IHG reported half-year results on Tuesday, and despite the Mideast volatility, the group expects to meet its profit targets this year.
CEO Elie Maalouf acknowledged uncertainty because of the U.S.-Iran war, "including some wider disruption to international travel flows." But he said IHG continues "to expect these to be fully offset by growth in demand elsewhere."
IHG saw its Middle East revenue per available room fall 19% year-over-year in the second quarter. But the region accounted for only a small part of its business.
Meanwhile, the number of Americans traveling to Europe rose 5% this year, and their spending in that region "more than offset the impact in the Middle East," Maalouf said.
In an interview with Skift's Luke Martin, Maalouf acknowledged that many hotel owners face margin pressure due to rising costs. But he pointed to stronger revenue growth this year as helping ease the problem.
“Revenue is ultimately the tonic that heals everything because you can cover a lot of costs with a little bit of revenue increase,” he said.
Skift Global Forum
Recalibration is the word every travel CEO is using. This is the room where they define what it actually means.
This year's speakers include the CEOs of Hilton, Expedia, Booking Holdings, and Accor, plus OpenAI chairman Bret Taylor, gathering September 22–24 at North Javits, NYC.
CAPITAL ONE TRAVEL + SKIFT
Capital One Travel is betting that curated hotel collections can help premium travelers find stays that better match how they want to travel.
EDITOR’S PICKS
We want to hear from you. How do you make business decisions — and what role does content play? Your answers directly inform what Skift builds next. Take the Survey
PODCAST
One year after Marriott paid $355 million for CitizenM, half of all guests across the portfolio are now Marriott Bonvoy members.
In this clip from Good Morning Hospitality, A Skift Podcast: Hotels Edition, Sarah Dandashy and Steve Turk break down what that number actually reveals about CitizenM's pre-acquisition business, why the CEO who once resisted Marriott audits now loves them, and why CitizenM is already looking to expand within the Marriott system.
SKIFT TRAVEL 200
How are public accommodations companies performing around the world? The Skift Travel 200 pulls the data you need to know to understand the market. Paid subscribers get full access here.
