INTERCONTINENTAL HOTELS GROUP PLC /NEW/

For the period ended Dec 31, 2025. Filed Feb 26, 2026.

About this filing

The yearly report of a company based outside the US. It covers much of what a 10-K does, and may follow accounting rules other than US ones.

FY2025 · Filed Feb 26, 2026

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IHG$178.75+1.8%Stored close · as of Nov 6, 2026

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Contents

Viability statement

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 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

Trading and profitability improved in 2025 reflecting the continued growth in travel demand and our increase in net system size. Our efficient operating model resulted in Group adjusted free cash flowa of $893m during 2025 and net debta increased by $551m, after $1,167m of ordinary dividends and the share buyback. The Group’s business model is discussed in more detail on pages 24 to 29.There is a range of possible planning scenarios over the three-year period considered in this review due to macro uncertainties and geopolitical risks affecting markets in each of our regions. In assessing the viability of the Group, the Directors have reviewed a number of scenarios, weighting downside risks that would threaten the business model, future performance, solvency and liquidity of the Group more heavily than opportunities.In performing the viability analysis, the Directors have considered a ‘Base Case’ which assumes that global RevPAR in 2026 to 2028 continues to grow in line with market expectations in each of our regions.

The assumptions applied in the viability assessment are consistent with those used for Group planning purposes, the going concern assessment, for impairment testing and for assessing recoverability of deferred tax assets (see further detail on page 183).The Directors have also reviewed a ‘Severe Downside Case’ reflecting a severe but plausible scenario equivalent to the market conditions experienced through the 2008-09 global financial crisis, in which RevPAR declines by 17% in 2026 before recovering by 5% in both 2027 and 2028. 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. The viability assessment has been undertaken by evaluating the Base Case, Severe Downside Case and Combined Scenario with reference to the Group’s available liquidity.

Scenarios modelled	Related to principal risks
Severe Downside CaseThis models a prolonged decrease in RevPAR, which may be driven by external or internal factors.	–Operational resilience to incidents or disruption or control breakdown (including geopolitical, safety and security, cybersecurity, fraud and health-related).–Guest preferences for, or loyalty to, IHG-branded hotel experiences and channels.–Talent and capability attraction, retention and development.–Our ability to deliver technological or digital performance or innovation (at scale, speed etc).–Owner preferences for or ability to invest in our brands.
Combined ScenarioThis models the Severe Downside Case and the impact of a specific material incident, which could relate to cybersecurity or an alternative material impact on the cash flow statement.	All of the risks above, and–Data and information usage, storage and transfer.–Legal, regulatory and contractual complexity or litigation exposures.

Viability statement continued

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 31 December 2025 of $2,599m, comprising cash and cash equivalents (net of overdrafts and restricted cash) of $1,099m plus an undrawn bank facility of $1,500m.Under the Base Case, Severe Downside Case and Combined Scenario, the Group is forecast to generate positive free cash flow over the 2026–28 period. The principal risks that could be applicable have been considered and are able to be absorbed within the liquidity available.The Directors 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 would be required to exhaust the liquidity in the Combined Scenario. This included modelling no refinancing available during the period of assessment. The Directors concluded that it was very unlikely that a single risk or combination of the risks considered could create the sustained impact required to 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

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.