Holiday Inn 2008 Annual Report Download

Download and view the complete annual report

Please find the complete 2008 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 108

  • 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
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

Great Hotels Guests Love™
IHG Annual Report and Financial Statements 2008

Table of contents

  • Page 1
    Great Hotels Guests Love â„¢ IHG Annual Report and Financial Statements 2008

  • Page 2
    ... are so comfortable that some days you just don't want to get out." Centre: Photo by Amy Valentine, taken at Holiday Inn Express Salt Lake City, Utah, USA "The hands forming a heart around the hotel sign represent the people that make Holiday Inn Express a great hotel guests love." Right: Launch of...

  • Page 3
    ... risk THE BOARD, SENIOR MANAGEMENT AND THEIR RESPONSIBILITIES THE BOARD, SENIOR MANAGEMENT AND THEIR RESPONSIBILITIES The Board of Directors Other members of the Executive Committee Directors' report Corporate governance Audit Committee report Remuneration report GROUP FINANCIAL STATEMENTS...

  • Page 4
    ... Global Hyatt Corporation, where he was Head of Development, The Americas. Two of our Non-Executive Directors, Sir David Prosser and Robert Larson, retired from the Board in May and December 2008, respectively. I thank them for their excellent service and contribution. George Turner became Company...

  • Page 5
    ...and our hotel owners. Our reservations channels now bring in $7.6 billion of room revenues and our Priority Club Rewards members contribute $5.9 billion. We now directly generate around 60 per cent of room nights at our hotels through our system. This year we started several projects to make more of...

  • Page 6
    ... Executive: 7 great hotel brands and our multi-award-winning loyalty programme, Priority Club Rewards Does IHG have the right strategy to deal with the current economic climate? Three years ago we made the decision to focus on franchising and managing hotels, so we are predominantly a fee-based...

  • Page 7
    ... Share price and market capitalisation Cash flow Capital structure and liquidity management Return of funds programme Our people Our employment offer Room to be yourself Diversity External recognition Economic conditions Health and safety Corporate responsibility Our approach Review of 2008 Code...

  • Page 8
    ... population ages and becomes wealthier, increased leisure time and income encourages more travel and hotel visits: younger generations are increasingly seeking work/life balance, with positive implications for increased leisure travel; • increase in travel volumes as low-cost airlines grow rapidly...

  • Page 9
    ... worldwide association for owners of the Crowne Plaza, Holiday Inn, Holiday Inn Express, Hotel Indigo, Staybridge Suites and Candlewood Suites brands. IHG and the IAHI work together to support and facilitate the continued development of IHG's brands and systems, with specific emphasis during 2008 on...

  • Page 10
    8 IHG Annual Report and Financial Statements 2008 Business review continued Strategy IHG's ambition IHG seeks to deliver enduring top quartile shareholder returns, when measured against a broad global hotel peer group, by focusing on its core purpose of creating Great Hotels Guests Love. We measure...

  • Page 11
    ... • Technology infrastructure developed to support owner • Continue focus on our owned management and loyalty and managed estate margins marketing. and return on capital employed (ROCE), especially in our key InterContinental assets. BUSINESS REVIEW 2006 2007 2008 System contribution revenue...

  • Page 12
    ....8¢ * Profit before tax includes the results of discontinued operations. Total gross revenue 12 months ended 31 December 2008 $bn 2007 $bn % change InterContinental Crowne Plaza Holiday Inn Holiday Inn Express Staybridge Suites Candlewood Suites Other brands Total 4.1 3.2 6.8 3.9 0.4 0.3 0.4 19...

  • Page 13
    ... REVIEW Global pipeline Hotels At 31 December 2008 Change over 2007 2008 Rooms Change over 2007 Analysed by brand InterContinental 71 Crowne Plaza 133 Holiday Inn 387 Holiday Inn Express 719 Staybridge Suites 166 Candlewood Suites 242 Hotel Indigo 56 Other 1 Total 1,775 Analysed by ownership type...

  • Page 14
    ... in operating profit in the US due to a fall in occupancy rates, and a small guarantee payment for a newly opened hotel. Additional revenue investment was made to support operational standards in the region. Total operating profit margin in the managed estate increased by 4.1 percentage points to 30...

