InterContinental Hotels Group (IHG) Q3 2024 TU earnings summary

Executive summary

• Global RevPAR increased 1.5% in Q3 2024, with Americas up 1.7%, EMEAA up 4.9%, and Greater China down 10.3% year-over-year, driven by a diverse global footprint and strong Groups and Business demand.

• Gross system growth reached 5.9% year-on-year, net system growth 4.1%, with hotel openings more than doubling to 17,500 rooms (98 hotels) and signings up 14% versus last year.

• The pipeline now stands at 327,000 rooms, 12% larger than a year ago, reflecting strong momentum into Q4 and 2025.

• On track to meet full-year expectations and return over $1 billion to shareholders in 2024 through dividends and buybacks.

Financial highlights

• Year-to-date global RevPAR up 2.4%, with Americas up 1.8%, EMEAA up 6.4%, and Greater China down 5.6%.

• Average daily rate rose 1.7% in Q3; occupancy declined 0.1 percentage points.

• Group revenue globally up 6%, Business up 2%, Leisure broadly flat, down less than 1% year-on-year.

• Gross system size grew 5.9% year-on-year; net system size up 4.1% year-on-year to 968,000 rooms.

• Opened over 17,500 rooms in Q3, including 6,000 from the NOVUM agreement; year-to-date net system growth at 2.3%, expected to ramp up in Q4.

Outlook and guidance

• On track to finish 2024 in line with market expectations and growth algorithm.

• Q4 expected to see easier comparatives in China and continued strong demand in Americas and EMEAA.

• Confident in achieving net unit growth of around 4% for 2024 and 2025, excluding the impact of the Venetian contract ending.

• Confident in ability to capitalize on scale, brand strength, and long-term demand drivers.