Intercontinental Hotels Group (NYSE:IHG) said global revenue per available room, or RevPAR, rose 5.3% in the third quarter of 2026, supported by broad-based growth in the U.S. and improvements across Europe, Middle East, Asia and Africa.
Chief Executive Officer Elie Maalouf said the performance reflected the hotel operator’s diversification across geographies, brands and travel occasions. Global average daily rate increased 3.9%, while occupancy rose 0.9 percentage points. On a comparable-hotel basis, group rooms revenue climbed 10%, leisure revenue rose 5% and business revenue increased 4%.
Year-to-date global RevPAR growth reached 4.6%. IHG said it remains confident in achieving consensus expectations for the full year, which currently imply 3.5% global RevPAR growth and 4.8% net system growth.
Americas leads RevPAR growth
RevPAR in the Americas rose 6.8% in the quarter and 5.6% year to date. U.S. RevPAR increased 6.9%, with rate up 3.9% and occupancy gaining 2.1 percentage points to 73.9%, a level IHG said was its highest since 2017.
The tail end of the FIFA World Cup in July contributed 40 basis points to Americas RevPAR growth, according to Chief Financial Officer Michael Glover. He said the bulk of the U.S. performance reflected the breadth of the economy and demand across travel segments.
- Group comparable rooms revenue in the U.S. increased 12% from 2025.
- Leisure rooms revenue rose 7%.
- Business rooms revenue increased 6%.
IHG opened 39 hotels totaling 4,000 rooms in the Americas during the quarter, including the InterContinental Presidente Mexico City, a Crowne Plaza in Times Square and eight Garner properties. The company signed 65 hotels, representing 5,700 rooms. Gross system growth in the region was 3.6%, while net system growth was 2.1%.
EMEAA growth improves as Middle East remains uneven
RevPAR in Europe, Middle East, Asia and Africa increased 5% in the third quarter, improving from 0.6% growth in the prior quarter. Rate grew 4.1% and occupancy increased 0.6 percentage points to 75.5%.
RevPAR rose 3% in the U.K., 4% in continental Europe and 8% in East Asia and Pacific. India and Africa each reported growth in the mid-teens. The Middle East improved to broadly flat after a 19% decline in the second quarter, although the six Gulf Cooperation Council countries recorded a 12% RevPAR decline.
Maalouf said countries near the regional conflict continued to face weaker demand, while Egypt and Turkey performed strongly. He said IHG’s Middle East business represents about 5% of the company’s operations and that the company expects the region to recover quickly when tensions ease.
IHG opened 23 hotels with 3,600 rooms and signed 47 hotels with 7,000 rooms in EMEAA. Net system growth in the region was 6%, compared with gross system growth of 7.1%.
China RevPAR declines, but development remains strong
Greater China RevPAR declined 3% in the third quarter, as rate fell 0.8% and occupancy declined 1.6 percentage points to 62.3%. The company attributed the result to adverse weather during the first two months of the quarter and changes in public holiday timing that encouraged outbound international leisure travel in late September.
RevPAR fell 7.5% in Tier 2 through Tier 4 cities, while Tier 1 cities posted 0.2% growth. Hong Kong and Taiwan recorded strong growth. Despite the quarterly decline, Greater China RevPAR was up 1% year to date.
Maalouf said IHG remains confident in China’s longer-term hotel market fundamentals, citing economic development, a growing middle class and relatively low hotel-room penetration. The company also said it expects China to remain a significant contributor to system growth and profitability.
Greater China net system growth was 10.3%, with gross system growth of 12.1%. IHG opened 30 hotels with 5,300 rooms in the quarter and signed 52 hotels totaling 8,300 rooms. Conversions, including rebrandings and adaptive reuse projects, represented about 40% of year-to-date openings and signings in the region.
Development, capital returns and outlook
Across its global portfolio, IHG opened 92 hotels with 12,900 rooms in the quarter and signed 164 hotels with 21,100 rooms. The company’s hotel system reached 7,200 properties, while net system growth was 4.9% year over year. Its pipeline was more than 3% larger than a year earlier and equivalent to 33% of its existing system size.
The company expects 2026 to be a record development year and its fifth consecutive year of accelerating net system growth. Maalouf said the company sees “more upside than downside” to 2027 consensus net system growth expectations, though IHG did not provide formal guidance.
IHG had spent $707 million on its $950 million 2026 share-repurchase program through the third quarter, buying back 4.7 million shares. Combined with $285 million in ordinary dividend payments, total shareholder returns for 2026 are expected to exceed $1.2 billion.
Glover said adjusted interest expense is expected to be $230 million to $240 million in 2026 and to rise by $40 million to $60 million before tax in 2027 following refinancing activity and higher gross debt. He said IHG still expects to operate within its 2.5-times to 3-times net debt-to-adjusted EBIT leverage range and maintained its medium- to long-term adjusted earnings-per-share growth algorithm of 12% to 15% annually.
About Intercontinental Hotels Group (NYSE:IHG)
InterContinental Hotels Group PLC (NYSE: IHG) is a global hospitality company that owns, manages, franchises and licenses a portfolio of hotel brands. Its brands include InterContinental, Regent, Six Senses, Kimpton, Crowne Plaza, voco, Hotel Indigo, Holiday Inn, Holiday Inn Express, Staybridge Suites, Candlewood Suites, avid hotels and Garner.
IHG serves business and leisure travelers across a broad range of lodging segments, from luxury and lifestyle hotels to full-service, upscale, midscale and extended-stay accommodations.
