InterContinental Hotels Group (IHG) Morgan Stanley 3rd Annual Travel & Leisure Conference summary

Demand environment and booking trends

• RevPAR grew 3.3% globally and 3.5% in the U.S. in Q1, with summer bookings looking positive despite short booking windows.

• Macro turbulence and market drops in March have smoothed out, with trade tensions easing into trade deals.

• Consumer sentiment surveys remain weak, but actual consumer spending and travel demand are strong in the U.S., Europe, and China.

• Over 50% of bookings occur within the last seven days, and 30% in the last 48 hours, creating late booking patterns.

• Advanced AI-driven revenue management systems provide confidence to hold rates and manage yield despite booking volatility.

Performance drivers and innovation

• Outperformance in the U.S. attributed to investments in revenue management, brand upgrades, and loyalty program growth.

• Loyalty program now accounts for 70% of U.S. room nights, up from 60%, driving higher performance.

• Guest reservation system and monetization of premium features contribute to revenue growth.

• Continuous innovation and brand strengthening are key to maintaining competitive advantage.

Regional outlooks

• U.S. fundamentals remain strong with low unemployment and robust consumer spending, supporting both leisure and corporate travel.

• Europe and Japan show strong RevPAR, with Europe benefiting from high inbound travel and limited supply.

• China faces rate pressure due to real estate overhang and lack of high-rated international inbound, but travel demand and signings remain resilient.

• Chinese outbound travel is strong, benefiting properties in Asia Pacific, Middle East, and Europe.