InterContinental Hotels Group: Remain Confident On Growth Recovery And Capital Return Momentum

(11min)

Summary

  • I maintain a buy rating on IHG due to positive EPS outlook, solid demand momentum, and strong balance sheet enabling capital returns to shareholders.
  • Despite a slight RevPAR slowdown in 3Q24, positive forward demand indicators and macroeconomic improvements suggest growth will accelerate.
  • IHG's strong cash conversion and low leverage ratio position it well for continued share buybacks, enhancing shareholder value.

Wide shot hotel manager helping businessman at hotel front desk

Thomas Barwick

Investment summary

My previous investment thought on InterContinental Hotels Group (NYSE:IHG) (published on 7th March) was a buy rating because of the positive EPS outlook. The demand momentum and management execution were also solid when

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I focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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