Holiday Inn 2011 Annual Report Download - page 25

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more on the web: www.ihgplc.com How we operate 23
OVERVIEW GREAT BRANDS HOW WE OPERATE WHERE WE OPERATE FACTS AND FIGURES
HOW WE OPERATE
Our business model
We run hotels in three ways: franchised; managed; and owned.
Our asset-light business model means we own just 11 hotels today. Most of our hotels operate
under franchise agreement or are managed by IHG on behalf of owners. All are supported by
our revenue management tools and many by our IHG People Tools.
Our set up
Our system
The IHG system powers our business. It builds guest preference for our brands; drives reservations
and revenues to our hotels; and is a key reason why over 4,000 hotel owners choose to work with us.
We want our owners to feel part of something bigger and to have the resources to operate hotels
better than they could do on their own.
SCALE
4,480 hotels
153 million guests annually
REVENUE MANAGEMENT
World-class
systems
RESERVATIONS SYSTEMS
11 call centres
12 languages
BRAND PORTFOLIO
Seven preferred
hotel brands
PRIORITY CLUB REWARDS
63 million members,
contributing over $6.9bn to
global system rooms revenue
MARKET COVERAGE
Leadership in 13
of top 20 markets
SALES FORCE
17,600 sales professionals
3,500 accounts
WEB/MOBILE
11 language sites
Eight language apps
FOOD AND BEVERAGE
Over $4.6bn of Food &
Beverage revenue and
over 4,500 outlets worldwide
SYSTEM FUND
Annual fund totalling $1.2bn
to maintain marketing and
systems that generate
demand for our hotels
69%
room revenue delivery
MANAGED
We manage 637 hotels
worldwide
OWNED AND LEASED
We own 11 hotels worldwide
(less than one per cent of our
portfolio)
IHG
IHG
IHG
IHG
IHG usually
supplies
General
Manager as
a minimum
IHG
Third-party
IHG
Low/none
High
FRANCHISED
This is the largest part of our
business: 3,832 hotels operate
under franchise agreements
IHG IHG Third-party Third-party None Fee % of
rooms
revenue
BRAND
OWNERSHIP
MARKETING AND
DISTRIBUTION
STAFF
HOTEL
OWNERSHIP
IHG CAPITAL
IHG INCOME
Fee % of total
revenue plus
% of profit
All revenues
and profits