IHG Hotels Sees Stronger Q3 Growth as Business Travel and Group Bookings Rise

Demand in London, UK, for the hotel business of IHG Hotels & Resorts was stronger in the third quarter of 2026, showing an increase in RevPAR of 5.3%, as compared to an increase of 3.5% in the second quarter. The reasons behind this include an increase in corporate travel, bookings of hotels through groups and an increase in hotel occupancy rates, particularly in the Americas and EMEAA regions. In Q3, there was an increase in business transient room revenue of the hotel group of 4%, while an increase of 10% was observed in group room revenue, compared with the same period in 2025. Average Daily Rate was up by 3.9% while occupancy showed an increase of 0.9%. From these results, it is evident that IHG started the second half of 2026 with a higher level of accommodation demand than in the case of Q2, when disruption in geopolitics in the Middle East had impacted regional performance.

IHG Q3 Performance Compared With Q2: What Improved?

The most significant improvement came from global RevPAR growth, which accelerated by 1.8 percentage points between the two quarters.

The following comparison uses IHG’s reported year-on-year growth rates for each quarter, alongside the quarterly operating figures.

The figures show that EMEAA recorded the greatest improvement, recovering from 0.6% RevPAR growth in Q2 to 5% in Q3. The Americas also strengthened, while Greater China moved into negative territory.

Global Hotel Revenue and Occupancy Move Higher

IHG’s reported global RevPAR increased from $94.17 in Q2 to $97.16 in Q3, an increase of $2.99 per available room, or approximately 3.2% between the two quarterly averages.

This comparison shows that higher occupancy, rather than a further increase in average room rates, supported the sequential improvement in RevPAR. These are quarterly averages and should be interpreted separately from the year-on-year growth rates.

Corporate Travel and Group Bookings Become Major Growth Drivers

Business travel delivered a stronger contribution in Q3. Systemwide business transient room revenue increased 4% year on year, compared with 2% growth across the first half of 2026.

The Americas recorded a particularly strong performance, with business transient room revenue increasing 6% during Q3. Group business in the region climbed 12%, reflecting demand from corporate meetings, conferences and business events.

For comparison, IHG reported 2% growth in systemwide business transient revenue during the first half, with Americas business transient revenue increasing 3%. This indicates an improvement in the corporate travel segment during the third quarter.

Group bookings also remained important. Global group room revenue increased 10% in Q3, compared with 6% growth across the first half. However, the first-half figure covers both Q1 and Q2, so it is not a standalone Q2 comparison.

IHG CEO Elie Maalouf linked stronger American corporate demand to investment in technology, data centres, energy, pharmaceuticals, manufacturing, construction and defence.

The company’s CFO Michael Glover also reported a strong group booking pipeline, with forward bookings remaining in positive territory across regions.

Americas Lead Regional Hotel Performance

The Americas remained IHG’s strongest major region in Q3, with RevPAR increasing 6.8%, compared with 5.4% in Q2.

The increase in occupancy suggests stronger room-night demand across the region. The United States remained particularly important, supported by domestic corporate travel and leisure activity.

For tourism markets, this performance is relevant to destinations with substantial business-event calendars, convention facilities and domestic visitor demand.

Europe and the Middle East Record a Strong Recovery

EMEAA delivered the largest regional improvement, with RevPAR growth accelerating from 0.6% in Q2 to 5% in Q3.

The UK recorded 2.8% growth, while Continental Europe increased 3.8%. East Asia & Pacific delivered an 8.4% increase, supporting the wider regional performance.

The Middle East was broadly flat in Q3 after experiencing a 19% RevPAR decline in Q2. However, the six Gulf Cooperation Council countries continued to face pressure, recording a 12% decline because of their proximity to the ongoing regional conflict.

The improvement across other EMEAA markets demonstrates how demand in different tourism regions can offset weakness in destinations experiencing geopolitical disruption.

Greater China Becomes the Main Weakness

Greater China moved in the opposite direction. RevPAR declined 3.3% in Q3 after increasing 0.8% in Q2.

IHG attributed the weaker performance to adverse weather and changes in public holiday timings, which affected travel demand and hotel occupancy.

Hotel Expansion Continues Alongside Revenue Growth

IHG also expanded its global accommodation network during Q3, opening 92 hotels and signing agreements for another 164 properties, representing approximately 21,100 rooms.

In the period up to September 30, 2026, the firm had opened 289 hotels in the course of the year and contracted 516 properties. The firm’s development pipeline was up by 3.2% year-over-year. The firm is confident of meeting all of its annual projections for 2026 with adjusted EPS toward the top of its long-term growth range.