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99.1
Final Results
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Financial summary1
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Reported
|
Underlying2
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||||
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2016
|
2015
|
% Change
|
2016
|
2015
|
% Change
|
|
Revenue
|
$1,715m
|
$1,803m
|
-4.9%
|
$1,582m
|
$1,513m
|
4.6%
|
|
Fee Revenue3
|
$1,380m
|
$1,349m
|
2.3%
|
$1,409m
|
$1,349m
|
4.4%
|
|
Operating profit
|
$707m
|
$680m
|
4.0%
|
$702m
|
$641m
|
9.5%
|
|
Adjusted EPS
|
203.3¢
|
174.9¢
|
16.2%
|
203.1¢
|
165.0¢
|
23.1%
|
|
Basic EPS4
|
195.3¢
|
520.0¢
|
(62.4%)
|
|
|
|
|
Total dividend per share
|
94.0¢
|
85.0¢
|
11%
|
|
|
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Net debt
|
$1,506m
|
$529m
|
|
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Richard Solomons, Chief Executive of InterContinental Hotels Group
PLC, said:
|
|
"Our
results clearly demonstrate our strong operational performance and
the success of IHG's long-term strategy, which have delivered a
9.5% increase in underlying profit and a 23% increase in underlying
EPS. Our cash generative business model underpins our
decision to announce a $400 million special dividend and to propose
an 11% increase in the total dividend for the year.
We
continued our focus on enhancing the long-term sustainability of
our competitive advantage by evolving our brand portfolio and by
driving innovation in our digital and loyalty offer. We
rolled out new formats across our Holiday Inn Brand Family which
deliver significant uplifts in guest satisfaction and improved
returns for owners, built momentum for our HUALUXE and EVEN Hotels
brands, and took Kimpton Hotels & Restaurants and Hotel Indigo
into new markets. We also strengthened our loyalty proposition
through initiatives including 'Your Rate' helping to drive a 16%
increase in member enrolments.
The
fundamentals for the hospitality industry remain compelling.
Despite the uncertain environment in some markets, we remain
confident in the outlook for the year ahead, as well as our ability
to deliver sustainable growth into the future."
|
|
Financial Highlights
|
|
●
Strong underlying revenue growth driven by both
RevPAR and rooms
-
Global comparable RevPAR up 1.8% (Q4: 1.7%), led by rate up 1.2%,
and record occupancy levels.
- Net
room growth of 3.1%, including 8.8% in Greater China. 40k room
openings, ~90% in our priority markets.
-
$24.5bn total gross revenue from hotels in IHG's system (up 2%
year-on-year; 4% CER).
●
High quality business model, continuing margin
growth and low capital intensity drives operating cash
flows
-
> 95% profit from the fee business; ~85% of fee revenue linked
directly to hotel revenues.
-
Group fee margin of 48.8%, up 3.3%pts (2.5%pts CER); strong
progression through efficiency improvements.
- Net
capital expenditure of $185m (gross $241m). Focused investments in
brands and new Guest Reservation System, in which we will invest a
further ~$90m in 2017 within existing capex guidance of up to $350m
gross.
●
Commitment to efficient balance sheet and
driving shareholder returns
-
$400m will be returned to shareholders via a special dividend with
share consolidation, to be paid in Q2 2017.
-
Total returns since 2003 of $12.8bn, nearly $5bn of which is from
underlying operations.
-
Year-end net debt:EBITDA of 1.9x, or 2.4x on a proforma basis
assuming payment of the special dividend.
-
Proposed 11% increase in total dividend to 94.0¢ reflects
confidence in our long-term sustainable future growth.
|
|
Strategic progress to enhance our long term competitive
advantage
|
|
●
Strengthening our preferred
brands
-
Expanded our luxury footprint and InterContinental Hotels &
Resorts' position as the largest luxury hotel brand with eight
openings globally, including five in Greater China, and our highest
room signings since 2008.
-
Strengthened our boutique portfolio, with six Kimpton openings
including our first outside the US in Grand Cayman, three EVEN
Hotels openings including two in New York and our first franchise,
and opened our 75th Hotel
Indigo.
-
Progressed the next phase of the Crowne Plaza refresh, announced in
June, to accelerate growth in the Americas supported by $200m
investment over 3 years (~$100m system funded, ~$100m within
existing capex guidance).
-
Continued to roll out leading edge guest experiences for Holiday
Inn Brand Family hotels; new public space designs now in 225
Holiday Inn Express hotels across US and Europe. New room designs
driving guest satisfaction uplifts.
-
Signed 20 Holiday Inn Express hotels in Greater China in 8 months,
under our new tailored franchising model, taking the total signed
for the brand in the region to 47 hotels.
|
|
●
Growing through targeted hotel
distribution
-
Signed 76k rooms into the pipeline, representing over 500 new
hotels, the highest number of deals signed since 2008,
demonstrating owner confidence in our brands.
-
230k pipeline rooms, up 8%; ~ 45% under construction and ~90% in
our ten priority markets.
|
|
●
Driving
revenue delivery through technology and loyalty
-
Industry-leading cloud-based Guest Reservation System remains on
track to begin roll-out in 2017.
-
Digital revenue of $4.3bn, up ~$0.3bn year-on-year, with mobile
delivering over 50% of digital traffic and $1.6bn of gross revenues
globally, and ~60% of direct bookings in Greater
China.
-
Enhanced IHG Rewards Club with the launch of Your Rate, our
preferential member pricing initiative, which has helped to
increase loyalty contribution by 2%pts and driven enrolments up 16%
year-on-year.
|
|
Americas - Rate led US RevPAR increase driving strong profit
growth
|
|
Comparable
RevPAR increased 2.1% (Q4: up 1.5%), driven by 2.0% rate growth. US
RevPAR was up 1.8%, led by Holiday Inn up 2.5% and Kimpton up 2.9%.
Fourth quarter US RevPAR growth of 1.3% continued to be impacted by
our concentration in oil producing markets, where RevPAR was down
6.1%; the remainder of the estate grew 2.2%.
Reported
revenue increased 4% (up 5% at CER) and profit increased 6% (up 7%
at CER).
On an
underlying1 basis, revenue was
up almost 6% and operating profit up almost 8%. Franchise
profit increased 5%, driven by RevPAR up 1.9% and rooms growth of
2.0%, which more than funded additional investment in development
resources. Managed profit includes an unusually high number of
small liquidated damages receipts ($4m total in H2). This was
offset by $8m related to our 20% interest in InterContinental New
York Barclay and the ongoing impact of new supply on RevPAR growth
in New York. We expect a high level of new supply to continue to
impact trading in New York in 2017, and that we will continue to
incur costs relating to the joint venture as the hotel ramps up
post repositioning, although these will largely be offset by
related management fees. Regional overheads declined by $11m
on an underlying basis due to a $10m year-on-year decrease in US
healthcare costs.
Opened
24k rooms (188 hotels), our highest level of openings in 5 years,
with more than half driven by our Holiday Inn Brand
Family. Our continued
focus on maintaining a high-quality estate meant that we removed
15k rooms (103 hotels). We signed 37k rooms (332 hotels),
including 9k rooms (93 hotels) for our extended stay brands, and 2k
rooms (19 hotels) across our boutique brands, including a Kimpton
in Grenada, our first entry into the country.
|
|
Europe - Market outperformance in priority markets and highest
rooms signings for 9 years
|
|
Comparable
RevPAR increased 1.7% (Q4: up 3.1%), driven by rate up 1.4%. UK
RevPAR increased 2.6%, led by a robust fourth quarter (up 4.6%)
which was boosted by a strong end to the year for tourist arrivals
and leisure travel generally. In Germany, RevPAR growth of 6.8%
benefitted from a favourable trade fair calendar. Across the
rest of Europe, RevPAR declined by 0.5%, impacted by challenging
trading conditions in France, Turkey and Belgium.
Reported
revenue declined 14% (10% at CER) and reported operating profit was
down 4% (flat at CER), both impacted by the sale of
InterContinental Paris - Le Grand in 2015.
On an
underlying1 basis, revenue was
up 1% and operating profit was flat. Franchise profit grew
8%, driven by RevPAR up 2.0% and rooms growth of 2.8%.
Managed profit declined by 22% due to difficult trading conditions
for our hotels in Paris and the impact of three hotels in key
cities as reported in our interim results.
Opened
4k rooms (24 hotels) including the 706 room Holiday Inn Kensington
London. We signed almost 10k rooms (60 hotels) into our
system, our highest rooms signings since 2007. This included
a record 17 properties in Germany, a third consecutive record year
for the country, where we now have more than 100 properties open or
in the pipeline.
|
|
AMEA - Solid trading offset by oil markets
|
|
Comparable
RevPAR decreased 0.2% (Q4: flat), with rate declines offset by
occupancy gains. Performance outside the Middle East
continued to be strong with 3.7% RevPAR growth overall. We
continued to outperform the market in India, delivering RevPAR
growth of 14.1%, driven by strong corporate business and inbound
tourism. South East Asia (+2.0%), Australia (+2.9%), and
Japan (+3.6%) saw good trading, the last against tough
comparables. The Middle East continued to be impacted by
declining oil prices, ending the year down 7.0%.
Total
RevPAR was down 2.0% for the year (Q4: down 2.1%) impacted by the
proportion of hotel openings in developing markets (2016: ~60%)
where RevPARs are significantly lower than developed markets.
We expect the proportion of hotels in developing markets to
continue to grow (~65% pipeline vs ~45% system) as we execute our
strategy to grow rapidly in markets where the long term demand
drivers are favourable and where we see the largest opportunities
for growth. This, combined with a number of other
individually small items, means we expect managed profit in 2017 to
be broadly in line with 2016.
Reported
revenues declined 2% (down 3% at CER) with profit down 5% on both
an actual and constant currency basis.
On an
underlying1 basis, revenue was
down 4% and operating profit decreased 4%. Managed profit
increased 8%, excluding the $7m reduction flagged at the half year
results relating to three long-standing contracts being renewed
onto standard market terms and one equity stake
disposal.
We
opened 4k rooms (17 hotels) including two hotels in Singapore, our
first Hotel Indigo and a 451-room Holiday Inn Express, our largest
for the brand in the region. Openings also included our first
Holiday Inn Express in Australia, the first of a larger portfolio
development across Australasia. We signed 11k rooms (42
hotels), and entered into an agreement to develop a portfolio of
EVEN Hotels in Australia and New Zealand.
|
|
Greater China - Market outperformance and rooms growth drive strong
fee revenue increase
|
|
Comparable
RevPAR increased by 2.2%, with growth of 3.9% in mainland China
offset by declines in Hong Kong and Macau. Fourth quarter RevPAR
grew by 3.2% benefitting from 2.8% growth in Hong Kong, the first
positive quarter there since late 2014. Full year growth was
particularly strong in mainland tier 1 cities, up 6.3%, driven by
strong corporate demand, with the rest of the mainland up 2.2%. As
we continued to increase our penetration in less developed cities,
full year total RevPAR declined 3.1%.
