Holiday Inn Owner IHG Hopes World Cup Can Kickstart US Recovery

Why It Matters

The World Cup could reverse the U.S. leisure‑travel slump, boosting IHG’s revenue and supporting its shareholder‑return program, while signaling broader recovery for the hotel sector.

Key Takeaways

• U.S. RevPAR fell 2% YoY in Q4 2023
• World Cup expected to bring over 1 million visitors
• IHG launched $950 m share buyback for 2026
• Operating profit rose 13% to $1.27 bn
• European/Asian demand offset U.S. leisure weakness

Pulse Analysis

The United States’ leisure‑travel market has entered a period of restraint, with cost‑conscious consumers cutting back amid inflation and tariff uncertainty. IHG’s latest quarterly results reflect this trend, showing a 2% decline in RevPAR that left the chain trailing industry peers Hilton and Marriott. However, the company’s extensive footprint in the upcoming World Cup host cities positions it to capture a surge in demand, as Tourism Economics forecasts more than a million international visitors to North America during the tournament.

Financially, IHG is leveraging the anticipated World Cup uplift to reinforce its capital‑return strategy. The $950 million share‑buyback program, coupled with a 10% dividend hike, signals confidence in future cash flow generation. The firm reported a 13% jump in operating profit to $1.27 billion, narrowly beating analyst expectations, and JPMorgan has upgraded IHG as its top sector pick for fiscal 2026. These moves aim to reward shareholders while providing a buffer against the current U.S. market softness.

Industry observers view the World Cup as a potential inflection point for the broader hospitality sector. While European, Middle Eastern, African and Asian markets delivered solid RevPAR growth, the U.S. remains the largest revenue source and its recovery will be pivotal for sustained earnings momentum. Competitors are also positioning assets in host cities, intensifying competition for premium bookings. If IHG can translate the event’s visitor influx into higher occupancy and average daily rates, it could set a new performance baseline for the post‑pandemic era, influencing investor sentiment across the hotel industry.

Holiday Inn owner IHG hopes World Cup can kickstart US recovery

By Raechel Thankam Job and Yadarisa Shabong

Bengaluru — InterContinental Hotels Group is banking on the soccer World Cup to revive US travel in 2026 after a third consecutive quarterly drop in room revenues there, though European and Asian demand helped it beat fourth‑quarter expectations overall.

Leisure travel trends have softened in the US, the Holiday Inn owner said on Tuesday, as cost‑conscious consumers rein in spending amid rising prices and tariff uncertainty.

US revenue per available room (RevPAR) fell 2 % in the three months to end‑December, underperforming rivals Hilton and Marriott.

“As we look into 2026, while it’s very early days, the RevPAR so far has been positive. We would expect the US in the first quarter to be positive,” CEO Elie Maalouf said.

IHG launched a new $950 m share‑buyback programme for 2026 and proposed a 10 % dividend increase.

“We expect shares to be up today, given the solid print and a buyback that was stronger than the Street anticipated,” said JPMorgan analysts, adding that IHG remained their top sector pick for fiscal 2026 given easier US comparatives and expected World Cup demand.

Shares of the FTSE 100 group hit a record high of 150.9 pence in early trading, before paring gains to stand marginally higher at 9.08 am GMT.

1‑million visitors

Tourism Economics estimates the World Cup, which the US will host in June and July with Mexico and Canada, will attract more than a million visitors to North America.

Maalouf said that should provide a significant uplift thanks to IHG’s footprint in host cities.

Fourth‑quarter global room revenue rose 1.6 %, ahead of forecasts of 1.5 %, helped by Greater China’s return to growth and a 7.1 % jump across Europe, the Middle East, Africa and Asia.

Greater China — which includes Hong Kong, Macau and Taiwan — posted RevPAR growth of 1.1 % after most of 2025 was marked by declines, as leisure demand improved.

IHG’s 2025 operating profit from reportable segments rose 13 % to $1.27 bn, close to analyst expectations of $1.26 bn.