IHG Shares Climb Nearly 3% Toward 52-Week High as Hotel Stocks Rally on Falling Oil and Accelerating RevPAR

Shares of InterContinental Hotels Group rose nearly 3% in early trading Monday, moving toward a 52-week high as hotel and travel stocks rallied.

IHG's U.S.-listed shares rose 2.85% to $172.65 as of about 9:49 a.m. Eastern time. The shares closed at $167.81 on Friday.

Travel and hospitality stocks broadly moved higher as oil prices fell on hopes for talks between the United States and Iran. Hyatt rose nearly 3%, while online travel companies Expedia and Booking Holdings rose about 4%.

Near the top of its range

IHG's stock has traded between $120.16 and $175.89 over the past 52 weeks, leaving Monday's price within a few dollars of its high.

RevPAR accelerates

The British hotel company, which owns brands including Holiday Inn, InterContinental, Crowne Plaza and Kimpton, reported an acceleration in growth in its third-quarter trading update on Oct. 22.

Global revenue per available room, or RevPAR, rose 5.3% in the third quarter, accelerating from earlier in the year. Year to date, RevPAR has grown 4.6%.

"RevPAR growth accelerated in the third quarter to +5.3%," Chief Executive Elie Maalouf said, citing the breadth of IHG's geographic presence, brands and types of stays.

Strong development

IHG also reported strong development activity. The company has opened 289 hotels and signed agreements for 516 more so far this year.

The company said it was confident of meeting analysts' consensus expectations for the full year.

Buybacks

IHG has been buying back its own shares as part of a $950 million share repurchase program for 2026. The company has been purchasing shares regularly on the London Stock Exchange and canceling them.

As of late October, IHG had about 146.9 million shares in issue, excluding shares held in treasury.

Volatile trading

IHG's shares have been volatile in recent weeks. The stock fell 3.2% on Oct. 23, the day after its trading update, before rising 3% on Oct. 26.

Asset-light model

Like many major hotel companies, IHG operates an asset-light business model, earning most of its revenue from fees for managing and franchising hotels rather than owning properties. That model has helped the company generate steady cash flow and fund buybacks.

Travel backdrop

Hotel stocks have been affected this year by the conflict in the Middle East, which disrupted oil supplies and raised concerns about international travel. Lower oil prices can ease costs for travelers and support demand.

What's next

IHG will next report full-year results in February. Investors will watch for whether RevPAR growth continues to accelerate into the fourth quarter and whether the company maintains its development momentum.