InterContinental Hotels GroupFRA:IC1B -1.31%91 Interest Coverage is 5.59 as of Dec. 2025, which is 12% below its 10-year median of 6.36. GuruFocus rates FRA:IC1B with a GF Score™ of 91/100 and a GF Value™ of €119.32 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 608 Travel & Leisure companies, InterContinental Hotels Group ranks better than 53.12% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. InterContinental Hotels Group's
Operating Income
for the
six
months ended in Dec. 2025 was €496 Mil. InterContinental Hotels Group's Interest Expense for the
six
months ended in Dec. 2025 was €-89 Mil.
InterContinental Hotels Group's interest coverage for the quarter that ended in Dec. 2025 was 5.59.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for InterContinental Hotels Group's Interest Coverage or its related term are showing as below:
FRA:IC1B'
s Interest Coverage Range Over the Past 10 Years
Min: 1.26 Med: 6.36 Max: 8.99
Current: 6.23
FRA:IC1B's Interest Coverage is ranked better than 53.12% of 608
companies
in the Travel & Leisure industry
Industry Median: 5.35
vs FRA:IC1B: 6.23
InterContinental Hotels Group (FRA:IC1B) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
InterContinental Hotels Group Interest Coverage Related Terms
InterContinental Hotels Group Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
InterContinental Hotels Group Interest Coverage Chart
FRA:IC1B vs MAR, HLT, H: Interest Coverage Comparison
For the Lodging subindustry, InterContinental Hotels Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, InterContinental Hotels Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where InterContinental Hotels Group's Interest Coverage falls into.
InterContinental Hotels Group Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (FRA:IC1B) has a Interest Coverage of 5.59 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on InterContinental Hotels Group and its competitors. This is 12% below median its historical median of 6.36. Over the past decade, InterContinental Hotels Group's Interest Coverage has ranged from 1.26 to 8.99. According to the industry distribution chart, InterContinental Hotels Group ranks #285 out of 608 companies in the Travel & Leisure industry, placing it in the top 46.9%.
Is InterContinental Hotels Group's Interest Coverage too high?
InterContinental Hotels Group's current Interest Coverage of 5.59 is 12% below median its 10-year median of 6.36. Over the past 10 years, this metric has ranged from a low of 1.26 to a high of 8.99. The Travel & Leisure industry median Interest Coverage is 5.35. InterContinental Hotels Group's value of 5.59 is 4.5% above this industry median. Based on the distribution chart, InterContinental Hotels Group ranks #285 out of 608 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, InterContinental Hotels Group has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does InterContinental Hotels Group's Interest Coverage compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, InterContinental Hotels Group ranks #285 out of 608 companies for Interest Coverage. This puts InterContinental Hotels Group in the upper half of its industry. The industry median Interest Coverage is 5.35. InterContinental Hotels Group's value of 5.59 is 4.5% above this benchmark. Historically, InterContinental Hotels Group's own Interest Coverage has ranged from 1.26 to 8.99 over the past decade. While the company's 10-year median is 6.36 vs. the industry median of 5.35, InterContinental Hotels Group has consistently been above 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 Interest Coverage for a Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 608 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. InterContinental Hotels Group's current Interest Coverage of 5.59 is 4.5% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on InterContinental Hotels Group and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. InterContinental Hotels Group's current Interest Coverage is 5.59, which is 12% below median its own 10-year median of 6.36. 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 (FRA:IC1B) is currently considered Modestly Overvalued. The stock's GF Value™ is €119.32, compared to a current price of €151.00 — trading 26.6% above its estimated fair value. The current Interest Coverage is 5.59, which is 12% below median its 10-year median of 6.36 and 4.5% above the Travel & Leisure industry median of 5.35. InterContinental Hotels Group's overall GF Score™ is 91/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For InterContinental Hotels Group (FRA:IC1B), the current Interest Coverage is 5.59 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 (FRA:IC1B) Overvalued in 2026?
Based on GuruFocus' analysis, InterContinental Hotels Group stock appears to be overvalued.
The current stock price of €151.00 is trading 26.6% above its estimated GF Value™ of €119.32.
GuruFocus considers InterContinental Hotels Group to be Modestly Overvalued.
Key valuation signals for FRA:IC1B:
Interest Coverage: 5.59 (12% below median its 10-year median of 6.36)
GF Value™: €119.32 vs. price of €151.00 (26.6% above fair value)
Industry Position: 4.5% above the Travel & Leisure median (#285 of 608)
No single metric tells the full story. See the FRA:IC1B 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%.
91GF Score
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