|
99.1
|
Final Results
|
||||
|
|
|
||||
|
Financial summary1
|
Reported
|
Underlying at FY13 constant rates2
|
||||
|
2014
|
2013
|
% Change
|
2014
|
2013
|
% Change
|
|
|
Revenue
|
$1,858m
|
$1,903m
|
(2)%
|
$1,667m
|
$1,573m
|
6%
|
|
Fee Revenue3
|
$1,255m
|
$1,176m
|
7%
|
$1,261m
|
$1,176m
|
7%
|
|
Operating profit
|
$651m
|
$668m
|
(3)%
|
$648m5
|
$591m
|
10%
|
|
Adjusted EPS
|
158.3¢
|
158.3¢
|
-
|
155.4¢
|
138.5¢
|
12%
|
|
Basic EPS4
|
158.3¢
|
140.9¢
|
12%
|
-
|
-
|
-
|
|
Total dividend per share
|
77.0¢
|
70.0¢
|
10%
|
-
|
-
|
-
|
|
Net debt
|
$1,533m
|
$1,153m
|
-
|
-
|
-
|
-
|
|
Richard Solomons, Chief Executive of InterContinental Hotels Group PLC, said:
|
|
"2014 was an excellent year for IHG as we delivered against our long-term winning strategy for high quality growth. We achieved strong RevPAR performance of 6.1%, and our best net system size growth since 2009 of 3.4%, increasing our operating profit on an underlying2 basis by 10%.
We remain committed to reducing the capital intensity of the business and maintaining an efficient balance sheet with disposal proceeds received in the year of almost $400m and shareholder returns, including ordinary dividends, of over $1bn. We are proposing an increase in the total dividend for the year of 10%.
We expanded our brand portfolio and strengthened our position in boutique hotels, the fastest growing segment in the industry over the last five years, with the acquisition of Kimpton Hotels & Restaurants. The first properties for our innovative, consumer focused, EVEN Hotels and HUALUXE Hotels and Resorts brands are now open. Significant growth milestones were achieved across our established brands as we continue to strengthen our scale positions in the most important global markets.
Looking into 2015, we face many macroeconomic and geopolitical uncertainties, but are confident that our strategy for high quality growth coupled with the momentum in the business positions us well for continued strong performance."
|
|
Financial Highlights
|
|
· Strong underlying financial performance
- Strong annual RevPAR performance with global comparable RevPAR up 6.1%, led by 7.4% growth in the Americas. Q4 global comparable RevPAR growth of 5.1%, with 7.0% growth in the Americas.
- $23bn total gross revenue from hotels in IHG's system (up 6% year on year; 7% CER).
- Underlying2 fee revenue up 7% and operating profit up 10% driven by strong trading and enhanced productivity. Reported operating profit down 3% reflecting owned hotel disposals and 2013 liquidated damages.
- Group fee-based margin up 1.5%pts to 44.7%, benefiting from strong growth in our scale markets. We will continue to invest for long-term growth in developing markets in 2015.
|
|
Strategic Progress
|
|
· Enhancing our portfolio of preferred brands
- Significant milestones reached across our brand family including the 400th Crowne Plaza, the 200th Staybridge Suites, the 60th Hotel Indigo in its 10th anniversary year, opening of the first two properties for the wellness-focused EVEN Hotels, and over 100 open and pipeline hotels for the Holiday Inn Express brand in China.
- Acquisition of Kimpton Hotels & Restaurants LLC ("Kimpton") completed in January 2015. Along with Hotel Indigo and EVEN Hotels, creates industry's leading lifestyle & boutique business with over 200 open and pipeline hotels.
- First hotel for the HUALUXE Hotels and Resorts brand opened in February 2015.
|
|
· Building and leveraging scale
- 710k rooms open at year end (722k including Kimpton) as we delivered our strongest net system size growth since 2009 of 3.4% with 41k rooms opened, and 18k rooms removed.
- Highest signings in six years of 70k rooms into our 194k room pipeline (197k including Kimpton).
- 85% of open rooms and 89% of pipeline in our 10 priority markets.
- 5% share of global industry supply, 13% share of active industry pipeline; well positioned to drive future growth.
|
|
· Driving revenue delivery through technology and digital channels
- 71% room revenue delivered by direct and indirect channels, including $4bn of digital revenues. 50% growth in mobile bookings to over $900m.
- Increased personalisation and redemption offers for 84m IHG Rewards Club members.
- Improved our number one rated mobile app with launch of mobile check-in and check-out at over 500 hotels.
- Established strategic relationship with Amadeus to develop innovative and efficient technology solutions.
|
|
· Commitment to efficient balance sheet and driving shareholder returns
- Year end net debt / EBITDA of 2.1x; 2.6x following completion of Kimpton acquisition.
- Over $1bn returned to shareholders during 2014; 11% increase in final dividend to 52¢.
|
|
Americas - Excellent RevPAR performance and highest signings in 6 years
|
|
The Americas is our largest region, contributing 68% of our operating profit before central overheads in the year. The US contributes over 80% of our fee revenues in the Americas, where we also focus on growth in Mexico, Canada, and Latin America. In the US, we have driven strong growth in RevPAR in a favourable supply and demand environment.
Comparable RevPAR increased 7.4%, driven by rate growth of 3.7%; fourth quarter RevPAR increased 7.0%. In the US, RevPAR was up 7.5% in both the full year and fourth quarter. Strong performance across all our brands was driven by continued demand growth set against limited supply increases, with like-for-like growth in the fourth quarter benefiting from the Government shut down in 2013.
On an underlying1 basis, revenue was up 10% and operating profit was up 8% driven predominantly by strong RevPAR growth in the fee business and an increase in net rooms. Regional overheads of $65m increased following investment in our development and quality teams, and unusually high healthcare costs. Underlying1 owned profits exhibited high growth due to post refurbishment performance at Holiday Inn Aruba and strong trading at the InterContinental Boston. Reported revenue decreased 5% to $871m and operating profit decreased 1% to $544m due to the sale of owned assets and significant liquidated damages of $31m received in 2013 (versus $7m in 2014).
We opened 21k rooms (178 hotels) including the 492-room Holiday Inn Financial District in Manhattan, one of 64 hotels opened in the fourth quarter. We also opened the first two hotels for the EVEN Hotels brand in June, which have received consistently excellent guest feedback. The removal of 12k rooms (95 hotels), over 30% fewer than in 2013, demonstrates our continued commitment to quality.
We signed 38k rooms (319 hotels), our best performance for six years and 12% up versus 2013. Signings in the year included a 900-room new build InterContinental hotel in Los Angeles, which will be our largest for the brand in the US, the 777-room Holiday Inn Resort Nickelodeon Suites, one of over 200 Holiday Inn brand family signings, and Crowne Plaza Atlanta - Midtown, which also opened in the year, and is one of 10 signings for the brand.
2015:
Key performance indicators for Kimpton will be reported from the first quarter and profit and loss information will be consolidated in Americas managed from half year results. The refurbishment of InterContinental New York Barclay is progressing well and the hotel is expected to reopen in 2016. We incurred costs of $5m in relation to our 20% joint venture share of the hotel's operating expenditure (reflected in Americas managed operating profit), and we expect a similar cost in 2015, as previously indicated.
|
|
Europe - Strong trading performance in the UK and Germany
|
|
Europe contributed 11% of our operating profit before central overheads in the year. Our business in Europe is focused on growth in our priority markets of the UK, Germany, Russia and the CIS, and the top 50 European cities, which contribute approximately 85% of our total fee revenues in the region.
Comparable RevPAR increased 5.1% with growth in both ADR and occupancy; fourth quarter RevPAR increased 4.2%. Trading was particularly strong in the UK, up 8.9%, with low double digit growth in the provinces and high single digit growth in London. Germany also performed well with RevPAR up 4.1%. We outperformed the industry in Russia and the CIS, but fee income declined by $3m in 2014, due to the challenging economic environment and currency devaluation in the second half.
On an underlying1 basis, revenue increased 1% and operating profit increased 3%. This reflects good growth in the franchise business, which delivered 11% operating profit growth. This was partially offset by a decline in profit at InterContinental Paris - Le Grand, during the refurbishment of its historic Salon Opera ballroom in the first half of 2014. Reported revenue decreased 7% (7% CER) to $374m and operating profit decreased 15% (13% CER) to $89m due to the disposal of owned assets and receipt of significant liquidated damages in 2013.
Openings of 5k rooms (35 hotels) included two landmark InterContinental hotels; one in Dublin, Ireland, which was both signed and opened in December and the other in Lisbon, Portugal. We also opened four new properties for the Hotel Indigo brand in prime city locations of Paris, Madrid, Rome and St Petersburg. We signed 8k rooms (48 hotels) into our pipeline, including 2k rooms (12 hotels) in Germany, our strongest ever level of signings in the market driven by our multi-development agreement partners and the use of recyclable capital investment.
2015:
We have recently streamlined our mainstream Europe managed business, which will result in the transfer of most of our UK managed hotels to franchise contracts, and allows us to accelerate the growth of our business in this priority market. 21 hotels transferred during 2014, and the balance will transfer in 2015. If this change had been in place for the full year, managed and franchised EBIT would have been $8m lower and $10m higher respectively, and we expect UK franchised income from these hotels to rise by a further $3m in the medium-term as a result of these changes.
|
|
AMEA - Robust performance led by RevPAR growth in established markets
|
|
AMEA contributed 10% of our operating profit before central overheads in the year. Our Asia, Middle East & Africa region is our most diverse, including the developed markets of the Middle East, Australia and Japan, and developing markets such as Indonesia and India. 54% of our open hotels in the region are in developed markets, whereas 77% of our pipeline is in developing markets.
Comparable RevPAR increased 3.8% driven by 2.4% rate growth, with fourth quarter RevPAR up 3.1%. Total RevPAR was up 2.2% as hotels opened in developing markets with lower RevPAR. Our performance was led by the Middle East, up 5.6%, driven by solid performance in Saudi Arabia and recovery in Egypt, and Indonesia, up 9.1%. This was supported by positive trading in the mature markets of Japan, which grew by 6.7%, and Australia, which grew by 3.9%. Elsewhere, both India and South East Asia exhibited steady growth, with the exception of Thailand which suffered from political instability in the first half of the year and saw a double digit decline in RevPAR.
