InterContinental Hotels Group reported that its recent quarterly room revenue exceeded estimates as global travel demand showed signs of recovery, driven in part by anticipation of the upcoming U.S. soccer World Cup and broader tourism rebounds in major markets.

Despite three consecutive declines earlier this year, the hospitality firm said that event-driven travel and improved leisure occupancy helped narrow revenue pressures.

Company executives said that international travel trends are strengthening, although corporate travel remains uneven. Investors responded positively, with shares gaining modestly on Tuesday.

The World Cup’s expected influx of visitors has buoyed forward bookings across key cities in the United States, signalling strong short-term demand for hotel capacity.

Market analysts said that major sporting events can have multiplier effects on travel-linked revenues and related sectors such as retail and transportation.

Despite the recent rebound, InterContinental Hotels Group said that broader challenges in the hospitality industry such as labour costs and regional demand disparities continue to temper overall performance.

Management emphasised that strategic pricing and network optimisation remain focus areas for growth.

Regional travel trends varied, with stronger leisure demand in Europe and North America, while parts of Asia saw slower activity due to holiday closures.

Investors said that sustained travel momentum may hinge on broader economic conditions and consumer confidence.

Looking ahead, hospitality and travel sectors will be watching how consumer spending and event-driven travel trends evolve, particularly as global sporting and cultural calendars shape demand patterns.

Source: Reuters