InterContinental Hotels Group is betting on a World Cup-driven recovery in US travel in 2026 after reporting a third quarterly decline there today, though European and Asian demand helped it beat fourth-quarter room revenue expectations.
Leisure travel trends have softened in the US, said the group, which owns the Holiday Inn brand, as cost‑conscious consumers rein in spending amid a challenging economic backdrop. That led to a third quarterly decline in a row in US revenue per available room (RevPAR) for IHG.
The hotel operator's US RevPAR fell 2% in the quarter, underperforming rivals Hilton and Marriott.
The group launched a new $950m share buyback programme for 2026 and proposed a 10% increase in its annual dividend.
"Looking ahead to 2026, less turbulent trading conditions in the U.S. and stronger demand are expected for the industry," chief executive Elie Maalouf said in a statement, citing the upcoming FIFA World Cup as a catalyst that could help reverse soft US inbound travel.
The FIFA World Cup, which the US will host in 2026, is expected to attract between 1 million and 6 million foreign visitors, driving additional demand for IHG, particularly from the second quarter of 2026.
IHG's fourth-quarter global room revenue grew 1.6%, beating expectations of 1.5% despite US weakness, driven by Greater China's return to growth and a 7.1% jump in Europe, Middle East, Africa and Asia markets on business, leisure and group demand.
Greater China - which for IHG includes Hong Kong, Macau and Taiwan - was its third-largest region, and recorded RevPAR growth of 1.1% in the quarter through December, after declining for most of 2025, as leisure demand improved and the region showed signs of recovery.
IHG's 2025 operating profit from reportable segments rose 13% to $1.27 billion, close to analyst expectations for $1.26 billion, according to a company-compiled poll.
