 16.2 Participant indemnity A Participant indemnifies the Group for that Participant's liability for Tax. 17. Terms of employment 17.1 Application This rule 17 (Terms of employment) applies during an Employee's employment and after the termination of an Employee's employment, whether or not the termination is lawful. 17.2 Not part of employment contract Nothing in the rules of the Plan or the operation of the Plan forms part of an Employee's contract of employment or alters it. The rights and obligations arising from the employment or former employment relationship between the Employee and the relevant Member of the Group are separate from, and are not affected by, the Plan. Participation in the Plan does not create any right to, or expectation of, employment (continued or otherwise). 17.3 No future expectation No Employee has a right to participate in the Plan. Participation in the Plan or the grant of an Award on a particular basis in any year does not create any right to or expectation of participation in the Plan or the grant of an Award on the same, or any other, basis (or at all) in the future. InterContinental Hotels Group PLC Deferred Award Plan (Page 17 of #NUM_PAGES#) 17.4 Decisions and discretion The terms of the Plan do not entitle the Employee to the exercise of any discretion in the Employee's favour. The Employee will have no claim or right of action in respect of any decision, omission or discretion which may operate to the disadvantage of the Employee. 17.5 No compensation No Employee has any right to compensation or damages for any loss (actual or potential) in relation to the Plan, including any loss in relation to: 17.5.1 any loss or reduction of rights or expectations under the Plan in any circumstances (including lawful or unlawful termination of employment); 17.5.2 any exercise of a discretion or a decision taken in relation to an Award or to the Plan, or any failure or delay to exercise a discretion or take a decision; and 17.5.3 the operation, suspension, termination or amendment of the Plan. 17.6 Waiver By participating in the Plan, an Employee agrees to waive all rights which might otherwise arise under the Plan, other than the right to acquire Shares or cash (as appropriate) subject to and in accordance with the explicit rules of the Plan, in consideration for and as a condition of the grant of an Award. 18. General 18.1 Data protection Participation in the Plan will be subject to: 18.1.1 any data protection policies applicable to any relevant Member of the Group; 18.1.2 any applicable privacy notices; and 18.1.3 where requested, any applicable consents. 18.2 Consents and filings All allotments, issues and transfers of Shares or cash payments will be subject to the Company's articles of association and any necessary consents or filings required in any relevant jurisdiction. The Participant will be responsible for complying with any requirements needed in order to obtain, or to avoid the necessity for, any such consents or filings. 18.3 Source of Shares Awards may be settled using newly issued Shares, Shares transferred from treasury and Shares purchased in the market. 18.4 Listing If, and for as long as the Shares are listed on the London Stock Exchange (or, if the Committee decides, any other stock exchange on which the Shares are traded), the Company will apply as soon as practicable for the listing and admission to trading on such exchange of any Shares issued in connection with the Plan. InterContinental Hotels Group PLC Deferred Award Plan (Page 18 of #NUM_PAGES#)

