IHG outlook trimmed as Middle East war weighs on travel demand, ups costs

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UBS has cut its forecasts for Intercontinental Hotels Group PLC (IHG) due to the impact of geopolitical tensions, particularly the Iran war, on global travel demand. While IHG’s US market performance was stronger than expected, this was offset by weaker trends in China, Europe, the Middle East, Asia, and Africa. The bank warns of potential wider economic consequences and disruptions to airline connectivity, though IHG’s significant US revenue provides some resilience.

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