InterContinental Hotels Group PLC IHG.L
Composite 62/100; the shares have moved about 27% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Income ranks 42/100 — a slight mark against it.
Growth ranks 78/100 — a strong point in its favour. Quality ranks 69/100 — a moderate point in its favour. Momentum ranks 61/100 — a slight point in its favour.
Income ranks 42/100 — a slight mark against it.
What the company does IHG operates and franchises hotels under 17 brands globally, including InterContinental, Holiday Inn, and Kimpton, alongside the IHG Rewards loyalty program. Founded in 1777 and headquartered in Windsor, UK, it spans luxury, midscale, and extended-stay segments.
Key financials IHG reports gross margins of 61.9%, operating margins of 22.2%, and net margins of 14.6%. Revenue grew 2.7% and EPS grew 7.7%, with ROE at 0% and ROCE at 72.5%. Debt metrics include net debt/EBITDA of 2.80x and interest coverage of 6.94x.
Stock health Momentum is strong: +36.37% over 12 months, +20.99% over 6 months, and RSI(14) at 49.80. The Sideravia Score is 60.7, driven by high Quality (73.2) and Momentum (75.1), though Valuation is low at 41.3.
Price vs fair value The stock trades at a PREMIUM of 43.30% versus our fair-value estimate of 91.15 and at a discount of 0.70% to the 12-month target of 161.88. - Trading at a steep premium to fair value despite strong quality metrics (Sideravia) - Analyst target implies limited upside from current levels (analyst count 16.0) - Recent industry launches (Viceroy NYC, Radisson ChatGPT app) may support growth narrative (Hotel Dive) - High valuation multiples (P/E 26.45 fwd, EV/EBITDA 19.05) weigh on relative attractiveness
Looking forward Forward P/E of 26.45 suggests expectations for steady earnings growth, while the dividend yield of 1.2% and payout ratio of 34.9% reflect a balanced capital return strategy. Execution on brand expansion and loyalty program engagement will be key to justifying current multiples.
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Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.