Holiday Inn 2007 Annual Report Download - page 98

96 IHG Annual Report and Financial Statements 2007
Glossary
Adjusted excluding the effect of exceptional items,
gain/loss on disposal of assets and any
relevant tax.
Average daily rate room revenue divided by the number of
room nights sold. Also known as average
room rate.
Basic earnings per share profit available for IHG equity holders
divided by the weighted average number
of ordinary shares in issue during the year.
Capital expenditure cash expended on purchases of property,
plant and equipment and purchases of
intangible assets, associates and other
financial assets.
Cash-generating unit a portfolio of similar assets that are
subject to the same economic and
commercial influences.
Comparable RevPAR a comparison for a grouping of hotels that
have traded in all months in both financial
years being compared. Principally
excludes new hotels, hotels closed for
major refurbishment and hotels sold in
either of the two years.
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.
Derivatives a financial instrument used to reduce risk,
the price of which is derived from an
underlying asset, index or rate.
Discontinued operations operations that have been sold and assets
classified as held for sale when the results
relate to a separate line of business,
geographical area of operations, or where
there is a coordinated plan to dispose
of a separate line of business or
geographical area of operations.
Exceptional items items which are disclosed separately
because of their size or nature.
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 (eg Staybridge
Suites, Candlewood Suites).
Franchisee operator who uses a brand under licence
from the brand owner (eg IHG).
Franchisor brand owner (eg IHG) who licenses brands
for use by operators.
Goodwill the difference between the consideration
given for a business and the total of the
fair values of the separable assets and
liabilities comprising that business.
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.
IFRS International Financial Reporting
Standards.
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
(eg Holiday Inn, Holiday Inn Express).
Net debt borrowings less cash and cash equivalents.
Occupancy rate rooms occupied by hotel guests,
expressed as a percentage of rooms
that are available.
Operating profit margin operating profit before exceptional
operating items expressed as a
percentage of revenue.
Pipeline signed/executed agreements, including
franchises and management contracts,
for hotels which will enter the Group’s
system at a future date.
Revenue per room revenue divided by the number of
available room room nights that are available (can be
(RevPAR) mathematically derived from occupancy
rate multiplied by average daily rate).
Room count number of rooms owned, managed
or franchised by IHG.
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 an
equity stake and over which it exercises
control.
System size the number of hotels/rooms owned,
managed or franchised by IHG.
Total gross revenue total room revenue from franchised hotels
and total hotel revenue from managed,
owned and leased hotels.
Total Shareholder the theoretical growth in value of a
Return (TSR) shareholding over a period, by reference to
the beginning and ending share price, and
assuming that gross dividends, including
special dividends, are reinvested to
purchase additional units of the equity.
Upscale hotel a four/five star full-service hotel
characterised by superior service
(eg InterContinental, Crowne Plaza).
UK GAAP United Kingdom generally accepted
accounting practice.
Weighted average the average of the monthly exchange
exchange rate rates, weighted by reference to monthly
operating profit.
Working capital the sum of inventories, receivables and
payables of a trading nature, excluding
financing items such as corporate taxation.