InterContinental Hotels Group reports $665 million in H1 operating profits, driven by global travel demand and offsetting regional disruptions.
InterContinental Hotels Group (IHG) posted a 10% increase in operating profits to $665 million for the first half of the year, citing robust travel demand from a growing middle class. Revenue from reportable segments rose 7% to $1.3 billion, while global revenue per available room (RevPAR) grew 4.1%.
RevPAR growth slowed to 3.5% in Q2 from 4.4% in Q1, reflecting the impact of the Middle East conflict and a regional travel slump. The company noted accelerated growth in the U.S., Asia Pacific, and Europe helped counterbalance the disruption.
IHG shares traded down nearly 1.9% following the announcement. CEO Elie Maalouf attributed the results to consumers prioritizing experiences over goods, particularly among rising middle-class and affluent travelers.