The Quarter
InterContinental Hotels Group reported third-quarter revenue per available room growth of 5.3% on 22 October 2026. The company-compiled consensus for the quarter stood at 4.4%. Group RevPAR is up 4.6% year to date.
Regional RevPAR for the quarter was Americas +6.8%, EMEAA +5.0% and Greater China -3.3%, the company's trading update states.
Shares in the group were down 3.2% at 0820 GMT in London, the intraday figure the report records.
Where the Growth Came From
Americas RevPAR rose 6.8% on a rate increase of 3.9% and occupancy up 2.1 percentage points to 73.9%. The United States rose 6.9%. Rooms revenue on a comparable hotels basis was strongest in Groups at +12%, ahead of Leisure at +7% and Business at +6%.
Greater China fell 3.3%, with rate down 0.8% and occupancy down 1.6 percentage points to 62.3%. IHG attributed that quarter to weather events in July and August, and to public holiday timing that pushed more outbound leisure travel in late September.
Middle East RevPAR finished broadly flat after a 19% fall in the second quarter. Within that total, the six Gulf Cooperation Council countries recorded a 12% decline for the quarter, which the report ties to the Iran war. Demand in Egypt and Turkey offset the fall.
The 2027 Interest Line
IHG gave a preliminary view for 2027 adjusted interest expense of an increase of 40 million to 60 million dollars. The expected range for 2026 is 230 million to 240 million dollars.
Against those two figures, the 2027 step is 16.7% to 26.1% of the 2026 charge. IHG states it will update the range with its 2026 results on 23 February 2027.
What JPMorgan Put to Clients
JPMorgan analysts said the forecast for higher interest costs in 2027 could pressure earnings estimates, and that profit-taking could weigh on a stock that has gained about 17% this year.
The same analysts put Saudi Arabia at about 4% to 5% of IHG's hotel development pipeline. That figure is the bank's estimate. The trading update does not carry it.
Two Lines the Market Priced
Adjusted interest expense enters the 2027 model ahead of any 2027 RevPAR assumption. The 40 million to 60 million dollar increase is the item JPMorgan named as capable of moving estimates.
The Gulf now has a quarterly print of its own. The Middle East region went from a 19% decline in the second quarter to broadly flat in the third, and the six GCC countries fell 12% inside that flat total.
Saudi Arabia's weight in the development pipeline sits at 4% to 5% on JPMorgan's estimate. The 12% measures revenue for the quarter. The 4% to 5% measures rooms under development.
What the Numbers Set
The 5.3% RevPAR figure sets the operating base for 2026. The interest step sets part of the 2027 cost base. IHG reports again on 23 February 2027.