IHG forecasts 13% EPS growth for H1 2026 on record pipeline

InterContinental Hotels Group (IHG) on Tuesday unveiled first-half 2026 earnings guidance projecting a 13% increase in earnings per share, reportedly driven by a record global development pipeline.

The company’s latest investor presentation highlighted a development backlog reportedly exceeding 1,000 properties, a 20% year-over-year rise, as the group accelerates expansion across key markets. IHG attributed the growth to strong demand for its core brands, including Holiday Inn, Crowne Plaza and Regent, alongside sustained recovery in international travel.

Chief Executive Keith Barr reportedly emphasized the pipeline’s role in offsetting macroeconomic pressures, including elevated interest rates and inflationary costs. The forecast reportedly assumes no material deterioration in global economic conditions, with revenue per available room (RevPAR) expected to remain resilient amid shifting travel patterns.

Analysts noted that IHG’s development surge reportedly aligns with broader industry trends, where hotel groups prioritize asset-light models to reduce capital exposure. The group’s fee-based revenue, derived from management and franchise agreements, is reportedly projected to underpin earnings growth even as owned and leased properties face higher operating expenses.

IHG’s guidance reportedly follows a first-quarter update that signaled steady recovery in business travel and leisure demand, particularly in Asia-Pacific and the Americas. The company maintained its full-year 2024 outlook, citing stable occupancy rates and pricing power in premium segments.

Investors are expected to scrutinize the sustainability of the development pipeline amid rising construction costs and potential labor shortages in hospitality. The group’s ability to convert new projects into operational properties will be critical in validating the reportedly 13% EPS growth projection for the first half of 2026.