IHG Hotels & Resorts delivered strong financial and operational performance during the first half of 2026, reporting higher revenue, double-digit operating profit growth and record hotel development activity as travel demand remained resilient across most global markets.
The hotel group said strong trading, expanding margins and continued global hotel openings supported a 13% increase in adjusted earnings per share while maintaining confidence in its full-year outlook.
Revenue and Profit Continue to Grow
Revenue from IHG’s reportable segments increased 7% to $1.26 billion, while operating profit rose 10% to $665 million.
Revenue from the company’s fee business reached $971 million, also up 7%, with fee margins improving to 65.9%, reflecting revenue growth that outpaced operating costs.
Adjusted earnings per share climbed 13% to 274.7 cents, supported by higher profitability and continued share buybacks.
Across its hotel portfolio, global RevPAR (Revenue per Available Room) increased 4.1% during the first six months of the year, driven by a combination of higher room rates and improved occupancy.
The Americas delivered RevPAR growth of 4.8%, while Europe, the Middle East, Asia and Africa (EMEAA) increased 3.0% and Greater China grew 3.1%.
Record Hotel Development Activity
IHG recorded its strongest-ever first half for hotel development.
The company opened 197 hotels, adding more than 31,500 rooms, representing an 8% increase on an organic basis compared with the same period last year.
Hotel signings also reached record levels, with 352 hotels and more than 49,000 rooms added to the development pipeline.
IHG’s global estate now includes 7,109 hotels with approximately 1.05 million rooms, while its development pipeline has expanded to 2,385 hotels, representing around one-third of its existing global system.
Strong Cash Generation Supports Shareholder Returns
Operating cash flow increased to $355 million, while adjusted free cash flow rose to $360 million during the first half.
IHG remains on track to return more than $1.2 billion to shareholders during 2026 through dividends and share buybacks.
The company has already completed 42% of its planned $950 million share repurchase programme and increased its interim dividend by 10% to 64.5 cents per share.
IHG Maintains Positive Outlook
IHG Chief Executive Officer Elie Maalouf said the company’s diversified global portfolio continued to deliver resilient performance despite geopolitical challenges affecting some international travel markets.
“Our diverse global footprint and better-than-expected demand in most markets around the world delivered strong RevPAR growth of +4.1% in the first six months of 2026.”
He added that record hotel openings and signings demonstrate the strength of IHG’s long-term growth strategy.
“We had record levels of development activity with almost 200 hotel openings in the first half. This drove net system growth of 5% and expanded our global estate to 7,100 hotels.”
While acknowledging continued disruption caused by tensions in the Middle East, Maalouf said stronger demand in other regions is expected to offset those impacts.
“We remain on track to meet full year consensus profit and earnings expectations. We are also confident in the successful delivery of our growth algorithm, driven by the strength of IHG’s enterprise platform and our ability to further capitalise on our scale and leading market positions.”
