This Hotel Giant Just Reversed Three Quarters of Decline — and Revealed an AI Tool That Could Change How Guests Book

IHG Hotels & Resorts posted solid first-quarter results for 2026, with Americas RevPAR climbing 3.6% year over year — a notable turnaround after three consecutive quarters of decline. Global RevPAR rose 4.4%, driven by what CEO Elie Maalouf described as robust economic activity including record employment levels and continued real wage growth.

But the numbers were only part of the story. Maalouf also revealed that IHG has made significant progress developing an AI-powered conversational search tool that will launch on its website and mobile app in the coming months. He called it a development that could transform how guests discover and book stays across the company's 7,000 hotels.

The AI push comes as competitors including Hilton and Marriott have also announced AI initiatives during their respective Q1 earnings calls, signaling an industry-wide race to modernize the booking experience.

Development Momentum

On the development front, conversions represented 53% of IHG's signings in Q1. The company launched Noted Collection in February, a conversion-friendly brand targeting the upscale to upper upscale segment. IHG reported 5% year-over-year net system growth and added 21,400 rooms to its pipeline, a 6% increase.

All three demand drivers — group meetings, business travel, and leisure — contributed to RevPAR growth, with occupancy increasing by 1.5 percentage points. Maalouf said he is confident about achieving full-year growth forecasts.

Despite headwinds including rising oil prices and disruptions to international travel flows, IHG executives noted that travelers remain undeterred. CFO Michael Glover said the company is not seeing evidence that higher fuel costs are keeping guests from booking trips.