InterContinental Hotels Group PLC Announces Transaction in Own Shares
December 25, 2022
Trending News ☀️
INTERCONTINENTAL ($LSE:IHG): It operates some of the world’s most renowned hotel brands including InterContinental, Crowne Plaza, Holiday Inn, Kimpton, and Candlewood Suites. IHG’s mission is to provide guests with true hospitality around the world. On December 19, InterContinental Hotels Group PLC announced a transaction in its own shares. The company said that the purchase was made to meet its obligations under its share-based payment plan. The company further said that the purchased shares will be held in treasury and will be cancelled.
IHG’s share-based payment plan provides for the granting of share options to employees of the company and its subsidiaries. The company said that it plans to use treasury shares to meet the obligations arising from the exercise of these share options. The transaction indicates that IHG is confident in its long-term prospects and is willing to invest in its own stock. It also signals that the company is committed to delivering value to its shareholders and employees by providing long-term incentives through share-based payments.
Market Price
At the time of writing, media coverage of the news was mostly positive. On Monday, INTERCONTINENTAL HOTELS stock opened at £48.0 and closed at £47.6, down by 0.9% from the prior closing price of 48.1. The announcement of the transaction in own shares follows a period of strong financial performance for the company. The transaction in own shares is seen by many investors as a sign of confidence in the company’s long-term prospects and its ability to continue to deliver strong returns to shareholders.
It is also seen as a signal that the company is not afraid to invest in itself and shows its commitment to value creation. Overall, the announcement of the transaction in own shares has been viewed positively by investors and analysts alike, with many expecting the company’s share price to remain stable or even increase in the near term. As such, InterContinental Hotels Group PLC remains an attractive investment option for those seeking exposure to the hospitality industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Intercontinental Hotels. More…
| Total Revenues | Net Income | Net Margin |
| 3.52k | 434 | 12.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Intercontinental Hotels. More…
| Operations | Investing | Financing |
| 638 | -2 | -187 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Intercontinental Hotels. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.66k | 5.84k | -6.42 |
Key Ratios Snapshot
Some of the financial key ratios for Intercontinental Hotels are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -7.9% | -0.1% | 20.8% |
| FCF Margin | ROE | ROA |
| 16.2% | -34.4% | 9.8% |
VI Analysis
Intercontinental Hotels has a strong financial standing and a good health score of 8/10, according to the VI Star Chart. This score is based on its cash flows and debt, and the company has proven that it is capable of funding future operations and paying off debt. The company is strong in terms of liquidity, medium in growth, profitability and weak in assets, dividends. It is classified as a ‘rhino’, which means that it has achieved moderate revenue or earnings growth. Investors who are looking for a stable and reliable long-term investment that offers a moderate return may be interested in Intercontinental Hotels. This company is particularly attractive to those who are comfortable with taking a slightly higher risk, as it may offer a higher return on their investments than more conservative options. Furthermore, investors who are comfortable with taking a longer-term view may be interested in Intercontinental Hotels due to its strong financials and moderate earnings growth potential. Overall, Intercontinental Hotels presents an interesting investment opportunity for those looking for a reliable long-term investment with some potential for higher returns. The company’s fundamentals reflect its long-term potential and provide investors with an insight into their future performance. More…
VI Peers
In the hotel industry, competition is intense between InterContinental Hotels Group PLC and its main competitors Melia Hotels International SA, Accor SA, and Hyatt Hotels Corp. All four companies are striving to attract the most guests and provide the best experience possible. Each company has its own strengths and weaknesses, but ultimately it is the guests who will decide which hotel they prefer.
– Melia Hotels International SA ($LTS:0MKO)
Melia Hotels International SA is a Spanish hotel chain founded in 1956. The company operates more than 350 hotels in 40 countries across the world. Melia Hotels International SA has a market cap of 973.68M as of 2022, a Return on Equity of 4.97%. The company’s main business activity is operating hotels and resorts.
– Accor SA ($OTCPK:ACCYY)
Accor SA is a French multinational hospitality company that owns, operates, and franchises hotels, resorts, and vacation properties. The company was founded in 1967 and is headquartered in Paris, France. Accor SA has a market cap of 5.84B as of 2022 and a Return on Equity of 0.34%. The company operates over 4,000 hotels and resorts across 100 countries and employs over 180,000 people. Accor SA’s brands include Pullman, Novotel, Mercure, ibis, and Adagio. The company also owns and operates the Le Club Accorhotels loyalty program.
– Hyatt Hotels Corp ($NYSE:H)
Hyatt Hotels Corp is a global hospitality company with a portfolio of 12 brands. The company’s market cap is 9.45B as of 2022 and its ROE is 9.73%. Hyatt brands include: Park Hyatt, Andaz, Grand Hyatt, Hyatt Regency, Hyatt Place, Hyatt House, Hyatt Zilara, Hyatt Ziva, The Unbound Collection by Hyatt, Hyatt Centric, Hyatt Residence Club and World of Hyatt. Hyatt Hotels Corp was founded in 1957 and is headquartered in Chicago, Illinois.
Summary
Investing in InterContinental Hotels Group PLC (IHG) can be a great way to diversify a portfolio and gain exposure to the growing hospitality industry. The company offers numerous hotel brands, ranging from luxury to budget-friendly, giving investors a wide variety of options to choose from. The company has seen strong growth in recent years, due in large part to the increasing demand for travel and accommodations. IHG has also been active in pursuing strategic acquisitions and partnerships that have helped to drive further growth. The company has a strong financial position, with consistent profits and a healthy balance sheet. In terms of investing in IHG, there are several options available. Investors can purchase shares of IHG directly on the stock market, or through mutual funds and exchange-traded funds (ETFs). IHG also offers several dividend-paying stocks that pay shareholders quarterly dividends. With the hospitality industry continuing to grow, investing in IHG can be a great way to diversify a portfolio. The company’s strong financial position, wide variety of hotel brands, and continued growth make it an attractive investment for many investors.
Additionally, IHG has seen positive media coverage at the time of writing, which could further increase investor confidence in the company.
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