Intercontinental Hotels Group Gains Strong Growth Despite Decline In China

The Intercontinental Hotels Group (IHG), owner of renowned brands such as Holiday Inn, Kimpton, and Crowne Plaza, has reported promising first-quarter results for 2025, driven by robust performance across Europe, the Middle East, and the Pacific region. This growth offsets a continued decline in China, showcasing the resilience of the global hospitality market.

The FTSE 100-listed company posted a 3.3 per cent rise in global revenue per available room (RevPAR), a key industry metric, reflecting an improvement over last year’s 3 per cent increase. Across Europe and the Middle East, RevPAR rose by 5.6 per cent and 6.2 per cent respectively, compensating for a challenging Chinese market where figures dipped by 3.5 per cent. Despite this, the East Asia and Pacific region exhibited exceptional performance, with RevPAR climbing by 6.8 per cent, bolstered by growing inbound leisure travel from Greater China.

Much of the Pacific region’s success has been attributed to HBO’s popular series, The White Lotus. Filmed in Thailand, the latest season generated considerable buzz, contributing to increased bookings and search activity for hotels in the area. Although IHG’s Intercontinental Phuket Resort did not feature in the series, management reported an 18 per cent surge in inquiries and bookings from the United States market, highlighting the power of cultural influence on travel trends.

In its largest market, the United States, IHG experienced a 3.5 per cent rebound in RevPAR, recovering from a 1.9 per cent decline in the prior year. While rivals such as Marriott and Hilton softened their outlook due to economic challenges, including the potential impact of President Trump’s tariffs on the industry, IHG remains optimistic. CEO Elie Maalouf expressed confidence in the group’s ability to build on its scale and leadership, maintaining a stable outlook for 2025 irrespective of macroeconomic uncertainty.

IHG also updated shareholders on its financial initiatives, announcing the completion of $324 million of a planned $900 million share buyback programme. Analysts have forecast the group’s core earnings to reach £1.32 billion for the year, a significant rise from £1.19 billion in 2024. Shares closed at £87.70, marking a 1.9 per cent increase, signalling strong investor confidence.

This latest update underscores the adaptability and strategic focus of IHG as it continues to thrive in a fluctuating global market. With positive performance across several key regions and ambitious financial goals, the company is well-positioned for sustainable long-term growth.