00:00I want to, of course, start with the U.S. and what you're seeing in that market, because we know
00:04it was a difficult end to 2025.
00:07The momentum that you've seen so far in 2026, what gives you the confidence to say that it will continue?
00:15Thank you for having me. It's great to be with you.
00:17First, I really do want to thank our teams around the world for what was an excellent financial performance last
00:22year.
00:23You saw our FBAR grew 1.5 percent around the world.
00:25Our operating profit was up 13 percent. Our earnings per share up 16 percent.
00:31And we're growing the company. We had a record over 440 hotel openings around the world.
00:37We added 700, nearly 700 hotels to our pipeline.
00:41So the industry growing, our company's growing. We're confident about the future.
00:46With regard to the United States, there were some, let's just say, unexpected things last year that weighed on the
00:52industry,
00:53which we think come off this year in 2026.
00:56You had some tariff anxiety. You had reduced government spending and travel.
01:00You had the longest in history government shutdown.
01:04You had reduced inbound travel to the U.S. internationally.
01:08Now, when you get into 2026, these things either don't happen or really just we comp over those.
01:15In fact, we get some positives like the World Cup, like U.S. 250 celebration.
01:19You got a very strong economy, a strong GDP growth exit rate from Q4.
01:24Really still record employment, job growth, but number of people employed is still at a record.
01:30Enormous capital spending by technology companies and other, not just tech and AI,
01:35but you have energy infrastructure. That's driving business growth.
01:39I mean, you put all these things together.
01:41It's hard not to be a little more positive in 2026 about the U.S. than 2025.
01:45And what we've seen in the first month and a half in business in the U.S.,
01:50but actually, frankly, globally, makes us more optimistic.
01:53Right. Well, let's talk a little bit more about the World Cup,
01:56because obviously there is a ton of excitement building for this summer.
02:00What do past World Cups tell you about what the region could expect here in the U.S.,
02:05and what are you doing to prepare for that?
02:08Well, look, we're very prepared.
02:10We're in most of the major cities where there are going to be, you know, football,
02:15if you're using the global term, or soccer, if you're using the U.S. term.
02:19But we're also very present in Canada and in Mexico where games are going to be played.
02:23We've got a lot of experience with global events.
02:26We're in 100 countries.
02:27We're a global company that's very big in the United States,
02:30but we've got experience with all these major events.
02:32I mean, look, there are industry forecasts that, say, could add some between 40 to 60 basis points
02:38of REVPAR to growth this year.
02:41We haven't put out a forecast.
02:42We do think it's going to be accretive.
02:44We think it's one of many other things that are making the U.S. outlook stronger for 2026.
02:50I am curious, though, Ellie, you have no concerns right now about some of the immigration issues here in the
02:55U.S.,
02:56potentially maybe dampening just how many people would actually travel, foreign travelers, that is,
03:03into the U.S. for these events.
03:06We haven't seen that.
03:07You know, our booking window isn't that long.
03:10The games are still a few months away.
03:12Frankly, most companies in our business at our scale see somewhere between 50 to 60 percent
03:17of all their bookings in the last week.
03:20Now, long event bookings like this start to come in months before.
03:24We're pleased with the bookings we're seeing in our major cities for the World Cup.
03:29It's a bit early, really, to make a forecast on it, but we're pleased.
03:33We're not seeing any resistance to come.
03:35Look, sports bring the world together, and that's always been the case,
03:39no matter where the World Cup has been held.
03:41And keep in mind, we're a global company.
03:44We're very focused in the United States.
03:45We think it's going to be more optimistic this year.
03:49But around the globe, we're seeing positive trends in Europe,
03:53certainly in the Middle East, where we have a very big business, and that's growing.
03:56Southeast Asia has had a very good year in 2025.
03:59That continues.
04:00And China, which was, you know, a bit negative in RefPAR growth for the last two years,
04:05turned positive in Q4, a strong economy.
04:08We had record signings and openings in China last year.
04:11So really, globally, everything's taking shape for a better year in 2026.
04:15Well, on that point here, are you seeing any material difference in demand for, I guess,
04:20your high properties versus low?
04:22So say something like a Holiday Inn on the lower end of the price spectrum,
04:25all the way up to, you know, the Intercontinentals, Crowns, Kemptons,
04:28and those things on the higher end?
04:31Sure.
04:33Look, we pride ourselves on having a stay for everybody.
04:36And in 2025, both Holiday Inn and Holiday Express had a positive year around the world.
04:42Now, I'd say the upper end, luxury, had an even more positive year.
04:48That's been a trend going on for a couple of years.
04:50We think over time, the mainstream travel, the middle class travel will converge.
04:55And some years, you find that luxury does better than mainstream.
04:58Some years, mainstream does better than luxury.
05:00There are strong structural drivers for both.
05:03In mainstream, the middle class is growing around the world.
05:06In China, the middle class is going to double in the next 10 years.
05:08In India, Southeast Asia, similar figures.
05:11In the United States, the middle class is getting wealthier.
05:14And so the middle class is the heart of the business, and that has strong structural drivers.
05:19At the upper end, at the luxury, you've got two structural drivers.
05:23First, you've got an aging population.
05:25That's, however, aging in a healthier and wealthier condition.
05:28And one of the main things they want to do is travel.
05:30They prioritize live experiences over products, and they're living longer, healthier,
05:36and they want to travel more.
05:37Right.
05:37So that's got a structural driver.
05:38I think both have a very good future.
05:41Well, Ellie, when it comes to the upper end, and we only have about a minute left with you,
05:45talk to us about where you see the Noted Collection launch sort of fitting into that portfolio.
05:50We're very pleased to launch Noted Collection today, our 21st brand.
05:54It's going to be targeted in premium, which is between luxury and mainstream, right there in the premium for business
06:02travelers,
06:03for leisure travelers.
06:04It's a collection brand.
06:05So it's there to collect iconic assets that already have a strong local presence, a strong following,
06:11but for owners that want to join a very strong system like ISG.
06:14We have 160 million ISG One Rewards members.
06:18We cover 100 countries.
06:20We've got best-in-class technology, leading AI-driven revenue management systems,
06:25all the powers that can make hotel performance stronger while you can keep your own brand
06:30and your own identity as a property.
06:32So it's a collection for these iconic assets.
06:35It's going to be urban leisure.
06:37We're targeting about 150 hotels over the next 10 years, and we're optimistic about its growth.
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