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Intercontinental Hotels Group
(NYSE:IHG)
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Rating:65Neutral
Price Target:
$167.00
â–²(1.98% 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
Asset-light system expansion
IHG can expand fee-bearing rooms with limited property ownership, supporting scalable growth and capital efficiency. Strong signings and a large pipeline provide multi-year opportunities to increase recurring franchise and management fees.
Negative Factors
High leverage and negative equity
Negative equity and elevated debt reduce financial flexibility and make IHG more dependent on stable operating conditions and refinancing access. A downturn in hotel demand could therefore place greater pressure on resilience and capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light system expansion
IHG can expand fee-bearing rooms with limited property ownership, supporting scalable growth and capital efficiency. Strong signings and a large pipeline provide multi-year opportunities to increase recurring franchise and management fees.
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
$23.97B
Dividend Yield0.77%
Average Volume (3M)247.44K
Price to Earnings (P/E)34.3
Beta (1Y)0.81
Revenue Growth3.41%
EPS Growth-1.33%
CountryUS
Employees13,049
SectorGeneral
Sector StrengthN/A
IndustryTravel Lodging
Share Statistics
EPS (TTM)4.71
Shares Outstanding148,204,090
10 Day Avg. Volume202,147
30 Day Avg. Volume247,442
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$173.60Price Target Upside6.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)5.76
Revenue Forecast (FY)$5.55B
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 by monetizing its brands and operating platform across a largely asset-light hotel network.
1) Franchise fees: A significant portion of IHG’s hotels are franchised to third-party owners. IHG earns ongoing fees tied to ho...
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
Neutral
163.75
Price Trends
161.84
Negative
156.58
Positive
145.83
Positive
Market Momentum
0.66
Negative
48.79
Neutral
44.74
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 163.75 is above the 20-day moving average (MA) of 159.84, above the 50-day MA of 161.84, and above the 200-day MA of 145.83, indicating a neutral trend. The MACD of 0.66 indicates Negative momentum. The RSI at 48.79 is Neutral, neither overbought nor oversold. The STOCH value of 44.74 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $72.44B | 45.97 | -28.13% | 0.19% | 8.74% | 4.50% | |
65 Neutral | $23.97B | 34.31 | -25.04% | 1.18% | 3.41% | -1.33% | |
62 Neutral | $91.55B | 35.60 | -66.73% | 0.73% | 4.72% | 8.81% | |
58 Neutral | $4.90B | 14.50 | 214.91% | 1.04% | 2.65% | 8.53% | |
56 Neutral | $16.25B | 194.15 | 2.37% | 0.32% | 6.36% | -80.55% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | $5.64B | 26.69 | 42.06% | 2.28% | -2.21% | -35.98% |
* General Sector Average
IHG
Intercontinental Hotels Group
155.27
36.74
30.99%
CHH
Choice Hotels
98.12
-17.41
-15.07%
H
Hyatt Hotels
162.55
20.10
14.11%
MAR
Marriott International
334.55
72.26
27.55%
HLT
Hilton Worldwide Holdings
311.99
36.52
13.26%
WH
Wyndham Hotels & Resorts
71.01
-13.54
-16.02%
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.