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IHG reiterates FY guidance after RevPAR ticks up in Q3

(Sharecast News) - Holiday Inn owner InterContinental Hotels Group said on Thursday that it remained on track to meet full year profit and earnings expectations after revenue per available room ticked up 0.1% in the three months ended 30 September. On a year-to-date basis, IHG said global revenue per available room was 1.4% higher, up 0.8% in the Americas and 3.8% in Europe, the Middle East and Africa. China, on the other hand, saw a 2.6% decline in YTD RevPAR.

IHG said it had delivered "another strong quarter of development activity", with openings up 17% and signings up 18% as the group opened 14,500 rooms across 99 hotels and signing 22,600 rooms over 170 hotels.

The FTSE 100-listed firm also highlighted that $700m of its $900m share buyback programme has now been completed, reducing its share count by 3.9%, and said it was currently on track to return over $1.1bn to shareholders in 2025 through share repurchases and dividend payments

IHG added that it expects to finish 2025 in line with consensus profit and earnings expectations.

Chief executive Elie Maalouf said: "Long-term structural drivers of both travel demand and supply remain compelling, and while near-term macro-economic challenges persist in some markets, others are showing improvement or sustained growth. We continue to demonstrate IHG's ability to capture demand across geographies, chain scales and stay occasions, which forms the foundation of resilient strength in our business.

"The power of our enterprise platform is clearly showing in 2025 and drives our growth algorithm. This delivers compound earnings growth by increasing fee revenues through the combination of RevPAR, system expansion and ancillary fee streams, which, together with a highly efficient cost base, helps to grow margins and, along with our strong cash generation, allows us to reinvest in our business and return surplus capital to shareholders. We remain confident in a strong outcome for the year and further delivery beyond."

Reporting by Iain Gilbert at Sharecast.com

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