Holiday Inn 2008 Annual Report Download - page 13

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BUSINESS REVIEW
Business review 11
Hotels Rooms
Change Change
At 31 December 2008 over 2007 2008 over 2007
Analysed by brand
InterContinental 159 10 54,736 3,974
Crowne Plaza 342 43 93,382 10,212
Holiday Inn 1,353 (28) 249,691 (7,008)
Holiday Inn Express 1,932 124 173,794 17,263
Staybridge Suites 152 30 16,644 3,178
Candlewood Suites 204 46 20,641 3,816
Hotel Indigo 22 11 2,702 1,201
Holiday Inn Club
Vacations 112,412 2,412
Other 21 –5,849 (291)
Total 4,186 237 619,851 34,757
Analysed by ownership type
Owned and leased 16 (2) 5,644 (752)
Managed 585 46 148,240 13,357
Franchised 3,585 193 465,967 22,152
Total 4,186 237 619,851 34,757
During 2008, the IHG global system (the number of hotels and
rooms which are owned, leased, managed or franchised by the
Group) increased by 237 hotels (34,757 rooms; 5.9%) to 4,186 hotels
(619,851 rooms). Openings of 430 hotels (59,353 rooms) were
driven, in particular, by continued expansion in the US, the UK,
the Middle East and China.
As in recent years, system size growth was driven by brands in the
midscale limited service and extended stay segments, with Holiday
Inn Express representing over 50% of the total net movement (124
hotels, 17,263 rooms) and Staybridge Suites and Candlewood Suites
combined representing approximately 30% of total net hotel growth.
The youngest brand in the IHG portfolio, Hotel Indigo, continues to
grow, with 11 hotels (1,201 rooms) added during the year. In order to
expand IHG’s global reach, brands established in the Americas have
been transitioned to other regions, with the opening of Staybridge
Suites hotels in Liverpool and Cairo, the opening of the Hotel Indigo
London Paddington and the signing of a management contract for a
Hotel Indigo in Shanghai. As a consequence of the continued drive to
increase quality through the removal of non-brand conforming hotels,
the Holiday Inn hotel and room count showed a net decline (28 hotels,
7,008 rooms). This strategy is further supported by the worldwide
brand relaunch of the Holiday Inn brand family, which entails the
consistent delivery of best-in-class service and physical quality in all
Holiday Inn and Holiday Inn Express hotels. At the year end 274 hotels
were open under the updated signage and brand standards.
Global hotel and room count
Global pipeline
Hotels Rooms
Change Change
At 31 December 2008 over 2007 2008 over 2007
Analysed by brand
InterContinental 71 921,884 1,871
Crowne Plaza 133 15 41,469 5,107
Holiday Inn 387 22 64,261 7,316
Holiday Inn Express 719 770,270 128
Staybridge Suites 166 918,109 959
Candlewood Suites 242 35 21,790 3,185
Hotel Indigo 56 47,212 647
Other 1–90 –
Total 1,775 101 245,085 19,213
Analysed by ownership type
Owned and leased 11185 185
Managed 300 53 87,941 16,127
Franchised 1,474 47 156,959 2,901
Total 1,775 101 245,085 19,213
Global pipeline signings
Hotels Rooms
Change Change
2008 over 2007 2008 over 2007
Total 693 (180) 98,886 (26,647)
At the end of 2008, the IHG pipeline totalled 1,775 hotels
(245,085 rooms). The IHG pipeline represents hotels and rooms
where a contract has been signed and the appropriate fees paid.
Sometimes, a hotel will not open for reasons such as the financing
being withdrawn. In the year, room signings across all regions
of 98,886 rooms led to pipeline growth of 19,213 rooms. While
signings were below the record level of 2007, the level of signings
and pipeline growth demonstrates strong demand for IHG brands
across all regions and represents a key driver of future profitability.