Segmental information

12 Months Ended

Dec. 31, 2022

Text Block [Abstract]

Segmental information

2. Segmental information

Revenue

Year ended 31 December	2022  $m		2021  $m		2020  $m
Americas		1,005		774		512
EMEAA		552		303		221
Greater China		87		116		77
Central		199		197		182
Revenue from reportable segments		1,843		1,390		992
System Fund revenues		1,217		928		765
Reimbursement of costs		832		589		637
Total revenue		3,892		2,907		2,394

Profit/(loss)

Year ended 31 December	2022 $m			2021 $m			2020 $m
Americas		761			559			296
EMEAA		152			5			(50	)
Greater China		23			58			35
Central		(108	)		(88	)		(62	)
Operating profit from reportable segments		828			534			219
System Fund		(105	)		(11	)		(102	)
Operating exceptional items (note 6)		(95	)		(29	)		(270	)
Operating profit/(loss)		628			494			(153	)
Net financial expenses		(96	)		(139	)		(140	)
Fair value gains on contingent purchase consideration		8			6			13
Profit/(loss) before tax		540			361			(280	)
Tax		(164	)		(96	)		20
Profit/(loss) for the year		376			265			(260	)

Operating profit from reportable segments includes the following, which are included within other operating income in the Group income statement:

• In 2022, $6m relating to business insurance claims principally in the Americas region (see note 30) and $16m government support income relating to the EMEAA region. The net impact of government support income on operating profit from reportable segments is $6m after deducting additional variable rent of $10m which became payable as a direct result of the support received;

• In 2021, $5m government support income relating to the EMEAA region; and

• 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.

In support of the Iberostar agreement signed in 2022, $5m of costs were incurred within Central functions. The costs are presented within administrative expenses in the Group income statement.

Non-cash items included within operating profit from reportable segments

Year ended 31 December 2022	Americas $m			EMEAA $m		Greater China $m		Central $m		Group $m
Depreciation and amortisationa		23			13		4		28		68
Equity-settled share-based payments cost		8			4		2		14		28
Share of profit of associates (excluding exceptional items)		(1	)		–		–		–		(1	)

Year ended 31 December 2021	Americas $m		EMEAA $m		Greater China $m		Central $m		Group $m
Depreciation and amortisationa		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 amortisationa		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

a  Includes $15m (2021: $20m, 2020: $29m) relating to cost of sales in owned, leased and managed lease hotels, and $53m (2021: $78m, 2020: $81m) relating to other assets. A further $86m (2021: $94m, 2020: $62m) was recorded within System Fund expenses.

Capital expenditure

Year ended 31 December 2022	Americas $m			EMEAA $m			Greater China $m			Central $m		Group $m
Capital expenditure per management reporting		71			21			2			67		161
Contract acquisition costs, net of repayments		(47	)		(16	)		(1	)		–		(64	)
Lease incentives received		–			–			–			6		6
Timing differences and other adjustments		–			–			(1	)		2		1
Additions per the Group Financial Statements		24			5			–			75		104
Comprising additions to:
Goodwill and other intangible assets		–			–			–			46		46
Property, plant and equipment		23			5			–			29		57
Investment in associates		1			–			–			–		1
		24			5			–			75		104

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, net of repayments		(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		4			–			–			–		4
Other financial assets		–			5			–			–		5
		6			10			–			43		59

2. Segmental information continued

Geographical information

Year ended 31 December	2022 $m		2021 $m		2020 $m
Revenue
United Kingdom		243		142		77
United States		1,659		1,263		1,067
Rest of World		773		574		485
		2,675		1,979		1,629
System Fund revenues (note 32)		1,217		928		765
		3,892		2,907		2,394

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	2022 $m		2021 $m
Non-current assets
United Kingdom		102		64
United States		1,308		1,346
Rest of World		621		661
		2,031		2,071

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, non-current other receivables, 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.