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InterContinental Hotels Group

DB:IC1B
Snowflake Description

Good value average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IC1B
DB
£5B
Market Cap
  1. Home
  2. DE
  3. Consumer Services
Company description

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The last earnings update was 38 days ago. More info.


Add to Portfolio Compare Print
  • InterContinental Hotels Group has significant price volatility in the past 3 months.
IC1B Share Price and Events
7 Day Returns
-15%
DB:IC1B
-6.8%
DE Hospitality
-0.6%
DE Market
1 Year Returns
-41.4%
DB:IC1B
-48.1%
DE Hospitality
-20.9%
DE Market
IC1B Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
InterContinental Hotels Group (IC1B) -15% -26.1% -44.9% -41.4% -34.1% -33.8%
DE Hospitality -6.8% -31.3% -57.6% -48.1% -63.2% -70.6%
DE Market -0.6% -18.6% -26.2% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • IC1B outperformed the Hospitality industry which returned -48.1% over the past year.
  • IC1B underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
IC1B
Industry
5yr Volatility vs Market

Value

 Is InterContinental Hotels Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of InterContinental Hotels Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for InterContinental Hotels Group.

DB:IC1B Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:IC1B
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.78
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.782 (1 + (1- 19%) (45.26%))
1.046
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.046 * 6.07%)
5.96%

Discounted Cash Flow Calculation for DB:IC1B using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for InterContinental Hotels Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:IC1B DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 5.96%)
2020 440.03 Analyst x10 415.28
2021 549.73 Analyst x9 489.63
2022 626.58 Analyst x8 526.69
2023 808.67 Analyst x3 641.52
2024 884.00 Analyst x3 661.84
2025 933.53 Est @ 5.6% 659.61
2026 969.05 Est @ 3.81% 646.20
2027 993.73 Est @ 2.55% 625.38
2028 1,010.28 Est @ 1.67% 600.04
2029 1,020.88 Est @ 1.05% 572.23
Present value of next 10 years cash flows $5,838.00
DB:IC1B DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,020.88 × (1 + -0.39%) ÷ (5.96% – -0.39%)
$16,015.14
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $16,015.14 ÷ (1 + 5.96%)10
$8,976.92
DB:IC1B Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,838.00 + $8,976.92
$14,814.92
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $14,814.92 / 180.69
$81.99
DB:IC1B Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:IHG)
0.817
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $81.99 x 0.817
£66.96
Non-primary Listing Adjustment Factor 1 share in DB:IC1B represents 1.15452x of LSE:IHG
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.15452x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 66.96 x 1.15452
€77.31
Value per share (EUR) From above. €77.31
Current discount Discount to share price of €32.80
= -1 x (€32.80 - €77.31) / €77.31
57.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price InterContinental Hotels Group is available for.
Intrinsic value
>50%
Share price is €32.8 vs Future cash flow value of €77.31
Current Discount Checks
For InterContinental Hotels Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • InterContinental Hotels Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • InterContinental Hotels Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for InterContinental Hotels Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are InterContinental Hotels Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:IC1B PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $2.10
LSE:IHG Share Price ** LSE (2020-04-03) in GBP £28.41
LSE:IHG Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.224 $34.79
Germany Hospitality Industry PE Ratio Median Figure of 9 Publicly-Listed Hospitality Companies 21.1x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.57x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of InterContinental Hotels Group.

DB:IC1B PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:IHG Share Price ÷ EPS (both in USD)

= 34.79 ÷ 2.10

16.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • InterContinental Hotels Group is good value based on earnings compared to the DE Hospitality industry average.
  • InterContinental Hotels Group is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does InterContinental Hotels Group's expected growth come at a high price?
Raw Data
DB:IC1B PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
13.4%per year
Europe Hospitality Industry PEG Ratio Median Figure of 63 Publicly-Listed Hospitality Companies 0.96x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

