As long as the growth algorithm remains intact, all is well. The war in the Middle East, which broke out on 28 February, has not clouded the horizon for the major hotel groups. The results presented for the first quarter of 2026 – which, it is true, were only one-third affected by the conflict – show no signs of weakness, and sector leaders continue to report good growth prospects for the current year.
Building on the strong performance seen in the final months of 2025 across the sector, the British group IHG reported a 4.41% year-on-year increase in revenue per available room (RevPAR) for the first quarter. The trend is equally positive for US hoteliers, with growth of +3.61% quarter-on-quarter at Hilton, +4.21% at Marriott and +5.41% at Hyatt. Only the major franchisors Wyndham and Choice Hotels, which operate in less profitable segments, recorded mixed results, with a slight decline, not due to the conflict in the Gulf – where they have virtually no presence – but because of an exceptional concentration of severe weather events such as storms Fern and Hernando.
For its part, Accor is performing as well as, if not better than, its competitors, with RevPAR up by 5.11% in Q3, driven two-thirds by higher prices globally, and is looking to the future with confidence. “ Our diverse geographical footprint, the quality of our brand portfolio, and our adaptability give us confidence in our ability to achieve further improved performance in 2026. ", said Sébastien Bazin, CEO of Accor. This is despite the fact that the Middle East accounts for 121% of the group’s accommodation revenue according to 2025 figures, and 81% of its room portfolio.
In addition to protective measures to minimise the impact of the situation on its performance, the French group intends to go " capture growth in areas that temporarily benefit from stronger demand, such as Europe or South-East Asia Two regions that have indeed shown their good health during the past quarter, with South-East Asia regaining its position as the highest growth area in the Middle East, Africa and Asia-Pacific region, while the rebound in activity in the United Kingdom, both in London and in the provinces, as well as the strength of the French market have supported the overall results.
" For the outlook ahead, our already booked global revenues for the second quarter indicate continued growth, highlighted Elie Maalouf, CEO of IHG Hotels & Resorts. The impact of the conflict in the Middle East, and more broadly, disruptions to international travel flows, should be more than compensated for by increased demand in other regions.. "
" Even though we anticipate some headwinds due to the situation in the Middle East, we remain confident in the continuation of the demand trend that we have been observing since the end of 2025 and through to April., commented Christopher Nassetta, the CEO of the Hilton Group, who is forecasting growth of 21% to 31% for the full year. We are particularly banking on an improvement in performance in the mid- and lower-end segments, with the strength of RevPAR continuing to spread downwards from luxury and upper-high-end, leading towards a more balanced convergence of demand. ".
On the positive side, the resilience of business travel and the conference market bolstered overall performance. In the United States, revenue per available room from group travel rose by 91% year-on-year for the IHG group, whilst revenue from business travellers increased by 61% year-on-year, compared with a flat quarter for leisure travel. Similarly, Accor noted that the most dynamic segments during the past quarter were individual business travellers alongside leisure groups.
The same trend was seen at Hilton, which reported a 2.7% year-on-year increase in RevPAR from individual business travellers in the first quarter, “ Let there be a 4-point increase in demand compared to the fourth quarter. ", and RevPAR for the group segment grew by 4.3% Q3-Q4, " driven by company meetings and conferences ". A trend that Christopher Nassetta sees continuing, in fact: " For the year, we continue to anticipate that the group segment will drive growth, followed by individual business travel and leisure customers. ".
At Marriott, revenue per available room generated by group bookings rose by 5% quarter-on-quarter, both in the US and Canada and globally. Meanwhile, RevPAR from individual business travellers rose by 11% overall, and by 21% in North America, despite a decline in government business (-61%), which was offset by higher rates. “ The Corporate segment continues to be solid, as does individual business clientele, if we exclude the governmental component. », remarked Marriott CEO Anthony Capuano.
Better-than-expected performance in the US in the first quarter, the upcoming World Cup across the Atlantic, and improved performance in China: taken together – and despite the situation in the Gulf, which ultimately accounts for just 31% of the US group’s rooms and royalty income – Marriott has even raised its growth outlook for the year. Whilst the US hotel group had previously forecast a RevPAR increase of between 1.51% and 2.51%, the growth outlook has been raised to a range of +2.1% to +3.1%.
