InterContinental Hotels (IHG) AI Stock Analysis

• Market Cap: £13.28B
• Dividend Yield: 1.06%
• Average Volume (3M): 515.23K
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.73
• Revenue Growth: 5.55%
• EPS Growth: 19.27%
• Country: UK
• Employees: 12,587
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): N/A
• Shares Outstanding: 153,052,050
• 10 Day Avg. Volume: 442,512
• 30 Day Avg. Volume: 515,231
• PEG Ratio: -2.76
• Price to Book (P/B): -8.67
• Price to Sales (P/S): 4.07
• P/FCF Ratio: 31.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £8,851.82
• Price Target Upside: 1.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 66 Neutral
• Price Target: 9,577.00p ▲(9.68% Upside)

InterContinental Hotels shows strong revenue growth and profitability, but financial stability is challenged by high leverage and negative equity. Technical indicators suggest stable momentum, while valuation metrics indicate moderate pricing. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong market demand and effective business strategies, enhancing long-term competitiveness.

Cash Generation

Strong free cash flow highlights efficient capital management, providing financial flexibility for strategic investments and debt servicing.

Profitability

A healthy net profit margin indicates effective cost management and operational efficiency, supporting sustainable profitability.

Negative Factors

High Leverage

High leverage and negative equity pose risks to financial stability, potentially limiting the company's ability to finance growth or withstand economic downturns.

Operating Cash Flow Decline

Declining operating cash flow may constrain the company's ability to fund operations and invest in growth, impacting long-term financial health.

Margin Pressure

Decreasing margins suggest rising costs or competitive pressures, which could erode profitability if not addressed effectively.

InterContinental Hotels Business Overview & Revenue Model

Company Description

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company operates hotels under the Six Senses, Regent, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotels & Restaurants, Hotel Indigo, EVEN Hotels, HUALUXE, Holiday Inn, Holiday Inn Express, Holiday Inn Club Vacations, avid, Staybridge Suites, Atwell Suites, Candlewood Suites, voco, and Crowne Plaza. It also provides IHG Rewards loyalty program. As of December 31, 2021, the company operated 5,991 hotels and 880,327 rooms in approximately 100 countries. InterContinental Hotels Group PLC was founded in 1777 and is headquartered in Denham, the United Kingdom.

How the Company Makes Money

IHG generates revenue primarily through hotel management and franchise fees. The company operates on a fee-based model, where it earns a percentage of the hotel sales from franchised properties and management contracts. Key revenue streams include franchise fees from properties under its brand umbrella, management fees from hotels that IHG operates directly, and royalties from its loyalty program, IHG Rewards Club. Additionally, IHG benefits from partnerships with travel agencies, corporate clients, and online travel agents, which contribute to its occupancy rates and overall revenue. The company's ability to leverage its global presence and brand recognition allows it to maintain a competitive edge in the hospitality market.

InterContinental Hotels Financial Statement Overview

Summary

InterContinental Hotels has shown commendable revenue growth and solid profitability, though there's a noticeable decline in margins. The balance sheet presents significant concerns due to negative equity and high leverage, which could pose risks. Cash flow remains a strong point, with efficient management of capital, yet there is a downward trend in operating cash flow. Overall, while the company is profitable and growing, its financial stability is challenged by high leverage and negative equity.

Income Statement

InterContinental Hotels has demonstrated strong revenue growth, with a 32% increase year-over-year. The gross profit margin is solid at 29.5%, though slightly weakened compared to previous years. The net profit margin is healthy at 12.8%, reflecting robust cost control and profitability. However, margins have slightly decreased from the previous year, indicating some pressure on profitability.

Balance Sheet

The company exhibits high leverage with a negative stockholders' equity, resulting in an undefined debt-to-equity ratio. The equity ratio is negative, which is concerning as total liabilities exceed total assets. The return on equity is also undefined due to negative equity, indicating potential risk in financial stability.

Cash Flow

Free cash flow has remained strong, though it has decreased from the previous year. The free cash flow to net income ratio is 1.03, signifying efficient cash generation relative to earnings. Despite a decline in operating cash flow, the company maintains positive free cash flow, showcasing its ability to manage capital expenditures effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.12B	4.92B	3.73B	3.89B	2.91B	2.39B
Gross Profit	1.56B	1.46B	1.94B	1.09B	893.00M	536.00M
EBITDA	1.34B	1.25B	1.25B	815.00M	692.00M	31.00M
Net Income	750.00M	628.00M	750.00M	375.00M	266.00M	-260.00M
Balance Sheet
Total Assets	4.94B	4.75B	4.81B	4.22B	4.72B	5.04B
Cash, Cash Equivalents and Short-Term Investments	619.00M	1.01B	1.33B	976.00M	1.45B	1.63B
Total Debt	4.11B	3.69B	3.59B	2.82B	3.26B	4.22B
Total Liabilities	7.58B	7.06B	6.76B	5.82B	6.19B	6.89B
Stockholders Equity	-2.64B	-2.31B	-1.95B	-1.61B	-1.48B	-1.86B
Cash Flow
Free Cash Flow	799.00M	646.00M	811.00M	547.00M	584.00M	61.00M
Operating Cash Flow	874.00M	724.00M	893.00M	646.00M	636.00M	137.00M
Investing Cash Flow	-188.00M	-99.00M	-137.00M	-78.00M	-12.00M	-61.00M
Financing Cash Flow	-943.00M	-894.00M	-417.00M	-961.00M	-860.00M	1.35B

InterContinental Hotels Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8732.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IHG, the sentiment is Negative. The current price of 8732 is below the 20-day moving average (MA) of 8920.20, below the 50-day MA of 8787.85, and below the 200-day MA of 8988.26, indicating a bearish trend. The MACD of -1.02 indicates Positive momentum. The RSI at 41.82 is Neutral, neither overbought nor oversold. The STOCH value of 10.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:IHG.

