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        <title>InterContinental Hotels Group PLC (LSE:IHG) Share Price, History, &amp; News | The Motley Fool UK</title>
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	<title>InterContinental Hotels Group PLC (LSE:IHG) Share Price, History, &amp; News | The Motley Fool UK</title>
	<link>https://www.fool.co.uk/tickers/lse-ihg/</link>
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                                <title>Looking for last-minute ISA ideas? Check out these UK stocks before April 3</title>
                <link>https://www.fool.co.uk/2026/03/27/looking-for-last-minute-isa-ideas-check-out-these-uk-stocks-before-april-3/</link>
                                <pubDate>Fri, 27 Mar 2026 07:46:00 +0000</pubDate>
                <dc:creator><![CDATA[Stephen Wright]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1666254</guid>
                                    <description><![CDATA[<p>Easter bank holidays mean the deadline to put cash into a Stocks and Shares ISA might be closer than UK investors think. Here are some last-minute ideas.</p>
<p>The post <a href="https://www.fool.co.uk/2026/03/27/looking-for-last-minute-isa-ideas-check-out-these-uk-stocks-before-april-3/">Looking for last-minute ISA ideas? Check out these UK stocks before April 3</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p>Time is running out for UK investors to add money to their ISAs so they can buy stocks this financial year. The new year starts on April 5, but that’s Easter Day and the stock market isn’t open Good Friday or Easter Saturday.</p>



<p>That means investors only have one week left to get cash into their accounts. But while they <span style="text-decoration: underline">don&#8217;t</span> have to invest that straight away, there are plenty of interesting opportunities worth considering right now.</p>



<p><em><em>Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.</em></em></p>



<h2 class="wp-block-heading" id="h-buy-the-dip">Buy the dip?</h2>



<p>One potential idea is <strong>InterContinental Hotels Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ihg/">LSE:IHG</a>). Shares in the <strong>FTSE 100</strong> hotel chain are down 6% in the last month.&nbsp;</p>


<div class="tmf-chart-singleseries" data-title="InterContinental Hotels Group Plc Price" data-ticker="LSE:IHG" data-range="5y" data-start-date="2021-03-27" data-end-date="2026-03-27" data-comparison-value=""></div>



<p>The main reason is the conflict in Iran, which is disruptive to travel and tourism. And the risk is that it continues longer than expected.</p>



<p>A 6% decline isn’t exactly a crash, but this is an unusually high-quality business. Its low capital requirements make it very attractive.</p>



<p>This comes from not owning the hotels in its system outright. Operating costs get left to local owners who pay to be part of the firm&#8217;s network.</p>



<p>It also has an attractive growth pipeline representing 33% of its existing network. And the cost of that expansion should be minimal.</p>



<p>The stock isn’t exactly in <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/">deep value territory</a>. But a quality business that’s facing temporary challenges might be worth checking out.</p>



<h2 class="wp-block-heading" id="h-keeping-it-simple">Keeping it simple</h2>



<p>A stock that <span style="text-decoration: underline">has</span> gone down a lot is <strong>Diageo</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-dge/">LSE:DGE</a>). A 54% decline means it’s at a price that would have been unimaginable five years ago.</p>


<div class="tmf-chart-singleseries" data-title="Diageo Plc Price" data-ticker="LSE:DGE" data-range="5y" data-start-date="2021-03-27" data-end-date="2026-03-27" data-comparison-value=""></div>



<p>Since 2021, though, revenue growth has stalled and margins have contracted. That’s due to a number of issues, some of which are still ongoing.</p>



<p>One of these is changes in consumer preferences. And despite having a strategy, Diageo has been slow to react to these.</p>



<p>That, however, is changing. Under Sir Dave Lewis, the firm is looking to use its scale to be more competitive on price.&nbsp;</p>



<p>It isn’t guaranteed to work, especially with consumer budgets under pressure. But it’s clear that doing the same thing is also risky.</p>



<p>The firm also has plans to improve its balance sheet and simplify its operations significantly. At today’s prices, I think it’s worth a look.</p>



<h2 class="wp-block-heading" id="h-something-a-bit-different">Something a bit different</h2>



<p>It’s not uncommon to find <a href="https://www.fool.co.uk/investing-basics/getting-started-in-investing/investing-in-reits-in-the-uk/">real estate investment trusts (REITs)</a> with high dividend yields. But <strong>AEW UK REIT</strong> (LSE:AEW) is a bit different.</p>


<div class="tmf-chart-singleseries" data-title="Aew Uk REIT Plc Price" data-ticker="LSE:AEWU" data-range="5y" data-start-date="2021-03-27" data-end-date="2026-03-27" data-comparison-value=""></div>



<p>REITs usually focus on securing long leases on properties with high demand to secure reliable income. AEW, however, does the opposite.</p>



<p>Long-term contracts offer stability, but often at the cost of growth. And high demand often leads to more competition from rivals.</p>



<p>Instead, AEW focuses on properties where supply is scarce, limiting choices for tenants. And shorter leases create opportunities to increase rents.</p>



<p>The downside is that if a tenant goes bust, it’s harder to find another one. That’s a risk, but the compensation for it is a 7.7% dividend yield.</p>



<p>It’s an unusual approach, but the firm has an excellent record. So I think it’s one for dividend investors to think about before April 3.</p>



<h2 class="wp-block-heading" id="h-stocks-and-shares-isas">Stocks and Shares ISAs</h2>



<p>Investing in a Stocks and Shares ISA can make a huge difference to long-term returns. But the deadline for adding cash to an account this year is April 3.</p>



