InterContinental Hotels Group PLC (IHG.L) Stock Analysis

IHG is a global hospitality platform with 19 brands spanning value to luxury, operating a predominantly asset-light model focused on brand management, distribution, and loyalty rather than owning hotel real estate. By FY2025 it surpassed 1 million open rooms across ~6,963 hotels in 100+ countries, monetizing the system through royalty and management fees plus a System Fund structure that supports shared marketing/reservations investment. The competitive core is scale and IHG One Rewards (145m+ members), which drives higher-value direct bookings and creates a network effect that attracts and retains hotel owners. The Americas are the largest profit contributor, while EMEAA and Greater China are key growth engines. Management’s “growth algorithm” targets 12–15% adjusted EPS compound growth supported by net system growth, fee margin expansion, and aggressive buybacks; FY2025 delivered 16% adjusted EPS growth and substantial shareholder returns (~$1.1bn). Near-term scrutiny centers on a Q4 Americas RevPAR dip, but IHG enters 2026 with a large pipeline (~340k rooms) and strategic momentum in Luxury & Lifestyle via Ruby and Noted Collection. Overall, the report frames IHG as a scale-driven, loyalty-powered, asset-light compounder with premium earnings quality.