Holiday Inn 2014 Annual Report Download - page 4

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Group highlights*
+6%: $23bn†
Total gross revenue in IHG’s System (2013: $21.6bn†)
Group Revenue down 2% to $1,858m‡ (2013 : $1,903m§)
-3%: $651m‡
Total operating profit before exceptionalitems (2013: $668m§)
+10%: 77¢ (48.6p)
2014 Full-year dividend (2013: 70.0¢ (43.2p))
+6.1%
Revenue per available room** (2013: +3.8%)
710,295 rooms (4,840 hotels) operating in the IHG System
+7%
Fee revenue†† (2013: + 4%). Driven by 6.1% (2013: 3.8%) of RevPAR
growth and 3.4% (2013: 1.6%) net IHG System size growth
Our global and regional performance is set out on pages 34 to 51.
* Unless otherwise stated, all facts and figures as at 31 December 2014.
† This comprises total rooms revenue from franchised hotels and total hotel
revenue from managed, owned and leased hotels. It is not revenue attributed
to IHG.
‡ Includes two liquidated damages receipts in 2014: $7m, both in The Americas.
§ Includes three liquidated damages receipts in 2013; $31m in The Americas,
$9m in Europe and $6m in AMEA.
Subject to shareholder approval of 2014 final dividend.
** Total IHG System rooms revenue divided by the number of room nights
available.
†† Group revenue excluding owned and leased hotels, managed leases
and significant liquidated damages. Growth stated at constant currency.
Our business model
We predominantly franchise our brands to, and manage hotels
on behalf of, third-party owners; our focus is therefore on building
preferred brands and strong revenue delivery systems.
Franchised:
4,096 hotels (514,984 rooms)*
2013: 3,977 hotels (502,187 rooms)
Managed:
735 hotels (192,121 rooms)*
2013: 711 hotels (180,724 rooms)
Owned and leased:
9 hotels (3,190 rooms)*
2013: 9 hotels (3,962 rooms)
Our business model is detailed on pages 12 and 13.
Our portfolio of brands is detailed on pages 4 and 5.
Our revenue delivery systems are detailed on pages 17 and 22.
Hotels in the IHG System pay IHG:
• management and/or franchise fees; and
• assessments and contributions which are collected for specific
use within the System Fund (this does not result in profit or loss
for IHG).
Information on the System Fund is detailed on page 49.
Our strategy for high-quality growth
We focus on strengthening our portfolio of preferred and differentiated
brands, building scale in key markets, creating a long-lasting relationship
with our guests and delivering revenue to hotels through the lowest cost,
direct channels. Our proposition to owners is highly competitive and
drives superior returns.
We execute our asset-light strategy in the most attractive, high-growth
markets and industry segments. We take a disciplined approach to
capital allocation, investing for the future growth of our brands. This
enables us to drive sustainable growth in our profitability and deliver
superior shareholder returns over the long term.
Our strategy is detailed on pages 14 to 33.
2
IHG Annual Report and Form 20-F 2014
IHG at a glance