Company Overview - Aoris Investment Management released its Q4 2025 investor letter, focusing on high-quality, wealth-creating businesses with a target return of 8–12% p.a. over a 5–7-year market cycle [1] - The fund's Class A (Unhedged) returned –0.5% after fees, while Class C (Hedged) gained 0.1%, both underperforming their respective benchmarks [1] InterContinental Hotels Group PLC (IHG) - InterContinental Hotels Group PLC (NYSE:IHG) is a leading global hospitality company, with a market capitalization of $20.1 billion [2] - The stock closed at $134.32 per share on March 11, 2026, with a one-month return of -7.92% and a 52-week gain of 20.59% [2] - IHG operates under various brands, including Holiday Inn and Crowne Plaza, and has been gaining market share from independent hotels due to its reward programs and consistent service [3] - IHG reported strong results for its September quarter, showing growth in current earnings and a robust pipeline of new hotel openings [3] Hedge Fund Interest - IHG is not among the 40 most popular stocks among hedge funds heading into 2026, with 12 hedge fund portfolios holding IHG at the end of Q4, down from 14 in the previous quarter [4] - While IHG is recognized for its investment potential, certain AI stocks are considered to offer greater upside potential and less downside risk [4]

Core Insights - The overall travel demand is steady globally, with recovery observed after a turbulent period earlier in the year [2][4][5] - The hospitality industry, particularly IHG, has seen growth across all brands in the U.S. for the first half of the year, despite challenges at the lower end of the market [6][7] - China is showing signs of recovery in the hotel market, with expectations for growth in the coming years [9][10][11] Global Economic Context - Economic conditions are improving with stable inflation and interest rates, contributing to positive GDP growth and household income growth [3][5] - The U.S. market is experiencing a thawing of consumer anxiety, which is expected to support economic growth through 2025 and 2026 [5][6] Performance by Region - In the U.S., all brands under IHG reported revenue per available room (RevPAR) growth in the first half of the year [6][7] - China has faced challenges but is expected to see a turnaround, with RevPAR improving in Q2 compared to Q1 and year-over-year [9][10] - The Middle East, Southeast Asia, and India are identified as high-growth markets for the hospitality industry [20][22] Competitive Landscape - The hotel industry remains competitive, with IHG being one of the top three hotel groups globally, holding only 4% of the world's hotel rooms [13][14] - New brand entries in the market are anticipated, but IHG has a strong position to thrive amid competition [12][14] Consumer Behavior Trends - Consumers are increasingly valuing experiences over material goods, which is positively impacting the travel and hospitality sectors [16][17] - Room rates have shown growth in most regions, although not at a rate exceeding inflation [15][16] Employment and Hiring - The hospitality sector continues to be a significant job contributor, with IHG hiring across various regions, including rural areas [18][19] - The current employment market is competitive, but IHG maintains a strong value proposition for employees [19]