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InterContinental Hotels Group PLC (LON:IHG), currently valued at $20.47 billion, announced today that it has launched a share buyback program with plans to purchase up to $900 million worth of its ordinary shares. According to InvestingPro analysis, the stock is trading above its Fair Value, with strong financial health metrics earning a "GREAT" overall score. The move is in line with the company’s strategy to return surplus capital to its shareholders.
The buyback program will involve the acquisition of ordinary shares of 20340/399 pence each and is set to commence immediately, with a completion deadline of no later than December 29, 2025. The company has engaged Merrill Lynch International (MLI) to execute the buyback on its behalf, with MLI acting independently from the company in terms of the timing of the purchases. With last twelve months revenue of $3.824 billion and EBITDA of $1.013 billion, the company demonstrates solid operational performance.
The shares acquired under this program will be purchased on the London Stock Exchange (LON:LSEG), Cboe Europe Limited through the BXE and CXE order books, Turquoise, and/or Aquis. Once bought, these shares will be on-sold to InterContinental Hotels Group and subsequently cancelled, with the intention of reducing the issued share capital of the company.
This buyback initiative is authorized under the general authority granted by the company’s shareholders at the Annual General Meeting on May 3, 2024, and any further authority that may be provided. The maximum number of shares authorized for purchase under this current mandate is 11,209,672, considering previous acquisitions made before February 18, 2025.
The transactions will adhere to the limitations prescribed by the company’s authority to repurchase shares and will comply with the relevant UK and EU regulations, including the Market Abuse Regulation and the Financial Conduct Authority’s Listing Rules.
Further announcements regarding the progress of the share buyback program will be made to shareholders as necessary.
IHG Hotels & Resorts, a global hospitality company, operates over 6,600 hotels across more than 100 countries and has a development pipeline of over 2,200 properties. The company’s portfolio includes a wide range of hotel brands catering to various market segments.
This information is based on a press release statement.
In other recent news, InterContinental Hotels Group (IHG) has seen significant developments. Bernstein analysts at SocGen Group upgraded IHG’s stock rating from Underperform to Market Perform, accompanied by a new price target of GBP90.00. This upgrade was influenced by a combination of factors, including a recent decline in IHG’s stock price and positive adjustments to earnings following a credit card agreement. The analysts also anticipate modestly higher growth and improved margin prospects for IHG.
In other developments, IHG announced the signing of new co-brand credit card agreements in the United States with JPMorgan Chase (NYSE:JPM) Bank, extending their partnership through 2036. These agreements are expected to significantly enhance IHG’s ancillary revenue streams and bolster the IHG One Rewards program by driving membership and loyalty. Projections show a doubling of the $39 million recognized in operating profit from reportable segments in 2023 to 2025, and more than a tripling by 2028.
Finally, IHG expects to receive upfront cash inflows totaling $137 million pre-tax over the coming months. The company’s co-brand credit card holders have shown even greater engagement, with record levels of new card accounts and double-digit growth in card spend in 2023, continuing into 2024. These recent developments highlight IHG’s commitment to growth and value creation.
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