<p>If the £20,000 contribution limit isn’t added to an ISA, it can’t be carried over. So this might be the most important time of the year to think about your investing strategy.</p>
<p>The post <a href="https://www.fool.co.uk/2026/03/27/looking-for-last-minute-isa-ideas-check-out-these-uk-stocks-before-april-3/">Looking for last-minute ISA ideas? Check out these UK stocks before April 3</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Get ready for stock market volatility&#8230;</title>
                <link>https://www.fool.co.uk/2026/03/07/get-ready-for-stock-market-volatility/</link>
                                <pubDate>Sat, 07 Mar 2026 08:17:00 +0000</pubDate>
                <dc:creator><![CDATA[Stephen Wright]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[US Stock]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1657734</guid>
                                    <description><![CDATA[<p>As conflict in the Middle East makes share prices fluctuate, what strategies can investors use to try and find opportunities in the stock market?</p>
<p>The post <a href="https://www.fool.co.uk/2026/03/07/get-ready-for-stock-market-volatility/">Get ready for stock market volatility&#8230;</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p>The stock market&#8217;s never dull, but it feels especially volatile at the moment. A rapidly-evolving situation in the Middle East means share prices are moving even more violently than usual.</p>



<p>Sharp declines caused by temporary concerns can be buying opportunities and there are a couple of things investors can do to help themselves. </p>



<h2 class="wp-block-heading" id="h-share-prices">Share prices</h2>



<p>Of course, there&#8217;s no denying that the tragic events in the Middle East right now matter much more than what’s going on in the stock market. But we can&#8217;t ignore the fact that the conflict has had a significant impact on share prices this week. </p>



<p>Increased tension has sent oil and <a href="https://www.fool.co.uk/investing-basics/market-sectors/investing-in-defence-stocks-in-the-uk/">defence shares</a> up while putting pressure on travel and manufacturing stocks. And the opposite&#8217;s happened when things have been calmer.</p>



<p>That&#8217;s given investors some real opportunities. Buying shares at discount prices often means waiting for market sentiment to shift, but this has been happening much faster than usual.</p>



<p>Stock market volatility can bring the chance to build a diversified portfolio at speed. But there are a couple of ways for investors to take advantage of the opportunity in front of them.</p>



<h2 class="wp-block-heading" id="h-screaming-value">Screaming value</h2>



<p>When share prices fall, cheap stocks become even cheaper. <strong>Nike</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/nyse-nke/">NYSE:NKE</a>) was already underperforming the <strong>S&amp;P 500</strong> this year before <a href="https://www.fool.co.uk/personal-finance/your-money/guides/what-is-inflation/">inflation</a> fears meant it fell further this week.</p>


<div class="tmf-chart-singleseries" data-title="Nike Price" data-ticker="NYSE:NKE" data-range="5y" data-start-date="2021-03-07" data-end-date="2026-03-07" data-comparison-value=""></div>



<p>The firm&#8217;s been working on its strategy after a series of mistakes in trying to go direct to consumers. But continued pressure on consumer spending could delay improvements.</p>



<p>There’s a real chance though, that the stock market&#8217;s underestimating the company. Investors are worried about cheap competition from China, but I think this concern&#8217;s misplaced.</p>



<p>Lower-priced rivals are nothing new for Nike. But having one of the strongest brands in the world is a very valuable asset for fending off competitors and I expect that to remain the case.</p>



<h2 class="wp-block-heading" id="h-unusual-opportunities">Unusual opportunities</h2>



<p>Another strategy is to focus on stocks that aren’t normally cheap at all. And it isn’t that hard to figure out why conflict made <strong>InterContinental Hotels Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ihg/">LSE:IHG</a>) shares fall. </p>


<div class="tmf-chart-singleseries" data-title="InterContinental Hotels Group Plc Price" data-ticker="LSE:IHG" data-range="5y" data-start-date="2021-03-07" data-end-date="2026-03-07" data-comparison-value=""></div>



<p>The <strong>FTSE 100</strong> hotel chain has significant assets in Dubai and Saudi Arabia, right on the edge of the conflict zone. So disruption in that part of the world is a big risk for the firm.</p>



<p>Most of the time, the stock market recognises the company as a high-quality operator with a franchise model that makes it highly cash generative. As a result, it’s almost never cheap.&nbsp;</p>



<p>That means investors who want to buy the stock need to be willing to seize opportunities when they present themselves. And that can be when there’s an ongoing geopolitical situation.&nbsp;</p>



<h2 class="wp-block-heading" id="h-investing-strategy">Investing strategy</h2>



<p>Buying shares when they’re cheap is often a good idea. But there are a couple of ways of trying to make the most of a volatile stock market.&nbsp;</p>



<p>Nike shares have gone from being discounted to trading at some unusually low multiples. And that makes them worth considering at the moment.&nbsp;</p>



<p>With InterContinental Hotels Group, the situation&#8217;s different. The stock isn’t trading at a low multiple, but it might be worth a look because buying opportunities on the whole are limited.</p>



<p>Either strategy can be a good one. But the best thing investors can do when the share prices start moving in big ways is to make sure they’re ready with a plan.</p>
<p>The post <a href="https://www.fool.co.uk/2026/03/07/get-ready-for-stock-market-volatility/">Get ready for stock market volatility&#8230;</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Investing in high-yield dividend stocks isn’t the only way to compound returns in an ISA or SIPP and build wealth</title>
                <link>https://www.fool.co.uk/2025/12/06/investing-in-high-yield-dividend-stocks-isnt-the-only-way-to-compound-returns-in-an-isa-or-sipp-and-build-wealth/</link>
                                <pubDate>Sat, 06 Dec 2025 09:11:00 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1614783</guid>
                                    <description><![CDATA[<p>Generous payouts from dividend stocks can be appealing. But another strategy can offer higher returns over the long run, says Edward Sheldon.</p>
<p>The post <a href="https://www.fool.co.uk/2025/12/06/investing-in-high-yield-dividend-stocks-isnt-the-only-way-to-compound-returns-in-an-isa-or-sipp-and-build-wealth/">Investing in high-yield dividend stocks isn’t the only way to compound returns in an ISA or SIPP and build wealth</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p>Buying high-yield dividend stocks is a popular investment strategy here in the UK. It’s easy to see why – with this strategy an investor can reinvest their dividends and capitalise on the power of compounding (earning a return on past returns).</p>



<p>But dividend stocks aren’t the only way to compound returns in a <a href="https://www.fool.co.uk/personal-finance/share-dealing/stocks-and-shares-isa/">Stocks and Shares ISA</a> or SIPP. There’s another strategy and it can often be even more lucrative.</p>



