InterContinental Hotels Group (IHG), owner of the Holiday Inn brand, reported a slowdown in its global room revenue growth in the second quarter of 2026. Revenue per available room (RevPAR) growth dropped to 3.5% in Q2 2026 from 4.4% in the previous quarter. Demand from affluent travelers remained strong, supported in part by the football World Cup held across the United States, Canada, and Mexico.
Regional Revenue Performance
The Middle East region saw a sharp 19% decline in RevPAR during Q2 2026, significantly contributing to the overall slowdown. This region, which accounts for about 5% of IHG’s global revenue, is part of the
company’s second-largest EMEAA division. In contrast, the Americas recorded a 5.4% increase in RevPAR, while China experienced a slight 0.8% rise over the same period.
Impact of the Middle East Conflict
The ongoing war in Iran, which has persisted for about six months as of August 2026, is the primary cause of the Middle East’s steep revenue decline. This conflict has disrupted international travel flows, heavily affecting hotel performance in the region. IHG CEO Elie Maalouf noted the broader travel disruptions stemming from the conflict.
Company Outlook and Industry Context
IHG anticipates that losses from the Middle East will be fully offset by growth in other markets. “While there are ongoing
impacts from the Middle East conflict, including some wider disruption to international travel flows, we continue to expect these to be fully offset by growth in demand elsewhere,” Maalouf said. US-listed hotel rivals Hilton and Marriott also reported strong US demand aided by the World Cup, alongside weaker revenue from the Middle East. IHG remains on track to meet market expectations for annual revenue and earnings despite the regional challenges.
