IHG Confident in Profit Outlook Amidst Hotel Sector Jitters

by Mia Taylor
Last updated: 2:30 PM ET, Thu May 8, 2025

After a handful of competitors announcing scaled back profit forecasts amid a Trump Slump and fears of a recession, InterContinental Hotels Group (IHG) is holding firm on its outlook.

The company said today that it’s on track to meet analysts’ profit expectations, according to Reuters. Owner of the Holiday Inn brand, IHG also reported growth in U.S. room revenues, besting its competition.

In particular, IHG recorded 3.5 percent growth in U.S. room revenue for the first quarter of 2025. That’s in contrast to a a 1.9 percent decline last year.

That growth figure is better than Hilton’s performance regionally, and Marriott’s in the U.S. and Canada, per Reuters.

Meanwhile, IHG says it’s global revenue growth is on track to continue in the second quarter. Though the company acknowledged softening of some economic barometers.

Separately, IHG said it expects 2025 revenue per available room(REVPAR) to be below expectations of 2.3 percent. Still, analysts suggest that as a mid-market franchise, IHG should remain resilient in an economic slowdown.

Earlier this week, Marriott announced 2025 room revenue growth of just 1.5 percent to 3.5 percent, down from its earlier forecasts of 2 percent to 4 percent, according to Reuters. At the same time, the hotel operator said it's been impacted by a 10 percent drop in nights booked by the U.S. government following Trump's federal staff layoffs.

Hilton shared its 2025 outlook in February. The company showed a slower growth than 2024 and lowered its earnings per share valuation due to a softening leisure travel demand.

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