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18.5 Notices Any notice or other communication required under this Plan will be given in writing, which may include electronic means. Any notice or other communication to be given to an Employee or Participant may be delivered by electronic means (including by email, through the Group's intranet or a share plan portal), personally delivered or sent by ordinary post to such address as the Committee reasonably considers appropriate. 18.5.1 Any notice or other communication to be given to the Company or its agents may be delivered or sent to its registered office or such other place and by such means as the Committee or the Company's agents may specify and notify to Employees and/or Participants, as relevant. Notices or other communications: 18.5.1 sent electronically will be deemed to have been received immediately (if sent during usual business hours) or at the opening of business on the next Business Day (if sent outside usual business hours); 18.5.2 that are personally delivered will be deemed to have been received when left at the relevant address (if left during usual business hours) or at the opening of business on the next Business Day (if left outside usual business hours); and 18.5.3 sent by post will be deemed to have been received 24 hours after posting to a UK address or 3 days after posting to an address outside the UK, unless there is evidence to the contrary. All notices or communications to be given to Employees or Participants are given and sent at the risk of the addressee. No Member of the Group has any liability in respect of any notice or communication given or sent, nor need they be concerned to see that the addressee actually receives it. 18.6 Third party rights Except as otherwise expressly stated to the contrary, nothing in the Plan confers any benefit, right or expectation on any person other than an Employee, Participant or Member of the Group. No third party has any rights under the Contracts (Rights of Third Parties) Act 1999 (or any similar legislation in an overseas jurisdiction) to enforce any rule of this Plan. 18.7 Bankruptcy A Participant's Award will lapse if the Participant becomes bankrupt or enters into a compromise (or any overseas equivalent) with the Participant's creditors generally, other than where the compromise (or overseas equivalent) is entered into by the Participant voluntarily and at the Participant's complete discretion. 18.8 Not pensionable None of the benefits that may be received under the Plan are pensionable. 18.9 Not transferable A Participant's Award will lapse if the Participant transfers, assigns, charges or otherwise disposes of the Award or any of the rights in respect of it, whether voluntarily or involuntarily (other than to that Participant's personal representatives on death). InterContinental Hotels Group PLC Deferred Award Plan (Page 19 of #NUM_PAGES#) 18.10 Currency conversions Any conversion of money into different currencies (whether notional or actual) will be done at a time and rate of exchange that the Committee decides. No Member of the Group will be liable for any loss due to movements in currency exchange rates or conversion or money transfer charges. 19. Administration 19.1 Administration of the Plan The Plan will be administered by the Committee, which has authority to make such rules and regulations for the administration of the Plan as it considers necessary or desirable. The Committee may delegate any and all of its rights and powers under the Plan. 19.2 Committee decisions All decisions of the Committee in connection with the Plan and its interpretation and the terms of any Awards (including in any dispute) will be final and conclusive. The Committee will decide whether and how to exercise any discretion in the Plan. 19.3 Severance of rules If any provision of the Plan is held to be invalid, illegal or unenforceable for any reason by any court with jurisdiction then, for the purposes of that jurisdiction only: 19.3.1 such provision will be deleted; and 19.3.2 the remaining provisions will continue in full force and effect, unless the Committee decides otherwise. 19.4 Language Where there is any conflict between the terms of the English version of the Plan, the Awards and/or any ancillary documents and a version in any other language, the English language version will prevail. 20. Changing the Plan and termination 20.1 General power Except as otherwise provided by rule 20.2 (Shareholder approval), the Committee may change the Plan in any way and at any time. 20.2 Shareholder approval The Committee will obtain prior approval of shareholders by ordinary resolution for any change to the Plan which is to the advantage of present or future Participants and which relates to any of the following: 20.2.1 the persons who may receive Shares or cash under the Plan; 20.2.2 the total number or amount of Shares or cash which may be delivered or paid under the Plan; 20.2.3 the maximum entitlement for any Participant; InterContinental Hotels Group PLC Deferred Award Plan (Page 20 of #NUM_PAGES#)

