Holiday Inn 2006 Annual Report Download

Download and view the complete annual report

Please find the complete 2006 Holiday Inn annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Annual report and financial statements 2006
Seeing the world
through your eyes...

Table of contents

  • Page 1
    Annual report and financial statements 2006 Seeing the world through your eyes...

  • Page 2
    .... Signings up 47% to 102,774 rooms. Development pipeline up by 49,479 rooms to 157,991. * Operating profit before other operating income and expenses. + Room revenue divided by the number of room nights available. †Total room revenue from franchised hotels and total hotel revenue from managed...

  • Page 3
    ... cash flow statement Group balance sheet Corporate information and accounting policies 53 NOTES TO THE GROUP FINANCIAL STATEMENTS 85 86 87 88 89 93 94 95 96 97 PARENT COMPANY FINANCIAL STATEMENTS Statement of Directors' responsibilities Independent auditor's report to the members Parent company...

  • Page 4
    ... product of exceptional work by our people across the Group. We have a clear position as the most owner-focused global hotel company, with a deep understanding of what guests want from our hotel brands. This will allow us to offer our employees and business partners attractive growth opportunities...

  • Page 5
    ... grew strongly, benefiting from trends that will drive demand for hotel rooms for many years. IHG, through its strong brand family, powerful operating systems that drive demand to our hotels and unmatched global position, outperformed the industry. Strong trading Continuing operating profit* was up...

  • Page 6
    4 IHG Annual report and financial statements 2006

  • Page 7
    ... Return of funds programme Management and organisation GROUP PERFORMANCE Key performance indicators (KPIs) Group results Global room count and pipeline Total gross revenues Reservation systems and loyalty programme THE AMERICAS EUROPE, MIDDLE EAST AND AFRICA (EMEA) ASIA PACIFIC CENTRAL CORPORATE...

  • Page 8
    ...owners by building the strongest operating system in the industry, focused on the largest markets and segments where scale really counts. During 2006, IHG initiated a number of research projects, the results of which will strengthen the Group's strategy with respect to brand development, franchising...

  • Page 9
    ... of total shareholder return against a competitor set. Figure 2 Global room count by ownership type at 31 December 2006 • Growth is planned to be attained predominantly from managing and franchising rather than owning hotels. Nearly 550,000 rooms operating under Group brands are managed or...

  • Page 10
    ..., Human Resources and Information Technology. The following announcements relating to members of the Executive Committee were made during 2006: • the appointment of Tom Conophy in January 2006 as Chief Information Officer (CIO), a new position created to develop the global technology strategy...

  • Page 11
    ... operations include owned and leased hotels in the US, UK, Continental Europe and Asia Pacific that have been sold or placed on the market from 1 January 2005, and the Britvic Group, disposed of by way of an initial public offering in December 2005. With the weighted average US dollar exchange rate...

  • Page 12
    ... Plaza Holiday Inn Holiday Inn Express Other brands Total 12 months ended 31 December 2006 $bn 2005 $bn % change 3.0 2.3 6.3 3.0 0.6 15.2 2.7 2.0 6.0 2.6 0.6 13.9 11.1 15.0 5.0 15.4 - 9.4 Reservation systems and loyalty programme IHG supports revenue delivery into its hotels through its global...

  • Page 13
    ... Plaza Holiday Inn Staybridge Suites Candlewood Suites Franchise (all hotels): Crowne Plaza Holiday Inn Holiday Inn Express 12 months ended 31 December 2006 12.2% 10.1% 14.1% 4.7% 8.8% 9.9% 10.3% 7.6% 10.7% *Discontinued operations are all owned and leased. Revenue and operating profit from...

  • Page 14
    ... 2006 Operating and financial review Figure 9 Americas hotel and room count at 31 December 2006 Analysed by brand: InterContinental 49 Crowne Plaza 155 Holiday Inn 987 Holiday Inn Express 1,506 Staybridge Suites 97 Candlewood Suites 130 Hotel Indigo 6 Other - Total 2,930 Analysed by ownership type...

  • Page 15
    ... Inn 317 (3) Holiday Inn Express 172 11 Total 623 13 Analysed by ownership type: Owned and leased 10 (31) Managed 174 (2) Franchised 439 46 Total 623 13 Rooms 2006 Change over 2005 EMEA results Revenue: Owned and leased Managed Franchised Continuing operations Discontinued operations* Total Dollar...