Reported
revenue and operating profit declined by 43% (41% at CER) and 36%
(33% at CER) respectively, both affected by the disposal of
InterContinental Hong Kong in 2015.
Underlying1
revenue was up 13% driven by trading outperformance in key cities
and nearly 9% net system growth. Underlying1 operating profit
increased 15%, with ongoing investment in growth initiatives more
than offset by scale efficiencies and strategic cost management.
Opened
8k rooms (29 hotels). We opened five InterContinental Hotels &
Resorts properties including our third in Beijing and our fifth in
Shanghai, now the most in any city globally. We also opened our
fourth HUALUXE hotel. Signed 19k rooms (82 hotels), including 20
franchised Holiday Inn Express hotels since launching the new China
franchise model in May.
|
|
Highly cash generative business with disciplined approach to cost
control and capital allocation
|
|
●
Fee margin growth through strategic cost
management
-
Continued focus on strategic cost management. Reported central
overheads declined $23m, or $12m on a constant currency basis,
benefitting from a $9m increase in central revenues and efficiency
improvements.
-
Group fee margin of 48.8%, increased 3.3%pts (2.5%pts CER).
In 2017, we will leverage scale and control costs to drive fee
margin progression, but at a slower rate than 2016 after 560pts of
margin expansion in the last 3 years.
●
Strong free cash flow generation fuelling
investment
-
Free cash flow of $646m, up 39% year on year (2015: $466m),
including a $95m cash receipt on behalf of the system fund from the
renegotiation of long term partnership agreements.
-
$241m gross capital expenditure in 2016 (2015: $264m) comprised of:
$96m maintenance capex and key money; $40m recyclable investments;
and $105m system funded capital investments, offset by $25m
proceeds from asset recycling and $31m system fund depreciation
received via working capital, resulting in $185m of net
capex.
-
Gross capex guidance unchanged at up
to $350m per annum into the medium term.
●
Efficient balance sheet provides
flexibility
-
Financial position remains robust, with an on-going commitment to
an investment grade credit rating by maintaining our net
debt:EBITDA ratio at 2.0x to 2.5x.
-
Issued a £350m, 10-year bond in August 2016, at a 2.125%
coupon rate, the lowest funding rate IHG has achieved in the
Sterling bond market.
-
Year-end net debt of $1,506m (including $227m finance lease on
InterContinental Boston), up $977m on 2015 due to the $1.5bn
special dividend paid in May 2016. Closing net debt is $205m
lower due to the impact of exchange rates.
●
Shareholder returns demonstrating confidence in
future growth prospects
-
Proposed 11% increase in the final dividend to 64.0¢, taking
the total dividend for the year up 11% to 94.0¢, reflecting
our confident outlook on our ability to continue delivering
sustainable growth into the future.
-
Proposed $400m special dividend with share consolidation, equating
to 202.5¢ per share.
|
|
Foreign exchange - volatile currency markets impact reported
revenues and profit
|
|
Cost
benefits from the devaluation of sterling against the dollar were
broadly offset by revenue impacts of the strong dollar against a
number of currencies, reducing reported profit by $1m.
If the
closing December 2016 exchange rates had existed through the first
half of 2016, reported operating profit for that period would have
reduced by $1m.
A full
breakdown of constant currency vs. actual currency RevPAR by region
is set out in Appendix 2.
|
|
Interest, tax and exceptional items
|
|
Interest: Net financial expenses remained flat at $87m
principally due to the devaluation of sterling against the dollar
offsetting interest related to the £350m bond raised in August
2016. Annualised bond interest costs will reduce in 2017 following
the expiry of the £250m, 6.0% coupon rate bond in December
2016.
|
|
Tax: Effective rate for 2016 was 30% (2015: 30%). 2017
tax rate expected to be low 30s.
Exceptional operating items: Exceptional operating
items of $29m include $13m related to the Kimpton integration and
$16m of impairment charges related to the Barclay associate which
owns InterContinental New York Barclay.
|
|
Appendix 1: RevPAR Movement Summary
|
||||||
|
|
Full Year 2016
|
Q4 2016
|
||||
|
RevPAR
|
Rate
|
Occ.
|
RevPAR
|
Rate
|
Occ.
|
|
|
Group
|
1.8%
|
1.2%
|
0.4pts
|
1.7%
|
1.0%
|
0.5pts
|
|
Americas
|
2.1%
|
2.0%
|
0.1pts
|
1.5%
|
1.6%
|
(0.1)pts
|
|
Europe
|
1.7%
|
1.4%
|
0.2pts
|
3.1%
|
1.1%
|
1.4pts
|
|
AMEA
|
(0.2)%
|
(0.8)%
|
0.5pts
|
0.0%
|
(0.4)%
|
0.3pts
|
|
G.
China
|
2.2%
|
(2.2)%
|
2.7pts
|
3.2%
|
(0.7)%
|
2.5pts
|
|
Appendix 2: Comparable RevPAR movement at constant exchange rates
(CER) vs. actual exchange rates (AER)
|
|
||||||
|
|
Full Year 2016
|
Q4 2016
|
|||||
|
CER
|
AER
|
Difference
|
CER
|
AER
|
Difference
|
||
|
Group
|
1.8%
|
0.0%
|
1.8pts
|
1.7%
|
(0.6)%
|
2.3pts
|
|
|
Americas
|
2.1%
|
1.4%
|
0.7pts
|
1.5%
|
0.9%
|
0.6pts
|
|
|
Europe
|
1.7%
|
(4.4)%
|
6.1pts
|
3.1%
|
(6.6)%
|
9.7pts
|
|
|
AMEA
|
(0.2)%
|
0.0%
|
(0.2)pts
|
0.0%
|
0.6%
|
(0.6)pts
|
|
|
G.
China
|
2.2%
|
(2.4)%
|
4.6pts
|
3.2%
|
(2.1)%
|
5.3pts
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 3: Full Year System & Pipeline Summary
(rooms)
|
|
||||||||
|
|
System
|
Pipeline
|
|||||||
|
Openings
|
Removals
|
Net
|
Total
|
YoY%
|
Signings
|
Total
|
|||
|
Group
|
40,134
|
(17,367)
|
22,767
|
767,135
|
3.1%
|
75,812
|
230,076
|
||
|
Americas
|
23,535
|
(15,117)
|
8,418
|
487,993
|
1.8%
|
37,038
|
102,451
|
||
|
Europe
|
4,188
|
(830)
|
3,358
|
110,069
|
3.1%
|
9,554
|
23,954
|
||
|
AMEA
|
4,473
|
(995)
|
3,478
|
76,051
|
4.8%
|
10,551
|
39,643
|
||
|
G.
China
|
7,938
|
(425)
|
7,513
|
93,022
|
8.8%
|
18,669
|
64,028
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 4: Full Year financial headlines
|
|
|||||||||||
|
Operating Profit $m
|
Total
|
Americas
|
Europe
|
AMEA
|
G. China
|
Central
|
||||||
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
|
|
Franchised
|
693
|
669
|
600
|
575
|
78
|
77
|
12
|
12
|
3
|
5
|
-
|
-
|
|
Managed
|
239
|
241
|
64
|
64
|
22
|
28
|
89
|
90
|
64
|
59
|
-
|
-
|
|
Owned
& leased
|
26
|
57
|
24
|
24
|
-
|
1
|
2
|
3
|
-
|
29
|
-
|
-
|
|
Regional
overheads
|
(123)
|
(136)
|
(55)
|
(66)
|
(25)
|
(28)
|
(21)
|
(19)
|
(22)
|
(23)
|
-
|
-
|
|
Profit
pre central overheads
|
835
|
831
|
633
|
597
|
75
|
78
|
82
|
86
|
45
|
70
|
-
|
-
|
|
Central
overheads
|
(128)
|
(151)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(128)
|
(151)
|
|
Operating profit before exceptional items
|
707
|
680
|
633
|
597
|
75
|
78
|
82
|
86
|
45
|
70
|
(128)
|
(151)
|
|
Exceptional
items
|
(29)
|
819
|
(29)
|
(41)
|
-
|
175
|
-
|
(2)
|
-
|
698
|
-
|
(11)
|
|
Total operating profit
|
678
|
1,499
|
604
|
556
|
75
|
253
|
82
|
84
|
45
|
768
|
(128)
|
(162)
|
|
|
Total***
|
Americas
|
Europe
|
AMEA
|
G. China
|
|||||
|
Reported
|
Actual*
|
CER**
|
Actual*
|
CER**
|
Actual*
|
CER**
|
Actual*
|
CER**
|
Actual*
|
CER**
|
|
Growth/
(decline)
|
4%
|
4%
|
6%
|
7%
|
(4)%
|
0%
|
(5)%
|
(5)%
|
(36)%
|
(33)%
|
|
Underlying****
|
Total***
|
Americas
|
Europe
|
AMEA
|
G. China
|
|
Growth/
(decline)
|
10%
|
8%
|
0%
|
(4)%
|
15%
|
|
Exchange rates:
|
GBP:USD
|
EUR:USD
|
* US
dollar actual currency
|
|
2016
|
0.74
|
0.90
|
**
Translated at constant 2015 exchange rates
|
|
2015
|
0.65
|
0.90
|
***
After central overheads
|
|
|
|
|
**** At
CER and excluding: owned asset disposals, results from managed
lease hotels and significant liquidated damages (see below for
definitions)
|
|
Appendix 7: Definitions
|
|
CER: constant exchange rates with 2015 exchange rates
applied to 2016.
Comparable RevPAR: Revenue per available room for hotels
that have traded for all of 2015 and 2016, reported at
CER.
Fee revenue: Group revenue excluding owned & leased
hotels, managed leases and significant liquidated
damages.
Fee margin: adjusted for owned and leased hotels, managed
leases, and significant liquidated damages.
Managed lease hotels: properties structured for legal
reasons as operating leases but with the same characteristics as
management contracts
Americas:
Revenue 2016 $34m; 2015 $38m; EBIT 2016 $nil, 2015 $nil.
Europe: Revenue 2016 $77m; 2015 $75m; EBIT 2016 $2m, 2015
$1m. AMEA: Revenue 2016 $51m; 2015 $46m; EBIT 2016 $5m, 2015
$5m.
Owned asset disposals: InterContinental Hong Kong was sold
on 30 September 2015 (2016: $nil revenue and $nil EBIT, 2015: $98m
revenue and $29m EBIT), InterContinental Paris - Le Grand was sold
on 20 May 2015 (2016: $nil revenue and $nil EBIT, 2015: $30m
revenue and $1m EBIT).
