(Reuters) -Holiday Inn owner InterContinental Hotels Group (IHG) on Thursday reported a slowdown in global revenue per available room in the second quarter as economic uncertainties dragged on travel demand in the U.S., its largest market.
U.S. President Donald Trump’s tariffs on trade partners and rising geopolitical tensions have rattled the travel and hospitality industry as waning consumer confidence threatens to reverse the post-pandemic recovery.
“While some shorter-term macroeconomic uncertainties remain, many are subsiding,” IHG Chief Executive Elie Maalouf said in a statement, adding that the company remains on track to meet annual profit and earnings expectations.
Amid recession concerns and tighter discretionary spending in the U.S., Marriott lowered its full-year revenue and profit guidance on Tuesday. In contrast, Hilton struck a more optimistic tone, raising its profit forecast for 2025 on the back of a stronger-than-expected recovery in U.S. travel demand.
Despite trade tensions and elevated inflation that dampened spending among cost-conscious consumers, travel companies are now pointing to signs of a rebound in sentiment and bookings in July.
The hotel operator said U.S. revenue per available room (RevPAR) fell 0.9% for the three months ended June 30, compared to 3.5% growth in the first quarter.
Sluggish domestic demand in its Greater China market continued with RevPAR falling 3% in the quarter. Global growth on the same measure for the second quarter came in at 0.3%, compared to 3.2% growth a year prior.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich and Lincoln Feast.)
