High travel demand is continuing to drive growth for InterContinental Hotels Group, with the company’s stock price starting 2024 by building on the success in 2023.
While the price rose to $72.95 in June 2021, exceeding the pre-pandemic high of $72.17 in January 2018, it later declined to $47.70 in September 2022. However, it rebounded in 2023, reaching $63.76 to start the year and hitting $70.45 at the end of June.
The upward trend continued recently, with the price rising 4 percent over the last period, from $87.77 on December 11 to $90.91 on January 9. According to Elie Maalouf, IHG Hotels & Resorts CEO, revenue per available rooms increased 10 percent in the third quarter of 2023 over 2022 and 13 percent over 2019.
In the third quarter press release, Maalouf said it marked the fifth quarter of sequential improvement above pre-pandemic levels. He also said occupancy across IHG’s brands, which include Holiday Inn, Atwell Suites and Crowne Plaza, was at 72 percent, just one point behind 2019.
Maalouf said the numbers, “further confirm the near complete return to pre-pandemic levels of demand.”
“Looking further ahead, whilst there are macro-economic uncertainties and some short-term financing challenges holding back new hotel development, I am excited about the future for IHG and the attractive, long-term demand drivers for our markets,” Maalouf said.
Other franchisors experiencing strong stock price growth in 2023 were Red Robin and Wingstop. Red Robin’s price closed at $6.36 to start the year and it ended the year at $11.36, an increase of 123 percent. Wingstop, meanwhile, opened the year at $137.22 and concluded at $256.58, rising 86 percent.
Carrols Restaurant Group, a Burger King and Popeyes franchisee, had the biggest year, with a stock price increase of 479 percent. Carrols began 2023 with a price of $1.53 and ended at $8.21.
For the most recent period on the Scoreboard, top gainers included Xponential Fitness and Rocky Mountain Chocolate Factory. The former’s stock price increased 21 percent, from $9.32 on December 11 to $11.29 on January 9. The latter also had 21 percent growth, with the price increasing from $4.16 in early December to $5.04 on January 9.
The recent increases for each company followed declines in 2023. Xponential’s price closed at $24.69 to start the year, and it ended 2023 at $12.89. Rocky Mountain also had a slight decline through 2023, starting the year at $5.65 and ending at $4.60.
