Revenue

12 Months Ended

Dec. 31, 2025

3. Revenue

Disaggregation of revenue


	Americas	EMEAA	Greater China	Central	Group
Year ended 31 December 2025	$m	$m	$m	$m	$m
Franchise and base management fees	943	299	129	–	1,371
Incentive management fees	20	134	36	–	190
Central revenue	–	–	–	336	336
Revenue from fee business	963	433	165	336	1,897
Revenue from owned & leased hotels	166	378	–	–	544
Revenue from insurance activities	–	–	–	27	27
	1,129	811	165	363	2,468
System Fund revenues (note 31)					1,717
Reimbursable revenues (note 31)					1,004
Total revenue					5,189

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), revenue from the sale of points is deferred until the future benefit has been consumed by the member.


	Americas	EMEAA	Greater China	Central	Group
Year ended 31 December 2024	$m	$m	$m	$m	$m
Franchise and base management fees	958	277	122	–	1,357
Incentive management fees	21	118	39	–	178
Central revenue	–	–	–	239	239
Revenue from fee business	979	395	161	239	1,774
Revenue from owned & leased hotels	162	353	–	–	515
Revenue from insurance activities	–	–	–	23	23
	1,141	748	161	262	2,312
System Fund revenues (note 31)					1,611
Reimbursable revenues (note 31)					1,000
Total revenue					4,923


	Americas	EMEAA	Greater China	Central	Group
Year ended 31 December 2023	$m	$m	$m	$m	$m
Franchise and base management fees	936	253	115	–	1,304
Incentive management fees	21	101	46	–	168
Central revenue	–	–	–	200	200
Revenue from fee business	957	354	161	200	1,672
Revenue from owned & leased hotels	148	323	–	–	471
Revenue from insurance activities	–	–	–	21	21
	1,105	677	161	221	2,164
System Fund revenues (note 31)					1,564
Reimbursable revenues (note 31)					896
Total revenue					4,624

Contract balances

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 programme	Other co- brand fees	Application & re- licensing fees	Other	Total
	$m	$m	$m	$m	$m
At 1 January 2024	1,529	22	171	126	1,848
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	1,653	111	171	125	2,060
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	1,727	135	173	134	2,169

Analysed as:
Current	715	13	22	79	829
Non-current	1,012	122	151	55	1,340
	1,727	135	173	134	2,169

At 31 December 2024 analysed as:
Current	661	12	23	70	766
Non-current	992	99	148	55	1,294
	1,653	111	171	125	2,060

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.

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:

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