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(MS) Red Flags for Hotel Flags: Downgrade to UW

IHG has outperformed peers YTD (in USD) and now trades in line despite its weaker RevPAR / system growth. Meanwhile, multiple signals are flashing that the US hotel cycle is peaking. We cut RevPAR forecasts, partly offset by an assumed $500m buyback, but IHG looks fully valued so we move UW.
Download MS_IHG_downgrade26092016.pdf
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laurent@chekroun.com
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