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20.2.4 the basis for determining a Participant's entitlement to, and the terms of, Shares or cash provided under the Plan and the rights of a Participant in the event of a variation made under rule 15.1.1; and 20.2.5 this rule 20.2 (Shareholder approval). 20.3 Shareholder approval – minor changes exception The Committee need not obtain shareholder approval for any minor changes to the Plan which are to: 20.3.1 benefit the administration of the Plan; 20.3.2 comply with or take account of a change in legislation; and/or 20.3.3 obtain or maintain favourable tax, exchange control or regulatory treatment of any Member of the Group or any present or future Participant. 20.4 Participant consent If a proposed change would be to the material disadvantage of one or more Participants in respect of existing rights under the Plan, then the Committee must obtain the written consent of the affected Participant(s). The Committee need not obtain Participant consent for any minor changes which are to: 20.4.1 benefit the administration of the Plan; 20.4.2 comply with or take account of a change in legislation; and/or 20.4.3 obtain or maintain favourable tax, exchange control or regulatory treatment of any Member of the Group or any present or future Participant. 20.5 Notice of change The Committee will give written notice of changes to Participants whose Awards are materially affected. 20.6 International variations The Committee may establish plans or schedules based on the Plan, but modified to take account of any local tax, exchange control or securities laws in other jurisdictions. 20.7 Termination of the Plan The Plan will terminate on 5th May 2033 (or on such earlier date as the Committee decides). Termination will not affect existing rights under the Plan. 21. Governing law and jurisdiction The laws of England and Wales govern the Plan and all Awards. The courts of England and Wales have exclusive jurisdiction in respect of any disputes arising in connection with the Plan or any Award. InterContinental Hotels Group PLC Deferred Award Plan (Page 21 of #NUM_PAGES#) 22. Appendix 1 Awards granted to US taxpayers (409A exempt) The purpose of this Appendix is to make certain variations to the terms of the Plan in the case of its operation for Participants who are US Taxpayers. In the event that a Participant becomes a US Taxpayer after the Award Date, then the Participant's Awards will immediately be modified in a manner consistent with the provisions of this Appendix 1, if the Committee so determines. References in this Appendix to Awards granted to US Taxpayers shall include Awards held by a Participant who becomes a US Taxpayer subsequent to the Award Date. 1. Meaning of words used 2. "Award Short-Term Deferral Period" means the period commencing on the date that a Conditional Award is no longer subject to a "substantial risk of forfeiture" for the purposes of Section 409A and ending upon the 15th day of the third month following the end of the Taxable Year in which such Award first is no longer subject to the substantial risk of forfeiture; 3. "Section 409A" means Section 409A of the US Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated and other official guidance issued under it, collectively, and "Treasury Regulations" will be understood accordingly; 4. "Short-Term Deferral Period" means the Award Short-Term Deferral Period; 5. "Taxable Year" means the calendar year or, if later, the end of the taxable year of the Member of the Group that employs the US Taxpayer; and 6. "US Taxpayer" means a Participant who is subject to US federal income taxation on the Award Date, or who is expected to become subject to US federal income taxation following the Award Date, or who becomes subject to US federal income taxation following the Award Date but prior to the date upon which the Award Vests. 7. Grant of Awards If a Participant becomes subject to any US tax or social security contributions liability in connection with an Award after the Award Date, any Unvested Option that they hold at that time will be treated as if it had been granted as a Conditional Award without any further action on the part of the Participant or the Company. Such Conditional Award, if determined by the Company, will be governed by the terms of this Appendix 1. 8. Settlement of Awards 8.1 Timing for payment Notwithstanding any of the rules of the Plan and except as otherwise permitted by paragraph 3.2 (Permissible delay) of this Appendix, an Award granted to a US Taxpayer must be settled under rule 7 (Settlement of Awards) no later than the end of the Award Short-Term Deferral Period 8.2 Permissible delay In the event that an Award granted to a US Taxpayer has not been settled by the end of the Award Short-Term Deferral Period because settlement would have violated applicable law, then to the extent permissible under Section 1.409A-1(b)(4)(ii) of the proposed Treasury Regulations, such InterContinental Hotels Group PLC Deferred Award Plan (Page 22 of #NUM_PAGES#)

