(Reuters) -Holiday Inn owner InterContinental Hotels Group reported a fall in U.S. revenue per available room (RevPAR) in the second quarter on Thursday, as economic uncertainties dent consumer
IHG Reports Increased Profit Amid Easing Economic Pressures in the US
IHG's Financial Performance and Market Outlook
By Raechel Thankam Job
US Market Trends
(Reuters) -Holiday Inn owner InterContinental Hotels Group (IHG) reported a jump in first-half profit and pointed to easing economic pressures following a slowdown in U.S. demand, lifting its shares as much as 9% on Thursday.
Comparative Analysis with Competitors
U.S. President Donald Trump's tariffs and rising geopolitical tensions have rattled the travel and hospitality industry as waning consumer confidence threatens to reverse the post-pandemic recovery.
Future Projections for IHG
Amid concerns in the U.S., Marriott lowered its full-year revenue and profit guidance on Tuesday. In contrast, Hilton struck a more optimistic tone, raising its profit forecast for 2025 on the back of a recovery in U.S. travel demand.
"While some shorter-term macroeconomic uncertainties remain, many are subsiding," IHG Chief Executive Elie Maalouf said in a statement, adding that the company remains on track to meet annual profit and earnings expectations.
The shares were up 7% to 9,304 pence at 0812 GMT, topping the FTSE 100 index gainers.
IHG said U.S. revenue per available room (RevPAR) fell 0.9% for the three months ended June 30, compared to 3.5% growth in the first quarter, faring better than peer Hilton in the quarter.
Fundamentals in the U.S. were "pretty good" and supported a positive outlook, Maalouf told analysts in a post-earnings call.
Global RevPAR growth for the second quarter came in at 0.3%, compared to 3.2% growth a year prior, IHG said.
"This is still a strong earnings performance in a tough year for macro and FX for IHG," Bernstein analyst Richard Clarke said in a note.
IHG's operating profit from reportable segments rose 13% to $604 million, beating some analysts' expectations, thanks to cost savings and more fees from loyalty and credit card programs.
Vacation rentals company Airbnb on Wednesday said it expects night bookings growth to moderate year-over-year going into the fourth-quarter.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich, Lincoln Feast and Elaine Hardcastle)
