| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 25 | 34.4x | 17.3x | Bottom tier | |
Growth | 58 | 5.4% | 7.1% | Around median | |
Quality | 99 | — | 4.5% | Top tier | |
Safety | 19 | 3.1x | 2.6x | Bottom tier | |
Capital Return | 59 | 2.02% | 0.06% | Around median | |
Momentum | 85 | 26.1% | -1.6% | Top tier | |
Sentiment | 86 | 9 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
InterContinental Hotels Group PLC operates a global hospitality system comprising 7,100 hotels across 21 brands and generates a significant portion of its income through franchise, management, and platform-related service fees, alongside a limited portfolio of 17 owned or leased hotels. Fee business revenue reached $971.0 million in the first half of fiscal year 2026, out of $1.3 billion in total reportable segment revenue, while the fee margin reached 65.9%. The group also benefits from IHG One Rewards, co-branded credit cards, branded residences, and its commercial and technology services for hotel owners.
In Q2 fiscal year 2026 (ended 2026-06-30), IHG recorded revenue of $2.7 billion, up 4.7% year over year from $2.5 billion in Q2 fiscal year 2025. Net income was $425.0 million and diluted earnings per share were 2.83, compared with $473.0 million and 3.03, respectively, a year earlier. Gross margin increased to 26.9% from 25.5%, while operating margin declined to 25.2% from 25.5%, and operating cash flow reached $355.0 million.
The operating mix in the first half of fiscal year 2026 was characterized by broad-based demand sources: global RevPAR grew 4.1%, with increases of 4.8% in the Americas, 3.0% in EMEAA, and 3.1% in Greater China. Group demand rose 6%, leisure 3%, and business 2%, while fee revenue grew 7% and fee operating profit grew 8%. The group opened 31,500 rooms across 197 hotels and signed 49,200 rooms across 352 hotels, lifting net system size by 5%.
Q2 FY2026
When: 2026-10-22
Global RevPAR growth at the 4.1% threshold
Net system size growth at the 5% threshold
Analyst targets indicate a median of $183 within a range of $145 to $195 based on three analysts, an indicative reading due to low confidence that measures the expected growth analysts incorporate into their targets. The industry-multiple valuation is $168 within a wide range of $112 to $400, based on earnings over the last 12 months and a median multiple of 34.5 for eight companies, measuring IHG as its peer companies are priced. The two methods converge at $168 and $183, but the breadth of the industry-multiple range reflects variation in peer valuations, while analyst targets incorporate company-specific growth assumptions; statistically, analyst targets tend toward optimism, while cash flow models tend toward conservatism. The average consensus target is $174.67 with a neutral recommendation, after Deutsche Bank raised its target on 2026-07-10 to $145 from $135.
Figures in the text are as of 2026-09-27; the live price is shown at the top of the page.
IHG primarily relies on franchise, management, and service fees from its hotel system, alongside 17 owned or leased hotels. In the first half of fiscal year 2026, fee business revenue was $971.0 million and operating profit was $640.0 million, with a fee margin of 65.9%. IHG One Rewards, co-branded credit cards, branded residences, and hotel owner services add further fee sources to its model.
In Q2 fiscal year 2026 (ended 2026-06-30), revenue was $2.7 billion, up 4.7% year over year. The company recorded net income of $425.0 million, diluted earnings per share of 2.83, and operating cash flow of $355.0 million. Gross margin increased to 26.9%, but operating margin declined to 25.2% from 25.5% a year earlier.
In the first half of fiscal year 2026, IHG opened approximately 31,500 rooms across 197 hotels, achieving gross system growth of 6.5% and net growth of 5%. It signed 49,200 rooms across 352 hotels, with organic growth in signings and openings of 8%. The development pipeline also represents 33% future room growth, with approximately 50% under construction.
Automated analysis for informational purposes only — not investment advice.
IHG One Rewards membership exceeded 160 million members at the start of fiscal year 2026, and loyalty contribution reached approximately 67% of room nights globally and 73% in the United States. IHG's enterprise platform generated 83% of booked room revenue for its hotels, while app visits increased 9% year over year. The company aims to deploy cloud-based property management systems in 4,000 hotels by the end of fiscal year 2026, alongside AI-powered natural-language search and a hotel content platform.
In the first half of fiscal year 2026, RevPAR in EMEAA grew 3.0%, but second-quarter growth slowed to 0.6% due to a 19% decline in the Middle East. This subregion represents 5% of IHG's global portfolio and slightly less than 20% of EMEAA, while the rest of the region grew 4% in the second quarter. In Greater China, RevPAR growth slowed from 5.7% in the first quarter to 0.8% in the second quarter, despite first-half growth reaching 3.1%.
In Q2 fiscal year 2026 (ended 2026-06-30), total debt was $4.6 billion versus cash and investments of $825.0 million. The diluted share count declined 4.2% to 151.1 million shares from 157.8 million shares a year earlier, supported by a $950.0 million repurchase program. The program was 42% complete at the end of the first half, while management targets net debt to EBITDA within a range of 2.5 to 3 times by the end of fiscal year 2026.