Short Stories: Hotels and Resorts

On Tuesday, InterContinental Hotels Group PLC (IHG) met expectations with its full-year results, but said a sharp deterioration in fourth-quarter trading had accelerated in January, and it sees no improvement in sight.

The operator of Holiday Inn and Crowne Plaza hotels has seen a large amount of short covering, down from 9% of its shares outstanding on loan (%SOOL) to just under 5% now. IHG's share price has fallen from 800bp in September to 500bp now. Previous to these figures, the %SOOL rose from 5% SOOL in late May to 10% during July and August, with investors coming to the trade as the share price began to drop, from the 800p figure mentioned, down to 600p within the space of a month (June 4 to July, as the %SOOL increased).