Holiday Inn 2015 Annual Report Download - page 40

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Performance continued
IHG’s 2016 regional priorities
1. Continue to build IHG System size through driving growth in our
priority markets of the UK, Germany, and Russia and the CIS,
and across key cities, localising our brands as necessary.
2. Continue to improve guest experience and increase satisfaction
by focusing on quality and driving innovation to ensure our brands
are preferred.
3. Roll out our ‘Lowest Price Promise’ initiative into additional markets
in Europe post the successful pilot in the UK (see page 23).
Europe comparable RevPAR movement on previous year
12 months ended 31 December 2015
Franchised
All brands 5.3%
Managed
All brands 6.2%
Continue to grow in priority markets and
key cities, whilst driving brand preference,
focusing on quality and innovation in guest
experience, over the next three years.
Europe
Industry performance in 2015
The hotel industry in Europe is influenced by the larger markets in the
region, in particular the UK and Germany. In 2015, RevPAR increased
7.5% across the region, driven by a 2.8% increase in demand and a
5.4% growth in average daily rate. RevPAR growth in the UK was 4.5%,
driven by a 3.9% increase in average daily rate and a 2.3% increase
Progress against 2015 regional priorities
• Signed 48 hotels, of which 11 are in the UK, 14 are in Germany, and
8 are in Russia and the Commonwealth of Independent States (CIS).
It was our largest number of signings in Germany for the second
year running.
• Achieved an excellent year for InterContinental in Europe, with
five hotel signings and three openings, including the landmark
InterContinental London – The O2 and InterContinental
Bordeaux – Le Grand.
• Improved guest experience through the implementation of the new
Holiday Inn Express hotel design (see page 20).
• Launched the ‘Lowest Price Promise’ campaign, providing a clear
incentive for guests to become part of IHG Rewards Club and book
through our direct channels.
• 10 properties completed the roll-out of the next-generation design
in 2015 and an additional 83 hotels signed up during the year.
• Enhanced operations support with a dedicated Luxury and Boutique
Operations division, restructured the franchise support teams and
introduced a central operations support team.
IHG’s regional performance in 2015
IHG’s regional comparable RevPAR increased by 5.4%, driven by
average daily rate growth of 3.9%. The UK achieved strong growth
of 5.1%, ahead of the industry, led by average daily rate driven growth
in both London and the provinces. In Germany, RevPAR increased by
4.4%, and in Russia, RevPAR declined slightly by 1.6% – both behind
the market. Across the rest of Europe, our RevPAR increased by
mid-single digits, despite challenging trading conditions in Paris
in the last quarter of the year.
in demand. In Germany, RevPAR saw strong growth of 6.5%, driven
by a 4.3% growth in average daily rate and a 2.8% increase in demand.
Russia saw growth of 11.9% driven by a 6.0% increase in average
daily rate.
Source: Smith Travel Research for all of the above industry facts.
38 IHG Annual Report and Form 20-F 2015