DB:IC1B PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.53x ÷ 13.4%

1.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • InterContinental Hotels Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on InterContinental Hotels Group's assets?
Raw Data
DB:IC1B PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $-8.10
LSE:IHG Share Price * LSE (2020-04-03) in GBP £28.41
LSE:IHG Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.224 $34.79
Germany Hospitality Industry PB Ratio Median Figure of 12 Publicly-Listed Hospitality Companies 1.73x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:IC1B PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:IHG Share Price ÷ Book Value per Share (both in USD)

= 34.79 ÷ -8.10

-4.3x

* Primary Listing of InterContinental Hotels Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • InterContinental Hotels Group has negative assets, we can't compare the value of its assets to the DE Hospitality industry average.
X
Value checks
We assess InterContinental Hotels Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. InterContinental Hotels Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is InterContinental Hotels Group expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is InterContinental Hotels Group expected to grow at an attractive rate?
  • InterContinental Hotels Group's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • InterContinental Hotels Group's earnings growth is positive but not above the Germany market average.
  • InterContinental Hotels Group's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:IC1B Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:IC1B Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 13.4%
DB:IC1B Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts -11.6%
Germany Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 28.9%
Germany Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:IC1B Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:IC1B Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 2,445 752 1
2023-12-31 2,351 611 1
2022-12-31 2,214 706 596 6
2021-12-31 2,085 689 525 10
2020-12-31 1,797 563 397 9
2020-04-05
DB:IC1B Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 3,456 653 385
2019-09-30 3,396 625 404
2019-06-30 3,335 554 424
2019-03-31 3,251 610 388
2018-12-31 3,166 709 349
2018-09-30 3,113 722 431
2018-06-30 3,060 656 525
2018-03-31 3,016 617 533
2017-12-31 2,972 616 534
2017-09-30 3,791 545 543
2017-06-30 2,307 597 462
2017-03-31 2,011 675 438

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • InterContinental Hotels Group's earnings are expected to grow by 13.4% yearly, however this is not considered high growth (20% yearly).
  • InterContinental Hotels Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:IC1B Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from InterContinental Hotels Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:IC1B Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 5.49 5.49 5.49 1.00
2023-12-31 4.35 4.35 4.35 1.00
2022-12-31 3.38 3.78 2.52 9.00
2021-12-31 2.95 3.46 1.88 12.00
2020-12-31 2.22 3.05 0.87 12.00
2020-04-05
DB:IC1B Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 2.10
2019-09-30 2.16
2019-06-30 2.33
2019-03-31 2.14
2018-12-31 1.84
2018-09-30 2.21
2018-06-30 2.91
2018-03-31 2.93
2017-12-31 2.77
2017-09-30 2.97
2017-06-30 2.54
2017-03-31 2.34

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if InterContinental Hotels Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess InterContinental Hotels Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
InterContinental Hotels Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has InterContinental Hotels Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare InterContinental Hotels Group's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • InterContinental Hotels Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • InterContinental Hotels Group's 1-year earnings growth exceeds its 5-year average (10.3% vs -14.2%)
  • InterContinental Hotels Group's earnings growth has exceeded the DE Hospitality industry average in the past year (10.3% vs -36.8%).
Earnings and Revenue History
InterContinental Hotels Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from InterContinental Hotels Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:IC1B Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 3,456.00 385.00 791.00
2019-09-30 3,395.50 403.50 775.50
2019-06-30 3,335.00 424.00 366.00
2019-03-31 3,250.50 387.50 355.00
2018-12-31 3,166.00 349.00 738.00
2018-09-30 3,113.00 431.00 898.00
2018-06-30 3,060.00 525.00 314.00
2018-03-31 3,016.00 532.50 325.50
2017-12-31 2,972.00 534.00 709.00
2017-09-30 3,790.50 543.00 336.00
2017-06-30 2,307.00 462.00 323.00
2017-03-31 2,011.00 438.00 331.00
2016-12-31 2,866.00 456.00 345.00
2016-09-30 1,720.50 734.50 361.50
2016-06-30 1,726.00 1,055.00 384.00
2016-03-31 1,764.50 1,138.50 389.50
2015-12-31 1,803.00 1,222.00 395.00
2015-09-30 1,834.00 871.00 392.50
2015-06-30 1,865.00 520.00 390.00
2015-03-31 1,861.50 455.50 386.00
2014-12-31 1,858.00 391.00 382.00
2014-09-30 1,866.50 330.50 377.00
2014-06-30 1,875.00 270.00 372.00
2014-03-31 1,889.00 321.00 373.00
2013-12-31 1,903.00 372.00 374.00
2013-09-30 1,903.50 448.00 375.00
2013-06-30 1,893.00 606.00 376.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if InterContinental Hotels Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • InterContinental Hotels Group used its assets more efficiently than the DE Hospitality industry average last year based on Return on Assets.
  • InterContinental Hotels Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess InterContinental Hotels Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
InterContinental Hotels Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is InterContinental Hotels Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up InterContinental Hotels Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • InterContinental Hotels Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • InterContinental Hotels Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of InterContinental Hotels Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • InterContinental Hotels Group has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from InterContinental Hotels Group Company Filings, last reported 3 months ago.

