July 2, 2019 / 9:48 AM / 4 months ago

BUZZ-InterContinental: Drops, UBS downgrades on rising headwinds

** InterContinental Hotels Group shares fall 2.7% to 5,178 pence, second biggest losers on FTSE index

** UBS cuts rating on IHG to “sell” from “neutral”

** “While IHG is a best of breed hotelier, we see an unattractive risk/reward for the stock given the recent multiple expansion ahead of slowing RevPAR trends,” says UBS

** UBS flags slowing RevPAR trends and a pipeline which likely creates a further RevPAR headwind ahead for the stock

** IHG, whose 13 brands include Crowne Plaza, Holiday Inn and Hotel Indigo, in May reported a mere 0.3% rise in Q1 room revenue bogged down by weakness in the Greater China region

** UBS estimates about 2% annual growth in revenue and RevPAR in the sector, while the market estimates a growth of 3% (Reporting by Justin George Varghese in Bengaluru)

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