<h2 class="wp-block-heading" id="h-compounders-can-make-investors-a-lot-of-money">Compounders can make investors a lot of money</h2>



<p>There are certain companies in the stock market that are not only very profitable but also capable of continually reinvesting their profits for future growth. These companies (often called ‘compounders’) frequently turn out to be brilliant long-term investments because they’re able to compound their returns internally.</p>



<p>With these kinds of companies, annualised returns of 15%-20% over the long run aren&#8217;t unusual. On the downside, they tend to pay very small dividends (or none at all) because it makes more sense to reinvest profits for future growth than pay out earnings to shareholders.</p>



<h2 class="wp-block-heading" id="h-what-to-look-for">What to look for</h2>



<p>When it comes to finding these companies, there are a few things to look for.</p>



<p>One is a high (15%+) <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/return-on-equity-and-return-on-capital-employed/">return on capital employed</a> (ROCE). This is a profitability ratio that measures how effective a company is at turning capital at its disposal into profits.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p><em>“If the business earns six percent on capital over forty years and you hold it for that forty years, you’re not going to make much different than a six percent return – even if you originally buy it at a huge discount. Conversely, if a business earns eighteen percent on capital over twenty or thirty years, even if you pay an expensive looking price, you’ll end up with one hell of a result.”</em><br>Warren Buffett’s late business partner, Charlie Munger</p>
</blockquote>



<p>Another is a source of growth. Ideally, the company operates in an expanding industry where it can put its reinvested profits to work.</p>



<p>Additionally, it’s worth looking for a strong competitive advantage (which stops competitors from stealing market share), a strong balance sheet, and a good management team.</p>



<h2 class="wp-block-heading" id="h-a-british-compounder">A British compounder</h2>



<p>A good example of a compounder on the UK market is <strong>InterContinental Hotels Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ihg/">LSE: IHG</a>). It’s a leading hotel operator that owns a range of well known brands including <em>InterContinental</em>, <em>Holiday Inn</em>, and <em>Kimpton</em>.</p>



<p>Last year, its ROCE was about 37%. So, it’s a very profitable business.</p>



<p>It also has a source of growth – the travel industry is growing as wealth is rising globally and cashed-up Baby Boomers are retiring.</p>



<p>As for the stock’s returns, they’ve been amazing. Over the last 10 years, the share price has climbed from around 2,600p to 10,075p, which translates to an annualised return of about 15% per year.</p>



<p>Investors have received small dividends of around 1%-2% per year on top of this. So overall, long-term returns have been magnificent.</p>


<div class="tmf-chart-singleseries" data-title="InterContinental Hotels Group Plc Price" data-ticker="LSE:IHG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>Now, I’m not saying that this stock is a Buy to consider right now – it’s had a good run recently and now looks a little expensive. There are also some risks around a slowdown in consumer spending.</p>



<p>But there are plenty of other stocks like this on the <strong>London Stock Exchange</strong>. And they could be worth a look today.</p>
<p>The post <a href="https://www.fool.co.uk/2025/12/06/investing-in-high-yield-dividend-stocks-isnt-the-only-way-to-compound-returns-in-an-isa-or-sipp-and-build-wealth/">Investing in high-yield dividend stocks isn’t the only way to compound returns in an ISA or SIPP and build wealth</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Warren Buffett&#8217;s &#8216;secret sauce&#8217; for passive income investors</title>
                <link>https://www.fool.co.uk/2025/08/25/warren-buffetts-secret-sauce-for-passive-income-investors/</link>
                                <pubDate>Mon, 25 Aug 2025 06:55:00 +0000</pubDate>
                <dc:creator><![CDATA[Stephen Wright]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[US Stock]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1565816</guid>
                                    <description><![CDATA[<p>Investors looking for passive income usually have a choice between high yields and strong growth prospects. Here’s what Warren Buffett focuses on.</p>
<p>The post <a href="https://www.fool.co.uk/2025/08/25/warren-buffetts-secret-sauce-for-passive-income-investors/">Warren Buffett&#8217;s &#8216;secret sauce&#8217; for passive income investors</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p>Dividend shares can be a great source of passive income, but investors have a dilemma on their hands. High yields are often risky, but strong prospects typically bring lower starting returns.&nbsp;</p>



<p>Fortunately, billionaire investor Warren Buffett has a way out of the difficulty. But it’s only available for investors who are able to take a <a href="https://www.fool.co.uk/investing-basics/getting-started-in-investing/foolish-investing-taking-the-long-term-approach/">long-term approach</a> and wait for returns to develop. </p>



<h2 class="wp-block-heading" id="h-the-secret-sauce">The secret sauce</h2>



<p>Buffett doesn’t explicitly focus on dividends. But it’s no secret that some of the <strong>Berkshire Hathaway</strong> CEO’s most successful investments have been great sources of passive income.</p>



<p>An obvious example is <strong>Coca-Cola</strong>. As of 2025, the company returns over 50% of Berkshire’s initial $1.3bn investment in cash each year. </p>



<p>Unfortunately, this hasn’t happened overnight. It’s taken around three decades, but the results have been spectacular and highlight the value of taking a long-term approach to investing.&nbsp;</p>



<p>Buffett attributes this to one thing – growth. The starting yield was around 5.5%, but years of consistent growth has resulted in an investment that generates huge annual returns.</p>



<p>Importantly, Buffett’s firm hasn’t reinvested its dividends to buy more shares. The growth has all come from Coca-Cola, providing opportunities to invest the cash it generates elsewhere.</p>



<p>This is the real key to the success of Berkshire’s investment. And I think there are a few stocks worth considering at the moment that might have the secret sauce Buffett identifies.</p>



<h2 class="wp-block-heading" id="h-intercontinental-hotels-group">InterContinental Hotels Group</h2>



<p><strong>FTSE 100</strong> hotel chain <strong>InterContinental Hotels Group</strong>&#8216;s (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ihg/">LSE:IHG</a>) one example to consider. The company&#8217;s grown its revenues by 12.5% a year over the last decade using almost no cash to do so.</p>