Significant liquidated damages: $nil in 2016, $3m in 2015
($3m Americas managed in Q2).
Total gross revenue: total rooms revenue from franchised
hotels and total hotel revenue from managed, owned and leased
hotels. Other than owned and leased hotels, it is not revenue
attributable to IHG, as it is derived mainly from hotels owned by
third parties.
Total RevPAR: Revenue
per available room including hotels that have opened or exited in
either 2015 or 2016, reported at CER.
|
|
Appendix 8: Investor information for proposed 2016 final
dividend
|
|||||
|
Ex-dividend date:
|
4 May
2017
|
Record date:
|
5 May
2017
|
Payment date:
|
22 May
2017
|
|
Dividend payment:
|
ADRs:
64.0 cents per ADR; The corresponding amount in Pence Sterling per
ordinary share will be announced on 11 May 2017, calculated based
on the average of the
market exchange rates for the three days commencing 8 May
2017.
|
||||
|
Appendix 9: Investor information for proposed special
dividend
|
|||||
|
Ex-dividend date:
|
8 May
2017
|
Record date:
|
5 May
2017
|
Payment date:
|
22 May
2017
|
|
Dividend payment:
|
ADRs:202.5
cents per ADR. The corresponding amount in Pence Sterling per
ordinary share will be announced on 11 May 2017, calculated based
on the average of the
market exchange rates for the three days commencing 8 May
2017.
|
||||
|
For further information, please contact:
|
||
|
Investor
Relations (Heather Wood; Adam Smith; Neeral Morzaria):
|
+44
(0)1895 512 176
|
+44
(0)7808 098 724
|
|
Media
Relations (Yasmin Diamond; Zoë Bird):
|
+44
(0)1895 512 008
|
+44
(0)7736 746 167
|
|
|
|
|
|
Presentation for Analysts and Shareholders:
A
presentation with Richard Solomons, Chief Executive Officer and
Paul Edgecliffe-Johnson, Chief Financial Officer will commence at
9:30am London time on 21 February at Goldman Sachs, Rivercourt, 120
Fleet Street, London, EC4A 2BE. There will be an opportunity
to ask questions. The presentation will conclude at
approximately 10:30am.
There will be a live audio webcast of the results presentation on
the web address www.ihgplc.com/prelimswebcast.
The archived webcast of the presentation is expected to be on this
website later on the day of the results and will remain on it for
the foreseeable future. There will also be a live dial-in
facility:
|
||
|
UK
toll:
UK toll
free:
US
toll:
Passcode:
|
+44
(0)20 7108 6248
0800
279 3953
+1 210
795 1098
IHG
Investor
|
|
|
A
replay of the conference call will also be available following the
event - details are below.
|
||
|
Replay:
Pin:
|
+1 866
358 4517
2021
|
|
|
US conference call and Q&A:
There
will also be a conference call, primarily for US investors and
analysts, at 9:00am New York Time on 21 February with Richard
Solomons, Chief Executive Officer and Paul Edgecliffe-Johnson,
Chief Financial Officer. There will be an opportunity to ask
questions.
|
||
|
UK
toll:
US
toll:
US toll
free:
Passcode:
|
+44
(0)20 7108 6248
+1 210
795 1098
+1 866
803 2143
IHG
Investor
|
|
|
A
replay of the conference call will also be available following the
event - details are below.
|
||
|
Replay:
Pin:
|
+1 800
839 1335
0228
|
|
|
Website:
The
full release and supplementary data will be available on our
website from 7:00am (London time) on 21 February. The web address
is www.ihgplc.com/prelims17.
|
||
|
Notes to Editors:
IHG® (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global
organisation with a broad portfolio of hotel brands,
including InterContinental® Hotels
& Resorts,
Kimpton® Hotels
& Restaurants,
Hotel
Indigo®,
EVEN®
Hotels, HUALUXE® Hotels and
Resorts, Crowne Plaza® Hotels &
Resorts, Holiday Inn® Hotels &
Resorts, Holiday Inn
Express®,
Staybridge
Suites® and
Candlewood
Suites®.
IHG franchises, leases, manages or owns nearly 5,200 hotels and
770,000 guest rooms in almost 100 countries, with nearly 1,500
hotels in its development pipeline. IHG also manages
IHG® Rewards
Club, the world's first and
largest hotel loyalty programme, with more than 100 million
enrolled members worldwide.
InterContinental Hotels Group PLC is the Group's holding company and is
incorporated in Great Britain and registered in England and Wales.
More than 350,000 people work across IHG's hotels and corporate
offices globally.
Visit www.ihg.com for hotel information and reservations and
www.ihgrewardsclub.com
for more on IHG Rewards Club. For our
latest news, visit: www.ihgplc.com/media
and follow us on social media
at: www.twitter.com/ihg,
www.facebook.com/ihg
and www.youtube.com/ihgplc.
|
||
|
Cautionary note regarding forward-looking statements:
This
announcement contains certain forward-looking statements as defined
under United States law (Section 21E of the Securities Exchange Act
of 1934) and otherwise. These forward-looking statements can
be identified by the fact that they do not relate only to
historical or current facts. Forward-looking statements often
use words such as 'anticipate', 'target', 'expect', 'estimate',
'intend', 'plan', 'goal', 'believe' or other words of similar
meaning. These statements are based on assumptions and
assessments made by InterContinental Hotels Group PLC's management
in light of their experience and their perception of historical
trends, current conditions, expected future developments and other
factors they believe to be appropriate. By their nature,
forward-looking statements are inherently predictive, speculative
and involve risk and uncertainty. There are a number of
factors that could cause actual results and developments to differ
materially from those expressed in or implied by, such
forward-looking statements. The main factors that could
affect the business and the financial results are described in the
'Risk Factors' section in the current InterContinental Hotels Group
PLC's Annual report and Form 20-F filed with the United States
Securities and Exchange Commission.
|
||
|
|
12 months ended 31 December
|
|||
|
Group results
|
2016
|
2015
|
%
|
|
|
|
$m
|
$m
|
change
|
|
|
Revenue
|
|
|
|
|
|
|
Americas
|
993
|
955
|
4.0
|
|
|
Europe
|
227
|
265
|
(14.3)
|
|
|
AMEA
|
237
|
241
|
(1.7)
|
|
|
Greater
China
|
117
|
207
|
(43.5)
|
|
|
Central
|
141
|
135
|
4.4
|
|
|
|
____
|
____
|
___
|
|
|
1,715
|
1,803
|
(4.9)
|
|
|
|
____
|
____
|
___
|
|
|
Operating profit before exceptional items
|
|
|
|
|
|
|
Americas
|
633
|
597
|
6.0
|
|
|
Europe
|
75
|
78
|
(3.8)
|
|
|
AMEA
|
82
|
86
|
(4.7)
|
|
|
Greater
China
|
45
|
70
|
(35.7)
|
|
|
Central
|
(128)
|
(151)
|
15.2
|
|
|
|
____
|
____
|
___
|
|
|
707
|
680
|
4.0
|
|
|
Exceptional
operating items
|
(29)
|
819
|
(103.5)
|
|
|
|
___
|
___
|
___
|
|
|
Operating
profit
|
678
|
1,499
|
(54.8)
|
|
|
Net
financial expenses
|
(87)
|
(87)
|
-
|
|
|
|
___
|
___
|
___
|
|
|
Profit
before tax
|
591
|
1,412
|
(58.1)
|
|
|
|
___
|
___
|
___
|
|
|
Earnings per ordinary share
|
|
|
|
|
|
|
Basic
|
195.3¢
|
520.0¢
|
(62.4)
|
|
|
Adjusted
|
203.3¢
|
174.9¢
|
16.2
|
|
|
|
|
|
|
|
Average US dollar to sterling exchange rate
|
$1 : £0.74
|
$1 :
£0.65
|
13.8
|
|
|
|
12 months ended 31 December
|
||
|
|
2016
|
2015
|
%
|
|
Global total gross revenue
|
$bn
|
$bn
|
change
|
|
|
|
|
|
|
InterContinental
|
4.6
|
4.5
|
2.2
|
|
Kimpton
|
1.1
|
1.1
|
-
|
|
Crowne
Plaza
|
4.1
|
4.2
|
(2.4)
|
|
Hotel
Indigo
|
0.4
|
0.3
|
33.3
|
|
Holiday
Inn
|
6.2
|
6.2
|
-
|
|
Holiday
Inn Express
|
6.3
|
6.1
|
3.3
|
|
Staybridge
Suites
|
0.8
|
0.8
|
-
|
|
Candlewood
Suites
|
0.7
|
0.7
|
-
|
|
Other
brands
|
0.3
|
0.1
|
200.0
|
|
|
____
|
____
|
____
|
|
Total
|
24.5
|
24.0
|
2.1
|
|
|
____
|
____
|
____
|
|
|
Hotels
|
Rooms
|
|||
|
Global hotel and room count
at 31 December
|
2016
|
Change
over
2015
|
2016
|
Change
over
2015
|
|
|
|
|
|
|
|
|
|
Analysed
by brand
|
|
|
|
|
|
|
|
InterContinental
|
187
|
3
|
63,650
|
1,610
|
|
|
Kimpton
|
61
|
-
|
11,238
|
262
|
|
|
HUALUXE
|
4
|
1
|
1,096
|
298
|
|
|
Crowne
Plaza
|
408
|
2
|
113,803
|
519
|
|
|
Hotel
Indigo
|
75
|
10
|
8,905
|
1,241
|
|
|
EVEN
Hotels
|
6
|
3
|
1,010
|
564
|
|
|
Holiday
Inn1
|
1,241
|
15
|
231,756
|
3,656
|
|
|
Holiday
Inn Express
|
2,497
|
72
|
247,009
|
10,603
|
|
|
Staybridge
Suites
|
236
|
16
|
25,610
|
1,646
|
|
|
Candlewood
Suites
|
362
|
21
|
34,192
|
1,864
|
|
|
Other
|
97
|
(1)
|
28,866
|
504
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
