Holiday Inn 2014 Annual Report Download - page 39

IHG’s regional performance in 2014
IHG’s comparable RevPAR increased 7.4% with 3.7% rate growth.
The region is predominantly represented by the US, where
comparable RevPAR increased 7.5%. Our upper midscale brands
in the US performed broadly in line with the segment, with RevPAR
for the Holiday Inn brand increasing 8.1% whilst that for the Holiday
Inn Express brand was at 7.2% due to higher absolute occupancies
than the industry. Our US upscale brands (Crowne Plaza and Hotel
Indigo) were also in line with the upscale segment with both brands
increasing RevPAR by 8.3%. We strengthened our 20-year
relationship with Grupo Presidente to expand the footprint and
diversity of our brands in key cities and resort destinations.
We continued to demonstrate our commitment to quality with
12,230 rooms leaving the IHG System. Strong demand for IHG
branded hotels continued with 38,108 rooms signed, with the
pipeline increasing by 10,177 rooms over 2013.
IHG’s 2015 regional priorities
1. Continue to increase IHG System size growth through
working with owners to accelerate openings, assisting
low-performing hotels to improve, and continuing to support
our high-performing hotels.
2. Continue to deliver against our multi-year plan for the
Crowne Plaza Hotels & Resorts brand by enhancing the
guest experience and driving brand differentiation through
innovations.
3. Continue to strengthen the Holiday Inn brand family position
through the delivery of innovations and consistency across
our hotels.
Americas comparable RevPAR
movement onprevious year 12 months ended
31 December 2014
Franchised Managed
Crowne Plaza 6.9% InterContinental 6.9%
Holiday Inn 7.9% Crowne Plaza 12.7%
Holiday Inn
Express 7.0% Holiday Inn 9.0%
All brands 7.2% Staybridge Suites 9.7%
Candlewood Suites 11.7%
All brands 8.9%
Owned and leased
All brands 11.2%
The Americas
Maximise the performance and growth of our portfolio
of preferred brands, focusing on our core upper
midscale and upscale segments, mostly through
franchise agreements, over the next three years.
Industry performance in 2014
In 2014, industry RevPAR in The Americas grew by 8.4% driven
by a 4.2% increase in demand and a 5.0% increase in average
daily rate. On the supply side, the number of rooms increased by
1.0%, the fourth year with growth of 1.0% or less. All segments
experienced strong growth, with the upper midscale segment,
where the Holiday Inn and Holiday Inn Express brands operate,
having a 7.5% growth in RevPAR.
Progress against 2014 regional priorities
In line with our 2014 regional priorities, we:
The US lodging industry also saw strong growth as the economy
continued to recover with GDP up 2.4%. In December, demand
reached record highs for the 46th consecutive month, while supply
growth of 0.9% remained well below the 1.9% per annum historic
average. Average daily rate growth of 4.6% combined with strong
demand drove US RevPAR up 8.3%. RevPAR in the US upper
midscale segment was up 8.2%, with the US upscale segment
up by 8.4%.
• continued to strengthen our preferred brands and provide
best-in-class revenue delivery to hotels – the Holiday Inn brand
rolled out revenue-driving food and beverage options to address
guest needs, whilst the Holiday Inn Express brand introduced an
innovative, cost effective design solution that resonated well
with owners;
• strengthened our Holiday Inn brand family with the opening
of 140 new hotels;
• continued to execute our multi-year programme to strengthen
the Crowne Plaza brand by focusing on brand differentiation,
performance initiatives and signing 10 hotels into the pipeline;
and
• opened our first two hotels for the EVEN Hotels brand, which
have consistently received excellent guest feedback.
Source: Smith Travel Research for all of the above industry facts.
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STRATEGIC REPORT GOVERNANCE
GROUP FINANCIAL STATEMENTS
PARENT COMPANY FINANCIAL STATEMENTS
ADDITIONAL INFORMATION