InterContinental Hotels maintained its growth momentum through the first half of 2025, despite experiencing a softer performance at its hotels in the USA and in China.
Revenues in Q2 were up 6% year on year at USD1,175 million, while operating profit was up 13%. Improvements in ancillary income streams meant the group’s fee margin improved 3.9 points, to 64.7%.
Regional markets weaker
In the USA, the second quarter turned negative with revpar declining 0.9%. Softer business and leisure demand was noted, along with a negative impact from the timing of Easter.
IHG has spent many years growing a strong presence in China, even launching a China-oriented hotel brand. But right now, the country is showing weaker demand. First quarter revpar was down 3.5%, moderating to 3% down in the second quarter. The company remains committed to the region, noting: “We remain encouraged by the breadth and strength of the region’s economic growth, and the attractive long-term secular demand drivers, which continue to fuel record levels of hotel development
activity for IHG.”
Strongest regional performers were East Asia and the Pacific, where revpar was up 5.6%, continental Europe up 5.1%, and the Middle East where revpar improved 5%. One evident trend was increased outbound travel from China, which both dampened domestic demand while boosting bookings in other parts of Asia.
IHG continues to push for growth, and recently celebrated opening its millionth hotel room. It achieved net system growth of 5.4% by the end of June 2025, after accounting for the loss of an affiliation with the massive Venetian Las Vegas hotel. During the first half of 2025, the company opened a record 207 hotels, adding over 31,000 rooms.
Looking ahead, growth is set to continue strongly, as IHG signed over 51,000 rooms to its pipeline during the first half. That now stands at 2,276 hotels with 338,000 rooms – a pipeline that is more than a third the size of the current opened portfolio.
CEO Elie Maalouf expressed confidence, noting: “We remain on track to meet full year consensus profit and earnings expectations. While some shorter term macroeconomic uncertainties remain, many are subsiding, and we are confident in the ongoing successful delivery of our growth algorithm, driven by the strength of IHG’s enterprise platform and our ability to further capitalise on our scale, leading positions and the attractive long-term demand drivers for our markets.”
Brands expand into new markets
Recent signings for the group include Garner Kutch in Gujarat, the third hotel in India for the Garner brand. And in Oman, Voco Muscat Al Mouj has been signed, the first for the brand in the emirate. The 251 room hotel will open in late 2025.
Also during July 2025, IHG opened Voco The Club – Dublin Gateway, its first for the brand in the Republic of Ireland. And there was the signing of the first Kimpton hotel in Indonesia, with Kimpton Bali Ubud due to open in early 2026.
