Intercontinental Hotels (IHG)
NYSE:IHG
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Intercontinental Hotels Group
(NYSE:IHG)
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Rating:71Outperform
Price Target:
$175.00
▲(23.69% Upside)
Action:Upgraded
Date:02/19/26
The score is driven by strong operating results and cash generation plus a positive earnings outlook and shareholder returns, supported by an uptrend in technicals. The main constraints are balance-sheet leverage/negative equity and a relatively rich valuation with a modest dividend yield.
Positive Factors
Asset-light franchising model
IHG’s asset-light franchise and management model creates durable, recurring fee revenue with low incremental capital intensity. That structure scales as rooms open, preserves operating margins versus owning real estate, and reduces capex sensitivity, supporting sustainable cash generation and ROIC over multiple cycles.
Negative Factors
High leverage and negative equity
Consistently negative equity and elevated debt levels weaken financial flexibility and increase refinancing and covenant risk in stress scenarios. High leverage limits capacity to absorb demand shocks, hampers balance-sheet strength for opportunistic M&A or capex, and makes the company more sensitive to rising rates or cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light franchising model
IHG’s asset-light franchise and management model creates durable, recurring fee revenue with low incremental capital intensity. That structure scales as rooms open, preserves operating margins versus owning real estate, and reduces capex sensitivity, supporting sustainable cash generation and ROIC over multiple cycles.
Read all positive factors
Intercontinental Hotels Group Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
The Fly
The FlyIntercontinental Hotels Group (IHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.45B
Dividend Yield1.21%
Average Volume (3M)211.19K
Price to Earnings (P/E)36.9
Beta (1Y)0.94
Revenue Growth5.59%
EPS Growth26.44%
CountryUS
Employees12,587
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)4.93
Shares Outstanding149,547,990
10 Day Avg. Volume208,393
30 Day Avg. Volume211,189
Financial Highlights & Ratios
PEG Ratio1.12
Price to Book (P/B)-8.01
Price to Sales (P/S)4.23
P/FCF Ratio25.22
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue5.24
Enterprise Value/Gross Profit16.79
Enterprise Value/Ebitda20.76
Forecast
1Y Price Target
$145.00Price Target Upside2.49% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)5.71
Revenue Forecast (FY)$5.54B
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, ...
How the Company Makes Money
IHG makes money mainly through an “asset-light” model built around franchising and hotel management rather than owning large numbers of hotels. Its key revenue streams include: (1) Franchise fees: IHG licenses its brands, operating systems, and st...
Intercontinental Hotels Group Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive outlook: strong system growth (gross 6.6%, net 4.7%), margin expansion (+360 bps), double-digit EPS and EBIT growth, robust cash generation and an increased buyback program. Management acknowledged several near-term timing and mix headwinds — notably fee-income timing noise from a record level of openings, renovation-related disruptions, lumpy key-money recognition, and China’s gradual recovery — but positioned these as temporary dynamics that should normalize and turn into tailwinds. Given the weight of strong development activity, margin gains, loyalty/ancillary momentum and capital-return commitments versus primarily timing-related challenges, the overall tone is constructive and optimistic.Positive Updates
Revenue per Available Room (RevPAR) Growth
RevPAR grew 1.5% in 2025, with early 2026 trading indicators positive across all three regions and China turning positive in Q4 2025 (+1.1%).
Negative Updates
Fee Revenue Timing and 'Fee Triangulation' Noise
Fee revenue growth exhibited timing and mix noise in 2025 driven by a record level of openings (many hotels not fully ramped), numerous renovations (temporary fee disruption), large exits (e.g., two NYC hotels) and leap-year effects; contributed to a temporary gap between comparable RevPAR and total RevPAR impacts on fee income.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue per Available Room (RevPAR) Growth
RevPAR grew 1.5% in 2025, with early 2026 trading indicators positive across all three regions and China turning positive in Q4 2025 (+1.1%).