<div class="tmf-chart-singleseries" data-title="InterContinental Hotels Group Plc Price" data-ticker="LSE:IHG" data-range="5y" data-start-date="2020-08-25" data-end-date="2025-08-25" data-comparison-value=""></div>



<p>The key to this is the firm’s business model. It doesn’t own the hotels in its network outright, but operates franchise agreements with owners who benefit from its marketing and booking support.&nbsp;</p>



<p>This means the cost of IHG adding new hotels is almost zero. As a result, the company&#8217;s able to return almost all of the cash it generates to shareholders.</p>



<p>The dividend yield&#8217;s only 1.4%. But <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/share-buybacks/">share buybacks</a> mean investors can earn an extra 4.5% a year by selling shares without reducing their stake in the overall business.</p>



<p>There are – as always – risks to consider. The possibility of a trade war leading to a global recession could cause travel demand to fall, weighing on the company’s profits in the short term.</p>



<p>Importantly though, the stock has fallen 8% in the last six months. So this might be an unusually good time for investors to take a look at a potential buying opportunity. </p>



<h2 class="wp-block-heading" id="h-the-buffett-method">The Buffett method</h2>



<p>The success of Buffett’s Coca-Cola investment should be a great inspiration for dividend investors. It’s the result of finding a great business and holding shares for the long term. </p>



<p>After an 11% decline since the start of the year, IHG&#8217;s worth paying attention to. Its business model gives it the ability to grow while distributing the majority of its cash to shareholders. </p>



<p>In terms of passive income, the returns are unlikely to be spectacular in the short term. But that was the case with Buffett’s Coca-Cola investment back in 1990.</p>
<p>The post <a href="https://www.fool.co.uk/2025/08/25/warren-buffetts-secret-sauce-for-passive-income-investors/">Warren Buffett&#8217;s &#8216;secret sauce&#8217; for passive income investors</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Down 25%, but I think this high-quality FTSE 100 stock will bounce back</title>
                <link>https://www.fool.co.uk/2025/06/15/down-25-but-i-think-this-high-quality-ftse-100-stock-will-bounce-back/</link>
                                <pubDate>Sun, 15 Jun 2025 04:05:33 +0000</pubDate>
                <dc:creator><![CDATA[Ben McPoland]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1533447</guid>
                                    <description><![CDATA[<p>One top-tier FTSE hotel stock has sold off heavily this year, creating a potentially attractive opportunity for long-term investors. </p>
<p>The post <a href="https://www.fool.co.uk/2025/06/15/down-25-but-i-think-this-high-quality-ftse-100-stock-will-bounce-back/">Down 25%, but I think this high-quality FTSE 100 stock will bounce back</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p><strong>InterContinental Hotels Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ihg/">LSE: IHG</a>) has lost a quarter of its value in just four months. However, the <strong>FTSE 100</strong> stock is still up more than 100% over five years, even after the sharp pullback from 10,880p to 8,240p since February.</p>



<p>Here&#8217;s why I think it&#8217;s just a matter of time before the stock gets back to winning ways.</p>


<div class="tmf-chart-singleseries" data-title="InterContinental Hotels Group Plc Price" data-ticker="LSE:IHG" data-range="5y" data-start-date="2020-06-15" data-end-date="2025-06-15" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-attractive-business-model">Attractive business model </h2>



<p>IHG, as it&#8217;s known, is one of the world’s biggest hotel companies, operating across more than 100 countries. The group’s brands span budget (Holiday Inn) to luxury (InterContinental, Kimpton, and Regent), but it has a very strong mid-market presence. </p>



<p>What’s important to understand is that IHG doesn’t typically own the hotels outright. Instead, it earns revenue through franchise fees, which are based on a percentage of room revenues. Or management fees for running hotels on behalf of owners.&nbsp;</p>



<p>It also generates value from its IHG One Rewards loyalty programme, which has over 145m members. Many hotels pay IHG a fee to be part of this loyalty scheme.&nbsp;</p>



<p>This asset-light, recurring revenue model means the company is very profitable. Last year, the operating margin was a healthy 21%.&nbsp;</p>



<h2 class="wp-block-heading" id="h-economic-uncertainty">Economic uncertainty  </h2>



<p>In Q1, IHG opened 14,600 rooms across 86 hotels, more than double in the same period last year. Global revenue per available room (RevPAR) grew 3.3%, with strong performance in the Americas (+3.5%) and Europe, Middle East, Asia, and Africa (+5%).</p>



<p>However, the firm’s fortunes are obviously still closely tied to ongoing travel demand. In China, Q1 RevPAR fell 3.5%, with occupancy at 52.8% versus 63.4% for the US and 66.7% for Europe, Middle East, Asia, and Africa. Global occupancy growth was pretty anaemic, at just 0.6%.  </p>



<p>Meanwhile, tariff uncertainty has led to fears of a US recession. International travel to America has slowed recently.&nbsp;The US is IHG’s most important market, so this is arguably the biggest risk here. </p>



<p>A slowdown could impact near-term growth, while any escalation in the Israel-Iran conflict might put people off travelling to the Middle East at all.&nbsp;</p>



<p>Another issue worth highlighting is IHG’s decision to launch a hefty $900m <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/share-buybacks/">share buyback</a> programme in February. With the stock trading near record highs at the time, some investors questioned whether the cash would have been better spent reducing the group’s $2.7bn net debt position. </p>



<h2 class="wp-block-heading" id="h-very-supportive-trends">Very supportive trends</h2>



<p>While the rest of the year looks uncertain, I&#8217;m bullish on IHG&#8217;s <a href="https://www.fool.co.uk/investing-basics/getting-started-in-investing/foolish-investing-taking-the-long-term-approach/">long-term</a> prospects. It currently has a global pipeline of 334,000 rooms in 2,265 hotels, with emerging markets like India, Southeast Asia, and Africa offering massive expansion potential.&nbsp;</p>



<p>We may be living in a world of <strong>Airbnb</strong> and hostel-dwelling digital nomads, but branded hotels still rule the roost in business travel, groups, and loyalty programmes. And anything involving a decent breakfast!&nbsp;</p>



