In the now, InterContinental makes two-thirds of its operating profit in the U.S. market and the market is steadily bouncing back. Hotel room demand is on track to surpass US GDP by nearly four percentage points this year, notably the fastest bounce on record, cites Morgan Stanley. Occupancy rates had reached a low of 56% in 2009 before rising again in January, 2010. 
If the recovery follows previous cycles, the upswing could stick around for around five years. If there is a full recovery, group revenue per available room could grow 40% from trough levels.
Hotel construction remains a grey area in the industry pipeline as bank financing deals fall short and has already been accredited to a drop of nearly a quarter in 2009, according to Credit Suisse, and if the trend continues, we could see a heavy weight settled on more hotel and industry growth.
Still, InterContinental is valued at 9.5 times 2011 forecast Ebitda, a 30% discount to U.S. peers, according to Citigroup. That reflects concerns over cost pressures and the success of its $1 billion Holiday Inn relaunch in the U.S. But if the U.S. market continues its recovery, those concerns will fall away.
