Bank of America sees shares of InterContinental Hotels Group rising as the World Cup kicks off a recovery in U.S. travel next year. The bank reiterated its buy rating on the hospitality stock. The bank also lifted its price target to $156 from $137 on U.S.-listed shares, signaling 11% upside. Analyst Kate Xiao believes that next year, the World Cup alone could bring an uplift of between 50 to 200 basis points to the company’s revenue per available room, or RevPAR. IHG YTD mountain IHG YTD chart “The U.S. was the weak spot of the key global regions in 2025, finishing at around -1% RevPAR growth,” she added. “While recent weak trading should continue in 1Q26, comps will then get easier into 2Q, and the FIFA World Cup + America250 events should provide a boost to 2/3Q RevPAR.” The outlook for another major region, the Greater China market, is improving as well. She added that the company’s portfolio in the region is considered more premium than that of the local companies, and it has been recording a RevPAR growth premium versus competitors such as Hilton. Xiao also sees the company’s net unit growth, or NUG, accelerating to 4.8% from 4.4% in the third quarter of 2025. “IHG’s brand power is strengthening, with a larger loyalty program, more complete brand portfolio, [like for like] RevPAR premium, and accelerating NUG. We think large hotel groups like IHG stand to benefit in the Hotels vs. [online travel agency] Gen-AI battle, which helps to accelerate long-term NUG,” she said. Xiao believes that InterContinental Hotels’ business model has more monetization to offer, and sees more long-term upside potential from its non-RevPAR fees. This is due to upside potential in both the company’s credit card licensing fees and its branded residence fees, she wrote. The analyst added that the company’s strong balance sheet and free cash flow can support its rolling buybacks. InterContinental Hotels is up 13% in 2025.
