Bank of America predicts this hotel stock will thrive due to the World Cup.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 16 2025
0mins
Should l Buy IHG?
Source: CNBC
Bank of America Outlook: Bank of America has a positive outlook on InterContinental Hotels Group (IHG), raising its price target to $156 and maintaining a buy rating, anticipating an 11% upside due to the World Cup boosting U.S. travel recovery next year.
Revenue Growth Projections: Analyst Kate Xiao estimates that the World Cup could increase IHG's revenue per available room (RevPAR) by 50 to 200 basis points, with expectations of improved performance in the Greater China market as well.
Strengthening Brand and Market Position: IHG's brand power is growing, supported by a larger loyalty program and a more comprehensive brand portfolio, which positions it favorably against competitors like Hilton.
Long-term Financial Potential: The company is expected to benefit from increased monetization opportunities through non-RevPAR fees, alongside a strong balance sheet that supports ongoing buybacks, contributing to a 13% increase in stock value in 2025.
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Analyst Views on IHG
Wall Street analysts forecast IHG stock price to fall
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 145.870
Low
135.00
Averages
135.00
High
135.00
Current: 145.870
Low
135.00
Averages
135.00
High
135.00
About IHG
InterContinental Hotels Group PLC is a United Kingdom-based global hospitality company. The Company has a diverse portfolio of differentiated brands. With 20 hotel brands and IHG One Rewards, which is a hotel loyalty program, the Company has approximately 6,600 open hotels in more than 100 countries, and a development pipeline of over 2,200 properties. The Company’s brands include Six Senses Hotels Resorts Spas, Regent Hotels & Resorts, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotels & Restaurants, Hotel Indigo, voco hotels, HUALUXE Hotels & Resorts, Crowne Plaza Hotels & Resorts, EVEN Hotels, Holiday Inn Express, Holiday Inn Hotels & Resorts, Garner hotels, avid hotels, Atwell Suites, Staybridge Suites, Holiday Inn Club Vacations, Candlewood Suites, Iberostar Beachfront Resorts, and Ruby. Ruby brand operates approximately 20 hotels (3,483 rooms) in cities across Europe and has another 10 pipeline hotels (2,235 rooms).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Recovery: InterContinental Hotels Group has rapidly bounced back from the 2020 pandemic crisis, planning to open over 1,400 hotels across more than 200 cities in Greater China, demonstrating its strong expansion intent in fast-growing markets.
- Technological Innovation: The company appointed Wei Manfredi as its AI executive, aiming to optimize IT architecture and enhance operational efficiency through AI technology, thereby improving customer experience and driving repeat business.
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- Expansion in China: With over 1,400 hotels in Greater China and plans for further openings across more than 200 cities, InterContinental aims to capitalize on the travel demands of a young consumer class, thereby enhancing its market share in a key growth region.
- Technological Innovation: The appointment of Wei Manfredi as AI executive is set to drive the company's AI strategy, optimizing IT architecture and operational efficiency, with expectations that AI applications will improve customer experiences and increase repeat business.
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- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
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- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
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- Sales Decline Challenge: With three consecutive years of declining sales, the board seems to believe a transformation is necessary to improve the company's image, yet investors are worried this may signal a poor self-image and could affect future market confidence.
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- Market Recovery: InterContinental Hotels Group has rapidly bounced back from the 2020 pandemic crisis, planning to open over 1,400 hotels across more than 200 cities in Greater China, demonstrating its strong expansion intent in fast-growing markets.
- Technological Innovation: The company appointed Wei Manfredi as its AI executive, aiming to optimize IT architecture and enhance operational efficiency through AI technology, thereby improving customer experience and driving repeat business.
- Brand Strategy: InterContinental is focused on expanding the global presence of its Holiday Inn brand, particularly in the Chinese market, with plans to broaden its footprint beyond tier-1 cities to meet the diverse needs of younger consumers.
- Competitive Advantage: New regional chief development officer Mark Sergot will drive the development of more luxury and premium properties, helping InterContinental enhance its market position against Marriott and Hilton, thereby increasing its appeal in the Americas market.
See More
InterContinental Hotels' Recovery and Expansion Strategy
- Market Recovery: InterContinental Hotels has rebounded sharply post-COVID-19, demonstrating market adaptability and brand resilience despite strong growth from competitors like Marriott and Hilton, indicating a positive outlook for future performance.
- Expansion in China: With over 1,400 hotels in Greater China and plans for further openings across more than 200 cities, InterContinental aims to capitalize on the travel demands of a young consumer class, thereby enhancing its market share in a key growth region.
- Technological Innovation: The appointment of Wei Manfredi as AI executive is set to drive the company's AI strategy, optimizing IT architecture and operational efficiency, with expectations that AI applications will improve customer experiences and increase repeat business.
- Luxury Market Focus: The new regional chief development officer, Mark Sergot, will prioritize luxury and premium properties, aiming to enhance InterContinental's competitiveness in the Americas market against established players like Marriott and Hilton, which could lead to improved market positioning.
See More
