Dive Brief:
- IHG Hotels & Resorts’ U.S. RevPAR fell 1.6% year over year in the third quarter of 2025, with RevPAR for the Americas region down 0.9% for the period, according to a Thursday earnings report.
- Globally, Q3 RevPAR was up 0.1% year over year. IHG posted an overall 17% room growth (excluding the Novum conversions this year and last) and an 18% year-over-year increase in signings.
- The company also announced the launch of an as-yet-unnamed upscale to upper upscale collection brand that will come to market in the coming months. The new brand is set to initially focus on the Europe, Middle East, Asia and Africa region, where IHG’s Q3 RevPAR was up 2.8% year over year. The collection brand announcement follows similar news from Marriott International, Hilton and Wyndham Hotels & Resorts, all of which launched collection brands earlier this month.
Dive Insight:
CEO Elie Maalouf said in a statement that IHG’s as-yet-unnamed new collection brand would “build on the well-established successes we’ve already delivered” with collections and conversions such as Vignette, Voco and Garner.
On a Thursday call with analysts, Maalouf said that both Voco and Vignette launched in EMEAA and later branched out west to the U.S. and the Americas, and east toward China. “Because of the larger conversion and independent market in EMEAA, it makes sense to launch our conversion and collection brands there.” He added that more than half of the supply in IHG’s EMEAA market is still independent.
“Within the branded supply, a lot of it is smaller to regional brands that are accessible, addressable with conversion and collection brands for IHG,” Malouf said.
Meanwhile, the company has seen “softer demand in the U.S. for a couple of quarters now,” IHG CFO Michael Glover said on the call, adding that a return to growth would come “when economic uncertainty further subsides and the travel industry's fundamental tailwinds prevail.”
Several factors contributed to recent weakness in the U.S., including “turmoil around tariffs, tensions, policy in the beginning of the year,” as well as a drop in equity markets, Maalouf said on the call.
“That did create some pause, we think, in corporates and in leisure customers in making decisions,” Maalouf said. “We saw that translate in the first few quarters of the year. Second, you've got lower international inbound in the U.S. A lot of that tends to be leisure, especially during the summer months and the holiday periods, and of course, from Canada due to some tensions there. That has affected some of the leisure business.”
Glover also said on the call that while the company doesn’t provide RevPAR guidance, “consensus for next year on system growth is around 4.3% growth.”
On Wednesday, Wyndham Hotels & Resorts posted a third-quarter global RevPAR decrease of 5% year over year, reflecting declines of 5% in the U.S. and 2% internationally. Also on Wednesday, Hilton posted a Q3 systemwide RevPAR decline of 1.1% year over year, with U.S. RevPAR down 2.3% for the period.