DB:IC1B Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 -1,465.00 2,185.00 199.00
2019-09-30 -1,465.00 2,185.00 199.00
2019-06-30 -1,424.00 2,353.00 192.00
2019-03-31 -1,424.00 2,353.00 192.00
2018-12-31 -1,131.00 2,014.00 705.00
2018-09-30 -1,131.00 2,014.00 705.00
2018-06-30 -1,162.00 2,035.00 233.00
2018-03-31 -1,162.00 2,035.00 233.00
2017-12-31 -1,354.00 1,788.00 184.00
2017-09-30 -1,301.00 1,788.00 184.00
2017-06-30 -1,097.00 2,222.00 181.00
2017-03-31 -1,097.00 2,222.00 181.00
2016-12-31 -1,146.00 1,712.00 226.00
2016-09-30 -759.00 1,485.00 226.00
2016-06-30 -1,032.00 2,034.00 215.00
2016-03-31 -1,032.00 2,034.00 215.00
2015-12-31 319.00 1,442.00 1,137.00
2015-09-30 319.00 1,442.00 1,137.00
2015-06-30 -495.00 1,915.00 205.00
2015-03-31 -495.00 1,915.00 205.00
2014-12-31 -717.00 1,477.00 167.00
2014-09-30 -717.00 1,477.00 167.00
2014-06-30 -89.00 1,130.00 356.00
2014-03-31 -89.00 1,130.00 356.00
2013-12-31 -74.00 1,184.00 260.00
2013-09-30 -74.00 1,184.00 260.00
2013-06-30 416.00 1,206.00 396.00
  • InterContinental Hotels Group has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if InterContinental Hotels Group's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (29.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.8x coverage).
X
Financial health checks
We assess InterContinental Hotels Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. InterContinental Hotels Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is InterContinental Hotels Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.62%
Current annual income from InterContinental Hotels Group dividends. Estimated to be 3.73% next year.
If you bought €2,000 of InterContinental Hotels Group shares you are expected to receive €72 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • InterContinental Hotels Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.7%).
  • InterContinental Hotels Group's dividend is below the markets top 25% of dividend payers in Germany (4.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:IC1B Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Germany Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 11.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 316 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:IC1B Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 2.35 1.00
2023-12-31 1.34 2.00
2022-12-31 1.37 11.00
2021-12-31 1.36 16.00
2020-12-31 1.11 16.00
2020-04-05
DB:IC1B Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-27 1.258 3.034
2020-02-18 1.258 2.028
2018-12-14 1.204 1.935
2018-03-01 1.095 1.735
2018-02-20 1.095 1.611
2017-05-05 3.260 5.472
2016-03-03 9.471 19.967
2016-02-23 9.471 19.380
2015-07-30 1.049 2.163
2015-02-26 4.881 8.956
2015-02-17 4.881 9.359
2014-08-05 4.815 9.424
2014-02-19 2.901 5.723
2013-02-19 0.915 2.137
2012-03-29 0.842 2.222
2012-02-14 0.842 2.425
2011-08-09 0.784 2.928
2011-05-10 1.170 3.919
2010-03-17 0.634 2.270

