Dive Brief:

• IHG Hotels & Resorts posted solid results for the first quarter of 2026, with Americas RevPAR up 3.6% year over year, following three quarters of decline, according to a Thursday earnings report. Despite conflict in the Middle East, IHG’s global RevPAR was up 4.4% year over year. 
• The U.S., specifically, saw performance gains in the quarter driven by robust economic activity, including “record employment levels, continued real wage growth, wealth creation and unprecedented levels of investment into areas like infrastructure, data centers and artificial intelligence,” IHG CEO Elie Maalouf said during the call. 
• Looking ahead, Maalouf said he is “confident” about IHG achieving its full-year growth forecasts, particularly with momentum observed in the company’s signings and openings. 

Dive Insight:

On the development front, conversions represented 53% of IHG’s signings in Q1. In February, the hotel giant launched Noted Collection, a conversion-friendly brand focused on the upscale to upper upscale segment. 

IHG’s Q1 results were also driven by robust demand, with occupancy increasing by 1.5% points, Maalouf said. Additionally, all three drivers of stay occasions, including group meetings, business travel, and leisure travel, contributed to RevPAR growth. 

Moroever, U.S. “consumer spending is good,” which is significantly driving GDP growth and capital investment, despite consumer sentiment surveys suggesting otherwise, Maalouf said.

Despite a surge in oil and gas prices, travelers are still driving to their destinations, largely undeterred by the cost, CFO Michael Glover said.

“We're not seeing an indication that someone is making a decision not to do a trip because of an extra bit of $100 or more of gas prices,” Glover said. 

Maalouf said in a statement that disruption to international travel flows will be more than offset by increases in demand elsewhere. Hospitality players expect to see somewhat of a boost from this summer’s FIFA World Cup, despite reports indicating lower-than-expected demand for the event. 

IHG reported 5% year-over-year net system growth in Q1. The company also added 21,400 rooms to its pipeline, representing a 6% year-over-year increase, Maalouf said on the call. 

Additionally, Maalouf said the company is evolving its booking, content and CRM platforms to make them more AI-forward. 

He also said IHG has made “excellent progress in developing an AI-powered conversational search tool that will be launched on our website and mobile app in the coming months.” The tool marks a “significant development that will transform how guests discover and book stays across our 7,000 hotels,” Maalouf said. 

Competitors, including Hilton and Marriott, elaborated on ways they aim to embrace AI during their respective Q1 earnings calls.