Update shared on11 Sep 2025
Fair value Decreased 1.10%Analysts have slightly reduced their price target for InterContinental Hotels Group to £89.37, primarily due to currency headwinds and continued U.S. RevPAR pressure, despite ongoing confidence in management's growth initiatives and the resilience of the operating model.
Analyst Commentary
- Bullish analysts highlighted the resilience of InterContinental Hotels Group's operating model, as evidenced by solid Q2 results.
- Some raised price targets reflect confidence in management's outlook, especially around growth in hotel signings and a rising contribution from the loyalty program.
- Management commentary indicated optimism regarding a sizable market opportunity for brand conversions from independents and other competitors.
- Slight price target reductions were attributed mainly to currency (foreign exchange) impacts rather than operational concerns.
- Bearish analysts cited limited near-term catalysts and continued U.S. RevPAR pressure as reasons for tempered optimism and more cautious ratings.
What's in the News
- InterContinental Hotels Group (IHG) has completed a significant share buyback, repurchasing 3.8 million shares (2.41% of outstanding shares) for $425 million between February and June 2025 (Key Development, 2025-08-07).
- The Board declared a 10% increase in the interim dividend to 58.6 cents per share, with the 2025 total dividends estimated at approximately $270 million, reflecting continued shareholder returns (Key Development, 2025-08-07).
- IHG expanded its luxury and lifestyle footprint in South America with the opening of InterContinental Real Lima Miraflores and Hotel Indigo Lima Miraflores, targeting upscale and lifestyle travelers in Lima, Peru (Key Development, 2025-06-17).
- The new Lima properties include diverse culinary and guest experiences, aiming to position the complex as a social and cultural hub in the Miraflores district while reinforcing IHG’s strategic expansion in high-profile international markets (Key Development, 2025-06-17).
- 69.5% of IHG shareholders supported the company's executive pay plan, showing solid—though not overwhelming—approval amid a broader European trend of rising investor opposition to executive compensation practices (Reuters, 2025-09-01).
Valuation Changes
Summary of Valuation Changes for InterContinental Hotels Group
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £90.36 to £89.37.
- The Future P/E for InterContinental Hotels Group has significantly fallen from 23.69x to 17.77x.
- The Discount Rate for InterContinental Hotels Group remained effectively unchanged, moving only marginally from 9.32% to 9.29%.
Disclaimer
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