Bank of America believes InterContinental Hotels Group’s stock price will rise as the World Cup sparks a recovery in U.S. travel next year. The bank reiterated its buy rating on the hospitality stock. The bank also raised its price target for the U.S.-listed stock to $156 from $137, suggesting 11% upside. Analyst Kate Hsiao believes the World Cup alone could boost the company’s revenue per available room (RevPAR) by 50 to 200 basis points next year. IHG YTD Mountain IHG YTD Charts “The US was the weak link among the world’s major regions in 2025, finishing with RevPAR growth of around -1%,” she added. “Recent weak trading will continue in the first quarter of 2026, but comps will ease into the second quarter, with the FIFA World Cup and America 250 events boosting RevPAR in the second/third quarter.”The outlook for the Greater China market, another key region, is improving as well. He added that the company’s portfolio in the region is considered to be more premium than that of local companies and has recorded a RevPAR growth premium compared to competitors such as Hilton. Xiao also expects the company’s net unit growth (NUG) to accelerate from 4.4% to 4.8% in the third quarter of 2025. “IHG’s brand strength is strengthened with a larger loyalty program, a more complete brand portfolio, (similar) RevPAR Premium, and an acceleration of NUG. In the hotel vs. (online travel agency) Gen-AI battle, we believe large hotel groups like IHG stand to benefit and this will lead to acceleration in the long-term NUG,” she said. Mr. Xiao believes that InterContinental Hotels’ business model has more monetization potential and long-term upside potential from non-RevPAR rates. This is due to potential increases in both the company’s credit card license fees and brand residency fees, she wrote. The analyst added that the company’s strong balance sheet and free cash flow could support a phased share buyback. InterContinental Hotels is up 13% in 2025.
