IHG Reports 3.5% US Room Revenue Growth

InterContinental Hotels Group is standing firm on its full-year outlook even as competitors scale back profit forecasts amid what analysts have dubbed a Trump Slump and mounting recession fears. The owner of Holiday Inn told investors it remains on track to meet analysts’ profit expectations, buoyed by stronger room revenue growth in its largest market. According to Reuters, IHG’s results underline its resilience relative to peers.

In the first quarter of 2025, IHG recorded a 3.5 percent increase in U.S. room revenue, reversing last year’s 1.9 percent decline. That performance outpaced regional gains at Hilton and exceeded Marriott’s figures in the U.S. and Canada, highlighting IHG’s ability to capture demand in a competitive mid-market segment. Executives noted that strategic promotions, targeted loyalty initiatives, and a focus on Holiday Inn’s value proposition drove booking momentum.

Despite acknowledging signs of economic softening, IHG said its global revenue growth is set to continue into the second quarter. The company pointed to rising corporate travel bookings and a steady pipeline of new franchise openings as pillars of its growth strategy. While some of the industry’s leading players have adjusted guidance, IHG insists its diversified brand portfolio and franchise-driven model will cushion it against a broader slowdown.

However, IHG did flag that its 2025 revenue per available room, or RevPAR, is likely to fall slightly below the 2.3 percent growth analysts had forecast. That caveat reflects concerns around inflationary pressures and consumer sentiment. Still, hotel industry experts believe IHG’s focus on mid-priced, franchised properties positions it to retain market share even if discretionary travel softens.

Earlier this week, Marriott revised its 2025 room revenue growth expectations downward to between 1.5 percent and 3.5 percent, compared with an earlier forecast of 2 percent to 4 percent. Reuters reported that Marriott’s guidance cut was driven in part by a roughly 10 percent decline in nights booked by U.S. government travelers after federal staff layoffs under the Trump administration. In February, Hilton also lowered its earnings-per-share forecast, attributing the revision to weaker leisure travel demand and higher operating costs.

IHG’s decision to hold its profit forecast reflects confidence in its ability to weather a choppy travel environment. Analysts point out that as a franchise-heavy operator, the company benefits from lower capital requirements and more stable fee income, even when gross room revenue growth moderates. With nearly 1,400 new hotel signings expected in 2025, IHG is adding rooms in key markets such as the United States, China, and Europe.

Industry watchers will be watching IHG’s next quarterly update for further evidence of its defensive advantage. If the company continues to outpace Hilton and Marriott on U.S. room revenue growth, it may cement its reputation as the most resilient major hotel operator during the current economic cycle. For now, IHG’s commitment to its guidance offers a measure of stability in an industry marked by rapid shifts in demand and ongoing geopolitical uncertainties.

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