Goodwill and other intangible assets (Tables)

12 Months Ended

Dec. 31, 2019

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Summary of Goodwill and Other Intangible Assets

	Goodwill $m			Brands $m			Software $m			Management agreements $m			Other intangibles $m			Total $m
Cost
At 1 January 2018		377			193			745			71			13			1,399
Acquisition of businesses (note 11)		83			58			—			6			—			147
Additions		—			—			107			—			5			112
Capitalised interest		—			—			5			—			—			5
Disposals		—			—			(72	)		—			—			(72	)
Exchange and other adjustments		(5	)		(1	)		(4	)		—			—			(10	)
At 31 December 2018		455			250			781			77			18			1,581
Acquisition of businesses (note 11)		70			189			—			45			—			304
Additions		4			—			98			—			6			108
Capitalised interest		—			—			5			—			—			5
Disposals		—			—			(22	)		—			—			(22	)
Exchange and other adjustments		—			—			2			—			(1	)		1
At 31 December 2019		529			439			864			122			23			1,977
Amortisation and impairment
At 1 January 2018		(140	)		—			(281	)		(7	)		(4	)		(432	)
Provided		—			—			(36	)		(3	)		(1	)		(40	)
System Fund expense		—			—			(37	)		—			—			(37	)
Disposals		—			—			67			—			—			67
Exchange and other adjustments		(2	)		—			6			—			—			4
At 31 December 2018		(142	)		—			(281	)		(10	)		(5	)		(438	)
Provided		—			—			(35	)		(3	)		(2	)		(40	)
System Fund expense		—			—			(46	)		—			(1	)		(47	)
Impairment charges		(49	)		—			—			(50	)		—			(99	)
Disposals		—			—			22			—			—			22
Exchange and other adjustments		1			—			—			—			—			1
At 31 December 2019		(190	)		—			(340	)		(63	)		(8	)		(601	)
Net book value
At 31 December 2019		339			439			524			59			15			1,376
At 31 December 2018		313			250			500			67			13			1,143
At 1 January 2018		237			193			464			64			9			967

Summary of Carrying Value of Goodwill and Indefinite Life Brands were Allocated to CGUs for Year-end Impairment Testing

The carrying value of goodwill and indefinite life brands were allocated to CGUs for year-end impairment testing purposes as follows:

	2019					2018
	Goodwill $m			Brands $m		Goodwill $m		Brands $m
CGU
Americas Managed		95			289		69		203
Americas Franchised		37			—		37		—
EMEAA – Europe Managed		48			46		29		13
EMEAA – Europe Franchised		10			—		10		—
EMEAA – rest of region		140			88		113		23
Greater China		9			16		7		11
UK portfolio		49			—		—		—
Allocated to CGUs		388			439		265		250
Unallocateda		—			—		48		—
		388			439		313		250
Less: UK portfolio impairment		(49	)		—		—		—
Net book value at 31 December		339			439		313		250

a The UK portfolio goodwill remained unallocated at 31 December 2018 pending completion of the portfolio acquisition in early 2019.

Summary of Terminal Growth Rates and Discount Rates Used in Impairment Tests

The terminal growth rates and discount rates used, which are considered to be key assumptions, are as follows:

	2019				2018
	Terminal growth rate %		Pre-tax discount rate %		Terminal growth rate %		Pre-tax discount rate %
Americas Managed		1.9		9.6		2.0		10.5
Americas Franchised		1.9		8.6		2.0		9.6
EMEAA – Europe Managed		1.5		8.9		2.0		11.4
EMEAA – Europe Franchised		1.5		7.9		2.0		10.5
EMEAA – rest of region		3.3		11.6		3.5		13.4
Greater China		2.5		10.8		2.5		12.3

Summary of detailed information about intangible assets

At 31 December 2019, the net book value and remaining amortisation period of the most significant acquired management agreements were: 

	Net book value $m		Remaining amortisation period Years
Kimpton		10		20
Six Senses (note 11)		44		30