Intercontinental Hotels Group (IHG) AI Stock Analysis

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Intercontinental Hotels Group

(NYSE:IHG)

Select Model

Neutral 65 (OpenAI - 4o)

Rating:65Neutral

Price Target:

$131.00

▲(7.26% Upside)

Intercontinental Hotels Group's strong revenue recovery and cash flow generation are significant positives. However, financial risks due to high leverage and negative equity, along with a moderate valuation, slightly dampen the overall outlook. Technical indicators suggest a positive trend, supporting a stable stock performance.

Intercontinental Hotels Group (IHG) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$18.06B

Dividend Yield1.42%

Average Volume (3M)165.54K

Price to Earnings (P/E)25.1

Beta (1Y)0.96

Revenue Growth8.89%

EPS Growth23.20%

CountryUS

Employees12,587

SectorConsumer Cyclical

Sector Strength84

IndustryTravel Lodging

Share Statistics

EPS (TTM)N/A

Shares Outstanding152,355,180

10 Day Avg. Volume170,912

30 Day Avg. Volume165,545

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.20

Enterprise Value/Revenue4.22

Enterprise Value/Gross Profit7.05

Enterprise Value/Ebitda16.96

Forecast

1Y Price Target

$125.70

Price Target Upside2.92% Upside

Rating ConsensusHold

Number of Analyst Covering2

Intercontinental Hotels Group Business Overview & Revenue Model

Company DescriptionIntercontinental Hotels Group (IHG) is a global hotel company headquartered in Denham, England. It operates a diverse portfolio of brands across various market segments, including luxury, upscale, midscale, and economy hotels. IHG's core brands include InterContinental, Crowne Plaza, Holiday Inn, Holiday Inn Express, and Kimpton Hotels, among others. The company focuses on providing high-quality accommodations and services to both business and leisure travelers worldwide, leveraging its extensive global presence to meet the needs of diverse customer segments.

How the Company Makes MoneyIHG generates revenue primarily through the management and franchising of its hotel brands. The company operates under a revenue model that includes fees from franchise agreements, management contracts, and owned and leased properties. Key revenue streams comprise franchise fees, management fees, and royalties from hotel owners who use IHG's brand names and systems. Additionally, IHG earns income through its loyalty program, IHG Rewards, which drives customer retention and repeat business. Significant partnerships with travel agencies, online booking platforms, and corporate clients also contribute to its earnings by expanding its market reach and enhancing occupancy rates across its hotel portfolio.

Intercontinental Hotels Group Key Performance Indicators (KPIs)

Any

Revenue by Geography

Revenue by Geography
Breaks down revenue across different regions, highlighting where the company generates the most income and potential areas for growth or risk based on regional economic trends.

Chart InsightsIntercontinental Hotels Group is experiencing robust growth in the Americas and EMEAA regions, with both showing consistent revenue increases over recent years. The Americas lead in revenue, reflecting strong market demand and strategic positioning. Meanwhile, Greater China shows volatility, likely due to fluctuating economic conditions, but has recently stabilized. The Central region is steadily improving, indicating effective operational strategies. This geographic diversification provides a buffer against regional economic uncertainties, positioning IHG well for sustained growth despite potential challenges in specific markets.

Data provided by:

Main Street Data

Intercontinental Hotels Group Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q4-2024)

% Change Since: |

Next Earnings Date:Feb 24, 2026

Earnings Call Sentiment Positive

IHG delivered strong financial performance with significant revenue and EPS growth, record room growth, and increased shareholder returns. The acquisition of the Ruby brand and strong performance in priority geographies further highlight the company's positive momentum. However, challenges in Greater China and increased expenditure on key money were noted as potential concerns.

Q4-2024 Updates

Positive Updates

Strong Financial Performance

RevPAR grew by 3% for the year, driven by rate and occupancy gains, with a strong finish in Q4.

Record Room Growth and Pipeline

IHG added 59,000 rooms to its system, with gross system growth of 6.2% and net system growth of 4.3%. The company signed 106,000 rooms across 714 hotels, which is 34% ahead of 2023 levels.

Increase in Operating Profit and EPS

Fee margin grew 190 basis points, contributing to a 10% increase in operating profit from reportable segments. Adjusted EPS grew 15%.

Shareholder Returns

Completed an $800 million share buyback program and announced a new $900 million share buyback for 2025, expecting to return over $1.1 billion to shareholders.

Acquisition of Ruby Brand

Acquired the Ruby Urban Lifestyle brand for $116 million, extending the portfolio into the premium urban lifestyle segment.

Performance in Priority Growth Geographies

Record hotel signings and openings in Greater China and strong development momentum in the U.S.

Negative Updates

Challenges in Greater China

RevPAR was down 4.8% for the year, with a particularly tough Q3 where RevPAR was down 10.3% due to difficult year-on-year comparatives.

Increased Key Money Expenditure

Key money doubled in the year to $206 million, driven by increased development activity, particularly in the Premium and Luxury & Lifestyle segments.

