InterContinental Hotels Group PLC

IHG

NYSE · Hotels & Lodging

$178.75

At close - Nov 6, 4:00 PM EST - USD

Market Cap$26.41B

P/E36.7x

52W High$180.49

Volume274.97K

VCP Research Verdict2026Q2

Asset-Light Model Delivers Margins Amidst Deepening Leverage

IHG's asset-light franchise model generates structurally superior operating margins, with 25.2% in 2026Q2 significantly outperforming peers, driving strong free cash flow generation.

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MARKET ACTION

IHG price & volume

Price trend, volume and key moving averages

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Build the investment case

Start with the evidence for owning the stock and the risks that can break the thesis.

EXECUTIVE THESIS

The Investment Case

Full Analysis

Fundamental Trajectory

Revenue growth has decelerated to 4.7% in 2026Q2 from a post-pandemic peak of 59.7% in 2023Q2, while the operating margin of 25.2% demonstrates the structural advantage of the fee-based model.

Analyst Consensus-2.3% target

Hold(23 analysts)

9 Buy13 Hold1 Sell

The Bull Case

Upside Catalysts

Premium brand positioning

InterContinental Hotels & Resorts is positioned as a premium brand offering unique cultural experiences and intuitive hospitality in diverse global destinations.

Direct booking advantage

IHG promotes direct bookings through its platform, offering the best rates and enhancing customer loyalty and revenue capture.

Strong valuation metrics

IHG's forward P/E of 24.10 suggests improving earnings expectations, supported by a trailing P/E of 31.29, indicating growth potential.

The Bear Case

Key Downside Risks

Market performance

Price History →

Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return

IHG+28.72%

S&P 500 (^GSPC)+7.63%

1-Year Return

IHG+43.52%

S&P 500 (^GSPC)+9.69%

3-Year Return

IHG+152.96%

S&P 500 (^GSPC)+72.16%

5-Year Return

IHG+160.26%

S&P 500 (^GSPC)+59.81%

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis

Trailing P/E5Y High

36.7x

Forward P/EExpansion

30.8x

EV/EBITDA100th %ile

22.2x

FCF YieldCash Flow

3.3%

Valuation vs 5-Year History

Multiple Range

Metric

Current

5Y Median

Historical Range

Percentile

P/E

36.7x

28.9x

80th· High

EV/EBITDA

22.2x

18.9x

100th· High

Price/FCF

30.4x

20.5x

80th· High

Current Multiple

5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection

Bear$151.10-15.5%

Base (Fair)$250.18+40.0%

Bull$419.95+134.9%

$151.10 Bear$250.18 Base$419.95 Bull

Current Market Price: $178.75

Trades at a 28.6% discount to Base DCF ($250.18)

Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend

Revenue FY25

$5.19B+5.4% YoY

Net income FY25

$758M+20.7% YoY

Free cash flow FY25

$870M+34.7% YoY

Operating margin FY25

23.1%+1.9 pts YoY

ROIC (FY25)159.6%

Avg ROIC 5Y171.3%

ROE (FY25)-

Piotroski Score7 / 9

Financial Statements →

Monitor what changed

Recent results and news deserve attention only when they alter the forward view.

OPERATING RESULTS

Recent Earnings

Earnings History

EPS Beat Rate8/12 (67%)

Revenue Beat Rate9/12 (75%)

Quarter	EPS (Act vs Est)	Revenue (Act vs Est)
Q3 2026Latest Aug 11, 2026	$2.75+3.8% vs $2.65	$2.7B-1.6% vs $2.7B
Q1 2026 Feb 17, 2026	$2.59+0.8% vs $2.57	$2.7B-4.9% vs $2.8B
Q3 2025 Aug 4, 2025	$3.00+24.0% vs $2.42	$2.5B+116.2% vs $1.2B
Q1 2025 Feb 18, 2025	$1.74-24.0% vs $2.29	$2.6B+114.0% vs $1.2B

Historical baseline: 12 quarters analyzedGAAP / Adjusted

MARKET COVERAGE

Latest News

4 Stories

Accesswire·Oct 23, 2026

InterContinental Hotels Group PLC Announces Transaction in Own Shares - October 23

LONDON, UK / ACCESS Newswire / October 23, 2026 / The Company announces that on 22 October 2026 it purchased the following number of its ordinary shares of 20340/399pence each through Goldman Sachs International ("GSI") on the London Stock Exchange in accordance with the authority granted by shareholders at the Company's Annual General Meeting on 8 May 2025 (the "Purchase"). The Purchase was effected pursuant to instructions issued by the Company on 17 February 2026, as announced on 17 February 2026.

