Holiday Inn 2009 Annual Report Download - page 114

112 IHG Annual Report and Financial Statements 2009
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 profit available for IHG equity holders
ordinary share divided by the weighted average number
of ordinary shares in issue during the year.
Capital expenditure purchases of property, plant and
equipment, intangible assets and associate
investments.
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.
Contingencies liabilities that are contingent upon the
occurrence of one or more uncertain
future events.
Continuing operations operations not classified as discontinued.
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 co-ordinated 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 hotels 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.
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 hotels 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.
Pipeline hotels/rooms that will enter the Group’s
system at a future date. A new property
only enters the pipeline once a contract
has been signed and the appropriate fees
paid. In rare circumstances, a hotel will
not open for reasons such as the financing
being withdrawn.
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 franchised, managed,
owned or leased by IHG.
Room revenue revenue generated from the sale of
room nights.
Royalty revenues room revenue that a franchisee pays to the
brand owner for use of the brand name.
Subsidiary undertaking a company over which the Group exercises
control.
System size the number of hotels/rooms franchised,
managed, owned or leased by IHG.
Technology income income received from hotels under
franchise and management agreements
for the use of IHG’s proprietary
reservations system.
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.
UK GAAP United Kingdom Generally Accepted
Accounting Practice.
Working capital the sum of inventories, receivables and
payables of a trading nature, excluding
financing items such as corporate taxation.
Glossary