Skift Take

Profitability is basically a foregone conclusion at this point for IHG, given its significant presence in the drive-to and leisure space. Investors now want to see how the company can beef up its growth trajectory coming out of the pandemic.

Series: Early Check-In

Early Check-In

Editor’s Note: Skift Senior Hospitality Editor Sean O’Neill brings readers exclusive reporting and insights into hotel deals and development, and how those trends are making an impact across the travel industry.

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Second quarter earnings season for the hotel industry is wrapping up, but there’s still time for one major company to flaunt its expansion trajectory. UK-based IHG Hotels & Resorts reports earnings Tuesday, and it is highly likely to report a profit like its competitors at Hilton, Marriott, and Accor. While it has higher-end brands like InterContinental and Regent, IHG’s mix of mid-scale brands like Holiday Inn, Avid, and Staybridge cater to the type of drive-to and leisure travel leading the recovery. But the real recovery story to look out for is how much IHG was able to capitalize on the last year and beef up its development pipeline. “What you're going to continue to see is the big three are going to continue to take more and more share of the pipeline,” IHG CEO Keith Barr said in reference to Marriott and Hilton as well as his own company in an interview with Skift last month at the Americas Lodging Investment Summit. Marriott, Hilton, and IHG accounted for 74 percent of the 472 hotels to open in the U.S. in the first half of this year, according to Lodging Econometrics. Each of these companies wants to keep up with that level of momentum. IHG still managed to sign one new hotel deal each day for the first half of last year, and investors will want to see further growth given all the talk of how bigger brands can deliver so much value in terms of distribution and customer awareness. Both Marriott CEO Anthony Capuano and Hilton CEO Chr