InterContinental Hotels Group (LSE:IHG) delivered higher revenue, profit and earnings in the first half of 2026, supported by RevPAR growth, expanding margins and record hotel development activity across its global portfolio.
Revenue from reportable segments increased 7%, while operating profit rose 10% and adjusted earnings per share advanced 13%. Global revenue per available room, or RevPAR, grew 4.1%, with positive contributions from the Americas and Greater China.
Performance across EMEAA also supported the half-year result despite weaker conditions in the Middle East. Combined with continued cost discipline, the growth helped strengthen profitability and supported higher shareholder distributions.
Development activity reached record levels during the period. IHG opened 31,500 rooms across 197 hotels and signed another 49,200 rooms, taking net system growth to 5%. Its development pipeline expanded to approximately 348,000 rooms, providing further capacity for future expansion.
The group is also progressing with its $950 million share buyback programme and expects to return more than $1.2 billion to shareholders during 2026. Management maintained its expectations for full-year profit and earnings.
Cash generation remained strong, with adjusted free cash flow increasing to $360 million. IHG’s fee-based business model and operating efficiencies helped lift its fee margin to almost 66%, supporting investment in growth alongside shareholder returns.
Net debt nevertheless increased to $3.7 billion, primarily reflecting dividends and share repurchases. The higher debt level, together with negative equity, remains an important balance-sheet consideration despite the strength of underlying cash generation.
Overall operating momentum remains positive, supported by hotel development, free cash flow and continued capital returns. The technical picture is more neutral, while the relatively high P/E valuation and modest dividend yield provide less support from a valuation perspective.
More about InterContinental Hotels Group
InterContinental Hotels Group is a global hospitality business with 21 hotel brands spanning the luxury, premium, essentials and suites segments.
The group has more than one million rooms across approximately 7,100 hotels in more than 100 countries, alongside a development pipeline of around 2,400 properties. It also operates the IHG One Rewards loyalty programme, which has more than 160 million members.
Its portfolio includes brands such as InterContinental, Holiday Inn, Crowne Plaza, Kimpton and Iberostar Beachfront Resorts. Around 400,000 people work across IHG-branded hotels and corporate offices worldwide.
InterContinental Hotels Group PLC is incorporated in England and Wales and has shares listed in London and New York.
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