InterContinental Hotels Group Raises 2026 Interest Expense to $230-250M, Opens Record 443 Hotels
IHG expects 2026 interest expense to rise to $230-250 million on elevated debt service, while capex outflows shifted from late 2025 into 2026. The group opened a record 443 hotels to exceed 6,900 properties, launched Noted Collection, acquired Ruby, and plans to triple credit-card fee revenue by 2028.
1. Financial Guidance for 2026
InterContinental Hotels Group now anticipates 2026 interest expense of $230–250 million due to higher average net debt and borrowing costs. Capital expenditure timing has shifted, with planned outflows moving from late 2025 into 2026 as new hotel openings accelerate.
2. Expansion Milestones and Brand Investments
The company opened a record 443 hotels in 2025, bringing its estate to over 6,900 properties and more than one million rooms. It also introduced the premium Noted Collection brand and acquired Ruby to bolster its presence in the upscale segment.
3. Ancillary Revenue and Cost Management
IHG has doubled credit-card fee revenues since 2023 and targets tripling them by 2028, supported by IHG One Rewards engagement. Broad-based cost efficiencies across regions and functions are freeing funds for growth areas like India and integration of acquisitions, with branded-residence fees poised to rise from 2027.
4. Greater China Market and Removal Rates
Full-year RevPAR in Greater China fell 1.6%, driven by a 2.4% rate decline despite a 0.5 percentage-point occupancy gain. The group’s removal rate ticked up to 1.9% versus a 1.5% average, reflecting higher delistings in China and select other markets.