Holiday Inn owner IHG beats revenue estimates on resilient US travellers
IHG•IHG reported third-quarter revenue per available room growth of 5.3%, above the 4.4% forecast, as travel by affluent Americans offset weakness in China and Gulf countries. The hotel group expects adjusted interest costs to rise by $40 million to $60 million in 2027.
1. Room revenue beats forecasts
IHG said third-quarter revenue per available room rose 5.3%, exceeding the 4.4% company-compiled consensus. CEO Elie Maalouf said the company was confident of meeting market expectations this year and of its fourth-quarter performance.
2. Regional and cost concerns
RevPAR was flat in the Middle East, as demand in countries including Egypt and Turkey offset a 12% decline in the Gulf Cooperation Council region. IHG expects adjusted interest expenses to increase by $40 million to $60 million in 2027. Maalouf said Saudi Arabian projects could be delayed, but he was not aware of any cancellations.
