Holiday Inn 2013 Annual Report Download - page 9

Our strong brand portfolio and loyalty
programme are underpinned by our
channel management strategy which is
aimed at delivering the highest quality
revenues to IHG hotels at the lowest
possible cost. Only the largest companies
who understand these trends, and are able
to deliver consistent, locally relevant and
differentiated guest experiences, will win
in this environment.
IHG is focused on delivering guest needs
across the entirety of their journey, which
we break down into five distinct steps:
Dream, Plan, Book, Travel and Share.
Our strategy is led by our multi-lingual
websites and mobile apps, call centres,
global sales force, strong brand portfolio
and 77.4 million member loyalty
programme. These provide compelling
experiences that allow guests to use the
most appropriate channel for their needs.
In 2013, IHG’s direct and indirect systems
and channels delivered 69 per cent of
total room revenues to our hotels.
Targeted Portfolio
IHG has hotels in nearly 100 countries and
territories around the world. Our growth
strategy is focused primarily on the largest
and/or fastest growing markets in which
IHG has a strong existing brand presence,
where our scale and revenue delivery
systems confer the greatest benefits, and
where the growth opportunities available
are aligned to our asset-light business
model. With a five per cent share of
global hotel industry rooms supply and
a 12 per cent share of the active industry
hotel pipeline, we are well-positioned to
continue to take share into the future.
During 2013, we opened 237 hotels and
signed a further 444 hotels into our
pipeline, the highest number for five
years, reinforcing our already strong
brand distribution platform and with it the
promise of further high-quality growth.
Our commitment to an asset-light model
continues to be core to our strategy and is
key to the resilience of our income stream.
During 2013, we completed the disposal
of the InterContinental London Park Lane
and agreed to dispose of an 80 per cent
interest in InterContinental New York
Barclay, both with long-term, valuable
management contracts. This has driven
up IHG’s return on capital employed,
reduced the capital intensity of the
business whilst forming a relationship
with a great new owner.
In February 2014, we signed an agreement
to sell the InterContinental Mark Hopkins
San Francisco.
Disciplined Execution
Successful delivery of our strategy for
high-quality growth requires Disciplined
Execution. IHG is focused on leveraging our
scale to drive efficiencies whilst investing
behind the growth of the business. Talent is
key to our success and our investment in
strengthening our employer brand has
been recognised externally through a
number of accolades, including being
awarded 3rd place in The Sunday Times
25 Best Big Companies To Work For in
the UK.
Being a responsible business is part of
IHG’s DNA and it underpins our business
practices, enabling us to make a positive
contribution to the communities in which
we operate, as well as building trust and
preference for our brands. Having already
met our previous Corporate Responsibility
targets in 2012, in September 2013, we
announced new ones for the five years
from 2013 to 2017. These revolve around
three core programmes; IHG Green
Engage, IHGAcademy and IHG Shelter in a
Storm Programme. These are all tightly
tied to our Winning Model, which ensures
they are sustainable with full support from
our owners.
Looking forward, IHG’s strategy for
high-quality growth gives us the confidence
that we will outperform an industry which
is set for good growth for many years to
come, and as such we will continue to drive
superior returns for ourshareholders.
Richard Solomons
Chief Executive Officer
InterContinental New York Barclay, New York, US
InterContinental London Park Lane, London, UK
InterContinental Mark Hopkins San Francisco, California, US
Overview 7
OVERVIEW STRATEGIC REPORT GOVERNANCE
GROUP FINANCIAL STATEMENTS
PARENT COMPANY FINANCIAL STATEMENTS ADDITIONAL INFORMATION