InterContinental Hotels Group (IHG) saw a 0.3% increase in revenue per available room (revPAR) in the second quarter, driven by growth in Europe, Middle East, Africa, and Asia. Total unit growth remained strong at 4.6%. The company expects a 5% revPAR growth for 2026 and strong brand loyalty with 145 million members.

InterContinental is optimistic about demand in the latter half of the year, citing decreased policy uncertainty in the US. Loyalty has increased by 22% to 145 million members, with engagement rising to 65%. The company plans to achieve 4% average annual unit growth through 2028.

Despite recent challenges in the US hotel industry, InterContinental remains confident in its strong brand and growth potential. The company predicts average annual revPAR and unit growth of 3.4% and 3.2% respectively for 2025-34, above industry averages. Fee margin expansion and EBITDA growth are on track for 2025.

InterContinental’s fee margin expanded by 390 basis points to 64.7% in the first half, driven by ancillary revenue and operating leverage. Co-branded credit card transactions contributed to fee margin improvement. EBITDA margins are expected to increase to 29% in 2029 from 26% in 2025.

Read more at Morningstar: US Demand Softening but Should Improve in 2026