UK's InterContinental Hotels H1 RevPAR up 4.1%
UK's InterContinental Hotels H1 RevPAR up 4.1%
Overview
UK hospitality group's half-year revenue from reportable segments grew 7% yr/yr, operating profit up 10%
Adjusted EPS rose 13%, driven by robust RevPAR and margin expansion
Company completed 42% of $950 mln share buyback program by period end
Outlook
Company expects to meet full-year consensus profit and earnings expectations
Company anticipates 2026 adjusted interest expense of $230-240 mln
Company continues to expect Middle East disruption to be offset by growth elsewhere
Result Drivers
REVPAR GROWTH - Co said global RevPAR rose 4.1% in H1, with strongest gains in the Americas, supported by the FIFA World Cup and robust demand across guest segments
SYSTEM EXPANSION - Net system growth of 5% year-on-year, with record hotel openings and signings up 8% organically, contributed to revenue and profit gains
FEE MARGIN EXPANSION - Fee margin rose 1.2 percentage points as fee business revenue grew 7%, outpacing a 4% increase in costs, driven by operational leverage and efficiency initiatives
Company press release: ID:nRSK0515Qa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Reportable Segments Revenue |
| $1.26 bln |
|
H1 Dividend |
| $0.65 |
|
H1 Global RevPAR growth |
| 4.10% |
|
H1 Reportable Segments Operating Profit |
| $665 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and 5 "sell" or "strong sell"
The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy."
Wall Street's median 12-month price target for InterContinental Hotels Group PLC is $157.33, about 1.1% above its August 10 closing price of $155.55
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 24 three months ago
Reuters Recommended Reads
Aug 10 - Ryman Hospitality strikes $1.38 billion deal for Grande Lakes Orlando
Aug 10 - Brookdale returns to Q2 profit as RevPAR rises
Aug 10 - Target Hospitality beats Q2 revenue estimates on WHS segment growth, raises FY outlook
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)