InterContinental Hotels Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	74 Outperform	1.60B	9.41	5.81%	―	1.95%	275.56%
WTB	73 Outperform	5.41B	22.16	7.61%	3.07%	-1.28%	-11.17%
CCL	71 Outperform	29.66B	14.64	20.71%	―	8.40%	172.06%
TW	66 Neutral	3.50B	41.18	4.99%	9.53%	4.21%	-65.57%
IHG	66 Neutral	£13.28B	23.67	-27.16%	1.06%	5.55%	19.27%
PPH	47 Neutral	545.68M	24.86	9.02%	2.47%	6.14%	1.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

InterContinental Hotels Corporate Events

InterContinental Hotels Executes Share Buyback to Optimize Capital Structure

InterContinental Hotels Group PLC announced the repurchase of 70,917 of its ordinary shares on 11 September 2025, as part of a buyback program authorized by shareholders. This transaction, conducted through Merrill Lynch International, is part of the company’s strategy to manage its capital structure and enhance shareholder value by reducing the number of shares in circulation.

The most recent analyst rating on (GB:IHG) stock is a Hold with a £80.50 price target. To see the full list of analyst forecasts on InterContinental Hotels stock, see the GB:IHG Stock Forecast page.

IHG Announces Interim Dividend in Pence Sterling

InterContinental Hotels Group PLC announced the Pence Sterling amount payable for its 2025 interim dividend, set at 43.3 pence per ordinary share. This decision was based on the average market exchange rates from early September 2025. This announcement reflects IHG’s ongoing financial strategies and provides insights into its dividend policy, impacting shareholders and potentially influencing investor confidence.

The most recent analyst rating on (GB:IHG) stock is a Hold with a £80.50 price target. To see the full list of analyst forecasts on InterContinental Hotels stock, see the GB:IHG Stock Forecast page.

InterContinental Hotels Group Announces Share Repurchase

InterContinental Hotels Group PLC announced the repurchase of 55,643 of its ordinary shares on the London Stock Exchange, with plans to cancel these shares. This move, executed through Merrill Lynch International, is part of a broader strategy to manage the company’s share capital and potentially enhance shareholder value.

The most recent analyst rating on (GB:IHG) stock is a Buy with a £10200.00 price target. To see the full list of analyst forecasts on InterContinental Hotels stock, see the GB:IHG Stock Forecast page.

InterContinental Hotels Executes Share Buyback on LSE

InterContinental Hotels Group PLC announced the repurchase of 4,172 of its ordinary shares on the London Stock Exchange, with the highest price paid per share being £91.6000. This transaction, conducted through Merrill Lynch International, is part of the company’s strategy to manage its share capital, and the purchased shares are intended to be canceled, reflecting a move to potentially enhance shareholder value.

The most recent analyst rating on (GB:IHG) stock is a Buy with a £10200.00 price target. To see the full list of analyst forecasts on InterContinental Hotels stock, see the GB:IHG Stock Forecast page.

InterContinental Hotels Group Announces €850 Million Note Issuance

InterContinental Hotels Group PLC has announced the publication of the final terms for the issuance of €850 million in notes due in 2030, under its Euro Medium Term Note Programme. This financial move, backed by guarantees from key subsidiaries, is likely to impact the company’s financial strategy and market positioning, offering potential implications for investors and stakeholders.

The most recent analyst rating on (GB:IHG) stock is a Buy with a £10200.00 price target. To see the full list of analyst forecasts on InterContinental Hotels stock, see the GB:IHG Stock Forecast page.

InterContinental Hotels Group Executes Share Buyback to Boost Shareholder Value

InterContinental Hotels Group PLC announced the repurchase of 19,582 of its ordinary shares from Merrill Lynch International on the London Stock Exchange, as part of a previously authorized buyback program. This move is intended to enhance shareholder value by reducing the number of shares in circulation, thereby potentially increasing earnings per share and strengthening the company’s market position.

The most recent analyst rating on (GB:IHG) stock is a Hold with a £9450.00 price target. To see the full list of analyst forecasts on InterContinental Hotels stock, see the GB:IHG Stock Forecast page.

InterContinental Hotels Corrects Voting Rights Figures

InterContinental Hotels Group PLC has corrected its previously misstated total voting rights and share capital figures, adjusting them by 4,634 shares. The revised figures are crucial for shareholders to accurately determine their interests in accordance with the Financial Conduct Authority’s rules.

The most recent analyst rating on (GB:IHG) stock is a Hold with a £9450.00 price target. To see the full list of analyst forecasts on InterContinental Hotels stock, see the GB:IHG Stock Forecast page.

InterContinental Hotels Group Executes Share Buyback and Corrects Share Count

InterContinental Hotels Group PLC announced the repurchase of 68,596 of its ordinary shares on September 3, 2025, as part of a buyback program authorized by shareholders. The shares were acquired from Merrill Lynch International on the London Stock Exchange at varying prices, with the intention to cancel them, thereby reducing the number of shares in circulation. Additionally, the company corrected previously reported figures for the number of ordinary shares in issue, ensuring accurate shareholder information. This move is likely to impact the company’s market positioning by potentially increasing shareholder value and optimizing its capital structure.

The most recent analyst rating on (GB:IHG) stock is a Hold with a £9450.00 price target. To see the full list of analyst forecasts on InterContinental Hotels stock, see the GB:IHG Stock Forecast page.