Annual Report

Summary of our

Annual Report and Form 20-F 2016

Annual Report
and Form 20-F 2016

Summary of our Annual
Report and Form 20-F 2016

An overview of 2016

Our business and achievements for the year.

From the Chairman

Patrick Cescau, Chairman

The work being done by our colleagues day in, day out, to deliver the real hallmarks of our distinctive brands, and bring each of them to life, is truly outstanding.

Patrick Cescau
Chairman

Chairman’s statementPDF 0.18MB

From the CEO

Richard Solomons, Chief Executive Officer

Underpinning the success of all our brands is a focus on digital leadership. This involves us using new technologies and data to deliver truly relevant experiences.

Richard Solomons
Chief Executive Officer

CEO’s reviewPDF 0.17MB

Our preferred brands

IHG is a brands-led business. We create Great Hotels Guests Love® through our portfolio of complementary and differentiated hotel brands. Our brands are trusted for meeting guests’ needs, for rewarding loyalty and for delivering memorable experiences.

Financial highlights

Group revenue

$1,715m

2015: $1,803m [-4.9%]

Group operating profit

$678m

2015: $1,499m [-54.8%]

Group operating profit before exceptional items

$707m

2015: $680m [+4.0%]

Total gross revenue in IHG’s System

$24.5bn

2015: $24.0bn [+2.1%]

Total underlying operating profit growth

$61m

2015: $67m [+9.5%]

Revenue per available room (RevPAR) growth

+1.8%

2015: [+4.4%]

Underlying fee revenue growth

+4.4%

2015: [+7.7%]

Where we operate

We operate in nearly 100 countries globally.

Revenue 2016

$1,803m

Revenue 2016: Central, 8%; Greater China, 7%; AMEA, 14%; Europe, 13%; Americas: 58%.

Operating Profit

$680m

operating profit: Central, -128m; Greater China,45m; AMEA, 82m; Europe, 75m; Americas: 633m.

Number of rooms

744,368

Number of rooms: AMEA, 10%; Greater China, 12%; Europe, 14%; Americas: 64%.

Our business model

Our portfolio of 12 preferred brands are built on unique customer insights and cater to a broad range of needs. We predominantly franchise our hotel brands to, or manage hotels on behalf of, third-party hotel owners, resulting in an asset-light business model.

4,321

Franchised hotels

(542,650 rooms)

845

Managed hotels

(222,073 rooms)

8

Owned and leased hotels

(2,412 rooms)

Our strategy for high-quality growth

Our strategy is unchanged. Through our Winning 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 of our strategy and a commitment to doing business responsibly, will drive superior shareholder returns.

Doing business responsibly

We genuinely care about the well-being of our guests and colleagues- and the impact we have on local communities and businesses too. Our responsible business culture is embedded throughout our organisation and underpins our entire strategy.

A woman and child throw food into a pond