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]

Core Insights - The rise of county-level consumption is driven by economic development and improved infrastructure, leading major brands to expand into these markets [1][2][4] - Sam's Club has opened its fourth store in Suzhou, targeting strong economic counties and cities, with a focus on customized and high-quality products [1] - The county market is becoming increasingly vital, with the county and township market accounting for 38.8% of total retail sales in the first three quarters of the year [2] Group 1: Market Expansion - Major brands, including international hotel chains and coffee shops, are entering county markets due to saturation in first and second-tier cities [3][4] - The hotel industry is seeing significant growth in county tourism, with brands like Hilton and Marriott establishing a presence in these areas [3] - Starbucks has expanded to 7,758 stores in China, covering over 1,000 county-level markets, indicating a competitive push into lower-tier cities [3] Group 2: Economic Factors - The county market offers lower property and operational costs compared to urban centers, making it attractive for businesses [4] - Rapid economic growth, urbanization, and rising income levels in counties are contributing to increased consumer spending [4] - Counties serve as crucial points for rural revitalization, enhancing local attractiveness and investment environments through the presence of high-quality brands [4]

Core Viewpoint - The FTSE 100 Index is experiencing downward pressure as investors assess recent UK macroeconomic data, including GDP, employment figures, and industrial and manufacturing production [1] Group 1: Market Performance - The FTSE 100 Index has retreated to a low of £9,436, indicating a significant decline in investor confidence [1]

Group 1: Autodesk - Autodesk is an application software company serving various industries including architecture, engineering, construction, product design, manufacturing, media, and entertainment, with over 4 million paid subscribers across 180 countries [1] - The company has transitioned to a subscription model, with over 95% of its revenue now recurring, which is expected to drive further top-line growth through upsells and a loyal user base [8] - Autodesk's competitive advantages stem from high switching costs and network effects, making it difficult for users to transition to competing software [7] Group 2: Copart - Copart has become the largest online salvage-vehicle auction operator in the U.S., with its top line growing nearly fivefold since 2009 due to land expansion and increased salvage volume [4] - The company has nearly tripled its land capacity since 2015, focusing on areas prone to natural disasters, which is crucial for handling an influx of salvage vehicles [3] - Copart conducts over 3.5 million transactions annually through its virtual bidding platform, connecting vehicle sellers with over 750,000 registered buyers [5] Group 3: InterContinental Hotels Group - As of the end of 2024, InterContinental Hotels Group operates nearly 990,000 rooms across 19 brands, with a strong presence in both midscale and luxury segments [9] - The company is well-positioned to leverage its brand assets and loyalty program, which has approximately 145 million members, to drive growth despite economic uncertainties [10] - Over 99% of the rooms are managed or franchised, providing a recurring-fee business model with high return on invested capital and significant cancellation costs for property owners [12]

Core Insights - IHG is focusing on growth in major U.S. urban markets and positioning the Ruby brand for cost- and style-conscious travelers [3][5] - The Ruby brand aims to expand to over 120 global hotels in the next decade and more than 250 hotels in the next 20 years [4] - IHG's CEO for the Americas expressed confidence in the Ruby brand's appeal and growth potential in the U.S. market [5][7] Company Strategy - IHG plans to utilize new-builds, conversions, and adaptive reuse to grow the Ruby brand [3] - The company is accelerating conversions to enhance system growth, as noted in its second-quarter earnings report [3] - The Ruby brand is designed to offer essential amenities while eliminating unnecessary extras, catering to guest preferences [4] Market Position - IHG acquired the Ruby brand for approximately $116 million earlier this year, marking it as the company's 20th global brand [7] - Ruby currently has 34 hotels either open or in the pipeline across major European cities, indicating a strong foundation for expansion [7] - The company anticipates growth in the "urban micro" segment in the coming years [5]