Key facts
- InterContinental Hotels Group (IHG) reported a revenue slump in its Middle East operations.
- The slump occurred in the second quarter.
- Revenue per available room in the Middle East fell 19%.
- The Iran conflict is cited as the cause of the slowdown.
- Global growth was supported by other markets.
- The FIFA World Cup also supported global growth.
InterContinental Hotels Group (IHG), a major hotelier and owner of brands like Holiday Inn, has reported a substantial revenue decline in its Middle East operations for the second quarter. The company's revenue per available room (RevPAR) in this region saw a sharp decrease of 19%. This slump is directly linked to the geopolitical instability caused by the Iran conflict, which has had a chilling effect on tourism and travel to the area. While the Middle East presented challenges, IHG's overall global performance remained positive. This resilience was largely due to strong contributions from other markets and the beneficial economic impact of the FIFA World Cup, which boosted occupancy and revenue in other regions where IHG operates. The company's diverse portfolio and global reach helped to offset the negative impact of the regional slowdown.