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Segmental information
 12 Months Ended
Dec. 31, 2021
Text Block [Abstract]  
Segmental information
2. Segmental information
The Group has four reportable segments reflecting its geographical regions (Americas, EMEAA, Greater China) and its Central functions.
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 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 ‘Operating Segments’. 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 or losses on contingent purchase consideration and income taxes are managed on a Group basis and are not allocated to reportable segments.
Revenue
 
          
    2021
            
    2020
            
    2019
  
Year ended 31 December
  
  
     
$m
     
  
     
$m
     
  
     
$m
  
Americas
           
 
774
 
            
 
512
 
            
 
1,040
 
EMEAA
           
 
303
 
            
 
221
 
            
 
723
 
Greater China
           
 
116
 
            
 
77
 
            
 
135
 
Central
           
 
197
 
            
 
182
 
            
 
185
 
Revenue from reportable segments
           
 
1,390
 
            
 
992
 
            
 
2,083
 
System Fund revenues
           
 
928
 
            
 
765
 
            
 
1,373
 
Reimbursement of costs
           
 
589
 
            
 
637
 
            
 
1,171
 
Total revenue
           
 
2,907
 
            
 
2,394
 
            
 
4,627
 
Profit/(loss)
 
          
    2021
           
    2020
           
    2019
  
Year ended 31 December
         
$m
           
$m
           
$m
  
Americas
           
 
559
 
           
 
296
 
           
 
700
 
EMEAA
           
 
5
 
           
 
(50
) 
           
 
217
 
Greater China
           
 
58
 
           
 
35
 
           
 
73
 
Central
  
 
  
 
   
 
(88
) 
           
 
(62
) 
           
 
(125
) 
Operating profit from reportable segments
           
 
534
 
           
 
219
 
           
 
865
 
System Fund
           
 
(11
) 
           
 
(102
) 
           
 
(49
) 
Operating exceptional items (note 6)
           
 
(29
) 
           
 
(270
) 
           
 
(186
) 
Operating profit/(loss)
           
 
494
 
           
 
(153
) 
           
 
630
 
Net financial expenses
           
 
(139
) 
           
 
(140
) 
           
 
(115
) 
Fair value gains on contingent purchase consideration
           
 
6
 
           
 
13
 
           
 
27
 
Profit/(loss) before tax
           
 
361
 
           
 
(280
) 
           
 
542
 
Tax
           
 
(96
) 
           
 
20
 
           
 
(156
) 
Profit/(loss) for the year
           
 
265
 
           
 
(260
) 
           
 
386
 
 
Operating profit from reportable segments includes the following, which are included in other operating income in the Group income statement:
 
•
  
In 2021, $5m government grant income relating to the EMEAA region;
 
•
  
In 2020, $4m business interruption insurance proceeds and $4m favourable litigation settlement, both in the Americas region, and $3m gain on disposal of hotel assets in
the
EMEAA
 region
; and
 
•
  
In 2019, $10m business interruption insurance proceeds relating to the Americas region.
Non-cash
items included within operating profit from reportable segments
 
Year ended 31 December 2021
        
Americas
$m
         
EMEAA
$m
         
Greater
China
$m
         
Central
$m
         
Group
$m
Depreciation and amortisation
a
       
30
   
 
   
18
   
 
   
6
   
 
   
44
   
 
   
98
Equity-settled share-based payments cost
        
8
   
 
   
4
   
 
   
3
   
 
   
11
   
 
   
26
Share of losses of associates
        
7
   
 
   
1
   
 
   
–
   
 
   
–
   
 
   
8
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
Equity-settled 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
Equity-settled share-based payments cost
        
9
   
 
   
4 
   
 
   
2
   
 
   
13
   
 
   
28
Share of losses/(gains) of associates and joint ventures
        
9
   
 
   
(6)
   
 
   
–
   
 
   
–
   
 
   
3
 
a
 
Included in the $98m (2020: $110m, 2019: $116m) of depreciation and amortisation is $20m (2020: $29m, 2019: $32m) relating to cost of sales in owned, leased and managed lease hotels, and $78m (2020: $81m, 2019: $84m) relating to other assets. A further $94m (2020: $62m, 2019: $54m) of depreciation and amortisation was recorded within System Fund expenses.
Capital expenditure
 
Year ended 31 December 2021
        
Americas 
$m 
         
EMEAA 
$m 
         
Greater 
China 
$m 
         
Central 
$m 
         
Group 
$m 
Capital expenditure per management reporting
        
35 
   
 
   
25 
   
 
   
1 
   
 
   
39 
   
 
   
100 
Contract acquisition costs
        
(32)
   
 
   
(10)
   
 
   
(1)
   
 
   
– 
   
 
   
(43)
Timing differences and other adjustments
        
3 
   
 
   
(5)
   
 
   
– 
   
 
   
4 
   
 
   
2 
Additions per the Group Financial Statements
        
6 
   
 
   
10 
   
 
   
– 
   
 
   
43 
   
 
   
59 
                     
Comprising additions to:
        
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
Goodwill and other intangible assets
        
1 
   
 
   
–
   
 
   
– 
   
 
   
32 
   
 
   
33 
Property, plant and equipment
        
1 
   
 
   
5 
   
 
   
– 
   
 
   
11 
   
 
   
17 
Investment in associates and joint ventures
        
4 
   
 
   
– 
   
 
   
– 
   
 
   
– 
   
 
   
4 
Other financial assets
        
– 
   
 
   
5 
   
 
   
– 
   
 
   
– 
   
 
   
5 
 
        
6 
   
 
   
10 
   
 
   
– 
   
 
   
43 
   
 
   
59 
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 
 
Geographical information
 
Year ended 31 December
       
2021
$m
         
2020
$m
         
2019
$m
  
Revenue
       
 
 
 
       
 
 
 
       
 
 
 
United Kingdom
       
 
142
 
       
 
77
 
       
 
265
 
United States
       
 
1,263
 
       
 
1,067
 
       
 
1,957
 
Rest of World
       
 
574
 
       
 
485
 
       
 
1,032
 
 
       
 
1,979
 
       
 
1,629
 
       
 
3,254
 
System Fund (note 33)
       
 
928
 
       
 
765
 
       
 
1,373
 
 
       
 
2,907
 
       
 
2,394
 
       
 
4,627
 
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
       
2021
$m
         
2020
$m
  
Non-current
assets
       
 
 
 
       
 
 
 
United Kingdom
       
 
64
 
       
 
72
 
United States
       
 
1,346
 
       
 
1,487
 
Rest of World
       
 
661
 
       
 
700
 
 
       
 
2,071
 
       
 
2,259
 
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.