Holiday Inn 2013 Annual Report Download - page 52

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Central results 12 months ended 31 December
2013
$m
2012
$m
2013 vs
2012 %
change
2011
$m
2012 vs
2011 %
change
Revenue 121 114 6.1 112 1.8
Gross central costs (276) (276) –(266) (3.8)
Net central costs (155) (162) 4.3 (154) (5.2)
Highlights for the year ended 31 December 2013
Central revenue, mainly comprising technology fee income,
increased by $7m (6.1%) to $121m, driven by increases to both
RevPAR and IHG System size over 2013. Gross central costs were
flat at $276m in 2013, reflecting continued tight cost control.
Highlights for the year ended 31 December 2012
Net central costs increased by $8m (5.2%) from $154m in 2011
to $162m in 2012. At constant currency, net central costs increased
by $10m (6.5%). The movement was driven by investment in
infrastructure and capabilities to support the growth of the
business. Central revenue mainly comprised technology fee income.
System Fund results 12 months ended 31 December
2013
$m
2012
$m
2013 vs
2012 %
change
2011
$m
2012 vs
2011 %
change
Assessment fees and
contributions received
from hotels
1,154 1,106 4.3 1,025 7.9
Proceeds from sale
ofIHG RewardsClub
points
153 144 6.3 128 12.5
Total 1,307 1,250 4.6 1,153 8.4
In addition to management or franchise fees, hotels within the IHG
System pay assessments and contributions which are collected
by IHG for specific use within the System Fund. The System Fund
also receives proceeds from the sale of IHG Rewards Club points.
The System Fund is managed for the benefit of hotels in the IHG
System with the objective of driving revenues for the hotels.
The System Fund is used to pay for marketing, the IHG Rewards
Club loyalty programme and the global reservation system.
The operation of the System Fund does not result in a profit or
loss for the Group and consequently the revenues and expenses of
the System Fund are not included in the Group Income Statement.
Highlights for the year ended 31 December 2013
In the year to 31 December 2013, System Fund income increased
by4.6% to $1,307m primarily as a result of growth in hotel room
revenues due to increases in RevPAR and IHG System size. The
increase in proceeds from the sale of IHG Rewards Club points
mainly reflects the continued strong performance of co-brand
credit cardschemes.
Highlights for the year ended 31 December 2012
In the year to 31 December 2012, System Fund income increased
by8.4% to $1,250m primarily as a result of growth in hotel room
revenues. The increase in proceeds from the sale of IHG Rewards
Club points mainly reflects the strong performance of co-brand
credit card schemes.
Performance continued
50 IHG Annual Report and Form 20-F 2013
Central System Fund