InterContinental Hotels Group PLC (NYSE:IHG), concluded the day at $38.26 after seeing a fall of -7.52% that brought its market cap to $6.83 billion. In the trailing twelve months, its return on assets (ROA) is 10% while ROE for the same period is -29.5% and have seen an average of 35.1% return on investment (ROI). The outstanding share count is 178.6 million shares but the size of available float is 166.59 million shares. The stock’s current price is lagging SMA-200 by -33.85% which is also -9.84% down from SMA-50. Reducing that period to a shorter term, we see the price is also lagging -12.12% to the SMA-20.
InterContinental Hotels Group PLC (NYSE:IHG) on April 6, 2020 said that it has successfully completed the sale of its leasehold interest in Holiday Inn Melbourne Airport to Pelligra Group, owners of upcoming Holiday Inn Melbourne Werribee and Holiday Inn Melbourne Richmond. The decision supports IHG’s global asset-light strategy, which ensures its business model is focused around what it does best: franchising and managing hotels, with its business partners owning the bricks and mortar. Since 2003 IHG has completed the sale of almost 200 hotels globally as part of its move to an asset-light business model, and the sale of the Holiday Inn Melbourne Airport lease continues that global approach.
Pelligra Group has agreed that it will invest in a major refurbishment of this hotel over the coming years as part of the sale, bringing it in line with the best of the Holiday Inn brand. Abhijay Sandilya, Vice President Development, Australasia, Japan & Pacific said: “We are particularly thrilled to expand our partnership with Pelligra Group. We have a fantastic relationship and together we will open Holiday Inn Melbourne Werribee in 2021 and Holiday Inn Melbourne Richmond in 2023. We’re pleased that the deal means that we not only continue to support IHG’s global strategy, but that the iconic Holiday Inn Melbourne Airport will benefit from a refurbishment. We are very excited to welcome a high performing hotel like Holiday Inn Melbourne Airport to the Pelligra Group, it’s a fantastic asset that fits perfectly into our portfolio. This is a long term investment for us. We have a strong balance sheet and we are committed to keep the hotel trading through the current challenging period and into Melbourne Airport’s new era of expansion, which will include an extensive refurbishment for this great hotel. IHG is a great partner and we are so pleased to work together on so many great projects.”
Volatility for the week was 4.14%, which was 3.57% in the previous month. The company closed the session with a trading volume of 494.74 thousand shares, below from its average daily trading volume of 539.95 thousand. It has been generating revenue of $4.63 billion while net income posted by the company in last 12 months was $385million.
When looking at performance, we see the stock demonstrating a weekly performance of -9.08% while keeping a monthly performance of -12.43%. Quarterly performance saw a drop of -40% and continued the negative trend with a yearly performance of -40.18% while showing YTD performance of -44.28% which was -37.84% for last six months. The 52-week range for the stock was 25.39 – 71.02 that put its current price at a premium of 50.72% to the 52-week low price whereas it is trading at a discount of -46.13% to the 52-week high price.
The Lodging company is currently upholding a gross margin of 27.2% while maintaining a net profit margin of 8.3%. Operating margin for the last 12 months remained 13.6%. The company’s EPS for trailing 12 months is $2.09 and its annual dividend yield is 3.29% with a payout ratio of 56.1%. It is estimated to be posting an EPS of $0 for the current quarter. The Beta number showed the stock is subject to risk 23% more than the market as a whole.