XML 296 R24.htm IDEA: XBRL DOCUMENT v3.24.0.1
Investment in associates and joint ventures
 12 Months Ended
Dec. 31, 2023
Disclosure of associates [abstract]  
Investment in associates and joint ventures
15. Investment in associates and joint ventures
 
            
   2023
$m
           
   2022
$m
  
Cost
      
 
 
 
     
 
 
 
At 1 January
      
 
89
 
     
 
132
 
Additions
      
 
3
 
     
 
1
 
Share of profits/(losses)
a
     
 
13
 
     
 
(41
) 
System Fund share of losses
      
 
(3
) 
     
 
(1
) 
Dividends and distributions
      
 
(1
) 
     
 
(1
) 
Exchange and other adjustments
      
 
–
 
     
 
(1
) 
At 31 December
      
 
101
 
     
 
89
 
Impairment
      
 
 
 
     
 
 
 
At 1 January
      
 
(53
) 
     
 
(55
) 
Impairment reversal
      
 
–
 
     
 
2
 
At 31 December
      
 
(53
) 
     
 
(53
) 
Net book value
      
 
48
 
     
 
36
 
Analysed as:
      
 
 
 
     
 
 
 
Barclay associate
      
 
3
 
     
 
–
 
Other associates
      
 
43
 
     
 
36
 
Joint ventures
      
 
2
 
     
 
–
 
 
      
 
48
 
     
 
36
 
 
a
 
In 2023 and 2022, the total share of profits/(losses) from associates and joint ventures in the Group income statement included $18m gain and $18m loss, respectively, due to the liability recognised in 2022 and its subsequent reversal (see note 6). In 2022, $42m was included within exceptional items in addition to the $18m above.
Barclay associate
The Group held one associate investment which had a significant impact on profit for the current and prior year, a 19.9% interest in 111 East 48th Street Holdings, LLC (the ‘Barclay associate’) which owns InterContinental New York Barclay, a hotel managed by the Group. The investment is classified as an associate and equity accounted. While the Group has the ability to exercise significant influence through certain decision rights, approval rights relating to the hotel’s operating and capital budgets rest solely with the 80.1% majority member. The Group’s ability to receive cash dividends is dependent on the hotel generating sufficient income to satisfy specified owner returns. $18m was provided in 2021 in relation to settlement of a commercial dispute regarding owner returns during the pandemic.
Summarised financial information in respect of the Barclay associate is set out below: 
 
            
    2023
$m
           
    2022
$m
  
Non-current
assets
      
 
462
 
     
 
472
 
Current assets
      
 
86
 
     
 
64
 
Current liabilities
      
 
(23
) 
     
 
(33
) 
Non-current
liabilities
      
 
(256
) 
     
 
(250
) 
Net assets
      
 
269
 
     
 
253
 
Group’s share of reported net assets at 19.9%
      
 
53
 
     
 
50
 
Adjustments to reflect impairment, capitalised costs and additional rights and obligations under the shareholder agreement
      
 
(8
) 
     
 
(8
) 
Effect of specially allocated expenses (note 6)
      
 
(42
) 
     
 
(42
) 
Carrying amount
      
 
3
 
     
 
–
 
 
            
    2023
$m
            
    2022
$m
  
Revenue
      
 
131
 
      
 
106
 
Profit from continuing operations and total comprehensive income for the year
      
 
15
 
      
 
8
 
Group’s share of profit/(loss) for the year
a
     
 
3
 
      
 
(42
) 
 
a
 
Includes specially allocated expenses and the cost of funding owner returns.
Other associates and joint ventures
In 2022, impairment reversal of $2m related to an associate in the Americas region and arose due to strong trading conditions in 2022 and significantly improved industry forecasts. The recoverable amount was measured at fair value less costs of disposal, using a discounted cash flow approach that measures the present value of projected income flows (over a
10-year
period) and the property sale. The key assumptions were RevPAR growth (which was in line with the Group forecast detailed in the 2022 Annual Report), discount rate of 9.75% and terminal capitalisation rate of 7.25%.