IHG REPORTS 10% PROFIT RISE AS U.S. TRAVEL GROWTH OFFSETS MIDDLE EAST IMPACT

IHG, the hotel group that owns Holiday Inn, Holiday Inn Express, Crowne Plaza and Six Senses, reported operating profits from reportable segments rose 10% in the first half of the year to $665 million. Revenue from reportable segments increased 7% to $1.3 billion, whilst global revenue per available room grew 4.1%. CEO Elie Maalouf attributed the growth to rising wealth among middle-class consumers who are prioritising spending on experiences over goods.

The company's growth reflected regional variation in trading conditions. Revenue per available room expanded 4.4% in the first quarter but slowed to 3.5% in the second quarter as the impact of conflict in the Middle East region affected travel demand. IHG said accelerated growth in the U.S., Asia Pacific and Europe offset the disruption from the Middle East. Maalouf told CNBC that the U.S. had been a "standout" performer, underpinned by strong employment levels, wage growth and continued consumer spending on experiences.

IHG's shares fell nearly 1.9% following the announcement. Maalouf noted that the company's expanding portfolio of new hotels had experienced strong demand, particularly amongst wealthier consumers. The results suggested that whilst geopolitical disruption affected some markets, demand for hotel experiences remained robust in regions with favourable economic conditions.