A City broker has restated its bullish view on InterContinental Hotels Group (LON:IHG) in the wake of the firm’s interim results.
In the note, it reiterated its ‘buy’ call on the stock in the hotelier, while nudging up its price target to 5,650p from 5,600p. Early afternoon, the stock was trading sideways at 4,552p.
Last week IHG said it had returned to profit in the first half as travel demand picked up and occupancy and room rates continued to improve in the second half.
Revenue per available room (RevPAR) in the first six months of the year was down 42.6% versus pre-pandemic 2019, with the second quarter of this year outperforming the first quarter.
Occupancy and room rates continued to improve and almost 50% of the group’s hotels achieved RevPAR above 2019 levels in July, it said.
It moved to a pretax profit of US$67mln from a loss of US$275mln in the first six months of 2020.