Holiday Inn owner IHG’s room revenue grows 1.5% on firm European summer demand

(Reuters) -Holiday Inn owner InterContinental Hotels Group posted third-quarter room revenue growth of 1.5% on Tuesday, as summer demand in Europe offset a subdued U.S. market and dogged weakness in China.

Growth in revenue per available room (RevPAR) – a key performance measure for the hotel industry – was driven by a 4.9% growth in the Europe, the Middle East, Africa and Asia (EMEAA) region in the quarter ended Sept. 30.

However, in China, RevPAR was down 10.3% in the absence of the strong recovery the company had seen in domestic travel in the same period last year, IHG said.

Still, the company said it expects to close 2024 in line with market expectations.

For 2024, analysts on average expect the firm to post a RevPAR growth of 2.6%, according to a company compiled consensus.