On an underlying1 basis, revenue was up 2% and operating profit up 5%. This reflects solid like-for-like performance in our fee-based business, partially offset by investment in long-term business development and the political unrest in Thailand. Reported revenue increased 5% (10% CER) to $242m and operating profit decreased 2% (up 1% CER) to $84m, impacted by the receipt of $6m in liquidated damages during 2013.
We opened 4k rooms (19 hotels) including nine hotels in our focus markets of Indonesia and India, and the iconic InterContinental Double Bay Sydney. We signed 8k rooms (32 hotels), including the second Hotel Indigo property in the Middle East, a 1,000-room Holiday Inn in Manila and four InterContinental hotels across the region.
2015:
Investment into long-term business development will continue, and combined with a small number of minor refurbishments and contract renewals will have an approximately $3m negative impact on 2015 operating profit.
|
|
Greater China - Record year for openings and 9.5% fee revenue growth in our 30th anniversary year
|
|
Greater China contributed 11% of our operating profit before central overheads in the year. Over the last 30 years, we have developed the leading managed hotel business in Greater China with 78k rooms open and a further 54k rooms in the pipeline. We achieved our highest ever openings in the year of 11k rooms, increasing our system size by 14%, whilst signing 16k rooms, our best year for hotel signings since 2007. Having originally developed our business in tier one cities and the eastern seaboard, our more recent growth has focused on tier two and three cities. Tier two and three cities will generate long-term demand growth in the region and now represent two-thirds of our open rooms and over 90% of our pipeline rooms.
Comparable RevPAR increased 1.6%, led by an improvement in occupancy, with fourth quarter RevPAR down 2.0%. Total RevPAR declined by 3.4% as hotels opened in lower RevPAR markets. Our performance was significantly ahead of the industry, reflecting IHG's scale and operational excellence in the region, and was achieved in a challenging environment with slower macro-economic conditions, government austerity measures and protests in Hong Kong. Trading was strongest in tier one cities, especially Shanghai and Guangzhou, which benefited from high levels of transient and corporate business. Tier two and three cities continue to see strong levels of demand growth, but have been impacted by higher levels of new supply as these markets develop.
Reported revenue increased 3% (3% CER) to $242m driven by fee revenue up 9.5%, and operating profit was up 9% (10% CER) to $89m. Managed profit was up 24% to $63m, reflecting improvements in operating margin, 15% net room growth, and a small number of one-off items that contributed approximately $5m to EBIT. This was partially offset by performance of our owned InterContinental hotel in Hong Kong where operating profit fell $5m, due to the continuing redevelopment of the area adjacent to the hotel and protests in central Hong Kong.
We opened our 50th Holiday Inn Express hotel in 2014 and with 50 more in the pipeline, Holiday Inn Express is the largest international limited service brand in China. In February 2015, we opened our first hotel for the HUALUXE Hotels and Resorts brand, which is based on four key priorities that Chinese guests want and that IHG identified through an in depth Chinese consumer insights study.
2015:
We will invest a further $5m into regional overheads in our China business in 2015, particularly for the training and development of the highly skilled workforce needed to deliver our service commitment at our hotels, thereby allowing us to outperform for our owners, and grow our share of new hotels being developed.
|
|
1 Excluding owned asset disposals, significant liquidated damages, and results from managed lease hotels, at constant FY13 exchange rates (CER).
|
|
Capital allocation - commitment to efficient balance sheet and investing for growth
|
|
· Reducing the asset intensity of the business - progress on asset disposals
- Disposals of InterContinental Mark Hopkins San Francisco and an 80% interest in InterContinental New York Barclay completed in the first half of the year, with net cash proceeds of $346m.
- We accepted an offer of €330m for InterContinental Paris - Le Grand in the fourth quarter and proceeds are expected to be received in the first half of 2015.
|
|
· Investing for growth
- Acquisition of Kimpton Hotels & Restaurants LLC for $430m closed in January 2015.
- $271m gross capital expenditure in 2014 comprised: $154m maintenance capex and key money; $60m recyclable investments; and $57m system funded capital investments. $48m proceeds received from other assets and $20m system fund depreciation received via working capital, resulting in $203m of net capital expenditure.
- Gross capex guidance remains unchanged at up to $350m per annum into the medium term.
|
|
· Shareholder returns - over $1bn returned to shareholders in 2014
- Final dividend increase proposed of 11% to 52¢, which equates to a full year dividend of 77¢, up 10%, reflecting the cash generative nature of our business model.
- $763m returned to shareholders in July via $2.93 per share special dividend with 12 for 13 share consolidation and $500m share buyback programme completed, with 3.4m shares repurchased for $110m in the first half.
|
|
· Efficient balance sheet provides flexibility
- Year-end net debt of $1,533m (including $218m finance lease on InterContinental Boston) is up $380m on 2013 due to the return of funds to shareholders, partially offset by proceeds from asset disposals.
- Year-end borrowings position represents a net debt / EBITDA ratio of 2.1x, 2.6x on a pro forma basis including the $430m acquisition of Kimpton in January 2015.
|
|
Foreign exchange - volatile currency markets impact reported profit
|
|
Foreign exchange movements impacted 2014 reported profit by approximately $9m; underlying1 operating profit of $648m would have been $639m at actual 2014 exchange rates. This was driven by a weakening of certain currencies in Europe and AMEA versus the dollar, which reduced reported revenue, whilst the British pound appreciated in the first half increasing reported overheads.
Currency markets have been volatile in recent months with a significant strengthening of the US dollar, and we expect foreign exchange to have a continued impact on 2015 reported profit. If the prevailing exchange rates at the end of January 2015 had existed throughout 2014, 2014 reported operating profit would have reduced by a further $7m.
|
|
Interest, tax, and exceptional items
|
|
Interest: Net financial expenses increased by $7m to $80m reflecting an increase in average net debt levels following the payment of the special dividend, and the foreign exchange translation impact on interest on the two sterling denominated bonds. Financing costs include $19m in respect of the finance lease on InterContinental Boston.
|
|
Tax: Effective rate for 2014 is 31% (2013: 29%). 2015 tax rate expected to be low to mid 30s, as previously guided.
|
|
Exceptional operating items: Net exceptional operating gain of $29m for the full year comprised: $130m net gain on asset disposals; $14m charge relating to changes to the Venezuelan currency exchange rate; $29m charge relating primarily to structural efficiency programmes across IHG's Global Human Resources and Technology functions; $6m from a partial cash-out of the UK unfunded pension arrangements; $45m charge for restructuring the UK managed hotel portfolio; and $7m Kimpton acquisition transaction costs.
|
|
Appendix 1: RevPAR Movement Summary
|
||||||
|
Full Year 2014
|
Q4 2014
|
|||||
|
RevPAR
|
Rate
|
Occ.
|
RevPAR
|
Rate
|
Occ.
|
|
|
Group
|
6.1%
|
2.7%
|
2.2pts
|
5.1%
|
2.4%
|
1.7pts
|
|
Americas
|
7.4%
|
3.7%
|
2.4pts
|
7.0%
|
3.6%
|
2.0pts
|
|
Europe
|
5.1%
|
2.3%
|
1.9pts
|
4.2%
|
2.5%
|
1.1pts
|
|
AMEA
|
3.8%
|
2.4%
|
1.0pts
|
3.1%
|
1.5%
|
1.2pts
|
|
G. China
|
1.6%
|
(2.3)%
|
2.4pts
|
(2.0)%
|
(3.4)%
|
1.0pts
|
|
Appendix 2: Full Year System & Pipeline Summary (rooms)
|
|||||||
|
System
|
Pipeline
|
||||||
|
Openings
|
Removals
|
Net
|
Total
|
YoY%
|
Signings
|
Total
|
|
|
Group
|
41,052
|
(17,630)
|
23,422
|
710,295
|
3.4%
|
69,696
|
193,772
|
|
Americas
|
20,823
|
(12,230)
|
8,593
|
460,017
|
1.9%
|
38,108
|
86,195
|
|
Europe
|
5,353
|
(3,211)
|
2,142
|
104,208
|
2.1%
|
7,804
|
18,893
|
|
AMEA
|
4,228
|
(1,190)
|
3,038
|
67,876
|
4.7%
|
8,030
|
34,346
|
|
G. China
|
10,648
|
(999)
|
9,649
|
78,194
|
14.1%
|
15,754
|
54,338
|
|
Appendix 3: Full Year financial headlines
|
||||||||||||
|
Operating Profit $m
|
Total
|
Americas
|
Europe
|
AMEA
|
G. China
|
Central
|
||||||
|
2014
|
2013
|
2014
|
2013
|
2014
|
2013
|
2014
|
2013
|
2014
|
2013
|
2014
|
2013
|
|
|
Franchised
|
639
|
595
|
544
|
499
|
78
|
79
|
12
|
12
|
5
|
5
|
-
|
-
|
|
Managed
|
228
|
247
|
47
|
74
|
30
|
30
|
88
|
92
|
63
|
51
|
-
|
-
|
|
Owned & leased
|
77
|
111
|
18
|
30
|
14
|
30
|
3
|
4
|
42
|
47
|
-
|
-
|
|
Regional overheads
|
(138)
|
(130)
|
(65)
|
(53)
|
(33)
|
(34)
|
(19)
|
(22)
|
(21)
|
(21)
|
-
|
-
|
|
Profit pre central overheads
|
806
|
823
|
544
|
550
|
89
|
105
|
84
|
86
|
89
|
82
|
-
|
-
|
|
Central overheads
|
(155)
|
(155)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(155)
|
(155)
|
|
Group Operating profit
|
651
|
668
|
544
|
550
|
89
|
105
|
84
|
86
|
89
|
82
|
(155)
|
(155)
|
|
Total***
|
Americas
|
Europe
|
AMEA
|
G. China
|
|||||||||||||
|
Reported
|
Actual*
|
CER**
|
Actual*
|
CER**
|
Actual*
|
CER**
|
Actual*
|
CER**
|
Actual*
|
CER**
|
|||||||
|
Growth/ (decline)
|
(3)%
|
(1)%
|
(1)%
|
(1)%
|
(15)%
|
(13)%
|
(2)%
|
1%
|
9%
|
10%
|
|||||||
|
Underlying****
Growth/ (decline)
|
Total***
|
Americas
|
Europe
|
AMEA
|
G. China
|
||||||||||||
|
10%
|
8%
|
3%
|
5%
|
10%
|
|||||||||||||
|
Exchange rates:
|
GBP:USD
|
EUR:USD
|
* US dollar actual currency
|
||||||||||||||
|
2014
|
0.61
|
0.75
|
** Translated at constant 2013 exchange rates
|
||||||||||||||
|
2013
|
0.64
|
0.75
|
*** After central overheads
|
||||||||||||||
|
**** At CER and excluding: owned asset disposals, results from managed lease hotels and significant liquidated damages (see below for definitions)
|
|||||||||||||||||
|
Appendix 5: Definitions
|
|
CER: constant exchange rates with FY13 exchange rates applied to FY14.
