InterContinental Hotels Group (LON:IHG) has inked a deal to expand its luxury and upscale estate in the UK, the Holiday Inn and Crowne Plaza owner has said. The move comes after earlier this year, the blue-chip company agreed to buy a majority stake in Regent Hotels and Resorts in an effort to accelerate its growth in the luxury segment.
InterContinental’s share price has climbed into positive territory in London in today’s session, having added 0.22 percent to 4,637.00p as of 09:51 BST. The stock is marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.05 percent higher at 7,547.19 points. The group’s shares have added just under 11 percent to their value over the past year, as compared with about a 4.3-percent gain in the Footsie.
UK luxury hotels deal
InterContinental announced in a statement this morning that it had entered into a conditional agreement with Foncière des Régions to rebrand and operate 12 high quality open hotels and one pipeline hotel into its portfolio across the UK. The move is expected to enable the company to launch its luxury boutique brand, Kimpton Hotels & Restaurants in the country.
“We are focused on continuing to expand our leadership in luxury and upscale, which are both high-value segments with significant growth potential,” the group’s chief executive Keith Barr commented in the statement. “Bringing Kimpton to such an important market as the UK is a key part of our plans.”
Analysts on InterContinental
Berenberg Bank reaffirmed InterContinental as a ‘hold’ last month, valuing the shares at 4,500p, while Barclays continues to see the company as ‘equal weight,’ with a price target of 4,400p. According to MarketBeat, the Holiday Inn and Crowne Plaza owner currently has a consensus ‘hold’ rating and an average price target of 4,463.85p.