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Share-based payments
 12 Months Ended
Dec. 31, 2025
Disclosure of terms and conditions of share-based payment arrangement [abstract]  
Share-based payments 27. Share‑based payments
In 2023, the new Deferred Award Plan rules (‘DAP’) replaced the IHG Annual Performance Plan (‘APP’) and Long Term Incentive
Plan (‘LTIP’) as a simplified, combined set of plan rules which govern the Company’s discretionary incentive plans.
Awards granted under the DAP can consist of Deferred Annual Incentive (‘DAI’), Long-Term Incentive (‘LTI’), Restricted Stock
Unit (‘RSU’) and other ad hoc awards.
The DAP rules were approved at the AGM on 5 May 2023, with all LTI and RSU awards granted after this date and DAI awards
granted in respect of 2024 and future APP years being subject to the rules of the DAP. All previously granted awards are subject
to the LTIP and APP rules respectively.
Annual Performance/Deferred Annual Incentive Awards
Eligible employees (including Executive Directors) may receive all or part of their bonus in the form of deferred shares and/or
receive one-off awards of shares. Deferred shares in relation to annual performance-related bonus plans are released on the
third anniversary of the award date. Awards are conditional on the participants remaining in the employment of a participating
company or leaving for a qualifying reason. The grant of deferred shares under the APP/DAP is at the discretion of the
Remuneration Committee.
The number of shares is typically calculated by dividing a specific percentage of the participant’s annual performance-related
bonus award by the average of the middle market quoted prices on the three consecutive business days following the
announcement of the Group’s results for the relevant financial year.
Long Term Incentive and Restricted Stock Units
Executive Directors and eligible employees may receive conditional share awards, which normally have a vesting period of
three years, subject to continued employment. In addition, certain LTI awards made to Executive Directors are normally subject
to a further two-year holding period after vesting.
LTI awards are subject to performance-based vesting conditions set by the Remuneration Committee, which are normally
measured over the vesting period.
Awards are normally made annually and, except in exceptional circumstances, do not exceed the limit set out in the Directors’
Remuneration Policy and DAP Rules.
Colleague Share Plan
The Colleague Share Plan gives eligible corporate employees the opportunity to purchase shares up to an annual limit. After the
end of the plan year, the participant will be awarded the right to receive one matching share for every purchased share (subject
to continued employment). If the participant holds the purchased shares until the second anniversary of the end of the plan year,
the conditional right to matching shares vests.
The total fair value of the Colleague Share Plan is not significant.
+
More detailed information on the performance measures for awards to Executive Directors is shown in the Directors’ Remuneration Report
on pages 148 to 153.
Costs relating to share-based payment transactions
2025
2024
2023
$m
$m
$m
Equity-settled
Operating profit before System Fund and reimbursables
42
37
31
System Fund
25
23
20
67
60
51
Cash-settled
Operating profit before System Fund and reimbursables
5
7
5
72
67
56
No consideration was received in respect of ordinary shares issued under option schemes during 2025, 2024 or 2023.
27. Share‑based payments continued
Option pricing models, assumptions and movements in awards outstanding
APP/DAP
LTIP/DAP
Binomial valuation model
Monte Carlo Simulation, Binomial
and Finnerty valuation models
Option pricing models and assumptions
2025
2024
2023
2025
2024
2023
Weighted average share price (pence)
9,420.1
8,481.8
5,571.7
9,250.0
7,940.0
5,318.0
Expected dividend yield
1.84%
2.12%
2.52% to 2.77%
Risk-free interest rate
3.88%
4.20%
3.85%
Volatilitya
21%
26%
29% to 30%
Term (years)
2.9
2.2
2.3
2.8
3.0
3.0
a.The expected volatility was determined by calculating the historical volatility of the Company’s share price corresponding to the expected life of the
share award.
Number of share awards (thousands)
APP/DAP
LTIP/DAP
Deferred shares/
one-off awards
Performance-related
awards/LTI
Restricted stock units
Outstanding at 1 January 2023
321
933
1,575
Granted
214
329
683
Vested
(186)
(180)
(533)
Lapsed or cancelled
(17)
(246)
(63)
Outstanding at 31 December 2023
332
836
1,662
Granted
104
279
495
Vested
(44)
(136)
(402)
Lapsed or cancelled
(6)
(148)
(106)
Outstanding at 31 December 2024
386
831
1,649
Granted
82
270
470
Vested
(174)
(246)
(599)
Lapsed or cancelled
(5)
(77)
(93)
Outstanding at 31 December 2025
289
778
1,427
Average fair value of awards granted during the year (cents)
2025
12,412.2
6,698.1
11,754.0
2024
10,837.6
5,812.6
10,302.3
2023
6,926.4
3,169.7
6,351.0
Weighted average remaining contract life (years)
At 31 December 2025
1.0
1.1
1.1
At 31 December 2024
0.9
1.1
1.1
At 31 December 2023
1.5
1.3
1.3
The above awards do not vest until the performance and service conditions have been met.
The weighted average share price at the date of vesting for share awards during the year was 9,963.6p (2024: 8,225.7p,
2023: 5,740.3p) including the Colleague Share Plan. The closing share price on 31 December 2025 was 10,460.0p
(31 December 2024: 9,954.0p, 31 December 2023: 7,090.0p) and the range during the year was 7,424.0p to 10,880.0p
(2024: 7,016.0p to 10,180.0p, 2023: 4,832.0p to 7,118.0p).