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settlement may be delayed so long as the Award is then settled at the earliest date at which it is reasonably anticipated that such law no longer prevents such settlement. 8.3 Leavers If a US Taxpayer Leaves and, in accordance with paragraph 3.1 (Timing for payment) above and an Award is satisfied before the Vesting Date, then the Shares or cash (as applicable) acquired by the US Taxpayer may not be transferred, assigned or otherwise disposed of by or on behalf of the US Taxpayer before the Vesting Date other than: 8.3.1 to the US Taxpayer's personal representatives in the event of the US Taxpayer's subsequent death; 8.3.2 to a nominee on behalf of the US Taxpayer; 8.3.3 in accordance with rule 16.1 (Withholding) to fund any liability for Tax (as well as any applicable dealing and/or currency exchange costs and other associated costs); 8.3.4 due to any Malus and/or Clawback being triggered; or 8.3.5 if the Committee decides otherwise. 9. Dividend Equivalents Any Dividend Equivalents in respect of an Award granted to a US Taxpayer shall be paid under rule 7.3 (Dividend Equivalents) no later than the end of the Award Short-Term Deferral Period (for Dividend Equivalents on Awards other than Options), or such later date permitted by paragraph 3 (Settlement of Awards) of this Appendix. 10. No extension of Short-Term Deferral Period 10.1 Delay for investigations The application of rule 8 (Investigations) to an Award granted to a US Taxpayer will not impose an additional, or extend the existing, substantial risk of forfeiture applicable to the Award for the purposes of Section 409A, and will not extend the deadline for settlement under paragraph 3 (Settlement of Awards) or payment under paragraph 4 (Dividend Equivalents) of this Appendix. 10.2 Dealing Restrictions The application of Dealing Restrictions to an Award granted to a US Taxpayer will not impose an additional, or extend the existing, substantial risk of forfeiture applicable to the Award for the purposes of Section 409A, and will not extend the deadline for settlement under paragraph 3 (Settlement of Awards) or payment under paragraph 4 (Dividend Equivalents) of this Appendix. 10.3 Holding Period For the avoidance of doubt, any Holding Period imposed by the Company with respect to an Award granted to a US Taxpayer will not impose an additional or extend the existing substantial risk of forfeiture applicable to such Award for the purposes of Section 409A. InterContinental Hotels Group PLC Deferred Award Plan (Page 23 of #NUM_PAGES#) 11. Changes to Awards 11.1 Conditions Any Performance Conditions or other Conditions applicable to an outstanding Award granted to a US Taxpayer may not be altered if and to the extent that the alteration would result in the Short- Term Deferral Period ending earlier, except where the condition is waived. 11.2 Adjustments Where there is to be an adjustment of an Award granted to a US Taxpayer pursuant to rule 12 (Mobile Participants), the Committee will attempt to structure the terms of the adjustment so that it does not violate Section 409A. 11.3 Takeovers and restructurings Where there is to be an adjustment of an Award granted to a US Taxpayer pursuant to rule 13 (Takeovers and other corporate events), the Committee shall attempt to structure the terms of the adjustment of the Award such that the adjustment does not violate Section 409A. 11.4 Exchange of Awards Where there is to be an exchange of an Award granted to a US Taxpayer pursuant to rule 14 (Exchange of Awards), the Committee shall attempt to structure the terms of the exchange and the new award under rule 14 (Exchange of Awards) such that neither the exchange nor the new award violate Section 409A. 11.5 Changing the Plan or Awards Notwithstanding rule 20 (Changing the Plan and termination), any amendment to the Plan (including any Appendix to the Plan) or an Award will only be effective with respect to an Award granted to a US Taxpayer to the extent that it does not cause the Award to violate Section 409A. 12. General 12.1 Intention Awards granted to US Taxpayers, and any Dividend Equivalents in respect of such Awards, under this Appendix are intended to be exempt from the requirements of Section 409A under the short- term deferral exception described in Section 1.409A-1(b)(4) of the Treasury Regulations, and the Plan (including this Appendix) will be interpreted and administered consistent with this intention with respect to Awards granted to US Taxpayers and any Dividend Equivalents in respect of such Awards. 12.2 No guarantee Notwithstanding any other provision of the Plan (including any Appendix to the Plan) or any Award, no Member of the Group guarantees or warrants to any person that an Award granted to a US Taxpayer is exempt from Section 409A. Each US Taxpayer is solely responsible and liable for the satisfaction of all taxes, penalties and interest that may be imposed on the US Taxpayer in connection with the Plan (including any Appendix to the Plan) or any Award, including any taxes, penalty or interest under Section 409A. No Member of the Group shall have any obligation to indemnify or otherwise hold a US Taxpayer harmless from any or all of such taxes, penalty or interest. InterContinental Hotels Group PLC Deferred Award Plan (Page 24 of #NUM_PAGES#)

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12.3 Conflict In the event of any conflict between a provision of the main rules of the Plan and a provision of this Appendix, with respect to an Award granted to a US Taxpayer under this Appendix, the provisions of this Appendix will take precedence. InterContinental Hotels Group PLC Deferred Award Plan (Page 25 of #NUM_PAGES#) Appendix 2 Awards granted to US taxpayers (409A compliant) The purpose of this Appendix is to make certain variations to the terms of the Plan in the case of its operation for Participants who are US Taxpayers. In the event that a Participant becomes a US Taxpayer after the Award Date, then the Participant's Conditional Awards will immediately be modified in a manner consistent with the provisions of this Appendix 2, if the Committee so determines. Conditional Awards subject to this Appendix are intended to comply with Section 409A. Where there is any conflict between the rules of the Plan and this Appendix, the terms of this Appendix will prevail. 1. Meaning of words used "Change in Control Event" means an event described in rule 13 (Takeovers and other corporate events) that also qualifies as a change in the ownership or effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company, in accordance with Section 1.409A-3(i)(5) of the Treasury Regulations; 2. "Section 409A" means Section 409A of the US Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated and other official guidance issued under it, collectively, and "Treasury Regulations" will be understood accordingly; and 3. "US Taxpayer" means a Participant who is subject to US federal income taxation on the Award Date, or who is expected to become subject to US federal income taxation following the Award Date, or who becomes subject to US federal income taxation following the Award Date but prior to the date upon which the Award Vests. 4. Grant of Awards 5. If a Participant becomes subject to any US tax or social security contributions liability in connection with an Award after the Award Date, any Unvested Option that they hold at that time will be treated as if it had been granted as a Conditional Award without any further action on the part of the Participant or the Company. Such Conditional Award, if determined by the Company, will be governed by the terms of this Appendix 2. 6. Conditions Any Performance Conditions and/or other Conditions imposed on an Award may only be imposed to such extent they are consistent with Section 409A. 7. Dividend Equivalents Any Dividend Equivalents in respect of an Award granted to a US Taxpayer shall be paid under rule 7.3 (Dividend Equivalents) in accordance with Section 409A. 8. Vesting of Award 8.1 The Vesting of an Award, and the delivery of the Shares or cash, may only be delayed beyond the Vesting Date as a result of Dealing Restrictions, Investigations or otherwise to the extent permissible under Section 1.409A-2(b)(7)(ii) of the Treasury Regulations where the delivery of Shares or cash in respect of the Award would violate applicable law, in which event, the Award InterContinental Hotels Group PLC Deferred Award Plan (Page 26 of #NUM_PAGES#)