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of InterContinental Hotels Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess InterContinental Hotels Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can InterContinental Hotels Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. InterContinental Hotels Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of InterContinental Hotels Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Keith Barr
COMPENSATION $3,317,000
AGE 48
TENURE AS CEO 2.8 years
CEO Bio

Mr. Keith Barr serves as a Non-Executive Director of YUM! Brands, Inc. since January 24, 2020. Mr. Barr has been the Chief Executive Officer of Intercontinental Hotels Group plc since July 1, 2017. He served as the Chief Commercial Officer of Intercontinental Hotels Group plc since May 2013 until July 1, 2017. Mr. Barr served as the Chief Executive Officer of Greater China at Intercontinental Hotels Group plc until April 2013. Mr. Barr served as Regional Managing Director at Intercontinental Hotels Group plc since June 2009 and as its Chief Operating Officer of Greater China since November 2008. Mr. Barr serves as Chief Operating Officer for Australia, New Zealand and South Pacific of Intercontinental Hotels Group PLC. He oversees the day to day regional operations of the InterContinental, Crowne Plaza and Holiday Inn brands. Previously, he served as Vice President of Operations for Intercontinental Hotels Group's midscale brands, overseeing 175 hotels operating under the Holiday Inn, Staybridge Suites and Candlewood Suites brands in the United States and Canada and prior to that he was Vice President of Operations for the Holiday Inn brand in the U.S. During his 15 years in the hotel industry, he has specialized in revenue management and branded hotel operations. He joined Intercontinental Hotels Group plc in 2000. He has extensive experience with managing owner relationships and coordinating franchise administration. He counts among his key achievements the successful restructuring of IHG's U.S. operations for Holiday Inn and the integration of the acquired Bristol Hotels & Resorts into the Group. He spent more than 25 years working in the hospitality industry across a wide range of roles. He started his career in hotel operations and joined IHG in 2000. He was an integral part of the team that led Bristol's rapid expansion from 10 hotels to 120, to become the largest franchisee for the Holiday Inn and Crowne Plaza brands. A trained chef, he was also at one time a restaurant reviewer for the American Express restaurant award programme and the Mobil Travel Guide. He has been a Director of Intercontinental Hotels Group plc since July 1, 2017. He is a graduate of Cornell University’s School of Hotel Administration. He is member of Cornell University’s School of Hotel Administration Leland C. and Mary M. Pillsbury Institute for Hospitality Entrepreneurship Advisory Board. He has also previously on the Board of Directors for the Georgia Hospitality and Travel Association and the Board of Advisors for the Atlanta Chamber of Commerce. Barr is currently a member of the Dean's Advisory Board for the School of Hotel Administration, Cornell SC Johnson College of Business.

CEO Compensation
  • Keith's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Keith's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the InterContinental Hotels Group management team in years:

2.5
Average Tenure
53
Average Age
  • The tenure for the InterContinental Hotels Group management team is about average.
Management Team

Keith Barr

TITLE
CEO & Director
COMPENSATION
$3M
AGE
48
TENURE
2.8 yrs

Paul Edgecliffe-Johnson

TITLE
CFO, Group Head of Corporate Strategy & Executive Director
COMPENSATION
$2M
AGE
47
TENURE
6.3 yrs

Elie Maalouf

TITLE
CEO of the Americas & Executive Director
COMPENSATION
$2M
AGE
55
TENURE
5.2 yrs

Laura Miller

TITLE
Chief Investment Officer
AGE
54
TENURE
2.2 yrs

Daniel Blanchard

TITLE
Chief Technology Officer
TENURE
0.2 yrs

Heather Wood

TITLE
VP & Head of Investor Relations

Nicolette Henfrey

TITLE
Executive VP
TENURE
1.2 yrs

Michael Torres

TITLE
Chief Communications Officer & VP of Corporate Communications - Americas Region

