In brief
IHG Hotels & Resorts displays remarkable performance at the end of the first half of its 2026 financial year. The international hotel operator’s business confirms the strength of its operational momentum and the strategic relevance of its business model focused on brand management and franchising on a global scale.
- IHG’s operating profit reached $665 million in the first half of 2026, up +10%.
- The group recorded a record opening of 197 hotels (31,500 rooms), taking its global network to 7,109 establishments.
Global revenue per available room (RevPAR) grows by +4.1%, driven
The commercial performance of the group’s properties reflects very favourable momentum across most key geographic markets, driven both by higher rates and recovering occupancy rates.
- Global revenue per available room (RevPAR) grew by +4.1%, driven by the Americas (+4.8%) and Greater China (+3.1%).
- IHG is on track to return more than $1.2 billion to shareholders across the full year 2026.
IHG Hotels & Resorts unveils very solid half-year results for the six
The first six months of 2026 reflect the group’s ability to generate increased profitability while pursuing a sustained expansion of its global hotel portfolio across more than 100 countries.
Exceptional financial results
IHG Hotels & Resorts unveils very solid half-year results for the first six months of 2026. Driven by strong demand across its key segments and a resilient business model based on brand management and franchising, the group recorded a +10% increase in operating profit from reportable segments, reaching $665 million.
This financial performance reflects the group’s ability to capitalise on the global recovery in leisure and corporate demand. By anchoring its growth on a capital-light (asset-light) structure, the company transforms increased hotel attendance into recurring, predictable cash flows. The model relies on collecting fee revenues calculated on the turnover and profitability of branded properties, insulating the group from direct operating costs associated with real estate ownership.
Solid financial performance driven by fee margin
The international hotel group demonstrates the power of its global platform with global revenue per available room (RevPAR) growing by +4.1%. This favourable trajectory relies on both an increase in average daily rate (+2.5%) and a 1.0 percentage point gain in occupancy rate over the first six months of the 2026 financial year. Total revenue reached $2.66 billion under IFRS standards, up +6%.
The hotel industry’s key metric, RevPAR, reflects the optimal combination of upward room rate pricing power adjustment and strengthened occupancy. IHG’s technological revenue management tools and centralised reservation systems have maximised room yield. The increase in total IFRS revenue thus reflects the strength of the financial flows generated by the entire network worldwide.
The brand management and franchise business model
IHG’s operating structure relies almost exclusively on franchise and hotel management agreements signed with independent owners or institutional investors. This strategic positioning offers great operational flexibility and enables the rapid deployment of new brands in emerging or mature markets without committing heavy real estate capital.
In this framework, owners fund the capital required for constructing, renovating, and maintaining assets, while IHG provides the reputation of its brands, its loyalty programme, digital distribution channels, and operational expertise. This synergy ensures a rapid ramp-up of new establishments while securing the hotel operator’s profitability.
Rigorous cost management
Thanks to strict cost base control, fee and franchise revenues grew by +7% to $971 million. The fee margin reached a record level of 65.9%, representing an expansion of 1.2 percentage points compared to the same period in 2025. Adjusted basic earnings per share (EPS) grew by +13% to 274.7 cents, confirming the group’s operational efficiency.
The increase in fee margin demonstrates the group’s strong operational leverage: growth in fee revenues outpaces the growth rate of central costs. This financial discipline is accompanied by rigorous management of central expenditure and continuous optimisation of shared service platforms. The double-digit growth in adjusted earnings per share illustrates direct value creation for investors.
Unprecedented network expansion in luxury and lifestyle
Network development reached historic highs for a first half. IHG opened 197 hotels totaling 31,500 rooms, representing a +8% increase on an organic basis excluding acquisitions. This opening momentum brings the group’s global portfolio to 7,109 operating properties, representing a system of over 1.049 million rooms across more than 100 countries.
This pace of openings reflects the continued appeal of IHG’s brand portfolio to hotel investors. The group’s ability to rapidly integrate new establishments into its global distribution network allows owners to maximise the visibility of their hotels from day one of opening.
A rapidly expanding network
Commercial activity remains particularly strong, with 352 new contracts signed during the first six months (49,200 rooms), up +8% on an organic basis. The global pipeline now stands at 2,385 hotel projects, representing 348,000 rooms, which accounts for around 33% of the network’s current size. Growth is particularly strong within the Luxury & Lifestyle division, which includes Six Senses, Regent, InterContinental, Vignette Collection, Kimpton, and Hotel Indigo.
The pipeline of current projects represents a growth reservoir of considerable scale for the future. With one third of the current system under development, the group secures a sustainable growth driver over the medium and long term. The momentum in signings shows that owners continue to trust the group’s commercialisation capabilities for their future investment projects.
Strategic anchoring of the Luxury & Lifestyle division
Positioning in the luxury and lifestyle segments represents a vital engine in IHG’s upper-tier strategy. This strategic division brings together complementary renowned brands: Six Senses focused on wellness and sustainable luxury, Regent on historic ultra-luxury, InterContinental as an iconic brand of international luxury, Vignette Collection for conversion of independent boutique hotels, Kimpton as a pioneer of boutique luxury hospitality, and Hotel Indigo rooted in exceptional urban neighbourhoods.
These exceptional brands generate high room rate revenues and benefit from strong demand from discerning international clientele. For the group, expanding these brands strengthens overall profitability per property while enhancing the perceived value of its entire portfolio.
The group’s geographic performance in the second quarter
The geographic diversity of IHG’s footprint has helped absorb regional disparities and geopolitical headwinds. The Americas region recorded the strongest RevPAR increase at +4.8%, driven by a clear acceleration in business and leisure travel in the United States during the second quarter. Greater China maintained positive growth of +3.1%, confirming the ongoing recovery of domestic flows.
The US market benefits from a solid recovery in group business travel, conventions, and domestic tourism. In Greater China, the steady rise in domestic travel volume supports hotel performance across all price segments, validating the relevance of ongoing investments made by the group in this strategic zone.
Proven geographic resilience
In the EMEAA region (Europe, Middle East, Africa and Asia Pacific), RevPAR increased by +3.0%. The strength of European and Asian demand offset targeted disruptions in the Middle East, demonstrating the group’s great resilience in the face of local sector or geopolitical variations.
IHG’s balanced presence across multiple geographic regions acts as a business stabiliser. The strength of the tourist season across several major European capitals and Asian holiday destinations offset the impact of a more uncertain background in certain local markets, thus ensuring the consistency of the group’s overall results.
Return of capital to shareholders and 2026 outlook
Backed by adjusted free cash flow of $360 million (compared to $302 million in 2025), IHG reaffirms its shareholder return policy. The interim dividend per share is increased by +10% to 64.5 cents per share. At the same time, the $950 million share buyback programme planned for 2026 is already 42% executed as of 30 June 2026.
In total, IHG confirms it is on track to return more than $1.2 billion to investors during 2026, representing approximately 5.8% of its market capitalisation at the start of the year. Management reiterates its full support for full-year market expectations and its confidence in its ability to deliver its long-term growth strategy.
Strong free cash flow generation gives the group the financial flexibility required to pursue strategic investments in technology systems and network growth, while delivering very attractive capital returns to all shareholders.
