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Property, plant and equipment
 12 Months Ended
Dec. 31, 2020
Text block [abstract]  
Property, plant and equipment
14. Property, plant and equipment
 
   
Land and
buildings
$m
   
Fixtures,
fittings
and
equipment
$m
   
Total
$m
 
Cost
      
  
 
 
   
 
 
   
 
 
 
At 1 January 2019
   199    314    513 
  
 
 
   
 
 
   
 
 
 
Acquisition of businesses
   1    1    2 
  
 
 
   
 
 
   
 
 
 
Additions
   9    68    77 
  
 
 
   
 
 
   
 
 
 
Transfers to assets classified as held for sale (note 12)
   —      (12)    (12) 
  
 
 
   
 
 
   
 
 
 
Fully depreciated assets written off
   (2)    (60)    (62) 
  
 
 
   
 
 
   
 
 
 
Disposals
   —      (6)    (6) 
  
 
 
   
 
 
   
 
 
 
Exchange and other adjustments
   —      2    2 
  
 
 
   
 
 
   
 
 
 
At 31 December 2019
   207    307    514 
  
 
 
   
 
 
   
 
 
 
Additions
  
 
2
 
  
 
28
 
  
 
30
 
  
 
 
   
 
 
   
 
 
 
Fully depreciated assets written off
  
 
—  
 
  
 
(17
) 
  
 
(17
) 
  
 
 
   
 
 
   
 
 
 
Disposals
  
 
(1
) 
  
 
(2
) 
  
 
(3
) 
  
 
 
   
 
 
   
 
 
 
Exchange and other adjustments
  
 
—  
 
  
 
6
 
  
 
6
 
  
 
 
   
 
 
   
 
 
 
At 31 December 2020
  
 
208
 
  
 
322
 
  
 
530
 
  
 
 
   
 
 
   
 
 
 
Depreciation and impairment
      
  
 
 
   
 
 
   
 
 
 
At 1 January 2019
   (72)    (168)    (240) 
  
 
 
   
 
 
   
 
 
 
Provided
   (3)    (35)    (38) 
  
 
 
   
 
 
   
 
 
 
System Fund expense
   —      (2)    (2) 
  
 
 
   
 
 
   
 
 
 
Transfers to assets classified as held for sale (note 12)
   —      9    9 
  
 
 
   
 
 
   
 
 
 
Fully depreciated assets written off
   2    60    62 
  
 
 
   
 
 
   
 
 
 
Disposals
   —      4    4 
  
 
 
   
 
 
   
 
 
 
At 31 December 2019
   (73)    (132)    (205) 
  
 
 
   
 
 
   
 
 
 
Provided
  
 
(4
) 
  
 
(33
) 
  
 
(37
) 
  
 
 
   
 
 
   
 
 
 
System Fund expense
  
 
—  
 
  
 
(5
) 
  
 
(5
) 
  
 
 
   
 
 
   
 
 
 
Impairment charge
  
 
(39
) 
  
 
(51
) 
  
 
(90
) 
  
 
 
   
 
 
   
 
 
 
System Fund impairment charge
  
 
—  
 
  
 
(5
) 
  
 
(5
) 
  
 
 
   
 
 
   
 
 
 
Fully depreciated assets written off
  
 
—  
 
  
 
17
 
  
 
17
 
  
 
 
   
 
 
   
 
 
 
Disposals
  
 
1
 
  
 
1
 
  
 
2
 
  
 
 
   
 
 
   
 
 
 
Exchange and other adjustments
  
 
—  
 
  
 
(6
) 
  
 
(6
) 
  
 
 
   
 
 
   
 
 
 
At 31 December 2020
  
 
(115
) 
  
 
(214
) 
  
 
(329
) 
  
 
 
   
 
 
   
 
 
 
Net book value
      
  
 
 
   
 
 
   
 
 
 
At 31 December 2020
  
 
93
 
  
 
108
 
  
 
201
 
  
 
 
   
 
 
   
 
 
 
At 31 December 2019
   134    175    309 
  
 
 
   
 
 
   
 
 
 
At 1 January 2019
   127    146    273 
  
 
 
   
 
 
   
 
 
 
The Group’s property, plant and equipment mainly comprises buildings and leasehold improvements on 23 hotels (2019: 26 hotels), but also offices and computer hardware, throughout the world.
Impairment testing of property, plant and equipment
Total impairment charges of $90m were recognised in relation to property, plant and equipment in the year, in addition $5m was recognised in the System Fund.
For impairment testing of hotel properties, each hotel is deemed to be a CGU.
Covid-19
was considered as a trigger for impairment testing for all hotel assets and impairment charges of $50m were recognised in relation to the UK portfolio and $35m relating to three premium-branded hotels in North America, both based on value in use calculations. The key assumptions and sensitivities relating to these assets are detailed on page 135.
Impairment charges of $3m were also recognised in relation to three development land sites held by the Group in the US which were measured at fair value. The sites were appraised by a professional external valuer using comparable sales data. Within the fair value hierarchy, this is categorised as a Level 3 measurement.
Impairment charges of $7m were recognised in relation to property, plant and equipment in the US corporate headquarters. The key assumptions and sensitivities are detailed on page 136. $5m of this impairment charge was borne by the System Fund in line with existing principles for cost allocation relating to this facility.
 
Net book value by operating segment
The table below analyses the net book value of the Group’s property, plant and equipment by operating segment at 31 December 2020:
 
   
Americas
$m
   
EMEAA
$m
   
Greater
China
$m
   
Central
$m
   
Total
$m
 
Land and buildings
  
 
81
 
  
 
1
 
  
 
—  
 
  
 
11
 
  
 
93
 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Fixtures, fittings and equipment
  
 
46
 
  
 
10
 
  
 
—  
 
  
 
52
 
  
 
108
 
  
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
  
 
127
 
  
 
11
 
  
 
—  
 
  
 
63
 
  
 
201