InterContinental Hotels (IHG) Stock

Many investors overlook hotel chains, even though they have shown strong financial results in the past. Marriott and IHG Group are top hotel operators with good profit margins and growth potential, but we believe IHG is the more attractive option. While Marriott has higher profits, IHG's ability to improve its margins and its strong future projects make it a more appealing investment opportunity.

InterContinental Hotels (IHG) has received a Zacks Rank #2 (Buy), indicating increased confidence in the company's potential earnings. This could lead to a rise in the stock price soon.

InterContinental Hotels Group PLC's shares have performed well, increasing by about 75% since my last update a year ago. The growth in the number of units has been strong, even though I was worried about how higher interest rates might affect project funding. Currently, IHG's stock is valued at around 28.5 times its earnings per share, which is an increase from 19.5 times before, and while the possibility of double-digit earnings growth is appealing, a slight decrease in this valuation could counterbalance it.

Kimpton has released its yearly forecast, showcasing new trends that will influence restaurant and bar menus in the coming year. The Culinary + Cocktail Trend Forecast features insights from their global team, highlighting unique ingredients and techniques like salted egg yolks, chili crunch, mushroom-infused teas, and freeze-dried fruit powder garnishes. These predictions aim to set the stage for exciting culinary experiences in 2025.

I still recommend buying IHG because of its good earnings outlook, strong demand, and healthy finances that allow for returns to shareholders. Although there was a small slowdown in revenue per available room in the third quarter of 2024, positive signs for future demand and improvements in the economy indicate that growth will pick up. IHG's ability to convert cash effectively and its low debt level put it in a good position for ongoing share buybacks, which will increase value for shareholders.

Intercontinental Hotels Group PLC (LSE:IHG) announced that revenue per available room increased in the third quarter, even with challenges in China. The company reported a 1.5% rise in global revenue per available room for the quarter on Tuesday.

Intercontinental Hotels Group PLC, which owns Holiday Inn, has seen its shares rise significantly since their interim earnings call in August. Investors are looking forward to the upcoming third-quarter results, hoping for continued positive performance. The company has indicated that it anticipates a 12-15% annual growth rate in adjusted earnings per share over the medium to long term.

InterContinental Hotels Group PLC announced that its revenue growth picked up in the last quarter, thanks to better performance in North America, which balanced out the decline in China. The company, which owns brands like Holiday Inn, Crown Plaza, and Kimpton, saw a 3.0% increase in revenue per available room (revPAR) in the first half of 2024, with a 3.2% rise in the second quarter compared to a 2.6% drop in the first quarter.

LONDON , July 17, 2024 /PRNewswire/ -- IHG Hotels & Resorts, a global leader in hospitality, today announces the launch of its Low Carbon Pioneers programme, which brings together energy efficient hotels that have no fossil fuels combusted on-site* and are backed by renewable energy. This group of low operational carbon hotels is the first community of its kind in the industry and will help IHG test, learn and share findings on sustainability measures.