Holiday Inn 2004 Annual Report Download - page 9

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Europe, Middle East and Africa (EMEA)
Turnover for EMEA for 2004 was £829m, £22m higher than
for the 12 months ended 31 December 2003. Owned and leased
turnover grew by £13m despite the loss of £42m turnover
compared to 2003 as a result of hotels being sold.
Trading conditions across the region varied; UK hotels
experienced strong growth in RevPAR throughout the year and
the performance in the Middle East and Africa business was
strong. Continental Europe was more mixed with Paris in particular
slower to recover from the adverse conditions in 2003.
In the owned and leased estate, RevPAR in the United Kingdom
Holiday Inn estate continued to grow over previous periods. For
the year Holiday Inn UK RevPAR was up by 8.0% over 2003.
London hotels in particular experienced strong growth in RevPAR
over 2003 (up by 16.0%) as they were slower to recover than the
UK regional hotels which had seen some recovery from mid-2003.
Holiday Inn UK regional hotel RevPAR was up by 4.7%.
InterContinental owned and leased RevPAR on a comparable
basis was 1.0% up on 2003. InterContinental owned and leased
turnover and operating profit was boosted by a full year’s trading
from the InterContinental Le Grand Paris, which was closed for
refurbishment for part of 2003. Owned and leased operating profit
finished £20m ahead of 2003 with the InterContinental Le Grand
Paris contributing £12m of the increase.
Managed operating profit in EMEA rose by £5m to £24m. This
was driven by hotels in the Middle East where over half of EMEA’s
managed hotels are located. Overall, Middle East managed
RevPAR increased by 8.8% for InterContinental, 8.8% for Crowne
Plaza and 6.4% for Holiday Inn. Liquidated damages of
approximately £4m were received from the early termination of
the management contract for the InterContinental Barcelona.
Overall EMEA franchise RevPAR was 6.1% up on 2003 and there
was a net increase in system size of 13 hotels. As a result, EMEA
franchise operating profit was £3m ahead of 2003 at £21m.
Total EMEA regional overheads increased by £1m, reflecting
the benefits of the reorganisation, partly offset by bonus awards
for 2004.
During the year, a number of UK hotels were sold, including
the Crowne Plaza Manchester Midland, Holiday Inn Teeside,
Holiday Inn Sheffield West, Holiday Inn Crawley and the Holiday
Inn Preston.
InterContinental Hotels Group 2004 7
12 months ended
31 Dec 31 Dec
2004 2003 Change
EMEA Results £m £m %
Turnover:
Owned and leased 759 746 1.7
Managed 43 38 13.2
Franchised 27 23 17.4
829 807 2.7
Operating profit before exceptional items:
Owned and leased 97 77 26.0
Managed 24 19 26.3
Franchised 21 18 16.7
142 114 24.6
Regional overheads (23) (22) 4.5
Total £m 119 92 29.3
Dollar equivalent $m 216 149 45.0
FIGURE 4
Hotels Rooms
EMEA system size Change Change
at 31 December 2004 2004 over 2003 2004 over 2003
Analysed by brand:
InterContinental 62 (1) 20,292 (550)
Crowne Plaza 63 115,747 58
Holiday Inn 329 (11) 53,568 (1,429)
Holiday Inn Express 153 21 15,921 2,651
Other brands 1(2) 222 (788)
Total 608 8105,750 (58)
Analysed by ownership type:
Owned and leased 126 (3) 25,570 (748)
Managed 99 (2) 24,921 (562)
Franchised 383 13 55,259 1,252
Total 608 8105,750 (58)
Analysed by geography:
United Kingdom 209 528,865 (188)
Rest of Europe 283 348,526 (269)
Middle East and Africa 116 –28,359 399
Total 608 8105,750 (58)
FIGURE 5
EMEA RevPAR movement 12 months ended
on previous year (comparable) 31 Dec 2004
InterContinental Owned and leased 1.0%
Crowne Plaza Owned and leased 4.9%
Holiday Inn UK London 16.0%
Holiday Inn UK Region 4.7%