InterContinental Hotels Group (FRA:IC1B) ROCE %: 35.57% (As of Dec. 2025)


FRA:IC1B InterContinental Hotels Group PLC FRA:IC1B
91 GF Score
Price €152.00
GF Value €116.91
Valuation Modestly Overvalued
! 6 Warning Signs
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What is InterContinental Hotels Group ROCE %?

InterContinental Hotels Group FRA:IC1B -0.65% 91 ROCE % is 35.57% as of Dec. 2025. GuruFocus rates FRA:IC1B with a GF Score™ of 91/100 and a GF Value™ of €116.91 (Modestly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. InterContinental Hotels Group's annualized ROCE % for the quarter that ended in Dec. 2025 was 35.57%.

InterContinental Hotels Group  (FRA:IC1B) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

InterContinental Hotels Group ROCE % Related Terms

InterContinental Hotels Group ROCE % Historical Data

* Premium members only.

The historical data trend for InterContinental Hotels Group's ROCE % can be seen below:

* 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 ROCE % Chart

InterContinental Hotels Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.56 23.73 41.87 39.64 39.67

InterContinental Hotels Group Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 39.52 44.11 38.57 48.69 35.57
FRA:IC1B
91GF Score
InterContinental Hotels Group PLC FRA:IC1B
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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InterContinental Hotels Group ROCE % Calculation

InterContinental Hotels Group's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=1083.726/( ( (4534.34 - 1841.24) + (4564.63 - 1793.4) )/ 2 )
=1083.726/( (2693.1+2771.23)/ 2 )
=1083.726/2732.165
=39.67 %

InterContinental Hotels Group's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=930.86/( ( (4281.246 - 1818.099) + (4564.63 - 1793.4) )/ 2 )
=930.86/( ( 2463.147 + 2771.23 )/ 2 )
=930.86/2617.1885
=35.57 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 35.57% mean?
InterContinental Hotels Group (FRA:IC1B) has a ROCE % of 35.57% as of Dec. 2025.
Is InterContinental Hotels Group's ROCE % too high?
InterContinental Hotels Group's current ROCE % is 35.57%. The Travel & Leisure industry median ROCE % is 6.15. InterContinental Hotels Group's value of 35.57% is 478.4% above this industry median. 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 ROCE % compare to MAR and HLT?
InterContinental Hotels Group's ROCE % of 35.57% can be compared against companies in the Travel & Leisure industry. The industry median ROCE % is 6.15. InterContinental Hotels Group's value of 35.57% is 478.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Travel & Leisure company?
The median ROCE % among Travel & Leisure companies is 6.15, based on 837 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. InterContinental Hotels Group's current ROCE % of 35.57% is 478.4% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Travel & Leisure industry, the median ROCE % is 6.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. InterContinental Hotels Group's current ROCE % is 35.57%. 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 ROCE % is 35.57% and 478.4% above the Travel & Leisure industry median of 6.15. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For InterContinental Hotels Group (FRA:IC1B), the current ROCE % is 35.57% 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:

  • ROCE %: 35.57%
  • GF Value™: €116.91 vs. price of €152.00 (30% above fair value)
  • GF Score™: 91/100 with 6 warning signs
  • Industry Position: 478.4% above the Travel & Leisure median

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

Address 1 Windsor Dials, Arthur Road, Windsor, Berkshire, GBR, SL4 1RS
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€152.00
Price
€116.91
GF Value