Is IHG.L (InterContinental Hotels Group PLC) Halal or Haram?

Based on our AAOIFI-standard shariah screening, IHG.L is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (24.11% vs ≤33% threshold), interest income ratio (0.94% vs ≤5% threshold), and cash & securities ratio (5.47% vs ≤33% threshold).

InterContinental Hotels Group PLC (IHG) is a global hospitality giant that primarily operates through franchising and managing over 5,900 hotels across brands like Holiday Inn, Crowne Plaza, and InterContinental. Rather than owning the physical buildings, IHG focuses on an asset-light model where it earns fees from hotel owners for using its systems , loyalty programs, and branding. This strategy allows them to scale rapidly across the Americas, Europe, and Asia without the heavy capital expenditure of real estate ownership. For Muslim investors, IHG.L is currently classified as Halal, having passed all four AAOIFI shariah screening criteria. The company successfully meets the financial ratios required for compliance, specifically regarding its debt load and interest-earning cash deposits. This means investors can confidently include this stock in their portfolios, provided they continue to monitor the company's financial health and revenue sources for any significant changes. From a financial perspective, IHG demonstrates strong discipline with a debt-to-market cap ratio of 24.1%, which is well within the acceptable 33% limit set by Islamic scholars. Furthermore, the company's interest income relative to total revenue is extremely low at 0.94%, indicating that the vast majority of their earnings come from legitimate business activities rather than impermissible interest. This low level of impure income simplifies the purification process for investors. While the stock is compliant, investors should remain aware that the broader hospitality industry often involves alcohol and pork sales. Because IHG operates largely as a franchisor, this revenue is often recognized by the individual hotel owners rather than IHG corporate, keeping the company compliant. However, investors should always perform their own due diligence, as business models can shift, potentially impacting the ratio of non-compliant revenue in the future. InterContinental Hotels Group PLC operates in the Consumer Cyclical sector under the Travel Lodging industry and is headquartered in Windsor, GB. The company is led by CEO Elie Wajih Maalouf and employs approximately 12,587 people.

IHG.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. IHG.L passed 4 of these 4 screens.

Although IHG.L passes all shariah screens, it does earn $49.0M in interest income (0.94% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.94 to purify the income.

IHG.L was last screened on 2026-03-01. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.