5,174
|
142
|
767,135
|
22,767
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
|
Franchised
|
4,321
|
102
|
542,650
|
11,902
|
|
|
Managed
|
845
|
39
|
222,073
|
10,670
|
|
|
Owned
and leased
|
8
|
1
|
2,412
|
195
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
5,174
|
142
|
767,135
|
22,767
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
|
Hotels
|
Rooms
|
|||
|
Global pipeline
at 31 December
|
2016
|
Change
over
2015
|
2016
|
Change
over
2015
|
|
|
|
|
|
|
|
|
|
Analysed
by brand
|
|
|
|
|
|
|
|
InterContinental
|
62
|
10
|
17,480
|
1,804
|
|
|
Kimpton
|
18
|
-
|
3,098
|
(268)
|
|
|
HUALUXE
|
22
|
1
|
6,956
|
324
|
|
|
Crowne
Plaza
|
90
|
6
|
24,536
|
1,355
|
|
|
Hotel
Indigo
|
75
|
12
|
10,593
|
1,385
|
|
|
EVEN
Hotels
|
6
|
(2)
|
780
|
(482)
|
|
|
Holiday
Inn1
|
261
|
5
|
52,678
|
474
|
|
|
Holiday
Inn Express
|
676
|
74
|
83,882
|
8,277
|
|
|
Staybridge
Suites
|
140
|
26
|
15,321
|
2,680
|
|
|
Candlewood
Suites
|
108
|
10
|
9,604
|
884
|
|
|
Other
|
12
|
(2)
|
5,148
|
(273)
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
1,470
|
140
|
230,076
|
16,160
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
|
Franchised
|
1,039
|
134
|
117,694
|
15,525
|
|
|
Managed
|
431
|
7
|
112,382
|
837
|
|
|
Owned
and Leased
|
-
|
(1)
|
-
|
(202)
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
1,470
|
140
|
230,076
|
16,160
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
|
12 months ended 31 December
|
||||
|
|
2016
|
2015
|
%
|
||
|
Americas results
|
$m
|
$m
|
change
|
||
|
|
|
|
|
||
|
Revenue
|
|
|
|
||
|
|
Franchised
|
685
|
661
|
3.6
|
|
|
|
Managed
|
172
|
166
|
3.6
|
|
|
|
Owned
and leased
|
136
|
128
|
6.3
|
|
|
|
____
|
____
|
____
|
||
|
Total
|
|
993
|
955
|
4.0
|
|
|
|
____
|
____
|
____
|
||
|
Operating profit before exceptional items
|
|
|
|
||
|
|
Franchised
|
600
|
575
|
4.3
|
|
|
|
Managed
|
64
|
64
|
-
|
|
|
|
Owned
and leased
|
24
|
24
|
-
|
|
|
|
|
____
|
____
|
____
|
|
|
|
688
|
663
|
3.8
|
||
|
Regional
overheads
|
(55)
|
(66)
|
16.7
|
||
|
|
____
|
____
|
____
|
||
|
|
633
|
597
|
6.0
|
||
|
Exceptional
items
|
(29)
|
(41)
|
29.3
|
||
|
|
____
|
____
|
____
|
||
|
Operating
profit
|
|
604
|
556
|
8.6
|
|
|
|
____
|
____
|
____
|
||
|
|
|
|
|
|
|
|
Americas Comparable RevPAR movement on previous year
|
12 months ended
31 December
2016
|
|
|
|
|
|
|
Franchised
|
|
|
|
|
Crowne
Plaza
|
1.5%
|
|
|
Holiday
Inn
|
2.6%
|
|
|
Holiday
Inn Express
|
1.7%
|
|
|
All
brands
|
1.9%
|
|
Managed
|
|
|
|
|
InterContinental
|
2.7%
|
|
|
Kimpton
|
2.9%
|
|
|
Crowne
Plaza
|
5.7%
|
|
|
Holiday
Inn
|
4.9%
|
|
|
Staybridge
Suites
|
5.3%
|
|
|
Candlewood
Suites
|
1.2%
|
|
|
All
brands
|
3.2%
|
|
Owned
and leased
|
|
|
|
|
EVEN
Hotels
|
15.5%
|
|
|
All
brands
|
4.0%
|
|
|
Hotels
|
Rooms
|
|||
|
Americas hotel and room count
at 31 December
|
2016
|
Change
over
2015
|
2016
|
Change
over
2015
|
|
|
|
|
|
|
|
|
|
Analysed
by brand
|
|
|
|
|
|
|
|
InterContinental
|
48
|
(2)
|
16,408
|
(701)
|
|
|
Kimpton
|
61
|
-
|
11,238
|
262
|
|
|
Crowne
Plaza
|
164
|
(8)
|
44,116
|
(2,200)
|
|
|
Hotel
Indigo
|
46
|
6
|
5,932
|
861
|
|
|
EVEN
Hotels
|
6
|
3
|
1,010
|
564
|
|
|
Holiday
Inn1
|
774
|
2
|
136,744
|
749
|
|
|
Holiday
Inn Express
|
2,154
|
48
|
192,371
|
5,399
|
|
|
Staybridge
Suites
|
226
|
15
|
24,185
|
1,523
|
|
|
Candlewood
Suites
|
362
|
21
|
34,192
|
1,864
|
|
|
Other
|
84
|
-
|
21,797
|
97
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
3,925
|
85
|
487,993
|
8,418
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
|
Franchised
|
3,633
|
85
|
430,866
|
8,636
|
|
|
Managed
|
286
|
(1)
|
55,302
|
(413)
|
|
|
Owned
and leased
|
6
|
1
|
1,825
|
195
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
3,925
|
85
|
487,993
|
8,418
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
|
Hotels
|
Rooms
|
|||
|
Americas pipeline
at 31 December
|
2016
|
Change
over
2015
|
2016
|
Change
over
2015
|
|
|
|
|
|
|
|
|
|
Analysed
by brand
|
|
|
|
|
|
|
|
InterContinental
|
7
|
3
|
2,532
|
987
|
|
|
Kimpton
|
17
|
(1)
|
2,949
|
(417)
|
|
|
Crowne
Plaza
|
17
|
2
|
3,286
|
796
|
|
|
Hotel
Indigo
|
32
|
2
|
3,965
|
(59)
|
|
|
EVEN
Hotels
|
6
|
(2)
|
780
|
(482)
|
|
|
Holiday
Inn1
|
128
|
3
|
17,304
|
(899)
|
|
|
Holiday
Inn Express
|
488
|
39
|
46,796
|
2,851
|
|
|
Staybridge
Suites
|
131
|
26
|
13,896
|
2,666
|
|
|
Candlewood
Suites
|
108
|
10
|
9,604
|
884
|
|
|
Other
|
11
|
(2)
|
1,339
|
(260)
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
945
|
80
|
102,451
|
6,067
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
|
Franchised
|
897
|
88
|
93,295
|
7,432
|
|
|
Managed
|
48
|
(7)
|
9,156
|
(1,163)
|
|
|
Owned
and leased
|
-
|
(1)
|
-
|
(202)
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
945
|
80
|
102,451
|
6,067
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
|
12 months ended 31 December
|
|
|||||||||
|
|
2016
|
2015
|
%
|
|
|||||||
|
Europe results
|
$m
|
$m
|
change
|
|
|||||||
|
|
|
|
|
|
|||||||
|
Revenue
|
|
|
|
|
|||||||
|
|
Franchised
|
102
|
104
|
(1.9)
|
|
||||||
|
|
Managed
|
125
|
131
|
(4.6)
|
|
||||||
|
|
Owned
and leased
|
-
|
30
|
(100.0)
|
|
||||||
|
|
____
|
____
|
____
|
|
|||||||
|
Total
|
|
227
|
265
|
(14.3)
|
|
||||||
|
|
____
|
____
|
____
|
|
|||||||
|
Operating profit before exceptional items
|
|
|
|
|
|||||||
|
|
Franchised
|
78
|
77
|
1.3
|
|
||||||
|
|
Managed
|
22
|
28
|
(21.4)
|
|
||||||
|
|
Owned
and leased
|
-
|
1
|
(100.0)
|
|
||||||
|
|
|
____
|
____
|
____
|
|
||||||
|
|
100
|
106
|
(5.7)
|
|
|||||||
|
Regional
overheads
|
(25)
|
(28)
|
10.7
|
|
|||||||
|
|
____
|
____
|
____
|
|
|||||||
|
|
75
|
78
|
(3.8)
|
|
|||||||
|
Exceptional
items
|
-
|
175
|
(100.0)
|
|
|||||||
|
|
____
|
____
|
____
|
|
|||||||
|
Operating
profit
|
|
75
|
253
|
(70.4)
|
|
||||||
|
|
____
|
____
|
____
|
|
|||||||
|
Europe comparable RevPAR movement on previous year
|
12 months ended
31 December
2016
|
||||||||||
|
|
|
||||||||||
|
Franchised
|
|
||||||||||
|
|
All
brands
|
2.0%
|
|||||||||
|
|
|
|
|||||||||
|
Managed
|
|
||||||||||
|
|
All
brands
|
(0.3)%
|
|||||||||
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotels
|
Rooms
|
|||
|
Europe hotel and room count
at 31 December
|
2016
|
Change
over
2015
|
2016
|
Change
over
2015
|
|
|
|
|
|
|
|
|
|
Analysed
by brand
|
|
|
|
|
|
|
|
InterContinental
|
31
|
(1)
|
9,724
|
(162)
|
|
|
Crowne
Plaza
|
92
|
4
|
20,887
|
618
|
|
|
Hotel
Indigo
|
21
|
2
|
1,910
|
120
|
|
|
Holiday
Inn1
|
291
|
6
|
47,829
|
1,679
|
|
|
Holiday
Inn Express
|
234
|
6
|
28,578
|
1,053
|
|
|
Staybridge
Suites
|
7
|
1
|
1,000
|
123
|
|
|
Other
|
1
|
(1)
|
141
|
(73)
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
677
|
17
|
110,069
|
3,358
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
|
Franchised
|
629
|
14
|
97,030
|
2,620
|
|
|
Managed
|
48
|
3
|
13,039
|
738
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
677
|
17
|
110,069
|
3,358
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
|
Hotels
|
Rooms
|
|||
|
Europe pipeline
at 31 December
|
2016
|
Change
over
2015
|
2016
|
Change
over
2015
|
|
|
|
|
|
|
|
|
|
Analysed
by brand
|
|
|
|
|
|
|
|
InterContinental
|
6
|
1
|
813
|
(69)
|
|
|
Kimpton
|
1
|
1
|
149
|
149
|
|
|
Crowne
Plaza
|
14
|
3
|
3,185
|
512
|
|
|
Hotel
Indigo
|
18
|
7
|
2,264
|
861
|
|
|
Holiday
Inn
|
35
|
(2)
|
7,511
|
(323)
|
|
|
Holiday
Inn Express
|
58
|
13
|
9,395
|
2,197
|
|
|
Staybridge
Suites
|
5
|
1
|
637
|
126
|
|
|
Other
|
-
|
-
|
-
|
(31)
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
137
|
24
|
23,954
|
3,422
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
|
Franchised
|
111
|
23
|
17,908
|
3,781
|
|
|
Managed
|
26
|
1
|
6,046
|
(359)
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
137
|
24
|
23,954
|
3,422
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
|
12 months ended 31 December
|
|
||||||
|
|
2016
|
2015
|
%
|
|
||||
|
AMEA results
|
$m
|
$m
|
change
|
|
||||
|
|
|
|
|
|
||||
|
Revenue
|
|
|
|
|
||||
|
|
Franchised
|
16
|
16
|
-
|
|
|||
|
|
Managed
|
184
|
189
|
(2.6)
|
|
|||
|
|
Owned
and leased
|
37
|
36
|
2.8
|
|
|||
|
|
|
____
|
____
|
____
|
|
|||
|
Total
|
|
237
|
241
|
(1.7)
|
|
|||
|
|
____
|
____
|
____
|
|
||||
|
Operating profit before exceptional items
|
|
