Holiday Inn 2014 Annual Report Download - page 42

IHG’s 2015 regional priorities
1. Continue to build IHG System size through driving growth
in our priority markets of UK, Russia and the CIS, and Germany,
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. Drive operational excellence and hotel outperformance by
delivering a focused and targeted hotel support model, and
best-in-class operational tools and training.
Europe comparable RevPAR
movement on previous year 12 months ended
31 December 2014
Franchised
All brands 5.3%
Managed
All brands 5.4%
Owned and leased
InterContinental (4.7)%
Continue to grow in priority markets and across
key cities, and improve underlying margin through
operational excellence over the next three years.
Europe
Industry performance in 2014
Europe is a diverse region and industry figures are driven by
the larger markets, in particular the UK and Germany. RevPAR
growth was 6.0%, average daily rate grew by 3.5% and demand
grew by 3.5%.
RevPAR growth in the UK reached 7.9% due to a 10.5% increase in
the UK provinces, which was driven by a 6.5% increase in average
daily rate and 4.9% increase in demand. However, RevPAR growth
in other European countries was more moderate, with RevPAR
Progress against 2014 regional priorities
In line with our 2014 regional priorities, we:
IHG’s regional performance in 2014
IHG’s comparable RevPAR increased by 5.1% with the UK
particularly strong at 8.9%. Germany was also strong at 4.1%.
IHG’s hotels in Russia and the Commonwealth of Independent
States (CIS) were, however, impacted by the geopolitical instability
in the region but our hotels outperformed the industry with a
RevPAR decline of 4.0%.
increasing in Germany by 3.8%. In contrast, the RevPAR in Russia
declined steeply by 14.8%, as growth was depressed by ongoing
conflict between Russia and the Ukraine and the resulting
geopolitical instability throughout this area. Although there was
a 5.1% decline in demand, supply continued to grow by 8.9%.
• grew in our priority markets and key gateway cities with the
signing of 48 hotels of which 17 were in the UK, 12 in Germany,
and seven in Russia and the CIS;
• continued to expand the Hotel Indigo brand across the region in
key gateway cities, opening four new properties in Paris, Madrid,
Rome and St Petersburg, and as at 31 December 2014, had 17
open hotels and a further 12 in the pipeline for the brand;
• launched the Holiday Inn Express brand in Russia and the
CIS (having localised the brand) with the opening of Holiday Inn
Express Voronezh - Kirova, a debut for the brand in Russia;
• continued to improve guest experience and increase satisfaction
at our hotels in the region by creating a culture focused on
quality, accelerating the rollout of innovation and building a suite
of tools that enables hotels to deliver operational excellence
(see progress against KPIs set out on pages 30 to 33); and
• embedded our revenue and sales tools at our hotels, driving
our commercial delivery and people platforms (see progress
against KPIs set out on pages 30 to 33), helping us to deliver
RevPAR outperformance in our three priority markets.
Source: Smith Travel Research for all of the above industry facts.
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IHG Annual Report and Form 20-F 2014
Performance continued