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Let's move on to shares of IHG. In the wake of the hotel operator announcing a nine hundred and fifty million dollars share buyback program. In its latest earnings, you can see shares rising a little bit here one and a half percent. The company also unfiled it's twenty first brand noted collection as it looks to attract more upscale customers this year. Joining us now exclusively to discuss is Ellie Malouf, the CEO of IHG. Ellie, great to have
you with us. A lot to get into here, but I want to, of course start with the US and what you're seeing in that market, because we know it was a difficult end to twenty twenty five. The momentum that you've seen so far in twenty twenty six, what gives you the confidence to say that it will continue.
Thank you for having me. It's great to be with you. First, I really do want to thank our teams around the world for what was an excellent financial performance last year. You saw a ref bark grew one and a half person and around the world or operating profit was up thirteen percent, or earnings per share up sixteen percent, and we're growing the company. We had a record over four hundred and forty hotel openings around the world. We added
seven hundred, nearly seven hundred hotels to our pipeline. So the industry growing, our company is growing. We're confident about the future. With regard to the United States, there were some, let's just say, unexpected things last year that weighed on the industry, which we think come off this year. In twenty twenty six, you had some teriff anxiety, you had reduced government spending and travel. You had the longest on history government shutdown. You had reduced inbound travel to the
US internationally. Now when you get into twenty twenty six, these things either don't happen or really just we comp over those. In fact, we get some positives like the World Cup, like US to fifty celebration. You got a very strong economy, a strong GDP growth exit rate from Q four really still record employment, job growth, but number of people employed is still at a record. Enormous capital spending by technology companies and other not just tech and AI,
but you have energy infrastructure that's driving business growth. I mean, you put all these things together, it's hard not to be a little more positive in twenty twenty six about the US in twenty twenty five and what we've seen in the first month and a half in business in the US, but actually, frankly globally makes us more optimistic.
Right, Well, let's talk a little bit more about the World Cup, because obviously there is a ton of excitement building for this summer. What do pass World Cups tell you about what the region could expect here in the US and what are you doing to prepare for that.
I look, we're very prepared where in most of the major cities where they're going to be you know, football if you're using the global term, or soccer for using the US term, but are also very president in Canada and in Mexico where games are going to be played. We've got a lot of experience with global events. We're in one hundred countries. We're a global company that's very big in the United States, but we've got experience with
all these major events. I mean, look, there are industry forecasts that say could add somewhere between forty to sixty basis points of RevPAR to growth this year. We haven't put out a forecast. We do think it's going to be a creative. We think it's one of many other things that are making the US out look stronger for twenty twenty six.
I'm curious, so, Ellie, you have no concerns right now about some of the immigration issues here in the US potentially maybe dampening just how many people would actually travel, foreign travelers that is, into the US for these events.
We haven't seen that. You know, our booking window isn't that long. The Games are still a few months away. Frankly, most companies in our business at our scale see somewhere between fifty to sixty percent of all their bookings in the last week. Now, long event bookings like this are start to come in months before. We're pleased with the bookings we're seeing in our major cities for the World Cup. It's a bit early really to make a forecast on it,
but we're pleased. We're not seeing any resistance to come. Look, sports bring the world together, and that's always been the case no matter where the World Cup has been held. And keep in mind we're a global company. We're very focused in the United States. We think it's going to be more optimistic this year, but around the globe we're we're seeing positive trends in Europe, certainly the Middle East, where we have a very big business and that's growing.
Southeast Asia has had a very good year in twenty two and five. That continues in China, which was a bit negative in ref par growth for the last two years, turned positive in Q four, a strong economy. We had record signings and openings in China last year. So really globally everything's taking shape for a better year in twenty twenty six.
Well on that point, here are you seeing any material difference in demand for I guess your high properties versus low, So say something like a holiday in on the lower end of the p spectrum all the way up to you the intercontinentals, crowns, kemptons and those things on the higher end.
Sure, Look, we pride ourselves on having a stay for everybody, and in twenty twenty five both Holiday and Halid Express had about positive year around the world. Now I'd say the upper end luxury had an even more positive year. That's been a trend going on for a couple of years. We think over time the mainstream travel, the middle class travel will converge, and some years you find that luxury does better than mainstream. Some years mainstream does better than luxury.
There are strong structural drivers for both. In mainstream, the middle class is growing around the world. In China, the middle class is going to double the next ten years, in India, Southeast Asia, similar figures in the United States, and middle classes getting wealthier, and so the middle class is the heart of the business and that has strong structural drivers. At the upper end. At the luxury you've got two structural drivers. First, you've got an aging population.
That's however aging and a healthier and wealthier condition, and one of the main things they want to do is travel. They prioritize live experiences over products, and they're living longer, healthier, and they want to travel more. So that's got a structural driver. I think both have a very good future.
Well, Ellie, when it comes to the upper end, and we only have about a minute left with you, talk to us about where you see the Noted Collection launch sort of fitting into that portfolio.
We're very pleased to launch Noted Collection today, our twenty first brand. It's going to be targeted in premium, which is between luxury and mainstream. Right there in the premium for business travelers, for leisure travelers. It's a collection brand. So start to collect iconic assets that already have a strong local presence, a strong following. But for owners that want to join a very strong system like ISG. We have one hundred and sixty million IC one Rewards members,
we cover one hundred countries. We got best in class technology, leading AI driven revenue management system, all the powers that can make hotel performance stronger, while you can keep your own brand and your own identity as a property. So it's a collection for these iconic assets. It's going to be urban leisure. We're targeting about one hundred and fifty hotels over the next ten years, and we're optimistic about its growth.
All right, Ellie, we have to leave it there. I really appreciate you joining us here, and I think we got to check back in as we get closer, of course, to what's going on with the World Cup here in North America. Elie maloof the CEO over at IHG