Shares digital

InterContinental Hotels (IHG) 833.5p

The franchised hotel operator has made solid progress in adding new rooms to its portfolio and is on track to meet its target of 50,000-60,000 net new rooms by the end of the year. (Read the full story: www.sharesmagazine.com/node/3304)

Shares says: It will be interesting to see public response to the revamped Holiday Inn brands. This year should also see Hotel Indigo and Staybridge Suite concepts introduced to the UK market. While revenue-per-room figures are up 7%, it is hard to ignore the tougher leisure market conditions. The weak share price in late 2007 suggests the City has little confidence in IHG performing well. Trading updates may generate short-term price strength but this is a target for short selling, which could see the hotelier struggle. Tread cautiously. HOLD

The City - Evolution says: The shift from an asset-intense model to a brand-intense one, a pipeline that should deliver three to four years of growth and low financial leverage makes IHG attractive. The stock has outperformed the market by 10% this year but is still 40% below the summer 2007 peak. BUY