  • Page 16
    ...IHG Annual report and financial statements 2006 Operating and financial review Asia Pacific 12 months ended 31 December Figure 14 2006 $m 2005 $m % change Hotels Rooms Asia Pacific results Revenue: Owned and leased Managed Franchised Continuing operations Discontinued operations* Total Sterling...

  • Page 17
    ... lower average debt levels in the year (£92m in 2006 compared with £700m in 2005). Financing costs included £10m (2005 £5m) of interest costs associated with Priority Club Rewards where interest is charged on the accumulated balance of cash received in advance of the redemption points awarded...

  • Page 18
    ...The US Plan is closed to new members and pensionable service no longer accrues for current employee members. Employees IHG employed an average of 11,456 people worldwide in the year ended 31 December 2006. The hospitality industry is a people-based business and as such the Group's HR strategy places...

  • Page 19
    ...the plans provide various investment and currency options; Health and safety The Group-wide commitment to health and safety for guests and employees alike is detailed in the Corporate Social Responsibility section of the Annual Review and Summary Financial Statement 2006; Equality of opportunity The...

  • Page 20
    ... to develop, support and market its products, the Group must hire and retain highly skilled employees with particular expertise. The implementation of the Group's strategic business plans could be undermined by failure to recruit or retain key personnel, the unexpected loss of key senior employees...

  • Page 21
    ... and financial review to attract new customers or incur substantial costs or face other losses. Additionally, failure to develop an appropriate e-commerce strategy and select the right partners could erode the Group's market share. The Group is exposed to the risks of the hotel industry supply and...

  • Page 22
    20 IHG Annual report and financial statements 2006

  • Page 23
    ... 38 38 39 REMUNERATION REPORT Committee membership and conduct of business Policy on remuneration Components of remuneration Policy on external appointments Performance graph Contracts of service Policy on pensions Directors' emoluments Short Term Deferred Incentive Plan Performance Restricted Share...

  • Page 24
    ...Express Company, having held a range of senior positions including in New Product Development, Marketing and Sales and Travel Services throughout his career of over 35 years with American Express. A management development graduate of Harvard Business School, he also serves on the Board and Executive...

  • Page 25
    ... from Compass Group PLC, a world leading food service company, where she was Group Human Resources Leadership & Development Director. Previously Group HR Director for Forte Hotels Group. Responsible for global talent management and leadership development, reward strategy and implementation. Age 43.

  • Page 26
    ...2006 Directors' report The Directors present their report for the financial year ended 31 December 2006. purchased at an average price of 911p per share and 17,287,000 were 113⁄7p shares in the capital of the Company, purchased at an average price of 908p per share. Shares purchased and cancelled...

  • Page 27
    ... Board adopted a new global Code of Ethics and Business Conduct. This consolidates and clarifies expected standards of behaviour and communicates the ethical values of the Group. The Code is applicable to all employees and is available on the Company's website www.ihg.com/corporate IHG believes that...

  • Page 28
    ... with the Code requirements throughout the year ended 31 December 2006. As InterContinental Hotels Group PLC's shares are listed on the New York Stock Exchange (NYSE), the Company is subject to the rules of the NYSE, US securities laws and the rules of the Securities and Exchange Commission (SEC...

  • Page 29
    ... to the Group's parent company. 2 Sir Howard Stringer resigned as a Director of the Company on 10 November 2006. Current Directors' biographical details are set out on page 22 of this Report. These include their main external commitments. On appointment, Non-Executive Directors participate in...

  • Page 30
    ... into the Group's business. During 2006, visits to operating premises, including hotels across the brand portfolio, were undertaken. In addition, the training requirements of the Non-Executive Directors are kept under review. Company Secretary All Directors have access to the advice and services of...

  • Page 31
    ... the Board during 2006 to ensure that they continue to reflect best practice. Main Committee terms of reference are available on the Company's website www.ihg.com/corporate or from the Company Secretary's office on request. The terms and conditions of appointment of Non-Executive Directors are also...

  • Page 32
    ... adequacy of internal control and risk management systems and the appointment and work of the internal and external auditors. The role of the Audit Committee is summarised below and in full in its terms of reference, a copy of which is available on the Company's website or in writing on request. The...

  • Page 33
    ... compensation levels are based on global market practice; provide appropriate retention strength against loss of key executives; drive aligned focus and attention to key business initiatives and appropriately reward their achievement; support equitable treatment between members of the same executive...

