InterContinental Hotels Group (IHG) has reported a strong operational performance in the first quarter of 2026, with a global RevPAR increase of 4.4% at constant exchange rates, supported by rate and occupancy growth. RevPAR is a key performance indicator in the hotel industry, measuring revenue per available room, whether occupied or not.
In detail, RevPAR increased by 3.6% in the Americas, including 3.4% in the United States, despite a high comparison base from last year. The EMEAA region (Europe, Middle East, Africa, and Asia) saw a RevPAR growth of 5.6%, although the Middle East experienced a slowdown in March due to regional conflict. In “Greater China,” RevPAR surged by 5.7%, driven by strong leisure demand during Chinese New Year and improved business travel.
IHG also reported a 2% growth in Average Daily Rate (ADR), while occupancy rate increased by 1.5 points year-over-year. These indicators reveal the average price paid for actually sold rooms.
In terms of customer segments, group revenue increased by 7%, business travel revenue by 6%, and leisure revenue by 1%.
IHG opened 14,867 rooms in the first quarter, bringing its global portfolio to over 1.03 million rooms across 7,014 hotels. The hotel portfolio’s gross growth reached 6.6% year-over-year, with net growth at 5%.
The pipeline of signed rooms continued to expand, reaching 21,431 rooms in the quarter, up 6% excluding the acquisition of the Ruby brand for comparison. The development portfolio now comprises 343,189 rooms.
The group remains committed to its active shareholder return policy. Out of the planned $950 million share buyback program for 2026, $240 million has already been executed, enabling the repurchase of 1.7 million shares and reducing the outstanding shares by 1.1%.
“We delivered a very strong performance in the first quarter, benefiting from our diversified geographical footprint and better-than-expected demand in most regions of the world,” commented CEO Elie Maalouf.
For the second quarter, IHG anticipates continued revenue growth, despite ongoing tensions in the Middle East and disruptions in international travel flows. The group reaffirmed its confidence in meeting market expectations for 2026.
Analysts have praised the group’s resilient profile in response to this report. Oddo BHF reaffirmed its “outperform” recommendation on the stock, with an unchanged target price of $158. The research firm believes IHG’s resilient profile, particularly in the American market, where around 50% of its network is located, with a domestic clientele and defensive mid-range positioning. According to Oddo BHF, the valuation remains attractive with a discount of about 15% compared to major American asset-light hotel operators. The broker also expects a favorable outlook for 2026 despite ongoing tensions in the Middle East.
Jefferies reiterated its “buy” recommendation on the stock, with an unchanged target of $160. The broker believes this report reinforces its positive view on the stock, despite a slowdown observed in April due to the conflict in the Middle East and disruptions in international travel flows. The note highlights that the strength of the American market continues to offset some difficulties in EMEAA, while reservations point to improvement in May and June. According to Jefferies, the group remains capable of meeting consensus expectations for the 2026 fiscal year, supported by a favorable growth momentum in the hotel portfolio and reservations.
Finally, at Bank of America (BofA), the buy rating is maintained, with a target price raised from $160 to $166. The analyst describes a group that is now operating “at full speed,” with a particularly strong operational momentum. According to BofA, the sustainable 5% net growth of the hotel portfolio is supported by reduced closures and ongoing openings. The note also points out that IHG’s RevPAR growth surpasses that of Hilton and Marriott, presented as the best performance observed in several years against American hotel groups.