|
|
|
||||
|
|
Franchised
|
12
|
12
|
-
|
|
|||
|
|
Managed
|
89
|
90
|
(1.1)
|
|
|||
|
|
Owned
and leased
|
2
|
3
|
(33.3)
|
|
|||
|
|
|
____
|
____
|
____
|
|
|||
|
|
103
|
105
|
(1.9)
|
|
||||
|
Regional
overheads
|
(21)
|
(19)
|
(10.5)
|
|
||||
|
|
____
|
____
|
____
|
|
||||
|
|
82
|
86
|
(4.7)
|
|
||||
|
Exceptional
items
|
-
|
(2)
|
100.0
|
|
||||
|
|
____
|
____
|
____
|
|
||||
|
Operating
profit
|
82
|
84
|
(2.4)
|
|
||||
|
|
____
|
____
|
____
|
|
||||
|
AMEA comparable RevPAR movement on previous year
|
12 months ended
31 December
2016
|
|||||||
|
|
|
|||||||
|
Franchised
|
|
|||||||
|
|
All
brands
|
(0.1)%
|
||||||
|
Managed
|
|
|||||||
|
|
All
brands
|
(0.2)%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
Hotels
|
Rooms
|
|||
|
AMEA hotel and room count
at 31 December
|
2016
|
Change
over
2015
|
2016
|
Change
over
2015
|
|
|
|
|
|
|
|
|
|
Analysed
by brand
|
|
|
|
|
|
|
|
InterContinental
|
69
|
1
|
21,203
|
(35)
|
|
|
Crowne
Plaza
|
73
|
2
|
20,749
|
738
|
|
|
Hotel
Indigo
|
2
|
1
|
323
|
131
|
|
|
Holiday
Inn1
|
93
|
2
|
21,312
|
328
|
|
|
Holiday
Inn Express
|
34
|
7
|
7,583
|
1,697
|
|
|
Staybridge
Suites
|
3
|
-
|
425
|
-
|
|
|
Other
|
6
|
-
|
4,456
|
619
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
280
|
13
|
76,051
|
3,478
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
|
Franchised
|
55
|
3
|
12,570
|
646
|
|
|
Managed
|
223
|
10
|
62,894
|
2,832
|
|
|
Owned
and leased
|
2
|
-
|
587
|
-
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
280
|
13
|
76,051
|
3,478
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
|
Hotels
|
Rooms
|
|||
|
AMEA pipeline
at 31 December
|
2016
|
Change
over
2015
|
2016
|
Change
over
2015
|
|
|
|
|
|
|
|
|
|
Analysed
by brand
|
|
|
|
|
|
|
|
InterContinental
|
27
|
5
|
6,681
|
1,332
|
|
|
Crowne
Plaza
|
21
|
2
|
5,554
|
253
|
|
|
Hotel
Indigo
|
14
|
1
|
2,582
|
301
|
|
|
Holiday
Inn1
|
48
|
3
|
13,022
|
1,493
|
|
|
Holiday
Inn Express
|
35
|
(8)
|
7,486
|
(1,858)
|
|
|
Staybridge
Suites
|
4
|
(1)
|
788
|
(112)
|
|
|
Other
|
-
|
-
|
3,530
|
18
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
149
|
2
|
39,643
|
1,427
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
|
Franchised
|
11
|
3
|
2,406
|
227
|
|
|
Managed
|
138
|
(1)
|
37,237
|
1,200
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
149
|
2
|
39,643
|
1,427
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
|
12 months ended 31 December
|
||||
|
|
2016
|
2015
|
%
|
||
|
Greater China results
|
$m
|
$m
|
Change
|
||
|
|
|
|
|
||
|
Revenue
|
|
|
|
||
|
|
Franchised
|
3
|
4
|
(25.0)
|
|
|
|
Managed
|
114
|
105
|
8.6
|
|
|
|
Owned
and leased
|
-
|
98
|
(100.0)
|
|
|
|
|
____
|
____
|
____
|
|
|
Total
|
|
117
|
207
|
(43.5)
|
|
|
|
____
|
____
|
____
|
||
|
Operating profit before exceptional items
|
|
|
|
||
|
|
Franchised
|
3
|
5
|
(40.0)
|
|
|
|
Managed
|
64
|
59
|
8.5
|
|
|
|
Owned
and leased
|
-
|
29
|
(100.0)
|
|
|
|
|
____
|
____
|
____
|
|
|
|
67
|
93
|
(28.0)
|
||
|
Regional
overheads
|
(22)
|
(23)
|
4.3
|
||
|
|
____
|
____
|
____
|
||
|
|
45
|
70
|
(35.7)
|
||
|
Exceptional
items
|
-
|
698
|
(100.0)
|
||
|
|
____
|
____
|
____
|
||
|
Operating
profit
|
45
|
768
|
(94.1)
|
||
|
|
____
|
____
|
____
|
||
|
|
|
|
|
|
|
|
Greater China comparable RevPAR movement on previous
year
|
12 months ended
31 December
2016
|
|
|
|
|
|
|
Managed
|
|
|
|
|
All
brands
|
3.0%
|
|
|
|
|
|
|
|
|
|
|
Hotels
|
Rooms
|
|||
|
Greater China hotel and room count
at 31 December
|
2016
|
Change
over
2015
|
2016
|
Change
over
2015
|
|
|
|
|
|
|
|
|
|
Analysed
by brand
|
|
|
|
|
|
|
|
InterContinental
|
39
|
5
|
16,315
|
2,508
|
|
|
HUALUXE
|
4
|
1
|
1,096
|
298
|
|
|
Crowne
Plaza
|
79
|
4
|
28,051
|
1,363
|
|
|
Hotel
Indigo
|
6
|
1
|
740
|
129
|
|
|
Holiday
Inn1
|
83
|
5
|
25,871
|
900
|
|
|
Holiday
Inn Express
|
75
|
11
|
18,477
|
2,454
|
|
|
Other
|
6
|
-
|
2,472
|
(139)
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
292
|
27
|
93,022
|
7,513
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
|
Franchised
|
4
|
-
|
2,184
|
-
|
|
|
Managed
|
288
|
27
|
90,838
|
7,513
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
292
|
27
|
93,022
|
7,513
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
|
Hotels
|
Rooms
|
|||
|
Greater China pipeline
at 31 December
|
2016
|
Change
over
2015
|
2016
|
Change
over
2015
|
|
|
|
|
|
|
|
|
|
Analysed
by brand
|
|
|
|
|
|
|
|
InterContinental
|
22
|
1
|
7,454
|
(446)
|
|
|
HUALUXE
|
22
|
1
|
6,956
|
324
|
|
|
Crowne
Plaza
|
38
|
(1)
|
12,511
|
(206)
|
|
|
Hotel
Indigo
|
11
|
2
|
1,782
|
282
|
|
|
Holiday
Inn1
|
50
|
1
|
14,841
|
203
|
|
|
Holiday
Inn Express
|
95
|
30
|
20,205
|
5,087
|
|
|
Other
|
1
|
-
|
279
|
-
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
239
|
34
|
64,028
|
5,244
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
|
Franchised
|
20
|
20
|
4,085
|
4,085
|
|
|
Managed
|
219
|
14
|
59,943
|
1,159
|
|
|
|
____
|
____
|
______
|
_____
|
|
Total
|
239
|
34
|
64,028
|
5,244
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
|
12 months ended 31 December
|
|||
|
|
2016
|
2015
|
%
|
|
|
Central results
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
Revenue
|
141
|
135
|
4.4
|
|
|
Gross
costs
|
(269)
|
(286)
|
5.9
|
|
|
|
____
|
____
|
____
|
|
|
Operating
loss before exceptional items
|
(128)
|
(151)
|
15.2
|
|
|
Exceptional
items
|
|
-
|
(11)
|
100.0
|
|
|
____
|
____
|
____
|
|
|
Operating
loss
|
(128)
|
(162)
|
21.0
|
|
|
|
____
|
____
|
____
|
|
|
|
|
|
|
|
|
|
12 months ended 31 December
|
|
||||
|
|
2016
|
2015
|
%
|
|
||
|
System Fund assessments
|
$m
|
$m
|
change
|
|
||
|
|
|
|
|
|
||
|
Assessment
fees and contributions received from hotels
|
1,439
|
1,351
|
6.5
|
|
||
|
Proceeds
from sale of IHG Rewards Club points
|
283
|
222
|
27.5
|
|
||
|
|
____
|
____
|
____
|
|
||
|
Total
|
|
1,722
|
1,573
|
9.5
|
|
|
|
|
____
|
____
|
____
|
|
||
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
2016
|
2015
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Borrowings
|
|
|
|
|
|
Sterling
|
1,289
|
1,405
|
|
|
US
dollar
|
418
|
253
|
|
|
Euros
|
2
|
4
|
|
|
Other
|
3
|
4
|
|
Cash
and cash equivalents
|
|
|
|
|
|
Sterling
|
(27)
|
(619)
|
|
|
US
dollar
|
(127)
|
(460)
|
|
|
Euros
|
(12)
|
(15)
|
|
|
Canadian
dollar
|
(8)
|
(8)
|
|
|
Chinese
renminbi
|
(7)
|
(4)
|
|
|
Other
|
(25)
|
(31)
|
|
|
|
____
|
____
|
|
Net
debt
|
1,506
|
529
|
|
|
|
____
|
____
|
|
|
|
|
|
|
|
Average
debt levels
|
1,235
|
1,420
|
|
|
|
____
|
____
|
|
|
|
Year ended 31 December 2016
|
Year ended 31 December 2015
|
|||||
|
|
Before
exceptional
items
|
Exceptional
items
(note 4)
|
Total
|
Before
exceptional
items
|
Exceptional
items
(note 4)
|
Total
|
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (note 3)
|
1,715
|
-
|
1,715
|
1,803
|
-
|
1,803
|
|
|
Cost of
sales
|
(580)
|
-
|
(580)
|
(640)
|
-
|
(640)
|
|
|
Administrative
expenses
|
(339)
|
(13)
|
(352)
|
(395)
|
(25)
|
(420)
|
|
|
Share
of losses of associates and joint ventures
|
(2)
|
-
|
(2)
|
(3)
|
-
|
(3)
|
|
|
Other
operating income and expenses
|
9
|
-
|
9
|
11
|
880
|
891
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
803
|
(13)
|
790
|
776
|
855
|
1,631
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortisation
|
(96)
|
-
|
(96)
|
(96)
|
-
|
(96)
|
|
|
Impairment
charges
|
-
|
(16)
|
(16)
|
-
|
(36)
|
(36)
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (note 3)
|
707
|
(29)
|
678
|
680
|
819
|
1,499
|
|
|
Financial
income
|
6
|
-
|
6
|
5
|
-
|
5
|
|
|
Financial
expenses
|
(93)
|
-
|
(93)
|
(92)
|
-
|
(92)
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
620
|
(29)
|
591
|
593
|
819
|
1,412
|
|
|
|
|
|
|
|
|
|
|
|
Tax
(note 5)
|
(186)
|
12
|
(174)
|
(180)
|
(8)
|
(188)
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
Profit for the year from continuing operations
|
434
|
(17)
|
417
|
413
|
811
|
1,224
|
|
|
|
____
|
_____
|
_____
|
____
|
_____
|
_____
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
Equity
holders of the parent
|
431
|
(17)
|
414
|
411
|
811
|
1,222
|
|
|
Non-controlling
interest
|
3
|
-
|
3
|
2
|
-
|
2
|
|
|
|
____
|
_____
|
____
|
____
|
_____
|
____
|
|
|
|
434
|
(17)
|
417
|
413
|
811
|
1,224
|
|
|
____
|
_____
|
_____
|
____
|
_____
|
