INTERCONTINENTAL Hotels Group (IHG) is betting on a World Cup-driven recovery in US travel in 2026 after reporting a third-quarterly decline there on Tuesday, though European and Asian demand helped it beat fourth-quarter room revenue expectations.
Leisure travel trends have softened in the United States, said the group, which owns the Holiday Inn brand, as cost-conscious consumers rein in spending amid a challenging economic backdrop. That led to a third straight quarterly decline in US revenue per available room (RevPAR) for IHG.
The hotel operator’s US RevPAR fell 2 percent in the quarter, underperforming rivals Hilton and Marriott.
The group launched a new $950-million share buyback program for 2026 and proposed a 10-percent increase in its annual dividend.
“Looking ahead to 2026, less turbulent trading conditions in the US and stronger demand are expected for the industry,” Chief Executive Elie Maalouf said in a statement, citing the upcoming FIFA World Cup as a catalyst that could help reverse soft US inbound travel.
World Cup set to drive demand for IHG
The FIFA World Cup, which the US will host in 2026, is expected to attract between 1 million and 6 million foreign visitors, driving additional demand for IHG, particularly from the second quarter of 2026.
IHG’s fourth-quarter global room revenue grew 1.6 percent, beating expectations of 1.5 percent despite US weakness, driven by Greater China’s return to growth and a 7.1-percent jump in Europe, Middle East, Africa and Asia markets on business, leisure and group demand.
Greater China ― which for IHG includes Hong Kong, Macao and Taiwan ― was its third-largest region, and recorded RevPAR growth of 1.1 percent in the quarter through December, after declining for most of 2025, as leisure demand improved and the region showed signs of recovery.
IHG’s 2025 operating profit from reportable segments rose 13 percent to $1.27 billion, close to analyst expectations for $1.26 billion, according to a company-compiled poll.
