Holiday Inn owner Intercontinental Hotels Group PLC (LSE:IHG) has seen its market value jump by a third since November and by over 40% since its new chief executive was appointed in July 2023.
Yet, analysts believe a full-year update on Tuesday 20 February will provide new boss Elie Maalouf with a true chance to stamp his mark on the hotelier.
Fourth-quarter revenues are expected to rise by 7.9%, while full-year underlying earnings will tick just over US$1 billion, falling behind on market consensus of US$1.01 billion, analysts at Jefferies said.
However, the true imprint of Maalouf’s tenure is to come from how he sets the company’s strategy for the near future.
Jefferies will be looking at how he plans to grow fees, which come from a jump in RevPAR (revenue per available room), organic net user growth and strategic partnerships.
Non-RevPAR fee growth will also be an area of focus, with the US bank predicting that it can catch up to US peers in this segment.
Rival Marriott saw this channel account for close to 20% of its total fees in 2022.
Sources driving these fees for Marriott included credit cards, timeshares and residential branding charges.
Jefferies is also interested in seeing how Maalouf targets cash generation as it expects to see a consistent rollout of share buybacks during his tenure.
In 2024, the US bank is hoping to see a rollout of a US$750 million buyback, with the potential for a slight increase if there is no macro slowdown.
Despite the list of variables facing Maalouf, Jefferies goes into the update a buyer of IHG, although places its share price target at 6,400p, around a 9% discount to the current price.