InterContinental Hotels Group PLC (IHG) AI Stock Analysis

InterContinental Hotels Group PLC is a global hospitality company with a portfolio of owned, managed, franchised, and leased properties. Its brand lineup includes luxury and lifestyle brands such as Six Senses, Regent, InterContinental Hotels & Resorts, and Kimpton Hotels & Restaurants, alongside Vignette Collection, Hotel Indigo, EVEN Hotels, and HUALUXE. It also operates mainstream brands including Holiday Inn and Holiday Inn Express for business and leisure travelers. Guest loyalty is supported by the IHG Rewards program. As of December 31, 2021, the company operated 5,991 hotels and 880,327 rooms across approximately 100 countries worldwide.

Over a 5-year span from FY2020 to FY2025, revenue expanded at a compound annual growth rate of 16.7%. Annual revenue rose from $2.91B in FY2021 to $3.89B in FY2022, before dipping 4.2% to $3.73B in FY2023. Revenue subsequently rebounded 32.1% to $4.92B in FY2024 and grew 5.4% to $5.19B in FY2025, when net income reached $758.0M with a net margin of 14.6%. For the trailing twelve months ending June 30, 2026, revenue stood at $5.33B with an operating margin of 25.1%. In the latest quarter ending June 30, 2026, quarterly revenue grew 5.6% year-over-year, while quarterly earnings declined 5.4%.

As of June 30, 2026, the company held $831.0M in cash and short-term investments against total debt of $4.55B, resulting in net debt of $3.72B. Total assets were $5.23B, while shareholders' equity stood at -$2.98B and the current ratio was 0.66. In FY2025, operating cash flow reached $898.0M and capital expenditures were $28.0M, supporting free cash flow of $870.0M. Capital allocation in FY2025 included $907.0M in share buybacks and $270.0M in dividends paid, contributing to a 5-year share count change of -17.9%.

At a last close of $167.77 on October 16, 2026, IHG has a market capitalization of $24.50B and an enterprise value of $25.73B. The stock trades at a trailing P/E of 35.6x and a forward P/E of 22.3x, compared to the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its enterprise value-to-EBITDA stands at 18.8x, above the peer median of 11.1x. Over the past year, IHG delivered a 43.2% return, outperforming the S&P 500 (SPY) return of 16.8%. Over five years, the stock returned 163.0% versus 83.0% for the S&P 500.

IHG pays a semiannual forward annual dividend of $1.90, reflecting a dividend yield of 1.13%. The payout ratio is 90.3%, and the company has paid dividends for 5 consecutive years. Over five years, annualized dividend growth has been 27.3%. Its last ex-dividend date was August 21, 2026.

Wall Street analyst coverage includes 2 Strong Buy, 0 Buy, 1 Hold, 2 Sell, and 2 Strong Sell ratings. The mean price target is $148.83, representing an 11.3% decline from the last close of $167.77. Over the last 4 quarters, the company posted 2 EPS beats. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $5.97, reflecting 19.0% growth. For the next fiscal year, 5 analysts project EPS of $6.77 on revenue of $2.78B.

This page is an AI-written research summary of InterContinental Hotels Group PLC (IHG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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