Second-quarter systemwide room revenue generated by business transient travel at IHG Hotels & Resorts increased 1 percent year over year, while revenue from group travel fell 1 percent, according to an earnings report released Thursday.
Average daily rate at the company, which owns such brands as Holiday Inn, Crowne Plaza and InterContinental, increased 0.7 percent to $131.25 for the quarter compared with the same time last year, while revenue per available room RevPAR increased 0.3 percent.
"While some shorter-term macroeconomic uncertainties remain, many are subsiding," said IHG CEO Elie Maalouf in a statement, adding that the company remains "confident" in achieving its full-year revenue targets.
Across Europe, the Middle East, Asia and Africa, revenue from business travel and groups in increased year over year by 2 percent and 3 percent, respectively. However, growth slowed compared to the previous quarter, where revenue from business transient travel was up 4 percent and group-related travel was up 8 percent year over year.
During an earnings call, Maalouf attributed the slowdown to fewer international events in Europe compared to the previous year—pointing specifically to the Paris Olympics, the UEFA European Football Championship in Germany and Taylor Swift's concerts in the region. Growth in leisure travel revenue for the region was flat year over year, coming in at 3 percent.
Overall, Q2 RevPAR for the EMEAA region increased 3 percent to $106.81, while ADR increased 2 percent to $147.27 and occupancy increased 0.7 percentage points to 72.5 percent.
Across the Americas, RevPAR for the quarter fell by 0.5 percent to $102.11, while ADR increased by 0.5 percent to $142.35. Occupancy rates fell 0.7 percentage points to 71.7 percent.
As in EMEAA, growth in business transient revenue in the Americas slowed compared to the previous quarter, up 2 percent year over year compared to 4 percent in Q1. Revenue from groups, meanwhile, fell 2 percent year over year, compared to a 6 percent increase in the first quarter.
Maalouf attributed the "inflection" in US business and groups revenue to the timing of Easter and "the turbulence that occurred in March and April due to trade tensions, policy, tax questions, financial market drops… that probably created some pause in consumers and businesses".
He added: "We're past the peak of that turbulence and we've seen things subsiding and creating more certainty since then. There's more certainty on trade, more certainty on tax, financial markets are fully recovered, the job market is still strong, corporate investments are strong… so we think the outlook is more constructive going forward."
IHG Q2 Metrics
IHG systemwide second-quarter RevPAR increased 0.3 percent year over year to $91.45, while occupancy decreased 0.2 percentage points to 69.7 percent.
IHG's first-half revenue from reportable segments increased 6 percent year over year to nearly $1.2 billion, and its operating profit increased 13 percent to $604 million.
IHG's portfolio at the end of Q2 included 6,760 hotels (totaling 999,000 rooms), including 207 hotels opened during the first six months of 2025. As of June30, there are an additional 2,276 hotels in the pipeline, which equates to 338,000 rooms.
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