InterContinental Hotels Group (IHG), owner of brands including Holiday Inn and Crowne Plaza, reported stronger-than-expected revenue per available room (Revpar) growth in the third quarter of 2026, driven largely by increased travel among affluent American tourists. The company said Revpar rose 5.3 percent during the period, surpassing analysts’ consensus forecast of 4.4 percent, despite ongoing challenges in global travel markets.

IHG’s results come amid a backdrop of geopolitical tensions, including war and civil unrest, as well as elevated airfares and higher borrowing costs that have clouded the tourism industry outlook. Nevertheless, the hotel group expressed confidence in meeting market expectations for the full year. Chief Executive Elie Maalouf highlighted the strong demand from U.S. travelers, noting that 2026 was shaping up to be another record year for Americans visiting Europe, despite increased travel costs and rising temperatures.

The company also pointed to a shift in travel patterns within the United States, where many guests have been opting to drive to hotels rather than fly, mitigating the impact of higher airfare prices. Meanwhile, oil prices have also increased, creating additional pressure on travel and operating costs.

Regionally, IHG reported flat Revpar performance in the Middle East during the third quarter, following a steep 19 percent decline in the previous quarter. This stability was attributed to strong demand in countries like Egypt and Turkey, which helped offset a 12 percent drop in the Gulf region. Concerns over travel in the Gulf persist, as recent attacks on Saudi Arabian airports have raised security issues. Saudi Arabia represents approximately 4 to 5 percent of IHG’s hotel development pipeline, according to analysts.

Despite the mixed regional performance, Maalouf expressed confidence that the Middle East hotel market would quickly rebound once the ongoing conflict in the region concludes. He also downplayed concerns about civil unrest in France, forecasting that it would subside and that the country would remain a key destination for tourists.

Following the earnings announcement, IHG's shares fell by about 1 percent. Investors appeared to focus on the company’s forecast of higher adjusted interest expenses in 2027, with an expected increase of $40 million to $60 million. JPMorgan analysts noted that profit-taking could pressure the stock, which had gained roughly 17 percent year to date, and that rising interest costs might weigh on future earnings estimates.

Overall, IHG’s performance in the third quarter reflects a complex environment where strong demand from U.S. travelers and certain regional markets helped offset ongoing challenges related to geopolitical instability, higher costs, and shifting travel behaviors.