  • Page 34
    ...wider employment market are also taken into account. Base salary is the only element of remuneration which is pensionable. In addition, benefits are provided to Executive Directors in accordance with the policy applying to other executives in their geographic location. In assessing levels of pay and...

  • Page 35
    ... sales required to meet personal tax liabilities) from the Group's remuneration plans while the value of their holding is less than twice their base salary or three times in the case of the Chief Executive. 3.3 Policy on external appointments The Company recognises that its Directors may be invited...

  • Page 36
    ... Non-Executive Directors are set out on page 27. b) Directors' contracts Director Andrew Cosslett Richard Hartman Stevan Porter Richard Solomons Contract effective date1 Unexpired term/ notice period 3.6 Policy regarding pensions Andrew Cosslett, Richard Solomons and other senior UK-based employees...

  • Page 37
    ...and any matching shares, details of which are set out in the STDIP table on page 36. 2 'Benefits' incorporate all tax assessable benefits arising from the individual's employment. For Messrs Cosslett, Hartman and Solomons, this relates in the main to the provision of a fully expensed company car and...

  • Page 38
    36 IHG Annual report and financial statements 2006 Remuneration report 5 Long-term reward Short Term Deferred Incentive Plan (STDIP) Messrs Cosslett, Hartman, Porter and Solomons participated in the STDIP during the year ended 31 December 2006, and are expected to receive an award on 26 February ...

  • Page 39
    ... based on performance to 31 December 2005 where the performance measure related to both the Company's Total Shareholder Return (TSR) against a group of 11 other comparator companies and growth in return on capital employed (ROCE). The number of shares released was graded, according to a) where the...

  • Page 40
    ... 2015. The performance condition relating to both the 2004 and 2005 grants of executive share options is set out on page 33. 1 Includes 3,769 Sharesave options granted in 2003. 2 The value of Stevan Porter's shares on exercise includes £91,778 that was chargeable to UK income tax. Option prices...

  • Page 41
    ...-tax qualified plan, providing benefits on a defined contribution basis, with the member and the relevant company both contributing. 7 Directors' pensions The following information relates to the pension arrangements provided for Messrs Cosslett, Hartman and Solomons under the executive section of...

  • Page 42
    40 IHG Annual report and financial statements 2006

  • Page 43
    ... financial statements for the Group. 42 STATEMENT OF DIRECTORS' RESPONSIBILITIES 43 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS 44 GROUP INCOME STATEMENT 45 GROUP STATEMENT OF RECOGNISED INCOME AND EXPENSE 46 GROUP CASH FLOW STATEMENT 47 GROUP BALANCE SHEET 48 CORPORATE INFORMATION AND ACCOUNTING...

  • Page 44
    ... with applicable United Kingdom law and those International Financial Reporting Standards as adopted by the European Union. The Directors are required to prepare Group financial statements for each financial year which present fairly the financial position of the Group and the financial performance...

  • Page 45
    ...Group balance sheet, corporate information and accounting policies and the related notes 1 to 35. These Group financial statements have been prepared under the accounting policies set out therein. We have reported separately on the parent company financial statements of InterContinental Hotels Group...

  • Page 46
    ... IHG Annual report and financial statements 2006 Group financial statements Group income statement 2006 Continuing Discontinued operations operations £m £m Total £m 2005 Continuing Discontinued operations operations £m £m Total £m for the year ended 31 December 2006 note 2 Revenue Cost of...

  • Page 47
    ...the year ended 31 December 2006 2006 £m 2005 £m Income and expense recognised directly in equity Gains on valuation of available-for-sale assets Gains on cash flow hedges Exchange differences on retranslation of foreign operations Actuarial losses on defined benefit pension plans Transfers to the...

  • Page 48
    46 IHG Annual report and financial statements 2006 Group financial statements Group cash flow statement for the year ended 31 December 2006 2006 £m 2005 £m Profit for the year Adjustments for: Net financial expense Income tax (credit)/charge Gain on disposal of assets, net of tax Other operating...

  • Page 49
    IHG Group financial statements and accounting policies 47 Group financial statements Group balance sheet 31 December 2006 note 2006 £m 2005 £m ASSETS Property, plant and equipment Goodwill Intangible assets Investment in associates Other financial assets Total non-current assets Inventories ...

  • Page 50
    48 IHG Annual report and financial statements 2006 Corporate information and accounting policies Corporate information The consolidated financial statements of InterContinental Hotels Group PLC (the Group or IHG) for the year ended 31 December 2006 were authorised for issue in accordance with a ...

