Global scale, leading position in the U.S. midscale hotel market, and increasing presence in China. Fee-based, asset-light, franchised, and managed business model limits operating leverage and capital intensity. Expanding portfolio of well-recognized lodging brands. Cyclical industry heavily correlated with overall GDP trends and inbound travel. Exposure to event risks that could discourage travel. Asset disposals continue to reduce the capital intensity of the business. The effect of high shareholder returns on leverage has been partly offset by proceeds from asset disposals. Free operating cash flows (FOCF) surpassed by shareholder returns leading to negative adjusted discretionary cash flows (DCF). The stable outlook on U.K.-based hotelier InterContinental Hotels Group PLC (IHG) reflects Standard&Poor's Ratings Services' view that IHG will report