Comparable RevPAR: Revenue per available room for hotels that have traded for a full 12 months in FY13 and FY14, 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 2014 $38m; 2013 $34m; EBIT 2014 $nil, 2013 $nil. Europe: Revenue 2014 $90m; 2013 $89m; EBIT 2014 $2m, 2013 $2m. AMEA: Revenue 2014 $41m; 2013 $21m; EBIT 2014 $4m, 2013 $1m.
Owned asset disposals: InterContinental Mark Hopkins San Francisco was sold on 27 March 2014 (2014: $9m revenue and $nil EBIT, 2013: $43m revenue and $6m EBIT); 80% of IHG's interest in the InterContinental New York Barclay was disposed of on 31 March 2014 retaining the remaining 20% in a joint venture (2014: $14m revenue and $(1)m EBIT, 2013: $75m revenue and $14m EBIT) and InterContinental London Park Lane was sold on 1 May 2013 (2013: $22m revenue and $8m EBIT).
Significant liquidated damages: $7m in 2014 ($4m Americas franchised in Q1, $3m Americas franchised in Q2); $46m in 2013 ($31m Americas managed in Q1, $9m Europe franchised in Q2, $6m AMEA managed in Q4).
Total gross revenue: total rooms revenue from franchised hotels and total hotel revenue from managed, owned and leased hotels. It is not revenue attributable to IHG, as it is derived mainly from hotels owned by third parties. The metric is highlighted as an indicator of the scale and reach of IHG's brands.
Total RevPAR: Revenue per available room including results from hotels that have opened or exited in either FY13 or FY14, reported at CER.
|
|
Appendix 6: Investor Information for proposed 2014 final dividend
|
|||
|
Ex-dividend date:
|
2 April 2015
|
Record date:
|
7 April 2015
|
|
Payment date:
|
15 May 2015
|
Dividend payment:
|
Ordinary shares: 33.8 pence per share; ADRs: 52.0 cents per ADR
|
|
For further information, please contact:
|
||
|
Investor Relations (David Kellett; Emma Parker; Matt Woollard):
|
+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 UK time on 17 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/prelims15. 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 3003 2666
0808 109 0700
+1 646 843 4608
IHG Investor
|
|
|
A replay of the conference call will also be available following the event - details are below.
|
||
|
Replay:
Pin:
|
+44 (0)20 3350 6902
4028159
|
|
|
US conference call and Q&A:
There will also be a conference call, primarily for US investors and analysts, at 9:00am Eastern Standard Time on 17 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 3003 2666
+1 646 843 4608
+1 866 966 5335
IHG Investor
|
|
|
A replay of the conference call will also be available following the event - details are below.
|
||
|
Replay:
Pin:
|
+44 (0)20 3350 6902
3290546
|
|
|
Website:
The full release and supplementary data will be available on our website from 7:00am (London time) on 17 February. The web address is www.ihgplc.com/prelims15.
|
||
|
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, HUALUXE® Hotels and Resorts, Crowne Plaza® Hotels & Resorts, Hotel Indigo®, EVEN™ Hotels, Holiday Inn® Hotels & Resorts, Holiday Inn Express®, Staybridge Suites® and Candlewood Suites®. In January 2015, IHG acquired Kimpton Hotels & Restaurants, the world's leading boutique hotel business.
IHG manages IHG® Rewards Club, the world's first and largest hotel loyalty programme with over 84 million members worldwide. The programme was relaunched in July 2013, offering enhanced benefits for members including free internet across all hotels, globally.
IHG franchises, leases, manages or owns over 4,800 hotels and more than 710,000 guest rooms in nearly 100 countries, with over 1,200 hotels in its development pipeline. Over 350,000 people work across IHG's hotels and corporate offices worldwide.
In January 2015 we completed the acquisition of Kimpton Hotels & Restaurants, adding 62 hotels (11,300 rooms) to our system size and 16 hotels to our development pipeline.
InterContinental Hotels Group PLC is the Group's holding company and is incorporated in Great Britain and registered in England and Wales.
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.ihg.com/media, www.twitter.com/ihg, www.facebook.com/ihg or 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
|
2014
|
2013
|
%
|
|
|
$m
|
$m
|
change
|
||
|
Revenue
|
||||
|
Americas
|
871
|
916
|
(4.9)
|
|
|
Europe
|
374
|
400
|
(6.5)
|
|
|
AMEA
|
242
|
230
|
5.2
|
|
|
Greater China
|
242
|
236
|
2.5
|
|
|
Central
|
129
|
121
|
6.6
|
|
|
____
|
____
|
___
|
||
|
1,858
|
1,903
|
(2.4)
|
||
|
____
|
____
|
____
|
||
|
Operating profit
|
||||
|
Americas
|
544
|
550
|
(1.1)
|
|
|
Europe
|
89
|
105
|
(15.2)
|
|
|
AMEA
|
84
|
86
|
(2.3)
|
|
|
Greater China
|
89
|
82
|
8.5
|
|
|
Central
|
(155)
|
(155)
|
-
|
|
|
____
|
____
|
___
|
||
|
Operating profit before exceptional items
|
651
|
668
|
(2.5)
|
|
|
Exceptional operating items
|
29
|
5
|
480.0
|
|
|
___
|
___
|
___
|
||
|
680
|
673
|
1.0
|
||
|
Net financial expenses
|
(80)
|
(73)
|
(9.6)
|
|
|
___
|
___
|
___
|
||
|
Profit before tax
|
600
|
600
|
-
|
|
|
___
|
___
|
___
|
||
|
Earnings per ordinary share
|
||||
|
Basic
|
158.3¢
|
140.9¢
|
12.3
|
|
|
Adjusted
|
158.3¢
|
158.3¢
|
-
|
|
|
Average US dollar to sterling exchange rate
|
$1 : £0.61
|
$1 : £0.64
|
(4.7)
|
|
|
12 months ended 31 December
|
|||
|
2014
|
2013
|
%
|
|
|
Global total gross revenue
|
$bn
|
$bn
|
change
|
|
InterContinental
|
4.7
|
4.5
|
4.4
|
|
Crowne Plaza
|
4.2
|
4.0
|
5.0
|
|
Hotel Indigo
|
0.3
|
0.2
|
50.0
|
|
Holiday Inn
|
6.4
|
6.2
|
3.2
|
|
Holiday Inn Express
|
5.7
|
5.2
|
9.6
|
|
Staybridge Suites
|
0.7
|
0.6
|
16.7
|
|
Candlewood Suites
|
0.6
|
0.6
|
-
|
|
Other brands
|
0.2
|
0.3
|
(33.3)
|
|
____
|
____
|
____
|
|
|
Total
|
22.8
|
21.6
|
5.6
|
|
____
|
____
|
____
|
|
|
Hotels
|
Rooms
|
||||
|
Global hotel and room count
at 31 December
|
2014
|
Change
over 2013
|
2014
|
Change
over 2013
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
180
|
2
|
61,235
|
1,132
|
|
|
Crowne Plaza
|
406
|
15
|
113,562
|
4,671
|
|
|
Hotel Indigo
|
61
|
6
|
6,731
|
532
|
|
|
EVEN Hotels
|
2
|
2
|
296
|
296
|
|
|
Holiday Inn*
|
1,212
|
(4)
|
225,159
|
582
|
|
|
Holiday Inn Express
|
2,365
|
107
|
229,110
|
14,513
|
|
|
Staybridge Suites
|
205
|
9
|
22,409
|
891
|
|
|
Candlewood Suites
|
322
|
10
|
30,708
|
930
|
|
|
Other
|
87
|
(4)
|
21,085
|
(125)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
4,840
|
143
|
710,295
|
23,422
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
4,096
|
119
|
514,984
|
12,797
|
|
|
Managed
|
735
|
24
|
192,121
|
11,397
|
|
|
Owned and leased
|
9
|
-
|
3,190
|
(772)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
4,840
|
143
|
710,295
|
23,422
|
|
|
____
|
____
|
______
|
_____
|
||
|
|
* Includes 42 Holiday Inn Resort properties (9,904 rooms) and 12 Holiday Inn Club Vacations (4,027 rooms) (2013: 38 Holiday Inn Resort properties (8,818 rooms) and 10 Holiday Inn Club Vacations (3,701 rooms)).
|
|
Hotels
|
Rooms
|
||||
|
Global pipeline
at 31 December
|
2014
|
Change
over 2013
|
2014
|
Change
over 2013
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
50
|
(1)
|
15,664
|
(1,196)
|
|
|
HUALUXE
|
24
|
3
|
7,551
|
747
|
|
|
Crowne Plaza
|
92
|
(2)
|
25,336
|
(3,033)
|
|
|
Hotel Indigo
|
63
|
12
|
9,096
|
2,289
|
|
|
EVEN Hotels
|
3
|
(2)
|
584
|
(296)
|
|
|
Holiday Inn*
|
269
|
5
|
52,713
|
2,472
|
|
|
Holiday Inn Express
|
522
|
49
|
62,954
|
8,210
|
|
|
Staybridge Suites
|
99
|
19
|
10,908
|
2,180
|
|
|
Candlewood Suites
|
89
|
9
|
7,717
|
803
|
|
|
Other
|
10
|
9
|
1,249
|
1,135
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
1,221
|
101
|
193,772
|
13,311
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
843
|
65
|
94,730
|
7,945
|
|
|
Managed
|
377
|
38
|
98,838
|
5,662
|
|
|
Owned and Leased
|
1
|
(2)
|
204
|
(296)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
1,221
|
101
|
193,772
|
13,311
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
||||
|
Global pipeline signings
at 31 December
|
2014
|
Change
over 2013
|
2014
|
Change
over 2013
|
|
|
Total
|
463
|
19
|
69,696
|
4,235
|
|
|
____
|
____
|
______
|
_____
|
||
|
|
|
|
|
* Includes 18 Holiday Inn Resort properties (4,412 rooms) and nil Holiday Inn Club Vacations (2013: 14 Holiday Inn Resort properties (3,163 rooms) and one Holiday Inn Club Vacations (120 rooms)).
