Is INTERCONTINENTAL HOTELS GROUP PLC /NEW/ (IHG) Halal?

NYSE Consumer Cyclical United Kingdom $19.4B
✓ HALAL
Confidence: 95/100
INTERCONTINENTAL HOTELS GROUP PLC /NEW/ (IHG) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 23.2% against the AAOIFI threshold of 30%, INTERCONTINENTAL HOTELS GROUP PLC /NEW/ comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Lodging), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 23.2%
/ 30%
5.6%
/ 30%
3.5%
/ 30%
0.94%
/ 5%
✓ HALAL
DJIM 23.2%
/ 33%
5.6%
/ 33%
3.5%
/ 33%
0.94%
/ 5%
✓ HALAL
MSCI 86.2%
/ 33%
20.7%
/ 33%
13.1%
/ 33%
0.94%
/ 5%
✗ NOT HALAL
S&P 23.2%
/ 33%
5.6%
/ 33%
3.5%
/ 33%
0.94%
/ 5%
✓ HALAL
FTSE 86.2%
/ 33%
20.7%
/ 33%
13.1%
/ 50%
0.94%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
26.7
Forward: 19.5
EPS
$4.86
Dividend Yield
142.0%
Payout: 35.6%
P/B Ratio
-7.1
EV/EBITDA
18.8
EV: $23.0B
Revenue
$5.2B
Growth: 2.7%
Beta
1.1
Average volatility
Current Ratio
1.0

Profitability

Gross Margin 61.7%
Operating Margin 21.6%
Net Margin 14.6%
Return on Assets (ROA) 14.8%

Cash Flow & Balance Sheet

Operating Cash Flow$898M
Free Cash Flow$821M
Total Debt$4.6B
Current Ratio1.0
Total Assets$5.3B

Price & Trading

Last Close$132.47
50-Day MA$137.67
200-Day MA$127.97
Avg Volume264K
Beta1.1
52-Week Range
$94.78
$150.89

About INTERCONTINENTAL HOTELS GROUP PLC /NEW/ (IHG)

CEO
Mr. Elie Wajih Maalouf
Employees
13,049
Sector
Consumer Cyclical
Industry
Lodging
Country
United Kingdom
Exchange
NYSE
Market Cap
$19.4B
Currency
USD

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the United Kingdom, the United States, and internationally. It operates hotels under the Six Senses, Regent, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotel, Hotel Indigo, voco, Ruby, HUALUXE, Crowne Plaza, Iberostar Beachfront Resorts, EVEN Hotels, Holiday Inn Express, Holiday Inn, Garner, avid hotels, Atwell Suites, Staybridge Suites, IHG, Holiday Inn Club Vacations, and Candlewood Suites brand names. The company also provides IHG Rewards loyalty program. InterContinental Hotels Group PLC was formerly known as Six Continents PLC and changed its name to InterContinental Hotels Group PLC in June 2003. The company was founded in 1777 and is headquartered in Windsor, United Kingdom.

Purification Calculator

As a halal stock with 0.94% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is INTERCONTINENTAL HOTELS GROUP PLC /NEW/ (IHG) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), INTERCONTINENTAL HOTELS GROUP PLC /NEW/ is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is INTERCONTINENTAL HOTELS GROUP PLC /NEW/'s debt ratio?

INTERCONTINENTAL HOTELS GROUP PLC /NEW/'s debt ratio is 23.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 86.2%.

Does INTERCONTINENTAL HOTELS GROUP PLC /NEW/ require dividend purification?

Yes, INTERCONTINENTAL HOTELS GROUP PLC /NEW/ has an impermissible income ratio of 0.94%, which means 0.94% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are INTERCONTINENTAL HOTELS GROUP PLC /NEW/'s key financial metrics?

INTERCONTINENTAL HOTELS GROUP PLC /NEW/ has a market capitalization of $19.4B, trailing P/E ratio of 26.7, and revenue of $5.2B. The company maintains a gross margin of 61.7% and a net margin of 14.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.