IHG Hotels & Resorts increased its global portfolio to more than 7,000 hotels in the first quarter of 2026, an early birthday present before it celebrated its 80th anniversary on April 4.
That milestone could not be tempered, according to executives at IHG Hotels & Resorts, even by the challenged trading environment in the Middle East.
Another achievement executives noted was the opening of IHG’s 900th hotel in Greater China.
With IHG’s Q1 numbers coming at the back end of the first season of publicly listed hotel-firm reporting, CEO Elie Maalouf and Chief Financial Officer Michael Glover could do little more than reiterate the general sentiment of all the executives from other global hotel firms that have spoken in the last two weeks.
Speaking on IHG’s first-quarter earnings report conference call, Maalouf said the 95% of the company’s estate outside of the Middle East performed very well and more than offset that region’s downside attributed to the ongoing war in Iran.
He said global reports bettered expectations.
The British company started listing its share price on the London Stock Exchange in U.S. dollars as of Jan. 2.
Across all its hotels, Maalouf said good revenue per available room performance in January and February saw first quarter RevPAR come in up 4.4% compared to the same period last year, average daily rate in the period improved in year-on-year terms by 2% and occupancy increased 1.5%.
Maalouf said the quarter showed “very strong trading performance and better-than-expected demand. Our development momentum also continues.”
He added that IHG’s Middle East portfolio comprises 19% of its entire Europe, Middle East, Asia and Africa region and only 5% of its global offerings.
Maalouf said the Middle East has seen a significant drop in revenue per available room in March, down in year-on-year terms by 26%.
“We expect business to improve, notably during the Hajj (in May this year) … which underlines the breadth and diversity of this region,” he said.
In that particular region, he added, most of IHG's pipeline is in Saudi Arabia, which is “less affected than other parts of the [Gulf Cooperation Council] countries. … 90% of pipeline (in the region) is in Saudi Arabia, Egypt and Turkey."
“The latter two are not affected by the conflict, and we think they are unlikely to be,” he said.
Glover said plans for development in the Middle East continue.
“We are not seeing anything that suggests [our development pipeline] will be disrupted,” he said.
Maalouf and Glover said they thought the worst of the conflict is in the past.
The situation changes day by day, but it is seemingly reaching a period of de-escalation and a return to some degree of normalization, Maalouf said.
Macroeconomic and geopolitical noise is not having a major effect on consumer sentiment and spend, Glover said.
Confidence in the US
Growth and improvement in employment, the financial markets, infrastructure, artificial intelligence, wages and gross domestic product underline U.S. consumer confidence, he added.
“There is a wealth effect from this. Others will argue if that is sustainable, but we’re not seeing a reaction to higher oil prices in our consumer numbers,” Maalouf said.
In the Americas, RevPAR in the quarter in year-on-year terms increased 3.6% and ADR by 2%.
That momentum, Maalouf and Glover said, is expected to continue in the rest of the year.
Maalouf said he is pleased with what he is seeing around World Cup 2026 bookings — the June-July tournament takes place in Canada, Mexico and the U.S.
“Our expectations are being met so far. The [industry-wide] consensus is for improvement of between 30 and 80 basis points, and we are somewhere in the middle, and we are also not seeing any effect to its shoulders,” he added.
Glover said the cost of U.S. gasoline is approximately $1 per gallon higher, an increase that is within a tolerated range.
“We do not see [an increase in gas prices] coming into the decision to make or not make a trip … and we’re not seeing any slowdown in group and business travel, and within group there is leisure travel, too,” he said.
Maalouf added that gasoline prices in the U.S. also are not currently at a historic high.
“The U.S. is more geared to natural gas, which has decreased slightly [in price],” he said.
Performance in Greater China
Greater China is another region boosting IHG’s overall Q1 numbers and full-year 2026 consensus.
Maalouf said 2026 looks as though it will be another record year of signings in Greater China.
“That market bottomed out in the middle of last year, but it is now positive, and we expect that performance to continue for the rest of the year. … RevPAR is a little lower, but it is net-neutral to our mix," he said.
In the quarter in year-on-year terms, Greater China RevPAR increased 5.7%, “supported by strong leisure demand over the Chinese (Spring Festival) holiday period. … In top-tier cities, RevPAR increased 6.4%, fueled by international demand,” Maalouf said.
He said IHG has passed 900 hotels in Greater China, adding that business fundamentals, government policies and an under-penetration of hotels per capital boded well for additional growth.
Globally, “our systems network is well set up to offset whatever challenge any year brings us. We’re very confident,” he added.
He added IHG’s “record-breaking momentum” continued in the quarter, with 14,900 rooms opening in the quarter, including six brand launches in new markets and 7,500 rooms in 37 hotels in Greater China.
Highlights, Maalouf said, included the debut of its Six Senses brand in the United Kingdom, with the 109-room Six Senses London opening in March, and reaching the 200th opened and pipeline Garner-branded hotel, with that flag now being in 17 countries.
“The (106-room) Garner Hotel Beijing 798 Art District opened one month after signing,” Maalouf said.
He added that 53% of Q1 openings were conversions.
In other news, Maalouf announced that IHG would launch a new AI-search engine later this year and that its current share buyback program of $950 million was 25% completed.
As of press time, IHG stock was trading at $150.25 a share, an increase of 29.7% year over year. The London Stock Exchange’s FTSE 100 index was up 21.2% over the same period.