Holiday Inn 2015 Annual Report Download - page 44

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Performance continued
AMEA results
12 months ended 31 December
2015
$m
2014
$m
2015 vs
2014 %
change
2013
$m
2014 vs
2013 %
change
Revenue
Franchised 16 16 –16 –
Managed 189 187 1.1 170 10.0
Owned and leased 36 39 (7.7) 44 (11.4)
Total 241 242 (0.4) 230 5.2
Percentage of Group
revenue
13.3 13.0 0.3 12.1 0.9
Operating profit before
exceptional items
Franchised 12 12 –12 –
Managed 90 88 2.3 92 (4.3)
Owned and leased 33–4(25.0)
105 103 1.9 108 (4.6)
Regional overheads (19) (19) –(22)13.6
Total 86 84 2.4 86 (2.3)
Percentage of Group
operating profit before
central overheads and
exceptional items
10.4 10.5 (0.1) 10.4 0.1
Highlights for the year ended 31December 2015
Comprising 267 hotels (72,573 rooms) at 31 December 2015, AMEA
represented 10% of the Group’s room count and contributed 10% of
the Group’s operating profit before central overheads and exceptional
operating items during the year. 83% of rooms in AMEA are operated
under the managed business model.
Revenue decreased by $1m (0.4%) to $241m, whilst operating profit
before exceptional items increased by $2m (2.4%) to $86m, both
adversely impacted by foreign exchange translation. On an underlyinga
basis, revenue and operating profit increased by $13m (6.5%) and
$7m (8.7%) respectively.
Comparable RevPAR increased 4.5%, driven by growth in both rate
and occupancy. Performance was led by strong positive trading in
the mature markets of Japan, which grew by 14.6%, and Australia,
which increased by 4.5%. South East Asia exhibited growth of 5.7%,
however the Middle East increased by 0.2%, impacted by declining
oil prices.
Franchised revenue and operating profit remained flat at $16m
and $12m respectively. On a constant currency basis, revenue and
operating profit increased by $1m (6.3%) and $1m (8.3%) respectively.
Managed revenue increased by $2m (1.1%) to $189m and operating
profit increased by $2m (2.3%) to $90m. Comparable RevPAR
increased by 5.4%, with the majority of rooms opening in the last
quarter of 2015. Revenue and operating profit included $46m
(2014: $41m) and $5m (2014: $4m) respectively from one managed-
lease property. Excluding results from this hotel and on a constant
currency basis, revenue increased by $9m (6.2%), whilst operating
profit increased by $6m (7.1%).
In the owned and leased estate, revenue decreased by $3m (7.7%)
to $36m and operating profit remained flat at $3m. On a constant
currency basis, revenue increased by $3m (7.7%) and operating profit
increased by $1m (33.3%).
Highlights for the year ended 31December 2014
Revenue increased by $12m (5.2%) to $242m whilst operating profit
before exceptional items decreased by $2m (2.3%) to $84m. On an
underlyinga basis, revenue increased by $5m (2.5%) and operating
profit increased by $4m (5.1%). The results included a $6m benefit
from liquidated damages received in 2013 (2014: $nil). AMEA is
a geographically diverse region and performance was impacted
by political and economic factors, affecting different countries.
Comparable RevPAR increased 3.8% driven by 2.4% rate growth.
Performance was led by the Middle East, up 5.6%, driven by a solid
performance in Saudi Arabia and a recovery in Egypt. This was
supported by positive trading in the mature markets of Japan, which
grew by 6.7%, and Australia, which grew by 3.9%. Elsewhere, both
India and South East Asia exhibited steady growth, with the exception
of Thailand, which suffered from political instability in the first half
of the year.
Franchised revenue and operating profit remained flat at $16m
and $12m respectively.
Managed revenue increased by $17m (10.0%) to $187m, whilst operating
profit decreased by $4m (4.3%) to $88m. Revenue and operating profit
included $41m (2013: $21m) and $4m (2013: $1m) respectively from one
managed-lease property. Excluding results from this hotel, as well as
the benefit of $6m liquidated damages in 2013 (2014: $nil), revenue
increased by $7m (4.9%) whilst operating profit increased by $2m
(2.4%) on a constant currency basis. Comparable RevPAR increased
by 4.4%, with room count increasing by 5.9%.
In the owned and leased estate, revenue and operating profit decreased
by $5m (11.4%) to $39m and by $1m (25.0%) to $3m respectively, due to
a 6.3% decrease in RevPAR.
Asia, Middle East and Africa (AMEA) continued
42 IHG Annual Report and Form 20-F 2015