Should I buy Intercontinental Hotels stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Intercontinental Hotels for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Intercontinental Hotels.

What is Intercontinental Hotels?

The Intercontinental Hotels stock price

The price of Intercontinental Hotels stock is rising this week. The current share price stands at 8,470p on the London Stock Exchange, with a 24-hour increase of +0.54% and a weekly gain of +2.35%. Market capitalisation is £14.14 billion, with an average daily volume of 272,250 shares over the past three months. The P/E Ratio is 30.56, while the dividend yield is currently 1.53%. With a stock beta of 0.89, Intercontinental Hotels demonstrates moderate volatility, offering a balanced mix of steady returns and growth potential for UK investors.

Our full analysis of the Intercontinental Hotels stock

Having reviewed Intercontinental Hotels' latest financial results and assessed the stock’s trajectory over the past three years, we have leveraged a blend of proprietary algorithms that synthesise key financial indicators, technical signals, real-time market data, and competitor insights. This sophisticated analysis reveals evolving dynamics and forward-looking drivers within the hospitality and lodging sector. So, why might Intercontinental Hotels stock once again become a strategic entry point into the global travel and hospitality markets in 2025?

Recent performance and market context

Intercontinental Hotels’ share price on the London Stock Exchange stands at 8,470p, marking a 2.35% rise over the past week and delivering a strong 13.15% gain year-on-year. This advance is especially notable given the more modest recovery of the global indices and the cyclical nature of the hospitality sector. The company’s robust first-quarter results — including a resilient global RevPAR (Revenue per Available Room) increase of 3.3% and a pronounced 9.4% year-over-year pipeline expansion — have fostered a renewed sense of market confidence. Recent catalysts include the strategic Ruby brand acquisition, an assertive $900m share buyback (36% completed by mid-2025), and a record volume of new hotel signings and room openings, underpinning expectations for ongoing expansion. Furthermore, the macroeconomic context remains supportive: the travel industry's continued post-pandemic normalisation, expanding international mobility, and strong consumer appetite for leisure and premium experiences have proved highly favourable for large-scale, asset-light operators such as Intercontinental Hotels.

Technical analysis

A close examination of technical indicators suggests that Intercontinental Hotels may be entering a new bullish phase. The share price currently sits comfortably above key moving averages: the 5-day, 20-day, 50-day, and 100-day averages all signal upward momentum (at $114.48, $114.57, $113.95, and $115.58, respectively). The RSI stands at 53.4, implying neutral yet upside-friendly positioning, while the Williams %R (-26.9) and an ADX of 11.69 both reinforce a “buy” consensus for the near term. Most importantly, technical support remains firm between $113.05 and $114.09, suggesting robust underlying demand, while immediate resistances between $115.13 and $116.17 may serve as the next stepping-stones to further advances. The preponderance of bullish signals (with 11 out of 12 moving averages flashing “buy”) underlines favourable momentum — an ideal set-up for investors seeking technical confirmation before committing capital.

Fundamental analysis

On the fundamentals, Intercontinental Hotels’ growth story appears impressively intact. Full-year 2024 revenues hit $4.92bn, underpinned by an exceptional global brand portfolio and resilient post-pandemic demand. Notably, EBIT reached $1.124bn — a double-digit YOY advance — while net income of $628m and healthy margins cement robust profitability. The company’s P/E of 30.56 is justified by mid-teens earnings expansion and a PEG ratio of just 1.15, reflecting attractive value for a defensive sector leader. The asset-light, fee-based business model ensures scalable returns, resilient cash generation ($598m levered free cash flow TTM), and reduced capital intensity. Five-year dividend growth averages 10% per annum, complemented by a secure 1.53% yield (LSE) — especially attractive in today’s rates environment. Structural advantages include leading global market share (6,668 hotels, 987,000 rooms), exceptional brand equity (Holiday Inn, Crowne Plaza, and more), and an empowered loyalty programme spanning 145m+ members. The recent pipeline growth to 334,000 rooms (a 9.4% increase year-on-year), and an ongoing focus on premium and lifestyle segments (with the Ruby brand and Novum Hospitality partnerships), articulate a compelling high-quality growth narrative, rarely matched within the sector.

Volume and liquidity

Liquidity remains a key pillar of Intercontinental Hotels’ ongoing re-rating. Average daily trading volumes of 272,250 shares on the LSE indicate robust investor interest, while healthy market capitalisation (£14.14bn) enables consistent and efficient execution for both institutions and private investors. This deep and active float increases price discovery and narrows bid-ask spreads; it also supports dynamic valuation in upswings, ensuring that bullish moves are more sustained and less vulnerable to sharp reversal. A steady influx of capital during both positive results and strategic announcements highlights growing conviction and underpins the likelihood of price appreciation over the medium term.

