IHG Posts Double-Digit Profit Growth But Shares Drop

Shares in InterContinental Hotels Group (LON: IHG) have declined as much as 2.1% on Tuesday, touching an intraday low of 150.95p and trading around 152.25p, down from Monday’s close of 155.55p, even as the hotel giant posted strong half-year results.

For the six months to 30 June 2026, IHG reported operating profit from reportable segments of $665m, up 10% year-on-year, while adjusted earnings per share rose 13% to 274.7¢. Revenue from the fee business climbed 7% to $971m, and fee margin expanded 1.2 percentage points to 65.9%, as revenue growth outpaced a 4% rise in costs.

Trading metrics remained robust, with global RevPAR up 4.1%, led by the Americas (+4.8%), alongside gains in EMEAA (+3.0%) and Greater China (+3.1%).

The group also reported record development activity, opening 31,500 rooms across 197 hotels — up 8% year-on-year excluding the 2025 Ruby brand acquisition — while signings rose 8% organically to 49,200 rooms. IHG’s global pipeline now stands at 348,000 rooms, representing 33% of its existing 1.05 million-room estate.

The board lifted the interim dividend by 10% to 64.5¢ per share and confirmed it remains on track to return more than $1.2bn to shareholders in 2026 through dividends and buybacks, equivalent to 5.8% of its market capitalisation at the start of the year. Net debt rose 9% to $3,663m, partly reflecting $564m in shareholder distributions.

CEO Elie Maalouf highlighted resilience amid “ongoing impacts from the Middle East conflict,” including disruption to international travel flows, though he said these were being offset by demand growth elsewhere. Despite the upbeat guidance, investors appeared cautious, pushing shares lower on the day.