  • Page 15
    ... 2008 Rooms Change over 2007 Analysed by brand InterContinental 55 Crowne Plaza 187 Holiday Inn 920 Holiday Inn Express 1,722 Staybridge Suites 150 Candlewood Suites 204 Hotel Indigo 21 Holiday Inn Club Vacations 1 Total 3,260 Analysed by ownership type Owned and leased 10 Managed 199 Franchised...

  • Page 16
    .... The region further benefited from the receipt of $7m of liquidated damages relating to the removal of a portfolio of Holiday Inn Express hotels in the UK. Regional overheads were in line with 2007, with a $2m increase in costs associated with the new head office offset through further efficiencies...

  • Page 17
    ... 2008. BUSINESS REVIEW EMEA pipeline Hotels At 31 December 2008 Change over 2007 2008 Rooms Change over 2007 Analysed by brand InterContinental 28 Crowne Plaza 25 Holiday Inn 50 Holiday Inn Express 57 Staybridge Suites 12 Other 1 Total 173 Analysed by ownership type Managed 83 Franchised 90 Total...

  • Page 18
    ...Asia Pacific hotel and room count Hotels At 31 December 2008 Change over 2007 2008 Rooms Change over 2007 Analysed by brand InterContinental 40 Crowne Plaza 66 Holiday Inn 101 Holiday Inn Express 24 Other 20 Total 251 Analysed by ownership type Owned and leased 2 Managed 207 Franchised 42 Total 251...

  • Page 19
    ..., reservations systems and Priority Club membership stays. These assessments, typically based upon room revenue, are pooled within the system funds for the collective benefit of all hotels by brand or geography. The assessments are used for revenue generating activities including the costs of call...

  • Page 20
    ... Annual Report and Financial Statements 2008 Business review continued Other financial information Exceptional operating items Exceptional operating costs of $132m consisted of: • $35m in relation to the Holiday Inn relaunch; • $19m of cost savings-related severance costs; • $96m of non-cash...

  • Page 21
    ...the notes to the Group Financial Statements 2008. Net debt at 31 December Borrowings: Sterling US dollar Euro Other Cash Net debt Average debt levels * Including the impact of currency derivatives. 152 889 224 90 (82) 1,273 1,498 553 882 243 98 (117) 1,659 1,075 BUSINESS REVIEW Facilities at 31...

  • Page 22
    ... Annual Report and Financial Statements 2008 Business review continued Our people IHG directly employed an average of 8,334 people worldwide during 2008 whose costs are borne by the Group. When the whole IHG estate is taken into account (including staff working in the managed and franchised hotels...

  • Page 23
    ... of 2008, 74% of all Holiday Inn hotels had received the training which continues to receive excellent reviews from those attending. We have leveraged technology by introducing a learning management system to help employees find and book the training and development they require. A number of online...

  • Page 24
    ... 2008 the Board determined that there would be a pay freeze for all grades during 2009 except in areas of the world where inflation rates would make this difficult to sustain. Ensuring health and safety IHG applies high standards of health and safety for the benefit of all employees and guests...

  • Page 25
    ... to our operations worldwide. A Confidential Disclosure Channel also provides employees with a means to report any ethical concerns they may have. The Code is applicable to all employees and is available on the Company's website at www.ihg.com/investors under corporate governance. BUSINESS REVIEW

  • Page 26
    ...our new online sustainability system, Green Engage, across the globe to integrate 'green' objectives at corporate and hotel level; • Progress our CR target - to make a night's stay with IHG more carbon efficient; • Build on our corporate office sustainability innovations, with the development of...

  • Page 27
    ... be developed and maintained: physical and technical systems, people capabilities and processes and procedures. RISK PROFILE POLICY & STANDARDS Hotel safety framework SECURITY CRISIS & INCIDENT FIRE PROTECTION RISK GROUPS LEISURE SAFETY Risk groups BUSINESS REVIEW GUEST SAFETY STAFF SAFETY...

  • Page 28
    ..., benefit and cost to improve them. This work is documented in Risk Action Plans that support the risks that are reported in the Group Risk Register. Executives review the risks at quarterly strategic reviews as part of their business review with the Chief Executive and strategy team. Global Risk...

