IHG Q3 RevPAR Climbs 5.3% as U.S. Gains Counter China Slump
IHG posted a 5.3% rise in third-quarter global RevPAR, propelled by strong U.S. occupancy and expanding conversion pipelines.
The short answer
IHG Hotels & Resorts achieved a 5.3% increase in third-quarter global RevPAR, anchored by strong U.S. demand that countered headwinds in Greater China. Conversions continue to accelerate across the network, accounting for 60% of third-quarter signings as group rooms revenue jumped 10%.
“Our U.S. performance was very strong, with growth across all brands.”
The short version
- U.S. occupancy touched 73.9 percent, reaching its highest level since 2017.
- Conversions accounted for 60 percent of signings and 50 percent of openings across the system in 2026.
- Management raised its full-year 2026 net unit growth projection from 4.2 percent to 4.8 percent.
IHG Hotels & Resorts posted a 5.3 percent increase in global revenue per available room for the third quarter, driven by surging travel across the United States that offset declining domestic numbers in Greater China. [1]
According to Asian Hospitality, Americas operations led the period with a 6.8 percent RevPAR gain, while U.S. RevPAR specifically rose 6.9 percent. [1] Average daily rate across the group advanced 3.9 percent, and global occupancy lifted by 0.9 percentage points. [4] Lodging Magazine reported that on a comparable-hotel basis globally, group rooms revenue grew 10 percent, leisure climbed 5 percent, and business travel expanded 4 percent. [4] In the U.S., occupancy reached 73.9 percent, marking its highest rate since 2017, Hotel Dive reported. [2] The tail end of the World Cup contributed 40 basis points to U.S. quarterly RevPAR. [2]
Regional trends diverged sharply across international territories. Europe, the Middle East, Asia, and Africa delivered a 5 percent RevPAR expansion, supported by inbound travel from China to Continental Europe and East Asia, even as the Middle East finished broadly flat. [[1, 4]] Conversely, Greater China RevPAR slipped 3.3 percent in the third quarter, which management blamed on adverse weather disruptions and shifts in public holiday schedules. [1]
Systemwide expansion gained pace, with IHG delivering 4.9 percent net system growth year over year across an operating footprint of 7,186 hotels. [[1, 4]] During the quarter, the group opened 92 properties containing 12,900 rooms and signed 164 hotels representing 21,100 rooms. [4] Hotel Dive noted that conversions now account for 50 percent of openings and 60 percent of signings during 2026, supported by conversion brands such as voco, Vignette, and Garner. [2] Management raised full-year net unit growth expectations to 4.8 percent, up from 4.2 percent projected earlier in the year. [2]
Capital management remained focused on equity reductions and refinancing obligations. Asian Hospitality reported that IHG repurchased 4.7 million shares for $707 million by late October under its $950 million buyback program. [1] The group projects returning over $1.2 billion to shareholders this year through buybacks and dividends, while adjusted interest expenses will rise from between $230 million and $240 million in 2026 to an increase of $40 million to $60 million in 2027 following €850 million in autumn bond issuances. [1]
For hotel owners and asset managers, IHG's performance shows that aggressive group booking recovery and conversion brand speed are currently the most reliable levers to preserve margin against rising borrowing costs. [[1, 2]]
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This article was written from the following reporting. Follow the links for the original coverage.
- [1]IHG Q3 RevPAR Jumps 5.3% Led by Strong U.S. Demand— asianhospitality.com
- [2]IHG Q3 RevPAR Jumps 5.3% as U.S. Demand Surges— Hotel Dive
- [3]IHG Q3 RevPAR Rises 5.3% on Strong U.S. Demand— asianhospitality.com
- [4]IHG Q3 Global RevPAR Up 5.3% Led by Strong US Demand— Lodging Magazine
Frequently asked
+What caused the RevPAR decline for IHG in Greater China during Q3?
IHG attributed the 3.3 percent drop in Greater China RevPAR to adverse weather conditions and shifts in the timing of regional public holidays. However, Greater China remained up 1 percent year to date, and net system growth in the region reached 10.3 percent.
+How did different travel segments perform for IHG in the third quarter?
On a comparable-hotel basis, global rooms revenue grew fastest in the group segment, which rose 10 percent year over year. Leisure travel revenue increased 5 percent, while business travel revenue grew 4 percent.
+What proportion of IHG's pipeline activity comes from conversions?
Conversions represented 50 percent of openings and 60 percent of signings across IHG's portfolio during 2026. Management identified conversion-friendly brands, including Garner, voco, and Vignette Collection, as primary vehicles accelerating pipeline movement.
+How high did U.S. hotel occupancy reach for IHG in Q3?
IHG's U.S. occupancy reached 73.9 percent during the third quarter, which Chief Financial Officer Michael Glover noted was the brand's highest third-quarter occupancy level achieved since 2017.
+What are IHG's projected shareholder returns and capital costs?
IHG plans to return more than $1.2 billion to shareholders in 2026 via ordinary dividends and a $950 million share buyback program. After issuing €850 million in bonds, the group projects 2026 interest expense of $230 million to $240 million.
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