Key Highlights

  • InterContinental Hotels Group (LSE:IHG) continued daily share Buybacks this week, buying 19,833 shares on 4 November at an average of about $172.40.
  • The FTSE 100 hotel group now has about 146.8 million shares in issue, excluding 5,431,782 held in treasury.
  • Third-quarter global RevPAR accelerated to 5.3%, led by 6.8% growth in the Americas.
  • US occupancy reached 73.9%, the highest level since 2017.
  • IHG opened 92 hotels and signed 164 in the third quarter, with its system now at 1.06 million rooms across 7,186 hotels.
  • Management is confident of meeting 2026 consensus expectations, with Earnings Per Share growth around the top of its 12% to 15% target range.

Why InterContinental Hotels Group Is in Focus Today

InterContinental Hotels Group (LSE:IHG), owner of brands including InterContinental, Holiday Inn, Crowne Plaza, Kimpton and Hotel Indigo, remains one of the most watched travel stocks in London on Thursday, 5 November 2026. The FTSE 100 company is buying back its own shares every trading day, and the average price paid has been rising, from about $166.50 on 26 October to about $170 on 3 November and roughly $172.40 on 4 November.

That upward drift reflects a recovery in sentiment after the third-quarter trading update on 22 October. The shares fell nearly 3% on the day of that update, as investors focused on weakness in Greater China and the Gulf, but have since regained ground as the strength of the US Business and the size of Capital returns came back into focus. Following the latest purchases, InterContinental Hotels Group (LSE:IHG) has 146,803,323 shares in issue, excluding treasury shares, and all repurchased shares are being cancelled.

Third-Quarter Trading Accelerated

Global Revenue per available room, the key measure of hotel performance, rose 5.3% in the third quarter, faster than the 4.6% growth recorded for the year to date. Average daily rate increased 3.9% and occupancy rose 0.9 percentage points. Group bookings were the strongest segment, with rooms revenue up 10%, while leisure grew 5% and business travel 4%.

The Americas region delivered RevPAR growth of 6.8%, with the US up 6.9%. US occupancy reached 73.9%, the highest since 2017, supported by a strong economy and IHG’s enterprise platform. Europe, the Middle East, Asia and Africa improved sharply to 5.0% growth, from just 0.6% in the second quarter, with the UK up 3% and continental Europe up 4%. The Middle East recovered to broadly flat after a 19% decline in the previous quarter, although the six Gulf states still recorded a 12% fall.

Greater China was the weak spot, with RevPAR down 3.3% as adverse weather and changes to public holiday timings hit demand. Tier 2 to 4 cities fell 7.5%, while Tier 1 cities were broadly flat and Hong Kong and Taiwan grew strongly.

Pipeline and System Growth

InterContinental Hotels Group (LSE:IHG) runs an asset-light model, earning fees from franchised and managed hotels rather than owning most properties. Growth therefore depends on adding hotels to its system. In the third quarter, IHG opened 12,900 rooms across 92 hotels, taking openings for the year to 44,400 rooms across 289 hotels. It signed 21,100 rooms across 164 hotels, taking signings for the year to 70,300 rooms across 516 hotels. Gross system growth was 6.3% and net system growth 4.9%. The global system now totals about 1.06 million rooms across 7,186 hotels.

Guidance and Capital Returns

Management said it is confident of achieving 2026 consensus expectations, which imply global RevPAR growth of about 3.5% and net system growth of about 4.8%. It added that adjusted earnings per share growth should be around the top end of its medium-term target of 12% to 15% a year on average, and that the stronger third quarter should flow through to profit.

The buyback is being carried out under instructions issued in February 2026. Because the business generates strong Cash Flow and requires little capital, IHG has consistently returned surplus cash through buybacks and dividends, steadily shrinking its share count and boosting earnings per share.

Risks to Consider

Hotel Demand is sensitive to the economic cycle, and a slowdown in the US would hit the region driving most of IHG’s growth. Greater China remains weak, and conflict or instability in the Middle East can disrupt travel. IHG also carries high Debt relative to equity, a result of its capital return policy, and its valuation already reflects a premium for quality.

What Investors Are Watching Next

Investors will track daily buyback disclosures, US travel trends during the holiday season and any signs of recovery in Greater China and the Gulf. The full-year 2026 results, expected in February 2027, will confirm earnings per share growth, set the final Dividend and reveal the size of next year’s buyback. Pipeline growth, new Brand launches and fee margins will also be key for InterContinental Hotels Group (LSE:IHG).