IHG reports unexpected 0.1% global RevPAR growth in Q3 2025, driven by Europe, Middle East

GLOBAL – InterContinental Hotels Group (IHG) has reported a slight 0.1% increase in global revenue per available room (RevPAR) for the third quarter ending September 30, 2025.

This marginal rise surpassed analysts’ expectations, who had anticipated a 0.1% global RevPAR decline.

The growth was mainly driven by strong performances across Europe and the Middle East, which compensated for a weak U.S. showing where RevPAR fell 1.6%.

The Americas experienced a 0.9% RevPAR decline overall, while Greater China saw a 1.8% drop, although the region showed some sequential improvement.

IHG expanded its hotel portfolio significantly during the quarter, adding 14,500 rooms across 99 hotels globally, a 17% year-over-year increase, contributing to total gross system size growth of 7.2%.

The company’s robust pipeline shows continued momentum with nearly 23,000 rooms signed in the quarter, up 18% year on year.

These expansions, particularly focused in EMEA and China, bolster IHG’s long-term growth strategy.

IHG’s CEO Elie Maalouf expressed confidence in meeting full-year profit and earnings expectations despite ongoing challenges in the U.S. market. Maalouf highlighted solid growth in net system size and expressed optimism about the year ahead.

The U.S. market’s softness is partly attributed to reduced government travel and lower international inbound tourism.

This factor, alongside broader macroeconomic headwinds such as consumer spending constraints due to rising costs, has dampened performance.

IHG expects to finish the year aligned with consensus profit forecasts and remains focused on executing its growth algorithm, aiming for roughly 12% EBIT growth and 15% EPS growth in 2025.

The company recently announced plans to switch its London Stock Exchange trading currency from British pounds to U.S. dollars.

Despite the uneven regional performance, IHG’s steady global RevPAR growth represents resilience amid a challenging travel industry backdrop impacted by trade policy uncertainties and inflation concerns.

InterContinental Hotels Group (IHG) has driven its recent growth by opening 14,500 rooms across 99 hotels in Q3 2025, a 17% year-over-year increase.

The company’s robust pipeline includes nearly 23,000 rooms signed, an 18% rise from last year, with strong focus on conversions and new builds across luxury, lifestyle, and midscale brands.

This strategic expansion boosts the global hotel portfolio, notably in EMEA and Greater China, supporting IHG’s long-term growth and resilience amid challenging markets.

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