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Posted by
Two Blokes Jul 28 -
Filed in
Stock
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InterContinental Hotels Group's asset-light model delivers robust free cash flow, high margins, and strong shareholder yield through dividends and aggressive buybacks. FY 2025 outlook is positive: RevPAR and room growth in Americas and EMEAA drive revenue and cash flow, supporting a projected 6.5% shareholder yield. Current buybacks outpace free cash flow, gradually increasing debt, so high returns may not be sustainable beyond FY 2026 as leverage approaches management's target.