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InterContinental Hotels Group, the owner of Holiday Inn, Crowne Plaza and InterContinental, has reported a 5.3 percent rise in revenue per available room in the third quarter, as demand for hotel rooms continued to grow across most of its markets. Global revenue per available room, a key measure of hotel performance, rose 5.3 percent, with the Americas up 6.8 percent, Europe, the Middle East, Africa and Asia up 5.0 percent, and Greater China down 3.3 percent. Average daily rates rose 3.9 percent and occupancy improved by 0.9 percentage points.
In the UK, revenue per available room rose 2.8 percent, while continental Europe grew 3.8 percent and East Asia and the Pacific rose 8.4 percent. The group's rooms revenue grew across all segments, with group bookings up 10 percent, leisure up 5 percent and business travel up 4 percent. The figures show that demand for hotel rooms remains strong, with both leisure travellers and business guests willing to pay higher rates for rooms.
IHG continued to expand its estate in the quarter, opening 92 hotels with 12,900 rooms, taking the total opened in the first nine months of the year to 289 hotels with 44,400 rooms. The group now operates 7,186 hotels with 1,060,000 rooms, and its system grew by 4.9 percent on a net basis. Its pipeline of hotels under development stands at 2,426 hotels with 353,000 rooms, giving it a strong base for future growth as new hotels open in the coming years.
The company also returned cash to shareholders, completing $707 million of its $950 million share buyback programme by 21 October, with total returns in 2026 now above $1.2 billion. IHG said it was confident of meeting market expectations for the full year, with adjusted earnings per share expected to be around the top end of its guided range of 12 to 15 percent growth.
For the hotel industry, IHG's results show that the recovery in travel continues, with room rates and occupancy both rising. The group has benefited from its scale and from its focus on midscale and upscale hotels, which appeal to a wide range of travellers. With its pipeline of new hotels and its strong cash generation, IHG is well placed to keep growing, although it will be watching demand in China, where trading remains softer than in other markets.
Source: ADVFN
