Annual Report

Summary of our

Annual Report and Form 20-F 2017

Annual Report
and Form 20-F 2017

Summary of our Annual
Report and Form 20-F 2017

An overview of 2017

Our business and achievements for the year.

From the Chairman

Patrick Cescau, Chairman

Our ability to deliver on our proven strategy, focused on guests and owners, laid the foundation for further high-quality growth in 2017, in what was another year of shifting dynamics within the global hospitality sector.

Patrick Cescau

Chairman’s statementPDF 0.21MB

From the CEO

Keith Barr, Chief Executive Officer

In 2017, we delivered strong underlying profit growth and opened our highest number of hotels since 2009, including the most ever in both AMEA and Greater China.

Keith Barr
Chief Executive Officer

CEO’s reviewPDF 0.16MB

Financial highlights

Group revenue


2016: $1,715m (+4.0%)

Group operating profit


2016: $678m (+12.5%)

Group operating profit before exceptional items


2016: $707m (+7.4%)

Total gross revenue in IHG’s System


2016: $24.5bn (+4.9%)

Total underlying operating profit growth


2016: $61m (+8.4%)

Revenue per available room (RevPAR) growth


2016: +1.8%

Underlying fee revenue growth


2016: +4.4%

Where we operate

We operate in nearly 100 countries globally.

Revenue 2017


Revenue 2017: Central, 8%; Greater China, 7%; AMEA, 14%; Europe, 14%; Americas: 57%.

Operating Profit


operating profit: Central, -110m; Greater China, 52m; AMEA, 87m; Europe, 86m; Americas: 644m.

Number of rooms


Number of rooms: AMEA, 11%; Greater China, 13%; Europe, 14%; Americas: 62%.

Our business model

As an asset-light business, we are a manager and franchisor of hotel brands. This means we can focus on growing our fee revenues and fee margins, with limited requirements for capital, an approach that's helped us successfully grow our business and deliver high returns.

The figures below represent the percentage of our operating profit before central overheads.


Fee business


Owned, leased and managed leases

Our strategy for high-quality growth

Our Strategic Model sets out our approach and remains central to our commitment to delivering high-quality, sustainable growth in cash flows and profits over the long term. Through our Strategic Model, we focus on value-creation by building preferred brands, delivering a superior owner proposition, leveraging scale and generating revenue through the lowest-cost, direct channels. We concentrate on a targeted portfolio that, together with disciplined execution and a commitment to doing business responsibly, will drive superior shareholder returns.

Doing business responsibly

Our focus on responsible business is part of everything we do at IHG, helping create a diverse and inclusive culture that embodies our commitment to provide True Hospitality for everyone.

A child drawing with her mother