Intercontinental Hotels Group (IHG) AI Stock Analysis

• Market Cap: $20.41B
• Dividend Yield: 1.21%
• Average Volume (3M): 154.01K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.96
• Revenue Growth: 8.89%
• EPS Growth: 23.20%
• Country: US
• Employees: 12,587
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): N/A
• Shares Outstanding: 151,644,800
• 10 Day Avg. Volume: 171,347
• 30 Day Avg. Volume: 154,011
• PEG Ratio: -2.77
• Price to Book (P/B): -8.70
• Price to Sales (P/S): 4.09
• P/FCF Ratio: 31.14
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 4.19
• Enterprise Value/Gross Profit: 6.99
• Enterprise Value/Ebitda: 16.83
• 1Y Price Target: $135.00
• Price Target Upside: -1.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: $147.00 ▲(7.42% Upside)

Intercontinental Hotels Group demonstrates strong financial recovery and positive technical indicators, supported by a robust earnings call. However, high leverage and valuation concerns slightly temper the overall outlook. The company's strategic growth initiatives and optimistic future guidance contribute positively to its stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

System Growth

Robust system growth reflects successful expansion efforts and enhances competitive positioning in the hospitality industry.

Fee Margin Expansion

Fee margin expansion demonstrates improved profitability and operational efficiency, contributing to sustainable financial performance.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase vulnerability to economic downturns, posing long-term risks.

Net Profit Margin Decline

Declining net profit margins may affect overall profitability, necessitating cost control measures to maintain financial stability.

Higher Hotel Closures

Increased hotel closures can hinder growth momentum and impact brand presence, challenging future expansion efforts.

Intercontinental Hotels Group 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 a combination of hotel management and franchise fees. The company operates two main revenue streams: management contracts and franchise agreements. Under management contracts, IHG manages hotels on behalf of owners, receiving a management fee based on the hotel's revenue and often an incentive fee tied to profitability. Franchise agreements allow independent hotel owners to operate under IHG's brand, whereby IHG earns a franchise fee based on a percentage of the hotel's revenue, as well as additional fees for marketing and support services. IHG also benefits from its IHG Rewards loyalty program, which encourages repeat business and drives customer retention, contributing to overall earnings. Significant partnerships with travel agencies, online booking platforms, and corporate clients further enhance IHG's revenue potential as they provide access to a broader customer base.

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

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

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

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	1.27B	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: Neutral
• Last Price: 136.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IHG, the sentiment is Neutral. The current price of 136.84 is below the 20-day moving average (MA) of 140.29, above the 50-day MA of 134.90, and above the 200-day MA of 121.18, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 51.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IHG.

Intercontinental Hotels Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTHT	74 Outperform	$14.76B	28.57	32.28%	3.60%	5.70%	9.53%
IHG	70 Neutral	$20.41B	28.52	―	1.21%	8.89%	23.20%
WH	67 Neutral	$6.04B	18.40	57.98%	2.13%	3.38%	38.04%
HLT	67 Neutral	$69.76B	43.49	―	0.21%	6.68%	48.03%
MAR	65 Neutral	$85.79B	33.76	―	0.84%	4.68%	-1.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
H	56 Neutral	$15.98B	-182.41	-2.45%	0.36%	2.61%	-106.74%

Intercontinental Hotels Group Corporate Events

InterContinental Hotels Group Completes December 2025 Share Buybacks and Confirms Voting Rights

InterContinental Hotels Group PLC reported a series of share buyback transactions in late December 2025 under the authority granted at its 8 May 2025 AGM, as part of a previously announced repurchase programme with Merrill Lynch International. On 23, 24 and 29 December 2025, the company bought back and intends to cancel a total of 56,109 ordinary shares, with purchases executed on the London Stock Exchange at volume-weighted average prices of around £104–£105 per share, leaving 151,644,808 ordinary shares in issue (excluding treasury) as at 31 December 2025. In a concurrent voting rights update, IHG confirmed that its issued share capital stood at 157,126,590 ordinary shares, of which 5,481,782 are held in treasury, establishing 151,644,808 voting rights for shareholders’ disclosure calculations and marking the completion of the February 2025 buyback programme with MLI, which marginally enhances earnings per share and clarifies the company’s capital structure for investors.

The most recent analyst rating on (IHG) stock is a Hold with a $135.00 price target. To see the full list of analyst forecasts on Intercontinental Hotels Group stock, see the IHG Stock Forecast page.

InterContinental Hotels Group Discloses Capital Group Stake Trim Below 5%

On 6 January 2026, InterContinental Hotels Group PLC reported a change in a major shareholding after The Capital Group Companies, Inc. reduced its position in the company to 4.895671% of voting rights, equivalent to 7,424,031 voting rights, down from just over 5%. The notification, completed in Los Angeles on 7 January 2026 and disclosed via a regulatory filing on 8 January 2026, reflects a modest trimming of Capital Group’s stake, signaling a shift by a large institutional investor but leaving it with a significant minority holding, which may be of interest to shareholders monitoring changes in IHG’s institutional ownership profile.

The most recent analyst rating on (IHG) stock is a Hold with a $135.00 price target. To see the full list of analyst forecasts on Intercontinental Hotels Group stock, see the IHG Stock Forecast page.

InterContinental Hotels Group Executes Share Buyback Program in December 2025

InterContinental Hotels Group PLC announced a series of transactions involving the repurchase of its own shares from Merrill Lynch International on the London Stock Exchange. These transactions, conducted between November 28 and December 11, 2025, are part of a strategic move to manage the company’s share capital, as authorized by shareholders earlier in the year. The company intends to cancel the repurchased shares, which could potentially impact the company’s share value and stakeholder interests by reducing the number of shares in circulation.

The most recent analyst rating on (IHG) stock is a Hold with a $147.00 price target. To see the full list of analyst forecasts on Intercontinental Hotels Group stock, see the IHG Stock Forecast page.