Holiday-Inn owner IHG defies industry trend with US growth (May 8)

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(Corrects May 8 story to add dropped word ‘decline’ in paragraph 5 and remove extraneous word ‘pounds’ in paragraph 9; the story was previously corrected to fix the Q4 revPAR growth rate)

(Reuters) -Holiday Inn owner InterContinental Hotels Group said on Thursday it was on track to meet market expectations for annual profit after a rebound in U.S. room revenues.

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 travel companies to caution about stalling demand.

The downturn in travel following a post-pandemic boom has spooked the industry, prompting IHG’s peers Marriott and Hilton to cut their full-year guidance.

IHG, which owns Crowne Plaza and Six Senses, has been investing in international expansion and a rebound in its U.S. market has helped it counter sluggish domestic demand in China.

It reported 3.5% growth in U.S. room revenue for the three months ended March 31, compared with a 1.9% decline during the same period in 2024.

Its global revenue per available room (RevPAR) rose 3.3% in the first quarter, up from last year’s 2.6% growth, but slower than the 4.6% growth it logged in the prior quarter.

IHG reported continued room revenue growth into the second quarter and is banking on demand for domestic stays across its markets though it noted some softening of forward economic indicators.

Shares in the company were up 2.7% at 8,840 pence at 0808 GMT.

   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)