Finance
Holiday Inn owner IHG's profit rises, notes easing pressures after US slowdown
Published by Global Banking and Finance Review
Posted on August 7, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 7, 2025
2 min readLast updated: January 22, 2026
IHG reports a profit rise amid easing US economic pressures, boosting shares by 9%. RevPAR fell slightly but outperformed Hilton.
By Raechel Thankam Job
(Reuters) -Holiday Inn owner InterContinental Hotels Group (IHG) reported a jump in first-half profit and pointed to easing economic pressures following a slowdown in U.S. demand, lifting its shares as much as 9% on Thursday.
U.S. President Donald Trump's tariffs and rising geopolitical tensions have rattled the travel and hospitality industry as waning consumer confidence threatens to reverse the post-pandemic recovery.
Amid concerns in the U.S., Marriott lowered its full-year revenue and profit guidance on Tuesday. In contrast, Hilton struck a more optimistic tone, raising its profit forecast for 2025 on the back of a recovery in U.S. travel demand.
"While some shorter-term macroeconomic uncertainties remain, many are subsiding," IHG Chief Executive Elie Maalouf said in a statement, adding that the company remains on track to meet annual profit and earnings expectations.
The shares were up 7% to 9,304 pence at 0812 GMT, topping the FTSE 100 index gainers.
IHG said U.S. revenue per available room (RevPAR) fell 0.9% for the three months ended June 30, compared to 3.5% growth in the first quarter, faring better than peer Hilton in the quarter.
Fundamentals in the U.S. were "pretty good" and supported a positive outlook, Maalouf told analysts in a post-earnings call.
Global RevPAR growth for the second quarter came in at 0.3%, compared to 3.2% growth a year prior, IHG said.
"This is still a strong earnings performance in a tough year for macro and FX for IHG," Bernstein analyst Richard Clarke said in a note.
IHG's operating profit from reportable segments rose 13% to $604 million, beating some analysts' expectations, thanks to cost savings and more fees from loyalty and credit card programs.
Vacation rentals company Airbnb on Wednesday said it expects night bookings growth to moderate year-over-year going into the fourth-quarter.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich, Lincoln Feast and Elaine Hardcastle)
Profit is the financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in maintaining those activities.
RevPAR, or Revenue Per Available Room, is a performance metric in the hospitality industry that calculates the revenue generated per available room, helping assess hotel performance.
Economic growth refers to the increase in the production of goods and services in an economy over a specific period, typically measured by GDP.
Consumer confidence is an economic indicator that measures how optimistic or pessimistic consumers are regarding their expected financial situation and the overall economy.
Explore more articles in the Finance category
