Goodwill and other intangible assets

12 Months Ended

Dec. 31, 2025

11. Goodwill and other intangible assets


	Goodwill	Brands	Software	Management agreements	Other intangibles	Total
	$m	$m	$m	$m	$m	$m
Cost
At 1 January 2024	516	439	825	122	24	1,926
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	1,916
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	2,038
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	1,155
At 31 December 2024	331	439	247	18	7	1,042
At 1 January 2024	336	439	297	19	8	1,099

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

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 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:

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).