Published by Global Banking & Finance Review®
Posted on February 17, 2026
2 min readLast updated: February 17, 2026
Add as preferred source on GoogleIHG's Q4 room revenue grew by 1.6%, exceeding expectations due to strong performance in Europe, Middle East, and Asia Pacific, despite US market weakness.
By Raechel Thankam Job and Yadarisa Shabong
Feb 17 (Reuters) - InterContinental Hotels Group is banking on the soccer World Cup to revive U.S. travel in 2026 after a third straight quarterly drop in room revenues there, though European and Asian demand helped it beat fourth-quarter expectations overall.
Leisure travel trends have softened in the U.S., the Holiday Inn owner said on Tuesday, as cost-conscious consumers rein in spending amid rising prices and tariff uncertainty.
U.S. revenue per available room (RevPAR) fell 2% in the three months to the end of December, underperforming rivals Hilton and Marriott.
"As we look into 2026, while it's very early days, the RevPAR so far has been positive. We would expect the U.S. in the first quarter to be positive," Chief Executive Elie Maalouf told Reuters.
IHG launched a new $950 million share buyback programme for 2026 and proposed a 10% dividend increase.
"We expect shares to be up today, given the solid print and a buyback that was stronger than the Street anticipated," said JPMorgan analysts, adding that IHG remained their top sector pick for fiscal 2026 given easier U.S. comparatives and expected World Cup demand.
Shares of the FTSE 100 group hit a record high of 150.9 pence in early trading, before paring gains to stand marginally higher at 0908 GMT.
WORLD CUP SET TO DRIVE DEMAND
Tourism Economics estimates the World Cup, which the U.S. will host in June and July with Mexico and Canada, will attract more than a million visitors to North America.
Maalouf said that should provide a significant uplift thanks to IHG's footprint in host cities.
Fourth-quarter global room revenue rose 1.6%, ahead of forecasts of 1.5%, helped by Greater China's return to growth and a 7.1% jump across Europe, the Middle East, Africa and Asia.
Greater China - which includes Hong Kong, Macau and Taiwan - posted RevPAR growth of 1.1% after most of 2025 was marked by declines, as leisure demand improved.
IHG's 2025 operating profit from reportable segments rose 13% to $1.27 billion, close to analyst expectations of $1.26 billion.
(Reporting by Raechel Thankam Job in Bengaluru. Editing by Bernadette Baum and Mark Potter)
Room revenue refers to the income generated from renting out hotel rooms. It is a key performance metric for the hospitality industry, reflecting the financial success of a hotel or hotel chain.
Revenue per available room (RevPAR) is a performance metric used in the hospitality industry. It is calculated by dividing total room revenue by the number of available rooms, indicating how well a hotel is generating revenue.
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