(IHG) InterContinental Hotels - Overview
Stock: Hotels, Resorts, Franchising, Loyalty Program
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 2.74% |
| Yield on Cost 5y | 4.96% |
| Yield CAGR 5y | 30.34% |
| Payout Consistency | 68.6% |
| Payout Ratio | 43.2% |
| Risk 5d forecast | |
|---|---|
| Volatility | 23.0% |
| Relative Tail Risk | -4.14% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.13 |
| Alpha | -8.88 |
| Character TTM | |
|---|---|
| Beta | 0.807 |
| Beta Downside | 0.705 |
| Drawdowns 3y | |
|---|---|
| Max DD | 28.13% |
| CAGR/Max DD | 0.98 |
Description: IHG InterContinental Hotels December 19, 2025
InterContinental Hotels Group PLC (NYSE: IHG) owns, manages, franchises, and leases a portfolio of hotel properties across the United Kingdom, United States, and more than 100 other countries, operating under 19 distinct brands ranging from luxury (Six Senses, Regent) to mid-scale (Holiday Inn, Holiday Inn Express) and extended-stay concepts (Staybridge Suites, Candlewood Suites). The company also runs the IHG Rewards loyalty program, which tracks over 120 million members worldwide.
Key performance indicators from the most recent fiscal year (FY 2023) show a 12% year-over-year increase in revenue per available room (RevPAR) to $115, while occupancy rose to 71% and average daily rate (ADR) grew 8% to $162, reflecting a rebound in both business-travel and leisure demand. The loyalty program added roughly 5 million new members in 2023, a metric that historically correlates with a 0.5-1.0% lift in RevPAR per 10 million members. Primary economic drivers include global discretionary travel spending, which the World Travel & Tourism Council projects to grow 4.5% annually through 2028, and inflation-adjusted labor costs that remain a headwind for operating margins.
Given the mix of brand diversification and a strong loyalty base, IHG’s upside potential hinges on the pace of new hotel openings (the pipeline is ~1,200 rooms for FY 2024) and the ability to convert loyalty members into repeat bookings; monitoring these variables will be essential for any valuation model. For a deeper, data-driven dive into IHG’s fundamentals, you may find ValueRay’s analytical toolkit useful.
Piotroski VR‑10 (Strict, 0-10) 9.0
| Net Income: 1.39b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.32 > 0.02 and ΔFCF/TA 7.37 > 1.0 |
| NWC/Revenue: -4.69% < 20% (prev -1.06%; Δ -3.63% < -1%) |
| CFO/TA 0.33 > 3% & CFO 1.62b > Net Income 1.39b |
| Net Debt (3.49b) to EBITDA (2.41b): 1.45 < 3 |
| Current Ratio: 0.79 > 1.5 & < 3 |
| Outstanding Shares: last quarter (157.8m) vs 12m ago -4.94% < -2% |
| Gross Margin: 52.95% > 18% (prev 0.47%; Δ 5248 % > 0.5%) |
| Asset Turnover: 193.0% > 50% (prev 119.6%; Δ 73.45% > 0%) |
| Interest Coverage Ratio: 8.04 > 6 (EBITDA TTM 2.41b / Interest Expense TTM 277.3m) |
Altman Z'' 1.97
| A: -0.09 (Total Current Assets 1.66b - Total Current Liabilities 2.10b) / Total Assets 4.94b |
| B: -0.05 (Retained Earnings -224.0m / Total Assets 4.94b) |
| C: 0.46 (EBIT TTM 2.23b / Avg Total Assets 4.88b) |
| D: -0.35 (Book Value of Equity -2.64b / Total Liabilities 7.58b) |
| Altman-Z'' Score: 1.97 = BBB |
Beneish M -2.56
| DSRI: 1.03 (Receivables 1.03b/615.0m, Revenue 9.41b/5.76b) |
| GMI: 0.88 (GM 52.95% / 46.55%) |
| AQI: 1.24 (AQ_t 0.58 / AQ_t-1 0.47) |
| SGI: 1.64 (Revenue 9.41b / 5.76b) |
| TATA: -0.05 (NI 1.39b - CFO 1.62b) / TA 4.94b) |
| Beneish M-Score: -2.56 (Cap -4..+1) = A |
What is the price of IHG shares?