|
|
12 months ended 31 December
|
|||||
|
2014
|
2013
|
%
|
|||
|
Americas results
|
$m
|
$m
|
change
|
||
|
Revenue
|
|||||
|
Franchised
|
630
|
576
|
9.4
|
||
|
Managed
|
103
|
128
|
(19.5)
|
||
|
Owned and leased
|
138
|
212
|
(34.9)
|
||
|
____
|
____
|
____
|
|||
|
Total
|
871
|
916
|
(4.9)
|
||
|
____
|
____
|
____
|
|||
|
Operating profit before exceptional items
|
|||||
|
Franchised
|
544
|
499
|
9.0
|
||
|
Managed
|
47
|
74
|
(36.5)
|
||
|
Owned and leased
|
18
|
30
|
(40.0)
|
||
|
____
|
____
|
____
|
|||
|
609
|
603
|
1.0
|
|||
|
Regional overheads
|
(65)
|
(53)
|
(22.6)
|
||
|
____
|
____
|
____
|
|||
|
Total
|
544
|
550
|
(1.1)
|
||
|
____
|
____
|
____
|
|||
|
Americas Comparable RevPAR movement on previous year
|
12 months ended
31 December
2014
|
|
|
Franchised
|
||
|
Crowne Plaza
|
6.9%
|
|
|
Holiday Inn
|
7.9%
|
|
|
Holiday Inn Express
|
7.0%
|
|
|
All brands
|
7.2%
|
|
|
Managed
|
||
|
InterContinental
|
6.9%
|
|
|
Crowne Plaza
|
12.7%
|
|
|
Holiday Inn
|
9.0%
|
|
|
Staybridge Suites
|
9.7%
|
|
|
Candlewood Suites
|
11.7%
|
|
|
All brands
|
8.9%
|
|
|
Owned and leased
|
||
|
All brands
|
11.2%
|
|
|
Hotels
|
Rooms
|
||||
|
Americas hotel and room count
at 31 December
|
2014
|
Change
over 2013
|
2014
|
Change
over 2014
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
50
|
(1)
|
16,897
|
(556)
|
|
|
Hotel Indigo
|
39
|
2
|
4,551
|
207
|
|
|
EVEN Hotels
|
2
|
2
|
296
|
296
|
|
|
Crowne Plaza
|
181
|
5
|
48,366
|
1,309
|
|
|
Holiday Inn*
|
770
|
(16)
|
136,280
|
(2,550)
|
|
|
Holiday Inn Express
|
2,060
|
75
|
182,601
|
8,170
|
|
|
Staybridge Suites
|
197
|
9
|
21,200
|
891
|
|
|
Candlewood Suites
|
322
|
10
|
30,708
|
930
|
|
|
Other
|
78
|
(3)
|
19,118
|
(104)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
3,699
|
83
|
460,017
|
8,593
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
3,477
|
83
|
417,215
|
8,340
|
|
|
Managed
|
217
|
-
|
41,172
|
1,025
|
|
|
Owned and leased
|
5
|
-
|
1,630
|
(772)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
3,699
|
83
|
460,017
|
8,593
|
|
|
____
|
____
|
______
|
_____
|
||
|
|
* Includes 20 Holiday Inn Resort properties (4,864 rooms) and 12 Holiday Inn Club Vacations (4,027 rooms) (2013: 18 Holiday Inn Resort properties (4,438 rooms) and 10 Holiday Inn Club Vacations (3,701 rooms)).
|
|
|
|
|
Hotels
|
Rooms
|
||||
|
Americas pipeline
at 31 December
|
2014
|
Change
over 2013
|
2014
|
Change
over 2013
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
7
|
1
|
2,337
|
900
|
|
|
Hotel Indigo
|
31
|
8
|
4,259
|
1,141
|
|
|
EVEN Hotels
|
3
|
(2)
|
584
|
(296)
|
|
|
Crowne Plaza
|
18
|
2
|
3,206
|
(22)
|
|
|
Holiday Inn*
|
139
|
-
|
20,155
|
811
|
|
|
Holiday Inn Express
|
389
|
31
|
37,125
|
3,637
|
|
|
Staybridge Suites
|
90
|
19
|
9,594
|
2,099
|
|
|
Candlewood Suites
|
89
|
9
|
7,717
|
803
|
|
|
Other
|
10
|
9
|
1,218
|
1,104
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
776
|
77
|
86,195
|
10,177
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
740
|
62
|
78,980
|
6,961
|
|
|
Managed
|
35
|
17
|
7,011
|
3,512
|
|
|
Owned and leased
|
1
|
(2)
|
204
|
(296)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
776
|
77
|
86,195
|
10,177
|
|
|
____
|
____
|
______
|
_____
|
||
|
|
* Includes nine Holiday Inn Resort properties (1,916 rooms) and nil Holiday Inn Club Vacations (2013: five Holiday Inn Resort properties (694 rooms) and one Holiday Inn Club Vacations (120 rooms)).
|
|
|
|
|
12 months ended 31 December
|
|||||
|
2014
|
2013
|
%
|
|||
|
Europe results
|
$m
|
$m
|
change
|
||
|
Revenue
|
|||||
|
Franchised
|
104
|
104
|
-
|
||
|
Managed
|
159
|
156
|
1.9
|
||
|
Owned and leased
|
111
|
140
|
(20.7)
|
||
|
____
|
____
|
____
|
|||
|
Total
|
374
|
400
|
(6.5)
|
||
|
____
|
____
|
____
|
|||
|
Operating profit before exceptional items
|
|||||
|
Franchised
|
78
|
79
|
(1.3)
|
||
|
Managed
|
30
|
30
|
-
|
||
|
Owned and leased
|
14
|
30
|
(53.3)
|
||
|
____
|
____
|
____
|
|||
|
122
|
139
|
(12.2)
|
|||
|
Regional overheads
|
(33)
|
(34)
|
2.9
|
||
|
____
|
____
|
____
|
|||
|
Total
|
89
|
105
|
(15.2)
|
||
|
____
|
____
|
____
|
|||
|
Europe comparable RevPAR movement on previous year
|
12 months ended
31 December
2014
|
|||
|
Franchised
|
||||
|
All brands
|
5.3%
|
|||
|
Managed
|
||||
|
All brands
|
5.4%
|
|||
|
Owned and leased
|
||||
|
InterContinental
|
(4.7)%
|
|||
|
Hotels
|
Rooms
|
||||
|
Europe hotel and room count
at 31 December
|
2014
|
Change
over 2013
|
2014
|
Change
over 2013
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
30
|
(1)
|
9,372
|
(153)
|
|
|
Hotel Indigo
|
17
|
4
|
1,568
|
325
|
|
|
Crowne Plaza
|
83
|
-
|
19,395
|
(127)
|
|
|
Holiday Inn*
|
284
|
2
|
45,722
|
101
|
|
|
Holiday Inn Express
|
226
|
11
|
27,138
|
1,767
|
|
|
Staybridge Suites
|
5
|
-
|
784
|
-
|
|
|
Other
|
2
|
2
|
229
|
229
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
647
|
18
|
104,208
|
2,142
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
565
|
37
|
84,016
|
4,499
|
|
|
Managed
|
81
|
(19)
|
19,722
|
(2,357)
|
|
|
Owned and leased
|
1
|
-
|
470
|
-
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
647
|
18
|
104,208
|
2,142
|
|
|
____
|
____
|
______
|
_____
|
||
|
|
* 2014 and 2013 include two Holiday Inn Resort properties (212 rooms).
|
|
Hotels
|
Rooms
|
||||
|
Europe pipeline
at 31 December
|
2014
|
Change
over 2013
|
2014
|
Change
over 2013
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
3
|
1
|
845
|
192
|
|
|
Hotel Indigo
|
12
|
(3)
|
1,368
|
(208)
|
|
|
Crowne Plaza
|
14
|
2
|
2,917
|
293
|
|
|
Holiday Inn
|
37
|
2
|
6,944
|
332
|
|
|
Holiday Inn Express
|
44
|
1
|
6,374
|
358
|
|
|
Staybridge Suites
|
4
|
1
|
414
|
116
|
|
|
Other
|
-
|
-
|
31
|
31
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
114
|
4
|
18,893
|
1,114
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
95
|
(2)
|
13,996
|
(123)
|
|
|
Managed
|
19
|
6
|
4,897
|
1,237
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
114
|
4
|
18,893
|
1,114
|
|
|
____
|
____
|
______
|
_____
|
||
|
12 months ended 31 December
|
|||||
|
2014
|
2013
|
%
|
|||
|
AMEA results
|
$m
|
$m
|
change
|
||
|
Revenue
|
|||||
|
Franchised
|
16
|
16
|
-
|
||
|
Managed
|
187
|
170
|
10.0
|
||
|
Owned and leased
|
39
|
44
|
(11.4)
|
||
|
____
|
____
|
____
|
|||
|
Total
|
242
|
230
|
5.2
|
||
|
____
|
____
|
____
|
|||
|
Operating profit before exceptional items
|
|||||
|
Franchised
|
12
|
12
|
-
|
||
|
Managed
|
88
|
92
|
(4.3)
|
||
|
Owned and leased
|
3
|
4
|
(25.0)
|
||
|
____
|
____
|
____
|
|||
|
103
|
108
|
(4.6)
|
|||
|
Regional overheads
|
(19)
|
(22)
|
13.6
|
||
|
____
|
____
|
____
|
|||
|
Total
|
84
|
86
|
(2.3)
|
||
|
____
|
____
|
____
|
|||
|
AMEA comparable RevPAR movement on previous year
|
12 months ended
31 December
2014
|
|
|
Franchised
|
||
|
All brands
|
1.7%
|
|
|
Managed
|
||
|
All bands
|
4.4%
|
|
|
Hotels
|
Rooms
|
||||
|
AMEA hotel and room count
at 31 December
|
2014
|
Change
over 2013
|
2014
|
Change
over 2013
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
67
|
-
|
21,424
|
41
|
|
|
Crowne Plaza
|
69
|
2
|
19,688
|
610
|
|
|
Holiday Inn*
|
85
|
4
|
19,750
|
1,286
|
|
|
Holiday Inn Express
|
24
|
8
|
5,295
|
1,795
|
|
|
Staybridge Suites
|
3
|
-
|
425
|
-
|
|
|
Other
|
5
|
(5)
|
1,294
|
(694)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
253
|
9
|
67,876
|
3,038
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
50
|
(1)
|
11,569
|
(42)
|
|
|
Managed
|
201
|
10
|
55,720
|
3,080
|
|
|
Owned and leased
|
2
|
-
|
587
|
-
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
253
|
9
|
67,876
|
3,038
|
|
|
____
|
____
|
______
|
_____
|
||
|
|
|
|
|
* Includes 14 Holiday Inn Resort properties (3,003 rooms) (2013: 14 Holiday Inn Resort properties (2,965 rooms)).
