|
99.1
|
Final
Results dated 23 February 2021
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
Underlying5
|
|
||
2020
|
2019
|
% Change
|
|
% Change
|
|
|
REPORTABLE SEGMENTS1
|
|
|
|
|
|
|
Revenue2
|
$992m
|
$2,083m
|
(52)%
|
|
(52)%
|
|
Revenue from fee business
|
$823m
|
$1,510m
|
(45)%
|
|
(45)%
|
|
Operating profit2
|
$219m
|
$865m
|
(75)%
|
|
(75)%
|
|
Fee margin3
|
34.1%
|
54.1%
|
(20.0)%pts
|
|
|
|
Adjusted EPS4
|
31.3¢
|
303.3¢
|
(90)%
|
|
KEY METRICS
|
|
GROUP RESULTS
|
|
|
|
|
● $13.5bn total gross
revenue (down 52%; (51)% at CER)
|
|
Total revenue
|
$2,394m
|
$4,627m
|
(48)%
|
|
||
Operating (loss)/profit
|
$(153)m
|
$630m
|
(124)%
|
|
● (52.5)% global FY
RevPAR
|
|
Basic EPS
|
(142.9)¢
|
210.4¢
|
(168)%
|
|
||
Total dividend per share
|
-
|
39.9¢
|
(100)%
|
|
● (53.2)% global Q4
RevPAR
|
|
Net debt
|
$2,529m
|
$2,665m
|
(5)%
|
|
●
|
FY
RevPAR (52.5)%; variation by region reflects local market Covid-19
restrictions and recovery pace; Greater China recovery most
advanced with Q4 RevPAR (18.2)%, Americas (49.5)%, EMEAA
(70.5)%.
|
●
|
Continued
outperformance in key markets, driven by portfolio mix and
resilience of our business model.
|
●
|
$150m
reduction in fee business costs; targeting ~$75m to be sustainable
into 2021, while still investing for growth.
|
●
|
Operating
profit from reportable segments down 75% to $219m before System
Fund result of $(102)m and operating exceptionals of $(270)m,
predominantly comprising charges already taken in H1 2020,
including impairments to owned and leased hotels and acquired
management agreements.
|
●
|
Strong
cash management, resulting in free cash inflow of $29m, with an
inflow in H2. Total available liquidity of $2.1bn (on pro forma
basis for repayment of £600m UK Government CCFF at March 2021
maturity).
|
●
|
Global
estate now 886k rooms (5,964 hotels), with +0.3% net system size
growth (+2.2% excluding impact of SVC portfolio termination);
opened 39k rooms (285 hotels), +4.5% gross growth.
|
●
|
Signed
56k rooms (360 hotels); Holiday Inn Brand Family half of all
signings; conversions ~25% of all signings.
|
●
|
Global
pipeline now 272k rooms (1,815 hotels); 11% share of industry
pipeline vs 4% current market share.
|
●
|
Long-term
attractiveness of our markets and segments remains; strategic
priorities evolved to drive future growth.
|
●
|
New
2030 Responsible Business Plan, Journey to Tomorrow, sets out
ambitious commitments including our environmental targets, support
for communities and championing diversity, inclusion and
equality.
|
|
Full Year 2020
|
Q4 2020
|
||||
|
RevPAR
|
ADR
|
Occupancy
|
RevPAR
|
ADR
|
Occupancy
|
Group
|
(52.5)%
|
(17.0)%
|
(29.5)%pts
|
(53.2)%
|
(22.4)%
|
(26.5)%pts
|
Americas
|
(48.5)%
|
(16.2)%
|
(26.5)%pts
|
(49.5)%
|
(21.5)%
|
(23.1)%pts
|
EMEAA
|
(64.8)%
|
(18.4)%
|
(41.9)%pts
|
(70.5)%
|
(24.4)%
|
(44.9)%pts
|
G.
China
|
(40.5)%
|
(13.3)%
|
(19.2)%pts
|
(18.2)%
|
(8.6)%
|
(6.7)%pts
|
|
Full Year 2020
|
Q4 2020
|
||||
|
CER
|
AER
|
Difference
|
CER
|
AER
|
Difference
|
Group
|
(52.5)%
|
(52.5)%
|
0.0%pts
|
(53.2)%
|
(52.6)%
|
0.6%pts
|
Americas
|
(48.5)%
|
(48.7)%
|
(0.2)%pts
|
(49.5)%
|
(49.6)%
|
(0.1)%pts
|
EMEAA
|
(64.8)%
|
(64.7)%
|
0.1%pts
|
(70.5)%
|
(70.0)%
|
0.5%pts
|
G.
China
|
(40.5)%
|
(39.7)%
|
0.8%pts
|
(18.2)%
|
(13.2)%
|
5.0%pts
|
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
Oct
|
Nov
|
Dec
|
Group
|
(1.5)%
|
(10.8)%
|
(55.1)%
|
(81.9)%
|
(75.6)%
|
(67.4)%
|
(58.1)%
|
(51.0)%
|
(50.9)%
|
(51.9)%
|
(55.3)%
|
(52.4)%
|
Americas
|
0.2%
|
(0.9)%
|
(49.0)%
|
(80.1)%
|
(72.5)%
|
(62.0)%
|
(54.0)%
|
(48.6)%
|
(46.4)%
|
(48.0)%
|
(51.4)%
|
(49.5)%
|
EMEAA
|
2.1%
|
(11.3)%
|
(62.7)%
|
(89.3)%
|
(88.5)%
|
(85.3)%
|
(74.7)%
|
(66.3)%
|
(69.9)%
|
(70.5)%
|
(72.4)%
|
(68.6)%
|
G.
China
|
(24.6)%
|
(89.3)%
|
(81.4)%
|
(71.2)%
|
(57.1)%
|
(48.6)%
|
(35.9)%
|
(20.2)%
|
(11.0)%
|
(16.9)%
|
(22.5)%
|
(15.1)%
|
|
System
|
Pipeline
|
|||||
|
Openings
|
Removals
|
Net
|
Total
|
YoY%
|
Signings
|
Total
|
Group
|
39,392
|
(36,919)
|
2,473
|
886,036
|
0.3%
|
56,146
|
272,057
|
Americas
|
16,746
|
(27,381)
|
(10,635)
|
514,012
|
(2.0)%
|
14,039
|
102,757
|
EMEAA
|
11,288
|
(6,809)
|
4,479
|
227,849
|
2.0%
|
13,903
|
76,120
|
G.
China
|
11,358
|
(2,729)
|
8,629
|
144,175
|
6.4%
|
28,204
|
93,180
|
|
GROUP
|
REPORTABLE SEGMENTS
|
||||||||
|
Total
|
Americas
|
EMEAA
|
G. China
|
Central
|
|||||
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
|
Revenue
($m)
|
|
|
|
|
|
|
|
|
|
|
Revenue from reportable segments
|
992
|
2,083
|
512
|
1,040
|
221
|
723
|
77
|
135
|
182
|
185
|
System
Fund
|
765
|
1,373
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Hotel
Cost Reimbursements
|
637
|
1,171
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Group Revenue
|
2,394
|
4,627
|
512
|
1,040
|
221
|
723
|
77
|
135
|
182
|
185
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
($m)
|
|
|
|
|
|
|
|
|
|
|
Fee
Business excluding central overheads
|
340
|
938
|
323
|
663
|
(18)
|
202
|
35
|
73
|
-
|
-
|
Owned,
leased & managed lease
|
(59)
|
52
|
(27)
|
37
|
(32)
|
15
|
-
|
-
|
-
|
-
|
Central
|
(62)
|
(125)
|
-
|
-
|
-
|
-
|
-
|
-
|
(62)
|
(125)
|
Operating profit/(loss) from reportable segments
|
219
|
865
|
296
|
700
|
(50)
|
217
|
35
|
73
|
(62)
|
(125)
|
System
Fund result
|
(102)
|
(49)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Operating profit/(loss) before exceptionals
|
117
|
816
|
296
|
700
|
(50)
|
217
|
35
|
73
|
(62)
|
(125)
|
Operating
exceptional items
|
(270)
|
(186)
|
(118)
|
(62)
|
(128)
|
(109)
|
(5)
|
-
|
(19)
|
(15)
|
Operating (loss)/profit after exceptionals
|
(153)
|
630
|
178
|
638
|
(178)
|
108
|
30
|
73
|
(81)
|
(140)
|
|
Total*
|
Americas
|
EMEAA
|
G. China
|
||||
Reported
|
AER
|
CER
|
AER
|
CER
|
AER
|
CER
|
AER
|
CER
|
Growth
/ (decline)
|
(75)%
|
(75)%
|
(58)%
|
(57)%
|
(123)%
|
(123)%
|
(52)%
|
(52)%
|
|
Total*
|
Americas
|
EMEAA
|
G. China
|
Growth
/ (decline)
|
(75)%
|
(57)%
|
(126)%
|
(52)%
|
Definitions
for Non-GAAP measures can be found in the ‘Use of Non-GAAP
measures’ section in the Business Review, along with
reconciliations of these measures to the most directly comparable
line items within the Group Financial Statements.
Total gross revenue: total rooms revenue from franchised
hotels and total hotel revenue from managed, owned, leased and
managed lease hotels. Other than owned, leased and managed lease
hotels, it is not revenue attributable to IHG, as it is derived
mainly from hotels owned by third parties.
Reportable segments: Group results excluding System Fund
results, hotel cost reimbursements and exceptional
items.
Fee business revenue: revenue from reportable segments
excluding the results of the Group’s owned, leased and
managed lease hotels.
Fee margin: adjusted to exclude owned, leased and managed
lease hotels, significant liquidated damages, and the results of
the Group’s captive insurance company.
Significant liquidated damages: $1m in 2020 ($1m in EMEAA
fee business); $11m in 2019 ($11m in EMEAA fee
business).
Operating profit from reportable segments: comprises the
Group’s fee business and owned, leased and managed lease
hotels.
Underlying % change in operating profit from reportable
segments: at CER and excludes significant liquidated
damages, in-year acquisitions and current year
disposals.
