Earnings call transcript: IHG posts strong H1 2026 growth as shares slip

IHG Hotels & Resorts reported a 7% rise in total segment revenue to $1.255 billion in the first half of 2026, while adjusted earnings per share increased by 13% to 274.7 cents. The company's fee margin expanded by 120 basis points to 65.9%, and operating profit from reportable segments grew by 10%. Despite this strong performance, the stock declined in after-hours trading by 1.99% to $152.53, down from $155.63 at the close of regular trading.

IHG attributed its growth to broad-based demand, disciplined cost control, and a diverse portfolio of 21 brands operating in over 100 countries.

Regional performance was mixed, with the Americas leading with 4.8% RevPAR growth, driven by a robust U.S. economy. EMEAA and Greater China also showed positive growth, but at a slower pace due to factors such as regional conflicts and holiday timing. IHG's management highlighted that the company's scale and diverse brand mix help drive growth across regions and customer segments.

In terms of outlook, IHG expects high single-digit fee revenue growth, margin expansion of 100 to 150 basis points, and adjusted EPS growth of 12% to 15% in the medium to long term. The company is also focused on deploying new technology investments, including a cloud-based property management system, in 4,000 hotels by the end of 2026.

CEO Elie Maalouf emphasized IHG's strong financial performance, while CFO Michael Glover highlighted the company's ability to maintain tight cost control while expanding fee revenue. The company has also completed 42% of its $950 million share buyback program, with total shareholder returns expected to exceed $1.2 billion in 2026.