IHG Global RevPAR Rises 4.4% in Q1 Amid Demand in China and US

Why It Matters

The results underscore IHG’s ability to translate renewed travel demand into higher RevPAR and shareholder value, reinforcing its competitive position in the global hospitality market.

Key Takeaways

• RevPAR rose 4.4% Q1, led by China and US demand.
• 82 new hotels added 14,900 rooms, surpassing 7,000 total.
• Group travel up 7%, business travel up 6% YoY.
• Share buyback completed $240 million, cutting share count 1.1%.
• Conversions accounted for 53% of 163 pipeline signings.

Pulse Analysis

IHG’s 4.4% RevPAR lift in the first quarter signals a robust rebound for the hotel sector after years of pandemic‑induced volatility. Demand in China, where growth topped 5%, and the United States, the world’s largest travel market, propelled average daily rates and occupancy higher. Compared with the 2.6% gain recorded in Q1 2024, the acceleration reflects both a broader macro‑economic recovery and IHG’s diversified brand portfolio that captures business, group and leisure segments.

The chain’s expansion strategy is equally noteworthy. Adding 82 hotels and 14,900 rooms pushes the portfolio past the 7,000‑property milestone, while a pipeline of 163 signed hotels—more than half of which are conversion projects—highlights owners’ appetite for IHG’s quick‑to‑market brand conversions. Conversions now represent 53% of new signings, allowing the company to scale efficiently without the capital intensity of greenfield builds, and reinforcing its presence in high‑growth regions such as Greater China.

Financially, the $240 million share‑buyback—approximately £176 million—demonstrates confidence in cash flow generation and a commitment to returning capital to shareholders. Reducing the share count by 1.1% improves earnings per share and supports the broader $950 million buyback plan. With RevPAR momentum, a strong pipeline, and disciplined capital allocation, IHG is well positioned to capture further upside as global travel demand continues to outpace supply.