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Intercontinental Hotels Group
(NYSE:IHG)
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Rating:65Neutral
Price Target:
$184.00
▲(12.37% Upside)
Action:Reiterated
Date:08/11/26
The score is driven primarily by solid operating performance and cash generation, reinforced by a positive earnings call emphasizing margin expansion and significant capital returns. These strengths are tempered by balance-sheet risk (negative equity/high debt), a currently weak technical setup, and a relatively expensive valuation with a modest dividend yield.
Positive Factors
Fee growth and margin expansion
Rising fee revenue and expanding margins strengthen IHG’s asset-light earnings model, because more revenue is generated from the branded system without comparable property ownership costs. Continued margin gains could support durable profit growth and reinvestment capacity.
Negative Factors
High leverage and negative equity
High debt combined with persistent negative equity reduces financial flexibility and weakens resilience if travel demand deteriorates or financing conditions tighten. It may also constrain the company’s ability to fund growth or absorb prolonged operating pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Fee growth and margin expansion
Rising fee revenue and expanding margins strengthen IHG’s asset-light earnings model, because more revenue is generated from the branded system without comparable property ownership costs. Continued margin gains could support durable profit growth and reinvestment capacity.
Read all positive factors
Intercontinental Hotels Group Key Performance Indicators (KPIs)
Any
Hotels by Geography
Shows the distribution of hotels across various regions, indicating market presence and strategic focus areas for expansion or consolidation.
Shows the distribution of hotels across various regions, indicating market presence and strategic focus areas for expansion or consolidation.
Data provided by:
The Fly
The FlyIntercontinental Hotels Group (IHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.73B
Dividend Yield1.11%
Average Volume (3M)180.23K
Price to Earnings (P/E)35.9
Beta (1Y)0.78
Revenue Growth3.41%
EPS Growth-1.33%
CountryUS
Employees13,049
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)4.71
Shares Outstanding147,034,300
10 Day Avg. Volume239,434
30 Day Avg. Volume180,226
Financial Highlights & Ratios
PEG Ratio1.16
Price to Book (P/B)-8.00
Price to Sales (P/S)4.23
P/FCF Ratio25.22
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue5.61
Enterprise Value/Gross Profit17.64
Enterprise Value/Ebitda23.96
Forecast
1Y Price Target
$188.60Price Target Upside15.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)5.78
Revenue Forecast (FY)$5.56B
Intercontinental Hotels Group Business Overview & Revenue Model
Company Description
InterContinental Hotels Group PLC (IHG) is a prominent global hospitality enterprise whose business model encompasses the ownership, management, franchising, and leasing of hotel properties. Its extensive operations span diverse geographic regions...
How the Company Makes Money
IHG primarily makes money through an “asset-light” model that emphasizes franchising and hotel management rather than owning most hotel real estate. Key revenue streams include: (1) Franchise fees: IHG licenses its brands (e.g., brand standards, r...
Intercontinental Hotels Group Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Positive
The call highlighted broad-based operational momentum: RevPAR growth, record development and pipeline momentum, fee margin expansion, strong cash conversion and meaningful shareholder returns. Management acknowledged localized headwinds — primarily the Middle East conflict impact on a small subregion and a Q2 slowdown in Greater China — plus a known timing lag between system growth and fee recognition as new hotels ramp. Overall, the positives (robust growth, margin expansion, shareholder returns, technology and loyalty improvements, and major strategic wins) materially outweigh the temporary and region-specific challenges.Positive Updates
Strong overall financial performance
Reportable segments revenue $1.255bn (+7%) and EBIT $655m (+10%); operating profit from reportable segments grew 10%; adjusted EPS rose 13% to $2.747 (benefitting from share buybacks).
Negative Updates
Middle East geopolitical impact on EMEAA performance
EMEAA Q2 RevPAR slowed to +0.6% with a small subregion (representing 5% of global inventory) down 19% in Q2 due to conflict in the Middle East—this weighed on EMEAA quarterly growth despite broader regional resilience.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong overall financial performance
Reportable segments revenue $1.255bn (+7%) and EBIT $655m (+10%); operating profit from reportable segments grew 10%; adjusted EPS rose 13% to $2.747 (benefitting from share buybacks).