_____
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share
(note 6)
|
|
|
|
|
|
|
|
|
Continuing
and total operations:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
195.3¢
|
|
|
520.0¢
|
|
|
Diluted
|
|
|
193.5¢
|
|
|
513.4¢
|
|
|
Adjusted
|
203.3¢
|
|
|
174.9¢
|
|
|
|
|
Adjusted
diluted
|
201.4¢
|
|
|
172.7¢
|
|
|
|
|
_____
|
|
_____
|
_____
|
|
_____
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
Year ended
31 December
$m
|
2015
Year ended
31 December
$m
|
|
|
|
|
|
|
|
Profit for the year
|
417
|
1,224
|
|
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
Items
that may be subsequently reclassified to profit or
loss:
|
|
|
|
|
Gains
on valuation of available-for-sale financial assets, net of related
tax charge of $nil (2015 $nil)
|
5
|
2
|
|
|
Exchange
gains/(losses) on retranslation of foreign operations, net of
related tax charge of $3m (2015 $1m)
|
182
|
(2)
|
|
|
Fair
value gain reclassified to profit on disposal of available-for-sale
financial asset
|
(7)
|
-
|
|
|
Exchange losses
reclassified to profit on hotel disposal
|
-
|
2
|
|
|
|
_____
|
_____
|
|
|
|
180
|
2
|
|
|
Items
that will not be reclassified to profit or loss:
|
|
|
|
|
Re-measurement
(losses)/gains on defined benefit plans, net of related tax credit
of $4m (2015 charge of $4m)
|
-
|
9
|
|
|
Tax
related to pension contributions
|
-
|
7
|
|
|
|
_____
|
_____
|
|
|
|
-
|
16
|
|
|
|
|
|
|
|
|
_____
|
_____
|
|
|
Total other comprehensive income for the year
|
180
|
18
|
|
|
|
_____
|
_____
|
|
|
Total comprehensive income for the year
|
597
|
1,242
|
|
|
|
_____
|
_____
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
Equity
holders of the parent
|
594
|
1,240
|
|
|
Non-controlling
interest
|
3
|
2
|
|
|
_____
|
_____
|
|
|
|
597
|
1,242
|
|
|
|
_____
|
_____
|
|
|
|
Year ended 31 December 2016
|
||||
|
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
At
beginning of the year
|
169
|
(2,513)
|
2,653
|
10
|
319
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the year
|
-
|
180
|
414
|
3
|
597
|
|
Transfer
of treasury shares to employee share trusts
|
-
|
(24)
|
24
|
-
|
-
|
|
Purchase
of own shares by employee share trusts
|
-
|
(10)
|
-
|
-
|
(10)
|
|
Release
of own shares by employee share trusts
|
-
|
39
|
(39)
|
-
|
-
|
|
Equity-settled
share-based cost
|
-
|
-
|
23
|
-
|
23
|
|
Tax
related to share schemes
|
-
|
-
|
11
|
-
|
11
|
|
Equity
dividends paid
|
-
|
-
|
(1,693)
|
(5)
|
(1,698)
|
|
Transaction
costs relating to shareholder returns
|
-
|
-
|
(1)
|
-
|
(1)
|
|
Exchange
adjustments
|
(28)
|
28
|
-
|
-
|
-
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
At end of the year
|
141
|
(2,300)
|
1,392
|
8
|
(759)
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
Year ended 31 December 2015
|
||||
|
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
At
beginning of the year
|
178
|
(2,539)
|
1,636
|
8
|
(717)
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the year
|
-
|
2
|
1,238
|
2
|
1,242
|
|
Purchase
of own shares by employee share trusts
|
-
|
(47)
|
-
|
-
|
(47)
|
|
Release
of own shares by employee share trusts
|
-
|
62
|
(62)
|
-
|
-
|
|
Equity-settled
share-based cost
|
-
|
-
|
24
|
-
|
24
|
|
Tax
related to share schemes
|
-
|
-
|
5
|
-
|
5
|
|
Equity
dividends paid
|
-
|
-
|
(188)
|
-
|
(188)
|
|
Exchange
adjustments
|
(9)
|
9
|
-
|
-
|
-
|
|
|
_____
|
_____
|
____
|
____
|
____
|
|
At end of the year
|
169
|
(2,513)
|
2,653
|
10
|
319
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
*
|
Other
reserves comprise the capital redemption reserve, shares held by
employee share trusts, other reserves, unrealised gains and losses
reserve and currency translation reserve.
|
|
All
items above are shown net of tax.
|
|
|
2016
31 December
|
2015
31 December
|
|
|
$m
|
$m
|
|
ASSETS
|
|
|
|
Property,
plant and equipment
|
419
|
428
|
|
Goodwill
and other intangible assets
|
1,292
|
1,226
|
|
Investment
in associates and joint ventures
|
111
|
136
|
|
Trade
and other receivables
|
8
|
3
|
|
Other
financial assets
|
248
|
284
|
|
Non-current
tax receivable
|
23
|
37
|
|
Deferred
tax assets
|
48
|
49
|
|
|
_____
|
_____
|
|
Total non-current assets
|
2,149
|
2,163
|
|
|
_____
|
_____
|
|
Inventories
|
3
|
3
|
|
Trade
and other receivables
|
472
|
462
|
|
Current
tax receivable
|
77
|
4
|
|
Other
financial assets
|
20
|
-
|
|
Cash
and cash equivalents
|
206
|
1,137
|
|
|
_____
|
_____
|
|
Total current assets
|
778
|
1,606
|
|
|
_____
|
_____
|
|
Total assets (note 3)
|
2,927
|
3,769
|
|
|
_____
|
_____
|
|
LIABILITIES
|
|
|
|
Loans
and other borrowings
|
(106)
|
(427)
|
|
Derivative
financial instruments
|
(3)
|
(3)
|
|
Loyalty
programme liability
|
(291)
|
(223)
|
|
Trade
and other payables
|
(681)
|
(616)
|
|
Provisions
|
(3)
|
(15)
|
|
Current
tax payable
|
(50)
|
(85)
|
|
|
_____
|
_____
|
|
Total current liabilities
|
(1,134)
|
(1,369)
|
|
|
_____
|
_____
|
|
Loans
and other borrowings
|
(1,606)
|
(1,239)
|
|
Retirement
benefit obligations
|
(96)
|
(129)
|
|
Loyalty
programme liability
|
(394)
|
(426)
|
|
Trade
and other payables
|
(200)
|
(152)
|
|
Provisions
|
(5)
|
-
|
|
Deferred
tax liabilities
|
(251)
|
(135)
|
|
|
_____
|
_____
|
|
Total non-current liabilities
|
(2,552)
|
(2,081)
|
|
|
_____
|
_____
|
|
Total liabilities
|
(3,686)
|
(3,450)
|
|
|
_____
|
_____
|
|
Net (liabilities)/assets
|
(759)
|
319
|
|
|
_____
|
_____
|
|
EQUITY
|
|
|
|
Equity
share capital
|
141
|
169
|
|
Capital
redemption reserve
|
9
|
11
|
|
Shares
held by employee share trusts
|
(11)
|
(18)
|
|
Other
reserves
|
(2,860)
|
(2,888)
|
|
Unrealised
gains and losses reserve
|
111
|
113
|
|
Currency
translation reserve
|
451
|
269
|
|
Retained
earnings
|
1,392
|
2,653
|
|
|
_____
|
_____
|
|
IHG shareholders' equity
|
(767)
|
309
|
|
Non-controlling
interest
|
8
|
10
|
|
|
_____
|
_____
|
|
Total equity
|
(759)
|
319
|
|
|
_____
|
_____
|
|
|
2016
Year ended
31 December
|
2015
Year ended
31 December
|
|
|
$m
|
$m
|
|
|
|
|
|
Profit for the year
|
417
|
1,224
|
|
Adjustments
reconciling profit for the year to cash flow from operations (note
8)
|
536
|
(414)
|
|
|
_____
|
_____
|
|
Cash flow from operations
|
953
|
810
|
|
Interest
paid
|
(75)
|
(75)
|
|
Interest
received
|
4
|
2
|
|
Tax
paid on operating activities
|
(130)
|
(109)
|
|
|
_____
|
_____
|
|
Net cash from operating activities
|
752
|
628
|
|
|
_____
|
_____
|
|
Cash flow from investing activities
|
|
|
|
Purchase
of property, plant and equipment
|
(32)
|
(42)
|
|
Purchase
of intangible assets
|
(175)
|
(157)
|
|
Investment
in associates and joint ventures
|
(14)
|
(30)
|
|
Loan
advances to associates and joint ventures
|
(2)
|
(25)
|
|
Investment
in other financial assets
|
(13)
|
(28)
|
|
Acquisition
of business, net of cash acquired
|
-
|
(438)
|
|
Capitalised
interest paid
|
(5)
|
(4)
|
|
Disposal
of hotel assets, net of costs and cash disposed
|
(5)
|
1,277
|
|
Repayments
related to intangible assets
|
3
|
-
|
|
Loan
repayments by associates and joint ventures
|
-
|
22
|
|
Proceeds
from associates and joint ventures
|
2
|
9
|
|
Repayments
of other financial assets
|
25
|
6
|
|
Tax
paid on disposals
|
-
|
(1)
|
|
|
_____
|
_____
|
|
Net cash from investing activities
|
(216)
|
589
|
|
|
_____
|
_____
|
|
Cash flow from financing activities
|
|
|
|
Purchase
of own shares by employee share trusts
|
(10)
|
(47)
|
|
Dividends
paid to shareholders
|
(1,693)
|
(188)
|
|
Dividend
paid to non-controlling interest
|
(5)
|
-
|
|
Transaction
costs relating to shareholder returns
|
(1)
|
-
|
|
Issue
of long-term bonds
|
459
|
458
|
|
Other
new borrowings
|
-
|
400
|
|
Long-term
bonds repaid
|
(315)
|
-
|
|
New
borrowings repaid
|
-
|
(400)
|
|
Increase/(decrease)
in other borrowings
|
109
|
(355)
|
|
Proceeds
from foreign exchange swaps
|
-
|
22
|
|
|
_____
|
_____
|
|
Net cash from financing activities
|
(1,456)
|
(110)
|
|
|
_____
|
_____
|
|
Net movement in cash and cash equivalents, net of overdrafts, in
the year
|
(920)
|
1,107
|
|
Cash
and cash equivalents, net of overdrafts, at beginning of the
year
|
1,098
|
55
|
|
Exchange
rate effects
|
(61)
|
(64)
|
|
|
_____
|
_____
|
|
Cash and cash equivalents, net of overdrafts, at end of the
year
|
117
|
1,098
|
|
|
_____
|
_____
|
|
1.
