Published by Global Banking & Finance Review®
Posted on May 8, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleIHG reports 3.5% growth in US room revenue, driven by domestic demand, outpacing rivals. Analysts expect $1.32 billion in core earnings for 2025.
(This May 8 story has been corrected to remove the extraneous word 'pounds' in paragraph 11)
By Raechel Thankam Job
(Reuters) - Holiday Inn owner InterContinental Hotels Group said on Thursday it is on track to meet analysts' profit expectations after reporting growth in U.S. room revenues that outpaced rivals. The United States is IHG's largest market, which faces heightened recession risks due to a global trade war sparked by President Donald Trump's tariffs, prompting IHG's peers Marriott and Hilton to cut their full-year guidance.
IHG reported 3.5% growth in U.S. room revenue for the three months ended March 31 on Thursday, compared with a 1.9% fall last year. Its growth outpaced Hilton's performance in the region as well as Marriott's combined growth in U.S and Canada. IHG said its on-the-books global revenue growth had continued into the second quarter, while noting some softening of forward economic indicators. The group, known for its budget-friendly Holiday Inn and Avid Hotel brands, is banking on U.S. domestic demand to support growth as international travel to the U.S. cools. A rebound in the U.S. market has helped it counter sluggish demand in China. However, the hotel operator expects fiscal 2025 revenue per available room (RevPAR) to come a little below analysts' consensus of 2.3%, chief financial officer Michael Glover said in a call with analysts. "IHG is a largely mid-market franchise hotel business, and we expect it would be resilient in an economic slowdown" Peel Hunt analysts said in a note, adding that they believe its shares are undervalued.
As of Wednesday's close, IHG's shares have slumped 13.5% in 2025, compared to Hilton's 2.2% dip and Marriott's 8.2% drop. Shares in the London-listed company were up 2.3% at 8,808 pence at 1352 London time. Analysts expect IHG to report core earnings of $1.32 billion for the fiscal year 2025 according to a company compiled poll.
In 2024, the company reported $1.19 billion in core earnings.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sumana Nandy and Elaine Hardcastle)
The article discusses IHG's anticipated profit growth driven by strong US domestic demand.
IHG's US room revenue growth outpaced Hilton and Marriott.
Analysts expect IHG to report $1.32 billion in core earnings for 2025.
Explore more articles in the Finance category