  • Page 51
    ... financial and operating policy decisions of the entity. Associates are accounted for using the equity method unless the associate is classified as held for sale. Under the equity method, the Group's investment is recorded at cost adjusted by the Group's share of post acquisition profits and losses...

  • Page 52
    ... the projected unit credit method and discounting at an interest rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the plan liabilities. The service cost of providing pension benefits to employees for the year is charged to the income...

  • Page 53
    ... Impairment testing requires an estimate of future cash flows and the choice of a suitable discount rate and, in the case of hotels, an assessment of recoverable amount based on comparable market transactions. Pension and other post-employment benefits - the cost of defined benefit pension plans and...

  • Page 54
    52 IHG Annual report and financial statements 2006

  • Page 55
    ... 34 35 Exchange rates Segmental information Staff costs and Directors' emoluments Auditor's remuneration paid to Ernst & Young LLP Special items Finance costs Tax Dividends paid and proposed Earnings per ordinary share Property, plant and equipment Held for sale and discontinued operations Goodwill...

  • Page 56
    ... distinct business models which offer different growth, return, risk and reward opportunities: Franchised Where Group companies neither own nor manage the hotel, but license the use of a Group brand and provide access to reservation systems, loyalty schemes and know-how. The Group derives revenues...

  • Page 57
    ...to the Group financial statements 2 Segmental information (continued) Year ended 31 December 2006 Revenue Hotels Owned and leased Managed Franchised Central Continuing operations Discontinued operations - owned and leased Americas £m EMEA £m Asia Pacific £m Central £m Total Group £m 115...

  • Page 58
    56 IHG Annual report and financial statements 2006 Notes to the Group financial statements 2 Segmental information (continued) Year ended 31 December 2006 Assets and liabilities Segment assets Non-current assets classified as held for sale Unallocated assets: Current tax receivable Cash and cash ...

  • Page 59
    ... the Group financial statements 2 Segmental information (continued) Year ended 31 December 2005* Revenue Hotels Owned and leased Managed Franchised Central Continuing operations Discontinued operations - owned and leased Americas £m EMEA £m Asia Pacific £m Central £m Total Hotels £m 106...

  • Page 60
    58 IHG Annual report and financial statements 2006 Notes to the Group financial statements 2 Segmental information (continued) Year ended 31 December 2005* Assets and liabilities Segment assets Non-current assets classified as held for sale Unallocated assets: Current tax receivable Cash and cash ...

  • Page 61
    ...the Group financial statements 3 Staff costs and Directors' emoluments Staff Costs: Wages and salaries Social security costs Pension and other post-retirement benefits: Defined benefit plans (note 23) Defined contribution plans 2006 £m 2005 £m 301 38 6 11 356 2006 465 61 19 15 560 2005 Average...

  • Page 62
    ... report and financial statements 2006 Notes to the Group financial statements 5 Special items Other operating income and expenses* Gain on sale of investment Reversal of previously recorded impairment Impairment of property, plant and equipment Restructuring costs Property damage Employee benefits...

  • Page 63
    ... with, in 2006, a credit in respect of previously unrecognised losses. Reconciliation of tax (credit)/charge on total profit, including gain on disposal of assets UK corporation tax at standard rate Permanent differences Net effect of different rates of tax in overseas businesses Effect of changes...

  • Page 64
    ... performance undistorted by special items, to give a more meaningful comparison of the Group's performance. 2006 2005 Total Continuing operations Total Continuing operations Basic earnings per share Profit available for equity holders (£m) Basic weighted average number of ordinary shares (millions...

  • Page 65
    ... of International Financial Reporting Standards'. At 31 December 2005, property, plant and equipment was written down by £7m following an impairment review of hotel assets based on current market trading conditions. No impairment, or subsequent reversal, was required at 31 December 2006. The...

  • Page 66
    64 IHG Annual report and financial statements 2006 Notes to the Group financial statements 11 Held for sale and discontinued operations Hotels During the year ended 31 December 2006, the Group sold 32 hotels (2005 112 hotels), continuing the asset disposal programme commenced in 2003, and an ...

  • Page 67
    ... 1. Goodwill has been allocated to cash-generating units (CGUs) for impairment testing as follows: 2006 £m 2005 £m The Americas managed operations Asia Pacific managed and franchised operations 72 37 109 82 36 118 The Group tests goodwill for impairment annually, or more frequently if there...

