Group 1: Global Hotel Industry Trends - The tourism industry in Europe, the Middle East, and Africa is experiencing record growth, with Africa's tourism sector seeing a double-digit growth rate in the first half of the year, particularly in South Africa and Egypt [2][3] - Mino International Group plans to develop and manage 50 new hotels in Egypt in collaboration with Sunrise Resorts and Hotels, with the first phase including four flagship hotels [2] - Hilton Group announced its expansion into sub-Saharan Africa, with plans to triple its hotel count on the continent to over 160 hotels in the coming years [3] Group 2: Asia-Pacific Market Developments - The Asia-Pacific hotel industry experienced a performance surge during the "super golden week" holiday, with significant increases in occupancy rates and revenue per available room (RevPAR) in Japan [5][6] - Huazhu Group and Jinjiang Hotels reported a combined guest reception exceeding 23.5 million during the holiday, with Huazhu achieving a 36% year-on-year increase in guest numbers [6] Group 3: Hotel Group Executive Changes - Several hotel groups announced executive appointments, including Shangri-La Group appointing Xu Haochun as Chief Development Officer for China and Marriott International naming Gautam Bhandari as Chief Development Officer for the Asia-Pacific region [9][10] Group 4: Third Quarter Financial Reports - Among ten monitored hotel groups, only half reported year-on-year profit growth for Q3 2025, with Jinjiang Hotels achieving a net profit of approximately 375 million yuan, a 45.45% increase [12] - Major international hotel groups like Marriott, InterContinental, and Hyatt saw RevPAR growth of less than 1%, while Wyndham experienced a 5% decline [12][15] Group 5: Hotel Asset Transactions - In October, 46 hotel assets were listed for sale or auction, with nine hotels having auction prices exceeding 100 million yuan, but no hotels were sold during the month [16][17] Group 6: Hotel Openings and Signings in China - In October, 245 new hotels opened in China, a decrease from 293 in September, indicating a market adjustment post-holiday [18] - The luxury and high-end hotel segment saw significant new openings, including multiple projects from Hilton and Accor [19][20] Group 7: Luxury Hotel Rankings and Analysis - The luxury hotel sector is focusing on brand rejuvenation and consumer engagement, with brands like Rosewood and Shangri-La launching new initiatives to attract younger generations [24][25] - The ABN Index for luxury hotels showed a decline in most metrics except for media and new media indices, indicating a need for improved customer engagement strategies [31][32]

Core Insights - InterContinental Hotels Group (IHG) has showcased its extensive growth and presence in the Chinese market at the China International Import Expo for the eighth consecutive year [1] - The company has introduced 13 brands, including luxury, premium, and quality segments, with over 1,400 hotels either opened or under construction across more than 200 cities in China [4] - IHG's Holiday Inn brand, the first to enter the Greater China region, has unveiled a new generation of product design to meet evolving consumer demands [4] Group 1 - IHG emphasizes its commitment to the Greater China market, reflecting confidence in responding to new market demands through innovative offerings [4] - The CEO of IHG Greater China highlighted the importance of the expo as a platform for linking global innovation with local market insights, while also addressing industry trends and consumer changes [4] - The company aims to leverage high-quality supply and service upgrades, digital transformation, and cultural tourism integration to enhance brand value and drive innovation in the hotel industry [4]

Group 1 - InterContinental Hotels Group (IHG) has showcased its extensive growth and presence in the Chinese market at the China International Import Expo for the eighth consecutive year, highlighting its commitment to the region [1] - IHG has introduced 13 brands, including luxury, upscale, and quality series, with over 1,400 hotels either opened or under construction across more than 200 cities in China, catering to diverse guest needs [1] - The Holiday Inn brand, IHG's first to enter the Greater China region, has unveiled a new generation of product design at the expo, reflecting the company's confidence in meeting evolving market demands [1] Group 2 - The expo serves as a crucial platform for global innovation and local market connections, providing insights into industry trends and consumer changes, according to Daniel Aylmer, CEO of IHG Greater China [2] - Aylmer emphasized that China's 14th Five-Year Plan focuses on high-quality supply and service upgrades, digital transformation, and enhancing internationalization, which will create broader opportunities for innovation and brand value enhancement in the hotel industry [2] - IHG aims to lead with innovation, continuously optimizing product and service experiences, stimulating new brand momentum, and developing new destinations to inject lasting energy into the industry's high-quality development [2]

