IHG Grows in Europe as Hotel Demand and Investment Support Expansion

IHG Hotels & Resorts said it expanded its European portfolio by 27 percent over the past three years, adding more than 32,800 rooms.

By the end of 2025, the company had passed 150,000 open rooms in the region, meaning Europe now represents about 15 percent of IHG’s global system.

The company also said 2025 was a record year for its European business. It opened 102 hotels and signed 117 more properties, showing that growth is continuing across both its current estate and future pipeline.

Why Europe remains an important growth market

Europe is still one of the most attractive regions for hotel companies. It combines strong leisure demand, major business travel markets, and high international visitor numbers. At the same time, hotel investment has picked up again, creating better conditions for large operators to expand.

Conversions are helping IHG grow faster

A large share of IHG’s recent growth in Europe is coming from conversions. The company said conversions made up 84 percent of room openings and 61 percent of room signings in Europe in 2025.

Germany is a key part of the strategy

Germany is one of IHG’s most important European markets. The company said it now accounts for more than 20 percent of its open rooms in the region and nearly 20 percent of its pipeline.

That gives Germany an important role in IHG’s wider regional plans. The country has a strong domestic market and is also a major source of outbound travel. IHG’s acquisition of Ruby adds to that strategy, giving the group a stronger position in premium urban lifestyle hotels.

IHG is growing across multiple hotel segments

IHG said its expansion in Europe covers Luxury and Lifestyle, Premium, Essentials, and Suites. Recent examples include Six Senses London, InterContinental Prague, more voco growth, and new market moves for Candlewood Suites and Staybridge Suites.

Stronger deal activity and continued confidence in travel demand are creating better conditions for large groups to grow through new signings, conversions, and brand expansion. That wider backdrop helps explain why companies like IHG are moving aggressively across the region, especially while investors remain active in key hospitality markets.

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