IHG, the United Kingdom-based hotel operator that operates brands including Holiday Inn, Holiday Inn Express, Crowne Plaza, and Six Senses, announced increased profitability for the first half of the year despite headwinds from regional conflict. Operating profits from reportable segments reached $665 million, representing a 10% increase compared to the prior-year period. Revenue from reportable segments totaled $1.3 billion, up 7% year-over-year, while global revenue per available room climbed 4.1%.
The company experienced notable momentum in the first quarter with revenue per available room growing 4.4%, though expansion decelerated to 3.5% in the second quarter as the U.S.-Iran conflict and resulting travel disruptions in the Middle East region took hold. IHG’s share price declined nearly 1.9% following the announcement. The Middle East region represents approximately 5% of IHG’s overall business.
The company attributed strong results to continued travel demand driven by expanding middle-class populations globally seeking experience-based spending rather than goods purchases. Chief Executive Elie Maalouf highlighted the U.S. market as particularly robust, noting strong employment levels, wage growth, and consumer spending on experiences. Growth in the United States, Asia Pacific, and Europe proved sufficient to offset the Middle East disruptions. Recent sports events, including the World Cup beginning mid-June, contributed to increased hotel demand in the U.S., with Maalouf characterizing the company’s commercial performance during the tournament as successful.
Maalouf indicated the company’s geographic diversification strategy enabled it to mitigate regional disruptions through strength in other markets. He anticipated that entertainment events including sports competitions, concerts, and theater performances would continue sustaining the company’s growth trajectory in the coming months.
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