Skip to content

Search

Latest Stories

IHG's U.S. RevPAR dips 1.9 percent in first quarter of 2024

Globally, 46 hotels opened in the first quarter, marking an 11.1 percent year-over-year increase

IHG's U.S. RevPAR dips 1.9 percent in first quarter of 2024

IHG Hotels & Resorts’ first-quarter 2024 RevPAR in the Americas declined by 0.3 percent year-over-year. This was driven by a 1.9 percent decrease in U.S. RevPAR, countered by an 11.3 percent increase in Canada, Latin America, and the Caribbean combined. Occupancy dropped to 63.1 percent, down by 1.1 percentage points, while ADR in the Americas rose by 1.5 percent.

Meanwhile, IHG’s global RevPAR increased by 2.6 percent in the first quarter and the company opened 6,200 rooms (46 hotels) globally, marking an 11.1 percent year-over-year increase after adjusting for Iberostar, IHG said in a statement.


“Global RevPAR in the first quarter of 2024 continued to grow, up 2.6 percent, reflecting the strength of our globally diverse footprint,” said Elie Maalouf, IHG Hotels & Resorts’ CEO. “There was an impressive performance in EMEAA, which was up nearly 9 percent. The Americas, having already recovered very strongly, was broadly flat due to some adverse calendar timing, and Greater China grew by 2.5 percent and will continue to benefit from returning international inbound travel this year. Global occupancy moved up to 62 percent and ADR increased by a further 2 percent as pricing remained robust, reflecting the complete return of leisure, business and group travel.”

First quarter highlights:

  • Gross system size growth is up 5 percent year-over-year and up 0.7 percent year-to-date.
  • Net system size grew 3.4 percent year-over-year and is flat year-to-date; adjusting for Iberostar, net system size is up 3.2 percent year-over-year and flat year-to-date.
  • The global system at the end of the quarter comprised 946,000 rooms and 6,368 hotels, with 66 percent across midscale segments and 34 percent across upscale and luxury.
  • Signed agreements for 17,700 rooms and 129 hotels in the first quarter, reflecting a 7.1 percent year-over-year increase; the global pipeline at the end of the quarter consisted of 305,000 rooms and 2,079 hotels, up 6.6 percent year-over-year.
  • Implemented changes to system fund arrangements, aimed at improving owner economics and growing IHG’s ancillary fee streams.

Americas revenue decline

IHG said that group demand was strongest in the Americas, with leisure also experiencing year-over-year growth, while business revenue saw a slight decrease. The timing of Easter led to lower demand in late March, particularly for business travel, but this was followed by increased demand in April. Consequently, U.S. RevPAR has outperformed last year over the past eight weeks.

Gross system growth reached 2.3 percent year-over-year, with year-to-date growth at 0.6 percent, and 3,100 rooms and 26 hotels opened in the quarter. Net system size growth was 1 percent year-over-year and flat year-to-date. Additionally, the pipeline saw the addition of 5,100 rooms with 61 hotels, reflecting a signing pace similar to that of the same quarter last year.

Meanwhile, signings included nine Garner and eight Avid hotels, along with 11 hotels within the Holiday Inn brand family, 25 across IHG’s extended-stay brands, and five within Luxury & Lifestyle.

46 new hotels

IHG opened more than 6,200 rooms across 46 hotels in the first quarter globally, and signed nearly 18,000 rooms across 129 properties to increase the company’s pipeline by 6.6 percent year-over-year.

“Compared to the same quarter last year, room openings rose 11 percent adjusting for Iberostar, and signings grew 7 percent,” said Maalouf. “‘Quicker to market’ conversions generated more than 35 percent of openings and signings in the quarter, reflecting the attractiveness of our brands and enterprise platform.”

Maalouf said that the company's system fund arrangements will enhance economics for owners, while sustained growth in ancillary fee streams will deliver value aligned with strategic priorities.