Catalysts and positive outlook

• Strategic brand acquisitions: The integration of the Ruby brand and expanded Novum Hospitality partnership boost premium and lifestyle exposure.
• Innovative asset-light model: Continued emphasis on high-fee franchising and management contracts ensures high margins with limited balance sheet risk.
• Record development pipeline: A 9.4% rise in pipeline year-on-year, with 25,800 rooms added in Q1 alone, provides visibility on future growth.
• Shareholder returns: A sizeable share buyback programme ($900m for 2025, already 36% complete) complements strong dividend growth, enhancing capital efficiency.
• Digital transformation: Ongoing digital investments in the IHG One Rewards platform (over 145 million members) deepen customer loyalty and cross-brand revenue synergies.
• Sustainability and ESG leadership: Visible progress and new ESG initiatives align with investor preferences and institutional mandates.
• Defensive sector support: Ongoing strength in business, group, and leisure demand — especially across EMEAA and the Americas — ensures a diversified set of non-correlated revenue drivers.

The above elements combine with positive long-term macro trends in global mobility and experience-driven consumption, amplifying Intercontinental Hotels’ ability to deliver above-sector revenue growth and earnings visibility. Moreover, the company’s strong management, led by CEO Elie Maalouf, demonstrates rigorous capital allocation and strategic proactivity, essential for continued outperformance.

Investment strategies

• Short-term: The stock’s current technical support zones and bullish momentum present ideal entry points for tactical traders seeking exposure to upcoming catalysts, such as Q2/H2 corporate updates or further M&A activity.
• Medium-term: As development pipeline progress and high-profile integrations continue apace, investors can capture ongoing re-rating potential, especially ahead of key financial reporting dates or dividend announcements.
• Long-term: With its global leadership, asset-light economics, progressive dividend policy, and innovative digital initiatives, Intercontinental Hotels offers a rare combination of growth and resilience. The stock seems well-positioned to benefit from structural travel tailwinds and a global shift toward corporate and premium leisure lodging.
• In all cases, the stock’s moderate beta (0.89) enhances its suitability as a portfolio core holding that will likely outperform in bullish markets yet offer defensiveness in volatility.

Is it the right time to buy Intercontinental Hotels?

Intercontinental Hotels stock may be entering a new bullish phase, supported by impressive financial results, growing technical momentum, and a robust pipeline of positive catalysts. Key strengths such as a powerful brand portfolio, diligent capital returns, outstanding operational leverage, and global market leadership create sustained upside potential. With clear evidence of persistent demand recovery, strong liquidity, and widespread analyst optimism, the fundamentals justify renewed interest at current levels. For those seeking an internationally diversified, growth-oriented exposure to the travel and hospitality sector, Intercontinental Hotels seems to represent an excellent opportunity for accumulation in 2025 and beyond.

In sum, Intercontinental Hotels could again stand at the threshold of a new expansion cycle, offering investors an attractive balance of quality, momentum, and forward visibility — a combination that deserves close and proactive attention in today’s market environment.

How to buy Intercontinental Hotels stock in the UK?

Buying Intercontinental Hotels stock online is simple and secure, especially through a regulated broker. You can choose between two main approaches: buying actual shares (spot buying) or trading Contracts for Difference (CFDs), which enable you to speculate on price movements with leverage. Each method has its pros and unique fees to consider. For details on broker fees and service quality, you’ll find a broker comparison further down the page.

Spot buying

A cash purchase means buying real Intercontinental Hotels shares on the stock exchange, making you a direct shareholder. Brokers usually charge a fixed commission per order, often around £5-£10 for UK accounts.

Gain scenario

For example: If the Intercontinental Hotels share price is $118, you can buy around 8 shares with a $1,000 stake, including a brokerage fee of around $5.

If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on the rise or fall of Intercontinental Hotels share prices without owning them. You pay a spread (the difference between buy and sell price) and possibly overnight financing costs if you hold positions long term.

Example of a gain scenario with CFD

Example: You open a CFD position on Intercontinental Hotels shares, with 5x leverage and a $1,000 deposit.

This gives you a market exposure of $5,000.

✔️ Gain scenario:

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before investing, be sure to compare the fees and conditions offered by each broker using the comparison tool lower on the page. Whether you choose to buy shares outright or trade via CFDs depends on your investment goals, risk tolerance, and preferred strategy.

Our 7 tips for buying Intercontinental Hotels stock

The latest news about Intercontinental Hotels

Intercontinental Hotels stock rose 2.35% over the past week, outperforming the FTSE 100 index. This momentum is fuelled by renewed optimism in the UK hospitality sector, as domestic travel demand strengthens and the company continues to expand its brand presence and hotel openings, particularly in London and major regional cities.

Intercontinental Hotels completed a further $96 million in share buybacks under its ongoing $900 million programme. This capital return, with 36% of the plan executed, signals confidence in the company’s balance sheet and provides additional value for UK-based shareholders through increased earnings per share.

The company has significantly expanded its luxury and lifestyle portfolio in Europe, focusing on the UK market. The acquisition of the German Ruby Hotels brand and additional property conversions enhance its premium footprint in the UK, supporting higher average daily rates and brand value for local investors.

Recent analyst consensus continues to reflect upside potential for Intercontinental Hotels shares on the LSE. The average analyst target price stands at 8,807p, with positive sentiment supported by ongoing strong revenue per available room (RevPAR) growth and profitability across the UK.

Intercontinental Hotels’ asset-light business model and robust dividend make it a resilient British investment. Listing on the London Stock Exchange, with a 1.53% dividend yield and ISA/SIPP eligibility, the stock remains an attractive option for UK investors seeking long-term growth and income.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.