<p>According to Airports Council International&nbsp;(ACI), global passenger traffic is projected to nearly double by 2053, reaching 22.3bn. This will be driven by a rising middle class in emerging markets and increasing demand for air travel. A wide selection of IHG’s hotels will be waiting for them across the globe.</p>



<p>After its 25% haircut, the stock is trading at around 20 times forecast earnings for 2026. At this valuation, I think it&#8217;s well worth considering as a long-term addition to a diversified portfolio. </p>
<p>The post <a href="https://www.fool.co.uk/2025/06/15/down-25-but-i-think-this-high-quality-ftse-100-stock-will-bounce-back/">Down 25%, but I think this high-quality FTSE 100 stock will bounce back</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>2 UK stocks to consider buying as the market sell-off continues</title>
                <link>https://www.fool.co.uk/2025/04/27/2-uk-stocks-to-consider-buying-as-the-market-sell-off-continues/</link>
                                <pubDate>Sun, 27 Apr 2025 07:17:00 +0000</pubDate>
                <dc:creator><![CDATA[Stephen Wright]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1508597</guid>
                                    <description><![CDATA[<p>Stephen Wright thinks investors looking for opportunities might be able to take advantage of short-term weakness in some UK stocks.</p>
<p>The post <a href="https://www.fool.co.uk/2025/04/27/2-uk-stocks-to-consider-buying-as-the-market-sell-off-continues/">2 UK stocks to consider buying as the market sell-off continues</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>The best returns often come from <a href="https://www.fool.co.uk/investing-basics/how-to-invest-in-shares/how-to-be-a-good-investor/">investing when others are worried</a> about falling prices. And I think UK investors looking for stocks to buy have some opportunities that could be rewarding.</p>



<p>Over the long term, what matters most with a stock investment is the quality of the underlying business. And there are a couple of names that seem to be worth a closer look at the moment.</p>



<h2 class="wp-block-heading" id="h-intercontinental-hotels-group">InterContinental Hotels Group</h2>



<p>Shares in <strong>FTSE 100</strong> hotel chain <strong>InterContinental Hotels Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ihg/">LSE:IHG</a>) have fallen 22% since the start of the year. And there have definitely been some challenges for the company.&nbsp;</p>


<div class="tmf-chart-singleseries" data-title="InterContinental Hotels Group Plc Price" data-ticker="LSE:IHG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>Results for 2024 were largely in line with expectations. But higher costs and the potential for US tariffs mean the short-term outlook isn’t as strong, which is why the stock is down.</p>



<p>There’s also a constant risk of a <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/where-to-invest-during-a-recession/">recession</a>. If consumers find budgets under pressure and travel demand falls off, this is likely to be reflected in InterContinental’s revenues.</p>



<p>While investors shouldn’t ignore these risks, the firm does have some very attractive attributes. One is its strong pipeline of opportunities for expanding its network over the next few years.&nbsp;</p>



<p>Another is the fact is the company doesn’t have to invest much to grow. Billionaire investor Warren Buffett says this is the mark of the best businesses and InterContinental Hotels Group’s a great example.&nbsp;</p>



<p>At a price-to-earnings (P/E) ratio of 24, the stock doesn’t look obviously cheap. But I think its strong growth prospects and low capital requirements mean investors should take a look.</p>



<h2 class="wp-block-heading" id="h-judges-scientific">Judges Scientific</h2>



<p><strong>Judges Scientific</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-jdg/">LSE:JDG</a>) has a very impressive long-term record. Over the last 10 years, sales have grown at almost 13% a year and earnings per share have increased by 16% a year.</p>


<div class="tmf-chart-singleseries" data-title="Judges Scientific Plc Price" data-ticker="LSE:JDG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>As a result, the stock’s up 300% over the last decade. But 2024 hasn’t been a good year for the company at all – the stock fell 44% after revenues declined 2% and earnings per share fell 24%.</p>



<p>Investors however, might think this is an overreaction. The weak financial performance has been the result of customers delaying and deferring orders, which has weighed on sales.&nbsp;</p>



<p>Several of these contracts though, are set to boost revenues in the first half of this year. So the decline in revenues looks likely to be short-lived and I also expect profits to recover strongly.&nbsp;</p>



<p>On top of this, I also think the current environment’s good for companies looking to make acquisitions. And this has been – and still is – a big part of Judges Scientific’s growth strategy.</p>



<p>Uneven demand requires a company to manage its cash flows carefully and this can be a long-term risk. But the falling share price looks like an opportunity for investors to consider.</p>



<h2 class="wp-block-heading" id="h-buying-the-dip">Buying the dip</h2>



<p>It can be tough to buy shares when prices are falling. Even when a stock’s down 22% in four months, or 44% in a year, there’s no rule saying it can’t fall further.&nbsp;</p>



<p>Short-term overreactions however, tend to reverse over time. And this is worth remembering when considering stocks like InterContinental Hotels Group and Judges Scientific.</p>
<p>The post <a href="https://www.fool.co.uk/2025/04/27/2-uk-stocks-to-consider-buying-as-the-market-sell-off-continues/">2 UK stocks to consider buying as the market sell-off continues</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>2 world-class growth stocks to consider buying in May</title>
                <link>https://www.fool.co.uk/2025/04/27/2-world-class-growth-stocks-to-consider-buying-in-may/</link>
                                <pubDate>Sun, 27 Apr 2025 05:25:55 +0000</pubDate>
                <dc:creator><![CDATA[Ben McPoland]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1507720</guid>
                                    <description><![CDATA[<p>Following the recent market sell-off, this pair of top-tier growth stocks look attractive for long-term investors. Here's why.</p>
<p>The post <a href="https://www.fool.co.uk/2025/04/27/2-world-class-growth-stocks-to-consider-buying-in-may/">2 world-class growth stocks to consider buying in May</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>The stock market has been up and down like a see-saw lately, with a single comment from President Trump either sending it skyrocketing or nosediving. Growth stocks have been at the forefront of this volatility, as they’re typically valued based on future expectations of profits.  </p>



<p>Nevertheless, I think these two high-quality growth shares are worth considering.</p>



