InterContinental Hotels Group Beats First-Half Profit Estimates

InterContinental Hotels Group Plc reported a first-half profit before tax of $578 million, surpassing analyst expectations of $560.1 million. The hotel operator attributed the growth to a strengthening U.S. economy and increased travel for the FIFA World Cup, which raised revenue per available room in the Americas by 4.8%.

Chief Financial Officer Michael Glover noted that high employment levels, consistent consumer spending, and wages keeping pace with inflation drove the domestic performance. The company also saw strong results in Europe, Africa, and Greater China.

Chief Executive Officer Elie Maalouf stated that demand growth in these regions should fully offset travel disruptions caused by the war in Iran and broader Middle East tensions. This performance contrasts with competitor Accor SA, which reported softer-than-expected second-quarter revenue per available room due to economic weakness in China and Germany.