XML 368 R12.htm IDEA: XBRL DOCUMENT v3.20.4
Segmental information
 12 Months Ended
Dec. 31, 2020
Text block [abstract]  
Segmental information
2. Segmental information
The Group has four reportable segments reflecting its geographical regions and its Central functions:
 
• 
Americas;
 
• 
EMEAA;
 
• 
Greater China; and
 
• 
Central.
Central functions include technology, sales and marketing, finance, human resources and corporate services; Central revenue arises principally from technology fee income.
No operating segments have been aggregated to form these reportable segments.
Management monitors the operating results of these reportable segments for the purpose of making decisions about resource allocation and performance assessment. Each of the geographical regions is led by its own Chief Executive Officer who reports to the Group Chief Executive Officer.
The System Fund is not viewed as being part of the Group’s core operations as it is not managed to generate a profit or loss for IHG over the longer term. As such, its results are not regularly reviewed by the Chief Operating Decision Maker (‘CODM’) and it does not constitute an operating segment under IFRS 8. Similarly, reimbursements of costs are not reported to the CODM and so are not included within the reportable segments.
Segmental performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the Group Financial Statements, excluding System Fund and exceptional items. Group financing activities, fair value gains/(losses) on contingent purchase consideration and income taxes are managed on a Group basis and are not allocated to reportable segments.
Revenue
 
Year ended 31 December
  
2020
$m
   2019
$m		   2018
$m		 
Americas
   512    1,040    1,051 
  
 
 
   
 
 
   
 
 
 
EMEAA
   221    723    569 
  
 
 
   
 
 
   
 
 
 
Greater China
   77    135    143 
  
 
 
   
 
 
   
 
 
 
Central
   182    185    170 
  
 
 
   
 
 
   
 
 
 
Revenue from reportable segments
   992    2,083    1,933 
  
 
 
   
 
 
   
 
 
 
System Fund revenues
   765    1,373    1,233 
  
 
 
   
 
 
   
 
 
 
Reimbursement of costs
   637    1,171    1,171 
  
 
 
   
 
 
   
 
 
 
Total revenue
   2,394    4,627    4,337 
  
 
 
   
 
 
   
 
 
 
 
(Loss)/profit
 
Year ended 31 December
  
2020
$m
   2019
$m		   2018
$m		 
Americas
  
 
296
 
   700    673 
  
 
 
   
 
 
   
 
 
 
EMEAA
  
 
(50
) 
   217    206 
  
 
 
   
 
 
   
 
 
 
Greater China
  
 
35
 
   73    70 
  
 
 
   
 
 
   
 
 
 
Central
  
 
(62
) 
   (125)    (117) 
  
 
 
   
 
 
   
 
 
 
Operating profit from reportable segments
  
 
219
 
   865    832 
  
 
 
   
 
 
   
 
 
 
System Fund
  
 
(102
) 
   (49)    (146) 
  
 
 
   
 
 
   
 
 
 
Operating exceptional items (note 6)
  
 
(270
) 
   (186)    (104) 
  
 
 
   
 
 
   
 
 
 
Operating (loss)/profit
  
 
(153
) 
   630    582 
  
 
 
   
 
 
   
 
 
 
Net finance expenses
  
 
(140
) 
   (115)    (96) 
  
 
 
   
 
 
   
 
 
 
Fair value gains/(losses) on contingent purchase consideration
  
 
13
 
   27    (4) 
  
 
 
   
 
 
   
 
 
 
(Loss)/profit before tax
  
 
(280
) 
   542    482 
  
 
 
   
 
 
   
 
 
 
Tax
  
 
20
 
   (156)    (132) 
  
 
 
   
 
 
   
 
 
 
(Loss)/profit for the year
  
 
(260
) 
   386    350 
  
 
 
   
 
 
   
 
 
 
All items above relate to continuing operations.
Operating profit from reportable segments includes $4m business interruption insurance proceeds and $4m favourable litigation settlement, both in the Americas region, and $3m gain on disposal of hotel assets in EMEAA. In 2019, included $10m business interruption insurance proceeds relating to the Americas region. These amounts are included in ‘other operating income’ in the Group income statement.
Non-cash
items included within operating profit from reportable segments
 
Year ended 31 December 2020
  
Americas
$m
   
EMEAA
$m
  
Greater

China
$m
   
Central
$m
   
Group
$m
 
Depreciation and amortisation
a
  
 
41
 
  
 
21
 
 
 
6
 
  
 
42
 
  
 
110
 
  
 
 
   
 
 
  
 
 
   
 
 
   
 
 
 
Share-based payments cost
  
 
7
 
  
 
3
 
 
 
2
 
  
 
7
 
  
 
19
 
  
 
 
   
 
 
  
 
 
   
 
 
   
 
 
 
Share of losses of associates and joint ventures
  
 
14
 
  
 
—  
 
 
 
—  
 
  
 
—  
 
  
 
14
 
  
 
 
   
 
 
  
 
 
   
 
 
   
 
 
 
Year ended 31 December 2019
  Americas
$m		   EMEAA
$m		  Greater
China
$m		   Central
$m		   Group
$m		 
Depreciation and amortisation
a
   44    25   5    42    116 
  
 
 
   
 
 
  
 
 
   
 
 
   
 
 
 
Share-based payments cost
   9    4   2    13    28 
  
 
 
