InterContinental Hotels Group
announced a 1.5% increase in revenue per available room (RevPAR) for the third quarter, primarily driven by strong demand in the EMEA region.
However, these results were somewhat offset by sluggish conditions in the U.S. market and ongoing challenges in China, as stated by the company.
The EMEA region stood out with a 4.9% increase in RevPAR, reflecting a rise in business travel and resilient group bookings. Key contributors included Continental Europe and the East Asia & Pacific regions, which saw RevPAR growth of 7.1% and 6.5%, respectively.
In contrast, the Middle East experienced a slight decline of 3.2%, highlighting regional variations in demand.
In the Americas, IHG’s performance was more muted, with RevPAR rising just 1.7%. The U.S. market, where brands like Holiday Inn and Crowne Plaza are well-established, reported a modest 1.2% increase.
While group bookings remained strong, with a 7% increase in related room revenue, leisure travel dipped by 1%, indicating weaker consumer sentiment.
Despite some expansion with new openings across the Americas, growth was modest compared to other regions.
China continues to pose challenges for IHG, with RevPAR down 10.3% year-over-year due to unfavorable comparisons to the previous year’s domestic travel surge. The region also faced disruptions from typhoons and changes in public holidays, further impacting performance.
Despite these challenges this quarter, IHG is optimistic about its long-term prospects, noting that 2024 is poised to be a significant year for new hotel openings and signings in China.
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