Group 1 - Marriott International and InterContinental Hotels Group have both participated in the China International Import Expo for eight consecutive years, showcasing their brands and innovations [2] - Marriott International has achieved over twofold growth in its scale in China since its first participation in 2018, with over 660 hotels and more than 90,000 employees serving approximately 260 million Marriott Bonvoy members [5] - The Fairfield by Marriott brand is set to surpass 100 hotels in China, reflecting strong demand in the select service market, with 50 hotels opened in 2023 alone [5][7] Group 2 - InterContinental Hotels Group is celebrating its 50th anniversary in Greater China, with the Holiday Inn brand introducing a new generation of product design to meet evolving consumer demands [7][9] - The group has introduced 13 brands in Greater China, with over 1,400 hotels either opened or under construction, covering more than 200 cities [7] - The CEO of InterContinental Hotels Group in Greater China emphasized the importance of high-quality supply and service upgrades, digital transformation, and the integration of culture and tourism for the hotel industry's innovative development [9]

Industry Overview - The US hospitality market is valued at USD 247.45 billion in 2025 and is projected to reach USD 313.87 billion by 2030, growing at a CAGR of 4.9% [1] - The growth is driven by increasing demand for travel and accommodation services, particularly domestic tourism and bleisure travel [1][3] Key Trends - **Growing Domestic and Bleisure Travel**: Domestic leisure travel is dominating the market, with bleisure travel gaining traction as business trips are extended for leisure purposes, leading to increased hotel occupancy and revenue [3] - **Rise of Extended-Stay and Hybrid Accommodations**: There is a growing preference for extended-stay hotels and hybrid models that combine serviced apartments with hotel amenities, catering to diverse traveler preferences [4] - **Technology and Digital Integration**: The adoption of technology, including online booking platforms and AI-powered tools, is enhancing guest experiences and operational efficiency [5] - **Strategic Expansion and Resilient Infrastructure**: Operators are utilizing asset-light strategies like franchising to expand while investing in climate-resilient infrastructure to mitigate environmental risks [7] Market Segmentation - The market is segmented by various factors including chain scale, service type, end-user categories, and distribution channels, allowing operators to target niche markets effectively [8] Key Players - Major players in the US hospitality market include Marriott International, Hilton Worldwide, Wyndham Hotels & Resorts, InterContinental Hotels Group (IHG), and Choice Hotels International, each with distinct market strategies and service offerings [11] Conclusion - The US hospitality market is poised for steady growth, driven by evolving traveler expectations and strategic adaptations by market participants, presenting significant opportunities for investment and development [10]

Core Points - IHG Hotel and Resorts held a conference call to discuss their third quarter trading update for 2025, featuring key executives including the CEO and CFO [1] Group 1: Company Overview - The call was led by Stuart Ford, Senior Vice President and Head of Investor Relations, indicating a structured approach to investor communication [1] - Elie Maalouf, the Chief Executive Officer, and Michael Glover, the Chief Financial Officer, were present to provide insights into the company's performance [1] Group 2: Forward-Looking Statements - The company reminded listeners that forward-looking statements may be made during the call, which are subject to various risks and uncertainties [2] - Analysts and institutional investors were instructed to refer to the company's SEC filings for factors that could lead to actual results differing from those expressed [2]

