Intercontinental Hotels Share Discussion Threads

[togglebrush] 10/8/2010 09:29

Digital Look on Interims

Half-year results from InterContinental Hotels underpin that the hotel trade is showing signs of recovering from the effects of the recession, and not just at the budget end of the market.

The Holiday Inn owner reported a better than expected 22% rise in operating profit to $219m in the six months ended 30 June. Broker Charles Stanley expected to see earnings of $210m.

The interim dividend is up 5% to 12.8 cents, equivalent to 8.0 pence.

However the shares have slipped back in early trading today and this week and are starting to look vulnerable to a correction lower after the impressive gains of the past 18 months.


The recovery off the twin lows last year around 433p culminated in a peak early this year at 1,244p.

The price is currently testing trend line support from the 2009 lows and this comes in around the 1,076p on a weekly close. A weekly close below 1,076p would be the first sign that the recent upward momentum is waning.

A further break below the June lows around 1,017p could then be the precursor to further losses.

Broker sentiment is firmly mixed with eleven "buy" recommendations and six "sell" recommendations.

[togglebrush] 27/7/2010 13:40

Extract
The billionaire Barclay brothers sold their 10 percent stake in the U.K.'s InterContinental Hotels Group Plc for about 335 million pounds ($520 million) after the hotelier's shares rose 88 percent in a year.

InterContinental fell as much as 8.4 percent in London trading after Barclays Capital sold almost 30 million shares on behalf of Ellerman Corp., a company controlled by David and Frederick Barclay, for 1,120 pence apiece, according to three people familiar with the transaction.

[lurgy] 27/7/2010 13:34

I don't know anything about this sort of thing, but if the share price immediately fell to below the placing price, then perhaps they will have to reduce the placing price?

[lurgy] 27/7/2010 09:53

Anyone know why the 7% fall today?

[lurgy] 23/7/2010 10:24

"IHG makes most of its profits from managing hotels for third parties or licensing its name to franchisees. It has sold most of its freehold sites over the past 10 years. This has cushioned it from the worst of the recession.

"But even so, this is a very cyclical industry. With credit availability tight, I suspect many of its leveraged investors will find it hard to refinance their debts, which could put the groups management contracts at risk.

"Even assuming a sustained recovery, it's still hard to justify the p/e ratio of 20."

[tarvold] 19/7/2010 07:15

Just a quick question on IHG.
Does anyone know whether they manage hotel resorts as well as owning them?
ie does the 'Intercontinental' brand cover resorts that aren't actually owned by the group but is managed by them.

[lurgy] 13/7/2010 14:47

Anyone looking for a short could consider IHG now 1150p.

Money Week's turkey of the week 2nd July. "Even assuming a sustained recovery, it's still hard to justify the p/e ratio of 20." They reckon 780p.

[lionheart79] 23/4/2010 10:30

yes indeed, I got this one well and truly wrong, as did Investors Chronicle!

[tpaulbeaumont] 07/4/2010 13:01

not really lionheart; its done very well lately

[lionheart79] 03/3/2010 13:47

Just my luck, I get stopped out at the intraday high of 985p only to see it crash down from there. Frickin typical.

The perils of stop losses.

[miata] 02/3/2010 18:36

Pounded Pound will push it further.
High today 984p.

"InterContinental Hotels Group Plc led gains among companies with U.S. sales as the pound weakened against the dollar for a sixth straight day."

[lionheart79] 01/3/2010 17:23

looks like I went short too soon (from 918p). The uptrend has not broken. I wonder if we will see a sustained push over 950p. I must admit I would be surprised to see it rally much further, on a P/E of 22.

Thoughts to the contrary?

[togglebrush] 16/2/2010 09:29

RNS FY extract

Business headlines

Global constant currency RevPAR decline of 14.7%, with a fourth quarter decline of 10.9%.
26,828 net rooms (252 hotels) added taking system size to 646,679 rooms (4,438 hotels), up 4% year on year.
55,345 rooms (439 hotels) added to the system, 28,517 rooms (187 hotels) removed.
52,891 rooms (345 hotels) signed, taking the pipeline to 210,363 rooms (1,438 hotels).
Total gross revenue4 from all hotels in IHG's system $16.8bn (2008 $19.1bn)
EPS benefited from effective tax rate of 5% (2008: 23%) due to the release of certain prior year tax contingencies, primarily as a result of the final resolution of various tax audits
Final dividend maintained at 29.2¢, equivalent to 18.7p. Total dividend of 41.4¢, flat on 2008.
Exceptional operating charges of $373m include: (i) $197m of non-cash asset impairments; and (ii) $91m charge related to a management contract in the US.

[miata] 28/9/2009 09:15

InterContinental Hotels is at least now reporting a tentative pick-up in corporate bookings. But the climb back to peak profitability looks daunting.

Green Street Advisors does not expect the higher-end US hotels to match 2007 earnings until 2013 at the earliest. Consider, too, that in 2007 hotels' net operating income was still below the previous peak of 2000, suggesting a long-run deterioration in earnings power.

With hotel stocks' premium to net asset value outstripping other property types, valuations are underpinned by the prospect of an economic recovery whose strength remains uncertain.

[lionheart79] 07/9/2009 10:58

surprised by the lack of talk on this stock. IC had it as a sell recently. One must wonder if it has risen too fast. I might put a short on in due course, but the trend still seems to be up...

[dancing piranha] 08/7/2009 13:13

Indeed!

I keep an eye on this, but have no current position...

Looks like it's climbing back up today.

[nickjoseph] 08/7/2009 10:20

Good fall today, now the graph looks even better for a long term fall. I must be going mad talking to myself. Is anyone out there.

[nickjoseph] 06/7/2009 10:00

Anyone know why the strength of these shares today, they were up in a falling market, but are now starting to come off. Still short and this is a long wait for any profit to appear

[nickjoseph] 22/6/2009 10:29

The long term graph does look good for shorters. Still short on this one, cannot see it picking up with bookds down globally. Just a small fall today of 20p will continue the rot in this one and should then fall another pound at least..

[hectorp] 22/5/2009 05:35

Went short yesterday.

[hectorp] 20/5/2009 13:38

More a short than a long play here.

No position meself.

[pennypunter] 13/5/2009 19:51

the main problem is no-one wants to buy hotel stocks, sector is as sick as a pig.