Will InterContinental Investors Want To Stay Following Results?
Spreadex | Feb 19, 2018 11:11
Despite a rocky period over August and September, 2017 was a very strong year for InterContinental Hotels. Starting at £37.13, the stock closed out December at £47.40, marking a near 28% increase over 12 months.
Initially 2018 saw the company – which includes the likes of Crowne Plaza, Holiday Inn and Hotel Indigo – continue this fantastic run, quickly climbing to an all-time high of £49.93 a few weeks into January. Yet the market-wide correction soon pulled the stock from these levels, taking it to a 2 month-ish low of £45.10 in early February. It has recovered somewhat since then, with InterContinental Hotels Group PLC (LON:IHG) now sitting at a current trading price of £46.74.
The firm’s most recent update came in October, when it released its Q3 results. There InterContinental revealed average revenue per available room jumped 2.3%, as those European destinations previously impacted by the effects of terror attacks saw tourist start to return. This saw the region post a 7.1% rise in average, compared to a paltry 0.8% increase in the US, with the latter’s sluggish growth in part due to Hurricanes Harvey and Irma.
Asia, the Middle East and Africa was also disappointing, with a mere 0.6% jump in RevPAR, though this was countered by a muscular 7.8% jump in Greater China (a region that admittedly benefited from weak comparables).
In terms of Tuesday’s annual figures, analysts are expecting InterContinental Hotels to post a 4.8% increase in group revenue to $1.8 billion, alongside an 18% surge in earnings to $2.39 per share.
InterContinental Hotels Group PLC has a consensus rating of ‘Hold’ alongside an average target price of £43.06.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
Get The App
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.