Financial Data and Key Metrics Changes - Global RevPAR grew by 0.1% in Q3 2025, consistent with Q2 performance, driven by strong trading in EMEA-A and improvement in Greater China [4] - Year-to-date global RevPAR increased by 1.4% [20] - In the Americas, RevPAR decreased by 0.9% in Q3, with the U.S. down 1.6% due to slower trading conditions [4][5] - EMEA-A saw RevPAR growth of 2.8% in Q3, with year-to-date growth at 3.8% [5] - Greater China experienced a 1.8% decline in RevPAR in Q3, an improvement from previous quarters [6] Business Line Data and Key Metrics Changes - Rooms revenue for business days increased by 4% globally, while leisure and groups saw declines of 2% and 4% respectively [7] - System growth included the opening of 14,500 rooms across 99 hotels globally in Q3, marking a 17% year-on-year increase [8] - The Americas' gross system growth was 3.6% year-on-year, with 2,700 rooms opened in Q3 [9] - EMEA-A region achieved gross system growth of 10.4% year-on-year, with 4,200 rooms opened in Q3 [10] - Greater China reported gross system growth of 12.8% year-on-year, with 7,600 rooms opened in Q3 [11] Market Data and Key Metrics Changes - In EMEA-A, RevPAR growth varied by market, with the U.K. up 2.8% and the Middle East up 9.5% [6] - Greater China showed strong growth in Tier one cities, while Tier two to four cities faced declines [7] - The U.S. market continues to experience challenges with government travel down 20% compared to the previous year [5] Company Strategy and Development Direction - The company plans to launch a new collection brand focused on the premium segment, initially targeting the EMEA-A region [17][18] - The new brand aims to expand the company's offerings and attract more owners to its enterprise platform [17] - The company is optimistic about long-term demand drivers, despite short-term challenges in the U.S. market [16][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the return to growth in the U.S. as economic uncertainty subsides [5] - The company remains on track to meet full-year profit and earnings expectations, with consensus for operating profits at $1.259 billion, implying 12% growth [14][15] - Management highlighted strong fundamentals in the U.S. economy, including low unemployment and resilient consumer spending [30][32] Other Important Information - The company is 78% through its $900 million share buyback program, reducing share count by 3.9% [12] - IHG plans to change the currency of its ordinary shares traded on the London Stock Exchange from British pounds to U.S. dollars starting January 2026 [13][14] Q&A Session Summary Question: Net system growth for 2026 and RevPAR outlook - Management is comfortable with consensus expectations for net system growth at around 4% for 2026, supported by strong signings and conversions [24][26] - RevPAR is expected to remain flat in Q4, with management confident in achieving growth in 2026 based on economic fundamentals [28][30] Question: New brand launch and U.S. demand weakness - The new brand launch is focused on the EMEA region due to a larger addressable market of independent hotels [39] - Weakness in U.S. leisure demand is attributed to several factors, including lower international inbound travel and temporary market conditions [44][45] Question: Ruby brand performance and churn rates - Ruby is performing well with five signings and 20 open hotels, with plans for further expansion in the U.S. [59] - Management aims to reduce churn rates to 1.5% over time, with no immediate need for brand refreshes [63] Question: U.S. occupancy and industry dynamics - Management noted that improved revenue management strategies have led to higher rates, leaving room for occupancy growth [71] - The company is optimistic about returning to pre-COVID occupancy levels, despite current challenges in the U.S. market [73]