   
 
 
  
 
 
   
 
 
   
 
 
 
Share of losses/(gains) of associates and joint ventures
   9    (6)   —      —      3 
  
 
 
   
 
 
  
 
 
   
 
 
   
 
 
 
Year ended 31 December 2018
  Americas
$m		   EMEAA
$m		  Greater
China
$m		   Central
$m		   Group
$m		 
Depreciation and amortisation
a
   46    17   7    45    115 
  
 
 
   
 
 
  
 
 
   
 
 
   
 
 
 
Share-based payments cost
   8    4   3    12    27 
  
 
 
   
 
 
  
 
 
   
 
 
   
 
 
 
Share of losses/(gains) of associates and joint ventures
   6    (5)   —      —      1 
  
 
 
   
 
 
  
 
 
   
 
 
   
 
 
 
 
a
Included in the $110m (2019: $116m, 2018: $115m) of depreciation and amortisation is $29m (2019: $32m, 2018: $27m) relating to cost of sales in owned, leased and managed lease hotels, and $81m (2019: $84m, 2018: $88m) relating to other assets. A further $62m (2019: $54m, 2018: $49m) of depreciation and amortisation was recorded within System Fund expenses.
 
Capital expenditure
 
Year ended 31 December 2020
  
Americas
$m
  
EMEAA
$m
  
Greater

China
$m
  
Central
$m
  
Group
$m
 
Capital expenditure per management reporting
  
 
46
 
 
 
44
 
 
 
2
 
 
 
56
 
 
 
148
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Contract acquisition costs
  
 
(33
) 
 
 
(29
) 
 
 
(2
) 
 
 
—  
 
 
 
(64
) 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Timing differences and other adjustments
  
 
17
 
 
 
4
 
 
 
—  
 
 
 
(1
) 
 
 
20
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Additions per the Group Financial Statements
  
 
30
 
 
 
19
 
 
 
—  
 
 
 
55
 
 
 
104
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Comprising additions to:
      
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Goodwill and other intangible assets
  
 
1
 
 
 
1
 
 
 
—  
 
 
 
50
 
 
 
52
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Property, plant and equipment
  
 
12
 
 
 
13
 
 
 
—  
 
 
 
5
 
 
 
30
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Investment in associates and joint ventures
  
 
17
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
17
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Other financial assets
  
 
—  
 
 
 
5
 
 
 
—  
 
 
 
—  
 
 
 
5
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
  
 
30
 
 
 
19
 
 
 
—  
 
 
 
55
 
 
 
104
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
 
Year ended 31 December 2019
  Americas
$m		  EMEAA
$m		  Greater
China
$m		   Central
$m		  Group
$m		 
Capital expenditure per management reporting
   57   71   —      137   265 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Goodwill
   —     4   —      —     4 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Contract acquisition costs
   (27)   (35)   —      —     (62) 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Timing differences and other adjustments
   4   1   —      (4)   1 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Additions per the Group Financial Statements
   34   41   —      133   208 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Comprising additions to:
       
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Goodwill and other intangible assets
   —     4   —      104   108 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Property, plant and equipment
   19   29   —      29   77 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Investment in associates and joint ventures
   14   —     —      —     14 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Other financial assets
   1   8   —      —     9 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
   34   41   —      133   208 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
 
Geographical information
 
Year ended 31 December
  
2020
$m
   2019
$m		   2018
$m		 
Revenue
      
  
 
 
   
 
 
   
 
 
 
United Kingdom
  
 
77
 
   265    151 
  
 
 
   
 
 
   
 
 
 
United States
  
 
1,067
 
   1,957    1,950 
  
 
 
   
 
 
   
 
 
 
Rest of World
  
 
485
 
   1,032    1,003 
  
 
 
   
 
 
   
 
 
 
  
 
1,629
 
   3,254    3,104 
  
 
 
   
 
 
   
 
 
 
System Fund (note 33)
  
 
765
 
   1,373    1,233 
  
 
 
   
 
 
   
 
 
 
  
 
2,394
 
   4,627    4,337 
  
 
 
   
 
 
   
 
 
 
For the purposes of the above table, fee business, owned, leased and managed lease and reimbursable revenues are determined according to the location of the hotel and other revenue is attributed to the country of origin. In addition to the United Kingdom, revenue relating to an individual country is separately disclosed when it represents 10% or more of total revenue. System Fund revenues are not included in the geographical analysis as the Group does not monitor the Fund’s revenue by location of the hotel, or in the case of the loyalty programme, according to the location where members consume their rewards.
 
31 December
  
2020
$m
   2019
$m		 
Non-current
assets
    
  
 
 
   
 
 
 
United Kingdom
  
 
72
 
   184 
  
 
 
   
 
 
 
United States
  
 
1,487
 
   1,632 
  
 
 
   
 
 
 
Rest of World
  
 
700
 
   847 
  
 
 
   
 
 
 
  
 
2,259
 
   2,663 
  
 
 
   
 
 
 
For the purposes of the above table,
non-current
assets comprise goodwill and other intangible assets, property, plant and equipment,
right-of-use
assets, investments in associates and joint ventures,
non-current
contract costs and
non-current
contract assets. In addition to the United Kingdom,
non-current
assets relating to an individual country are separately disclosed when they represent 10% or more of total
non-current
assets, as defined above.