InterContinental Earnings: Group and Europe Strength Offset Leisure Moderation and China Weakness

InterContinental Hotels Group’s third-quarter revenue per available room and unit growth of 1.5% and 4.1%, respectively, were largely as we expected. We don’t expect to change our $97/GBX 7,650 fair value estimate meaningfully, other than for exchange-rate and time value changes since our last update. We wouldn’t require much discount to recommend the shares of this brand-advantaged company (primary source of our wide moat rating), but we currently see them as overvalued.