  • Page 29
    ... the Group system or to secure management contracts. For example, the availability of suitable sites, planning and other local regulations or the availability and affordability of finance may all restrict the supply of suitable hotel development opportunities under franchise or management agreements...

  • Page 30
    28 IHG Annual Report and Financial Statements 2008 Business review continued The Group may experience a lack of selected development opportunities While the strategy of the Group is to extend the hotel network through activities that do not involve significant amounts of its own capital, if the ...

  • Page 31
    ... structure Policy on external appointments Performance graph Contracts of service Policy regarding pensions Policy on remuneration of Non-Executive Directors Directors' emoluments Annual Bonus Plan Long Term Incentive Plan Share options Directors' pensions THE BOARD, SENIOR MANAGEMENT AND...

  • Page 32
    ... corporate and regional finance, Group financial control, strategy, investor relations, tax, treasury and internal audit. Age 47. Jonathan Linen Non-Executive Director‡ Appointed a Director in December 2005. Was formerly Vice Chairman of the American Express Company, having held a range of senior...

  • Page 33
    ... Group in September 2008, and became Executive Vice President, General Counsel and Company Secretary on 1 January 2009. Responsible for corporate governance, risk management, insurance, data privacy, company secretariat and the global and regional legal teams. Age 38. THE BOARD, SENIOR MANAGEMENT...

  • Page 34
    ... the full Annual Report and Financial Statements 2008. These include the Business Review, the Corporate Governance and Remuneration Reports, and the Group financial statements and these are, accordingly, incorporated into this Directors' Report by reference. Share repurchases The Company continued...

  • Page 35
    ... IHG directly employed an average of 8,334 people worldwide during 2008, whose costs are borne by the Group. When the whole IHG estate is taken into account (including staff working in the managed and franchised hotels) approximately 330,000 people are employed globally across IHG's brands. Further...

  • Page 36
    34 IHG Annual Report and Financial Statements 2008 Directors' report continued Going concern The wider economic climate currently creates trading uncertainty for the hotel industry and IHG. The key business risks for IHG are outlined on pages 26 to 28 of the Business Review but, in particular over ...

  • Page 37
    ...Combined Code on Corporate Governance (the Code) and considers that the Company has complied with the Code requirements throughout the year ended 31 December 2008. As InterContinental Hotels Group PLC's shares are also listed on the New York Stock Exchange (NYSE), the Company is subject to the rules...

  • Page 38
    ... Company during the year: Position Date of original appointment1 It is unavoidable, particularly given the other corporate and international responsibilities of the very experienced people concerned, that, from time to time, individual Non-Executive Directors may be unable to attend a Board meeting...

  • Page 39
    ... into the Group's business. During 2008, visits to operating premises (including hotels) 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 the Company Secretary. His...

  • Page 40
    ... of Association of the Company are available on the Company's website www.ihg.com/investors under corporate governance. The terms and conditions of appointment of Non-Executive Directors are available on request. Independent advice There is an agreed procedure by which members of the Board may...

  • Page 41
    ...Committee of another UK FTSE 100 company. The Committee's principal responsibilities are to: • review the Group's public statements on internal control and corporate governance compliance prior to their consideration by the Board; • review the Group's processes for detecting and addressing fraud...

  • Page 42
    ... services to the Group throughout 2008. The terms of engagement for PwC and Towers Perrin are available from the Company Secretary's office on request. 2 Policy on remuneration of Executive Directors and senior executives The following policy has applied throughout the year and, except where stated...

  • Page 43
    ...senior executives will have specific cost-savings targets in their key performance objectives. Performance targets in the Long Term Incentive Plan (LTIP) for 2009/2011 have been set at stretching levels in the context of the business plan, market expectations, and competitive performance at the time...

  • Page 44
    ... 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. Structure 50% Deferred Shares Annual Bonus Plan 50% Cash EBIT (50%) EBIT (70%) Rooms...

  • Page 45
    ... 2008 Source: Datastream InterContinental Hotels Group PLC - Total Shareholder Return Index 2.6 Contracts of service a) Policy The Committee's policy is for Executive Directors to have rolling contracts with a notice period of 12 months. Andrew Cosslett and Richard Solomons have service agreements...

