Holiday Inn 2007 Annual Report Download - page 15

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BUSINESS REVIEW
Business review 13
Hotels Rooms
Change Change
At 31 December 2007 over 2006 2007 over 2006
Analysed by brand
InterContinental 149 150,762 1,163
Crowne Plaza 299 24 83,170 7,538
Holiday Inn 1,381 (14) 256,699 (3,771)
Holiday Inn Express 1,808 122 156,531 12,949
Staybridge Suites 122 25 13,466 2,513
Candlewood Suites 158 28 16,825 2,676
Hotel Indigo 11 51,501 608
Other 21 17 6,140 5,172
Total 3,949 208 585,094 28,848
Analysed by ownership type
Owned and leased 18 (7) 6,396 (2,064)
Managed 539 27 134,883 9,669
Franchised 3,392 188 443,815 21,243
Total 3,949 208 585,094 28,848
During 2007, the IHG global system (the number of hotels and
rooms which are owned, leased, managed or franchised by the
Group) increased by 208 hotels (28,848 rooms, or 5.2%) to
3,949 hotels (585,094 rooms). The record growth level was driven,
in particular, by continued expansion in the US, the UK, China and
Japan, resulting in openings of 366 hotels (52,846 rooms).
Holiday Inn Express represented 58.7% of the net hotel growth,
demonstrating strong market demand in the midscale, limited
service sector. The extended stay portfolio, comprising Staybridge
Suites and Candlewood Suites hotels, expanded by 53 hotels
(5,189 rooms), indicating owner confidence in this sector.
The net decline in the Holiday Inn hotel and room count (14 hotels
and 3,771 rooms) primarily reflects IHG’s continued strategy to
reinvigorate the Holiday Inn brand through the removal of lower
quality, non-brand conforming hotels in the US. This strategy is
further supported by the worldwide brand relaunch of the Holiday
Inn brand family, announced in October 2007, which entails the
consistent delivery of best-in-class service and physical quality
in all Holiday Inn and Holiday Inn Express hotels.
At the end of 2007, the IHG pipeline (contracts signed for
hotels and rooms yet to enter the IHG global system) totalled
1,674 hotels (225,872 rooms). In the year, record room signings
across all regions of 125,533 rooms led to pipeline growth of
67,881 rooms (or 43.0%). This level of growth demonstrates
strong demand for IHG brands across all regions and represents
a key driver of future profitability.
BUSINESS REVIEW
Global hotel and room count
Global pipeline
Hotels Rooms
Change Change
At 31 December 2007 over 2006 2007 over 2006
Analysed by brand
InterContinental 62 26 20,013 6,802
Crowne Plaza 118 58 36,362 19,249
Holiday Inn 365 66 56,945 12,171
Holiday Inn Express 712 138 70,142 14,622
Staybridge Suites 157 37 17,150 4,545
Candlewood Suites 207 79 18,605 6,882
Hotel Indigo 52 28 6,565 3,520
Other 1190 90
Total 1,674 433 225,872 67,881
Analysed by ownership type
Managed 247 108 71,814 30,166
Franchised 1,427 325 154,058 37,715
Total 1,674 433 225,872 67,881
Global pipeline signings
Hotels Rooms
Change Change
At 31 December 2007 over 2006 2007 over 2006
Total 873 156 125,533 22,759