RevPAR, ADR and occupancy: RevPAR (revenue per available
room), ADR (average daily rate) and occupancy are on a comparable
basis unless otherwise stated, based on comparability as at 31
December 2020 and hotels that have traded in all months in both
2020 and 2019. The principal exclusions in deriving these measures
are new openings, properties under major refurbishment and
removals. These measures include the adverse impact of hotels
temporarily closed as a result of Covid-19. Monthly RevPAR reflects
those hotels which have been designated as comparable at the end of
the respective quarterly period. RevPAR and ADR are on a CER basis
unless otherwise stated.
Total RevPAR: Revenue per available room including hotels
that have opened or exited in either 2019 or 2020. On a CER
basis.
AER: actual exchange rates used for each respective
period.
CER: constant exchange rates with 2020 exchange rates
applied to each comparable period in 2019. The USD:GBP exchange
rate for 2020 was 0.78 (2019: 0.78). The USD:EUR exchange rate for
2020 was 0.88 (2019: 0.89).
Guest Satisfaction Index (GSI): an IHG metric that uses
third party aggregated social review data to benchmark IHG guest
satisfaction performance against that of our
competitors.
Adjusted Interest: adds back interest relating to the System
Fund and excludes exceptional items.
Adjusted EPS: calculated using results from Reportable
Segments and Adjusted Interest, and excluding changes in fair value
of contingent consideration.
Free cash flow: Cash flow from operating activities
excluding payments of contingent purchase consideration, less
purchase of shares by employee share trusts, maintenance capital
expenditure and the principal element of lease
payments.
|
Investor
Relations (Stuart Ford; Rakesh Patel; Kavita Tatla)
|
+44
(0)1895 512 176
|
+44
(0)7527 419 431
|
Media
Relations (Yasmin Diamond; Mark Debenham)
|
+44
(0)1895 512 097
|
+44
(0)7527 424 046
|
UK
local:
|
0203
936 2999
|
UK:
|
0800
640 6441
|
US:
|
+1 855
979 6654
|
All
other locations:
|
+44 203
936 2999
|
Passcode:
|
37 47
52
|
UK:
|
0203
936 3001
|
All
other locations:
|
+44 203
936 3001
|
Passcode:
|
60 30
28
|
|
12
months ended 31 December
|
|||
Group results
|
|
|
|
|
|
2020
|
2019
|
%
|
|
|
$m
|
$m
|
change
|
|
Revenuea
|
|
|
|
|
Americas
|
512
|
1,040
|
(50.8)
|
|
EMEAA
|
221
|
723
|
(69.4)
|
|
Greater
China
|
77
|
135
|
(43.0)
|
|
Central
|
182
|
185
|
(1.6)
|
|
|
____
|
____
|
____
|
|
Revenue
from reportable segments
|
992
|
2,083
|
(52.4)
|
|
|
|
|
|
|
System
Fund revenues
|
765
|
1,373
|
(44.3)
|
|
Reimbursement
of costs
|
637
|
1,171
|
(45.6)
|
|
|
____
|
____
|
____
|
|
Total
revenue
|
2,394
|
4,627
|
(48.3)
|
|
|
____
|
____
|
____
|
|
Operating profita
|
|
|
|
|
Americas
|
296
|
700
|
(57.7)
|
|
EMEAA
|
(50)
|
217
|
(123.0)
|
|
Greater
China
|
35
|
73
|
(52.1)
|
|
Central
|
(62)
|
(125)
|
(50.4)
|
|
|
____
|
____
|
____
|
|
Operating
profit from reportable segments
|
219
|
865
|
(74.7)
|
|
System
Fund result
|
(102)
|
(49)
|
108.2
|
|
|
____
|
____
|
____
|
|
Operating
profit before exceptional items
|
117
|
816
|
(85.7)
|
|
Operating
exceptional items
|
(270)
|
(186)
|
45.2
|
|
|
____
|
____
|
____
|
|
Operating
(loss)/profit
|
(153)
|
630
|
(124.3)
|
|
Net
financial expenses
|
(140)
|
(115)
|
21.7
|
|
Fair
value gains on contingent purchase consideration
|
13
|
27
|
(51.9)
|
|
|
____
|
____
|
____
|
|
(Loss)/profit
before tax
|
(280)
|
542
|
(151.7)
|
|
|
____
|
____
|
____
|
|
(Loss)/earnings
per ordinary share
|
|
|
|
|
|
Basic
|
(142.9)¢
|
210.4¢
|
(167.9)
|
|
Adjustedb
|
31.3¢
|
303.3¢
|
(89.7)
|
|
|
|
|
|
Average
US dollar to sterling exchange rate
|
$1: £0.78
|
$1:
£0.78
|
-
|
|
12 months ended 31 December
|
||||
|
|
|
|
|
|
|
2020
|
|
2019
|
|
%
|
Total gross revenuea
|
$bn
|
|
$bn
|
|
changeb
|
Analysed by brand
|
|
|
|
|
|
InterContinental
|
2.0
|
|
5.1
|
|
(60.2)
|
Kimpton
|
0.4
|
|
1.4
|
|
(71.2)
|
HUALUXE
|
0.1
|
|
0.1
|
|
5.3
|
Crowne Plaza
|
1.8
|
|
4.3
|
|
(57.3)
|
Hotel Indigo
|
0.3
|
|
0.6
|
|
(56.9)
|
EVEN Hotels
|
0.0
|
|
0.1
|
|
(66.8)
|
Holiday Inn
|
2.8
|
|
6.3
|
|
(55.0)
|
Holiday Inn Express
|
4.2
|
|
7.3
|
|
(42.4)
|
Staybridge Suites
|
0.7
|
|
1.0
|
|
(32.8)
|
Candlewood Suites
|
0.7
|
|
0.9
|
|
(22.3)
|
Other
|
0.5
|
|
0.8
|
|
(41.1)
|
|
____
|
|
____
|
|
____
|
Total
|
13.5
|
|
27.9
|
|
(51.5)
|
|
____
|
|
____
|
|
____
|
|
|
|
|
|
|
Analysed by ownership type
|
|
|
|
|
|
Fee business
|
13.3
|
|
27.3
|
|
(51.1)
|
Owned, leased and managed lease
|
0.2
|
|
0.6
|
|
(70.6)
|
|
____
|
|
____
|
|
____
|
Total
|
13.5
|
|
27.9
|
|
(51.5)
|
|
____
|
|
____
|
|
____
|
|
|
Hotels
|
Rooms
|
||
Global hotel and room count
|
|
Change
|
|
Change
|
|
at 31 December
|
2020
|
over 2019
|
2020
|
over 2019
|
|
|
|
|
|
|
|
Analysed by brand
|
|
|
|
|
|
|
Six Senses
|
16
|
(2)
|
1,129
|
(319)
|
|
Regent
|
7
|
1
|
2,190
|
187
|
|
InterContinental
|
205
|
(7)
|
69,941
|
(1,040)
|
|
Kimpton
|
73
|
7
|
13,085
|
39
|
|
HUALUXE
|
12
|
3
|
3,433
|
723
|
|
Crowne Plaza
|
429
|
(2)
|
118,879
|
(1,703)
|
|
Hotel Indigo
|
125
|
7
|
15,604
|
1,030
|
|
EVEN Hotels
|
16
|
3
|
2,410
|
461
|
|
voco
|
18
|
6
|
5,077
|
784
|
|
Holiday Inn1
|
1,276
|
(8)
|
236,554
|
(3,340)
|
|
Holiday Inn Express
|
2,966
|
91
|
309,487
|
10,253
|
|
avid hotels
|
24
|
17
|
2,156
|
1,521
|
|
Staybridge Suites
|
303
|
3
|
32,895
|
262
|
|
Candlewood Suites
|
366
|
(44)
|
32,435
|
(5,897)
|
|
Other2
|
128
|
(14)
|
40,761
|
(488)
|
|
|
____
|
____
|
______
|
_____
|
Total
|
5,964
|
61
|
886,036
|
2,473
|
|
|
|
____
|
____
|
______
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
Franchised
|
5,005
|
135
|
627,348
|
12,374
|
|
Managed
|
936
|
(71)
|
253,288
|
(8,965)
|
|
Owned, leased and managed lease
|
23
|
(3)
|
5,400
|
(936)
|
|
|
____
|
____
|
______
|
_____
|
Total
|
|
5,964
|
61
|
886,036
|
2,473
|
|
|
____
|
____
|
______
|
_____
|
|
|
|
|
|
|
|
|
Hotels
|
Rooms
|
||
Global Pipeline
|
|
Change
|
|
Change
|
|
at 31 December
|
2020
|
over 2019
|
2020
|
over 2019
|
|
|
|
|
|
|
|
Analysed by brand
|
|
|
|
|
|
|
Six Senses
|
31
|
6
|
2,239
|
469
|
|
Regent
|
6
|
1
|
1,535
|
591
|
|
InterContinental
|
69
|
4
|
17,774
|
756
|
|
Kimpton
|
32
|
(1)
|
6,265
|
62
|
|
HUALUXE
|
25
|
3
|
6,907
|
727
|
|
Crowne Plaza
|
89
|
1
|
24,228
|
(278)
|
|
Hotel Indigo
|
104
|
3
|
15,704
|
556
|
|
EVEN Hotels
|
31
|
5
|
5,046
|
704
|
|
voco
|
29
|
12
|
8,179
|
1,959
|
|
Holiday Inn1
|
262
|
(13)
|
51,163
|
(1,746)
|
|
Holiday Inn Express
|
683
|
(71)
|
87,152
|
(8,722)
|
|
avid hotels
|
192
|
(15)
|
17,526
|
(1,542)
|
|
Staybridge Suites
|
155
|
(27)
|
17,490
|
(3,244)
|
|
Candlewood Suites
|
73
|
(18)
|
6,369
|
(1,817)
|
|
Atwell Suites
|
19
|
9
|
1,849
|
849
|
|
Other2
|
15
|
(2)
|
2,631
|
(310)
|
|
|
____
|
____
|
______
|
_____
|
Total
|
1,815
|
(103)
|
272,057
|
(10,986)
|
|
|
|
____
|
____
|
______
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
Franchised
|
1,310
|
(101)
|
159,068
|
(7,573)
|
|
Managed
|
504
|
(2)
|
112,834
|
(3,413)
|
|
Owned, leased and managed lease
|
1
|
-
|
155
|
-
|
|
|
____
|
____
|
______
|
_____
|
Total
|
|
1,815
|
(103)
|
272,057
|
(10,986)
|
|
|
____
|
____
|
______
|
_____
|
AMERICAS
|
12 months ended 31
December
|
||||
Americas Results
|
|
|
|
||
|
2020
|
2019
|
%
|
||
|
$m
|
$m
|
change
|
||
Revenue from the reportable segmenta
|
|
|
|
||
|
Fee
business
|
457
|
853
|
(46.4)
|
|
|
Owned,
leased and managed lease
|
55
|
187
|
(70.6)
|
|
|
____
|
____
|
____
|