<h2 class="wp-block-heading" id="h-amazon">Amazon</h2>



<p>The first stock that continues to look like a steal to me is <strong>Amazon</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/nasdaq-amzn/">NASDAQ: AMZN</a>). The firm&#8217;s e-commerce operation likely needs no introduction, but it&#8217;s the cloud computing business (AWS) that’s the real profitable growth driver here.</p>



<p>In 2024, this division&#8217;s sales rose 19% year on year, exceeding $100bn for the first time. And despite only making up 17% of overall revenue, AWS contributed about 58% of total operating income, easily making it the largest profit engine within Amazon.</p>



<p>Overall operating income jumped 86% last year, as artificial intelligence (AI) drives efficiency initiatives and a booming high-margin advertising business also boosted performance.</p>



<p>Somewhat surprisingly though, the Amazon share price has significantly underperformed the <strong>S&amp;P 500</strong> over the past five years. Indeed, it&#8217;s down 23% since February. </p>



<p>As a result, the stock’s almost as cheap as it has ever been on some metrics. For example, the forward-looking EV/EBIT ratio &#8212; which is a metric that compares Amazon’s enterprise value to its forecast annual operating profit &#8212; is just 25 today.</p>



<p>That might sound high but it&#8217;s actually very cheap, historically speaking. And this Is despite the firm&#8217;s operations being as strong as they have ever been.</p>



<p>The forward <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings</a> (P/E) ratio of 28 is also low. That multiple has tended to be above 50 in the past.</p>


<div class="tmf-chart-singleseries" data-title="Amazon Price" data-ticker="NASDAQ:AMZN" data-range="5y" data-start-date="2020-04-27" data-end-date="2025-04-27" data-comparison-value=""></div>



<p>So what&#8217;s the catch? Well, there&#8217;s a lot of uncertainty about how tariffs will impact Amazon&#8217;s profitability. You see, over 50% of third-party sellers on its platform are based in China. If prices rise dramatically, that could mean less consumer spending, and therefore reduced growth and profits. So this is a notable risk here.</p>



<p>Taking a <a href="https://www.fool.co.uk/investing-basics/getting-started-in-investing/foolish-investing-taking-the-long-term-approach/">five-year view</a> however, I think Amazon will be just fine. It&#8217;s one of the strongest businesses around, with incredible optionality (many ways to keep growing). </p>



<p>Amazon’s likely to carry on benefitting from multiple mega-trends &#8212; online shopping, AI, cloud computing, digital advertising, and more.</p>



<h2 class="wp-block-heading" id="h-ihg">IHG</h2>



<p>Next, I reckon <strong>InterContinental Hotels </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ihg/">LSE: IHG</a>) from the <strong>FTSE 100</strong> is worth a look. The share price has slumped nearly 30%, from an all-time high of 10,900p in February to less than 7,800p today.</p>


<div class="tmf-chart-singleseries" data-title="InterContinental Hotels Group Plc Price" data-ticker="LSE:IHG" data-range="5y" data-start-date="2020-04-27" data-end-date="2025-04-27" data-comparison-value=""></div>



<p>Zooming further out though, IHG stock has still returned more than 100% over the past five years (excluding dividends). </p>



<p>While the recovery of international travel after Covid has helped, the firm&#8217;s strong portfolio of hotel brands &#8212; including Holiday Inn, Regent, and Crowne Plaza &#8212; also continues to expand worldwide.</p>



<p>IHG operates a capital-light franchising model. In other words, it doesn’t own most of its hotels, but instead licenses its brands to third-party owners. This is very profitable. &nbsp;</p>



<p>Naturally, a global recession would present risk, as that could reduce international travel. This largely explains the recent share price weakness.</p>



<p>Again though, I&#8217;m bullish on this stock over a longer time frame. The global travel industry is expanding, especially in emerging markets where IHG has a growing presence.</p>



<p>Finally, the forward P/E ratio is around 20 &#8212; an attractive discount to recent years.</p>



<p></p>
<p>The post <a href="https://www.fool.co.uk/2025/04/27/2-world-class-growth-stocks-to-consider-buying-in-may/">2 world-class growth stocks to consider buying in May</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>3 world-class stocks to consider buying, while they’re ‘on sale’</title>
                <link>https://www.fool.co.uk/2025/04/04/3-world-class-stocks-to-consider-buying-while-theyre-on-sale/</link>
                                <pubDate>Fri, 04 Apr 2025 08:54:58 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1496205</guid>
                                    <description><![CDATA[<p>Looking for stocks to buy? These three all have attractive long-term prospects and are currently trading 20% or more below their 52-week highs.</p>
<p>The post <a href="https://www.fool.co.uk/2025/04/04/3-world-class-stocks-to-consider-buying-while-theyre-on-sale/">3 world-class stocks to consider buying, while they’re ‘on sale’</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>For those looking for stocks to buy, now’s an exciting time. With markets having sold-off due to uncertainty over Donald Trump’s tariffs, many top stocks are now ‘on sale’.</p>



<p>Here, I’m going to highlight three world-class stocks that are currently trading 20% or more below their highs. I think these shares are worth considering today.</p>



<h2 class="wp-block-heading" id="h-alphabet">Alphabet</h2>



<p>Let’s start with Google and YouTube owner<strong> Alphabet</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/nasdaq-goog/">NASDAQ: GOOG</a>). Because this stock looks really cheap right now. Down 27% from its 52-week high, it’s currently trading on a forward-looking <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings</a> (P/E) ratio of just 17.8. That’s very low for a ‘Magnificent 7’ stock.</p>


<div class="tmf-chart-singleseries" data-title="Alphabet Price" data-ticker="NASDAQ:GOOG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>Of course, Alphabet&#8217;s more sensitive to economic conditions than some of the other Big Tech companies. If businesses reign in their advertising spending, its revenue and earnings growth could stall.</p>



<p>And that’s not the only risk here. Another is disruption to its business model from new generative AI apps like ChatGPT.</p>



<p>This company has plenty of growth levels it can pull however (for example, it could charge customers more for Google Drive). And in the long run, I see plenty of potential from YouTube, cloud computing, and self-driving cars.</p>