  • Page 46
    ... 2008 Remuneration report continued 3 Policy on remuneration of Non-Executive Directors Non-Executive Directors are paid a fee which is approved by the Board, having taken account of the fees paid in other companies of a similar complexity. Higher fees are payable to the Senior Independent Director...

  • Page 47
    Remuneration report 45 5 Long-term reward Annual Bonus Plan (ABP) Messrs Cosslett, Porter and Solomons participated in the ABP during the year ended 31 December 2008. Messrs Cosslett and Solomons are expected to receive an award on 23 February 2009. Matching shares are no longer awarded. Directors'...

  • Page 48
    ...This award is based on performance to 31 December 2008 where the performance measure relates to both the Company's TSR against a group of eight other comparator companies and the CAGR of rooms in the IHG system relative to a group of eight other comparator companies. The number of shares released is...

  • Page 49
    ... features applicable to the Executive Directors are: a normal pension age of 60; pension accrual of 1⁄30th of final pensionable salary for each year of pensionable service; life assurance cover of four times pensionable salary; pensions payable in the event of ill health; and spouses', partners...

  • Page 50
    ... pension is that which would be paid annually on retirement at 60, based on service to 31 December 2008. The figures shown in the above table relate to the final salary plans only. For defined contribution plans, the contributions made by and in respect of Stevan Porter during 2008 were: Director...

  • Page 51
    ... auditor's report to the members Group income statement Group statement of recognised income and expense Group cash flow statement Group balance sheet Accounting policies Notes to the Group financial statements 1 Exchange rates 2 Segmental information 3 Staff costs and Directors' emoluments...

  • Page 52
    ...and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and • the Annual Report and the Group financial statements include a review of the development and performance of the business and the...

  • Page 53
    ..., Group statement of recognised income and expense, Group cash flow statement, Group balance sheet, accounting policies and the related notes 1 to 34. These Group financial statements have been prepared under the accounting policies set out therein. We have reported separately on the parent company...

  • Page 54
    ... 5) $m 2007 For the year ended 31 December 2008 Note 2 Total $m Total $m Revenue Cost of sales Administrative expenses Other operating income and expenses Depreciation and amortisation Impairment Operating profit Financial income Financial expenses Profit before tax Tax Profit for the year from...

  • Page 55
    ... benefit pension plans, net of asset restriction Transfers to the income statement On cash flow hedges: financial expenses On disposal of available-for-sale assets: other operating income and expenses Tax Tax on items above taken directly to or transferred from equity Tax related to share schemes...

  • Page 56
    ... tax Equity-settled share-based cost, net of payments Other non-cash items Operating cash flow before movements in working capital Decrease/(increase) in trade and other receivables Increase in trade and other payables Retirement benefit contributions, net of cost Cash flows relating to exceptional...

  • Page 57
    ...Loans and other borrowings Retirement benefit obligations Trade and other payables Deferred tax payable Total non-current liabilities Liabilities classified as held for sale Total liabilities Net assets EQUITY Equity share capital Capital redemption reserve Shares held by employee share trusts Other...

  • Page 58
    ...employee share trusts are translated into US dollars at the rates of exchange on the balance sheet date; the resultant exchange differences are recorded in other reserves. The functional currency of the parent company remains sterling since this is a non-trading holding company located in the United...

  • Page 59
    ... at each balance sheet date. If an available-for-sale financial asset is impaired, the difference between original cost and fair value is transferred from equity to the income statement to the extent of any cumulative loss recorded in equity, with any excess charged directly to the income statement...

  • Page 60
    ...each stay at an IHG branded hotel and redeem the points at a later date for free accommodation or other benefits. The future redemption liability is included in trade and other payables and is estimated using eventual redemption rates determined by actuarial methods and points values. The Group pays...

  • Page 61
    ... The Group charges franchise royalty fees as a percentage of room revenue. Revenue is recognised when earned and realised or realisable under the terms of the agreement. Share-based payments The cost of equity-settled transactions with employees is measured by reference to fair value at the date at...