Read all positive updates
Company Guidance
IHG narrowed full‑year adjusted interest guidance to $230–$240m, expects an adjusted tax rate of 26%, and declared an interim dividend of $0.645 (a 10% increase); management is returning capital via a $950m buyback (42% complete at mid‑year, 2.7m shares repurchased, ~1.8% reduction) and ordinary dividends of ~ $285m, together returning >$1.2bn to shareholders in 2026 (and >$5bn over 2022–2026). Cash and leverage guidance: H1 adjusted free cash flow was $360m (up $58m), trailing‑12m cash conversion >100% and full‑year cash conversion expected ~100%, with net debt/EBITDA expected to remain within the 2.5–3x target range at end‑2026. Capex guidance is unchanged: key money & maintenance CapEx around $200–$250m p.a., gross CapEx ~ $350m p.a. on average (H1 gross CapEx $158m, net $123m). Operational/near‑term metrics show H1 global RevPAR +4.1% (Q2 +3.5%) with occupancy +1pp and ADR +2.5%; H1 fee revenue +7% (fee revenue $971m), reportable segment revenue $1.255bn and EBIT $655m (+7% and +10%), fee margin +120bps to 65.9%, net system growth +5% (gross system growth 6.5%), 31,500 rooms opened (197 hotels) and 49,200 rooms signed (352 hotels). Medium‑to‑long‑term algorithm/targets remain: high‑single‑digit CAGR fee revenue growth, 100–150bps annual fee‑margin expansion on average, ongoing surplus capital returns, and adjusted EPS growth of 12–15% (H1 adjusted EPS +13% to $2.747).Intercontinental Hotels Group Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
34
Negative
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.33B | 5.19B | 4.92B | 3.73B | 3.89B | 2.91B |
| Gross Profit | 1.69B | 1.66B | 1.46B | 1.94B | 1.09B | 893.00M |
| EBITDA | 1.25B | 1.22B | 1.25B | 1.27B | 815.00M | 692.00M |
| Net Income | 714.00M | 758.00M | 628.00M | 750.00M | 375.00M | 266.00M |
Balance Sheet | ||||||
| Total Assets | 5.23B | 5.34B | 4.75B | 4.81B | 4.22B | 4.72B |
| Cash, Cash Equivalents and Short-Term Investments | 831.00M | 1.13B | 1.01B | 1.33B | 976.00M | 1.45B |
| Total Debt | 4.55B | 4.62B | 3.69B | 3.59B | 2.82B | 3.26B |
| Total Liabilities | 8.20B | 8.08B | 7.06B | 6.76B | 5.82B | 6.19B |
| Stockholders Equity | -2.98B | -2.74B | -2.31B | -1.95B | -1.61B | -1.48B |
Cash Flow | ||||||
| Free Cash Flow | 908.15M | 870.00M | 646.00M | 811.00M | 547.00M | 584.00M |
| Operating Cash Flow | 934.95M | 898.00M | 724.00M | 893.00M | 646.00M | 636.00M |
| Investing Cash Flow | -114.02M | -190.00M | -99.00M | -137.00M | -78.00M | -12.00M |
| Financing Cash Flow | -567.42M | -614.00M | -894.00M | -417.00M | -961.00M | -860.00M |
Intercontinental Hotels Group Technical Analysis
Positive
163.75
Price Trends
159.95
Positive
161.29
Positive
150.52
Positive
Market Momentum
2.89
Negative
62.62
Neutral
84.72
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 163.75 is above the 20-day moving average (MA) of 163.00, above the 50-day MA of 159.95, and above the 200-day MA of 150.52, indicating a bullish trend. The MACD of 2.89 indicates Negative momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 84.72 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $24.73B | 35.94 | -25.04% | 1.11% | 3.41% | -1.33% | |
65 Neutral | $80.86B | 52.65 | -28.13% | 0.17% | 8.74% | 4.50% | |
65 Neutral | $5.74B | 28.70 | 43.21% | 2.17% | -2.21% | -35.98% | |
62 Neutral | $103.61B | 42.08 | -66.73% | 0.69% | 4.72% | 8.81% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $5.11B | 15.94 | 214.91% | 1.01% | 2.65% | 8.53% | |
56 Neutral | $16.62B | 207.69 | 2.37% | 0.34% | 6.36% | -80.55% |
* Consumer Cyclical Sector Average
IHG
Intercontinental Hotels Group
167.78
46.73
38.60%
CHH
Choice Hotels
111.98
15.14
15.64%
H
Hyatt Hotels
176.96
29.17
19.74%
MAR
Marriott International
396.80
129.33
48.35%
HLT
Hilton Worldwide Holdings
358.07
90.96
34.06%
WH
Wyndham Hotels & Resorts
75.07
0.76
1.02%
Intercontinental Hotels Group Corporate Events
InterContinental Hotels Group Continues August 2026 Share Buybacks on London Market
Aug 21, 2026
In a series of transactions disclosed in a Form 6-K filed on 21 August 2026, InterContinental Hotels Group PLC reported that between 7 and 13 August 2026 it repurchased several tranches of its own ordinary shares on the London Stock Exchange via G...
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.