||
Total
|
|
512
|
1,040
|
(50.8)
|
|
|
____
|
____
|
____
|
||
Operating profit from the reportable segmenta
|
|
|
|
||
|
Fee
business
|
323
|
663
|
(51.3)
|
|
|
Owned,
leased and managed lease
|
(27)
|
37
|
(173.0)
|
|
|
____
|
____
|
____
|
||
|
|
296
|
700
|
(57.7)
|
|
Operating
exceptional items
|
|
(118)
|
(62)
|
90.3
|
|
|
____
|
____
|
____
|
||
Operating
profit
|
178
|
638
|
(72.1)
|
||
|
____
|
____
|
____
|
||
|
|
|
|
||
|
|
|
|
Americas Comparable RevPARb movement on previous
year
|
12 months ended
31 December
2020
|
|||
Fee
business
|
|
|
||
|
InterContinental
|
(71.0%)
|
|
|
|
Kimpton
|
(69.7%)
|
|
|
|
Crowne
Plaza
|
(65.1%)
|
|
|
|
Hotel
Indigo
|
(57.0%)
|
|
|
|
EVEN
Hotels
|
(74.2%)
|
|
|
|
Holiday
Inn
|
(52.0%)
|
|
|
|
Holiday
Inn Express
|
(41.6%)
|
|
|
|
Staybridge
Suites
|
(36.0%)
|
|
|
|
Candlewood
Suites
|
(23.0%)
|
|
|
|
All
brands
|
(48.5%)
|
|
|
Owned,
leased and managed lease
|
|
|
||
|
EVEN
Hotels
|
(62.0%)
|
|
|
|
Holiday
Inn
|
(62.2%)
|
|
|
|
All
brands
|
(62.1%)
|
|
|
Hotels
|
Rooms
|
|||
Americas hotel and room count
at 31 December
|
2020
|
Change
over
2019
|
2020
|
Change
over
2019
|
|
|
|
|
|
|
|
Analysed
by brand
|
|
|
|
|
|
|
InterContinental
|
46
|
(5)
|
16,789
|
(1,107)
|
|
Kimpton
|
64
|
3
|
11,097
|
(900)
|
|
Crowne
Plaza
|
136
|
(13)
|
35,405
|
(4,470)
|
|
Hotel
Indigo
|
67
|
3
|
8,793
|
526
|
|
EVEN
Hotels
|
15
|
2
|
2,239
|
290
|
|
voco
|
1
|
1
|
49
|
49
|
|
Holiday
Inn1
|
766
|
(17)
|
130,942
|
(4,344)
|
|
Holiday
Inn Express
|
2,425
|
57
|
220,342
|
5,349
|
|
avid
Hotels
|
24
|
17
|
2,156
|
1,521
|
|
Staybridge
Suites
|
285
|
2
|
30,057
|
(187)
|
|
Candlewood
Suites
|
366
|
(44)
|
32,435
|
(5,897)
|
|
Other2
|
103
|
(15)
|
23,708
|
(1,465)
|
|
|
____
|
____
|
______
|
_____
|
Total
|
4,298
|
(9)
|
514,012
|
(10,635)
|
|
|
|
____
|
____
|
______
|
_____
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchised
|
4,105
|
97
|
471,802
|
6,537
|
|
Managed
Owned,
leased and managed lease
|
187
6
|
(105)
(1)
|
40,391
1,819
|
(16,769)
(403)
|
|
|
____
|
____
|
______
|
_____
|
Total
|
4,298
|
(9)
|
514,012
|
(10,635)
|
|
|
|
____
|
____
|
______
|
_____
|
|
Hotels
|
Rooms
|
|||
Americas pipeline
at 31 December
|
2020
|
Change
over
2019
|
2020
|
Change
over
2019
|
|
|
|
|
|
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six
Senses
|
7
|
2
|
519
|
97
|
|
InterContinental
|
7
|
-
|
1,724
|
175
|
|
Kimpton
|
20
|
(1)
|
3,483
|
24
|
|
Crowne
Plaza
|
6
|
1
|
1,250
|
157
|
|
Hotel
Indigo
|
31
|
(6)
|
4,155
|
(1,017)
|
|
EVEN
Hotels
|
16
|
1
|
1,975
|
109
|
|
voco
|
2
|
2
|
274
|
274
|
|
Holiday
Inn1
|
80
|
(18)
|
10,446
|
(2,060)
|
|
Holiday
Inn Express
|
386
|
(62)
|
37,355
|
(5,748)
|
|
avid
hotels
|
191
|
(15)
|
17,311
|
(1,542)
|
|
Staybridge
Suites
|
135
|
(27)
|
14,061
|
(2,813)
|
|
Candlewood
Suites
|
73
|
(18)
|
6,369
|
(1,817)
|
|
Atwell
Suites
|
19
|
9
|
1,849
|
849
|
|
Other
|
13
|
(3)
|
1,986
|
(793)
|
|
|
____
|
____
|
______
|
_____
|
Total
|
986
|
(135)
|
102,757
|
(14,105)
|
|
|
|
____
|
____
|
______
|
_____
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchised
|
944
|
(133)
|
96,528
|
(13,458)
|
|
Managed
|
42
|
(2)
|
6,229
|
(647)
|
|
|
____
|
____
|
______
|
_____
|
Total
|
986
|
(135)
|
102,757
|
(14,105)
|
|
|
|
____
|
____
|
______
|
_____
|
|
12 months
ended 31 December
|
||||
EMEAA results
|
|
|
|
||
|
2020
|
2019
|
%
|
||
|
$m
|
$m
|
change
|
||
Revenue from the reportable segmenta
|
|
|
|
||
|
Fee
business
|
107
|
337
|
(68.2)
|
|
|
Owned,
leased and managed lease
|
114
|
386
|
(70.5)
|
|
|
____
|
____
|
____
|
||
Total
|
|
221
|
723
|
(69.4)
|
|
|
____
|
____
|
____
|
||
Operating (loss)/profit from the reportable segmenta
|
|
|
|
||
|
Fee
business
|
(18)
|
202
|
(108.9)
|
|
|
Owned,
leased and managed lease
|
(32)
|
15
|
(313.3)
|
|
|
____
|
____
|
____
|
||
|
|
(50)
|
217
|
(123.0)
|
|
Operating
exceptional items
|
|
(128)
|
(109)
|
17.4
|
|
|
|
____
|
____
|
____
|
|
Operating
(loss)/profit
|
(178)
|
108
|
(264.8)
|
||
|
____
|
____
|
____
|
EMEAA comparable RevPARb movement on previous
year
|
12 months ended
31 December
2020
|
|||
|
|
|||
Fee
business
|
|
|||
|
InterContinental
|
(64.8%)
|
||
|
Crowne
Plaza
|
(64.5%)
|
||
|
Hotel
Indigo
|
(73.7%)
|
||
|
Holiday
Inn
|
(64.3%)
|
||
|
Holiday
Inn Express
|
(64.5%)
|
||
|
Staybridge
Suites
|
(46.6%)
|
||
|
All
brands
|
(64.6%)
|
||
|
|
|
||
Owned,
leased and managed leases
|
|
|||
|
InterContinental
|
(66.7%)
|
||
|
All
brands
|
(74.2%)
|
||
|
|
|
|
|
Hotels
|
Rooms
|
||
EMEAA hotel and room count
|
|
Change
|
|
Change
|
|
at 31 December
|
2020
|
over 2019
|
2020
|
over 2019
|
|
|
|
|
|
|
|
Analysed by brand
|
|
|
|
|
|
|
Six Senses
|
15
|
(2)
|
1,007
|
(319)
|
|
Regent
|
3
|
-
|
771
|
-
|
|
InterContinental
|
108
|
(5)
|
32,474
|
(1,041)
|
|
Kimpton
|
8
|
4
|
1,859
|
939
|
|
Crowne Plaza
|
188
|
2
|
46,524
|
113
|
|
Hotel Indigo
|
46
|
5
|
5,066
|
627
|
|
voco
|
16
|
4
|
4,880
|
587
|
|
Holiday Inn1
|
401
|
7
|
74,984
|
1,552
|
|
Holiday Inn Express
|
329
|
5
|
47,356
|
902
|
|
Staybridge Suites
|
18
|
1
|
2,838
|
449
|
|
Other2
|
17
|
2
|
10,090
|
670
|
|
|
____
|
____
|
______
|
_____
|
Total
|
1,149
|
23
|
227,849
|
4,479
|
|
|
|
____
|
____
|
______
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
Franchised
|
774
|
1
|
125,720
|
(735)
|
|
Managed
|
358
|
24
|
98,548
|
5,747
|
|
Owned, leased and managed lease
|
17
|
(2)
|
3,581
|
(533)
|
|
|
____
|
____
|
______
|
_____
|
Total
|
|
1,149
|
23
|
227,849
|
4,479
|
|
|
____
|
____
|
______
|
_____
|
|
|
Hotels
|
Rooms
|
||
EMEAA Pipeline
|
|
Change
|
|
Change
|
|
at 31 December
|
2020
|
over 2019
|
2020
|
over 2019
|
|
|
|
|
|
|
|
Analysed by brand
|
|
|
|
|
|
|
Six Senses
|
21
|
4
|
1,551
|
372
|
|
Regent
|
5
|
1
|
1,255
|
591
|
|
InterContinental
|
33
|
2
|
7,485
|
(22)
|
|
Kimpton
|
6
|
(1)
|
1,128
|
(119)
|
|
Crowne Plaza
|
35
|
-
|
9,101
|
(314)
|
|
Hotel Indigo
|
41
|
1
|
6,047
|
395
|
|
voco
|
26
|
9
|
7,774
|
1,554
|
|
Holiday Inn1
|
108
|
(11)
|
22,554
|
(3,382)
|
|
Holiday Inn Express
|
92
|
(20)
|
15,233
|
(3,816)
|
|
avid hotels
|
1
|
-
|
215
|
-
|
|
Staybridge Suites
|
20
|
-
|
3,429
|
(431)
|
|
Other
|
1
|
-
|
348
|
186
|
|
|
____
|
____
|
______
|
_____
|
Total
|
389
|
(15)
|
76,120
|
(4,986)
|
|
|
|
____
|
____
|
______
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
Franchised
|
155
|
(10)
|
25,652
|
(1,679)
|
|
Managed
|
233
|
(5)
|
50,313
|
(3,307)
|
|
Owned, leased and managed lease
|
1
|
-
|
155
|
-
|
|
|
____
|
____
|
______
|
_____
|
Total
|
|
389
|
(15)
|
76,120
|
(4,986)
|
|
|
____
|
____
|
______
|
_____
|
|
|
|
|
|
|
|
12 months ended 31
December
|
||||
|
|
|
|
||
Greater China results
|
2020
|
2019
|
%
|
||
|
$m
|
$m
|
change
|
||
|
|
|
|
||
Revenue from the reportable segmenta
|
|
|
|
||
|
Fee
business
|
77
|
135
|
(43.0)
|
|
|
|
____
|
____
|
____
|
|
Total
|
|
77
|
135
|
(43.0)
|
|
|
____
|
____
|
____
|
||
Operating profit from the reportable segmenta
|
|
|
|
||
|
Fee
business
|
35
|
73
|
(52.1)
|
|
|
____
|
____
|
____
|
||
Operating
exceptional items
|
(5)
|
-
|
-
|
||
|
____
|
____
|
____
|
||
Operating
profit
|
30
|
73
|
(58.9)
|
||
|
____
|
____
|
____
|
Greater China comparable RevPARb movement on previous
year
|
12 months ended
31 December
2020
|
|
|
|
|
Fee
business
|
|
|
|
InterContinental
|
(36.8%)
|
|
HUALUXE
|
(20.4%)
|
|
Crowne
Plaza
|
(38.4%)
|
|
Hotel
Indigo
|
(44.0%)
|
|
Holiday
Inn
|
(46.9%)
|
|
Holiday
Inn Express
|
(40.6%)
|
|
All
brands
|
(40.5%)
