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Intercontinental Hotels Group (IHG)
NYSE:IHG
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Intercontinental Hotels Group
(NYSE:IHG)
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Select Model
Rating:60Neutral
Price Target:
$124.00
â–²(1.00% Upside)
Intercontinental Hotels Group's overall stock score reflects a balanced outlook. The company's strong cash flow generation and revenue recovery are significant positives. However, high leverage and negative equity present financial risks. The technical indicators show a positive trend, but valuation metrics suggest moderate pricing. The absence of recent earnings call data limits insights into management's strategic direction.
Intercontinental Hotels Group (IHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.59B
Dividend Yield1.4%
Average Volume (3M)163.76K
Price to Earnings (P/E)25.7
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 Outstanding152,667,140
10 Day Avg. Volume147,317
30 Day Avg. Volume163,762
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 Cap1.17
Enterprise Value/Revenue4.22
Enterprise Value/Gross Profit7.05
Enterprise Value/Ebitda16.96
Forecast
1Y Price Target
$124.00Price Target Upside1.00% Upside
Rating ConsensusHold
Number of Analyst Covering0
Intercontinental Hotels Group Business Overview & Revenue Model
Company DescriptionInterContinental 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 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
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:
Main Street Data
Main Street DataIntercontinental 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
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.76
Positive
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.52
Neutral
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.68
Positive
| 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
Positive
122.77
Price Trends
119.71
Positive
118.22
Positive
118.28
Positive
Market Momentum
0.03
Negative
56.27
Neutral
62.06
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 122.77 is above the 20-day moving average (MA) of 120.89, above the 50-day MA of 119.71, and above the 200-day MA of 118.28, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.27 is Neutral, neither overbought nor oversold. The STOCH value of 62.06 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.58B | 24.43 | 30.94% | 4.54% | 4.43% | 1.61% | |
72 Outperform | $6.22B | 19.10 | 58.77% | 1.98% | 3.65% | 38.50% | |
66 Neutral | $13.62B | 33.66 | 12.13% | 0.42% | 0.74% | -54.42% | |
62 Neutral | $61.56B | 40.21 | -34.62% | 0.23% | 6.26% | 38.11% | |
60 Neutral | $18.59B | 25.68 | -27.16% | 1.40% | 8.89% | 23.20% | |
59 Neutral | $71.72B | 29.80 | -83.23% | 0.98% | 5.12% | -11.48% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
IHG
Intercontinental Hotels Group
122.77
15.29
14.23%
HTHT
H World Group
39.82
2.94
7.97%
H
Hyatt Hotels
144.39
-4.48
-3.01%
MAR
Marriott International
266.82
23.09
9.47%
HLT
Hilton Worldwide Holdings
262.28
32.98
14.38%
WH
Wyndham Hotels & Resorts
80.92
4.40
5.75%
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.
InterContinental Hotels Group Executes Share Buyback Program
Jul 11, 2025
InterContinental Hotels Group PLC announced a series of share buybacks executed between June 27 and July 2, 2025, as part of a shareholder-approved program. These transactions, conducted on the London Stock Exchange, reflect the company’s strategy to enhance shareholder value by reducing the number of shares in circulation, which could potentially improve earnings per share and market perception.
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.