Read all positive updates
Company Guidance
Management gave constructive near‑term and medium‑term guidance with many concrete metrics: 2025 RevPAR rose 1.5% (China Q4 RevPAR +1.1%), fee‑related ancillaries (cards/points) are expected to keep growing in double‑digits (>10%) and card fees are targeted to triple by 2028, while fee margin expanded 360 bps in 2025; costs fell ~3% in 2025 and are expected to rise only ~1% in 2026 on a like‑for‑like P&L basis. They completed a $900m buyback in 2025 and launched a new $950m program, reaffirmed key‑money guidance of $200–250m and total capital of ~ $350m p.a., and said they’re comfortable with consensus net system growth (~4.4%) while reporting 2025 net system growth 4.7% (gross system growth 6.6%), 102,000 rooms signed across 694 hotels (up 9%), pipeline +4.4% and openings +10%; other headline metrics: EBIT +13%, adjusted EPS +16%, IHG One Rewards 160m members (from 145m) with ~66% of room nights from members (72–73% in the U.S.), and removals expected to trend back toward ~1.5%.Intercontinental Hotels Group Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
34
Negative
Cash Flow
76
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.19B | 4.92B | 3.73B | 3.89B | 2.91B |
| Gross Profit | 1.66B | 1.46B | 1.94B | 1.09B | 893.00M |
| EBITDA | 1.22B | 1.25B | 1.27B | 815.00M | 692.00M |
| Net Income | 758.00M | 628.00M | 750.00M | 375.00M | 266.00M |
Balance Sheet | |||||
| Total Assets | 5.34B | 4.75B | 4.81B | 4.22B | 4.72B |
| Cash, Cash Equivalents and Short-Term Investments | 1.13B | 1.01B | 1.33B | 976.00M | 1.45B |
| Total Debt | 4.62B | 3.69B | 3.59B | 2.82B | 3.26B |
| Total Liabilities | 8.08B | 7.06B | 6.76B | 5.82B | 6.19B |
| Stockholders Equity | -2.74B | -2.31B | -1.95B | -1.61B | -1.48B |
Cash Flow | |||||
| Free Cash Flow | 870.00M | 646.00M | 811.00M | 547.00M | 584.00M |
| Operating Cash Flow | 898.00M | 724.00M | 893.00M | 646.00M | 636.00M |
| Investing Cash Flow | -190.00M | -99.00M | -137.00M | -78.00M | -12.00M |
| Financing Cash Flow | -614.00M | -894.00M | -417.00M | -961.00M | -860.00M |
Intercontinental Hotels Group Technical Analysis
Positive
141.48
Price Trends
142.38
Positive
139.94
Positive
132.92
Positive
Market Momentum
3.96
Negative
67.36
Neutral
90.17
Negative
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 141.48 is below the 20-day moving average (MA) of 149.62, below the 50-day MA of 142.38, and above the 200-day MA of 132.92, indicating a bullish trend. The MACD of 3.96 indicates Negative momentum. The RSI at 67.36 is Neutral, neither overbought nor oversold. The STOCH value of 90.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IHG.
Intercontinental Hotels Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $13.28B | 18.68 | 41.70% | 3.60% | 9.63% | 59.04% | |
71 Outperform | $23.45B | 36.95 | -23.50% | 1.21% | 5.59% | 26.44% | |
66 Neutral | $101.72B | 39.03 | -74.11% | 0.84% | 4.69% | 8.46% | |
64 Neutral | $76.84B | 48.68 | -29.63% | 0.21% | 8.72% | 3.05% | |
62 Neutral | $17.46B | -504.07 | -1.00% | 0.36% | 7.74% | -104.45% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $6.18B | 31.36 | 37.33% | 2.13% | 1.41% | -40.51% |
* Consumer Cyclical Sector Average
IHG
Intercontinental Hotels Group
154.88
40.57
35.49%
HTHT
H World Group
44.89
11.22
33.31%
H
Hyatt Hotels
181.36
49.82
37.88%
MAR
Marriott International
375.60
114.08
43.62%
HLT
Hilton Worldwide Holdings
327.66
79.73
32.16%
WH
Wyndham Hotels & Resorts
80.26
-0.83
-1.02%
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.