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will Vest at the earliest date at which it is reasonably anticipated that such law no longer prevents such delivery of Shares or cash. 9. Settlement of Awards 9.1 Delivery of Shares or cash 9.2 Except as otherwise provided by rule 13 (Takeovers and other corporate events), where a Conditional Award has Vested, the number of Shares in respect of which the Conditional Award has Vested, or cash where applicable, together with any additional Shares or cash to which a Participant becomes entitled under rule 7.3 (Dividend Equivalents) will be delivered or paid (as applicable) to the Participant or the Participant's nominee as soon as practicable after the Vesting Date (but in any event no later than 31 December of the calendar year of the Normal Release Date, or if later, the 15 day of the third month following the Vesting Date). 9.3 Delivery - Nominee 9.4 Shares may be delivered to and held by a nominee on behalf of the Participant and on such terms as the Committee may determine at the Award Date to the extent it would not result in a violation of Section 409A. 10. Leaving If a Participant Leaves for a Good Leaver Reason before Vesting, the Award will: 10.1.1 if the reason is death, Vest on the date of death, or as soon as practicable following such date (but in any event no later than 31 December of the calendar year following the calendar year of the date of death); 10.1.2 otherwise continue until the normal date of Vesting; and 10.1.3 Vest only to the extent prescribed by rule 11.4 (Good leavers – Vesting and exercise). 11. Takeovers and other corporate events 11.1 Corporate events Where one of the events set out in rule 13 (Takeovers and other corporate events) occurs, the Awards will Vest on the date such event occurs, unless the relevant event does not qualify as a Change in Control Event and to the extent that the Committee determines that rule 14 (Exchange of Awards) should apply. 11.2 Timing of Vesting If the relevant event qualifies as a Change in Control Event, then the Award will Vest and the number of Shares in respect of which the Award has been Released together with any additional Shares or cash to which a Participant becomes entitled under rule 7.3 (Dividend Equivalents) will be, delivered or paid (as applicable) to the Participant or the Participant's nominee as soon as practicable after the relevant event (but in any event no later than 31 December of the calendar year of the relevant event, or if later, the 15 day of the third month following the relevant event). 22.1.1 If the relevant event does not qualify as a Change in Control Event, then the Award will Vest and the number of Shares in respect of which the Award has been Released together with any additional Shares or cash to which a Participant becomes entitled under rule 7.3 (Dividend Equivalents) will be, delivered or paid (as applicable) to the Participant or the Participant's nominee as soon as practicable after the Vesting Date (but in any event no later than 31 December of the InterContinental Hotels Group PLC Deferred Award Plan (Page 27 of #NUM_PAGES#) calendar year of the Vesting Date, or if later, the 15 day of the third month following the Vesting Date) or such earlier date permitted by Section 409A." 12. Exchange of Awards 13. Where any event within rule 13.1 (Takeovers) or 13.2 (Other corporate events), is expected to or does apply, and the relevant event does not qualify as a Change in Control Event, the Committee may decide that Awards will be exchanged for new awards on (or as soon as practicable after) the relevant event. Any new award will be granted on such terms and over such shares as the Committee decides, providing the exchange and the new award does not violate Section 409A. 14. Adjustments 22.1.2 Where any event within 15.1 occurs, the Committee may adjust the Award so that the Award is on such terms and over such number or class of Shares as the Committee considers appropriate, provided such adjustment does not violate Section 409A. 15. Tax 15.1 In the event that a Participant becomes subject to tax on an Award (or a portion of an Award) prior to the Vesting Date, then to the extent permissible under Section 1.409A-3(j)(4)(vi) or Section 1.409A-3(j)(4)(xi) of the Treasury Regulations, the Committee may to the extent so permitted accelerate the Vest of a portion of the Award and the delivery of the Shares or cash in respect of which the Award has Vested and any additional Shares or cash to which a Participant becomes entitled under rule 7.3 (Dividend Equivalents). 16. Changing the Plan and termination 16.1 Participant consent If, at any time, the Company determines that the terms of an Award may violate Section 409A, the Company shall have the authority, but shall not be required, to enter into an amendment of such Award without the consent of the Participant that is designed to avoid the imposition of any additional tax, interest or penalties on the Participant under Section 409A. 16.2 Section 409A Any amendment will only be effective to the extent that it complies with Section 409A. 17. General 17.1 Intention 17.2 Conditional Awards granted to US Taxpayers, under this Appendix, and any additional Shares or cash to which a Participant becomes entitled under rule 7.3 (Dividend Equivalents) are intended to comply with the requirements of Section 409A, and the Plan (including this Appendix) will be interpreted and administered consistent with this intention with respect to such Conditional Awards. 17.3 No guarantee 17.4 Notwithstanding any other provision of the Plan (including this Appendix) or any Conditional Award, no Member of the Group guarantees or warrants to any person that a InterContinental Hotels Group PLC Deferred Award Plan (Page 28 of #NUM_PAGES#)

