IHG Hotels & Resorts' systemwide business transient room revenue rose 4 percent year over year in the third quarter of 2026, driven largely by a 3.9 percent increase in average daily rate, the company reported Thursday.
IHG CEO Elie Maalouf described corporate travel demand as "strong," particularly in the Americas, where business transient room revenue rose 6 percent year over year during the quarter and group business increased 12 percent.
He attributed the growth to US corporate investment in technology, data centers, energy, pharmaceuticals, manufacturing and construction, as well as US government investment in defense.
"There's a general positive sentiment around corporate travel, and we're benefiting from it," he said during Thursday's earnings call.
The company reported a 5.3 percent year-over-year increase in revenue per available room across its global portfolio, with group demand the strongest growth driver, up 10 percent compared with Q3 2025.
Maalouf said that corporate meetings and events account for half of IHG's overall group demand.
IHG CFO Michael Glover added that group business on the books "has been really strong" and remains up in the mid-single digits. "It looks like groups will continue to come in and that's across the board and across all regions," he said.
IHG Q3 metrics
Systemwide third-quarter RevPAR increased 5.3 percent year over year to $97.16, driven by a 3.9 percent rise in average daily rate (ADR) to $134.92 and a 0.9-percentage-point increase in occupancy to 72 percent.
In the Americas, third-quarter RevPAR rose 6.8 percent year over year to $108.36. ADR increased 3.9 percent to $146.64, while occupancy rose 2.1 percentage points to 73.9 percent.
Across Europe, the Middle East and Africa, third-quarter RevPAR rose 5 percent year over year to $153.86. ADR increased 4.1 percent to $153.86, while occupancy rose 0.6 percentage points to 75.5 percent.
RevPAR increased 2.8 percent in the UK and 3.8 percent in Continental Europe. It also rose 8.4 percent in East Asia & Pacific, while the Middle East was "broadly flat" after a 19 percent decline in the previous quarter. The six GCC countries, however, recorded a 12 percent RevPAR decline due to their proximity to the ongoing conflict.
"The Middle East conflict is not at the level of tension that it was back in March or April, but it's not resolved yet," Maalouf said during the earnings call.
"[The region] represents only 5 percent of our business … [and] we're happy that 95 percent of our business is doing very well and making up for it in the near term. We're highly confident that as soon as there's a resolution, the Middle East will go back to its trajectory of growth and success. It bounces back very quickly," he added.
In Greater China, third-quarter RevPAR fell 3.3 percent year over year to $41.73. ADR declined 0.8 percent to $67, while occupancy fell 1.6 percentage points to 62.3 percent.
IHG opened 92 hotels in the third quarter and signed another 164 hotels, representing 21,100 rooms, with development "split broadly evenly" between new builds and conversions, Maalouf said.
At the end of the third quarter, the company's global portfolio comprised 7,186 hotels and more than 1 million rooms. Its pipeline totaled 2,426 hotels, or 353,000 rooms, as of Sept. 30, up 3.2 percent year over year.
RELATED: IHG Q2 performance