Holiday Inn 2008 Annual Report Download - page 6

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4IHGAnnual Report and Financial Statements 2008
InterContinental Hotels
& Resorts
In the Know
159 HOTELS, 54,736 ROOMS
71 HOTELS, 21,884 ROOMS
IN DEVELOPMENT PIPELINE
Crowne Plaza
The Place To Meet
342 HOTELS, 93,382 ROOMS
133 HOTELS, 41,469 ROOMS
IN DEVELOPMENT PIPELINE
Hotel Indigo
Escape the Mundane
22 HOTELS, 2,702 ROOMS
56 HOTELS, 7,212 ROOMS
IN DEVELOPMENT PIPELINE
Holiday Inn
Relax, it’s Holiday Inn
1,353 HOTELS, 249,691 ROOMS
387 HOTELS, 64,261 ROOMS
IN DEVELOPMENT PIPELINE
Holiday Inn Express
Stay Smart
1,932 HOTELS, 173,794 ROOMS
719 HOTELS, 70,270 ROOMS
IN DEVELOPMENT PIPELINE
Staybridge Suites
Get Comfortable
152 HOTELS, 16,644 ROOMS
166 HOTELS, 18,109 ROOMS
IN DEVELOPMENT PIPELINE
Candlewood Suites
Feel Free
204 HOTELS, 20,641 ROOMS
242 HOTELS, 21,790 ROOMS
IN DEVELOPMENT PIPELINE
Priority Club Rewards
It’s easier. Enjoy
42 MILLION
MEMBERS WORLDWIDE
7 great hotel brands
and our multi-award-winning
loyalty programme,
Priority Club Rewards
Questions & Answers
with the Chief Executive:
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 business. The benefits of this include a more
predictable income stream and high cash generation.
We own fewer properties ourselves now and our growth is
funded by third-party investment. This growth helps us be
more resilient in a tougher economic environment as the
revenue we receive from new rooms helps offset that lost
from declines in RevPAR. We are confident our strategy
and business model set us up well to weather the storm.
What is IHG doing to respond to the changing
market conditions?
Over the past few years, we have taken a number of
strategic decisions to set the business up for tougher
times. We have established a new procurement function
to make the most of our scale, invested in technology and
our reservations systems and focused our marketing
spend on short-term tactical marketing and long-term
brand development. We will continue to review our cost
base on an ongoing basis and invest in those things that
drive guests to our hotels and revenues to our owners.
Is IHG any more advantaged than any other
hotel company?
As one of the biggest hotel operators, we have the
advantage of scale. We have a number of strong brands
across different price points, in nearly 100 countries
around the world. Then we have the support structure –
our reservations systems and our $1 billion marketing
fund – to deliver more guests to our hotels. This is why
owners choose our brands.
We have a great management team to lead the business.
The loss of Steve Porter has been felt widely across
IHG and the industry and he will be sorely missed as
a colleague and as a friend. We are delighted, however,
to welcome Jim Abrahamson to the Group, who brings
with him a wealth of experience of hotel operations in
the Americas region.
We also have a great working relationship with our
owners, both directly and through the IAHI, The Owners’
Association. During these difficult times, it is even more
important to work side by side with our owners so that
we can deliver Great Hotels Guests Love.
Chief Executive’s review continued