Sign in

    Estelle Weingrod • JPMorgan Chase & Co.

    Estelle Weingrod's questions to InterContinental Hotels Group PLC (IHG) leadership

    Estelle Weingrod's questions to InterContinental Hotels Group PLC (IHG) leadership • H1 2025

    Question

    Estelle Weingrod of J.P. Morgan requested details on the H1 vs. H2 phasing of cost savings, the key drivers of H1 margin performance, and the factors behind the slowdown in EMEAA RevPAR growth.

    Answer

    CFO Michael Glover clarified that H1 cost savings were 4.5%, with the full-year figure expected to be 1-2%, implying a flattish cost base in H2. He confirmed H2 margin upside will come from both ancillaries and operational leverage. CEO Elie Maalouf explained the EMEAA slowdown was due to lapping a very strong prior year that included one-time events like the Olympics and major concerts, stating that the current 3% growth is still a pleasing result, complemented by very strong signings and openings in the region.

    Ask Fintool Equity Research AI

    Estelle Weingrod's questions to InterContinental Hotels Group PLC (IHG) leadership • H1 2025

    Question

    Estelle Weingrod of JPMorgan Chase & Co. asked about the H1/H2 phasing of cost savings, the primary contributors to the strong H1 margin performance, and the reasons for the RevPAR slowdown in the EMEAA region.

    Answer

    CEO Elie Maalouf attributed the EMEAA slowdown to lapping exceptionally strong prior-year results that included major one-time events, noting he was pleased with the 3% growth and strong development in the region. CFO Michael Glover explained that H1 cost savings of 4.5% would moderate to a full-year rate of 1-2%, implying flattish costs in H2. He expects full-year margin expansion to be driven by both cost savings and ancillary fee growth.

    Ask Fintool Equity Research AI