InterContinental Hotels

Research evidence excerpt

InterContinental Hotels

UK | Lodging

InterContinental Hotels EquityJuneResearch26, 2026

TARGET | ESTIMATE CHANGEStronger fundamentals supporting re-rating;

RATING BUYPT to $195

PRICE $171.70^

The RevPAR momentum is trending ahead of expectations, supported by

strength in the US, and offering scope for upgrades. More importantly, we PRICE TARGET | % TO PT $195.00 ($160.00) | +14%

are increasingly confident on a sustainable NUG acceleration, supported 52W HIGH-LOW $174.55 - $112.17

by the recent brands strategy development and L&L strong momentum. FLOAT (%) | ADV MM (USD) 86.8% | 67.40

Together with a sector-leading growth algo, this underpins further valuation MARKET CAP $26.3B

re-rating, in our view. The stock is our sector-pick. PT raised to $195. TICKER IHG LN ^Prior trading day's closing price unless otherwise

noted.

What's new? (1) we raise our adj. EPS by c.2% on better-than-expected RevPAR (JEFe c.3%

above consensus); (2) we detail the drivers underpinning our confidence on a sustainable net

FY (Dec) CHANGE TO JEFe JEF vs CONS

unit growth (NUG) acceleration to c.5% (vs. 4-4.5% prev.), with scope for further upside over

2026 2027 2026 2027

the MT; (3) we raise our PT to $195, with re-rating justified by NUG acceleration and consistent

delivery on industry-leading EPS algo. EPS <-1% +2% +1% +3%

EPS <-1% +2% +1% +3%

Better-than-expected RevPAR momentum: we raise our FY26 RevPAR growth forecast from

2.5% to 3.3% (consensus 2.6%). This reflects a better-than-expected US momentum since 2026 ($) 1Half 2Half FY

the start of the year (Americas RevPAR +3.6% y/y 1Q26; +4.7% 2Q26E). While the World Cup EPS -- -- 5.72

will contribute to it, the underlying trends accelerated, and we expect this momentum to be PREV 5.76

sustained into the back-end of the year.