InterContinental Hotels Group PLC · IHG · FY2023 Q2 · Calendar Q3 2023
IHG sustains growth as RevPAR and fee margins advance
The supplied analysis supports a constructive but qualified view: IHG's demand recovery, fee-margin expansion and conversion-led system growth provide evidence for continued earnings momentum, while US demand, financing conditions and execution remain important tests.
Earnings scorecard
Reported versus consensusMarket reaction
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Transcript intelligence
What changed
Compared with the prior-quarter analysis, the current analysis shows H1 RevPAR growth of 24% year over year, fee margin at 58.8%, net system growth of 4.8%, and a new mid-scale conversion brand. The analysis also shifts the key watchpoints toward flat US RevPAR, softer leisure and group trends, and execution of the Iberostar-related growth plan.
Guidance delta
Management maintained its 4% net unit growth guidance; no reduction was identified in the supplied analysis.
Key takeaways
- H1 RevPAR rose 24% year over year and stayed above pre-pandemic peaks for a fourth consecutive quarter.
- Fee margin reached 58.8%, while operating profit increased 27% year over year to $479 million.
- Net system size grew 4.8%; conversions represented about 40% of signings and openings.
Management priorities
- Expand hotel conversions, including the new mid-scale conversion brand.
- Continue developing luxury and lifestyle brands and the IHG One Rewards ecosystem.
- Return capital through share buybacks and dividend growth while expanding owner-focused initiatives.
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Analyst 52W Price Targets
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 26, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Jefferies | Buy | Buy | Maintain | Jun 26, 2026 |
| Bernstein | Market Perform | Market Perform | Maintain | May 15, 2026 |
| Morgan Stanley | Equal Weight | Underweight | Upgrade | Oct 1, 2025 |
| JP Morgan | Overweight | Underweight | Upgrade | Sep 26, 2025 |
| Deutsche Bank | Hold | Sell | Upgrade | Apr 14, 2025 |
| Barclays | Overweight | Equal Weight | Upgrade | Nov 15, 2024 |
| Societe Generale | Hold | Buy | Downgrade | Feb 7, 2024 |
| UBS | Buy | Neutral | Upgrade | Jan 5, 2022 |
| Berenberg | Buy | Hold | Upgrade | Sep 17, 2021 |
| SunTrust Robinson Humphrey | Neutral | Neutral | Maintain | Nov 25, 2020 |
| RBC Capital | Outperform | Sector Perform | Upgrade | Nov 25, 2020 |
| Raymond James | Underperform | Market Perform | Downgrade | Nov 25, 2020 |
| Oriel | Buy | Hold | Upgrade | Nov 25, 2020 |
| Numis Securities | Buy | Hold | Upgrade | Nov 25, 2020 |
| MKM Partners | Buy | Neutral | Upgrade | Nov 25, 2020 |
| Investec | Buy | Hold | Upgrade | Nov 25, 2020 |
| Goldman Sachs | Neutral | Buy | Downgrade | Nov 25, 2020 |
| Exane BNP Paribas | Neutral | Outperform | Downgrade | Nov 25, 2020 |
| Credit Suisse | Neutral | Outperform | Downgrade | Nov 25, 2020 |
| Citigroup | Neutral | Buy | Downgrade | Nov 25, 2020 |
| Bank of America | Buy | Neutral | Upgrade | Nov 25, 2020 |
| Baird | Neutral | Outperform | Downgrade | Nov 25, 2020 |
| B of A Securities | Buy | Buy | Maintain | Oct 20, 2017 |
Named analyst price targets
Upside is calculated against the persisted current price $162.4. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| UBS | Jarrod Castle | $188 | $155.27 | +15.8% | Sep 2, 2026 |
| Berenberg Bank | Analyst unavailable | $178 | $163.25 | +9.6% | Aug 27, 2026 |
| Deutsche Bank | Analyst unavailable | $145 | $164.98 | -10.7% | Jul 10, 2026 |
| Jefferies | Analyst unavailable | $195 | $174.13 | +20.1% | Jun 25, 2026 |
| Goldman Sachs | Analyst unavailable | $188 | $162.97 | +15.8% | Jun 10, 2026 |
| Bernstein | Richard Clarke | $154 | $149.92 | -5.2% | May 15, 2026 |
| Morgan Stanley | Analyst unavailable | $145 | $140.69 | -10.7% | Feb 25, 2026 |
| UBS | Analyst unavailable | $150 | $146.31 | -7.6% | Feb 20, 2026 |
| Berenberg Bank | Jack Cummings | $157 | $139.21 | -3.3% | Jan 20, 2026 |
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Start freeCompany context
Snapshot as of publicationInterContinental Hotels Group PLC (IHG) is a prominent global hospitality enterprise whose business model encompasses the ownership, management, franchising, and leasing of hotel properties. Its extensive operations span diverse geographic regions, including the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company boasts a comprehensive portfolio of renowned hotel brands, offering options across various segments.…
Historical context
All IHG earningsConsumer Cyclical peers this season
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|---|---|---|---|---|
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Latest beats and misses
Who reports nextBeat on EPS
- FCNCAFY2026 Q3 · October 23, 2026+19.9% EPS+8.2% move
- FCNCNFY2026 Q3 · October 23, 2026+19.9% EPS+0.2% move
- FCNCOFY2026 Q3 · October 23, 2026+19.9% EPS+1.0% move
- FCNCPFY2026 Q3 · October 23, 2026+19.9% EPS+1.0% move
- RDYFY2027 Q2 · October 23, 2026+24.0% EPS-0.2% move
- SLBFY2026 Q3 · October 23, 2026+3.7% EPS+7.1% move
Missed on EPS
- INFYFY2027 Q2 · October 23, 2026-4.8% EPS-6.6% move
- BBDFY2026 Q3 · October 22, 2026-7.7% EPS+3.0% move
- SNAFY2026 Q3 · October 22, 2026-5.9% EPS-3.4% move
- SPOTFY2026 Q3 · October 22, 2026-11.6% EPS+11.1% move
- VRSNFY2026 Q3 · October 22, 2026-2.0% EPS-0.9% move
- HBANMFY2026 Q3 · October 22, 2026-5.3% EPS+0.5% move
Get the IHG recap when the next report posts
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2024-11-11T06:39:45.180704+00:00
- Polygon adjusted daily market bars · 2026-10-26T04:30:41.994601+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-26T04:30:41.991790+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-26. For educational purposes only; not investment advice.