Financial Data and Key Metrics Changes - Global RevPAR grew by 0.1% in Q3 2025, consistent with Q2 performance, driven by strong trading in EMEA-A and improvement in Greater China [5][6] - Year-to-date global RevPAR increased by 1.4% [22] - In the Americas, RevPAR decreased by 0.9% in Q3, with the U.S. down 1.6% due to slower trading conditions [5][6] - EMEA-A RevPAR increased by 2.8% in Q3, with year-to-date growth at 3.8% [6][7] - Greater China saw a 1.8% decline in RevPAR in Q3, an improvement from previous quarters [7][8] Business Line Data and Key Metrics Changes - Rooms revenue for business days increased by 4% globally, while leisure and groups decreased by 2% and 4% respectively [8] - System growth included the opening of 14,500 rooms across 99 hotels globally, marking a 17% year-on-year increase [9] - The Americas saw a gross system growth of 3.6% year-on-year, with 2,700 rooms opened in Q3 [10] - EMEA-A region experienced a gross system growth of 10.4% year-on-year, with 4,200 rooms opened [11] - Greater China achieved a gross system growth of 12.8% year-on-year, with 7,600 rooms opened [12] Market Data and Key Metrics Changes - In EMEA-A, RevPAR growth varied by market, with the UK up 2.8% and the Middle East up 9.5% [7] - Greater China showed strong growth in Tier 1 cities, while Tiers 2 to 4 faced declines [8] - U.S. government travel remained about 20% lower than the previous year, impacting overall demand [6] Company Strategy and Development Direction - The company plans to launch a new collection brand targeting the upscale to upper upscale segment, initially focusing on the EMEA-A region [19][20] - The new brand aims to complement existing brands like Voco and Vignette Collection, which have seen success in the market [19][20] - The company is optimistic about long-term demand drivers, despite short-term challenges in the U.S. market [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in the U.S. as economic uncertainty subsides [6][18] - The outlook for 2025 includes expectations for 12% EBIT growth and 15% EPS growth [22] - Management highlighted strong fundamentals in the U.S. economy, including employment and consumer spending, as positive indicators for future performance [32][34] Other Important Information - The company is 78% through its $900 million share buyback program, reducing share count by 3.9% [14] - IHG plans to change the currency of its ordinary shares traded on the London Stock Exchange from British pounds to U.S. dollars starting January 2026 [15][16] Q&A Session Summary Question: Net system growth for 2026 and RevPAR outlook - Management is comfortable with a consensus of around 4.5% net system growth for 2025, with strong signings and conversions expected to continue [25][27] - RevPAR for the fourth quarter is expected to be similar to Q3, with short booking windows impacting performance [30][31] Question: New brand launch and U.S. demand weakness - The new brand launch is focused on the EMEA region due to a higher proportion of independent hotels available for conversion [42][43] - Weakness in U.S. leisure demand is attributed to several factors, including lower international inbound travel and economic uncertainties [47][48] Question: Timing of new brand launch and performance in China - Details on the new brand launch will be provided in the coming months, with expectations for continued improvement in China [55][56] Question: Ruby brand performance and churn rates - The Ruby brand is performing well with multiple signings and openings planned [62] - Management aims to reduce churn rates to 1.5% over the long term, with no immediate need for brand refreshes [66][67] Question: Buyback completion - Management is confident in completing the buyback program by the end of the year [67]

Financial Data and Key Metrics Changes - Global RevPAR grew by 0.1% in Q3, consistent with Q2 performance, driven by strong trading in EMEA-A and improvement in Greater China [4] - Year-to-date global RevPAR increased by 1.4% [21] - In the Americas, RevPAR decreased by 0.9% in Q3, with the U.S. down 1.6% due to slower trading conditions [5] - EMEA-A saw RevPAR growth of 2.8% in Q3, with year-to-date growth at 3.8% [5] - The company opened 14,500 rooms across 99 hotels globally in Q3, marking a 17% year-on-year increase [8] Business Line Data and Key Metrics Changes - Rooms revenue for business days was up 4% globally, while leisure and groups were down by 2% and 4% respectively [7] - In the Americas, gross system growth was 3.6% year-on-year, with 2,700 rooms opened in Q3 [9] - EMEA-A gross system growth was 10.4% year-on-year, with 4,200 rooms opened in Q3 [10] - Greater China gross system growth reached 12.8% year-on-year, with 7,600 rooms opened in Q3 [12] Market Data and Key Metrics Changes - In EMEA-A, occupancy increased by 1.6 percentage points to 75.3%, while rate was up 0.6% [5] - Greater China experienced a 1.8% decline in RevPAR in Q3, but occupancy improved by 0.6 percentage points to 64.4% [6] - The Middle East saw a strong 9.5% growth in RevPAR, driven by the UAE [6] Company Strategy and Development Direction - The company plans to launch a new collection brand focused on the premium segment, initially targeting the EMEA-A region [18] - The new brand aims to complement existing brands like Voco and Vignette Collection, which have seen success in conversions [19] - The company is optimistic about long-term demand drivers, with a focus on expanding its portfolio of world-class brands [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in the U.S. as economic uncertainty subsides [5] - The company remains on track to meet full-year profit and earnings expectations, with consensus for operating profits at $1.259 billion, implying a 12% growth [15] - Management highlighted strong fundamentals in the U.S. economy, including low unemployment and resilient consumer spending [31] Other Important Information - The company is 78% through its $900 million share buyback program, reducing share count by 3.9% [12] - IHG intends to change the currency of its ordinary shares traded on the London Stock Exchange from British pounds to U.S. dollars starting January 2026 [13][14] Q&A Session Summary Question: What is the outlook for net system growth in 2026? - Management feels confident about the trajectory of net system growth, with consensus for 2025 at 4.5% excluding the Venetian [24] Question: What are the expectations for RevPAR in the U.S.? - Management indicated that they are comfortable with the consensus for RevPAR, which is around 1.3% for the full year [28] Question: Can you elaborate on the increase in credit card fees? - Management confirmed an increase of about $40 million in 2025, with a gradual increase over the next three years [35] Question: Why is the new brand launching in EMEA and not the U.S.? - The EMEA market has a larger proportion of independent hotels, making it a more attractive area for conversion and collection brands [39] Question: What factors are contributing to the weakness in leisure demand in the U.S.? - Management noted several factors, including lower international inbound travel and the impact of tariffs, but remains optimistic about long-term strength [45]

