InterContinental Sales Growth Continues Across Key Regions as Economic Concerns Loom

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 115 million members as of June 30, 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 near 4% over the next decade, above the 1%-2% supply increase we estimate for the U.S. industry.