  • Page 62
    ... - the Group also makes estimates and judgements in the valuation of management and franchise agreements acquired on asset disposals, the valuation of financial assets classified as available-for-sale, the outcome of legal proceedings and claims and in the valuation of share-based payment costs. New...

  • Page 63
    ..., sales and marketing, finance, human resources and corporate services; revenue arises principally from technology fee income. The Group further breaks each geographical region into three distinct business models which offer different growth, return, risk and reward opportunities: Franchised Where...

  • Page 64
    62 IHG Annual Report and Financial Statements 2008 Notes to the Group financial statements continued 2 Segmental information continued Year ended 31 December 2008 Americas $m EMEA $m Asia Pacific $m Central $m Group $m Revenue Owned and leased Managed Franchised Central Continuing operations ...

  • Page 65
    ... information continued Year ended 31 December 2008 Americas $m EMEA $m Asia Pacific $m Central $m Group $m Assets and liabilities Segment assets Non-current assets classified as held for sale Unallocated assets: Current tax receivable Cash and cash equivalents Total assets Segment liabilities...

  • Page 66
    64 IHG Annual Report and Financial Statements 2008 Notes to the Group financial statements continued 2 Segmental information continued Year ended 31 December 2007 Americas $m EMEA $m Asia Pacific $m Central $m Group $m Revenue Owned and leased Managed Franchised Central Continuing operations ...

  • Page 67
    ... a Comprises purchases of property, plant and equipment, intangible assets and associates and other financial assets as included in the Group cash flow statement. b Included in the $116m of depreciation and amortisation is $35m relating to administrative expenses and $81m relating to cost of sales.

  • Page 68
    ...695) people who work in managed hotels or directly on behalf of the system funds and whose costs of $235m (2007 $216m) are borne by those hotels or by the funds. 2008 $m 2007 $m Directors' emoluments Base salaries, fees, performance payments and benefits 7.8 9.3 More detailed information on the...

  • Page 69
    ... of the Holiday Inn brand family that was announced on 24 October 2007. b Relates to further costs incurred on the relocation of the Group's head office and the closure of its Aylesbury facility. c Severance costs relate to redundancies arising from a review of the Group's cost base in light of the...

  • Page 70
    ... is $12m (2007 $21m) payable to the Group's loyalty programme relating to interest on the accumulated balance of cash received in advance of the redemption of points awarded. 7 Tax Note 2008 $m 2007 $m Income tax UK corporation tax at 28.5% (2007 30.0%): Current period Benefit of tax reliefs on...

  • Page 71
    ... Tax continued 2008 % 2007 % Reconciliation of tax charge on total profit, including gain on disposal of assets UK corporation tax at standard rate Non-deductible expenditure and non-taxable income Net effect of different rates of tax in overseas businesses Effect of changes in tax rates Benefit of...

  • Page 72
    ... as: Basic weighted average number of ordinary shares Dilutive potential ordinary shares - employee share options 287 9 296 2008 Continuing operations Total Continuing operations 320 9 329 2007 Total Adjusted earnings per ordinary share Profit available for equity holders ($m) Adjusting items...

  • Page 73
    ... and arises from year-end value in use calculations, taking into account the current economic climate. Estimated future cash flows have been discounted at 13.5%. The charge has been included within impairment on the Group income statement and relates to the Americas business segment. At 31 December...

  • Page 74
    ... for sale. 2008 $m 2007 $m Net assets of hotels sold Property, plant and equipment Net working capital Cash and cash equivalents Minority equity interest Group's share of net assets disposed of Consideration Current year disposals: Cash consideration, net of costs paid Management contract value Net...

  • Page 75
    ... Results of discontinued operations Revenue Cost of sales Depreciation and amortisation Operating profit Tax Profit after tax Gain on disposal of assets, net of tax (note 5) Profit for the year from discontinued operations 43 (29) 14 - 14 (5) 9 5 14 2008 cents per ordinary share 79 (59) 20 (3) 17...

  • Page 76
    ... based on perpetual growth rates that do not exceed the average long-term growth rates for the relevant markets. The cash flows are discounted using management estimates of the pre-tax rates that reflect current market assessments of the time value of money and the risks specific to the CGUs. The...

