Update shared on 13 Nov 2025
Fair value Decreased 0.0049%InterContinental Hotels Group's analyst price target saw a modest increase of £0.09 to £92.89, as analysts point to the company's resilient business model and earnings visibility, even as U.S. RevPAR continues to face pressure.
Analyst Commentary
Recent street research highlights a mixed outlook among analysts covering InterContinental Hotels Group, revealing nuanced views on the company’s valuation, growth potential, and operational resilience.
Bullish Takeaways
- Several bullish analysts have upgraded their ratings and raised price targets, reflecting increased confidence in the company’s ability to deliver robust earnings and sustain high free cash flow conversion.
- Comparisons to competitors indicate InterContinental Hotels Group is benefiting from a more resilient business model, with operational efficiencies helping offset geographic headwinds.
- JPMorgan’s recent double upgrade highlights expectations for a shift towards an improved narrative and constructive outlook as RevPAR expectations are rebased and the company leverages its superior earnings visibility.
- Recent quarterly results are seen as evidence of the group’s operating model resilience, supporting optimism on the company’s long-term setup.
Bearish Takeaways
- Some analysts remain cautious, maintaining more neutral or negative ratings despite incremental price target increases, citing ongoing pressure on U.S. RevPAR that could hinder near-term growth.
- Weakness in U.S. RevPAR, a critical driver for the lodging sector, continues to be a primary concern weighing on share price appreciation and overall sentiment.
- Valuation concerns persist, with views that shares are now fairly valued and face limited upside given the lack of immediate catalysts for growth.
- Even analysts maintaining Outperform or Hold ratings note that headwinds in key geographies must be resolved before a more substantial re-rating can occur.
What's in the News
- European investor scrutiny over executive pay remains heightened, with 69.5% of InterContinental Hotels Group shareholders supporting the company's latest plan, according to a recent survey (Reuters).
- IHG has launched a substantial share buyback and has completed the repurchase of 6.1 million shares, or 3.89% of shares outstanding, for a total of $700 million.
- The company announced plans for a new collection brand targeted at the premium segment in the EMEAA region. This initiative aims to expand offerings for both guests and hotel owners, complementing its existing premium and luxury brands.
- Ruby Hotels, the 20th brand under the IHG portfolio, is being introduced to the U.S. market. This addition provides a fresh option for style-conscious urban travelers and marks a new phase in the brand's international expansion.
Valuation Changes
- Consensus Analyst Price Target increased slightly from £92.89 to £92.90.
- Discount Rate decreased modestly from 9.12% to 9.10%.
- Revenue Growth estimate remained unchanged at -17.38%.
- Net Profit Margin edged down from 34.65% to 34.54%.
- Future P/E ratio rose slightly from 24.11x to 24.29x.
Disclaimer
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