Analyst Note
| Dan Wasiolek |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.