The broker reduced the target price from 5,000p to 4,300p and lowered the full-year forecast for revenue per room, now expected to decline by 52%.
The Holiday Inn and Crowne Plaza owner has a hotel portfolio that mainly targets domestic travellers and has limited exposure to large groups and conferences, but this is not enough to insulate the bottom line from weakness in demand, Peel Hunt reckons.
“IHG’s business model is intact and we expect a full recovery, eventually,” analysts commented.
“But the recovery is delayed and we believe the share price cannot make progress while the downgrade cycle continues.”
Shares dipped 1% to 4,115p on Monday morning.