|
Basis of preparation
|
|
|
The audited consolidated financial statements of InterContinental
Hotels Group PLC (the Group or IHG) for the year ended 31 December
2016 have been prepared in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the European Union and as
applied in accordance with the provisions of the Companies Act
2006. Other than the change set out below, they have
been prepared on a consistent basis using the accounting policies
set out in the InterContinental Hotels Group PLC Annual Report and
Financial Statements for the year ended 31 December
2015.
|
|
|
With effect from 1 January 2016, the Group has adopted Amendments
to IAS 1 'Disclosure Initiative' which has resulted in the
presentation of the loyalty programme liability separately on the
Group statement of financial position.
|
|
2.
|
Exchange rates
|
|
|
The
results of operations have been translated into US dollars at the
average rates of exchange for the year. In the case of sterling,
the translation rate is $1= £0.74 (2015 $1=£0.65). In the
case of the euro, the translation rate is $1 = €0.90 (2015 $1
= €0.90).
Assets
and liabilities have been translated into US dollars at the rates
of exchange on the last day of the year. In the case of sterling,
the translation rate is $1=£0.81 (2015 $1 = £0.68). In
the case of the euro, the translation rate is $1 = €0.95
(2015 $1 = €0.92).
|
|
3.
|
Segmental information
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
2016
|
2015
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Americas
|
993
|
955
|
|
|
Europe
|
227
|
265
|
|
|
AMEA
|
237
|
241
|
|
|
Greater
China
|
117
|
207
|
|
|
Central
|
141
|
135
|
|
|
|
_____
|
_____
|
|
|
Total revenue
|
1,715
|
1,803
|
|
|
|
_____
|
_____
|
|
|
|
|
|
|
|
All
results relate to continuing operations.
|
||
|
|
Profit
|
2016
$m
|
2015
$m
|
|
|
|
|
|
|
|
Americas
|
633
|
597
|
|
|
Europe
|
75
|
78
|
|
|
AMEA
|
82
|
86
|
|
|
Greater
China
|
45
|
70
|
|
|
Central
|
(128)
|
(151)
|
|
|
|
_____
|
_____
|
|
|
Reportable segments' operating profit
|
707
|
680
|
|
|
Exceptional
items (note 4)
|
(29)
|
819
|
|
|
|
_____
|
_____
|
|
|
Operating profit
|
678
|
1,499
|
|
|
|
|
|
|
|
Net
finance costs
|
(87)
|
(87)
|
|
|
|
_____
|
_____
|
|
|
Profit before tax
|
591
|
1,412
|
|
|
|
_____
|
_____
|
|
|
|
|
|
|
|
All
results relate to continuing operations.
|
||
|
|
|
||
|
|
Assets
|
2016
$m
|
2015
$m
|
|
|
|
|
|
|
|
Americas
|
1,417
|
1,355
|
|
|
Europe
|
321
|
383
|
|
|
AMEA
|
249
|
260
|
|
|
Greater
China
|
147
|
148
|
|
|
Central
|
439
|
396
|
|
|
|
_____
|
_____
|
|
|
Segment assets
|
2,573
|
2,542
|
|
|
|
|
|
|
|
Unallocated
assets:
|
|
|
|
|
Non-current
tax receivable
|
23
|
37
|
|
|
Deferred
tax assets
|
48
|
49
|
|
|
Current
tax receivable
|
77
|
4
|
|
|
Cash
and cash equivalents
|
206
|
1,137
|
|
|
|
_____
|
_____
|
|
|
Total assets
|
2,927
|
3,769
|
|
|
|
_____
|
_____
|
|
4.
|
Exceptional items
|
||||
|
|
|
2016
$m
|
2015
$m
|
||
|
|
Exceptional items before tax
|
|
|
||
|
|
|
Administrative
expenses:
|
|
|
|
|
|
|
Kimpton
integration costs (a)
|
(13)
|
(10)
|
|
|
|
|
Venezuelan
currency losses (b)
|
-
|
(4)
|
|
|
|
|
Reorganisation
costs (c)
|
-
|
(6)
|
|
|
|
|
Corporate
development costs (d)
|
-
|
(5)
|
|
|
|
|
|
_______
|
_______
|
|
|
|
|
|
(13)
|
(25)
|
|
|
|
|
Other
operating income and expenses:
|
|
|
|
|
|
|
Gain on
disposal of hotels (e)
|
-
|
871
|
|
|
|
|
Gain on
disposal of investment in associate (f)
|
-
|
9
|
|
|
|
|
|
_____
|
_____
|
|
|
|
|
-
|
880
|
||
|
|
Impairment charges:
|
|
|
||
|
|
|
Associates
(g)
|
(16)
|
(9)
|
|
|
|
|
Property,
plant and equipment (h)
|
-
|
(27)
|
|
|
|
|
_____
|
____
|
||
|
|
|
(16)
|
(36)
|
||
|
|
|
_____
|
____
|
||
|
|
|
(29)
|
819
|
||
|
|
|
_____
|
_____
|
||
|
|
Tax
|
|
|
||
|
|
|
Tax on
exceptional items (i)
|
12
|
(8)
|
|
|
|
|
|
_____
|
_____
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All
items above relate to continuing operations. These items are
treated as exceptional by reason of their size or
nature.
|
|
|
|
a)
|
Relates
to the cost of integrating Kimpton Hotel and Restaurant Group, LLC
('Kimpton') into the operations of the Group. Kimpton was
acquired on 16 January 2015. The integration programme
remains in progress and will be substantially completed in
2017.
|
|
|
b)
|
Arose from changes to the Venezuelan exchange rate
mechanisms.
|
|
|
c)
|
Related
to the implementation of more efficient processes and procedures in
the Group's Global Technology infrastructure to help mitigate
future cost increases.
|
|
|
d)
|
Primarily
legal costs related to development opportunities.
|
|
|
e)
|
Arose
from the sale of InterContinental Paris - Le Grand on 20 May 2015
and InterContinental Hong Kong on 30 September 2015.
|
|
|
f)
|
Related to the disposal of an associate investment in the AMEA
region.
|
|
|
g)
|
In
2016, relates to an associate investment in The Americas region
and, in 2015, related to an associate investment in the AMEA
region, following re-assessments of their recoverable
amounts.
|
|
|
h)
|
Related
to two hotels in North America following a re-assessment of their
recoverable amounts.
|
|
|
i)
|
In
2016, comprises a $6m deferred tax credit in respect of the
associate investment impairment, a $5m deferred tax credit
representing future tax relief on Kimpton integration costs and $1m
credit in respect of other items. In 2015, comprised a charge
of $56m relating to disposal of hotels, a credit of $21m in respect
of the 2014 disposal of an 80.1% interest in InterContinental New
York Barclay reflecting the judgment that state tax law changes
would now apply to the deferred gain, and credits of $27m for
current and deferred tax relief on other operating exceptional
items of current and prior periods.
|
|
5.
|
Tax
|
|
|
The tax
charge on profit from continuing operations, excluding the impact
of exceptional items (note 4), has been calculated using a tax rate
of 30% (2015 30%) analysed as follows:
|
|
|
Year ended 31 December
|
2016
|
2016
|
2016
|
2015
|
2015
|
2015
|
|
|
|
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before
exceptional items
|
620
|
(186)
|
30%
|
593
|
(180)
|
30%
|
|
|
|
Exceptional
items
|
(29)
|
12
|
|
819
|
(8)
|
|
|
|
|
|
____
|
____
|
|
____
|
____
|
|
|
|
|
|
591
|
(174)
|
|
1,412
|
(188)
|
|
|
|
|
|
_____
|
_____
|
|
_____
|
_____
|
|
|
|
|
Analysed
as:
|
|
|
|
|
|
|
|
|
|
|
UK
tax
|
|
20
|
|
|
(2)
|
|
|
|
|
Foreign
tax
|
|
(194)
|
|
|
(186)
|
|
|
|
|
|
____
|
|
|
____
|
|
|
|
|
|
|
(174)
|
|
|
(188)
|
|
|
|
|
|
|
_____
|
|
|
_____
|
|
|
|
6.
|
Earnings per ordinary share
|
|
|
Basic
earnings per ordinary share is calculated by dividing the profit
for the year available for IHG equity holders by the weighted
average number of ordinary shares, excluding investment in own
shares, in issue during the year.
Diluted
earnings per ordinary share is calculated by adjusting basic
earnings per ordinary share to reflect the notional exercise of the
weighted average number of dilutive ordinary share awards
outstanding during the year.
