IHG reports 1.8% RevPAR gain for first half 2025

LONDON — IHG Hotels & Resorts' global RevPAR was up 1.8% in the first half of 2025 and rooms revenue growth was positive across all stay occasions (leisure, business and groups) as part of its second quarter earnings report.

Net system growth also grew +5.4% year-over-year (adjusting for the impact of removing rooms previously affiliated with The Venetian Resort Las Vegas) with a record number of hotels opened in the half. IHG signed 51,200 rooms and 324 hotels into its pipeline in the first half and opened 31,400 rooms and 207 hotels in the first half, which is up 75% YOY.

The company sat at 999,647 open rooms at the end of the first half (and has since surpassed the one million open-room mark). Its global pipeline stands at 338,383 rooms and 2,276 hotels.

In the second quarter, systemwide room revenue generated by business transient travel increased 1% year-on-year (YOY), while revenue from group travel fell by 1%.

IHG saw a modest 0.7% YOY increase its ADR to $131.25 for the second quarter, while RevPAR increased 0.3% YOY.

Across the Americas, RevPaR for the 2Q25 fell by 0.5% to $102.11, while ADR increased by 0.5% to $142.35. Occupancy rates fell 0.7 percentage points to 71.7%. 

Across Europe, the Middle East, Asia and Africa (EMEAA), revenue from business travel and groups in increased year-on-year by 2% and 3%, respectively. However, growth slowed compared to the previous quarter, where revenue from business transient travel was up 4% and group-related travel was up 8% year-on-year.

Overall, 2Q25 RevPaR for the EMEAA region increased 3% to $106.81, while ADR increased 2% to $147.27 and occupancy increased 0.7 percentage points to 72.5%.

“Our momentum continued in the first half of 2025, with further achievements in accelerating the growth of our brands, expanding in key geographies, strengthening hotel owner returns, driving ancillary fee streams, delivering cost efficiencies, and returning surplus capital to shareholders,” said IHG Hotels & Resorts CEO Elie Maalouf. “We remain on track to meet full year consensus profit and earnings expectations. While some shorter-term macroeconomic uncertainties remain, many are subsiding, and we are confident in the ongoing successful delivery of our growth algorithm.”

RevPAR in the Americas rose 1.4%, with EMEAA RevPAR rising 4.1% while Greater China RevPAR declined 3.2% in the first half.

Revenue for IHG rose to $1.175 billion in the first half (+6% YOY) with fees rising to $908 million (+7% YOY) and operating profit rising to $604 million (+13%).

Other first-half highlights

• Fee margin was 64.7%, up +3.9% YOY, driven by positive operating leverage and step-ups in ancillary fee streams
• Adjusted EPS was $242.5, up +19% YOY
• Net cash from operating activities of $312 million ( up from $162 million in 2024 and adjusted free cash flow of $302 million (up from $131 million in 2024), with the increase partly due to the prior year’s higher spend
• Net debt increase of $579 million in the first half, driven by $605 million of shareholder returns through dividend payments and share buybacks
• IHG had a trailing 12-month adjusted EBITDA of $1.259 billion, which was up +10% YOY
• The company has completed 47% of its $900 million share buyback program for 2025