Financial Data and Key Metrics Changes - Global RevPAR grew by 0.1% in Q3 2025, consistent with Q2 performance, driven by strong trading in EMEAA and improvement in Greater China [4][5] - Year-to-date global RevPAR increased by 1.4% [25] - In The Americas, RevPAR decreased by 0.9% in Q3, with a 1.6% decline in the U.S. due to slower trading conditions [5][6] - EMEAA saw a RevPAR increase of 2.8% in Q3, with year-to-date growth at 3.8% [7][8] - Greater China experienced a 1.8% decline in RevPAR in Q3, an improvement from previous quarters [8][9] Business Line Data and Key Metrics Changes - Rooms revenue for business days increased by 4% globally, while leisure and groups saw declines of 2% and 4% respectively [9] - System growth included 14,500 rooms opened across 99 hotels globally in Q3, marking a 17% year-on-year increase [10] - The Americas had a gross system growth of 3.6% year-on-year, with 2,700 rooms opened in Q3 [12] - EMEAA's system growth was 10.4% year-on-year, with 4,200 rooms opened in Q3 [13] - Greater China achieved a gross system growth of 12.8% year-on-year, with 7,600 rooms opened in Q3 [14] Market Data and Key Metrics Changes - In EMEAA, RevPAR growth varied by market, with strong performance in Southern Europe and a 9.5% increase in The Middle East [8] - The U.S. market continues to face challenges with government travel down 20% compared to the previous year [6] - Demand in Greater China is supported by the growing middle class, despite a decline in RevPAR [9] Company Strategy and Development Direction - The company plans to launch a new collection brand targeting the upscale to upper upscale segment, initially focusing on the EMEAA region [22][23] - The strategy includes expanding the portfolio of world-class brands and enhancing the enterprise platform for owners [22][23] - The company aims to maintain strong development activity, with 2025 projected to be one of the largest years for openings and signings [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term demand drivers despite current slower trading conditions in the U.S. [21][22] - The outlook for 2025 includes expectations for operating profit growth of 12% and adjusted earnings per share growth of 15% [20] - Management highlighted positive economic fundamentals in the U.S., including strong employment and consumer spending [44][45] Other Important Information - The company is 78% through its $900 million share buyback program, which has reduced the share count by 3.9% [16] - A bond issuance of $4.1 billion is outstanding with a blended borrowing cost of around 4.3% [16] - The company plans to change the currency of its ordinary shares traded on the London Stock Exchange from British pounds to U.S. dollars starting January 2026 [17][18] Q&A Session Summary Question: Net system growth outlook for 2026 - Management is comfortable with the consensus of around 4% net system growth for 2026, supported by strong signings and conversions [32][36] Question: RevPAR expectations for 2026 - Management indicated that RevPAR is expected to remain flat in Q4, with a comfortable outlook for 2026 based on economic fundamentals [39][42] Question: Credit card fees increase - Management confirmed an increase of approximately $40 million in credit card fees for 2025, with a gradual increase over the next three years [52] Question: New brand launch details - Management will provide more details on the new brand launch in the coming months, including timing and projections [79] Question: Performance of Ruby brand - The Ruby brand is performing well with five signings since opening and plans for further expansion in the U.S. [89] Question: U.S. market occupancy concerns - Management acknowledged lower occupancy in the U.S. compared to pre-COVID levels but expressed optimism for recovery driven by improved revenue management and economic fundamentals [101][106]