InterContinental Hotels Earnings: Demand Still Traveling Higher, While Economic Pressures Lurk

We plan to increase our $73 fair value estimate for InterContinental Hotels Group by around $1 per share as we lift our 2023 forecast for revenue per available room to around 16% from 13% to account for stronger second-half sales. But while we have been steadfast on travel demand resiliency since the summer of 2020, we expect InterContinental's revPAR growth to decelerate to about 2% in 2024, driven by mounting headwinds of lasting inflation and depleted consumer savings. With the shares trading near our planned upward revision, we believe investors can wait for a more attractive entry point.