|
|
|
Hotels
|
Rooms
|
||||
Greater China hotel and room count
|
|
Change
|
|
Change
|
|
||
at 31 December
|
2020
|
over 2019
|
2020
|
over 2019
|
|
||
|
|
|
|
|
|
|
|
Analysed by brand
|
|
|
|
|
|
||
|
Six Senses
|
1
|
-
|
122
|
-
|
|
|
|
Regent
|
4
|
1
|
1,419
|
187
|
|
|
|
InterContinental
|
51
|
3
|
20,678
|
1,108
|
|
|
|
Kimpton
|
1
|
-
|
129
|
-
|
|
|
|
HUALUXE
|
12
|
3
|
3,433
|
723
|
|
|
|
Crowne Plaza
|
105
|
9
|
36,950
|
2,654
|
|
|
|
Hotel Indigo
|
12
|
(1)
|
1,745
|
(123)
|
|
|
|
EVEN Hotels
|
1
|
1
|
171
|
171
|
|
|
|
voco
|
1
|
1
|
148
|
148
|
|
|
|
Holiday Inn1
|
109
|
2
|
30,628
|
(548)
|
|
|
|
Holiday Inn Express
|
212
|
29
|
41,789
|
4,002
|
|
|
|
Other
|
8
|
(1)
|
6,963
|
307
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
|
Total
|
517
|
47
|
144,175
|
8,629
|
|
||
|
|
____
|
____
|
______
|
_____
|
|
|
Analysed by ownership type
|
|
|
|
|
|
||
|
Franchised
|
126
|
37
|
29,826
|
6,572
|
|
|
|
Managed
|
391
|
10
|
114,349
|
2,057
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
|
Total
|
|
517
|
47
|
144,175
|
8,629
|
|
|
|
|
____
|
____
|
______
|
_____
|
|
|
|
|
|
|
|
|
|
|
|
Hotels
|
Rooms
|
||
Greater China Pipeline
|
|
Change
|
|
Change
|
|
at 31 December
|
2020
|
over 2019
|
2020
|
over 2019
|
|
|
|
|
|
|
|
Analysed by brand
|
|
|
|
|
|
|
Six Senses
|
3
|
-
|
169
|
-
|
|
Regent
|
1
|
-
|
280
|
-
|
|
InterContinental
|
29
|
2
|
8,565
|
603
|
|
Kimpton
|
6
|
1
|
1,654
|
157
|
|
HUALUXE
|
25
|
3
|
6,907
|
727
|
|
Crowne Plaza
|
48
|
-
|
13,877
|
(121)
|
|
Hotel Indigo
|
32
|
8
|
5,502
|
1,178
|
|
EVEN Hotels
|
15
|
4
|
3,071
|
595
|
|
voco
|
1
|
1
|
131
|
131
|
|
Holiday Inn1
|
74
|
16
|
18,163
|
3,696
|
|
Holiday Inn Express
|
205
|
11
|
34,564
|
842
|
|
Other2
|
1
|
1
|
297
|
297
|
|
|
____
|
____
|
______
|
_____
|
Total
|
440
|
47
|
93,180
|
8,105
|
|
|
|
____
|
____
|
______
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
Franchised
|
211
|
42
|
36,888
|
7,564
|
|
Managed
|
229
|
5
|
56,292
|
541
|
|
|
____
|
____
|
______
|
_____
|
Total
|
|
440
|
47
|
93,180
|
8,105
|
|
|
____
|
____
|
______
|
_____
|
|
|
|
|
|
|
|
12 months ended 31 December
|
|||
|
|
|
|
|
|
2020
|
2019
|
%
|
|
Central results
|
$m
|
$m
|
change
|
|
|
|
|
|
|
Revenue
|
182
|
185
|
(1.6)
|
|
Gross
costs
|
(244)
|
(310)
|
(21.3)
|
|
|
____
|
____
|
____
|
|
|
|
(62)
|
(125)
|
(50.4)
|
Exceptional
items
|
|
(19)
|
(15)
|
26.7
|
|
____
|
____
|
____
|
|
Operating
loss
|
(81)
|
(140)
|
(42.1)
|
|
|
____
|
____
|
____
|
|
June & December 2021
|
June 2022
|
December 2022
|
Leverage ratio
|
Waived
|
Less than 7.5x
|
Less than 6.5x
|
Interest cover
|
Waived
|
Greater than 1.5x
|
Greater than 2.0x
|
|
|
2020
|
2019
|
Borrowings
|
|
$m
|
$m
|
|
Sterling*
|
3,716
|
2,022
|
|
US dollar
|
416
|
721
|
|
Euros
|
20
|
44
|
|
Other
|
52
|
73
|
Cash and cash equivalents
|
|
|
|
|
Sterling
|
(1,305)
|
(25)
|
|
US dollar
|
(261)
|
(91)
|
|
Euros
|
(12)
|
(13)
|
|
Canadian dollar
|
(8)
|
(7)
|
|
Chinese renminbi
|
(60)
|
(17)
|
|
Other
|
(29)
|
(42)
|
|
|
____
|
____
|
Net debt
|
|
2,529
|
2,665
|
|
|
|
|
Average debt levels
|
2,554
|
2,720
|
Reportable segments
|
Revenue
|
|
Operating profit
|
||||
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
2020
|
2019
|
%
|
|
2020
|
2019
|
%
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
Per Group income statement
|
2,394
|
4,627
|
(48.3)
|
|
(153)
|
630
|
(124.3)
|
System Fund
|
(765)
|
(1,373)
|
(44.3)
|
|
102
|
49
|
108.2
|
Reimbursement of costs
|
(637)
|
(1,171)
|
(45.6)
|
|
-
|
-
|
-
|
Operating exceptional items
|
-
|
-
|
-
|
|
270
|
186
|
45.2
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
992
|
2,083
|
(52.4)
|
|
219
|
865
|
(74.7)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
Fee business
|
823
|
1,510
|
(45.5)
|
|
278
|
813
|
(65.8)
|
Owned, leased and managed lease
|
169
|
573
|
(70.5)
|
|
(59)
|
52
|
(213.5)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
992
|
2,083
|
(52.4)
|
|
219
|
865
|
(74.7)
|
|
|
|
|
|
||||||||||||
|
|
|
Revenue
|
|
|
|
Operating profit
|
|
||||||||
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
2020
|
2019
|
%
|
|
2020
|
2019
|
%
|
|||||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Reportable segments (see above)
|
992
|
2,083
|
(52.4)
|
|
219
|
865
|
(74.7)
|
|||||||||
Significant liquidated damagesa
|
(1)
|
(11)
|
(90.9)
|
|
(1)
|
(11)
|
(90.9)
|
|||||||||
Owned asset disposalb
|
(2)
|
(12)
|
(83.3)
|
|
(3)
|
(2)
|
50.0
|
|||||||||
Currency impact
|
-
|
-
|
-
|
|
-
|
(2)
|
-
|
|||||||||
|
____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|||||||||
Underlying revenue and underlying operating profit
|
989
|
2,060
|
(52.0)
|
|
215
|
850
|
(74.7)
|
|
Revenue
|
Operating profit
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|||||||
|
2020
|
2019
|
%
|
|
2020
|
2019
|
%
|
||||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Reportable segments fee business (see above)
|
823
|
1,510
|
(45.5)
|
|
278
|
813
|
(65.8)
|
||||||||
Significant liquidated damages
|
(1)
|
(11)
|
(90.9)
|
|
(1)
|
(11)
|
(90.0)
|
||||||||
Currency impact
|
-
|
(4)
|
-
|
|
-
|
(3)
|
-
|
||||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||||
Underlying fee revenue
|
822
|
1,495
|
(45.0)
|
|
277
|
799
|
(65.3)
|
|
Revenue
|
|
Operating profita
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|||||||
|
2020
|
2019
|
%
|
|
2020
|
2019
|
%
|
||||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Per Group financial statements
|
512
|
1,040
|
(50.8)
|
|
296
|
700
|
(57.7)
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Reportable segments analysed as:
|
|
|
|
|
|
|
|
||||||||
Fee business
|
457
|
853
|
(46.4)
|
|
323
|
663
|
(51.3)
|
||||||||
Owned, leased and managed lease
|
55
|
187
|
(70.6)
|
|
(27)
|
37
|
(173.0)
|
||||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||||
|
512
|
1,040
|
(50.8)
|
|
296
|
700
|
(57.7)
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Reportable segments (see above)
|
512
|
1,040
|
(50.8)
|
|
296
|
700
|
(57.7)
|
||||||||
Currency impact
|
-
|
(5)
|
-
|
|
-
|
(4)
|
-
|
||||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||||
Underlying revenue and underlying operating profit
|
512
|
1,035
|
(50.5)
|
|
296
|
696
|
(57.5)
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Owned, leased and managed lease included in the above
|
(55)
|
(187)
|
(70.6)
|
|
27
|
(37)
|
(173.0)
|
||||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||||
Underlying fee business
|
457
|
848
|
(46.1)
|
|
323
|
659
|
(51.0)
|
|
Revenue
|
|
Operating (loss)/profitd
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
2020
|
2019c
|
%
|
|
2020
|
2019c
|
%
|
|
|||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Per Group financial statements
|
221
|
723
|
(69.4)
|
|
(50)
|
217
|
(123.0)
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Reportable segments analysed as:
|
|
|
|
|
|
|
|
|
|||||||
Fee business
|
107
|
337
|
(68.2)
|
|
(18)
|
202
|
(108.9)
|
|
|||||||
Owned, leased and managed lease
|
114
|
386
|
(71.5)
|
|
(32)
|
15
|
(313.3)
|
|
|||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
|||||||
|
221
|
723
|
(69.4)
|
|
(50)
|
217
|
(123.0)
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Reportable segments (see above)
|
221
|
723
|
(69.4)
|
|
(50)
|
217
|
(123.0)
|
|
|||||||
Significant liquidated damagesa
|
(1)
|
(11)
|
(90.9)
|
|
(1)
|
(11)
|
(90.9)
|
|
|||||||
Owned asset disposalb
|
(2)
|
(12)
|
(83.3)
|
|
(3)
|
(2)