  • Page 68
    ... estimated growth rate of 4% (2005 4%). After this period, the terminal value of future cash flows is calculated based on a perpetual growth rate of approximately 3% (2005 3%). The rate used to discount the forecast cash flow is 10.5% (2005 10.5%). Asia Pacific managed and franchised operations The...

  • Page 69
    ...-current Equity securities available-for-sale Other Current Equity securities available-for-sale Derivatives 2006 £m 2005 £m 48 48 96 41 72 113 104 2 106 9 4 13 Available-for-sale financial assets, which are held on the balance sheet at fair value, consist of equity investments in listed and...

  • Page 70
    ... Cash at bank and in hand Short-term deposits Short-term deposits are highly liquid investments with an original maturity of three months or less, in various currencies. 2006 £m 2005 £m 30 149 179 34 290 324 19 Trade and other payables Current Trade payables Other tax and social security...

  • Page 71
    ... within one year. These facilities contain financial covenants and as at the balance sheet date the Group was not in breach of these covenants. 2006 Utilised £m Unutilised £m Total £m Utilised £m 2005 Unutilised £m Total £m Facilities provided by banks Committed Uncommitted 213 3 216 944 36...

  • Page 72
    ... currency of the Group's revenue and cash flows and movements in foreign exchange rates, particularly the US dollar and euro, can affect the Group's reported profit, net assets and interest cover. To hedge this translation exposure the Group matches the currency of its debt (either directly or via...

  • Page 73
    ... balance sheet and the periods in which they reprice, if earlier than the maturity date. Total carrying amount £m Repricing analysis Less than 6 months £m 6 months -1 year £m 1-2 years £m More than 5 years £m 31 December 2006 Effective interest rate % Cash and cash equivalents Secured bank...

  • Page 74
    ... a US-based InterContinental Hotels Pension Plan and post-employment benefits scheme. This plan is now closed to new members and pensionable service no longer accrues for current employee members. In addition, the Group operates a number of minor pension schemes outside the UK, the most significant...

  • Page 75
    ... financial statements 23 Employee benefits (continued) The amounts recognised in the Group statement of recognised income and expense are: Pension plans UK US 2005 £m 2006 £m 2005 £m Post-employment benefits 2006 £m 2005 £m Total 2006 £m 2005 £m Actuarial gains and losses Actual return...

  • Page 76
    ... of the long-term asset strategy. Pension plans UK US 2005 £m 2006 £m 2005 £m Post-employment benefits 2006 £m 2005 £m Total 2006 £m 2005 £m Movement in plan assets Fair value of plan assets at beginning of year Company contributions Members' contributions Benefits paid Expected return on...

  • Page 77
    IHG Notes to the Group financial statements 75 Notes to the Group financial statements 23 Employee benefits (continued) History of experience gains and losses: UK Pension plans Fair value of scheme assets Present value of benefit obligations Deficit in the scheme Experience adjustments arising on ...

  • Page 78
    .... At the end of the savings term, employees are given the option to purchase shares at a price set before savings began. The Sharesave Plan is available to all UK employees (including Executive Directors) employed by participating Group companies provided that they have been employed for at least...

  • Page 79
    ... under the Executive Share Option Plan, Sharesave Plan or US Employee Stock Purchase Plan during the year. Short Term Deferred Incentive Plan Performance Restricted Share Plan Number of shares awarded in 2006 569,293 4,277,550 In 2006 and 2005, the Group used separate option pricing models and...

  • Page 80
    ... Annual report and financial statements 2006 Notes to the Group financial statements 24 Share-based payments (continued) Movements in the awards and options outstanding under the schemes are as follows: Short Term Deferred Incentive Plan Number of shares thousands Performance Restricted Share Plan...

  • Page 81
    ... recognised income and expense Acquisition of subsidiary (note 34) Exchange and other adjustments At 31 December 2006 Losses £m Employee benefits £m Intangible assets £m Other short-term temporary differences* £m Total £m 492 (150) (87) - 1 256 (126) (2) - - (9) 119 122 - - - - 122 - (26...

  • Page 82
    ... Hotels Group PLC was transferred to New InterContinental Hotels Group PLC at fair market value, in exchange for the issue of 443 million fully paid ordinary shares of 10p each, which were admitted to the Official List of the UK Listing Authority and admitted to trading on the London Stock Exchange...

