InterContinental Hotels Group PLC ADR logo

InterContinental Hotels Group PLC ADR(IHG)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL RECENCY
3-STAR RATING
STRONG BUY
BUY for 17 days
PROFIT SINCE LAST BUY
+7.58% ▲
LAST CLOSE
$178.75
11/06/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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  • BUY Advisory
  • SELL Advisory (Profit)
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Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for IHG

11/06/2026: IHG (3-star) is a STRONG-BUY. BUY for 17 days. Simulated Profits (7.58%). Updated daily EoD!

InterContinental Hotels Group (IHG) is a leading global hospitality company operating through an asset-light, franchise-heavy business model. The company generates consistent cash flow by licensing recognizable brands such as Holiday Inn and InterContinental to third-party hotel owners. Its core strength lies in its expansive global reach and a loyalty program that incentivizes repeat bookings. While growth is supported by a significant development pipeline and a move into the high-margin luxury segment, the stock is exposed to risks regarding economic cyclicality and intense competition from alternative lodging. It is best suited for income and value-oriented investors who can monitor travel sector trends and unit growth metrics.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitWhile IHG offers steady unit growth, it is a mature business rather than a high-growth tech disruptor.
Momentum investorMixed fitThe stock can follow travel sentiment trends, making it conditional on broader market upturns.
Value investorStrong fitThe stock is often viewed as a value play due to its established asset-light business model and consistent cash flows.
Dividend investorStrong fitIHG provides a reliable dividend profile suitable for income-focused portfolios.
Low-risk investorMixed fitWhile it is a blue-chip name, the travel industry remains inherently sensitive to global economic cycles.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumTravel stocks are sensitive to macro news and seasonality.
Valuation riskMediumThe stock price depends on sustained RevPAR growth expectations.
Competition risk (Direct hotel chains)Medium / highConstant pressure from peers like Marriott and Hilton to capture brand loyalty.
Business qualityStrongThe asset-light franchise model provides high-quality, recurring cash flows.
Dividend incomeMediumDividends are dependent on stable hotel profitability.
Execution riskMediumSuccessful conversion of the massive development pipeline is key to growth.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Smooth
PRICE STABILITY

Smooth

The stock has moved along a generally orderly path with only modest fluctuations.

Analysis of Past Performance

Type Stock
Historic Profit 55.5%
Avg. Invested days 47
Today’s Advisory Strong Buy
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 11/06/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
IHG receives a 3-star rating, supported by solid unit economics, and solid quantitative characteristics. The rating is constrained by soft analyst coverage, weak price momentum, and limited analyst upside.

Company Fundamentals

★★★★★
IHG has moderate overall fundamentals (3 stars), with moderate financial health, solid growth momentum, and moderate ownership. In FY2025 versus FY2024, solid earnings growth (+20.7%) and strong cash generation (FCF margin 16.8%) are partially offset by moderate revenue growth (+5.4%), very low insider ownership of 0.13%.

Financial Health Rating

★★★★★
IHG's financial health is supported by solid cash strength, including free-cash-flow generation (16.8% of revenue). Liquidity is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is IHG's strongest growth driver at +34.7% FY2025 versus FY2024 (solid, 4 stars). Revenue growth (+5.4%, moderate) and earnings growth (+20.7%, solid) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 11.3% (soft) and 573.9% of outstanding shares are publicly tradable (strong). Insider ownership is only 0.13%, which materially reduces the ownership score.

Top 5 Institutional Investors

FMR Inc 3.93%
Morgan Stanley - Brokerage Accounts 0.55%
The Goldman Sachs Group Inc 0.47%
Natixis Advisors, LLC. 0.33%
Bank of America Corp 0.33%

Unit Economics (Per $1K Revenue)

★★★★★
IHG generates approximately $320 of gross profit, $231 of operating income, and $168 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Solid margins, cash conversion, and capital efficiency support the rating.

Economic Dimensions

★★★★★
Effective Tax Rate: 29.33%

Quantitative Style Profile

★★★★★
IHG has a high-quality, large-cap, liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Quality TiltLarge / Mega Cap StabilityHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 26.05B USD
Price to earnings Ratio 37.95
1Y Target Price 153.6
Price to earnings Ratio 37.95
1Y Target Price 153.6
Volume (30-day avg) 239.8K shares
Beta 0.96
52 Weeks Range 122.92 - 180.49
Updated Date 11/08/2026
52 Weeks Range 122.92 - 180.49
Updated Date 11/08/2026
Dividends yield (FY) 1.07%
Basic EPS (TTM) 4.71

How Company Makes Money

Business areaWhat it includesRetail investor read
Franchise FeesRoyalties paid by hotel owners for using IHG brands and booking systems.This is the 'cash cow' segment requiring little capital expenditure.
Management FeesRevenue from managing hotels on behalf of property owners.Stable service-based revenue stream.
Geography: AmericasOperations in North, Central, and South America.Major market contributing the largest share of global revenue.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Valuation

Trailing PE 37.95
Forward PE 25.45
Enterprise Value 29.65B
Price to Sales(TTM) 4.89
Enterprise Value 29.65B
Price to Sales(TTM) 4.89
Enterprise Value to Revenue 5.54
Enterprise Value to EBITDA 21.5
Shares Outstanding 145.75M
Shares Floating 836.45M
Shares Outstanding 145.75M
Shares Floating 836.45M
Percent Insiders 0.13
Percent Institutions 11.33

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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