InterContinental Hotels Group Reports 13% Adjusted EPS Growth

The Tip Desk · August 11, 2026 · 2 min read

The global hospitality company grew its adjusted EPS by 13% in the first half of 2026, supported by a 4.1% increase in global RevPAR.

InterContinental Hotels Group Plc, a global hospitality company with 21 hotel brands, reported adjusted EPS growth of 13% for the six months ended June 30, 2026. The company said this result was driven by robust revenue growth, an acceleration in net system growth, and an efficient cost base that expanded margins.

Global RevPAR rose 4.1% in the first half of 2026, with growth of 4.8% in the Americas, 3.1% in Greater China, and 3.0% in EMEAA. In the United States, RevPAR growth accelerated from 3.4% in the first quarter to 5.2% in the second quarter, which the company attributed to a stronger US economy and easier comparatives. Total gross revenue rose 7% at constant currency to $18.2bn.

Operating profit from reportable segments increased 10% to $665m. This growth followed a 7% increase in fee business revenue that exceeded a 4% increase in costs, resulting in a fee margin of 65.9%, up 1.2 percentage points. The company expects the fee business cost base to increase within a range of 1% to 3% for the full year of 2026.

Development activity reached record levels with 197 hotels and 31.5k rooms opened in the first half, an 8% increase year-on-year when excluding the 2025 Ruby brand acquisition. The company signed 352 hotels and 49.2k rooms, representing an 8% organic increase. This brought the global estate to 7,109 hotels and 1,049k rooms. The global pipeline now consists of 2,385 hotels and 348k rooms, which is 33% of the current system size.

IHG One Rewards saw gross enrolments grow 15% year-on-year, with loyalty penetration reaching 67% of all room nights booked. The company noted that loyalty members typically spend approximately 20% more in hotels than non-members.

Capital returns included an interim dividend of 64.5¢, a 10% increase over the prior year. The company has completed 42% of its $950m share buyback programme for 2026 and expects to return more than $1.2bn to shareholders during the year. The company is targeting a leverage ratio within a range of 2.5-3.0x net debt:adjusted EBITDA.

IHG said it remains on track to meet full-year consensus profit and earnings expectations. The company expects fee growth to be more substantial in 2027 and beyond as additional residential units under development are sold and the company leverages its Luxury & Lifestyle brands.