  • Page 83
    ...sharesb 6 Repurchase of sharesb (1) Transfer to capital redemption reserve - Purchase of own shares by employee share trusts - Release of own shares by employee share trusts - Equity settled share-based cost - Equity dividends paid - At 31 December 2005 49 Total recognised income and expense for the...

  • Page 84
    82 IHG Annual report and financial statements 2006 Notes to the Group financial statements 29 Minority equity interest 2006 £m 2005 £m At 1 January Total recognised income and expense in the year Dividends paid to minority interests Disposal of hotels (note 11) Disposal of Soft Drinks business (...

  • Page 85
    ...to the Group financial statements 33 Related party disclosures Key management personnel comprises the Board and Executive Committee. Total compensation of key management personnel Short-term employment benefits Post-employment benefits Termination benefits Equity compensation benefits 2006 £m 2005...

  • Page 86
    84 IHG Annual report and financial statements 2006

  • Page 87
    ... of our parent company, InterContinental Hotels Group PLC, and the related notes supporting the parent company balance sheet for 2006. 86 STATEMENT OF DIRECTORS' RESPONSIBILITIES 87 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS 88 PARENT COMPANY BALANCE SHEET 89 NOTES TO THE PARENT COMPANY FINANCIAL...

  • Page 88
    ... relation to the Company financial statements. The Directors are responsible for preparing the parent company financial statements and Remuneration Report in accordance with applicable United Kingdom law and United Kingdom Generally Accepted Accounting Practice (UK GAAP). The Directors are required...

  • Page 89
    ...have audited the parent company financial statements of InterContinental Hotels Group PLC for the year ended 31 December 2006 which comprise the Company balance sheet and related notes 1 to 10. These parent company financial statements have been prepared under the accounting policies set out therein...

  • Page 90
    88 IHG Annual report and financial statements 2006 Parent company financial statements Company balance sheet 31 December 2006 note 2006 £m 2005 £m Fixed assets Investments Current assets Debtors Creditors: amounts falling due within one year Net current liabilities Creditors: amounts due after ...

  • Page 91
    ... 12 months to expiry. Parent company financial statements and Notes to the parent company financial statements 2 Employees and Directors Average number of employees (Non-Executive Directors) 2006 2005 8 2006 £m 8 2005 £m Staff costs 1 - Detailed information on the emoluments, pensions...

  • Page 92
    ... Company at the Annual General Meeting on 1 June 2006 to purchase its own shares was still valid at 31 December 2006. A resolution to renew the authority will be put to shareholders at the Annual General Meeting on 1 June 2007. Share premium account £m Capital redemption reserve £m Profit and loss...

  • Page 93
    ...parent company financial statements 9 Profit and dividends Profit on ordinary activities after tax amounts to £53m (2005 loss of £851m). A final dividend, declared in the previous year, of 10.7p per share was paid during the year, amounting to £46m (2005 £nil). A special... the Annual General ...

  • Page 94
    92 IHG Annual report and financial statements 2006

  • Page 95
    ...glossary of terms used in the Annual Report and Financial Statements 2006 and some analyses of our share ownership at the end of 2006. We also provide a range of information designed to be helpful to shareholders, and contact details for the Company and for a number of service providers. 94 GLOSSARY...

  • Page 96
    ... available. operating profit before other operating income and expenses expressed as a percentage of revenue. signed/executed agreements, including franchises and management contracts, for hotels which will enter the Group's system at a future date. room revenue divided by the number of room nights...

  • Page 97
    ... associated with funding the defined benefits under its pension plans. The main factors that could affect the business and financial results are described in the Operating and Financial Review of the Annual Report and Financial Statements 2006 and also in any Annual Report of InterContinental Hotels...

  • Page 98
    ...requirements of the Securities and Exchange Commission (SEC) in the US and files with the SEC an Annual Report on Form 20-F. The Form 20-F can be found on the Company's website www.ihg.com/corporate or by visiting the SEC's website at www.sec.gov/edgar.shtml Share price information Share price 2006...

  • Page 99
    ... (0) 1753 410 101 For general information about the Group's business please contact the Corporate Affairs department and for all other enquiries please contact the Company Secretary - both at the above address. Ex-dividend date Record date Payment date Payment date Registrar Lloyds TSB Registrars...

  • Page 100
    INTERCONTINENTAL HOTELS GROUP PLC 67 Alma Road, Windsor, Berkshire SL4 3HD Telephone +44 (0) 1753 410 100 Fax +44 (0) 1753 410 101 www.ihg.com Holiday Inn Suva, Fiji make a booking at www.ihg.com