|
50.0
|
|
|||||||
Currency impact
|
-
|
4
|
-
|
|
-
|
2
|
-
|
|
|||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
|||||||
Underlying revenue and underlying operating profit
|
218
|
704
|
(69.0)
|
|
(54)
|
206
|
(126.2)
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Owned, leased and managed lease included in the above
|
(112)
|
(378)
|
(70.4)
|
|
35
|
(14)
|
(350.0)
|
|
|||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
|||||||
Underlying fee business
|
106
|
326
|
(67.5)
|
|
(19)
|
192
|
(109.9)
|
|
|
Revenue
|
|
Operating profita
|
||||
|
|
|
|
|
|
|
|
|
2020
|
2019
|
%
|
|
2020
|
2019
|
%
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
Per Group financial statements
|
|
|
|
|
|
|
|
Reportable segments analysed as:
|
77
|
135
|
(43.0)
|
|
35
|
73
|
(52.1)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Fee business
|
77
|
135
|
(43.0)
|
|
35
|
73
|
(52.1)
|
|
|
|
|
|
|
|
|
Reportable segments (see above)
|
77
|
135
|
(43.0)
|
|
35
|
73
|
(52.1)
|
Currency impact
|
-
|
2
|
-
|
|
-
|
-
|
-
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Underlying revenue and underlying operating profit
|
77
|
137
|
(43.8)
|
|
35
|
73
|
(52.1)
|
|
Revenue
|
|
Operating profit
|
||||
|
|
|
|
|
|
|
|
|
2019
|
2018
|
%
|
|
2019
|
2018
|
%
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
Per Group income statement
|
4,627
|
4,337
|
6.7
|
|
630
|
582
|
8.2
|
System Fund
|
(1,373)
|
(1,233)
|
11.4
|
|
49
|
146
|
(66.4)
|
Reimbursement of costs
|
(1,171)
|
(1,171)
|
-
|
|
-
|
-
|
-
|
Operating exceptional items
|
-
|
-
|
-
|
|
186
|
104
|
78.8
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
2,083
|
1,933
|
7.8
|
|
865
|
832
|
4.0
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
Fee business
|
1,510
|
1,486
|
1.6
|
|
813
|
793
|
2.5
|
Owned, leased and managed lease
|
573
|
447
|
28.2
|
|
52
|
39
|
33.3
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
2,083
|
1,933
|
7.8
|
|
865
|
832
|
4.0
|
|
Revenue
|
|||
|
|
|
|
|
|
2019
|
2018
|
Change
|
%
|
|
$m
|
$m
|
$m
|
change
|
Underlying fee revenue
|
|
|
|
|
Reportable segments fee business (see above)
|
1,510
|
1,486
|
24
|
1.6
|
Significant liquidated damages
|
(11)
|
(13)
|
2
|
(15.4)
|
Acquisition of businesses
|
(14)
|
-
|
(14)
|
-
|
Currency impact
|
-
|
(17)
|
17
|
-
|
|
_____
|
_____
|
_____
|
_____
|
Underlying fee business
|
1,485
|
1,456
|
29
|
2.0
|
|
Revenue
|
Operating profit
|
|||||
|
|
|
|
|
|
|
|
|
2018
|
2017
|
%
|
|
2018
|
2017
|
%
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
Per Group income statement
|
4,337
|
4,075
|
6.4
|
|
582
|
744
|
(21.8)
|
System Fund
|
(1,233)
|
(1,242)
|
(0.7)
|
|
146
|
34
|
329.4
|
Reimbursement of costs
|
(1,171)
|
(1,103)
|
6.2
|
|
-
|
-
|
-
|
Operating exceptional items
|
-
|
-
|
-
|
|
104
|
(4)
|
(2,700.0)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
1,933
|
1,730
|
11.7
|
|
832
|
774
|
7.5
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
Fee business
|
1,486
|
1,379
|
7.8
|
|
793
|
731
|
8.5
|
Owned, leased and managed lease
|
447
|
351
|
27.4
|
|
39
|
43
|
(9.3)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
1,933
|
1,730
|
11.7
|
|
832
|
774
|
7.5
|
|
Revenue
|
|||
|
|
|
||
|
2018
|
2017
|
Change
|
%
|
|
$m
|
$m
|
$m
|
change
|
Underlying fee revenue
|
|
|
|
|
Reportable segments fee business (see above)
|
1,486
|
1,379
|
107
|
7.8
|
Significant liquidated damages
|
(13)
|
-
|
(13)
|
-
|
Current Year Acquisition of businesses
|
(1)
|
-
|
(1)
|
-
|
Currency impact
|
-
|
4
|
(4)
|
-
|
|
_____
|
_____
|
_____
|
_____
|
Underlying fee business
|
1,472
|
1,383
|
89
|
6.4
|
|
2020
|
2019
|
2018
|
2017
|
|
$m
|
$m
|
$m
|
$m
|
Revenue
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
823
|
1,510
|
1,486
|
1,379
|
Significant liquidated damages
|
(1)
|
(11)
|
(13)
|
-
|
Captive insurance company
|
(19)
|
(19)
|
(11)
|
(9)
|
|
_____
|
_____
|
_____
|
_____
|
|
803
|
1,480
|
1,462
|
1,370
|
Operating profit
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
278
|
813
|
793
|
731
|
Significant liquidated damages
|
(1)
|
(11)
|
(13)
|
-
|
Captive insurance company
|
(3)
|
(1)
|
(1)
|
-
|
|
_____
|
_____
|
_____
|
_____
|
|
274
|
801
|
779
|
731
|
|
|
|
|
|
Fee margin
|
34.1%
|
54.1%
|
53.3%
|
53.4%
|
|
12 months ended 31 December
|
|
|
|
|
|
2020
|
2019
|
|
$m
|
$m
|
|
|
|
Net cash from investing activities
|
(61)
|
(493)
|
Adjusted for:
|
|
|
Contract acquisition costs, net of
repayments
|
(64)
|
(61)
|
System
Fund depreciation and amortisationa
|
58
|
49
|
Acquisition of
businesses, net of cash acquired
|
-
|
292
|
Payment of contingent purchase
consideration
|
-
|
2
|
|
_____
|
_____
|
Net capital expenditure
|
(67)
|
(211)
|
|
_____
|
_____
|
Analysed as:
|
|
|
Capital expenditure: maintenance (including contract acquisition
costs, net of repayments of $64m (2019: $61m))
|
(107)
|
(147)
|
Capital expenditure: recyclable investments
|
17
|
(15)
|
Capital expenditure: System Fund capital investments
|
23
|
(49)
|
|
_____
|
_____
|
Net capital expenditure
|
(67)
|
(211)
|
|
_____
|
_____
|
|
12 months ended 31 December
|
|
|
|
|
|
2020
|
2019
|
|
$m
|
$m
|
|
|
|
Net capital expenditure
|
(67)
|
(211)
|
Add back:
|
|
|
Disposal receipts
|
(18)
|
(4)
|
Repayment of contract acquisition
costs
|
-
|
(1)
|
Distributions from associates and joint
ventures
|
(5)
|
-
|
System
Fund depreciation and amortisationa
|
(58)
|
(49)
|
|
_____
|
_____
|
Gross capital expenditure
|
(148)
|
(265)
|
|
_____
|
_____
|
Analysed as:
|
|
|
Capital
expenditure: maintenance
|
(107)
|
(148)
|
(including
contract acquisition costs of $64m (2019: $62m))
|
||
Capital
expenditure: recyclable investments
|
(6)
|
(19)
|
Capital
expenditure: System Fund investments
|
(35)
|
(98)
|
|
_____
|
_____
|
Gross capital expenditure
|
(148)
|
(265)
|
|
_____
|
_____
|
|
12 months ended 31 December
|
||||
|
|
|
|
|
|
|
2020
|
2019
|
2018
|
2017
|
2016a
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
Net cash from operating activities
|
137
|
653
|
709
|
616
|
710
|
Adjusted for:
|
|
|
|
|
|
Payment
of contingent purchase consideration
|
-
|
6
|
-
|
-
|
-
|
Principal
element of lease payments
|
(65)
|
(59)
|
(35)
|
(25)
|
-
|
Purchase
of shares by employee share trusts
|
-
|
(5)
|
(3)
|
(3)
|
(10)
|
Capital
expenditure: maintenance (excluding contract acquisition
costs)
|
(43)
|
(86)
|
(60)
|
(72)
|
(54)
|
Cash
receipt from renegotiation of long-term partnership
agreement
|
-
|
-
|
-
|
-
|
(95)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
Free cash flow
|
29
|
509
|
611
|
516
|
551
|
|
12 months ended 31 December
|
|
|
|
|
|
2020
|
2019
|
|
$m
|
$m
|
Net financial expenses
|
|
|
Financial income
|
4
|
6
|
Financial expenses
|
(144)
|
(121)
|
|
_____
|
_____
|
|
(140)
|
(115)
|
Adjusted for:
|
|
|
Interest payable on balances with the System Fund
|
(3)
|
(13)
|
Capitalised interest relating to System Fund assets
|
(1)
|
(5)
|
Exceptional financial expenses
|
14
|
-
|
|
_____
|
_____
|
|
10
|
(18)
|
|
|
|
Adjusted interest
|
(130)
|
(133)
|
|
12 months ended 31 December
|
||
|
|
|
|
|
2020a
|
2019a
|
2018
|
|
$m
|
$m
|
$m
|
Operating (loss)/profit
|
(153)
|
630
|
582
|
Add back:
|
|
|
|
System Fund result
|
102
|
49
|
146
|
Operating exceptional items
|
270
|
186
|
104
|
Depreciation and amortisation
|
110
|
116
|
115
|
|
_____
|
_____
|
_____
|
Adjusted EBITDA
|
329
|
981
|
947
|
|
2020
Year ended 31
December
|
2019
Year ended 31
December*
|
|
|
|
$m
|
$m
|