Claire Bennett

TITLE
Global Chief Marketing Officer
AGE
53
TENURE
2.5 yrs

Chris Moloney

TITLE
Chief Operating Officer of South West Asia
Board of Directors Tenure

Average tenure and age of the InterContinental Hotels Group board of directors in years:

6.3
Average Tenure
57
Average Age
  • The tenure for the InterContinental Hotels Group board of directors is about average.
Board of Directors

Patrick Cescau

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$449K
AGE
70
TENURE
7.3 yrs

Keith Barr

TITLE
CEO & Director
COMPENSATION
$3M
AGE
48
TENURE
2.8 yrs

Paul Edgecliffe-Johnson

TITLE
CFO, Group Head of Corporate Strategy & Executive Director
COMPENSATION
$2M
AGE
47
TENURE
6.3 yrs

Elie Maalouf

TITLE
CEO of the Americas & Executive Director
COMPENSATION
$2M
AGE
55
TENURE
2.3 yrs

Craig Hunt

TITLE
Vice-Chairman of Bass Hotels & Resorts Inc and Director of Bass Hotels & Resorts Inc

Ian Dyson

TITLE
Independent Non-Executive Director
COMPENSATION
$104K
AGE
57
TENURE
6.6 yrs

Jo Harlow

TITLE
Independent Non-Executive Director
COMPENSATION
$104K
AGE
57
TENURE
5.6 yrs

Dale Morrison

TITLE
Senior Independent Non-Executive Director
COMPENSATION
$121K
AGE
70
TENURE
5.9 yrs

Christopher Mayhew

TITLE
Independent Non-Executive Director
COMPENSATION
$79K
AGE
66
TENURE
8.8 yrs

Jill McDonald

TITLE
Independent Non-Executive Director
COMPENSATION
$92K
AGE
53
TENURE
6.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess InterContinental Hotels Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. InterContinental Hotels Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company operates hotels, resorts, restaurants, and spas under the InterContinental Hotels & Resorts, Regent, Six Senses, Kimpton Hotels & Restaurants, Hotel Indigo, EVEN HOTELS, HUALUXE, Crowne Plaza, Voco, Holiday Inn, Holiday Inn Express, Holiday Inn Club Vacations, avid, Staybridge Suites, Atwell Suites, and Candlewood Suites brand names. It also provides IHG Rewards Club, a hotel loyalty program. As of February 28, 2020, the company had approximately 5,900 hotels and 884,000 rooms in approximately 100 countries. InterContinental Hotels Group PLC was founded in 1777 and is headquartered in Denham, the United Kingdom.

Details
Name: InterContinental Hotels Group PLC
IC1B
Exchange: DB
Founded: 1777
£5,825,982,033
180,691,705
Website: http://www.ihgplc.com
Address: InterContinental Hotels Group PLC
Broadwater Park,
Denham,
Buckinghamshire, UB9 5HR,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE IHG Ordinary Shares London Stock Exchange GB GBP 31. Mar 2003
OTCPK ICHG.F Ordinary Shares Pink Sheets LLC US USD 31. Mar 2003
DB IC1H Ordinary Shares Deutsche Boerse AG DE EUR 31. Mar 2003
BST IC1H Ordinary Shares Boerse-Stuttgart DE EUR 31. Mar 2003
BMV IHG N Ordinary Shares Bolsa Mexicana de Valores MX MXN 31. Mar 2003
BATS-CHIXE IHGL Ordinary Shares BATS 'Chi-X Europe' GB GBP 31. Mar 2003
NYSE IHG SPON ADR EACH REPR 1 ORD(POST SPLIT) New York Stock Exchange US USD 08. Feb 1990
DB IC1B SPON ADR EACH REPR 1 ORD(POST SPLIT) Deutsche Boerse AG DE EUR 08. Feb 1990
Number of employees
Current staff
Staff numbers
14,436
InterContinental Hotels Group employees.
Industry
Hotels, Resorts and Cruise Lines
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 23:41
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/02/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.