Holiday Inn 2011 Annual Report Download - page 38

BUILDING PERFORMANCE
RevPAR grew 7.5 per cent, including rate
growth of 2.8 per cent.
We beat our own targets and performed
well in every hotel sector, bar Crowne
Plaza’s. The upscale brand is now
in the first stage of a comprehensive
repositioning (see page 10).
We completed the Holiday Inn refresh, save
for a handful of properties undergoing
major renovation or reconstruction.
Crucial to this, in the US, our biggest
market, total RevPAR including the benefit
of new hotels grew 9.5 per cent in the year,
out-performing the industry as a whole.
MAINTAINING MOMENTUM
Despite the tough financing environment,
we have a larger pipeline than any other
major competitor.
In all, we opened 168 hotels and signed
a further 244. Highlights included: a
20-year agreement to manage the
InterContinental near Viña del Mar, Chile;
the opening of Canada’s largest Holiday
Inn; a new Holiday Inn Resort for
Acapulco in Mexico; and the official
launch of InterContinental Alliance
Resorts (see page 8).
FIRST FOR GUEST SATISFACTION
In the J.D. Power and Associates¤ 2011
North America Hotel Guest Satisfaction
Index StudySM, Holiday Inn and Hotel
Indigo both received awards. Hotel Indigo
was ranked ‘Highest in Guest Satisfaction
Among Upscale Hotel Chains’ and Holiday
Inn was ranked ‘Highest in Guest
Satisfaction among Mid-Scale Full
Service Hotel Chains’. This confirms the
impact of our brand development work.
ROOMS FOR SOLDIERS
We are honoured to be supporting
troops and their families through the
Privatization of Army Lodging into
IHG Army Hotels.
With partners Lend Lease, we opened a
second wave of Army rooms under three
brands this year: Holiday Inn Express,
Staybridge Suites and Candlewood
Suites. Separately, we launched a
wounded warriors training programme
offering management opportunities to
candidates who might otherwise find
it difficult to return to work.
The project has provided about 3,200
rooms since 2009 and was extended
by a further 5,000 in 2011. In all, we now
manage more than 8,000 rooms and
47 hotels on army bases.
This initiative provides high-grade
lodging for all ranks, either by converting
or rebuilding former Army-run properties.
For IHG, it creates a new customer
segment, while soldiers also benefit from
Priority Club Rewards membership.
Long term, we hope to expand by at
least another 8,000 rooms in the US.
NEW YORK PARTNERSHIP
We signed a joint venture with Brack
Capital Real Estate to acquire and
develop 180 Orchard Street in
Manhattan’s Lower East Side. Due to
open in 2013, it will house New York City’s
second Hotel Indigo. Our investment was
$30 million. We hope this is the start of
a developing relationship with Brack.
36 IHG Annual Review and Summary Financial Statement 2011
New brand hallmarks, IHG People Tools, industry-leading performance, a joint venture agreement
for Hotel Indigo, fresh décor for our extended stay hotels, and more lodging for US troops –
it’s been a busy and rewarding year in The Americas.
PERFORMANCE HIGHLIGHTS
• Revenue per available room (RevPAR) up 7.5%
• Revenue up 3% to $830m
• Operating prot* up 22% to $451m
*Before exceptional items
TOTAL ROOMS OPEN 442,198
Rooms in pipeline 84,450
TOTAL HOTELS OPEN 3,473
Hotels in pipeline 775
“I’ve inherited a very strong team.
People here are doing great work
driving our brands ahead of the
competition. My thanks also go
to our hotel owners and their
employees for all they’re doing
to improve the guest experience.”
Kirk Kinsell
President, The Americas
NUMBER OF ROOMS BY BUSINESS MODEL
Franchised 398,680
Managed 41,222
Owned & Leased 2,296
THE AMERICAS
Holiday Inn Resort Acapulco, Mexico