Adjusted
earnings per ordinary share is disclosed in order to show
performance undistorted by exceptional items, to give a more
meaningful comparison of the Group's performance.
|
|
|
Continuing and total operations
|
2016
|
2015
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share
|
|
|
|
|
|
Profit
available for equity holders ($m)
|
414
|
1,222
|
|
|
|
Basic
weighted average number of ordinary shares (millions)
|
212
|
235
|
|
|
|
Basic
earnings per ordinary share (cents)
|
195.3
|
520.0
|
|
|
|
|
_____
|
_____
|
|
|
|
Diluted earnings per ordinary share
|
|
|
|
|
|
Profit
available for equity holders ($m)
|
414
|
1,222
|
|
|
|
Diluted
weighted average number of ordinary shares (millions)
|
214
|
238
|
|
|
|
Diluted
earnings per ordinary share (cents)
|
193.5
|
513.4
|
|
|
|
|
_____
|
_____
|
|
|
|
Adjusted earnings per ordinary share
|
|
|
|
|
|
Profit
available for equity holders ($m)
|
414
|
1,222
|
|
|
|
Adjusting
items (note 4):
|
|
|
|
|
|
|
Exceptional
items before tax ($m)
|
29
|
(819)
|
|
|
|
Tax on
exceptional items ($m)
|
(12)
|
8
|
|
|
|
____
|
____
|
|
|
|
Adjusted
earnings ($m)
|
431
|
411
|
|
|
|
Basic
weighted average number of ordinary shares (millions)
|
212
|
235
|
|
|
|
Adjusted
earnings per ordinary share (cents)
|
203.3
|
174.9
|
|
|
|
|
_____
|
_____
|
|
|
|
Adjusted diluted earnings per ordinary share
|
|
|
|
|
|
Diluted
weighted average number of ordinary shares (millions)
|
214
|
238
|
|
|
|
Adjusted
diluted earnings per ordinary share (cents)
|
201.4
|
172.7
|
|
|
|
|
_____
|
_____
|
|
|
|
The
diluted weighted average number of ordinary shares is calculated
as:
|
|||
|
|
|
2016
millions
|
2015
millions
|
|
|
|
Basic
weighted average number of ordinary shares
|
212
|
235
|
|
|
|
Dilutive
potential ordinary shares
|
2
|
3
|
|
|
|
|
____
|
____
|
|
|
|
|
214
|
238
|
|
|
|
|
_____
|
_____
|
|
|
7.
|
Dividends and shareholder returns
|
|
|||||||
|
|
|
2016
cents per share
|
2015
cents per share
|
2016
$m
|
2015
$m
|
|
|||
|
|
Paid
during the year:
|
|
|
|
|
|
|||
|
|
|
Final
(declared for previous year)
|
57.5
|
52.0
|
137
|
125
|
|
||
|
|
|
Interim
|
30.0
|
27.5
|
56
|
63
|
|
||
|
|
|
Special
|
632.9
|
-
|
1,500
|
-
|
|
||
|
|
|
_____
|
_____
|
_____
|
_____
|
|
|||
|
|
|
720.4
|
79.5
|
1,693
|
188
|
|
|||
|
|
|
_____
|
_____
|
_____
|
_____
|
|
|||
|
|
|
|
|
|
|
|
|||
|
|
Proposed
for approval at the Annual GeneralMeeting (not recognised as a
liability at31 December):
|
|
|||||||
|
|
|
Final
|
64.0
|
57.5
|
126
|
135
|
|
||
|
|
|
_____
|
_____
|
_____
|
_____
|
|
|||
|
|
On 23
February 2016, the Group announced a $1.5bn return of funds to
shareholders by way of a special dividend and share
consolidation. On 6 May 2016, shareholders approved the share
consolidation on the basis of 5 new ordinary shares of 18
318/329p per share for
every 6 existing ordinary shares of 15 265/329p, which became
effective on 9 May 2016 and resulted in the reduction of 42m shares
in issue. The special dividend was paid to shareholders on 23
May 2016. The dividend and share consolidation had the same
economic effect as a share repurchase at fair value, therefore
previously reported earnings per share has not been
restated.
In
February 2017, the Board proposed a $400m return of funds to
shareholders by way of a special dividend with a share
consolidation.
The
total number of shares held as treasury shares at 31 December 2016
was 8.9m.
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
8.
|
Reconciliation of profit for the year to cash flow from
operations
|
||
|
|
|
2016
|
2015
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Profit
for the year
|
417
|
1,224
|
|
|
Adjustments
for:
|
|
|
|
|
Net
financial expenses
|
87
|
87
|
|
|
Income
tax charge
|
174
|
188
|
|
|
Depreciation and
amortisation
|
96
|
96
|
|
|
Impairment
|
16
|
36
|
|
|
Other
exceptional items
|
13
|
(855)
|
|
|
Equity-settled
share-based cost
|
17
|
19
|
|
|
Dividends from
associates and joint ventures
|
5
|
5
|
|
|
Net
change in loyalty programme liability and System Fund
surplus
|
65
|
42
|
|
|
System
Fund depreciation and amortisation
|
31
|
21
|
|
|
Other
changes in net working capital
|
78
|
(10)
|
|
|
Utilisation of
provisions, net of insurance recovery
|
(4)
|
-
|
|
|
Retirement benefit
contributions, net of costs
|
(32)
|
(4)
|
|
|
Cash
flows relating to exceptional items
|
(19)
|
(45)
|
|
|
Other
items
|
9
|
6
|
|
|
|
_____
|
______
|
|
|
Total
adjustments
|
536
|
(414)
|
|
|
|
_____
|
_____
|
|
|
Cash flow from operations
|
953
|
810
|
|
|
|
_____
|
_____
|
|
9.
|
Net debt
|
||
|
|
|
2016
|
2015
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
206
|
1,137
|
|
|
Loans
and other borrowings - current
|
(106)
|
(427)
|
|
|
Loans
and other borrowings - non-current
|
(1,606)
|
(1,239)
|
|
|
|
_____
|
_____
|
|
|
Net debt
|
(1,506)
|
(529)
|
|
|
|
_____
|
_____
|
|
|
Finance
lease obligation included above
|
(227)
|
(224)
|
|
|
|
_____
|
_____
|
|
10.
|
Movement in net debt
|
||||
|
|
|
2016
|
2015
|
|
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
Net
(decrease)/increase in cash and cash equivalents, net of
overdrafts
|
(920)
|
1,107
|
|
|
|
|
Add
back cash flows in respect of other components of net
debt:
|
|
|
|
|
|
|
Issue
of long-term bonds
|
(459)
|
(458)
|
|
|
|
|
Other
new borrowings
|
-
|
(400)
|
|
|
|
|
Long-term bonds
repaid
|
315
|
-
|
|
|
|
|
New
borrowings repaid
|
-
|
400
|
|
|
|
|
(Increase)/decrease
in other borrowings
|
(109)
|
355
|
|
|
|
|
|
_____
|
_____
|
|
|
|
|
(Increase)/decrease
in net debt arising from cash flows
|
(1,173)
|
1,004
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
movements:
|
|
|
|
|
|
|
|
Finance
lease obligations
|
(4)
|
(6)
|
|
|
|
|
Increase
in accrued interest
|
(6)
|
(7)
|
|
|
|
|
Exchange
and other adjustments
|
206
|
13
|
|
|
|
|
_____
|
_____
|
|
|
|
|
(Increase)/decrease in net debt
|
(977)
|
1,004
|
|
|
|
|
|
|
|
|
|
|
|
Net
debt at beginning of the year
|
(529)
|
(1,533)
|
|
|
|
|
|
_____
|
_____
|
|
|
|
|
Net debt at end of the year
|
(1,506)
|
(529)
|
|
|
|
|
|
_____
|
_____
|
|
|
|
11.
|
Commitments and contingencies
|
|
|
At 31
December 2016, the amount contracted for but not provided for in
the financial statements for expenditure on property, plant and
equipment and intangible assets was $97m (2015 $76m). The
Group has also committed to invest in a number of its associates,
with an estimated outstanding commitment of $36m at 31 December
2016 (2015 $45m) based on current forecasts.
In
limited cases, the Group may provide performance guarantees to
third-party hotel owners to secure management contracts. At
31 December 2016, the amount provided in the financial statements
was $5m (2015 $1m) and the maximum unprovided exposure under
such guarantees was $14m (2015 $13m).
The
Group may guarantee loans made to facilitate third-party ownership
of hotels in which the Group has an equity interest. At 31
December 2016, there were guarantees of $33m in place (2015
$30m). In connection with an associate investment, the
Group has provided an indemnity to its joint venture partner for
100% of the obligations related to a $43m supplemental bank loan
made to the associate on 31 December 2015.
During
the first half of 2016, the Group was notified of a security
incident at a number of Kimpton hotels that resulted in
unauthorised access to guest payment card data (the "Kimpton
Security Incident"). Based on the estimated number of cards
affected and opinion of external advisers, an amount of $5m has
been provided in the financial statements to cover the estimated
cost of reimbursing the impacted payment card networks for
counterfeit fraud losses and related expenses. This estimate
involves significant judgement based on currently available
information and is subject to change as actual claims are made and
new information becomes available.
In
December 2016, the Group was notified of a security incident at a
number of hotels in The Americas region (the "Americas Security
Incident"). The Group issued a Substitute Notice on 3
February 2017 notifying guests that malware was installed on
servers that processed payment cards used at restaurants and bars
of 12 IHG managed properties. An investigation of other properties
in The Americas region is ongoing. It is not practicable to make a
reliable estimate of the possible financial effect of any claims
concerning the Americas Security Incident at this
time.
The
Group may be exposed to investigations regarding compliance with
applicable State and Federal data security standards, although no
claims have been received to date. In addition, the Group is
exposed to legal action from individuals and organisations impacted
by the security incidents. A class action has been filed in
the courts in relation to the Kimpton Security Incident, although
alleged damages have not been specified. It is not practicable to
make a reliable estimate of the possible financial effect of any
claims on the Group at this time.
In
respect of the $5m provided in the financial statements, it is
expected that a proportion will be recoverable under the Group's
insurance programmes although this, together with any potential
recoveries in respect of the contingent liabilities detailed above,
will be subject to specific agreement with the relevant insurance
providers.
From
time to time, the Group is subject to legal proceedings the
ultimate outcome of each being always subject to many uncertainties
inherent in litigation. The Group has also given warranties
in respect of the disposal of certain of its former
subsidiaries. It is the view of the Directors that, other
than to the extent that liabilities have been provided for in these
financial statements, it is not possible to quantify any loss to
which these proceedings or claims under these warranties may give
rise, however, as at the date of reporting, the Group does not
believe that the outcome of these matters will have a material
effect on the Group's financial position.
|
|
12.
|
Group financial statements
|
|
|
The
preliminary statement of results was approved by the Board on 20
February 2017. The preliminary statement of results does not
represent the full Group financial statements of InterContinental
Hotels Group PLC and its subsidiaries which will be delivered to
the Registrar of Companies in due course. The financial information
for the year ended 31 December 2015 has been extracted from the IHG
Annual Report and Financial Statements for that year as filed with
the Registrar of Companies.
|
|
|
Auditor's review
|
|
|
The
auditors, Ernst & Young LLP, have given an unqualified report
under Chapter 3 of Part 16 of the Companies Act 2006 in respect of
the full Group financial statements.
|
|
|
|
InterContinental Hotels Group PLC
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
By:
|
/s/
F.Cuttell
|
|
|
Name:
|
F.
CUTTELL
|
|
|
Title:
|
ASSISTANT
COMPANY SECRETARY
|
|
|
|
|
|
|
Date:
|
21 February
2017
|
|
|
|
|