Investment management company Vulcan Value Partners recently released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The firm has five strategies, and all gained positive returns and outperformed their respective benchmark indexes in the first quarter. The fund’s Large-Cap Composite returned 14.0% net of fees and expenses, the Small Cap Composite returned 8.1% net, the Focus Composite returned 20.4% net, the Focus Plus composite returned 20.4%, and the All-Cap Composite returned 16.8% net. You can check the top 5 holdings of the fund to know its best picks in 2023.
Vulcan Value Partners highlighted stocks like InterContinental Hotels Group PLC (NYSE:IHG) in the first quarter 2023 investor letter. Headquartered in Windsor, the United Kingdom, InterContinental Hotels Group PLC (NYSE:IHG) owns and operates hotels. On May 4, 2023, InterContinental Hotels Group PLC (NYSE:IHG) stock closed at $69.61 per share. One-month return of InterContinental Hotels Group PLC (NYSE:IHG) was 3.34%, and its shares gained 12.86% of their value over the last 52 weeks. InterContinental Hotels Group PLC (NYSE:IHG) has a market capitalization of $11.963 billion.
Vulcan Value Partners made the following comment about InterContinental Hotels Group PLC (NYSE:IHG) in its Q1 2023 investor letter:
“During the quarter, we purchased InterContinental Hotels Group PLC (NYSE:IHG), a company we have owned in the past. IHG is the world’s third largest hotel chain with more than 6,000 hotels in more than 100 countries across 18 brands, including Holiday Inn & Holiday Inn Express, InterContinental, and Crowne Plaza. IHG has strong brand recognition, the industry’s third largest loyalty program, and global scale. Growth in net rooms is driven by a long-term trend of consolidation around large hotel brands. We admire its asset-light business model where 99% of profits are derived from its managed and franchised hotels, while less than 1% of profits come from its owned and leased hotels portfolio. Long-term revenue per available room (RevPAR) growth is being driven by a rising global middle class with a desire to travel. IHG has a robust pipeline of approximately 280,000 rooms of which 40% are currently under construction. We had the opportunity to purchase IHG again as concerns around a macroeconomic downturn and a long-term impairment of business travel have negatively impacted the company’s stock price. Even after taking these headwinds into account, we believe we own the company with a margin of safety.”
Credit: Park Hotels & Resorts
InterContinental Hotels Group PLC (NYSE:IHG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held InterContinental Hotels Group PLC (NYSE:IHG) at the end of the fourth quarter which was 9 in the previous quarter.
We discussed InterContinental Hotels Group PLC (NYSE:IHG) in another article and shared the list of most valuable hotel companies in the world. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
