IHG Reports Strong First-Half 2026 Earnings Amid Middle East Challenges
On 11 August 2026, Intercontinental Hotels Group (IHG) released its first‑half 2026 financial results, revealing a robust 7 % rise in revenue to $1.25 billion and a 4.1 % year‑over‑year increase in global RevPAR.
The British‑listed hotel operator’s performance was anchored by solid gains in the Americas and Greater China. RevPAR in the Americas climbed 4.8 %, while Greater China posted a 3.1 % lift. Across the EMEAA (Europe, Middle East, Africa and Asia) region, RevPAR grew 3 %, a rise that helped offset a sharp 19 % decline in the Middle East during the second quarter. IHG’s Middle East portfolio accounts for 19 % of the EMEAA system size but only 5 % of the group’s worldwide portfolio.
"Our focus on raising hotel revenue per available room and expanding our global portfolio will underpin the high‑single‑digit fee‑revenue growth we anticipate over the medium to long term," said CEO Elie Maalouf. He highlighted that trading in the United States accelerated in the second quarter and that a strong performance elsewhere in EMEAA helped cushion Middle East challenges.
The Middle East segment saw a 2 % year‑over‑year dip in RevPAR in the first quarter, followed by a 19 % drop in the second quarter. Executives remain optimistic about a rebound, noting that there were no extraordinary exits in the region and that some projects might be delayed by a quarter or two. CFO Michael Glover added that Middle East performance had improved more rapidly than expected.
Pipeline activity is concentrated in Saudi Arabia, Egypt and Turkey, which together account for 90 % of the Middle East pipeline, according to Maalouf. In China, IHG signed 60 Holiday Inn‑family hotels in the first six months, adding 116,000 rooms to a pipeline of 591 hotels—more than half of the company’s current Chinese portfolio.
Net system size grew 5 % year‑over‑year to 1,048,731 rooms across 7,109 hotels. The company opened 197 new hotels, adding approximately 31,500 rooms, and signed 352 hotels with 49,200 rooms in the first half of the year, an 8 % increase in room count. Revenue growth of 7 % exceeded guidance by about $10 million.
Fee‑revenue contribution from new openings is expected to build over time. Glover reported a 40‑basis‑point improvement year‑over‑year in fee triangulation, with a 110‑basis‑point gain in the United States. The group plans to maintain a lower overhead rate than revenue growth, aiming to increase margins.
Maalouf announced a 50‑year updated agreement with Centinel to operate hotels for the U.S. Air Force, beginning in late 2027 and initially covering 23 properties.
Shareholder returns are on track, with IHG slated to return $950 million over the full year. The company’s stock closed at $155.20 per share, up 12.1 % year‑over‑year, while the FTSE 100 index rose 9.2 % over the same period.
In summary, IHG’s first‑half 2026 results demonstrate resilient global growth, robust development activity, and a strategic focus on fee‑revenue expansion. While the Middle East segment remains under pressure, the company’s pipeline and operational plans suggest a path to recovery and continued profitability.
