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Highlights:
- Global RevPAR for IHG (LSE:IHG) increased by 1.5% in Q3, with strong performance in the Americas and EMEA.
- RevPAR in China dropped by 10.3%, attributed to strong comparatives from the prior year.
- IHG opened 17,500 rooms and signed agreements for 19,200 more, growing its pipeline by 12% year-on-year.
Intercontinental Hotels Group PLC (LSE:IHG) has reported a steady rise in its global revenue per available room (RevPAR) for the third quarter, even as it faces ongoing challenges in the Chinese market. The owner of Holiday Inn and other global hotel brands saw global RevPAR grow by 1.5% during the period, with key regions such as the Americas and Europe showing strong performance.
RevPAR in the Americas increased by 1.7%, while Europe, the Middle East, and Africa (EMEA) saw a 4.9% rise. This growth helped to offset a sharp 10.3% drop in RevPAR in China, which the company attributed to an unusually strong comparison period in the prior year when domestic travel surged.
In addition to RevPAR growth, IHG opened 17,500 rooms across 98 hotels during the quarter, demonstrating strong development activity. The company also signed agreements for 19,200 more rooms, bringing its pipeline up by 12% year-on-year, further enhancing its global presence.
Chief executive Elie Maalouf expressed satisfaction with the company's trading performance and development efforts. He highlighted that IHG remains on track to meet its full-year targets, citing significant progress in its ongoing share buyback program. As of the third quarter, $614 million of the $800 million buyback program had been completed, keeping the company on course to return $1 billion to shareholders over the year.
Looking at the year-to-date figures, IHG reported a 2.4% increase in global RevPAR, while occupancy rates improved slightly by 0.4%. Despite pressure in China, the overall positive trends in key markets and ongoing development suggest a stable performance for the group.
IHG continues to focus on expanding its global footprint, growing its room pipeline, and enhancing shareholder returns. As the hotel group looks ahead, the diversification across different regions appears to be mitigating regional fluctuations, positioning the company for sustained growth.