  • Page 77
    ...the Group income statement and relates to the EMEA business segment. 14 Investment in associates The Group holds five investments (2007 seven) accounted for as associates. The following table summarises the financial information of the associates: 2008 $m 2007 $m Share of associates' balance sheet...

  • Page 78
    .... Listed equity share valuation is based on observable market prices. Dividend income from availablefor-sale equity securities of $11m (2007 $16m) is reported as other operating income and expenses in the Group income statement. Other financial assets consist of trade deposits, restricted cash and...

  • Page 79
    ... are generally on payment terms of up to 30 days. The fair value of trade and other receivables approximates their carrying value. The maximum exposure to credit risk for trade and other receivables, excluding prepayments, at the balance sheet date by geographic region is: 2008 $m 2007 $m Americas...

  • Page 80
    ... are held on the Group balance sheet at fair value. Fair value is estimated using discounted future cash flows taking into consideration interest and exchange rates prevailing at the balance sheet date. 20 Loans and other borrowings 2008 Current $m Non-current $m Total $m Current $m Non-current...

  • Page 81
    ... and forward rate agreements. Based on the year end net debt position and given the underlying maturity profile of investments, borrowings and hedging instruments at that date, a one percentage point rise in US dollar interest rates would increase the annual net interest charge by approximately...

  • Page 82
    80 IHG Annual Report and Financial Statements 2008 Notes to the Group financial statements continued 21 Financial risk management policies continued At the year end, the Group had surplus cash of $82m which is held in short-term deposits and cash funds which allow daily withdrawals of cash. Most ...

  • Page 83
    ... balance sheet and the periods in which they reprice, if earlier than the maturity date: Repricing analysis Effective interest rate % Total carrying amount $m Less than 6 months $m Between 6 months and 1 year $m Between 2 and 3 years $m Between 3 and 4 years $m More than 5 years $m 31 December 2008...

  • Page 84
    ... of the investments and deposits. Equity securities available-for-sale and derivatives are held on the balance sheet at fair value as set out in note 15. The fair value of other financial assets approximates book value based on prevailing market rates. The fair value of borrowings, excluding finance...

  • Page 85
    ... 47 386 (1,659) (1,273) 24 Retirement benefits Retirement and death in service benefits are provided for eligible Group employees in the UK principally by the InterContinental Hotels UK Pension Plan. The plan, which is funded and HM Revenue & Customs registered, covers approximately 460 (2007 440...

  • Page 86
    ... amounts recognised in the Group balance sheet are: Pension plans UK 2008 $m 2007 restated* $m 2008 $m US and other 2007 $m Post-employment benefits 2008 $m 2007 $m 2008 $m Total 2007 restated* $m Schemes in surplus Fair value of plan assets Present value of benefit obligations Surplus in schemes...

  • Page 87
    ... Kong) pension scheme. UK US and other 2008 $m 2007 $m Post-employment benefits 2008 $m 2007 $m 2008 $m Total 2007 $m Movement in plan assets Fair value of plan assets at beginning of year Company contributions Members' contributions Benefits paid Reclassification* Expected return on plan assets...

  • Page 88
    ... and expected rate of return are: 2008 Long-term rate of return expected % Long-term rate of return expected % 2007 Value $m Value $m UK pension plans Liability matching investment funds Equities Bonds Other Total market value of assets US pension plans Equities Fixed income Total market value of...

  • Page 89
    ... middle market quoted prices on the three consecutive dealing days immediately preceding the date of grant. A number of executives participated in the plan during the year and conditional rights over 661,657 (2007 675,515) shares were awarded to participants. Long Term Incentive Plan The Long Term...

  • Page 90
    ...were granted under the Executive Share Option Plan, Sharesave Plan or US Employee Stock Purchase Plan during the year. Annual Bonus Plan Long Term Incentive Plan Number of shares awarded in 2008 661,657 5,060,509 In 2008 and 2007, the Group used separate option pricing models and assumptions for...

  • Page 91
    ... Fair value of awards granted during the year 2008 2007 Weighted average remaining contract life (years) At 31 December 2008 At 31 December 2007 The above awards do not vest until the performance and service conditions have been met. Sharesave Plan Number of shares thousands Range of option prices...

