Global hotel giant InterContinental Hotels Group (IHG) reported a 10% increase in profit, driven by rising demand from the middle-class consumer base and the World Cup, according to key highlights from the 2026 second-quarter earnings report. Chief Executive Elie Maalouf stated that growing household wealth is encouraging consumers to spend more on experiences rather than physical goods. Steady revenue growth in the United States, Asia-Pacific, and European markets has offset the negative impact of the Middle East conflict.

InterContinental Hotels Group (IHG), the British company behind brands such as Holiday Inn, Holiday Inn Express, Crowne Plaza, and Six Senses, noted that a growing middle class is pushing travel demand higher despite the disruption from the Middle East conflict. On Tuesday, the group disclosed that operating profit from its reportable segments rose 10% year-over-year to $665 million in the first half of the year. Segment revenue increased 7% to $1.3 billion, while global revenue per available room (RevPAR) grew by 4.1%. RevPAR rose 4.4% year-over-year in the first quarter, but growth slowed to 3.5% in the second quarter, dragged down by the Iran-US conflict and a sluggish travel market in the Middle East. Following the announcement, IHG shares briefly fell nearly 1.9%. The company stated that accelerated growth in the US, Asia-Pacific, and Europe made up for the business disruption caused by the Middle East conflict.

IHG Chief Executive Elie Maalouf said on Tuesday's "Squawk Box Europe" that the results reflect a "clear consumer preference for experience spending over goods spending." "Globally, people with rising living standards and wealth, those nearing retirement with stable careers, and a growing middle class are willing to spend more on experiences rather than goods, and we are right at the core of the experience economy," he added. He noted that the US market is performing "particularly strongly," supported by a solid economic backdrop: high employment rates, rising wages, and consumers continuing to spend, especially on experiences. Maalouf mentioned that demand for the group's many newly opened hotels is robust, with particularly strong demand from high-net-worth guests. From mid-June onwards, the World Cup has boosted hotel demand in the US. Maalouf believes the tournament has brought "significant commercial benefits" to IHG. He stated that sports events, concerts, and theatre performances will continue to provide growth momentum for the group's business. The Middle East conflict, which began on February 28, has impacted global tourism, with thousands of flight cancellations, airlines facing soaring jet fuel costs, and hotel booking volatility. Maalouf explained that the Middle East market accounts for only 5% of IHG's total business scale. "We adhere to a strategy of regional diversification. Once there is a business disruption in one part of the world, the group can typically rely on strong business from other regions to fill the gap. That was the case in the first half, and we expect this trend to continue into the second half of the year."