<p>So I think it&#8217;s worth a look today.</p>



<h2 class="wp-block-heading" id="h-intercontinental-hotels-group">InterContinental Hotels Group</h2>



<p>Turning to the <strong>FTSE 100,</strong> I like the look of <strong>InterContinental Hotels</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ihg/">LSE: IHG</a>). It was trading near 11,000p back in February however, it’s now hovering around 7,900p – about 28% lower.</p>


<div class="tmf-chart-singleseries" data-title="InterContinental Hotels Group Plc Price" data-ticker="LSE:IHG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>At that price, the P/E ratio is in the low 20s. I think that’s attractive given this company’s brands (InterContinental, Holiday Inn, Kimpton, etc) and very profitable, franchise-based business model.</p>



<p>It’s worth pointing out that in the near term there’s uncertainty here. Consumers are a little on edge right now, and they may reign in their spending on travel over the next 12 months.</p>



<p>Taking a five-to-10 year view however, I expect this company to do well on the back of the retirement of the Baby Boomers, rising incomes in emerging markets, and the general growth of the travel industry. Over time, I expect it to get much bigger so is worth considering.</p>



<h2 class="wp-block-heading" id="h-scottish-mortgage-investment-trust">Scottish Mortgage Investment Trust</h2>



<p>Finally, I like the look of <strong>Scottish Mortgage Investment Trust</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-smt/">LSE: SMT</a>) at the moment. It’s a growth-focused product that offers exposure to growth industries such as e-commerce, artificial intelligence (AI), self-driving cars, and space technology.</p>



<p>Back in February, its shares were trading near 1,130p. Today however, they can be snapped up for around 900p – about 20% lower.</p>


<div class="tmf-chart-singleseries" data-title="Scottish Mortgage Investment Trust Plc Price" data-ticker="LSE:SMT" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>Now, this investment trust could be volatile in the short term. At present, stocks in industries such as AI are under quite a bit of pressure. But taking a <a href="https://www.fool.co.uk/investing-basics/getting-started-in-investing/foolish-investing-taking-the-long-term-approach/">long-term view</a> (as we always do at <em>The Motley Fool</em>), I think it will do well. Let’s face it – the world&#8217;s expected to become even more digitised in the years ahead.</p>



<p>This means that the industries I mentioned above are likely to get much bigger. With exposure to companies such as <strong>Amazon</strong>, <strong>Nvidia</strong>, and <strong>Meta Platforms</strong>, this trust is well positioned for the future, in my view and worthy of a closer look.</p>



<p></p>
<p>The post <a href="https://www.fool.co.uk/2025/04/04/3-world-class-stocks-to-consider-buying-while-theyre-on-sale/">3 world-class stocks to consider buying, while they’re ‘on sale’</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Down 22% in a month! Is this my chance to buy shares in this FTSE 100 outperformer?</title>
                <link>https://www.fool.co.uk/2025/03/16/down-22-in-a-month-is-this-my-chance-to-buy-shares-in-this-ftse-100-outperformer/</link>
                                <pubDate>Sun, 16 Mar 2025 07:50:00 +0000</pubDate>
                <dc:creator><![CDATA[Stephen Wright]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1482740</guid>
                                    <description><![CDATA[<p>Shares in InterContinental Hotels Group have outperformed the FTSE 100 over the long term. So is a chance to buy at a 22% discount too good to miss?</p>
<p>The post <a href="https://www.fool.co.uk/2025/03/16/down-22-in-a-month-is-this-my-chance-to-buy-shares-in-this-ftse-100-outperformer/">Down 22% in a month! Is this my chance to buy shares in this FTSE 100 outperformer?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>The best time to buy shares in any company is when they’re out of favour with investors. And this has been the case with <strong>InterContinental Hotels Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ihg/">LSE:IHG</a>). </p>


<div class="tmf-chart-singleseries" data-title="InterContinental Hotels Group Plc Price" data-ticker="LSE:IHG" data-range="5y" data-start-date="2020-03-16" data-end-date="2025-03-16" data-comparison-value=""></div>



<p>The stock&#8217;s down 22% over the last month, but it&#8217;s outperformed the <strong>FTSE 100</strong> over the decade. So could this be my opportunity to buy a stock I’ve had my eye on for some time?</p>



<h2 class="wp-block-heading" id="h-cash-generation">Cash generation</h2>



<p>The thing I like most about InterContinental Hotels Group is that it has a business model that delivers huge cash generation. And at the end of the day, that’s what investing&#8217;s all about. </p>



<p>Over the last 10 years, the company&#8217;s reinvested just 5% of the cash it has <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/the-cash-flow-statement/">generated through its operations</a> back into its business. The rest has been made available for shareholder returns.</p>



<p>Importantly however, this hasn’t come at the expense of growth. Revenues have grown at an average of 12.5% a year during this period, which includes the heavily-disrupting Covid-19 pandemic.</p>



<p>A business that can grow while returning almost all of the cash it generates to shareholders has to be worth a closer look. And InterContinental’s success over the last 10 years hasn’t been an accident.&nbsp;</p>



<h2 class="wp-block-heading" id="h-business-model">Business model</h2>



<p>The key to the company’s success has been its asset-light business model. In other words, it doesn’t actually own the hotels in its network. Instead, it enters into franchise agreements with individual operators. In exchange for a percentage of revenues, the hotels benefit from its marketing, booking management system, and expertise.</p>



<p>As a result, InterContinental doesn’t pick up any of the costs associated with running hotels. Things like maintaining buildings, paying staff, and buying supplies are all handled by individual operators.</p>



<p>That means there isn’t much for the company to spend its cash on internally. And with the cost of adding a hotel to its network negligible, most of its earnings become available to shareholders.</p>



<h2 class="wp-block-heading" id="h-why-is-the-stock-down">Why is the stock down?</h2>



<p>All of this sounds great, but it means the obvious question is why the stock&#8217;s down? If the business is a cash machine, why have investors been going off it over the last few months?</p>



