Half Year 2026 InterContinental Hotels Group PLC Earnings Call( Live Q&A) Transcript
Key Points
- Global RevPAR grew 4.1% with growth across all three regions, underpinned by a diversified geographic footprint and resilient operating model.
- Record development activity with openings and signings both up 8% year-on-year on an organic basis, driving gross system growth of 6.5% and net system growth of 5%.
- Fee margin expanded by 120 basis points, contributing to a 10% increase in EBIT and 13% growth in adjusted earnings per share.
- China delivered strong performance with RevPAR growth of 3.1% in H1, record development activity, and a 25% year-on-year increase in profit, reflecting a gradual recovery and long-term potential.
- The company is leveraging AI across guest acquisition, hotel performance, and corporate efficiency, enhancing owner value proposition and competitive positioning.
- RevPAR growth in China slipped back in Q2 due to a strong Q1 boosted by Chinese New Year and government holidays, with softness in business transient in Tier 2 and Tier 3 cities.
- Fee revenue growth (5.2%) lagged behind the sum of RevPAR growth and system growth due to the lag from newly opened hotels and graduated fee structures, though this is expected to narrow.
- The Middle East conflict has impacted trading, though the company expects a gradual recovery and can offset the impact for the rest of the year.
- There is potential risk from the Revo bankruptcy in Germany, though exposure is minimal with only 6 hotels and 820 rooms.
- The company faces competitive pressures on owner economics, with cost pressures affecting owner profitability, though IHG has proactively reduced costs and improved owner value.
We will now begin the Q&A session, participants online (Operator Instructions)
I would like to remind all participants that this call is being recorded. I will now hand over to Elie Maalouf to introduce the Q&A session.
Questions & Answers
Hello. Thank you, and welcome to this Q&A session. I'm Elie Maalouf, Chief Executive Officer of IHG Hotels & Resorts. Hopefully, you've all had a chance to watch the results presentation, which we made available at 7:00 UK. This time this morning. It featured myself and Michael Glover, our Chief Financial Officer.
We also released the latest episode of IHG Checks In On, featuring Heather Bosley, our Chief Commercial and Marketing Officer; and Joey Fleming, our Chief Product and Technology Officer. The episode provides a closer look at how we are leveraging artificial intelligence to get closer to the guests, transform the search and discovery process and further enhance the
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