Over the past week, the price has changed by -0.91%, over one month by -3.11%, over three months by +11.34% and over the past year by +4.12%.
Is IHG a buy, sell or hold?
- StrongBuy: 1
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the IHG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 134.6 | -1.9% |
| Analysts Target Price | 134.6 | -1.9% |
| ValueRay Target Price | 167.5 | 22.1% |
IHG Fundamental Data Overview January 28, 2026
P/E Forward = 23.4742
P/S = 3.9961
P/EG = 1.0679
Revenue TTM = 9.41b USD
EBIT TTM = 2.23b USD
EBITDA TTM = 2.41b USD
Long Term Debt = 3.25b USD (from longTermDebt, last quarter)
Short Term Debt = 474.0m USD (from shortTermDebt, last quarter)
Debt = 4.10b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.49b USD (from netDebt column, last quarter)
Enterprise Value = 23.95b USD (20.46b + Debt 4.10b - CCE 611.0m)
Interest Coverage Ratio = 8.04 (Ebit TTM 2.23b / Interest Expense TTM 277.3m)
EV/FCF = 15.36x (Enterprise Value 23.95b / FCF TTM 1.56b)
FCF Yield = 6.51% (FCF TTM 1.56b / Enterprise Value 23.95b)
FCF Margin = 16.57% (FCF TTM 1.56b / Revenue TTM 9.41b)
Net Margin = 14.79% (Net Income TTM 1.39b / Revenue TTM 9.41b)
Gross Margin = 52.95% ((Revenue TTM 9.41b - Cost of Revenue TTM 4.43b) / Revenue TTM)
Gross Margin QoQ = 25.49% (prev 93.43%)
Tobins Q-Ratio = 4.85 (Enterprise Value 23.95b / Total Assets 4.94b)
Interest Expense / Debt = 2.24% (Interest Expense 91.8m / Debt 4.10b)
Taxrate = 25.91% (165.4m / 638.4m)
NOPAT = 1.65b (EBIT 2.23b * (1 - 25.91%))
Current Ratio = 0.79 (Total Current Assets 1.66b / Total Current Liabilities 2.10b)
Debt / Equity = -1.55 (negative equity) (Debt 4.10b / totalStockholderEquity, last quarter -2.64b)
Debt / EBITDA = 1.45 (Net Debt 3.49b / EBITDA 2.41b)
Debt / FCF = 2.24 (Net Debt 3.49b / FCF TTM 1.56b)
Total Stockholder Equity = -2.28b (last 4 quarters mean from totalStockholderEquity)
RoA = 28.55% (Net Income 1.39b / Total Assets 4.94b)
RoE = -61.12% (negative equity) (Net Income TTM 1.39b / Total Stockholder Equity -2.28b)
RoCE = 229.6% (EBIT 2.23b / Capital Employed (Equity -2.28b + L.T.Debt 3.25b))
RoIC = 158.6% (NOPAT 1.65b / Invested Capital 1.04b)
WACC = 7.68% (E(20.46b)/V(24.56b) * Re(8.89%) + D(4.10b)/V(24.56b) * Rd(2.24%) * (1-Tc(0.26)))
Discount Rate = 8.89% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.50%
[DCF Debug] Terminal Value 82.30% ; FCFF base≈1.40b ; Y1≈1.73b ; Y5≈2.95b
Fair Price DCF = 330.2 (EV 53.19b - Net Debt 3.49b = Equity 49.70b / Shares 150.5m; r=7.68% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 53.71 | EPS CAGR: 131.4% | SUE: 0.0 | # QB: 0
Revenue Correlation: 78.52 | Revenue CAGR: 32.51% | SUE: N/A | # QB: 0
EPS next Year (2026-12-31): EPS=5.79 | Chg30d=-0.224 | Revisions Net=-1 | Growth EPS=+15.3% | Growth Revenue=+6.3%