<p>The company’s latest update was generally strong, but there was one important negative point that stood out. Higher net debt has been leading to an increase in interest costs, cutting into profits.&nbsp;</p>



<p>This is partly the result of IHG using its cash for <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/share-buybacks/">share buybacks</a>, instead of boosting its balance sheet. As such, the decision to spend a further $900m on shares repurchases has to be considered a risk.</p>



<p>I’d rather see the cash used for debt reduction, but that’s a minor objection to what is otherwise a terrific company. Hotels might not look exciting, but I think this is an unusually good business.</p>



<h2 class="wp-block-heading" id="h-time-to-seize-the-moment">Time to seize the moment?</h2>



<p>When shares in a quality company fall 22%, I think investors should pay attention. But a stock isn’t automatically cheap just because its share price is lower than it once was.&nbsp;</p>



<p>The stock still trades at a price-to-earnings (P/E) multiple of 28, which is high by most standards. So while I like the business very much, I think there are better opportunities for me elsewhere.</p>
<p>The post <a href="https://www.fool.co.uk/2025/03/16/down-22-in-a-month-is-this-my-chance-to-buy-shares-in-this-ftse-100-outperformer/">Down 22% in a month! Is this my chance to buy shares in this FTSE 100 outperformer?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Down 21% since February, this winning FTSE 100 stock now looks interesting</title>
                <link>https://www.fool.co.uk/2025/03/16/down-21-since-february-this-winning-ftse-100-stock-now-looks-interesting/</link>
                                <pubDate>Sun, 16 Mar 2025 05:05:56 +0000</pubDate>
                <dc:creator><![CDATA[Ben McPoland]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1482210</guid>
                                    <description><![CDATA[<p>After losing nearly a quarter of its value in the space of a month, this high-quality FTSE 100 share's firmly on our writer's radar.</p>
<p>The post <a href="https://www.fool.co.uk/2025/03/16/down-21-since-february-this-winning-ftse-100-stock-now-looks-interesting/">Down 21% since February, this winning FTSE 100 stock now looks interesting</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>The high-flying <strong>FTSE 100</strong> has come off the boil in the past couple of weeks as the risk of a global trade war rises. One Footsie stock that has fallen more than most is <strong>InterContinental Hotels Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ihg/">LSE: IHG</a>). Now at 8,600p, it&#8217;s down 21% in just over a month.</p>



<p>Taking a longer-term view however, IHG stock has been a big winner. It&#8217;s still up 160% over the past five years, not including dividends. In my eyes though, the firm remains an attractive investment proposition, making this a potential dip-buying opportunity for my portfolio.</p>


<div class="tmf-chart-singleseries" data-title="InterContinental Hotels Group Plc Price" data-ticker="LSE:IHG" data-range="5y" data-start-date="2020-03-16" data-end-date="2025-03-16" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-capital-light-model">Capital-light model</h2>



<p>IHG operates more than 6,600 hotels worldwide across 20 brands, covering the luxury, premium, and midscale segments. These include InterContinental, Regent, Kimpton, Crowne Plaza, and Holiday Inn.&nbsp;</p>



<p>The firm primarily follows an asset-light franchise and management model, meaning it doesn’t own most of its locations but earns money through fees paid by hotel owners. This is enabling it to expand faster around the world.&nbsp;&nbsp;</p>



<p>Unlike US rivals <strong>Marriott</strong> and <strong>Hilton</strong>, which have a stronger emphasis on luxury, IHG has established a strong presence in the midscale segment. This strategy allows it to cater to a wide range of travellers.</p>



<h2 class="wp-block-heading" id="h-solid-progress">Solid progress</h2>



<p>In mid-February, the company released its 2024 results. It reported $2.3bn in revenue from its core franchise and management business, up 7% year on year. Core operating profit jumped 10% to $1.12bn. </p>



<p>IHG added 371 new hotels (59,100 rooms) in 2024, a 23% increase, with a global pipeline of 2,210 hotels (325,000 rooms).</p>



<p>Revenue per available room (RevPAR) increased 3% globally, driven by 6.6% growth in EMEAA (Europe, Middle East, Africa and Asia) and 2.5% in the Americas. However, Greater China fell 4.8% and remains a weak market. Higher RevPAR means hotels are charging more per night and/or filling more rooms. The 3% figure was higher than what analysts were expecting (2.6%).</p>



<p>Meanwhile, the firm hiked the dividend by 10% and announced a new $900m <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/share-buybacks/">share buyback</a> programme. The forward-looking <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/dividend-yield/">dividend yield</a> here though is a modest 1.7%.</p>



<h2 class="wp-block-heading" id="h-why-s-the-stock-down">Why&#8217;s the stock down?</h2>



<p>Now for the not-so-good bits. Net debt increased to $2.78bn, largely due to shareholder returns. And there were higher interest payments, with adjusted interest expense rising from $131m to $165m.</p>



<p>In 2025, IHG says its adjusted interest expense will be between $190m and $205m, surpassing analysts&#8217; estimates of $174m. This issue led some analysts to downgrade the stock, especially as it was trading at a premium valuation above 10,000p.&nbsp;</p>



<p>Another concern here is the growing possibility of a recession in the US, IHG&#8217;s largest market. This could thwart growth and impact earnings.</p>



<h2 class="wp-block-heading" id="h-foolish-perspective">Foolish perspective </h2>



<p>Looking to the long term though, I think there&#8217;s a lot to like here. Many of the company&#8217;s brands are very established and it has an attractive business model that produces high margins and recurring revenue. </p>



<p>Meanwhile, leading global hotel brands are expected to continue a long-term trend of taking market share. The valuation also seems reasonable. Right now, the stock is trading at around 22 times this year&#8217;s forecast earnings.</p>



<p>Finally, IHG plans to expand in numerous high-growth markets over the coming years, including India and the Middle East. I think the stock will recover and do well long term, which is why I&#8217;m considering buying it.</p>
<p>The post <a href="https://www.fool.co.uk/2025/03/16/down-21-since-february-this-winning-ftse-100-stock-now-looks-interesting/">Down 21% since February, this winning FTSE 100 stock now looks interesting</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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