Holiday Inn 2012 Annual Report Download - page 28

Download and view the complete annual report

Please find page 28 of the 2012 Holiday Inn annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

26 IHG Annual Report and Financial Statements 2012
Greater China results
12 months ended 31 December
2012
$m
2011
$m
%
change
Revenue
Franchised 32 50.0
Managed 89 77 15.6
Owned and leased 138 126 9.5
Total 230 205 12.2
Operating profit before exceptional items
Franchised 43 33.3
Managed 51 43 18.6
Owned and leased 45 37 21.6
100 83 20.5
Regional overheads (19) (16) (18.8)
Total 81 67 20.9
Greater China comparable RevPAR movement on previous year
12 months ended
31 December 2012
Managed
All brands 5.6%
Owned and leased
InterContinental 6.7%
Revenue and operating profit before exceptional items increased by
$25m (12.2%) to $230m and by $14m (20.9%) to $81m respectively.
RevPAR increased 5.4% with 3.1% growth in average daily rate.
Franchised revenue increased by $1m (50.0%) to $3m and operating
profit by $1m (33.3%) to $4m, boosted by the opening of the
1,224-room Holiday Inn Macao Cotai Central.
Managed revenue increased by $12m (15.6%) to $89m and operating
profit increased by $8m (18.6%) to $51m. RevPAR growth of 5.6%
reflected continued economic growth in the region, although the
whole industry was affected in the latter part of the year by the once
in a decade political leadership change and the Diaoyu/Senkaku
islands territorial dispute. There was also continued significant
System size growth for the managed estate in the region (9.7% rooms
growth in 2012 following 14.2% rooms growth in 2011).
Owned and leased revenue increased by $12m (9.5%) to $138m and
operating profit increased by $8m (21.6%) to $45m, with RevPAR
growth of 6.7% at the InterContinental Hong Kong.
Regional costs increased by $3m (18.8%) to $19m reflecting
increased investment in operations and infrastructure in the region.
Greater China
Maximise scale and strength and establish multi-segment local
operating expertise to drive margin and expand our strong portfolio
of Brands over the next three years.
2013 priorities
• Grow distribution and expand our portfolio of Brands with a particular focus on Crowne Plaza
Hotels & Resorts and HUALUXE Hotels & Resorts;
• build upon the success of the Holiday Inn relaunch to continue to grow the Holiday Inn
brand family;
• extend IHG’s leading presence in the market with strategic distribution of brands in
established and emerging cities in Greater China; and
• localise IHG channels, systems, processes, brands, Responsible Business practices
and People Tools to increase efficiency and margin performance.
Business Review: Performance continued