Company Guidance

In the recent call, IHG Hotels & Resorts provided comprehensive guidance for their 2024 full-year performance, unveiling a robust financial outlook. The company reported a 3% increase in RevPAR, fueled by improvements in rate and occupancy, and noted strong performance across various segments, including leisure and business. System growth appeared promising, with 59,000 rooms added, leading to a gross system growth of 6.2% and a net system growth of 4.3%. IHG signed 106,000 rooms across 714 hotels, marking a 34% increase over the previous year. Financial metrics also showed strength, with a 10% rise in operating profit from reportable segments and a 15% growth in adjusted EPS, supported by their $800 million share buyback program. Looking ahead, IHG launched a new $900 million share buyback initiative, anticipated to return over $1.1 billion to shareholders in 2025. Additionally, the acquisition of the Ruby Urban Lifestyle brand for $116 million was announced, expanding their portfolio into the premium urban lifestyle segment. The company also indicated a fee margin growth of 190 basis points and projected further improvements in fee margin due to new co-brand credit card agreements and loyalty point sales.

Intercontinental Hotels Group Financial Statement Overview

Summary

Intercontinental Hotels Group shows a solid recovery trajectory in revenue and profitability post-pandemic. However, high leverage and negative equity pose financial risks. Cash flow generation is strong, providing a buffer against financial instability. The company needs to focus on improving net margins and reducing leverage to ensure long-term financial health.

Income Statement

Positive

Intercontinental Hotels Group has shown consistent revenue growth, recovering from the pandemic impact. The gross profit margin and EBIT margins remain strong, indicating effective cost management. However, net profit margins have decreased slightly due to rising expenses, which is a point of concern.

Balance Sheet

Neutral

The balance sheet reflects a negative stockholders' equity, indicating high leverage and potential financial risk. The debt-to-equity ratio is significantly high, which may limit financial flexibility. However, the company has managed to maintain a stable asset base.

Cash Flow

Positive

Operating cash flow remains robust, supporting sufficient free cash flow generation. Despite a decrease in free cash flow growth, the company maintains a good operating cash flow to net income ratio, suggesting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.14B	4.92B	3.73B	3.89B	2.91B	2.39B
Gross Profit	3.08B	1.46B	1.94B	1.09B	893.00M	536.00M
EBITDA	1.28B	1.25B	1.25B	815.00M	692.00M	31.00M
Net Income	754.03M	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	4.10B	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	850.59M	646.00M	811.00M	547.00M	584.00M	61.00M
Operating Cash Flow	876.68M	724.00M	893.00M	646.00M	636.00M	137.00M
Investing Cash Flow	-189.26M	-99.00M	-137.00M	-78.00M	-12.00M	-61.00M
Financing Cash Flow	-948.28M	-894.00M	-417.00M	-961.00M	-860.00M	1.35B

Intercontinental Hotels Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price122.13

Price Trends

50DMA

121.41

Positive

100DMA

118.81

Positive

200DMA

118.11

Positive

Market Momentum

MACD

0.31

Negative

RSI

59.23

Neutral

STOCH

60.48

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IHG, the sentiment is Positive. The current price of 122.13 is above the 20-day moving average (MA) of 122.03, above the 50-day MA of 121.41, and above the 200-day MA of 118.11, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 59.23 is Neutral, neither overbought nor oversold. The STOCH value of 60.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IHG.

Intercontinental Hotels Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTHT	77 Outperform	$11.58B	23.85	30.38%	4.62%	4.43%	1.61%
WH	72 Outperform	$6.02B	18.50	56.16%	2.00%	3.65%	38.50%
HLT	68 Neutral	$61.39B	40.10	―	0.22%	6.26%	38.11%
H	66 Neutral	$14.18B	35.03	11.66%	0.39%	0.74%	-54.42%
IHG	65 Neutral	$18.06B	25.08	―	1.42%	8.89%	23.20%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MAR	59 Neutral	$72.87B	30.28	―	0.96%	5.12%	-11.48%

* Consumer Cyclical Sector Average

Performance Comparison

IHG

Intercontinental Hotels Group

125.03

14.69

13.31%

HTHT

H World Group

38.53

2.08

5.71%

Hyatt Hotels

152.03

4.55

3.09%

MAR

Marriott International

272.07

16.71

6.54%

HLT

Hilton Worldwide Holdings

275.06

42.10

18.07%

Wyndham Hotels & Resorts

80.39

0.43

0.54%

Intercontinental Hotels Group Corporate Events

InterContinental Hotels Group Executes Share Buyback and Reports Increased Stake by PineStone Asset Management

Aug 22, 2025

On August 8, 2025, InterContinental Hotels Group PLC executed a transaction to repurchase 2,296 of its ordinary shares on the London Stock Exchange, with the intention of canceling these shares. This move is part of a broader strategy to manage its share capital and enhance shareholder value. Additionally, PineStone Asset Management Inc. increased its voting rights in the company to 8.066993%, reflecting a significant stake in the company.

InterContinental Hotels Group Executes Share Buybacks in August 2025

Aug 8, 2025

InterContinental Hotels Group PLC announced a series of share buybacks from July 25 to August 7, 2025, purchasing its own shares on the London Stock Exchange through Merrill Lynch International. These transactions, authorized by shareholders in May 2025, are part of the company’s strategy to manage its capital structure and are intended to be canceled, impacting the total number of shares in circulation. This move reflects the company’s ongoing efforts to enhance shareholder value and optimize its financial operations.

InterContinental Hotels Group Executes Share Buyback Program in July 2025

Jul 25, 2025

InterContinental Hotels Group PLC announced a series of share buybacks conducted from July 16 to July 25, 2025, on the London Stock Exchange. These transactions are part of a shareholder-approved plan to repurchase and subsequently cancel its ordinary shares, aiming to reduce the number of shares in circulation and potentially enhance shareholder value.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 22, 2025