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Conditional Award complies with Section 409A. Each US Taxpayer is solely responsible and liable for the satisfaction of all taxes, penalties and interest that may be imposed on the US Taxpayer in connection with the Plan and/or this Appendix or any Conditional Award, including any taxes, penalties or interest under Section 409A. No Member of the Group shall have any obligation to indemnify or otherwise hold a US Taxpayer harmless from any or all of such taxes, penalties or interest. 17.5 Conflict 18. In the event of any conflict between a provision of the main rules of the Plan and a provision of this Appendix, with respect to an Award granted to a US Taxpayer under this Appendix, the provisions of this Appendix will take precedence. InterContinental Hotels Group PLC Deferred Award Plan (Page 29 of #NUM_PAGES#)

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## Ex-12.A

**Exhibit 12(a)** 

I, Elie Maalouf, certify that:

1. I have reviewed this Annual Report on Form 20-F of InterContinental Hotels Group PLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the

------

annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5. The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: February 26, 2026

/s/Elie Maalouf

Elie Maalouf

Chief Executive Officer

## Ex-12.B

**Exhibit 12(b)** 

I, Michael Glover, certify that:

1. I have reviewed this Annual Report on Form 20-F of InterContinental Hotels Group PLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the

------

annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5. The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: February 26, 2026

/s/Michael Glover

Michael Glover

Chief Financial Officer

## Ex-13.A

**Exhibit 13(a)** 

**906 Certification**

The certification set forth below is being submitted in connection with the Annual Report on Form 20-F for the year ended December 31, 2025 (the "Report") for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Section 1350 of Chapter 63 of Title 18 of the United States Code.

Elie Maalouf, the Chief Executive Officer, and Michael Glover, the Chief Financial Officer of InterContinental Hotels Group PLC, each certifies that, to the best of his knowledge:

1. the Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of InterContinental Hotels Group PLC.

Date: February 26, 2026

---

| | | |
|:---|:---|:---|
| By: | &nbsp;&nbsp;<br>/s/Elie Maalouf | &nbsp;&nbsp;<br>/s/Elie Maalouf |
|  | Name: | Elie Maalouf |
|  | Title: | Chief Executive Officer |
| By: | &nbsp;&nbsp;<br>/s/Michael Glover | &nbsp;&nbsp;<br>/s/Michael Glover |
|  | Name: | Michael Glover |
|  | Title: | Chief Financial Officer |

---

## Ex-15.A

**Exhibit 15(a)**

**Consent of independent registered public accounting firm**

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (No. 333-271687, 333-267963, 333-254081, 333-197846, 333-181334, 333-126139, 333-104691, 333-99785 and 333-89508) of InterContinental Hotels Group PLC of our report dated 16 February 2026 relating to the financial statements and the effectiveness of internal control over financial reporting, which appears in this Form 20-F.

/s/PricewaterhouseCoopers LLP

Birmingham, United Kingdom

26 February 2026

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