Intercontinental Hotels Share Discussion Threads

[bricktycoon] 07/5/2020 06:54

Zero value for shareholders here. With zero assets and massive debts this is bust.300000 rooms empty huge cash burn. Second wave of covid 19 which is coming will bankrupt ihg sell on open while u still can. This will crash below 20 pounds today on horror results timber

[philanderer] 06/5/2020 23:29

Oh nooooooooooooooooooooooooooooooooooooooooooooooo TW. CINE now IHG :-)

Trading update thursday

[bricktycoon] 06/5/2020 20:39

This will be carnage tomorrow with covid 19 eventually bankrupting igh. Massive gap down on open sell while u still can. Institutions want out on horror results. 300000 rooms empty sub £20 in the morning sell sell sell this is bust.

[philanderer] 27/4/2020 13:41

InterContinental Hotels rose after saying it has secured new financing arrangements taking its total available liquidity to $2bn.The company added that it expected first quarter global RevPAR fell by 55% in March, for a first quarter fall of 25% - in line with a forecast given last month.

ADVFN

[ilostthelot] 17/4/2020 14:35

Ticking up again towards £40. I am also looking to short them around that price.

[frazboy] 06/4/2020 18:19

Ok, let us know if you find the answer

[wongsta] 06/4/2020 17:37

cannot be true. there is many other volatile shares on lower margins.

[frazboy] 06/4/2020 17:31

Due to the increased volatility would be a better answer

[frazboy] 06/4/2020 17:30

Volatility?

[wongsta] 06/4/2020 16:41

why has IG margin factor now 50%

[lingy] 01/4/2020 12:30

Recon this may get to 40 and if it does I’m short again.If China is back up and running there could be a secondary wave on the horizon,but hopefully not.

[the white house] 31/3/2020 17:51

China is back up and running, restaurants 90 per cent full and x country movement allowed. Cash starting to flow back inThings can only get better

[bozzy_s] 31/3/2020 17:25

How are these valued at £6.4 billion, with less than zero net assets - and even that includes a ton of intangibles. Net tangible assets -$2.8 billion. Surely they're worth less than zero?

Are some of the properties included at cost price from the 19th Century? Hence some 'hidden' assets in the $0.3bn of property/plant/equipment?

[frazboy] 26/3/2020 11:40

i don't think they'll go bust for one second, they could if necessary raise cash through equity but it's doubtful they'll need to do that even, as no bonds are due for repayment until 2022 (£400m I think) and the RCF has more than $1bn of headroom. So, the only threat is, if they don't meet their covenants (see the last RNS) on the RCF:

"The RCF has customary covenants in respect of interest cover and leverage ratio, tested at half year and full year on a trailing twelve month basis, the former requiring a ratio of EBITDA to net interest payable above 3.5:1 and the latter a ratio of Net Debt:EBITDA of below 3.5:1 on a "frozen GAAP" basis pre-IFRS 16. 2019 Net Debt:EBITDA ratio on that basis was 2.4x (with the IFRS 16 adjustment reducing EBITDA and Net Debt by approximately $70m and $440m respectively)."

As EBITDA will be... no more than $500m (?) and probably a lot less they will breach the latter covenant. Worst case scenario they lose the RCF and have to raise some cash?

I've assumed they have around a 50% revenue reduction this financial year, and, maybe 90% of expected booking thereafter (I just don't see us going back to the same level of economic activity regardless of how optimistic the believers in the 'V' shaped recovery are). The shares are no bargain but bust they are not.

[lingy] 24/3/2020 15:06

Looks like I may get the bounce I was waiting for to short,strange the stock market,everywhere on lockdown and shares start to bounce,however the damage to the economy is real and numerous people I know have lost their jobs,the last thing on peoples minds are holidays,this will be lucky to survive imo.

[philanderer] 23/3/2020 00:38

Hotel beds have been offered to rough sleepers in London to help protect them against coronavirus.

About 300 rooms were made available this weekend to vulnerable people already known to homelessness charities as part of an initial trial.

London Mayor Sadiq Khan's office is working with Intercontinental Hotels Group (IHG) to block-book rooms at a discounted rate for the next 12 weeks.

[lingy] 19/3/2020 17:31

Agreed ,but I was expecting a bounce,may try to get in again if it does.with the amount of debt this has and hotels almost empty this is a very risky business.

[goliard] 19/3/2020 12:04

I think you should have run your short longer lingy. The drop is bad, but could get a lot worse. Without a massive quarantine or a bailout it could drop much further.

[lingy] 16/3/2020 09:25

Hit my target,may bounce here ,will look to short again higher up.

[stockport loser] 13/3/2020 06:51

it will go lower, they do not manage most of the hotels, their income is mainly driven from taking 10% of rooms revenue from franchise hotels. That is going to be at least 30% down Q2 and probably Q3, there will be many hotel owners who default. I know that a number of management companies are considering closing entire hotels. They are big in China and US plus Europe.

[lingy] 11/3/2020 12:44

Well I’m shorting this ,got a feeling it’s going to 3000 or lower.

[philanderer] 11/3/2020 09:04

RBC Capital Markets upgrades to 'Sector Performer' tp 4500p