Holiday Inn 2015 Annual Report Download - page 4

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a Details of how non-GAAP measures are calculated are set out on page 155.
b
Underlying excludes the impact of owned-asset disposals, managed leases, significant liquidated damages,
Kimpton, and exceptional items translated at constant currency by applying prior-year exchange rates.
Our business modelGroup highlights
Group revenue ($)
1,803m (-3%)
2014: 1,858m
Full-year dividend (¢/p)
85/58 (+10%)
2014: 77/48.6
Fee revenuea, b
+8%
2014: +7%
Driven by:
4.4% (2014: 6.1%) RevPAR growth; and
4.8% (3.2% excluding the Kimpton acquisition,
2014: 3.4%) net System size growth
Our strategy for high-quality growth
We have more than 5,000 hotels and over 744,000 guest
rooms in our System in nearly 100 countries, and have
over 1,300 hotels in our development pipeline.
We are focused on strengthening our portfolio
of preferred brands, building and leveraging
scale, and delivering revenue to our hotels
through the lowest-cost, direct channels.
Our proposition to third-party hotel owners is
highly competitive and drives superior returns.
We execute an asset-light strategy with
a focus on the most attractive, high-growth
markets and industry segments. We take
a disciplined approach to capital allocation,
investing for the future growth of our brands.
This enables us to drive sustainable growth
in our profitability and deliver superior
shareholder returns over the long term.
Total gross revenue in IHG’s System ($)a
24bn (+5.3%)
2014: 23bn
Total operating profit before exceptional
items and tax ($)a
680m (+4.5%)
2014: 651m
Total underlying operating profit growth ($)a, b
67m (+11.5%)
2014: 57m
Revenue per available room (RevPAR) growtha
+4.4%
2014: +6.1%
We predominantly franchise our brands to,
and manage hotels on behalf of, third-party
hotel owners; our focus is therefore on
building preferred brands and strong
revenue delivery systems.
Franchised hotels (rooms)
4,219 (530,748)
2014: 4,096 (514,984)
Managed hotels (rooms)
806 (211,403)
2014: 735 (192,121)
Owned and leased hotels (rooms)
7 (2,217)
2014: 9 (3,190)
The Americas
see pages 35 to 37
Europe
see pages 38 to 40
2IHG Annual Report and Form 20-F 2015