Holiday Inn 2015 Annual Report Download - page 43

IHG’s 2016 regional priorities
1. Further accelerate System size growth across our brand portfolio
in established, and emerging, key gateway cities and resort
destinations through new constructions and hotel conversions.
2. Deliver above-market RevPAR growth through enhanced levels
of guest satisfaction and loyalty contribution, particularly for the
InterContinental and Holiday Inn brands.
3. Continue to invest in our people across the region to enable their
ability to deliver excellent guest service, innovative marketing
and promotional partnerships and superior financial performance
for our owners.
4. Build upon the momentum of our ‘winning culture’ (see page 18),
which is focused on driving performance and empowering the
business to respond with speed and agility in a diverse and
dynamic region.
Asia, Middle East and Africa (AMEA)
Execute our strategic plans to strengthen
our brands and increase our revenue
share through enhanced guest satisfaction
and greater loyalty contribution, over
the next three years.
AMEA comparable RevPAR movement onprevious year
12 months ended 31 December 2015
Franchised
All brands (0.5)%
Managed
All brands 5.4%
Industry performance in 2015
RevPAR growth in AMEA was 3.6%, driven primarily by a 3.2% gain
in average daily rate. In line with improving GDP growth, Japan saw
strong RevPAR growth of 14.8% due to both average daily rate, which
increased by 13.1%, and demand, which increased by 2.8%. In contrast,
Australia saw RevPAR increase 3.2%, composed of a 1.9% growth in
average daily rate and a 3.0% increase in demand. Thailand saw
RevPAR increase by a strong 13.1%, driven by 15.1% demand growth.
Progress against 2015 regional priorities
• Strengthened our position in the region’s priority markets
and gateway cities with the opening of 22 hotels, including
new InterContinental hotels in the UAE, Indonesia and India.
• Increased our hotel pipeline by over 3,800 rooms with 35 new
signings, eight of which were converted and rebranded within
the year.
• Continued to expand our brand portfolio in AMEA with the
successful launch of Hotel Indigo Bangkok Wireless Road which
opened in the first quarter of 2015, with additional Hotel Indigo
properties in Dubai, Bali and Phuket entering the pipeline.
• Delivered RevPAR growth of 4.5%, supported by targeted marketing
investments in the Middle East and South East Asia, despite
challenging economic and security conditions in parts of the region.
IHG’s regional performance in 2015
Across this large region, IHG is widely represented both
geographically and by brand, and comparisons across the industry
are hard to make. Overall, IHG regional comparable RevPAR increased
4.5%, driven through both occupancy and average daily rate growth.
Performance was led by strong positive trading in the mature market
of Japan, where RevPAR increased by 14.6%, marginally below the
market. Australia increased ahead of the industry at 4.5%; however
the Middle East increased by 0.2%, impacted by declining oil prices.
Our RevPAR growth in India and Indonesia was significantly ahead of
the industry at 6.4% and 1.3%, respectively.
Growth was more modest in India and Saudi Arabia, where RevPAR
increased by 5.0% and 0.9% respectively. RevPAR in the United Arab
Emirates (UAE) declined by 6.7%, driven by a 6.2% decrease in average
daily rate. In Indonesia, RevPAR declined by 6.1% due to a 5.3ppt
decrease in occupancy.
Source: Smith Travel Research for all of the above industry facts.
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IHG Annual Report and Form 20-F 2015
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