|
|
Hotels
|
Rooms
|
||||
|
AMEA pipeline
at 31 December
|
2014
|
Change
over 2013
|
2014
|
Change
over 2013
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
22
|
1
|
5,804
|
426
|
|
|
Crowne Plaza
|
16
|
2
|
4,412
|
364
|
|
|
Holiday Inn*
|
50
|
1
|
13,230
|
889
|
|
|
Holiday Inn Express
|
39
|
0
|
8,177
|
197
|
|
|
Staybridge Suites
|
5
|
(1)
|
900
|
(35)
|
|
|
Hotel Indigo
|
10
|
2
|
1,823
|
431
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
142
|
5
|
34,346
|
2,272
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
8
|
5
|
1,754
|
1,107
|
|
|
Managed
|
134
|
-
|
32,592
|
1,165
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
142
|
5
|
34,346
|
2,272
|
|
|
____
|
____
|
______
|
_____
|
||
|
|
|
|
|
* Includes seven Holiday Inn Resort properties (1,729 rooms) (2013: six Holiday Inn Resort properties (1,579 rooms)).
|
|
12 months ended 31 December
|
|||||
|
2014
|
2013
|
%
|
|||
|
Greater China results
|
$m
|
$m
|
change
|
||
|
Revenue
|
|||||
|
Franchised
|
4
|
3
|
33.3
|
||
|
Managed
|
99
|
92
|
7.6
|
||
|
Owned and leased
|
139
|
141
|
(1.4)
|
||
|
____
|
____
|
____
|
|||
|
Total
|
242
|
236
|
2.5
|
||
|
____
|
____
|
____
|
|||
|
Operating profit before exceptional items
|
|||||
|
Franchised
|
5
|
5
|
-
|
||
|
Managed
|
63
|
51
|
23.5
|
||
|
Owned and leased
|
42
|
47
|
(10.6)
|
||
|
____
|
____
|
____
|
|||
|
110
|
103
|
6.8
|
|||
|
Regional overheads
|
(21)
|
(21)
|
-
|
||
|
____
|
____
|
____
|
|||
|
Total
|
89
|
82
|
8.5
|
||
|
____
|
____
|
____
|
|||
|
Greater China comparable RevPAR movement on previous year
|
12 months ended
31 December
2014
|
|
|
Managed
|
||
|
All brands
|
1.3%
|
|
|
Owned and leased
|
||
|
InterContinental
|
(1.0)%
|
|
|
Hotels
|
Rooms
|
||||
|
Greater China hotel and room count
at 31 December
|
2014
|
Change
over 2013
|
2014
|
Change
over 2013
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
33
|
4
|
13,542
|
1,800
|
|
|
Crowne Plaza
|
73
|
8
|
26,113
|
2,879
|
|
|
Hotel Indigo
|
5
|
-
|
612
|
-
|
|
|
Holiday Inn*
|
73
|
6
|
23,407
|
1,745
|
|
|
Holiday Inn Express
|
55
|
13
|
14,076
|
2,781
|
|
|
Other
|
2
|
2
|
444
|
444
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
241
|
33
|
78,194
|
9,649
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
4
|
-
|
2,184
|
-
|
|
|
Managed
|
236
|
33
|
75,507
|
9,649
|
|
|
Owned and leased
|
1
|
-
|
503
|
-
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
241
|
33
|
78,194
|
9,649
|
|
|
____
|
____
|
______
|
_____
|
||
|
|
|
|
|
* Includes six Holiday Inn Resort properties (1,825 rooms) (2013: four Holiday Inn Resort properties (1,203 rooms)).
|
|
|
|
|
One hotel (999 rooms) was removed in 2014, compared to two hotels (725 rooms) in 2013.
|
|
|
|
|
Hotels
|
Rooms
|
||||
|
Greater China pipeline
at 31 December
|
2014
|
Change
over 2013
|
2014
|
Change
over 2013
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
18
|
(4)
|
6,678
|
(2,714)
|
|
|
HUALUXE
|
24
|
3
|
7,551
|
747
|
|
|
Crowne Plaza
|
44
|
(8)
|
14,801
|
(3,668)
|
|
|
Hotel Indigo
|
10
|
5
|
1,646
|
925
|
|
|
Holiday Inn*
|
43
|
2
|
12,384
|
440
|
|
|
Holiday Inn Express
|
50
|
17
|
11,278
|
4,018
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
189
|
15
|
54,338
|
(252)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Managed
|
189
|
15
|
54,338
|
(252)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
189
|
15
|
54,338
|
(252)
|
|
|
____
|
____
|
______
|
_____
|
||
|
|
|
|
|
* Includes two Holiday Inn Resort properties (767 rooms) (2013: three Holiday Inn Resort properties (890 rooms)).
|
|
12 months ended 31 December
|
||||
|
2014
|
2013
|
%
|
||
|
Central results
|
$m
|
$m
|
change
|
|
|
Revenue
|
129
|
121
|
6.6
|
|
|
Gross central costs
|
(284)
|
(276)
|
(2.9)
|
|
|
____
|
____
|
____
|
||
|
Net central costs
|
(155)
|
(155)
|
-
|
|
|
____
|
____
|
____
|
||
|
12 months ended 31 December
|
||||
|
2014
|
2013
|
%
|
||
|
System Fund assessments
|
$m
|
$m
|
change
|
|
|
Assessment fees and contributions received from hotels
|
1,271
|
1,154
|
10.1
|
|
|
Proceeds from sale of IHG Rewards Club points
|
196
|
153
|
28.1
|
|
|
____
|
____
|
____
|
||
|
Total
|
1,467
|
1,307
|
12.2
|
|
|
____
|
____
|
____
|
||
|
2014
|
20131
|
||
|
$m
|
$m
|
||
|
Borrowings:
|
|||
|
Sterling
|
1,028
|
671
|
|
|
US dollar
|
557
|
709
|
|
|
Euros
|
103
|
11
|
|
|
Other
|
7
|
10
|
|
|
Cash and cash equivalents
|
|||
|
Sterling
|
(21)
|
(87)
|
|
|
US dollar
|
(54)
|
(40)
|
|
|
Euros
|
(25)
|
(15)
|
|
|
Canadian dollar
|
(14)
|
(25)
|
|
|
Chinese renminbi
|
(8)
|
(15)
|
|
|
Other
|
(40)
|
(66)
|
|
|
____
|
____
|
||
|
Net debt2
|
1,533
|
1,153
|
|
|
____
|
____
|
||
|
Average debt levels
|
1,322
|
985
|
|
|
____
|
____
|
||
|
Year ended 31 December 2014
|
Year ended 31 December 2013
|
||||||
|
Before
exceptional
items
|
Exceptional
items
(note 4)
|
Total
|
Before
exceptional
items
|
Exceptional
items
(note 4)
|
Total
|
||
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||
|
Continuing operations
|
|||||||
|
Revenue (note 3)
|
1,858
|
-
|
1,858
|
1,903
|
-
|
1,903
|
|
|
Cost of sales
|
(741)
|
-
|
(741)
|
(784)
|
-
|
(784)
|
|
|
Administrative expenses
|
(382)
|
(101)
|
(483)
|
(374)
|
(167)
|
(541)
|
|
|
Share of (losses)/profits of associates and joint ventures
|
(4)
|
-
|
(4)
|
2
|
6
|
8
|
|
|
Other operating income and expenses
|
16
|
130
|
146
|
6
|
166
|
172
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
747
|
29
|
776
|
753
|
5
|
758
|
||
|
Depreciation and amortisation
|
(96)
|
-
|
(96)
|
(85)
|
-
|
(85)
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Operating profit (note 3)
|
651
|
29
|
680
|
668
|
5
|
673
|
|
|
Financial income
|
3
|
-
|
3
|
5
|
-
|
5
|
|
|
Financial expenses
|
(83)
|
-
|
(83)
|
(78)
|
-
|
(78)
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Profit before tax
|
571
|
29
|
600
|
595
|
5
|
600
|
|
|
Tax (note 5)
|
(179)
|
(29)
|
(208)
|
(175)
|
(51)
|
(226)
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Profit for the year from continuing operations
|
392
|
-
|
392
|
420
|
(46)
|
374
|
|
|
====
|
====
|
====
|
====
|
====
|
====
|
||
|
Attributable to:
|
|||||||
|
Equity holders of the parent
|
391
|
-
|
391
|
418
|
(46)
|
372
|
|
|
Non-controlling interest
|
1
|
-
|
1
|
2
|
-
|
2
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
392
|
-
|
392
|
420
|
(46)
|
374
|
||
|
====
|
====
|
====
|
====
|
====
|
====
|
||
|
Earnings per ordinary share
(note 6)
|
|||||||
|
Continuing and total operations:
|
|||||||
|
Basic
|
158.3¢
|
140.9¢
|
|||||
|
Diluted
|
156.4¢
|
139.3¢
|
|||||
|
Adjusted
|
158.3¢
|
158.3¢
|
|||||
|
Adjusted diluted
|
156.4¢
|
156.6¢
|
|||||
|
====
|
====
|
====
|
====
|
||||
|
2014
Year ended
31 December
$m
|
2013
Year ended
31 December
$m
|
||
|
Profit for the year
|
392
|
374
|
|
|
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 $1m (2013 $nil)
|
11
|
28
|
|
|
Exchange gains/(losses) on retranslation of foreign operations, net of related tax credit of $1m (2013 $2m)
|
42
|
(35)
|
|
|
Exchange losses reclassified to profit on hotel disposal
|
-
|
46
|
|
|
____
|
____
|
||
|
53
|
39
|
||
|
Items that will not be reclassified to profit or loss:
|
|||
|
Re-measurement (losses)/gains on defined benefit plans, net of related tax credit of $7m (2013 charge of $20m)
|
(18)
|
20
|
|
|
Tax related to pension contributions
|
2
|
-
|
|
|
____
|
____
|
||
|
(16)
|
20
|
||
|
____
|
____
|
||
|
Total other comprehensive income for the year