  • Page 92
    ... under the Executive Share Option Plan are exercisable. 26 Deferred tax payable Property, plant and equipment $m Deferred gains on loan notes $m Employee benefits* $m Intangible assets $m Other short-term temporary differences** $m Losses $m Total $m At 1 January 2007 Income statement Statement...

  • Page 93
    ... future. However, future benefits may arise depending on future profits arising or on the outcome of EU case law and legislative developments. At 31 December 2008, the Group has not provided deferred tax in relation to temporary differences associated with post-acquisition undistributed earnings of...

  • Page 94
    ... arising on the retranslation to period-end exchange rates of equity share capital, the capital redemption reserve and shares held by employee share trusts. Unrealised gains and losses reserve This reserve records movements to fair value of available-for-sale financial assets and the effective...

  • Page 95
    ...$35m has been charged in 2008. 32 Contingencies 2008 $m 2007 $m Contingent liabilities not provided for in the Group financial statements relating to guarantees 12 10 In limited cases, the Group may provide performance guarantees to third-party owners to secure management contracts. The maximum...

  • Page 96
    ... Report and Financial Statements 2008 Notes to the Group financial statements continued 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 Equity...

  • Page 97
    ...Parent company balance sheet Notes to the parent company financial statements 1 Accounting policies 2 Employees and Directors 3 Investments 4 Debtors 5 Creditors: amounts falling due within one year 6 Share capital 7 Movements in reserves 8 Reconciliation of movements in shareholders' funds 9 Profit...

  • Page 98
    ... statements Parent company balance sheet 2008 31 December 2008 Note £m 2007 restated* £m Fixed assets Investments Current assets Debtors Creditors: amounts falling due within one year Net current liabilities Net assets Capital and reserves Called up share capital Share premium account Capital...

  • Page 99
    ...capital risk management policy is set out in note 21 of the Group financial statements on page 80. 2 Employees and Directors 2008 2007 Average number of employees (Non-Executive Directors) 7 2008 £m 7 2007 £m Staff costs 1 1 Detailed information on the emoluments, pensions, option holdings...

  • Page 100
    ... date * The weighted average option price was 543.6p for shares exercised under the Executive Share Option Plan and 420.5p for shares exercised under the Sharesave Plan. 8,251 (356) (211) 7,684 308.5-619.8 4 April 2015 The authority given to the Company at the Annual General Meeting on 30 May 2008...

  • Page 101
    ... 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 102
    ... in the Annual Report and consider whether it is consistent with the audited parent company financial statements. The other information comprises only the Highlights, Chairman's statement, Chief Executive's review, Business Review, Directors' Report, Corporate Governance, Audit Committee Report and...

  • Page 103
    ... a glossary of terms used in the Annual Report and Financial Statements 2008 and some analyses of our share ownership at the end of 2008. 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. 102 103...

  • Page 104
    ... rate multiplied by average daily rate). number of rooms owned, leased, managed or franchised by IHG. revenue generated from the sale of room nights. the percentage of room revenue that a franchisee pays to the brand owner for use of the brand name. a company in which the Group holds an equity...

  • Page 105
    ... and senior management; events that adversely impact domestic or international travel; the risks involved in the Group's reliance upon its proprietary reservations system and increased competition in reservations infrastructure; the risks in relation to technology and systems; the risks of the hotel...

  • Page 106
    ... Report for 2008 covering progress on a range of environmental, social and community issues. This is available on our corporate website and can be downloaded directly at www.ihg.com/responsibility American Depositary Receipts (ADRs) The Company's shares are listed on the New York Stock...

  • Page 107
    ... date Record date Payment date Payment date Registered office Broadwater Park Denham Buckinghamshire UB9 5HR Telephone +44 (0) 1895 512 000 Fax +44 (0) 1895 512 101 www.ihg.com For general information about the Group's business please contact the Corporate Affairs department at the above address...

  • Page 108
    InterContinental Hotels Group PLC Broadwater Park Denham, Buckinghamshire, UB9 5HR Telephone +44 (0) 1895 512 000 Fax +44 (0) 1895 512 101 Holiday Inn Hotel & Suites Oakland-Airport, California, USA make a booking at www.ihg.com