IHG(US:IHG)2025-10-23 09:30Financial 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]