|
37
|
59
|
|
|
____
|
____
|
||
|
Total comprehensive income for the year
|
429
|
433
|
|
|
====
|
====
|
||
|
Attributable to:
|
|||
|
Equity holders of the parent
|
428
|
433
|
|
|
Non-controlling interest
|
1
|
-
|
|
|
_____
|
_____
|
||
|
429
|
433
|
||
|
=====
|
=====
|
||
|
Year ended 31 December 2014
|
|||||
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
At beginning of the year
|
189
|
(2,605)
|
2,334
|
8
|
(74)
|
|
Total comprehensive income for the year
|
-
|
53
|
375
|
1
|
429
|
|
Repurchase of shares
|
-
|
-
|
(110)
|
-
|
(110)
|
|
Transaction costs relating to shareholder returns
|
-
|
-
|
(1)
|
-
|
(1)
|
|
Movement in shares in employee share trusts
|
-
|
2
|
(60)
|
-
|
(58)
|
|
Equity-settled share-based cost
|
-
|
-
|
28
|
-
|
28
|
|
Tax related to share schemes
|
-
|
-
|
12
|
-
|
12
|
|
Equity dividends paid
|
-
|
-
|
(942)
|
(1)
|
(943)
|
|
Exchange adjustments
|
(11)
|
11
|
-
|
-
|
-
|
|
_____
|
_____
|
____
|
____
|
____
|
|
|
At end of the year
|
178
|
(2,539)
|
1,636
|
8
|
(717)
|
|
=====
|
=====
|
====
|
====
|
====
|
|
|
Year ended 31 December 2013
|
|||||
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
At beginning of the year
|
179
|
(2,652)
|
2,781
|
9
|
317
|
|
Total comprehensive income for the year
|
-
|
41
|
392
|
-
|
433
|
|
Issue of ordinary shares
|
5
|
-
|
-
|
-
|
5
|
|
Repurchase of shares
|
-
|
-
|
(283)
|
-
|
(283)
|
|
Movement in shares in employee share trusts
|
-
|
11
|
(61)
|
-
|
(50)
|
|
Equity-settled share-based cost
|
-
|
-
|
27
|
-
|
27
|
|
Tax related to share schemes
|
-
|
-
|
11
|
-
|
11
|
|
Equity dividends paid
|
-
|
-
|
(533)
|
(1)
|
(534)
|
|
Exchange adjustments
|
5
|
(5)
|
-
|
-
|
-
|
|
_____
|
_____
|
____
|
____
|
____
|
|
|
At end of the year
|
189
|
(2,605)
|
2,334
|
8
|
(74)
|
|
=====
|
=====
|
====
|
====
|
====
|
|
|
*
|
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.
|
|
2014
31 December
|
2013
31 December
(restated*)
|
2012
31 December
(restated*)
|
|
|
$m
|
$m
|
$m
|
|
|
ASSETS
|
|||
|
Property, plant and equipment
|
741
|
1,169
|
1,056
|
|
Goodwill
|
74
|
80
|
93
|
|
Intangible assets
|
569
|
438
|
354
|
|
Investment in associates and joint ventures
|
116
|
85
|
84
|
|
Trade and other receivables
|
3
|
-
|
-
|
|
Retirement benefit assets
|
8
|
7
|
99
|
|
Other financial assets
|
252
|
236
|
155
|
|
Non-current tax receivable
|
34
|
16
|
24
|
|
Deferred tax assets
|
87
|
108
|
204
|
|
_____
|
_____
|
_____
|
|
|
Total non-current assets
|
1,884
|
2,139
|
2,069
|
|
_____
|
_____
|
_____
|
|
|
Inventories
|
3
|
4
|
4
|
|
Trade and other receivables
|
448
|
423
|
422
|
|
Current tax receivable
|
4
|
12
|
31
|
|
Derivative financial instruments
|
2
|
1
|
2
|
|
Other financial assets
|
5
|
12
|
6
|
|
Cash and cash equivalents
|
162
|
248
|
387
|
|
_____
|
_____
|
_____
|
|
|
Total current assets
|
624
|
700
|
852
|
|
Assets classified as held for sale
|
310
|
228
|
534
|
|
_____
|
_____
|
______
|
|
|
Total assets (note 3)
|
2,818
|
3,067
|
3,455
|
|
=====
|
=====
|
=====
|
|
|
LIABILITIES
|
|||
|
Loans and other borrowings
|
(126)
|
(130)
|
(208)
|
|
Trade and other payables
|
(769)
|
(748)
|
(709)
|
|
Provisions
|
(1)
|
(3)
|
(1)
|
|
Current tax payable
|
(47)
|
(47)
|
(54)
|
|
_____
|
_____
|
_____
|
|
|
Total current liabilities
|
(943)
|
(928)
|
(972)
|
|
_____
|
_____
|
_____
|
|
|
Loans and other borrowings
|
(1,569)
|
(1,269)
|
(1,242)
|
|
Derivative financial instruments
|
-
|
(11)
|
(19)
|
|
Retirement benefit obligations
|
(146)
|
(184)
|
(187)
|
|
Trade and other payables
|
(627)
|
(574)
|
(563)
|
|
Provisions
|
(9)
|
-
|
(1)
|
|
Deferred tax liabilities
|
(147)
|
(175)
|
(93)
|
|
_____
|
_____
|
______
|
|
|
Total non-current liabilities
|
(2,498)
|
(2,213)
|
(2,105)
|
|
Liabilities classified as held for sale
|
(94)
|
-
|
(61)
|
|
_____
|
_____
|
_____
|
|
|
Total liabilities
|
(3,535)
|
(3,141)
|
(3,138)
|
|
======
|
======
|
======
|
|
|
Net (liabilities)/assets
|
(717)
|
(74)
|
317
|
|
======
|
======
|
======
|
|
|
EQUITY
|
|||
|
Equity share capital
|
178
|
189
|
179
|
|
Capital redemption reserve
|
12
|
12
|
11
|
|
Shares held by employee share trusts
|
(35)
|
(38)
|
(48)
|
|
Other reserves
|
(2,896)
|
(2,906)
|
(2,901)
|
|
Unrealised gains and losses reserve
|
111
|
100
|
72
|
|
Currency translation reserve
|
269
|
227
|
214
|
|
Retained earnings
|
1,636
|
2,334
|
2,781
|
|
_____
|
______
|
_____
|
|
|
IHG shareholders' equity
|
(725)
|
(82)
|
308
|
|
Non-controlling interest
|
8
|
8
|
9
|
|
_____
|
______
|
_____
|
|
|
Total equity
|
(717)
|
(74)
|
317
|
|
=====
|
======
|
=====
|
|
2014
Year ended
31 December
|
2013
Year ended
31 December
|
||
|
$m
|
$m
|
||
|
Profit for the year
|
392
|
374
|
|
|
Adjustments for:
|
|||
|
Net financial expenses
|
80
|
73
|
|
|
Income tax charge
|
208
|
226
|
|
|
Depreciation and amortisation
|
96
|
85
|
|
|
Other exceptional operating items
|
(29)
|
(5)
|
|
|
Equity-settled share-based cost
|
21
|
22
|
|
|
Dividends from associates and joint ventures
|
2
|
5
|
|
|
Other items
|
4
|
2
|
|
|
_____
|
_____
|
||
|
Operating cash flow before movements in working capital
|
774
|
782
|
|
|
Net change in loyalty programme liability and System Fund surplus
|
58
|
61
|
|
|
Other changes in net working capital
|
43
|
(1)
|
|
|
Utilisation of provisions
|
(2)
|
(3)
|
|
|
Retirement benefit contributions, net of costs
|
(6)
|
(18)
|
|
|
Cash flows relating to exceptional operating items
|
(114)
|
(33)
|
|
|
_____
|
_____
|
||
|
Cash flow from operations
|
753
|
788
|
|
|
Interest paid
|
(76)
|
(74)
|
|
|
Interest received
|
2
|
2
|
|
|
Tax paid on operating activities
|
(136)
|
(92)
|
|
|
_____
|
_____
|
||
|
Net cash from operating activities
|
543
|
624
|
|
|
_____
|
_____
|
||
|
Cash flow from investing activities
|
|||
|
Purchase of property, plant and equipment
|
(84)
|
(159)
|
|
|
Purchase of intangible assets
|
(162)
|
(86)
|
|
|
Investment in other financial assets
|
(5)
|
(154)
|
|
|
Investment in associates and joint ventures
|
(15)
|
(10)
|
|
|
Loan advances to associates and joint ventures
|
(3)
|
-
|
|
|
Capitalised interest paid
|
(2)
|
-
|
|
|
Disposal of hotel assets, net of costs
|
345
|
460
|
|
|
Proceeds from other financial assets
|
49
|
109
|
|
|
Distribution from associate on sale of hotel
|
-
|
17
|
|
|
Proceeds from other associates and joint ventures
|
-
|
3
|
|
|
Tax paid on disposals
|
-
|
(5)
|
|
|
_____
|
_____
|
||
|
Net cash from investing activities
|
123
|
175
|
|
|
_____
|
_____
|
||
|
Cash flow from financing activities
|
|||
|
Proceeds from the issue of share capital
|
-
|
5
|
|
|
Purchase of own shares
|
(110)
|
(283)
|
|
|
Purchase of own shares by employee share trusts
|
(68)
|
(44)
|
|
|
Dividends paid to shareholders
|
(942)
|
(533)
|
|
|
Dividend paid to non-controlling interests
|
(1)
|
(1)
|
|
|
Transaction costs relating to shareholder returns
|
(1)
|
-
|
|
|
Increase/(decrease) in borrowings
|
382
|
(1)
|
|
|
Close-out of currency swaps
|
4
|
-
|
|
|
_____
|
_____
|
||
|
Net cash from financing activities
|
(736)
|
(857)
|
|
|
_____
|
_____
|
||
|
Net movement in cash and cash equivalents in the year
|
(70)
|
(58)
|
|
|
Cash and cash equivalents, net of overdrafts, at beginning of the year
|
134
|
195
|
|
|
Exchange rate effects
|
(9)
|
(3)
|
|
|
_____
|
_____
|
||
|
Cash and cash equivalents, net of overdrafts, at end of the year
|
55
|
134
|
|
|
=====
|
=====
|
||
|
1.
