Investing.com — InterContinental Hotels Group (LON:) reported a 1.5% rise in revenue per available room (RevPAR) for the third quarter, driven largely by strong demand across the EMEA region.
However, the results were tempered by sluggish conditions in the U.S. market and continued challenges in China, the company said in a statement.
The EMEA region emerged as a bright spot, posting a 4.9% increase in RevPAR during the quarter. This growth reflects rising business travel and group bookings, which remain resilient across the region.
Key contributors included Continental Europe and the East Asia & Pacific sub-regions, where RevPAR growth reached 7.1% and 6.5% respectively.
In contrast, performance in the Middle East declined slightly by 3.2%, showing some regional variability in demand.
In the Americas, IHG’s performance was more subdued, with RevPAR increasing just 1.7%. The U.S. market—where the company’s Holiday Inn and Crowne Plaza brands are staples—showed weaker momentum, reporting only a 1.2% rise.
Group bookings remained a source of strength, with group-related room revenue growing 7%, but leisure travel seeing a slight 1% decline, reflecting weaker consumer sentiment.
While there was some expansion across the Americas with new openings, growth remained modest compared to other regions.
China remains a challenging market for IHG, with RevPAR down 10.3% year-over-year, impacted by unfavorable comparisons to the same period last year, when domestic travel surged.
The region also experienced disruptions from typhoons and shifts in public holidays, exacerbating the downturn.
Despite this quarter’s setbacks, IHG remains optimistic about long-term prospects, noting that 2024 is on track to be one of the company’s biggest years for new hotel openings and signings in China.