“The combined power of our platform and efficiency of our operating model will continue to drive IHG forward,” he added. “We are excited about the future and our ability to capitalize further on our strengths, scale and leading positions, and on the attractive, long-term demand drivers for our markets.”

In April, IHG announced an agreement with NOVUM Hospitality to double its presence in Germany through conversions, bolstering its position in a vital travel market. The deal adds 119 hotels with 17,700 rooms to IHG's global system, enhancing confidence in the company's net system growth outlook.

Hilton reported $268 million in net income for the first quarter of 2024, with system-wide comparable RevPAR up 2 percent from Q1 2023. Meanwhile, Wyndham's first quarter net income fell to $16 million from $67 million in the same period of 2023.

More for you

Trump reviewing 55 million us visas
Getty Images

Trump reviewing 55 million visas

Summary:

  • The Trump administration says it is reviewing more than 55 million visa holders.
  • Reviews cover a wide range of visas for law enforcement and overstay violations.
  • The administration also suspended worker visas for foreign commercial truck drivers.

THE TRUMP ADMINISTRATION is reviewing more than 55 million people who hold valid U.S. visas for potential violations. It is expanding a policy of “continuous vetting” that could result in revocation and deportation.

Keep ReadingShow less
Peachtree Funds Rio Las Vegas Renovations | $176M CPACE Loan
Photo credit: Hyatt Hotels Corp.

Peachtree originates retroactive CPACE loan for Rio Vegas

Summary:

  • Peachtree Group originated a $176.5 million retroactive CPACE loan for a Las Vegas property.
  • The deal closed in under 60 days and ranks among the largest CPACE financings in the U.S.
  • The company promotes retroactive CPACE funding for commercial real estate development.

PEACHTREE GROUP ORIGINATED a $176.5 million retroactive Commercial Property Assessed Clean Energy loan for Dreamscape Cos.’s Rio Hotel & Casino in Las Vegas. The deal, completed in under 60 days, is its largest credit transaction and one of the largest CPACE financings in the U.S.

Keep ReadingShow less
Global hotel construction pipeline reaches record 15,871 projects in Q2 2025, with U.S. and Dallas leading growth
Photo Credit: iStock

Report: Global pipeline hits 15,871 projects

Summary:

  • Global pipeline hit a record 15,871 projects with 2.4 million rooms in Q2.
  • The U.S. leads with 6,280 projects; Dallas tops cities with 199.
  • Nearly 2,900 hotels are expected to open worldwide by the end of 2025.

THE GLOBAL HOTEL pipeline reached 15,871 projects, up 3 percent year-over-year, and 2,436,225 rooms, up 2 percent, according to Lodging Econometrics. Most were upper midscale and upscale, LE reported.

Keep ReadingShow less
HAMA Launches 20th Student Case Competition in USA
Photo Credit: iStock

HAMA launches 20th student case competition

Summary:

  • HAMA is accepting submissions for its 20th annual student case competition.
  • The cases reflect a scenario HAMA members faced as owner representatives.
  • Teams must submit a financial analysis, solution and executive summary.

THE HOSPITALITY ASSET Managers Association is accepting submissions for the 20th Annual HAMA Student Case Competition, in which more than 60 students analyze a management company change scenario and provide recommendations. HAMA, HotStats and Lodging Analytics Research & Consulting are providing the case, based on a scenario HAMA members faced as owner representatives.

Keep ReadingShow less
Stonebridge hotel management expansion
Photo credit: Stonebridge Cos.

Stonebridge adds Statler Dallas to managed portfolio

Summary:

  • Stonebridge Cos. added the Statler Dallas, Curio Collection by Hilton, to its managed portfolio.
  • The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group.
  • The property is near Main Street Garden Park, the Arts District and the Dallas World Aquarium.

STONEBRIDGE COS. HAS contracted to manage the Statler Dallas, Curio Collection by Hilton in Dallas to its managed portfolio. The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group, led by Mehrdad Moayedi.

Keep ReadingShow less