Credit: Raphael Henrique via Adobe Stock
IHG Hotels & Resorts' systemwide business transient room
revenue rose 2 per cent year over year during the first half of 2026, driven
entirely by a 2 per cent gain in average daily rate, the company reported
Tuesday.
In the Americas region, business transient room revenue rose
3 per cent year over year during the first half of 2026, again led entirely by
rate growth of 3 per cent.
IHG CEO Elie Maalouf said business travel in the United
States, IHG's largest market, is being bolstered by "significant levels of
private investment" going into the U.S. economy and building projects
centered around AI, energy, manufacturing, microchip production and
pharmaceuticals.
"All of that really creates an environment where we see
business demand continuing to be strong as we go forward in the U.S.,"
Maalouf said.
First-half systemwide group room revenue rose 6 per cent
year over year, fueled by a 4 per cent increase in ADR and a 2 per cent rise in
room nights. Americas group room revenue grew 10 per cent year over year, with
a 6 per cent gain in ADR and a 4 per cent bump in room nights.
IHG Q2 Metrics
Systemwide second-quarter RevPAR increased 3.5 per cent year
over year to $94.17, driven by a 3 per cent rise in ADR to $135.25 and a rise
of 0.3 percentage points in occupancy to 69.6 per cent.
In the Americas, second-quarter RevPAR rose 5.4 per cent
year over year to $107.18. ADR increased 4.2 per cent to $148.14, while
occupancy rose 0.8 percentage points to 72.4 per cent.
Across Europe, Middle East and Africa, second-quarter RevPAR
ticked up 0.6 per cent year over year to $109.06. ADR rose 1.6 per cent to
$152.42 and occupancy fell 0.6 percentage points to 71.6 per cent.
"Even in a period when there were geopolitical
challenges in a sub-region like the Middle East, which represents 5 per cent of
our global inventory, the other 95 per cent performed very well against a favourable
macro backdrop, underpinning demand for travel," Maalouf said.
In Greater China, second-quarter RevPAR increased 0.8 per
cent year over year to $40.25. ADR inched up 0.2 per cent to $67.16 and
occupancy rose 0.4 percentage points to 59.9 per cent.
IHG's first-half revenue from reportable segments increased
6.8 per cent year over year to $1.3 billion.
By the end of the second quarter, the company's global
portfolio totaled 7,100 hotels, or more than 1 million rooms. Its pipeline as
of June 30 totaled 2,385 hotels, or 348,000 rooms, up 3 per cent year over
year.
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Q1 performance