InterContinental Hotels Group (LSE:IHG) reported first-quarter revenue per available room (RevPAR) growth of 4.4% compared with the same period last year, outperforming analyst expectations of 3.3%.
The company said performance was supported by both higher occupancy and room pricing. Occupancy increased by 1.5 percentage points during the quarter, while average daily room rates rose 2.0%.
Growth recorded across key global regions
The Americas division achieved RevPAR growth of 3.6%, with the United States market contributing a 3.4% increase. The EMEAA region — covering Europe, the Middle East, Asia and Africa — recorded growth of 5.6%, while Greater China delivered a 5.7% increase.
Management noted that trading in the Americas strengthened further during March and April, indicating improving momentum in the company’s largest operating region.
Hotel pipeline and system expansion continue
IHG expanded its net system size by 5.0% during the quarter, opening approximately 14,900 rooms globally. Gross system growth reached 6.6%.
The company also signed agreements for an additional 21,400 rooms during the period, representing 6% growth, bringing its total development pipeline to roughly 343,000 rooms worldwide.
Management said continued expansion of the hotel network reflects ongoing demand from owners and franchise partners across multiple brands and regions.
Middle East conflict affects EMEAA trading in April
The company reported softer trading conditions in the EMEAA region during April, with RevPAR declining 7% year-on-year. Within that figure, the Middle East experienced a sharp 50% drop, reflecting the impact of ongoing regional conflict and wider international travel disruption. The Middle East accounts for around 19% of the EMEAA division.
Despite the short-term weakness, group booking trends suggest improving performance in the region during May and June.
Full-year outlook remains unchanged
IHG said it remains confident in meeting full-year market expectations, including consensus forecasts for RevPAR growth of 2.2% and adjusted earnings per share of 566 cents.
Management pointed to continued booking growth across the group and improving trends in several regions as supporting factors for the remainder of 2026.
More about InterContinental Hotels Group
InterContinental Hotels Group is a global hospitality company operating a portfolio of hotel brands across luxury, premium, midscale and lifestyle segments. The group manages, franchises and owns hotels worldwide under brands including InterContinental, Holiday Inn, Crowne Plaza, Six Senses and Kimpton, serving both leisure and business travellers across more than 100 countries.
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