Holiday Inn 2014 Annual Report Download - page 32

We measure our performance through a set of carefully selected KPIs
which monitor our success in achieving our strategy and the progress
of our Group to deliver high-quality growth. The KPIs are organised
around the framework of our strategy – our Winning Model and
Targeted Portfolio, underpinned by Disciplined Execution and Doing
Business Responsibly.
Winning Model and Targeted Portfolio
KPIs 2014 progress 2015 priorities
Net rooms supply1,2
Net total number of IHG
rooms in the IHG System.
In line with our 2014 priorities, in relation to:
• growth, particularly in priority markets (as at 31 December 2014):
- IHG System size – 710,295 rooms (4,840 hotels), reflecting 3.4%
net IHG System size growth in 2014, the strongest since 2009;
- 610,274 rooms (4,351 hotels) of the IHG System are in our priority
markets – 85%;
- IHG’s pipeline – 193,772 rooms (1,221 hotels), with 2014 having
the highest signings in six years; and
- 173,252 rooms (1,117 hotels) of our pipeline are in our priority markets
– 89%.
• supporting the growth of the HUALUXE Hotels and Resorts and EVEN
Hotels brands, we:
- opened our first 2 EVEN hotels in 2014 (see page 20) and, in February
2015, the first HUALUXE hotel (see page 19); and
- had 3 EVEN hotels (one of which is owned) and 24 HUALUXE hotels in
the pipeline (as at 31 December 2014).
Continue to accelerate
growth strategies in priority
markets, and key locations
in agreed scale markets,
and continue to leverage
scale.
Continue to support the
growth of the EVEN and
HUALUXE brands.
Drive growth of the Kimpton
brand in the US and create
the foundation to establish
the brand globally.
Growth in fee revenues1,2
Group revenue excluding
revenue from owned and
leased hotels, managed
leases and significant
liquidated damages.
Total gross revenue from
hotels in IHG’s System
Total rooms revenue from
franchised hotels and total
hotel revenue from managed,
owned and leased hotels. It is
not revenue attributable to
IHG, as it is derived from
hotels owned by third parties.
It is an indicator of the scale
and reach of IHG’s brands.
In line with our 2014 priorities, in relation to:
• continuing to drive loyalty to our portfolio of brands and driving awareness
of IHG Rewards Club, we:
- enrolled 7m new IHG Rewards Club members (up 9% on 2013), taking
the total to 84m members;
- continued to win awards including the ‘Best Hotel Rewards Programme in
the World’ by Global Traveler magazine (see www.ihgplc.com/ourbrands);
- extended free internet access for all IHG Rewards Club members
across our hotels globally;
- launched the first global promotion by IHG Rewards Club, ‘Big Win’, aimed
at encouraging members to stay at more hotels within IHG’s portfolio; and
- enhanced our ancillary programmes such as Business Rewards,
Dining Rewards and co-branded credit cards to extend our relationship
with guests.
• continuing with investment in technology systems and platforms:
- we launched Mobile Check-in and Check-out at more than 500 hotels; and
- see page 22 for further initiatives undertaken in 2014.
• continuing to strengthen our revenue delivery, we delivered 71% system
contribution to revenue, including $4bn of digital revenues with 50%
growth in mobile bookings to over $900m.
• continuing to drive the adoption and impact of our performance tools,
systems and processes amongst our owners – there was an increase of
over 20% in the adoption of Revenue Management for Hire.
Continue to drive
adoption and impact
of our performance tools,
systems and processes
amongst our owners.
Continue to enhance
the functionality and
performance of our direct
channels to make these
the preferred way to book.
Drive preference for IHG
Rewards Club and leverage
this to build deeper, lifetime
relationships with our
guests.
Continue with investment
in technology systems
and platforms and embed
leading-edge digital
technology and enhanced
capabilities.
System contribution to
revenue1,2
The per cent of room revenue
delivered through IHG’s
direct and indirect systems
and channels.
2013
2012
2014
686,873
675,982
710,295
2013
2012
2014
4.3%
6.8%
6.7%
At constant currency
2013
2012
2014
$21.6bn
$21.2bn
Actual $bn
$22.8bn
2013
2012
2014
69%
69%
71%
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IHG Annual Report and Form 20-F 2014
Key performance indicators (KPIs)