InterContinental Hotels Group (IHG) has reported a rise of 1.5% in revenue per available room (RevPAR) for the third quarter (Q3) of 2024.
This increase is, however, slower than the 3.2% growth seen in the previous quarter.
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This performance reflects a mixed geographical landscape, with growth in Europe being offset by weaker demand in China and a subdued US market.
RevPAR in the Americas saw a rise of 1.7% while the Europe, Middle East, Africa, and Asia (EMEAA) region saw an increase of 4.9%.
Greater China experienced a decline, with RevPAR falling by 10.3%.
IHG Hotels & Resorts CEO Elie Maalouf said: “RevPAR grew +1.5% in the third quarter of 2024, reflecting the strength of our globally diverse footprint, healthy business demand and a record period for group bookings.”
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By GlobalDataOccupancy in the EMEAA region improved by 0.9% points to 74.6%, with a rate increase of 3.6%.
Continental Europe led the growth with a 7.1% rise in RevPAR, followed by East Asia & Pacific at 6.5%, and the UK at 2.2%. However, the Middle East saw a decline of 3.2%.
Year-to-date (YTD) figures show global RevPAR up by 2.4%, driven by a 1.8% increase in the Americas and a 6.4% growth in EMEAA.
Greater China, however, has seen a 5.6% decrease.
The average daily rate (ADR) for the quarter rose by 1.7%, with occupancy down by 0.1% points.
IHG’s net system size expanded by 4.1% in Q3.
The group also announced that its licensing agreement with The Venetian Resort and The Palazzo in Las Vegas will conclude on 1 January 2025.
Gross system size growth was 5.9% year-over-year (YOY) in the third quarter and 3.7% YTD.
IHG opened 98 hotels in the quarter, and signed 129 hotels in the quarter, up 14% YOY, and its global pipeline now stands at 2,218 hotels, a 12% increase from the previous year.
In the Americas, net system size growth was 1.1% YOY and 0.6% YTD.
The pipeline saw the addition of 59 hotels, including 19 across the Holiday Inn brand family, 17 across IHG’s extended-stay brands, and seven across luxury and lifestyle.
China reported a gross system growth of 11.9% YOY and 6.8% YTD, with 27 hotels opened in the quarter, representing a 51% increase from the same period last year.
In the EMEAA region, gross system growth was 8.2% YOY and 5.3% YTD, with 47 hotels opened in the quarter.
