Holiday Inn 2011 Annual Report Download - page 41

SUPERIOR PERFORMANCE
RevPAR grew 10.7 per cent, including rate
growth of 5.9 per cent. Adjusted to account
for the one-off effect of 2010’s Shanghai
World Expo, a pattern of consistently
strong region-wide growth emerges.
Performance was evenly balanced
across the brands and territorially we
were strong right across mainland
China, Hong Kong, Taiwan and Macau.
Our business remains largely domestic,
with 72 per cent of guests coming from
within mainland China. The burgeoning
economy, coupled with rapid urban
development, is transforming the
country – and the hotel sector is a
major beneficiary.
SMART CHOICE
The Holiday Inn Express brand changed
to the Chinese name Zhi Xuan Jia Ri,
which translates in English as Holiday
Inn Smart Choice.
‘Express’ in China had become
synonymous with budget brands. After
extensive consumer research, we are
confident that the new name captures
the essence of our limited-service hotels
for Chinese guests but also carries the
heritage of the world-renowned Holiday
Inn brand.
ON TARGET TO DOUBLE IN SIZE
We added 26 hotels and 8,084 rooms
in 2011, ending the year with 167 hotels.
In all, we opened four InterContinental,
11 Crowne Plaza, seven Holiday Inn and
five Holiday Inn Express hotels.
With a pipeline of another 149, we remain
on target to double in size over the next
four to five years.
Having been operational here for 27
years, our share of branded hotel rooms
pipeline stands at 25 per cent.
STRATEGIC SIGNINGS
In May we signed with one of China’s
leading state-owned developers, Poly Real
Estate, to manage six new hotels under
three brands. Located in the provinces of
Guangdong and Jiangxi, they will include
three InterContinental hotels and increase
this prestigious owner’s hotels with us
from three to nine.
In December we partnered with Yanlord
Land Group to manage a Crowne Plaza
and Hotel Indigo in the Haitang Bay area
of Sanya, one of China’s most popular
resort destinations.
All eight signings are scheduled to be
up and running by 2015.
LOCAL EMPHASIS
We launched a refreshed Chinese
language website to address the very
specific way that China’s domestic
travellers use the internet and book
hotels.
A local approach is equally vital in our
search for talent. In 2011, we unveiled
a new Chinese language e-recruitment
site, together with six additional
partnerships under the IHG Academy
programme – bringing the number
of academies across China to 28
(see page 32).
more on the web: www.ihgplc.com Where we operate 39
OVERVIEW GREAT BRANDS HOW WE OPERATE WHERE WE OPERATE FACTS AND FIGURES
The scale we are building in Greater China began to reap big rewards in 2011. The strength of
our brands, our people and financial returns reflect the years of work that have gone into creating
a leading hotel business in this buoyant market.
“This was a year of balanced growth
across all brands and all markets.
On the one hand, we’ve created
scale and added value for our
stakeholders. On the other, we’ve
retained a local emphasis and
stayed true to the Chinese market.”
Keith Barr
Chief Executive, Greater China
GREATER CHINA
PERFORMANCE HIGHLIGHTS
• Revenue per available room (RevPAR) up 10.7%
• Revenue up 15% to $205m
• Operating prot* up 24% to $67m
*Before exceptional items
TOTAL ROOMS OPEN 55,182
Rooms in pipeline 49,768
TOTAL HOTELS OPEN 167
Hotels in pipeline 149
NUMBER OF ROOMS BY BUSINESS MODEL
Franchised 963
Managed 53,724
Owned & Leased 495
Crowne Plaza Beijing Parkview Wuzhou, China