Second-quarter systemwide room revenue generated by business transient travel at IHG Hotels & Resorts increased 1 per cent year-on-year, while revenue from group travel fell by 1 per cent, according to an earnings report on Thursday (7 August).

The company, which owns brands such as Holiday Inn, Crowne Plaza and InterContinental, saw a modest 0.7 per cent increase its average daily rate (ADR) to $131.25 for the quarter compared to the same time last year, while revenue per available room (RevPAR) increased 0.3 per cent year-on-year.

¡°While some shorter-term macroeconomic uncertainties remain, many are subsiding,¡± said IHG CEO Elie Maalouf in a statement, adding that the company remains ¡°confident¡± in achieving its full-year revenue targets.

Across Europe, the Middle East, Asia and Africa (EMEAA), revenue from business travel and groups in increased year-on-year by 2 per cent and 3 per cent, respectively. However, growth slowed compared to the previous quarter, where revenue from business transient travel was up 4 per cent, and group-related travel was up 8 per cent year-on-year.

During an earnings call, Maalouf attributed the slowdown to fewer international events in Europe compared to the previous year ¨C pointing specifically to the Paris Olympics, the UEFA European Football Championship in Germany and Taylor Swift¡¯s concerts in the region. Growth in leisure travel revenue for the region was flat year-on-year, coming in at 3 per cent.

Overall, Q2 RevPaR for the EMEAA region increased 3 per cent to $106.81, while ADR increased 2 per cent to $147.27 and occupancy increased 0.7 percentage points to 72.5 per cent.

Across the Americas, RevPaR for the quarter fell by 0.5 per cent to $102.11, while ADR increased by 0.5 per cent to $142.35. Occupancy rates fell 0.7 percentage points to 71.7 per cent.

As in EMEAA, growth in business transient revenue in the Americas slowed compared to the previous quarter, up 2 per cent year-on-year compared to 4 per cent in Q1. Revenue from groups, meanwhile, fell 2 per cent year-on-year, compared to a 6 per cent increase in the first quarter.

Maalouf attributed the ¡°inflection¡± in US business and groups revenue to the timing of Easter and ¡°the turbulence that occurred in March and April due to trade tensions, policy, tax questions, financial market drops¡­ that probably created some pause in consumers and businesses¡±.

He added: ¡°We¡¯re past the peak of that turbulence and we¡¯ve seen things subsiding and creating more certainty since then. There¡¯s more certainty on trade, more certainty on tax, financial markets are fully recovered, the job market is still strong, corporate investments are strong¡­ so we think the outlook is more constructive going forward.¡± ?

H1 results

Global RevPAR for the group grew 1.8 per cent to $84.75 in the year¡¯s first half, following a ¡°record¡± number of hotel openings and the group¡¯s acquisition of Munich-based Ruby Hotels in February. Global ADR for the period was up 1.4 per cent to $128.21 and global occupancy increased 0.3 per cent points to 66.1 per cent.

Overall revenue increased 6 per cent year-on-year to $1.17 billion, and the company saw a 13 per cent increase in operating profit to $604 million.

IHG¡¯s portfolio currently includes 6,760 hotels (equating to 999,000 rooms), including 207 hotels opened during the first six months of 2025. As of 30 June, there are an additional 2,276 hotels in the pipeline, which equates to 338,000 rooms.