Holiday Inn 2011 Annual Report Download - page 39

KEY MARKETS PERFORM WELL
RevPAR grew 4.7 per cent, including
rate growth of 2.9 per cent. Occupancy
continued at a high level – consistently
so on weekdays.
Our London 2012 activities alone
generated over £8 million in extra
revenue for our hotels in 2011. Further
hot spots were France, the Netherlands,
Belgium, Russia and Turkey.
The overall pace of growth slowed,
however, as the Eurozone crisis unfolded.
Whatever economic conditions lie ahead,
we are cautiously optimistic and in good
shape to capture a fair share of Europe’s
future hotel market.
HOTEL INDIGO EXPANDS
We signed a franchise agreement to
introduce Hotel Indigo to Russia in 2012.
Hotel Indigo St Petersburg Tchaikovsky
will create 124 rooms and 80 jobs.
Having launched into Europe with Hotel
Indigo London Paddington in 2008, we
now have five hotels open and 11 in
the pipeline.
Three new properties opened in the UK in
2011 and our first for continental Europe
opened in Berlin in January 2012.
The brand has strong appeal for owners,
especially in the current climate. It offers
high-quality hotels, low operating costs
and is suited to both conversion and
new-builds. In Lisbon, for example, we
will bring a converted convent to market
in 2014.
MISSION RUSSIA
Angela Brav joined UK Prime Minister
David Cameron and other officials on a
trade mission to Russia in November.
The event coincided with news that we
plan to have 100 hotels open across
Russia and the Commonwealth of
Independent States by 2020, creating
8,000 new jobs. In addition, we will open
a Moscow branch of the IHG Academy
programme in 2012.
Moscow is forecast to double in size by
2025, creating great scope for hotel growth.
Having first entered Russia in 1998 with
the Holiday Inn Vinogradovo Moscow,
we now have 13 hotels open and five in
the pipeline.
One of our latest, the InterContinental
Moscow-Tverskaya, welcomed its first
guests in December. We’re also
expanding beyond Moscow and
St Petersburg into new cities such
as Chelyabinsk, Novosibirsk and
Ekaterinburg.
OLYMPIC SPRINT
Holiday Inn London Stratford City and
Staybridge Suites London Stratford City will
both open in May, in time for the London
2012 Olympic and Paralympic Games.
Our first Staybridge Suites for London,
this flagship East London regeneration
project caters for both extended stay and
transient guests. All of our 31 London
hotels with LOCOG accommodation
agreements are 86 per cent booked for
official, media and Olympic visitors for
the duration of the Games (see page 16).
more on the web: www.ihgplc.com Where we operate 37
OVERVIEW GREAT BRANDS HOW WE OPERATE WHERE WE OPERATE FACTS AND FIGURES
Our sights are set on operating high-quality hotels that out-perform their sectors in this new,
predominantly franchised region. We are working to improve brand performance and boost scale
in key markets, notably Germany, the UK and emerging Russia and Turkey.
PERFORMANCE HIGHLIGHTS
• Revenue per available room (RevPAR) up 4.7%
• Revenue up 24% to $405m
• Operating prot* up 33% to $104m
*Before exceptional items
TOTAL ROOMS OPEN 99,885
Rooms in pipeline 16,682
TOTAL HOTELS OPEN 612
Hotels in pipeline 98
“We need to engage owners in driving
RevPAR by helping them to get the
right mix between occupancy and
rate. It’s important to make sure our
brands are delivered consistently,
because this will provide a greater
return on investment.”
Angela Brav
Chief Executive, Europe
NUMBER OF ROOMS BY BUSINESS MODEL
Franchised 76,811
Managed 22,157
Owned & Leased 917
EUROPE
The InterContinental Paris Le Grand will celebrate
its 150th anniversary in 2012.