Global hospitality group IHG Hotels & Resorts delivered a solid Q3 2025 performance as business-travel demand rebounded sharply across key markets. While leisure and group segments remained under pressure, corporate mobility surged, underscoring renewed confidence in international travel. The company reported that systemwide room revenue from business-transient travel rose year-on-year, even as market conditions remained volatile.
Financials and Market Conditions
Average daily rate (ADR) held at about US $128.66, down marginally by 0.4 percent, while revenue per available room (RevPAR) grew by 0.1 percent compared to the same period last year. These figures reflect resilient fundamentals in a period of global economic uncertainty. IHG reaffirmed its full-year profit and earnings forecasts, signalling that the business remains on track despite headwinds.
Regional Performance Breakdown
In the Europe, Middle East, Asia and Africa (EMEAA) region, business-travel demand rose approximately 6 percent. RevPAR climbed to around US $107.62, ADR increased to US $143.03, and occupancy reached 75.2 percent. Strong performance in the UK and Southern Europe balanced slower markets such as France and Germany. Meanwhile, in the Americas, RevPAR declined modestly to about US $101.18, with ADR dipping to US $140.88 and occupancy at 71.8 percent. A notable factor was a sharp drop in US government travel, which fell around 20 percent year-on-year. In Greater China, RevPAR fell by 1.8 percent to US $43.57 and ADR declined 2.7 percent to US $67.65, although occupancy ticked up to 64.4 percent, suggesting domestic travel remains somewhat stable despite outbound leisure travel pressures.
Expansion and Signings Accelerate
IHG added substantially to its global footprint in Q3 2025, opening 99 new hotels with 14,500 rooms—up 17 percent year-on-year—and signing 170 new properties, up 18 percent. The company’s global portfolio reached 6,845 hotels, with a pipeline of 2,316 properties in development. This fast pace of growth reflects IHG’s strategic focus on capturing demand across high-growth tourism markets and reflects confidence in long-term travel recovery.
New Brand to Capture Premium Segment
In line with its expansion strategy, IHG announced an upcoming premium-collection brand aimed at the upscale to upper-upscale segment. The brand rollout will start in the EMEAA region and will complement existing lifestyle and luxury offerings such as Kimpton and Vignette Collection. This move responds to rising traveller demand for refined experiences and supports the hospitality group’s aim to diversify revenue across segments.
Innovation and Adaptation Set the Tone
IHG’s performance highlights the importance of innovation, flexibility and strategic focus in today’s hospitality market. The group continues to evolve its digital capabilities, improve the guest-experience ecosystem and deepen partnerships with corporate travel buyers. As business-travel patterns shift and hybrid work models persist, IHG’s agility ensures that both business and leisure travellers find value and convenience.
Outlook for 2026 and Beyond
With business-travel momentum gaining traction, IHG enters the 2026 outlook with renewed optimism. The recovery of corporate mobility—including meetings, incentives, conferences and exhibitions (MICE)—offers a stable revenue stream in a tourism industry still emerging from pandemic dynamics. The company views the sustained rebound in business travel as a key pillar of its long-term growth. While market conditions remain mixed, IHG’s balance of segments, deepening global footprint and premium brand strategy position it favourably.
Conclusion
IHG’s third-quarter performance illustrates how the travel and tourism industry is evolving beyond simple recovery into strategic growth. Business travel has taken centre stage as a driver for hotels and airlines alike. By opening more properties, signing new agreements and preparing to launch a premium brand, IHG has demonstrated how resilience and clear strategy can convert uncertainty into opportunity. In this phase of the tourism rebound, its progress signals a promising path forward for global hospitality.
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