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We do not expect a meaningful change to our $71 and GBX 5,600 per share valuation on InterContinental, as stronger near-term demand is offset by temporary unit growth disruptions, leaving shares undervalued. We calculate industry revenue per available room, or revPAR, will still be several percentage points below its prepandemic normalized trendline in 2022, indicating more pent-up demand remains, which we think the market is underappreciating.
InterContinental Hotels Group operates 884,000 rooms across 16 brands addressing the midscale through luxury segments. Holiday Inn and Holiday Inn Express constitute the largest brand, while Hotel Indigo, Even, Hualuxe, Kimpton, and Voco are newer lifestyle brands experiencing strong demand. The company launched a midscale brand, Avid, in summer 2017 and closed on a 51% stake in Regent Hotels in July 2018. It acquired Six Senses in February 2019. Managed and franchised represent 99% of total rooms. As of Dec. 31, 2021, the Americas represents 57% of total rooms, with Greater China accounting for 18%; Europe, Asia, the Middle East, and Africa make up 25%.
