Holiday Inn 2003 Annual Report Download - page 66

64 InterContinental Hotels Group 2003
GLOSSARY
ADJUSTED excluding the effect of exceptional items and
any relevant tax.
AVERAGE DAILY RATE (ADR) room revenue divided by the number of room
nights sold. Also known as average room rate.
BASIC EARNINGS PER SHARE earnings available for ordinary shareholders
divided by the weighted average number of
ordinary shares in issue during the year.
BOND a long-dated note, being an obligation to repay.
COMMERCIAL PAPER a negotiable short-term unsecured promissory
note, issued by a corporate or other borrower
normally for a maximum of one year.
COMPETITIVE SEGMENT the broad market segment against which
a hotel brand competes.
COMPETITIVE SET the specific local hotels against which
a particular hotel competes.
CONTINGENT LIABILITY a liability that is contingent upon the occurrence
of one or more uncertain future events.
CONTINUING OPERATIONS operations not classified as discontinued and
including acquisitions made during the year.
CURRENCY SWAP an exchange of a deposit and a borrowing,
each denominated in a different currency, for
an agreed period of time.
DEBENTURE a long-term loan, usually secured by property.
DISCONTINUED OPERATIONS operations that have been sold or terminated
and where the sale or termination has had a
material effect on the nature and focus of the
Group’s operations.
EBITDA earnings before interest, taxation, depreciation
and amortisation and exceptional items.
EXCEPTIONAL ITEMS material items deriving from ordinary activities
but which are disclosed separately because
of their size or incidence.
EXTENDED-STAY HOTEL a hotel designed for guests staying for periods
of time longer than a few nights and tending to
have a higher proportion of suites than normal
hotels, e.g. Staybridge Suites.
FORWARD RATE AGREEMENT a contract to receive or pay the difference
between an agreed interest rate and the actual
rate at an agreed future date, on a specified
notional principal.
FRANCHISEE operator who uses a brand under licence from
the brand owner (e.g. InterContinental Hotels).
FRANCHISOR brand owner (e.g. InterContinental Hotels) who
licenses brands for use by other operators.
GEARING net debt expressed as a percentage of
shareholders’ funds.
GOODWILL the difference between the consideration given
for a business and the total of the values of
the separable assets and liabilities comprising
that business.
GROSS OPERATING MARGIN operating profit before fixed costs and
overheads, expressed as a percentage
of turnover.
HEDGING the reduction of risk, normally in relation to
foreign currency or interest rate movements,
by making offsetting commitments.
HOLIDEX FEES charges to hotels under management and
franchise agreements for the use of Holidex,
IHG’s proprietory reservation system.
INCOME-GENERATING UNIT a portfolio of similar assets that are subject to
the same economic and commercial influences.
INTEREST RATE SWAP an agreement to exchange fixed for floating
interest rate streams (or vice versa) on a
notional principal.
MANAGEMENT CONTRACT a contract to operate a hotel on behalf of the
hotel owner.
MARKET CAPITALISATION the value attributed to a listed company by
multiplying its share price by the number of
shares in issue.
MIDSCALE HOTEL a hotel in the three/four star category, e.g.
Holiday Inn, Holiday Inn Express.
NET CAPITAL EXPENDITURE cash expended on fixed assets, less cash
received from selling fixed assets, excluding
major acquisitions and disposals.
NET CASH FLOW cash flow from all operations, including major
and one-off payments and receipts.
NET DEBT borrowings less current asset investments and
cash at bank and in hand.
NET OPERATING ASSETS total assets less liabilities, excluding all assets
and liabilities of a financing nature.
NORMAL CASH FLOW cash flow from all operations before major and
one-off payments and receipts.
OCCUPANCY RATE rooms occupied by hotel guests, expressed as
a percentage of rooms that are available.
OPERATING CASH FLOW cash flow from operations but before payments
for tax and to providers of finance (through
interest and dividends), and before major and
one-off payments and receipts.
OPERATING MARGIN operating profit expressed as a percentage
of turnover.
PIPELINE signed/executed agreements, including
franchises and management contracts, for
hotels which will enter the InterContinental
Hotels system at a future date.
room revenue divided by the number of room
nights that are available (can be mathematically
derived from occupancy rate multiplied by
average room rate).
ROOM REVENUE revenue generated from the sale of room nights.
ROYALTY RATE the percentage of room revenue that a
franchisee pays to the brand owner for use of
the brand name.
SUBSIDIARY UNDERTAKING a company in which the Group holds a stake
and over which it exercises dominant influence.
SYSTEM SIZE number of hotels (or rooms) owned, managed
or franchised by InterContinental Hotels.
UNDERLYING adjusted to remove items that distort
comparability between both years.
UPSCALE HOTEL a four/five star full-service hotel characterised
by superior service, e.g. InterContinental,
Crowne Plaza.
UK GAAP accounting principles generally accepted
in the United Kingdom.
US GAAP accounting principles generally accepted
in the United States.
the average of the monthly exchange
rates, weighted by reference to monthly
operating profit.
WORKING CAPITAL the sum of stocks, debtors, creditors and
accruals of a trading nature, excluding
financing items such as corporate taxation
and proposed dividends.
REVENUE PER AVAILABLE
ROOM (RevPAR)
WEIGHTED AVERAGE
EXCHANGE RATE