Analyst Initiates Buy on InterContinental Hotels Group, Citing USAF Lodging Contract-Driven Growth and $166 Price Objective

Bank of America Securities analyst Muneeba Kayani has reiterated their bullish stance on IHG stock, giving a Buy rating on May 8.

Muneeba Kayani has given his Buy rating due to a combination of factors related to InterContinental Hotels Group’s growth outlook and valuation. The long-term, asset-light contract to operate U.S. Air Force base lodging expands IHG’s managed portfolio, initially adding an estimated 70 basis points to the existing system by 2027 while requiring limited capital outlay.

This deal complements IHG’s established U.S. Army lodging platform and reinforces a robust, multi-year net unit growth trajectory, with the pipeline already at roughly one-third of the current system. At the same time, Kayani notes that IHG continues to trade at a discount to U.S. peers despite leading trends in net unit growth and RevPAR, creating an attractive risk-reward profile that justifies a Buy rating and a price objective of $166.

IHG’s price has also changed moderately for the past six months – from $127.901 to $150.750, which is a 17.86% increase.