|
Basis of preparation
|
|
The audited consolidated financial statements of InterContinental Hotels Group PLC (the Group or IHG) for the year ended 31 December 2014 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 changes listed below, they have been prepared on a consistent basis using the accounting policies set out in the InterContinental Hotels Group PLC (the Group or IHG) Annual Report and Financial Statements for the year ended 31 December 2013.
|
|
|
With effect from 1 January 2014, the Group has adopted 'Offsetting Financial Assets and Financial Liabilities' (Amendments to IAS 32). The amendment clarifies that to offset financial assets and liabilities, the Group's right of offset must be legally enforceable in the normal course of business, in the event of default, and in the event of insolvency or bankruptcy of the Group and all of the counterparties. Following a detailed review of the Group's cash pooling arrangements which have previously been presented net within cash and cash equivalents, management have determined that the right of offset is not enforceable in all of the above circumstances. As a result, the overdrafts
within the cash pools are now shown within current loans and other borrowings. The amendments to IAS 32 are applicable retrospectively, requiring the restatement of prior year comparatives and the presentation of a third statement of financial position as at 31 December 2012. The adoption of the amendments to IAS 32 increases cash and cash equivalents and current loans and other borrowings by $107m in 2014 (2013 $114m, 2012 $192m) but has no impact on the net financial position of the Group nor the reporting of net debt. Cash and cash equivalents presented in the Group statement of cash flows continue to be presented net of overdrafts, as permitted by IAS 7 'Statement of Cash Flows'.
With effect from 1 January 2014, the Group has also adopted Amendment to IAS 36 'Impairment of Assets - Recoverable Amount Disclosures for Non-Financial Assets', Amendment to IAS 39 'Novation of Derivatives and Continuation of Hedge Accounting' and IFRIC 21 'Levies'. The adoption of these amendments to standards and interpretations has had no material impact on the Group's financial performance or position and there has been no requirement to restate prior year comparatives.
|
|
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= £0.61 (2013 $1=£0.64). In the case of the euro, the translation rate is $1 = €0.75 (2013 $1 = €0.75).
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=£0.64 (2013 $1 = £0.60). In the case of the euro, the translation rate is $1 = €0.82 (2013 $1 = €0.73).
|
|
3.
|
Segmental information
|
||
|
Revenue
|
|||
|
2014
|
2013
|
||
|
$m
|
$m
|
||
|
Americas
|
871
|
916
|
|
|
Europe
|
374
|
400
|
|
|
AMEA
|
242
|
230
|
|
|
Greater China
|
242
|
236
|
|
|
Central
|
129
|
121
|
|
|
____
|
____
|
||
|
Total revenue
|
1,858
|
1,903
|
|
|
====
|
====
|
||
|
All results relate to continuing operations.
|
|||
|
Profit
|
2014
$m
|
2013
$m
|
|
|
Americas
|
544
|
550
|
|
|
Europe
|
89
|
105
|
|
|
AMEA
|
84
|
86
|
|
|
Greater China
|
89
|
82
|
|
|
Central
|
(155)
|
(155)
|
|
|
____
|
____
|
||
|
Reportable segments' operating profit
|
651
|
668
|
|
|
Exceptional operating items (note 4)
|
29
|
5
|
|
|
____
|
____
|
||
|
Operating profit
|
680
|
673
|
|
|
Net finance costs
|
(80)
|
(73)
|
|
|
____
|
____
|
||
|
Profit before tax
|
600
|
600
|
|
|
====
|
====
|
||
|
All results relate to continuing operations.
|
|||
|
Assets
|
2014
$m
|
2013
(restated*)
$m
|
|
|
Americas
|
919
|
1,079
|
|
|
Europe
|
626
|
654
|
|
|
AMEA
|
244
|
253
|
|
|
Greater China
|
394
|
392
|
|
|
Central
|
346
|
304
|
|
|
____
|
____
|
||
|
Segment assets
|
2,529
|
2,682
|
|
|
Unallocated assets:
|
|||
|
Non-current tax receivable
|
34
|
16
|
|
|
Deferred tax assets
|
87
|
108
|
|
|
Current tax receivable
|
4
|
12
|
|
|
Derivative financial instruments
|
2
|
1
|
|
|
Cash and cash equivalents
|
162
|
248
|
|
|
____
|
____
|
||
|
Total assets
|
2,818
|
3,067
|
|
|
====
|
====
|
|
|
* Restated for the adoption of 'Offsetting Financial Assets and Financial Liabilities' (Amendments to IAS 32), (see note 1).
|
|
4.
|
Exceptional items
|
||||
|
2014
$m
|
2013
$m
|
||||
|
Continuing operations:
|
|||||
|
Exceptional operating items
|
|||||
|
Administrative expenses:
|
|||||
|
Venezuelan currency loss (a)
|
(14)
|
-
|
|||
|
Pension settlement cost (b)
|
(6)
|
(147)
|
|||
|
Reorganisation costs (c)
|
(29)
|
-
|
|||
|
UK portfolio restructuring (d)
|
(45)
|
-
|
|||
|
Kimpton acquisition costs (e)
|
(7)
|
-
|
|||
|
Litigation (f)
|
-
|
(10)
|
|||
|
Loyalty programme rebranding costs (g)
|
-
|
(10)
|
|||
|
____
|
____
|
||||
|
(101)
|
(167)
|
||||
|
Share of profits of associates and joint ventures:
|
|||||
|
Share of gain on disposal of a hotel (h)
|
-
|
6
|
|||
|
Other operating income and expenses:
|
|||||
|
Gain on disposal of hotels (i)
|
130
|
166
|
|||
|
____
|
____
|
||||
|
29
|
5
|
||||
|
====
|
====
|
||||
|
Tax
|
|||||
|
Tax on exceptional operating items (j)
|
(29)
|
(6)
|
|||
|
Exceptional tax (k)
|
-
|
(45)
|
|||
|
____
|
____
|
||||
|
(29)
|
(51)
|
||||
|
====
|
====
|
||||
|
These items are treated as exceptional by reason of their size or nature.
|
||
|
a)
|
Relates to the introduction of the SICAD II exchange rate on 24 March 2014 and its adoption by the Group. Of the three exchange rate mechanisms that currently exist in Venezuela, SICAD II is the most accessible to the Group for converting its bolivar earnings into US dollars. The exceptional loss arises from the one-off re-measurement of the Group's bolivar assets and liabilities from the 'official' exchange rate ($1=6.3 VEF) to the SICAD II exchange rate (approximately $1=50 VEF). The Group has used the SICAD II exchange rate for translating the results of its Venezuelan operations since 1 April 2014.
|
|
|
b)
|
In 2014, results from a partial cash-out of the UK unfunded pension arrangements and, in 2013, resulted from a buy-in (and subsequent buy-out in 2014) of the Group's UK funded defined benefit obligations with the insurer, Rothesay Life, on 15 August 2013.
|
|
|
c)
|
Relates primarily to costs incurred in introducing a new HR operating model across the business to provide enhanced management information and more efficient processes, and to implement more efficient processes and procedures in the Group's Global Technology infrastructure to help mitigate future cost increases.
|
|
|
d)
|
Relates to the cost of securing a restructuring of the UK hotel portfolio which will result in the transfer of 61 managed hotels to franchise contracts.
|
|
|
e)
|
Relates to acquisition transaction costs incurred in the period to 31 December 2014 on the acquisition of Kimpton, which completed on 16 January 2015.
|
|
|
f)
|
Related to an agreed settlement in the Greater China region.
|
|
|
g)
|
Related to costs incurred in support of the worldwide rebranding of IHG Rewards Club that was announced 1 July 2013.
|
|
|
h)
|
Related to the sale of a hotel owned by an associate in the Americas region.
|
|
|
i)
|
In 2014, relates to the sale of the InterContinental Mark Hopkins San Francisco and the disposal of an 80.1% interest in the InterContinental New York Barclay and, in 2013, to the sale of the InterContinental London Park Lane (see note 7).
|
|
|
j)
|
In 2014, the charge comprises $56m relating to the disposal of an 80.1% interest in the InterContinental New York Barclay offset by a credit of $27m relating to a restructuring of the UK portfolio and other reorganisation costs.
|
|
|
k)
|
In 2013, comprised a deferred tax charge of $63m consequent on the disposal of the InterContinental London Park Lane hotel, together with charges and credits of $38m and $19m respectively from associated restructurings (including intra-group dividends) and refinancings, offset by the recognition of $37m of previously unrecognised tax credits.
|
|
|
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 31% (2013 29%) analysed as follows.
|
|
2014
|
2014
|
2014
|
2013
|
2013
|
2013
|
|||
|
Year ended 31 December
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
||
|
Before exceptional items
|
571
|
(179)
|
31%
|
595
|
(175)
|
29%
|
||
|
Exceptional items
|
29
|
(29)
|
5
|
(51)
|
||||
|
____
|
____
|
____
|
____
|
|||||
|
600
|
(208)
|
600
|
(226)
|
|||||
|
====
|
====
|
====
|
====
|
|||||
|
Analysed as:
|
||||||||
|
UK tax
|
(5)
|
(1)
|
||||||
|
Foreign tax
|
(203)
|
(225)
|
||||||
|
____
|
____
|
|||||||
|
(208)
|
(226)
|
|||||||
|
====
|
====
|
|||||||
|
6.
|
Earnings per ordinary share
|
|
Basic earnings per ordinary share is calculated by dividing the profit for the year available for IHG equity holders by the weighted average number of ordinary shares, excluding investment in own shares, in issue during the year.
