InterContinental's China, Group, and Business Demand Improving, as U.S. Leisure Trips Endure

We think InterContinental will retain its brand intangible asset (a source of its narrow moat rating) and expand room share in the hotel industry in the next decade. Renovated and newer brands focused on an attractive next-generation traveler position as well as a loyalty program of 119 million members as of March 31, 2023, will drive this growth. The company currently has a mid-single-digit percentage share of global hotel rooms and about a 10% share of all industry pipeline rooms. We see its total room growth averaging 3%-4% over the next decade, above the 1.8% supply increase we estimate for the U.S. industry.