InterContinental Hotel Group (NYSE: IHG) It faced a potentially existential crisis in 2020, when the COVID-19 pandemic triggered global travel restrictions that brought business in the hospitality industry to a near standstill. However, InterContinental has bounced back strongly and pursued an expansion strategy that has largely focused on developing its Holiday Inn brand into a ubiquitous presence around the world.
However, InterContinental is far from the only hotel company pursuing similar aspirations. With rivals from hotel companies such as Marriott International (NASDAQ: MAR) and Hiltons around the world (NYSE: HLT) The industry, which is also looking to capture greater market share in some of the world’s fastest-growing areas, is open to disruption. In this third and final article on InterContinental for the Voyager PortfolioYou’ll learn more about the exact plans InterContinental executives have in store to try to fend off their rivals.
Where to invest $1,000 right now? Our team of analysts has just revealed what they believe are the 10 best stocks to buy right now, by joining Stock Advisor. See the actions »
Image source: Getty Images.
China remains one of the fastest growing regions in the world and InterContinental views the market as key to fueling its overall growth. As InterContinental senior regional executive Daniel Aylmer recently noted, this dynamic market is seeing new ways to travel, and a relatively young class of consumers is exploring various ways to use hotels as part of their travel plans.
InterContinental already has more than a dozen brands in the Greater China region, including more than 1,400 existing or planned hotels in more than 200 cities. The company anticipates more hotel openings in the first half of this year that should showcase the reach of its diverse product line, offering a mix of different cities that will highlight the different types of local traditions travelers seek. InterContinental’s strategy is expanding beyond first-tier cities to develop a broader presence in both mainland China and Taipei.
InterContinental may not seem like a tech stock to most investors, but that doesn’t mean the hotel company isn’t trying new technology. In early January, InterContinental appointed Wei Manfredi as a senior executive in artificial intelligence, tasked with guiding the company’s AI strategy to strengthen its IT architecture and foster partnerships with leading technology companies to ensure continued competitive advantages.
AI has several roles to play at InterContinental, ranging from helping hotel property managers maximize revenue and streamline operations to delivering AI-powered applications that can improve the traveler experience and generate more repeat business. Manfredi’s experience with major consumer-facing companies, including McDonald’s (NYSE: MCD), lululemon (NASDAQ: LULU)and Visa (NYSE: V) He will be a valuable asset in guiding InterContinental’s current aspirations on the technology front.
Perhaps most importantly, InterContinental recognizes that its reputation in the mid-market of its core market of the Americas has room for improvement. The recent appointment of Mark Sergot as regional development director included signs that the new leader will pay more attention to luxury and premium properties, as well as those with suites. That could help InterContinental fill in more effectively with Marriott and Hilton, which already have extensive U.S. portfolios covering all levels of the hotel market.
It’s that room for improvement that makes InterContinental look attractive. Additionally, while the travel sector has recovered nicely over the past five years, it still lags behind the performance it has seen at similar hotel chains. A greater emphasis on growth initiatives could help InterContinental close that gap and generate superior returns for shareholders.
Therefore, expect to see the Voyager Portfolio add InterContinental shares once the relevant mandatory disclosure periods and trading guidelines have passed. I hope to renew my childhood memories of InterContinental hotels for years to come.
Before buying shares of InterContinental Hotels Group Plc, consider the following:
He Varied and Dumb Stock Advisor The analyst team has just identified what they believe are the 10 best stocks for investors to buy now… and InterContinental Hotels Group Plc was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you would have $450,256!* Or when NVIDIA made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you would have $1,171,666!*
Now, it is worth noting stock advisor The total average performance is 942.%: An overwhelming outperformance of the market compared to the S&P 500’s 196%. Don’t miss the latest Top 10 list, available with Stock Advisorand join an investing community created by individual investors for individual investors.
See the 10 actions »
*Stock Advisor returns as of January 31, 2026.
Dan Caplinger has positions at Lululemon Athletica Inc. The Motley Fool has positions in and recommends Lululemon Athletica Inc. and Visa. The Motley Fool recommends InterContinental Hotels Group Plc and Marriott International. The Motley Fool has a disclosure policy.
Can InterContinental Hotels be the leader of the pack? was originally published by The Motley Fool
