0.28%
8.70%
26.37%
38.01%
44.27%
122.59%
130.93%

Company Description

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China.The company operates hotels under the Six Senses, Regent, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotels & Restaurants, Hotel Indigo, EVEN Hotels, HUALUXE, Holiday Inn, Holiday Inn Express, Holiday Inn Club Vacations, avid, Staybridge Suites, Atwell Suites, Candlewood Suites, voco, and Crowne Plaza.It also provides IHG Rewards loyalty program.


As of December 31, 2021, the company operated 5,991 hotels and 880,327 rooms in approximately 100 countries.InterContinental Hotels Group PLC was founded in 1777 and is headquartered in Denham, the United Kingdom.

Market Data

Last Price 10820
Change Percentage 0.28%
Open 10770
Previous Close 10790
Market Cap ( Millions) 17083
Volume 710311
Year High 10910
Year Low 7032
M A 50 10025.76
M A 200 8576.57

Financial Ratios

FCF Yield 3.35%
Dividend Yield 0.80%
ROE -30.10%
Debt / Equity -162.30%
Net Debt / EBIDTA 241.45%
Price To Book -10.04
Price Earnings Ratio 34.67
Price To FCF 29.87
Price To sales 4.96
EV / EBITDA 21.17

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> System Fund and Reimbursable

Expected Growth : 8.3 %

What the company do ?

System Fund is a centralized fund for IHG's loyalty program, and Reimbursable is a fund for reimbursing hotel owners for loyalty program expenses.

Why we expect these perspectives ?

InterContinental Hotels Group PLC's System Fund and Reimbursable segments drove 8.3% growth, fueled by increased RevPAR, expanded global footprint, and strategic partnerships. Strong brand recognition, efficient cost management, and investments in digital transformation also contributed to the growth.

Segment nΒ°2 -> Americas

Expected Growth : 4.65 %

What the company do ?

The Americas segment of InterContinental Hotels Group PLC includes hotels in the United States, Canada, Mexico, and Latin America.

Why we expect these perspectives ?

Strong brand presence, increasing travel demand, and strategic partnerships drive growth in Americas for InterContinental Hotels Group PLC. Additionally, investments in digital transformation, loyalty programs, and expansion into new markets contribute to the 4.65% growth rate.

Segment nΒ°3 -> Europe, Middle East, Asia and Africa

Expected Growth : 4.73 %

What the company do ?

Europe, Middle East, Asia and Africa (EMEAA) is a geographic segment of InterContinental Hotels Group PLC, encompassing hotels in these regions.

Why we expect these perspectives ?

{'Europe': 'Strong RevPAR growth driven by robust demand, favorable currency exchange rates, and strategic brand portfolio.', 'Middle East': 'Government-led tourism initiatives, infrastructure development, and growing business travel demand fuel growth.', 'Asia': 'Rapid urbanization, increasing middle-class disposable income, and strategic partnerships drive expansion.', 'Africa': 'Infrastructure development, growing tourism, and increasing business travel demand driven by natural resource investments.'}

Segment nΒ°4 -> Central

Expected Growth : 4.78 %

What the company do ?

The Central is a loyalty program from InterContinental Hotels Group PLC, rewarding members with points for stays, redeemable for free nights and exclusive benefits.

Why we expect these perspectives ?

InterContinental Hotels Group PLC's Central segment growth of 4.78% is driven by increasing demand for luxury travel, strategic expansion in high-growth markets, and effective cost management. Additionally, the company's focus on digital transformation, loyalty programs, and partnerships with local businesses have contributed to the segment's growth.

Segment nΒ°5 -> Greater China

Expected Growth : 7.4 %

What the company do ?

Greater China, from InterContinental Hotels Group PLC, refers to the region encompassing mainland China, Hong Kong, Macau, and Taiwan, a key market for the hospitality industry.

Why we expect these perspectives ?

Strong demand from Chinese travelers, government support for tourism infrastructure development, and strategic partnerships with local companies drove 7.4% growth in Greater China for InterContinental Hotels Group PLC. Additionally, the group's focus on mid-scale and luxury brands, such as Holiday Inn and InterContinental, resonated with the growing middle class and affluent consumers in the region.

Intercontinental Hotels Group Plc Products

Product Range What is it ?
InterContinental Hotels & Resorts Luxury hotels and resorts offering upscale accommodations and amenities
Kimpton Hotels & Restaurants Boutique hotels offering unique design, amenities, and culinary experiences
Hotel Indigo Boutique hotels offering unique, locally-inspired design and amenities
Crowne Plaza Hotels & Resorts Upscale hotels offering business-friendly amenities and services
voco Hotels Upscale hotels offering high-quality amenities and services
Holiday Inn Hotels & Resorts Mid-scale hotels offering comfortable accommodations and amenities
Holiday Inn Express Limited-service hotels offering convenient, affordable accommodations
avid hotels Select-service hotels offering modern design and amenities
Staybridge Suites Extended-stay hotels offering spacious suites and amenities
Candlewood Suites Extended-stay hotels offering spacious suites and amenities

InterContinental Hotels Group PLC's Porter Forces

InterContinental Hotels Group PLC faces moderate threat from substitutes, as customers have various options for accommodations, including Airbnb, hostels, and budget hotels. However, the company's strong brand reputation and loyalty program help to mitigate this threat.

Customers have significant bargaining power due to the high level of competition in the hospitality industry. InterContinental Hotels Group PLC must invest in customer loyalty programs and personalized services to maintain customer loyalty.

Suppliers have limited bargaining power due to the company's large scale of operations and diversified supply chain. InterContinental Hotels Group PLC can negotiate favorable terms with suppliers, reducing costs and improving profitability.

The threat of new entrants is low due to the high barriers to entry in the hospitality industry, including significant capital requirements and regulatory hurdles. InterContinental Hotels Group PLC's established brand and global presence provide a competitive advantage.

The hospitality industry is highly competitive, with many established players and new entrants vying for market share. InterContinental Hotels Group PLC must focus on differentiating its brands, investing in digital marketing, and improving operational efficiency to maintain its market position.

Capital Structure

Value
Debt Weight 218.76%
Debt Cost 4.31%
Equity Weight -118.76%
Equity Cost 8.81%
WACC -1.03%
Leverage -184.21%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

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PNDX-B.ST Pandox AB (publ) owns, operates, and leases hotel properties. The company operates through Property Management and Operator Activities segments. As of March 11, 2022, it operated 157 hotels with approximately …
RDW.L Redrow plc focuses on housebuilding activities in the United Kingdom. The company acquires land; and develops and sells residential housing properties. Redrow plc was founded in 1974 and is based …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
108.2$
Current Price
108.2$
Potential
0.00%

Expected Cash-Flows

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Peers Group Analysis

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