InterContinental: Bernstein Trims Price Target but Maintains Outperform Call

Bernstein lowered its price target on InterContinental Hotels Group (LON:IHG) to 8,970p from 8,990p while reiterating an Outperform rating on the stock in a note to clients this week.

The firm cited weaker-than-expected U.S. revenue per available room (RevPAR) in 2025 but maintained confidence in the group’s long-term prospects.

Analyst Richard Clarke said that U.S. RevPAR, the most influential metric for global hotel operators, has underwhelmed this year, weighing on sector sentiment.

He noted that U.S. RevPAR has disappointed in 2025, adding that the trend is particularly significant given its outsized impact on investor perceptions of lodging stocks.

Despite the near-term softness, the firm stressed that the long-term investment case for the sector remains intact.

IHG shares are down around 5.6% this year. However, the stock has risen over 6% in the last three months.

Bernstein's note follows a series of mixed analyst views on IHG in recent months. In August, Jefferies lifted its target to 8,700p from 8,400p but stuck with a Hold rating, pointing to resilient second-quarter results yet limited upside due to ongoing U.S. headwinds.

Around the same time, Bank of America cut its target slightly to 10,300p from 10,400p, but kept a Buy rating, highlighting management’s optimism on signings growth, loyalty contributions, and opportunities to convert independent hotels.

The bank stated at the time that CEO Elie Malouf and CFO Michael Glover had “sounded confident” at a management meeting which followed the company's first half results.

They are said to have highlighted growth in signings, a rising loyalty contribution, and said they see a “large addressable market for conversions from independents and other brands.”