Holiday Inn 2013 Annual Report Download - page 40

We measure our performance through a holistic set of carefully selected KPIs to monitor our success in
achieving our strategy and the progress of our Group todeliver high-quality growth. The KPIs are organised
around the elements of our strategy – our Winning Model and Targeted Portfolio, and Disciplined Execution.
Winning Model and Targeted Portfolio
KPIs 2013 progress 2014 priorities
Net rooms supply2• IHG System size of 686,873 rooms (4,697 hotels) reflecting
1.6% net IHG System size growth. The slower growth rate
reflects a higher level of removals to maintain the quality of
our estate, including 17 hotels for which significant liquidated
damages totalling $46m were received.
• Completed disposal of our leasehold interest in the
InterContinental London Park Lane and agreed to dispose of
80% of our interest in the InterContinental New York Barclay,
retaining 20% in a joint venture, and entered into long-term
management contracts on both hotels.
• Pipeline of 180,461 rooms (1,120 hotels), including 21 hotels
in the pipeline for the HUALUXE brand and five hotels in the
pipeline for the EVEN brand (three of which are owned).
• Lower growth in fee revenues compared to 2012 reflects a
combination of lower RevPAR growth and lower net IHG
System size growth in 2013.
• An increasing number of open hotels in developing markets,
which drive incremental fees at a lower rate, also contributed
to lower growth in fee revenues.
• Accelerate growth strategies in
priority markets and key locations in
agreed scale markets and continue
to leverage scale.
• Support growth of our new brands EVEN
Hotels and HUALUXE Hotels & Resorts,
opening our first hotels.
Growth in fee revenues2
Total gross revenue • Total gross revenue from hotels in IHG’s System – $21.6bn,
up 2%.
• Loyalty programme relaunched to IHG Rewards Club offering
enhanced benefits for members, including free internet access
across our hotels globally – driving a 10 percentage point
increase in awareness of IHG as a brand family.
• Enrolled 6m new members (up 8% on 2012) to IHG Rewards
Club, taking the total to 77.4m members.
• Continue to strengthen IHG’s revenue
delivery systems to deliver profitable
demand to hotels.
• Continue to drive loyalty to our
portfolio of brands, driving awareness
of IHG Rewards Club and leveraging
this across our brands and regions.
• Continue to drive adoption and impact
of our performance tools, systems and
processes amongst our owners.
• Continue with investment in technology
systems and platforms.
System contribution
to revenue1
Employee Engagement
survey scores
• Continued to deliver against our people strategy, increasing
our employee engagement by 3.1% and recognised externally
as an employer of choice (see page 23).
• Launched bespoke, country-specific careers web pages and/or
websites in India, Russia and Greater China to continue our aim
to be employer of choice.
• Strengthen our approach to developing
leaders and invest in tools and training
that build leadership capabilities.
• Continue to build a winning culture
through strong leadership and
performance management.
• Continue to strengthen our talent
pipeline to meet our growth ambitions.
Global RevPAR growth1, 2 • Growth in global RevPAR has slowed in 2013, reflecting slower
growth in The Americas and IHG’s predominantly midscale
focus, and more significant slow down in Greater China due
to industry-wide challenges (see pages 12 and 13).
• Recorded improvements in guest satisfaction scores in
every region, for all of our brands and received external
recognition through awards (see page 23).
• Continued with the repositioning of the Crowne Plaza
brand and refreshed marketing messaging for Holiday Inn
and Holiday Inn Express to better reflect the differentiated
brand propositions and drive brand consideration.
• As part of simplifying and clarifying our standards for all of
the brands, in 2013, we refreshed the Holiday Inn Express
Standards’ manual ready for launch in January 2014.
• Launched two General Manager training programmes to
assist with General Manager development to deliver on the
brand promise (see page 26).
• Continue to strengthen the quality and
consistency of the brand experience,
delivering guest journeys that are
differentiated by brand.
• Continue to invest in building long-term
brand preference in light of our guest
occasion segmentation and the 2014
IHG Trends Report (see page 20).
• Continue to empower our frontline teams
with the tools and training to consistently
deliver great guest experiences that build
brand preference.
• Continue to progress with our standards
refresh across the brands.
• Support the first openings of our new
hotels for the EVEN Hotels and
HUALUXE Hotels & Resorts brands.
Guest HeartBeat1
2012
2011
2013
675,982
658,348
686,873
2012
2011
2013
6.8%
5.7%
4.3%
At constant currency
2012
2011
2013
$21.2bn
$20.2bn
Actual $bn
$21.6bn
2012
2011
2013
69%
68%
69%
2012
2011
2013
78.6%
75.8%
81.7%
2012
2011
2013
5.2%
6.2%
Comparable hotels,
constant $
3.8%
2012
2013
82.36%
82.91%
2011
Not applicable
38 IHG Annual Report and Form 20-F 2013
Key performance indicators (KPIs)