Seeking Alpha·Oct 22, 2026

InterContinental Hotels Group PLC (IHG) Q3 2026 Sales/Trading Call Transcript

MarketBeat·Oct 22, 2026

What Intercontinental Hotels Group (IHG) Said on Its Q3 Earnings Call

Intercontinental Hotels Group NYSE: IHG said global revenue per available room, or RevPAR, rose 5.3% in the third quarter of 2026, supported by broad-based growth in the U.S. and improvements across Europe, Middle East, Asia and Africa.

Reuters·Oct 22, 2026

Holiday Inn-owner IHG posts rise in quarterly room revenue on strong US demand

Filtered for InterContinental Hotels Group PLCMore Headlines

Compare before deciding

Benchmark IHG against direct peers instead of judging its metrics in isolation.

Peers Comparison

Key metrics vs top competitors for InterContinental Hotels Group PLC (IHG)

Full Screener →

Company	Price	Market Cap	P/E Ratio	Rev Growth (1Y)	Net Margin	ROE	Div Yield
IHGInterContinental Hotels Group PLCCurrent	$178.75	$26.41B	36.70	5.4%	14.61%	—	0.97%
MARMarriott International, Inc.	$416.47	$108.6B	41.00	4.33%	9.68%	—	0.64%
HLTHilton Worldwide Holdings Inc.	$370.45	$83.38B	49.25	7.74%	13.4%	—	0.16%
HHyatt Hotels Corporation	$184.32	$17.47B	95.48	116.96%	2.61%	5.19%	0.32%
WHWyndham Hotels & Resorts, Inc.	$77.35	$5.74B	28.45	1.49%	13.97%	43.21%	2.17%
CHHChoice Hotels International, Inc.	$118.91	$5.41B	26.20	0.75%	12.64%	139.04%	0.97%

Compare IHG vs Peers

InterContinental Hotels Group PLC (IHG) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs MAR

Most directly comparable listed peer for IHG.

Scale Benchmark

vs BKNG

Larger-name benchmark to compare IHG against a more recognizable public peer.

Peer Set

Compare Top 5

vs MAR, HLT, H, WH

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IHG Frequently Asked Questions

InterContinental Hotels Group PLC (IHG) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials

What is InterContinental Hotels Group PLC's revenue?

InterContinental Hotels Group PLC (IHG) reported $5.19B in revenue in fiscal year 2025. That is 4% less than the $5.41B of fiscal year 2000.

How fast is InterContinental Hotels Group PLC growing?

InterContinental Hotels Group PLC (IHG) grew revenue by 5.4% in fiscal year 2025, compared with the prior fiscal year.

Is IHG profitable?

Yes. InterContinental Hotels Group PLC (IHG) earned $758.0M in net income in fiscal year 2025 (a 14.6% net margin).

Dividend & Returns

Does IHG pay dividends?

Yes. InterContinental Hotels Group PLC (IHG) pays a dividend that yields 0.97% at the current price, a small yield.

What is InterContinental Hotels Group PLC's free cash flow?

InterContinental Hotels Group PLC (IHG) generated $870.0M in free cash flow in fiscal year 2025.

What if you invested $1,000 in IHG back in 2000?

Total return calculator · dividends reinvested · 26+ years of data

See returns →

Quarter

EPS (Act vs Est)

Revenue (Act vs Est)

Q3 2026Latest

Aug 11, 2026

$2.75+3.8%

vs $2.65

$2.7B-1.6%

vs $2.7B

Q1 2026

Feb 17, 2026

$2.59+0.8%

vs $2.57

$2.7B-4.9%

vs $2.8B

Q3 2025

Aug 4, 2025

$3.00+24.0%

vs $2.42

$2.5B+116.2%

vs $1.2B

Q1 2025

Feb 18, 2025

$1.74-24.0%

vs $2.29

$2.6B+114.0%

vs $1.2B

Company

Price

Market Cap

P/E Ratio

Rev Growth (1Y)

Net Margin

ROE

Div Yield

IHGInterContinental Hotels Group PLCCurrent

$178.75

$26.41B

36.70

5.4%

14.61%

—

0.97%

MARMarriott International, Inc.

$416.47

$108.6B

41.00

4.33%

9.68%

—

0.64%

HLTHilton Worldwide Holdings Inc.

$370.45

$83.38B

49.25

7.74%

13.4%

—

0.16%

HHyatt Hotels Corporation

$184.32

$17.47B

95.48

116.96%

2.61%

5.19%

0.32%

WHWyndham Hotels & Resorts, Inc.

$77.35

$5.74B

28.45

1.49%

13.97%

43.21%

2.17%

CHHChoice Hotels International, Inc.

$118.91

$5.41B

26.20

0.75%

12.64%

139.04%

0.97%