||
|
|
|
||
Revenue
from fee business
|
823
|
1,510
|
||
Revenue
from owned, leased and managed lease hotels
|
169
|
573
|
||
System
Fund revenues
|
765
|
1,373
|
||
Reimbursement
of costs
|
637
|
1,171
|
||
|
_____
|
_____
|
||
Total revenue (notes 3 and 4)
|
2,394
|
4,627
|
||
|
|
|
||
Cost of
sales
|
(354)
|
(782)
|
||
System
Fund expenses
|
(867)
|
(1,422)
|
||
Reimbursed
costs
|
(637)
|
(1,171)
|
||
Administrative
expenses
|
(267)
|
(385)
|
||
Share
of losses of associates and joint ventures
|
(14)
|
(3)
|
||
Other
operating income
|
16
|
21
|
||
Depreciation
and amortisation
|
(110)
|
(116)
|
||
Impairment
loss on financial assets
|
(88)
|
(8)
|
||
Other
impairment charges (note 5)
|
(226)
|
(131)
|
||
|
_____
|
_____
|
||
Operating (loss)/profit (note 3)
|
(153)
|
630
|
||
|
|
|
||
Operating
(loss)/profit analysed as:
|
|
|
||
Operating profit
before System Fund and exceptional items
|
219
|
865
|
||
System
Fund
|
(102)
|
(49)
|
||
Operating
exceptional items (note 5)
|
(270)
|
(186)
|
||
|
_____
|
_____
|
||
|
(153)
|
630
|
||
|
|
|
||
Financial
income
|
4
|
6
|
||
Financial
expenses
|
(144)
|
(121)
|
||
Fair
value gains on contingent purchase consideration
|
13
|
27
|
||
|
_____
|
_____
|
||
(Loss)/profit before tax
|
(280)
|
542
|
||
|
|
|
||
Tax
(note 6)
|
20
|
(156)
|
||
|
_____
|
_____
|
||
(Loss)/profit for the year from continuing operations
|
(260)
|
386
|
||
|
_____
|
_____
|
||
Attributable
to:
|
|
|
||
Equity
holders of the parent
|
(260)
|
385
|
||
Non-controlling
interest
|
-
|
1
|
||
|
_____
|
_____
|
||
|
(260)
|
386
|
||
|
_____
|
_____
|
||
|
|
|
||
(Loss)/earnings per ordinary share (note 7)
|
|
|
||
Continuing
and total operations:
|
|
|
||
|
Basic
|
(142.9)¢
|
210.4¢
|
|
|
Diluted
|
(142.9)¢
|
209.2¢
|
|
|
Adjusted
|
31.3¢
|
303.3¢
|
|
|
Adjusted
diluted
|
31.3¢
|
301.6¢
|
|
|
|
|
||
|
|
|
|
2020
Year ended
31 December
$m
|
2019
Year ended
31 December
$m
|
|
|
|
|
|
(Loss)/profit for the year
|
(260)
|
386
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
Items
that may be subsequently reclassified to profit or
loss:
|
|
|
|
(Losses)/gains on
cash flow hedges, net of related tax credit of $4m (2019:
$nil)
|
3
|
(34)
|
|
Costs
of hedging
|
(6)
|
(6)
|
|
Hedging
(gains)/losses reclassified to financial expenses
|
(13)
|
38
|
|
Exchange losses on
retranslation of foreign operations, net of related tax credit of
$4m (2019: $3m)
|
(85)
|
(39)
|
|
|
_____
|
_____
|
|
|
(101)
|
(41)
|
|
Items
that will not be reclassified to profit or loss:
|
|
|
|
(Losses)/gains on
equity instruments classified as fair value through
other comprehensive income, net of related tax credit of $4m
(2019: net of related tax charge of $2m)
|
(43)
|
10
|
|
Re-measurement
losses on defined benefit plans, net of related tax credit of $1m
(2019: $1m)
|
(7)
|
(6)
|
|
Tax
related to pension contributions
|
1
|
-
|
|
|
_____
|
_____
|
|
|
(49)
|
4
|
|
|
_____
|
_____
|
|
Total other comprehensive loss for the year
|
(150)
|
(37)
|
|
|
_____
|
_____
|
|
Total comprehensive (loss)/income for the year
|
(410)
|
349
|
|
|
_____
|
_____
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Equity
holders of the parent
|
(410)
|
348
|
|
Non-controlling
interest
|
-
|
1
|
|
_____
|
_____
|
|
|
(410)
|
349
|
|
|
_____
|
_____
|
|
Year ended 31 December 2020
|
||||
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
At
beginning of the year
|
151
|
(2,433)
|
809
|
8
|
(1,465)
|
Total
comprehensive loss for the year
|
-
|
(147)
|
(263)
|
-
|
(410)
|
Transfer
of treasury shares to employee share trusts
|
-
|
(14)
|
14
|
-
|
-
|
Release
of own shares by employee share trusts
|
-
|
18
|
(18)
|
-
|
-
|
Equity-settled
share-based cost, net of $3m reclassification to cash-settled
awards
|
-
|
-
|
27
|
-
|
27
|
Tax
related to share schemes
|
-
|
-
|
(1)
|
-
|
(1)
|
Exchange
adjustments
|
5
|
(5)
|
-
|
-
|
-
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
At end of the year
|
156
|
(2,581)
|
568
|
8
|
(1,849)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
Year ended 31 December 2019
|
||||
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
At
beginning of the year
|
146
|
(2,396)
|
1,111
|
8
|
(1,131)
|
Total
comprehensive income for the year
|
-
|
(31)
|
379
|
1
|
349
|
Transfer
of treasury shares to employee share trusts
|
-
|
(19)
|
19
|
-
|
-
|
Purchase
of own shares by employee share trusts
|
-
|
(5)
|
-
|
-
|
(5)
|
Release
of own shares by employee share trusts
|
-
|
23
|
(23)
|
-
|
-
|
Equity-settled
share-based cost
|
-
|
-
|
41
|
-
|
41
|
Tax
related to share schemes
|
-
|
-
|
4
|
-
|
4
|
Equity
dividends paid
|
-
|
-
|
(721)
|
(1)
|
(722)
|
Transaction
costs relating to shareholder returns
|
-
|
-
|
(1)
|
-
|
(1)
|
Exchange
adjustments
|
5
|
(5)
|
-
|
-
|
-
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
At end of the year
|
151
|
(2,433)
|
809
|
8
|
(1,465)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
*
|
Other
reserves comprise the capital redemption reserve, shares held by
employee share trusts, other reserves, fair value reserve, cash
flow hedging reserve and currency translation reserve.
|
|
|
2020
31 December
|
2019
31 December
Restated*
|
|
$m
|
$m
|
ASSETS
|
|
|
Goodwill
and other intangible assets
|
1,293
|
1,376
|
Property,
plant and equipment
|
201
|
309
|
Right-of-use
assets
|
303
|
490
|
Investment
in associates and joint ventures
|
81
|
110
|
Other
financial assets
|
168
|
284
|
Derivative
financial instruments
|
5
|
-
|
Deferred
compensation plan investments
|
236
|
218
|
Non-current
tax receivable
|
15
|
28
|
Deferred
tax assets
|
113
|
66
|
Contract
costs
|
70
|
67
|
Contract
assets
|
311
|
311
|
|
_______
|
_______
|
Total non-current assets
|
2,796
|
3,259
|
|
_______
|
_______
|
Inventories
|
5
|
6
|
Trade
and other receivables
|
514
|
666
|
Current
tax receivable
|
18
|
16
|
Other
financial assets
|
1
|
4
|
Derivative
financial instruments
|
-
|
1
|
Cash
and cash equivalents
|
1,675
|
195
|
Contract
costs
|
5
|
5
|
Contract
assets
|
25
|
23
|
|
_______
|
_______
|
Total current assets
|
2,243
|
916
|
Assets
classified as held for sale
|
-
|
19
|
|
_______
|
_______
|
Total assets
|
5,039
|
4,194
|
|
__
___
|
__
___
|
LIABILITIES
|
|
|
Loans
and other borrowings
|
(869)
|
(87)
|
Lease
liabilities
|
(34)
|
(65)
|
Trade
and other payables
|
(466)
|
(568)
|
Deferred
revenue
|
(452)
|
(555)
|
Provisions
|
(16)
|
(40)
|
Current
tax payable
|
(30)
|
(50)
|
|
_______
|
_______
|
Total current liabilities
|
(1,867)
|
(1,365)
|
|
_______
|
_______
|
Loans
and other borrowings
|
(2,898)
|
(2,078)
|
Lease
liabilities
|
(416)
|
(595)
|
Derivative
financial instruments
|
(18)
|
(20)
|
Retirement
benefit obligations
|
(103)
|
(96)
|
Deferred
compensation plan liabilities
|
(236)
|
(218)
|
Trade
and other payables
|
(94)
|
(116)
|
Deferred
revenue
|
(1,117)
|
(1,009)
|
Provisions
|
(44)
|
(22)
|
Deferred
tax liabilities
|
(95)
|
(118)
|
|
_______
|
_______
|
Total non-current liabilities
|
(5,021)
|
(4,272)
|
Liabilities
classified as held for sale
|
-
|
(22)
|
|
_______
|
_______
|
Total liabilities
|
(6,888)
|
(5,659)
|
|
_______
|
_______
|
Net liabilities
|
(1,849)
|
(1,465)
|
|
_______
|
________
|
EQUITY
|
|
|
IHG
shareholders’ equity
|
(1,857)
|
(1,473)
|
Non-controlling
interest
|
8
|
8
|
|
_______
|
_______
|
Total equity
|
(1,849)
|
(1,465)
|
|
_______
|
________
|
*
Restated for deferred compensation plan investments and liabilities
(see note 1).