Diluted earnings per ordinary share is calculated by adjusting basic earnings per ordinary share to reflect the notional exercise of the weighted average number of dilutive ordinary share options outstanding during the year.
Adjusted earnings per ordinary share is disclosed in order to show performance undistorted by exceptional items, to give a more meaningful comparison of the Group's performance.
|
|
Continuing and total operations
|
2014
|
2013
|
||
|
Basic earnings per ordinary share
|
||||
|
Profit available for equity holders ($m)
|
391
|
372
|
||
|
Basic weighted average number of ordinary shares (millions)
|
247
|
264
|
||
|
Basic earnings per ordinary share (cents)
|
158.3
|
140.9
|
||
|
====
|
====
|
|||
|
Diluted earnings per ordinary share
|
||||
|
Profit available for equity holders ($m)
|
391
|
372
|
||
|
Diluted weighted average number of ordinary shares (millions)
|
250
|
267
|
||
|
Diluted earnings per ordinary share (cents)
|
156.4
|
139.3
|
||
|
====
|
====
|
|||
|
Adjusted earnings per ordinary share
|
||||
|
Profit available for equity holders ($m)
|
391
|
372
|
||
|
Adjusting items (note 4):
|
||||
|
Exceptional operating items ($m)
|
(29)
|
(5)
|
||
|
Tax on exceptional operating items ($m)
|
29
|
6
|
||
|
Exceptional tax ($m)
|
-
|
45
|
||
|
____
|
____
|
|||
|
Adjusted earnings ($m)
|
391
|
418
|
||
|
Basic weighted average number of ordinary shares (millions)
|
247
|
264
|
||
|
Adjusted earnings per ordinary share (cents)
|
158.3
|
158.3
|
||
|
====
|
====
|
|||
|
Diluted weighted average number of ordinary shares (millions)
|
250
|
267
|
||
|
Adjusted diluted earnings per ordinary share (cents)
|
156.4
|
156.6
|
||
|
====
|
====
|
|||
|
The diluted weighted average number of ordinary shares is calculated as:
|
|||
|
2014
millions
|
2013
millions
|
||
|
Basic weighted average number of ordinary shares
|
247
|
264
|
|
|
Dilutive potential ordinary shares
|
3
|
3
|
|
|
____
|
____
|
||
|
250
|
267
|
||
|
====
|
====
|
||
|
7.
|
Disposal of assets
|
|||
|
2014
|
2013
|
|||
|
$m
|
$m
|
|||
|
Net assets disposed:
|
||||
|
Property, plant and equipment
|
110
|
-
|
||
|
Non-current assets held for sale
|
228
|
294
|
||
|
Other financial asset
|
5
|
-
|
||
|
Net current liabilities
|
(4)
|
(6)
|
||
|
____
|
____
|
|||
|
339
|
288
|
|||
|
Gain on disposal of hotels
|
130
|
166
|
||
|
Exchange losses recycled from currency translation reserve
|
-
|
46
|
||
|
____
|
____
|
|||
|
Total consideration
|
469
|
500
|
||
|
====
|
====
|
|||
|
Satisfied by:
|
||||
|
Cash consideration, net of costs paid
|
345
|
460
|
||
|
Other financial assets*
|
52
|
-
|
||
|
Intangible assets
|
50
|
40
|
||
|
Investment in associate
|
22
|
-
|
||
|
____
|
____
|
|||
|
469
|
500
|
|||
|
====
|
====
|
|||
|
* Includes $27m deferred consideration subsequently received and included within Proceeds from other financial
assets in the Group statement of cash flows.
|
||||
|
8.
|
Dividends and shareholder returns
|
||||||
|
2014
cents per share
|
2013
cents per share
|
2014
$m
|
2013
$m
|
||||
|
Paid during the year:
|
|||||||
|
Final (declared for previous year)
|
47.0
|
43.0
|
122
|
115
|
|||
|
Interim
|
25.0
|
23.0
|
57
|
63
|
|||
|
Special
|
293.0
|
133.0
|
763
|
355
|
|||
|
____
|
____
|
____
|
____
|
____
|
|||
|
365.0
|
199.0
|
942
|
533
|
533
|
|||
|
====
|
====
|
====
|
====
|
||||
|
Proposed for approval at the Annual General Meeting
(not recognised as a liability at 31 December)
|
|||||||
|
Final
|
52.0
|
47.0
|
122
|
121
|
|||
|
====
|
====
|
====
|
====
|
||||
|
Under the $500m share repurchase programme announced 7 August 2012, 3.4m shares (2013 9.8m shares) were repurchased in the year to 31 December 2014 for a consideration of $110m (2013 $283m), increasing the total amount repurchased to $500m. Of the 3.4m shares repurchased in 2014, 2.7m (2013 9.8m) are held as treasury shares and 0.7m (2013 nil) were cancelled. The total amount of shares held as treasury shares at 31 December 2014 was 11.5m (2013 9.8m). The cost of treasury shares has been deducted from retained earnings.
On 2 May 2014, the Group announced a $750m return to shareholders by way of a special dividend and share consolidation. On 30 June 2014, shareholders approved the share consolidation on the basis of 12 new ordinary shares of 15 265/329 p per share for every 13 existing ordinary shares of 14 194/329 p. The dividend was paid on 14 July 2014.
|
|||||||
|
9.
|
Net debt
|
||
|
2014
|
2013
(restated*)
|
||
|
$m
|
$m
|
||
|
Cash and cash equivalents
|
162
|
248
|
|
|
Loans and other borrowings - current
|
(126)
|
(130)
|
|
|
Loans and other borrowings - non-current
|
(1,569)
|
(1,269)
|
|
|
Derivatives hedging debt values**
|
-
|
(2)
|
|
|
_____
|
_____
|
||
|
Net debt
|
(1,533)
|
(1,153)
|
|
|
=====
|
=====
|
||
|
Finance lease obligation included above
|
(218)
|
(215)
|
|
|
=====
|
=====
|
||
|
*
|
Restated for the adoption of 'Offsetting Financial Assets and Financial Liabilities' (Amendments to IAS 32), (see note 1).
|
|
|
**
|
In 2013, net debt included the exchange element of the fair value of currency swaps that fixed the value of the Group's £250m 6% bonds at $415m. An equal and opposite exchange adjustment on the retranslation of the £250m 6% bonds was included in non-current loans and other borrowings. The currency swaps were closed out in 2014.
|
|
10.
|
Movement in net debt
|
||||
|
2014
|
2013
|
||||
|
$m
|
$m
|
||||
|
Net decrease in cash and cash equivalents, net of overdrafts
|
(70)
|
(58)
|
|||
|
Add back cash flows in respect of other components of net debt:
|
|||||
|
(Increase)/decrease in borrowings
|
(382)
|
1
|
|||
|
Close-out of currency swaps
|
(4)
|
-
|
|||
|
_____
|
_____
|
||||
|
Increase in net debt arising from cash flows
|
(456)
|
(57)
|
|||
|
Non-cash movements:
|
|||||
|
Finance lease obligation
|
(3)
|
(3)
|
|||
|
Exchange and other adjustments
|
79
|
(19)
|
|||
|
_____
|
_____
|
||||
|
Increase in net debt
|
(380)
|
(79)
|
|||
|
Net debt at beginning of the year
|
(1,153)
|
(1,074)
|
|||
|
_____
|
_____
|
||||
|
Net debt at end of the yea
|
(1,533)
|
(1,153)
|
|||
|
=====
|
=====
|
||||
|
11.
|
Commitments and contingencies
|
|
At 31 December 2014, the amount contracted for but not provided for in the financial statements for expenditure on property, plant and equipment and intangible assets was $117m (2013 $83m). The Group has also committed to invest in a number of its associates, with an estimated outstanding commitment of $89m at 31 December 2014 (2013 $20m) based on current forecasts.
At 31 December 2014, the Group had no contingent liabilities (2013 $nil).
In limited cases, the Group may provide performance guarantees to third-party hotel owners to secure management contracts. At 31 December 2014, the amount provided in the financial statements was $2m (2013 $6m) and the maximum unprovided exposure under such guarantees was $29m (2013 $48m).
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.
|
Events after the reporting period
|
|
On 16 January 2015, the Group completed the acquisition of Kimpton Hotels & Restaurants Group, LLC ("Kimpton"), an unlisted company based in the US, for $430m paid in cash. Kimpton is the world's largest independent boutique hotel operator which, together with IHG's Hotel Indigo and EVEN brands, creates a leading boutique and lifestyle hotel business.
The assets and liabilities acquired largely comprise intangible assets, being the Kimpton brand and management contracts, deferred tax assets and goodwill. Due to the close proximity of the acquisition date to the date of these preliminary financial statements, the initial accounting for the business combination is incomplete and the Group is unable to provide a quantification of the fair values of these assets. The fair value exercise is ongoing and it is expected that the Group will include an acquisition balance sheet with its interim results for 2015.
Acquisition transaction costs of $7m were incurred in the year to 31 December 2014.
|
|
13.
|
Group financial statements
|
|
The preliminary statement of results was approved by the Board on 16 February 2015. 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 2013 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/ H. Patel
|
|
|
Name:
|
H. PATEL
|
|
|
Title:
|
COMPANY SECRETARIAL OFFICER
|
|
|
Date:
|
17 February 2015
|
|