International hotel chain IHG announced financial results showing resilience across its portfolio of brands including Holiday Inn, Holiday Inn Express, Crowne Plaza, and Six Senses. Operating profits from reportable segments expanded 10% in the first half of the year to $665 million, while revenue from reportable segments increased 7% to $1.3 billion. The company’s global revenue per available room metric rose 4.1% compared to the prior-year period.
Growth showed signs of deceleration as the year progressed. RevPAR expansion reached 4.4% in the first quarter but slowed to 3.5% in the second quarter, reflecting disruptions tied to regional conflict. The Middle East region, representing approximately 5% of the company’s total business, experienced reduced travel demand and booking activity. Despite these headwinds, accelerated growth in the U.S., Asia Pacific, and Europe helped counterbalance the regional downturn.
Company leadership attributed demand strength to demographic and economic trends. CEO Elie Maalouf stated that consumers, particularly those experiencing rising wealth and improving financial circumstances, were prioritizing spending on experiences rather than goods. The U.S. market demonstrated particularly strong performance, supported by high employment levels, wage growth, and continued consumer spending on travel and hospitality experiences. The World Cup generated additional demand and was characterized as commercially successful for the company.
Looking ahead, Maalouf indicated that major cultural and sporting events would continue supporting business momentum. The company emphasized its diversified geographic footprint as a stabilizing factor during periods of regional disruption. IHG shares traded down approximately 1.9% following the announcement. The company noted robust demand for its expanding portfolio of new properties, especially among affluent travelers.
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