|
|
|
|
2020
Year ended
31 December
|
2019
Year ended
31 December
|
|
$m
|
$m
|
|
|
|
(Loss)/profit for the year
|
(260)
|
386
|
Adjustments
reconciling (loss)/profit for the year to cash flow from operations
before contract acquisition costs (note 9)
|
632
|
582
|
|
_____
|
_____
|
Cash
flow from operations before contract acquisition costs
|
372
|
968
|
Contract
acquisition costs, net of repayments
|
(64)
|
(61)
|
|
_____
|
_____
|
Cash flow from operations
|
308
|
907
|
Interest
paid
|
(132)
|
(110)
|
Interest
received
|
2
|
3
|
Contingent
purchase consideration paid
|
-
|
(6)
|
Tax
paid on operating activities
|
(41)
|
(141)
|
|
_____
|
_____
|
Net cash from operating activities
|
137
|
653
|
|
_____
|
_____
|
Cash flow from investing activities
|
|
|
Purchase
of property, plant and equipment
|
(26)
|
(75)
|
Purchase
of intangible assets
|
(50)
|
(104)
|
Investment
in associates and joint ventures
|
(2)
|
(10)
|
Investment
in other financial assets
|
(5)
|
(9)
|
Acquisition
of businesses, net of cash acquired
|
-
|
(292)
|
Contingent
purchase consideration paid
|
-
|
(2)
|
Capitalised
interest paid
|
(1)
|
(5)
|
Distributions
from associates and joint ventures
|
5
|
-
|
Disposal
of hotel assets, net of costs and cash disposed
|
1
|
-
|
Repayments
of other financial assets
|
13
|
4
|
Disposal
of equity securities
|
4
|
-
|
|
_____
|
_____
|
Net cash from investing activities
|
(61)
|
(493)
|
|
_____
|
_____
|
Cash flow from financing activities
|
|
|
Purchase
of own shares by employee share trusts
|
-
|
(5)
|
Dividends
paid to shareholders (note 8)
|
-
|
(721)
|
Dividend
paid to non-controlling interest
|
-
|
(1)
|
Transaction
costs relating to shareholder returns
|
-
|
(1)
|
Issue
of long-term bonds, including effect of currency swaps
|
1,093
|
-
|
Issue
of commercial paper
|
738
|
-
|
Repayment
of long-term bonds
|
(290)
|
-
|
Principal
element of lease payments
|
(65)
|
(59)
|
(Decrease)/increase
in other borrowings
|
(125)
|
127
|
Proceeds
from currency swaps
|
3
|
-
|
|
_____
|
_____
|
Net cash from financing activities
|
1,354
|
(660)
|
|
_____
|
_____
|
Net movement in cash and cash equivalents, net of overdrafts, in
the year
|
1,430
|
(500)
|
Cash
and cash equivalents, net of overdrafts, at beginning of the
year
|
108
|
600
|
Exchange
rate effects
|
86
|
8
|
|
_____
|
_____
|
Cash and cash equivalents, net of overdrafts, at end of the
year
|
1,624
|
108
|
|
____
|
____
|
|
1.
|
Basis of preparation
|
|
The preliminary consolidated financial statements of
InterContinental Hotels Group PLC (the Group or IHG) for the year
ended 31 December 2020 have been prepared in accordance with
International Financial Reporting Standards (IFRSs) adopted
pursuant to Regulation (EC) No 1606/2002 as it applies in the
European Union and with international accounting standards as
applied in accordance with the provisions of the Companies Act
2006. The preliminary statement of results shown in this
announcement does not represent the statutory accounts of the Group
and its subsidiaries within the meaning of Section 435 of the
Companies Act 2006.
The
Group financial statements for the year ended 31 December 2020 were
approved by the Board on 22 February 2021. The auditor, Ernst &
Young LLP, has given an unqualified report in respect of those
Group financial statements with no reference to matters to which
the auditor drew attention by way of emphasis and no statement
under s498(2) or s498(3) of the Companies Act 2006. The Group
financial statements for the year ended 31 December 2020 will be
delivered to the Registrar of Companies in due course.
|
|
With
the exception of the accounting for a deferred compensation plan
and the presentational change to the Group income statement as
detailed below, financial information for the year ended 31
December 2019 has been extracted from the Group’s published
financial statements for that year which were prepared in
accordance with IFRSs as adopted by the European Union and which
have been filed with the Registrar of Companies. The
auditor’s report on those financial statements was
unqualified with no reference to matters to which the auditor drew
attention by way of emphasis and no statement under s498(2) or
s498(3) of the Companies Act 2006.
The Group operates a deferred compensation plan in the US which
allows certain employees to make additional provision for
retirement, through the deferral of salary with matching company
contributions within a dedicated trust. The Group has reassessed
the accounting judgement for this plan which was previously not
consolidated based on a control analysis as disclosed in the
Group’s prior year financial statements. The Group has
revisited the judgement regarding the extent of its control over
the plan by placing more weighting on some of the Group’s
legal rights and, giving consideration to both IFRS 10
‘Consolidated Financial Statements’ and IAS 19
‘Employee Benefits’, the Group has changed its
accounting policy and has recognised the related assets and
liabilities on the balance sheet. The Group’s obligation to
employees under the plan is limited to the fair value of assets
held by the plan and so the assets and liabilities are valued at
the same amount, with no net impact on profit or loss. The effect
on the financial statements is the recognition and presentation of
deferred compensation plan investments of $236m (2019: $218m) and
matching deferred compensation plan liabilities. There is no net
impact on the comparative income statements, nor would there have
been any net impact on the Group income statement in earlier
periods.
The presentation of the Group income statement has been amended to
include impairment loss on financial assets as a separate line item
reflecting the increased size of such losses and therefore
providing more reliable and relevant information for the users of
the financial statements. Comparatives have been re-presented on a
consistent basis.
Going concern
The impact of the Covid-19 pandemic on the hospitality industry has
been severe. Through 2020, many of the Group’s hotels were
temporarily closed, while others experienced historically low
levels of occupancy and room rates.
The Group’s fee-based model and wide geographic spread mean
that it is well placed to manage through these uncertain times. The
Group has taken various actions to manage cash outflows, including
a reduction in staff costs, professional fees, capital expenditure
and the suspension of the ordinary dividend. Overall fee business
costs have been reduced by $150m, and capital expenditure by over
$100m on prior year levels. The Group has also taken actions to
reduce costs for owners and support them in managing their cash
flows. Combined, these actions resulted in the Group mitigating the
significant reduction in fee revenue and System Fund assessment
fees to generate a free cash flow in the year of $29m.
The Group has taken steps to strengthen its liquidity, including
agreeing amendments of existing covenants on its syndicated and
bilateral revolving credit facilities (‘the bank
facilities’) until December 2022 and issuing £600m commercial paper under the
UK’s Covid Corporate Financing Facility (‘CCFF’)
which is repayable in March 2021. The covenant amendment agreements
introduce a minimum liquidity covenant of $400m tested at half year
and full year up to and including 31 December 2022. Minimum
liquidity includes undrawn amounts from the bank facilities. The
leverage ratio and interest cover covenants have been waived at
June 2021 and December 2021. The covenants at June 2022 have been
amended to require less than 7.5x for the leverage ratio and
greater than 1.5x for interest cover (see note 10). The maturities
of the bank facilities have also been extended to September
2023.
In October 2020 the Group issued two new bonds, a four-year
€500m 1.625% bond and an eight-year £400m 3.375% bond.
At the same time, a tender offer was completed on the £400m
3.875% November 2022 bond and £227m was repaid early from the
new bond proceeds. These actions have increased the Group’s
liquidity, extended its debt maturity profile and reduced the
Group’s overall average cost of bond financing.
As at 31 December 2020 the Group had total liquidity of $2,925m,
comprising $1,350m of undrawn bank facilities and $1,575m of cash
and cash equivalents (net of overdrafts and restricted
cash).
A period of 18 months has been used, from 1 January 2021 to 30 June
2022, to complete the going concern assessment. There remains
unusually limited visibility on the pace and scale of market
recovery and therefore there are a wide range of possible planning
scenarios over the going concern period. In adopting the going
concern basis for preparing these financial statements the
Directors have considered a scenario (the ‘Base Case’)
which is based on a gradual improvement in demand during 2021 as
vaccines become more widely available, and a steady but gradual
improvement to the end of 2023 by when RevPAR is expected to reach
90% of 2019 levels. Also, it has been assumed that the CCFF is
repaid at maturity in March 2021. There are no other debt
maturities in the period under consideration. The assumptions
applied in the going concern assessment are consistent with those
used for Group planning purposes and for impairment testing. Under
this scenario, the Group is forecast to generate positive cash
flows over the 18-month period of assessment and the bank
facilities remain undrawn. The principal risks and uncertainties
which could be applicable have been considered and are able to be
absorbed within the $400m liquidity covenant and amended covenant
requirements.
The Directors have also reviewed a ‘Downside Case’
scenario which assumes a slower impact from vaccine rollout and is
based on the performance of the second half of 2020 continuing
throughout 2021, with the recovery to 2019 levels starting in 2022.
