ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. InterContinental Hotels Group's annualizedNet Income for the quarter that ended in Dec. 2025 was €494 Mil.
InterContinental Hotels Group's average Total Assets over the quarter that ended in Dec. 2025 was €4,423 Mil. Therefore, InterContinental Hotels Group's annualized ROA % for the quarter that ended in Dec. 2025 was 11.16%.
The historical rank and industry rank for InterContinental Hotels Group's ROA % or its related term are showing as below:
FRA:IC1B'
s ROA % Range Over the Past 10 Years
Min: -5.63 Med: 11.16 Max: 17.55
Current: 15.13
During the past 13 years, InterContinental Hotels Group's highest ROA % was 17.55%. The lowest was -5.63%. And the median was 11.16%.
FRA:IC1B's ROA % is ranked better than 94.99% of 858
companies
in the Travel & Leisure industry
Industry Median: 2.375
vs FRA:IC1B: 15.13
InterContinental Hotels Group (FRA:IC1B) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
InterContinental Hotels Group ROA % Related Terms
InterContinental Hotels Group ROA % 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.
For the Lodging subindustry, InterContinental Hotels Group's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, InterContinental Hotels Group's ROA % distribution charts can be found below:
* The bar in red indicates where InterContinental Hotels Group's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
InterContinental Hotels Group (FRA:IC1B) has a ROA % of 11.16% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on InterContinental Hotels Group and its competitors. This is near median its historical median of 11.16. According to the industry distribution chart, InterContinental Hotels Group ranks #43 out of 858 companies in the Travel & Leisure industry, placing it in the top 5%.
Is InterContinental Hotels Group's ROA % too high?
InterContinental Hotels Group's current ROA % of 11.16% is near median its 10-year median of 11.16. The Travel & Leisure industry median ROA % is 2.38. InterContinental Hotels Group's value of 11.16% is 369.9% above this industry median. Based on the distribution chart, InterContinental Hotels Group ranks #43 out of 858 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 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does InterContinental Hotels Group's ROA % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, InterContinental Hotels Group ranks #43 out of 858 companies for ROA %. This places InterContinental Hotels Group in the top 5% of its industry — outperforming the majority of peers. The industry median ROA % is 2.38. InterContinental Hotels Group's value of 11.16% is 369.9% above this benchmark. While the company's 10-year median is 11.16 vs. the industry median of 2.38, 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 ROA % for a Travel & Leisure company?
The median ROA % among Travel & Leisure companies is 2.38, based on 858 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. InterContinental Hotels Group's current ROA % of 11.16% is 369.9% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on InterContinental Hotels Group and its competitors. For the Travel & Leisure industry, the median ROA % is 2.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. InterContinental Hotels Group's current ROA % is 11.16%, which is near median its own 10-year median of 11.16. 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 €116.91, compared to a current price of €152.00 — trading 30% above its estimated fair value. The current ROA % is 11.16%, which is near median its 10-year median of 11.16 and 369.9% above the Travel & Leisure industry median of 2.38. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For InterContinental Hotels Group (FRA:IC1B), the current ROA % is 11.16% 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 €152.00 is trading 30% above its estimated GF Value™ of €116.91.
GuruFocus considers InterContinental Hotels Group to be Modestly Overvalued.
Key valuation signals for FRA:IC1B:
ROA %: 11.16% (near median its 10-year median of 11.16)
GF Value™: €116.91 vs. price of €152.00 (30% above fair value)
Industry Position: 369.9% above the Travel & Leisure median (#43 of 858)
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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