InterContinental Hotels GroupIHG +1.01%90 Capex-to-Operating-Income is 0.08 as of Dec. 2025, which is 56% below its 10-year median of 0.18. GuruFocus rates IHG with a GF Score™ of 90/100 and a GF Value™ of $133.74 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 463 Travel & Leisure companies, InterContinental Hotels Group ranks better than 91.58% on this metric.
Capex-to-Operating-Income measures a company's investments in physical assets such as property, industrial buildings or equipment to its operating income.
InterContinental Hotels Group (NYSE:IHG) Capex-to-Operating-Income Explanation
Capex-to-Operating-Income assesses how much emphasis a company is placing upon investing in capital-intensive projects. The ratio is generally a good gauge to quantify how much focus on growth a company has. Typically, smaller companies that are still growing and expanding will have a higher Capex to Operating Income Ratio, since such businesses are likely investing more in physical assets. Lower ratios could indicate that a company has reached maturity and it is no longer pursuing aggressive growth.
InterContinental Hotels Group Capex-to-Operating-Income Related Terms
InterContinental Hotels Group Capex-to-Operating-Income Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
InterContinental Hotels Group Capex-to-Operating-Income Chart
IHG vs MAR, HLT, H: Capex-to-Operating-Income Comparison
For the Lodging subindustry, InterContinental Hotels Group's Capex-to-Operating-Income, along with its competitors' market caps and Capex-to-Operating-Income data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
InterContinental Hotels Group Capex-to-Operating-Income vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, InterContinental Hotels Group's Capex-to-Operating-Income distribution charts can be found below:
* The bar in red indicates where InterContinental Hotels Group's Capex-to-Operating-Income falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Capex-to-Operating-Income of 0.08 mean?
InterContinental Hotels Group (IHG) has a Capex-to-Operating-Income of 0.08 as of Dec. 2025. Capex to Operating Income ratio measures a company's investments in physical assets to its operating income. View historical data on InterContinental Hotels Group and its competitors. This is 56% below median its historical median of 0.18. Over the past decade, InterContinental Hotels Group's Capex-to-Operating-Income has ranged from 0.06 to 0.43. According to the industry distribution chart, InterContinental Hotels Group ranks #39 out of 463 companies in the Travel & Leisure industry, placing it in the top 8.4%.
Is InterContinental Hotels Group's Capex-to-Operating-Income too high?
InterContinental Hotels Group's current Capex-to-Operating-Income of 0.08 is 56% below median its 10-year median of 0.18. Over the past 10 years, this metric has ranged from a low of 0.06 to a high of 0.43. The Travel & Leisure industry median Capex-to-Operating-Income is 0.46. InterContinental Hotels Group's value of 0.08 is 82.6% below this industry median. Based on the distribution chart, InterContinental Hotels Group ranks #39 out of 463 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, InterContinental Hotels Group has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does InterContinental Hotels Group's Capex-to-Operating-Income compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, InterContinental Hotels Group ranks #39 out of 463 companies for Capex-to-Operating-Income. This places InterContinental Hotels Group in the top 8% of its industry — outperforming the majority of peers. The industry median Capex-to-Operating-Income is 0.46. InterContinental Hotels Group's value of 0.08 is 82.6% below this benchmark. Historically, InterContinental Hotels Group's own Capex-to-Operating-Income has ranged from 0.06 to 0.43 over the past decade. While the company's 10-year median is 0.18 vs. the industry median of 0.46, InterContinental Hotels Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Capex-to-Operating-Income for a Travel & Leisure company?
The median Capex-to-Operating-Income among Travel & Leisure companies is 0.46, based on 463 companies in the industry. Companies in the top quartile (top 25%) have a Capex-to-Operating-Income significantly above this median, while those in the bottom quartile fall well below. However, Capex-to-Operating-Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. InterContinental Hotels Group's current Capex-to-Operating-Income of 0.08 is 82.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Capex-to-Operating-Income mean?
A high Capex-to-Operating-Income can signal that a stock is expensive relative to its fundamentals. Capex to Operating Income ratio measures a company's investments in physical assets to its operating income. View historical data on InterContinental Hotels Group and its competitors. For the Travel & Leisure industry, the median Capex-to-Operating-Income is 0.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. InterContinental Hotels Group's current Capex-to-Operating-Income is 0.08, which is 56% below median its own 10-year median of 0.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is InterContinental Hotels Group stock overvalued right now?
Based on GuruFocus' analysis, InterContinental Hotels Group (IHG) is currently considered Modestly Overvalued. The stock's GF Value™ is $133.74, compared to a current price of $172.60 — trading 29.1% above its estimated fair value. The current Capex-to-Operating-Income is 0.08, which is 56% below median its 10-year median of 0.18 and 82.6% below the Travel & Leisure industry median of 0.46. InterContinental Hotels Group's overall GF Score™ is 90/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Capex-to-Operating-Income calculated?
Capex-to-Operating-Income is calculated from a company's financial statements. For InterContinental Hotels Group (IHG), the current Capex-to-Operating-Income is 0.08 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is InterContinental Hotels Group (IHG) Overvalued in 2026?
Based on GuruFocus' analysis, InterContinental Hotels Group stock appears to be overvalued.
The current stock price of $172.60 is trading 29.1% above its estimated GF Value™ of $133.74.
GuruFocus considers InterContinental Hotels Group to be Modestly Overvalued.
Key valuation signals for IHG:
Capex-to-Operating-Income: 0.08 (56% below median its 10-year median of 0.18)
GF Value™: $133.74 vs. price of $172.60 (29.1% above fair value)
Industry Position: 82.6% below the Travel & Leisure median (#39 of 463)
No single metric tells the full story. See the IHG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
InterContinental Hotels Group Business Description
InterContinental Hotels Group operates 1 million rooms across 20 brands addressing the midscale through luxury segments, as of Dec. 31, 2025. Holiday Inn and Holiday Inn Express constitute the largest brand, while Hotel Indigo, Even, Hualuxe, Kimpton, and Voco are newer lifestyle brands experiencing strong demand. The company launched a midscale brand, Avid, in 2017 and closed on a 51% stake in Regent Hotels in 2018. It acquired Six Senses in 2019 and launched another midscale brand, Garner, in 2023, followed by a premium conversion brand, Noted Collections, in 2026. Managed and franchised represent 99% of total rooms. As of Dec. 31, 2025, the Americas represented 52% of total rooms, with Greater China accounting for 20% and Europe, Asia, the Middle East, and Africa making up 28%.
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