Under this scenario, the Group is also forecast to generate a
positive cash flow over the 18-month period and the bank facilities
remain undrawn. The Downside Case was used to set the amended
covenants and there is limited headroom to the covenants at 30 June
2022 to absorb additional risks. However, based on experience in
2020, the Directors reviewed a number of actions, such as
reductions in bonuses and other discretionary spend, creating
substantial additional headroom. After these actions are taken, the
principal risks and uncertainties which could be applicable can be
absorbed within the amended covenant requirements.
In the Downside Case, the Group has substantial levels of existing
cash reserves available (approximately $800m at 30 June 2022) and
is not expected to draw on the bank facilities. These cash reserves
would increase after the additional actions are taken as described
above. The Directors reviewed a reverse stress test scenario to
determine how much additional RevPAR downside could be absorbed
before utilisation of the bank facilities would be required. The
Directors concluded that the outcome of this reverse stress test
showed that it was very unlikely the bank facilities would need to
be drawn.
The leverage and interest cover covenant tests at 30 June 2022, the
last day of the assessment period, have been considered as part of
the Base Case and Downside Case scenarios. However, as the bank
facilities are unlikely to be drawn even in a scenario
significantly worse than the downside scenario, the Group does not
need to rely on the additional liquidity provided by the bank
facilities to remain a going concern. This means that in the event
the covenant test was failed, the bank facilities could be
cancelled by the lenders but it would not trigger a repayment
demand or create a cross-default risk. In the event that a further
covenant amendment was required, the Directors believe it is
reasonable to expect that such an amendment could be obtained based
on prior experience in negotiating the 2020 amendments. The Group
also has alternative options to manage this risk including raising
additional funding in the capital markets.
Having reviewed these scenarios, the Directors have a reasonable
expectation that the Group has sufficient resources to continue
operating until at least 30 June 2022 and there are no material
uncertainties that may cast doubt on the Group’s going
concern status. Accordingly, they continue to adopt the
going concern basis in preparing the financial
statements.
|
2.
|
Exchange
rates
|
|
The
results of operations have been translated into US dollars at the
average rates of exchange for the year. In the case of sterling,
the translation rate is $1 = £0.78 (2019: $1 = £0.78). In
the case of the euro, the translation rate is $1 = €0.88
(2019: $1 = €0.89).
Assets
and liabilities have been translated into US dollars at the rates
of exchange on the last day of the year. In the case of sterling,
the translation rate is $1 = £0.73 (2019: $1 = £0.76). In
the case of the euro, the translation rate is $1 = €0.81
(2019: $1 = €0.89).
|
3.
|
Segmental information
|
|
|
|
Revenue
|
|
|
|
|
2020
|
2019
|
|
|
$m
|
$m
|
|
|
|
|
|
Americas
|
512
|
1,040
|
|
EMEAA
|
221
|
723
|
|
Greater
China
|
77
|
135
|
|
Central
|
182
|
185
|
|
|
_____
|
_____
|
|
Revenue from reportable segments
|
992
|
2,083
|
|
System
Fund revenues
|
765
|
1,373
|
|
Reimbursement
of costs
|
637
|
1,171
|
|
|
_____
|
_____
|
|
Total revenue
|
2,394
|
4,627
|
|
|
_____
|
_____
|
|
|
|
|
|
|
|
|
||
|
(Loss)/profit
|
2020
$m
|
2019
$m
|
|
|
|
|
|
Americas
|
296
|
700
|
|
EMEAA
|
(50)
|
217
|
|
Greater
China
|
35
|
73
|
|
Central
|
(62)
|
(125)
|
|
|
_____
|
_____
|
|
Operating profit from reportable segments
|
219
|
865
|
|
System
Fund
|
(102)
|
(49)
|
|
Operating
exceptional items (note 5)
|
(270)
|
(186)
|
|
|
_____
|
_____
|
|
Operating (loss)/profit
|
(153)
|
630
|
|
|
|
|
|
Net
financial expenses
|
(140)
|
(115)
|
|
Fair
value gains on contingent purchase consideration
|
13
|
27
|
|
|
_____
|
_____
|
|
(Loss)/profit before tax
|
(280)
|
542
|
|
|
_____
|
_____
|
|
|
|
|
|
All
items above relate to continuing operations.
|
||
|
In
2020, operating loss includes $88m impairment losses on financial
assets. Of this, $40m relates to trade and other receivables and
$48m is classified as exceptional and relates to trade deposits and
loans (see note 5).
|
4.
|
Disaggregation of revenue
|
|
The following tables present Group revenues disaggregated by type
of revenue stream and by reportable segment:
|
Year ended 31 December 2020
|
|
||||
|
Americas
$m
|
EMEAA
$m
|
Greater China
$m
|
Central
$m
|
Total
$m
|
|
|
|
|
|
|
Franchise
and base management fees
|
452
|
93
|
61
|
-
|
606
|
Incentive
management fees
|
5
|
14
|
16
|
-
|
35
|
Central
revenue
|
-
|
-
|
-
|
182
|
182
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
Revenue
from fee business
|
457
|
107
|
77
|
182
|
823
|
Revenue
from owned, leased and managed lease hotels
|
55
|
114
|
-
|
-
|
169
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
512
|
221
|
77
|
182
|
992
|
|
_____
|
_____
|
_____
|
_____
|
|
System
Fund revenues
|
|
|
|
|
765
|
Reimbursement
of costs
|
|
|
|
|
637
|
|
|
|
|
|
_____
|
Total revenue
|
|
|
|
|
2,394
|
|
|
|
|
|
_____
|
Following
communication with the IHG Owners Association, fees and expenses
associated with the InterContinental Ambassador programme (the
InterContinental Hotels & Resorts paid-for loyalty programme)
previously reported within Central revenue have been moved into the
System Fund to align with the treatment of IHG’s other brand
loyalty programmes. Revenue arising from the licence of
intellectual property under co-brand credit card agreements
previously recorded within the System Fund is now recorded within
Central revenue. This change is effective from 1 January 2020. For
the year ended 31 December 2020, this change resulted in an
increase of $20m to Central revenue and $21m to operating profit
from reportable segments, and an equivalent reduction to System
Fund revenues and increase to System Fund operating loss. Had this
arrangement existed in the prior year, Central revenue and
operating profit in 2019 would have been $18m and $22m higher
respectively; System Fund revenues would have reduced and System
Fund operating loss would have increased by the same
amounts.
|
Year ended 31 December 2019
|
|
|
|
|
|
|||||
|
Americas
$m
|
EMEAA
$m
|
Greater China
$m
|
Central
$m
|
Total
$m
|
|
||||
|
|
|
|
|
|
|
||||
Franchise
and base management fees
|
840
|
247
|
87
|
-
|
1,174
|
|
||||
Incentive
management fees
|
13
|
90
|
48
|
-
|
151
|
|
||||
Central
revenue
|
-
|
-
|
-
|
185
|
185
|
|
||||
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
||||
Revenue
from fee business
|
853
|
337
|
135
|
185
|
1,510
|
|
||||
Revenue
from owned, leased and managed lease hotels
|
187
|
386
|
-
|
-
|
573
|
|
||||
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
||||
|
1,040
|
723
|
135
|
185
|
2,083
|
|
||||
|
_____
|
_____
|
_____
|
_____
|
|
|
||||
System
Fund revenues
|
|
|
|
|
1,373
|
|
||||
Reimbursement
of costs
|
|
|
|
|
1,171
|
|
||||
|
|
|
|
|
_____
|
|
||||
Total revenue
|
|
|
|
|
4,627
|
|
||||
|
|
|
|
|
_____
|
|
|
Contract assets
Contract assets are recorded in respect of key money payments; the
difference, if any, between the initial face and market value of
loans made to owners; and the value of payments under performance
guarantees.
At 31 December 2020, the amount of performance guarantees included
within trade and other payables was $1m (2019: $2m) and the maximum
payout remaining under such guarantees was $72m (2019: $85m). In
estimating amounts due under performance guarantees, the Group has
considered ‘force majeure’ provisions within its
management agreements.
|
5.
|
Exceptional items
The
Group discloses certain financial information both including and
excluding exceptional items. The presentation of information
excluding exceptional items allows a better understanding of the
underlying trading performance of the Group and provides
consistency with the Group’s internal management reporting.
Exceptional items are identified by virtue of their size, nature,
or incidence so as to facilitate comparison with prior periods and
to assess underlying trends in the financial performance of the
Group and its reportable segments. In determining whether an event
or transaction is exceptional, management considers quantitative as
well as qualitative factors.
In the
Group’s interim financial statements as at 30 June 2020,
exceptional items included an impairment of trade receivables of
$22m which had been determined to be directly as a result of
Covid-19. The subsequent improvement in cash collection and the
considerations required to identify whether subsequent expected
credit losses over the extended period of the pandemic are due to
Covid-19 have resulted in none of the full year $40m impairment of
trade receivables being presented within exceptional
items.
|
||||
|
|
2020
$m
|
2019
$m
|
||
|
Operating exceptional items:
|
|
|
||
|
|
Cost of
sales:
|
|
|
|
|
|
Derecognition
of right-of-use assets and lease liabilities (a)
|
22
|
-
|
|
|
|
Gain
on lease termination (b)
|
30
|
-
|
|
|
|
Provision
for onerous contractual expenditure (c)
|
(10)
|
-
|
|
|
|
Reorganisation
costs (d)
|
(8)
|
-
|
|
|
|
|
_______
|
_______
|
|
|
|
|
34
|
-
|
|
|
|
Administrative
expenses:
|
|
|
|
|
|
Reorganisation
costs (d)
|
(19)
|
(20)
|
|
|
|
Acquisition
and integration costs (e)
|
(6)
|
(7)
|
|
|
|
Litigation
(f)
|
(5)
|
(28)
|
|
|
|
|
_______
|
_______
|
|
|
|
|
(30)
|
(55)
|
|
|
|
|
|
|
|
|
|
Impairment
loss on financial assets (g)
|
(48)
|
-
|
|
|
|
|
|
|
|
|
|
Other
impairment charges:
|
|
|
|
|
|
Goodwill
(g)
|
-
|
(49)
|
|
|
|
Management
agreements (g)
|
(48)
|
(50)
|
|
|
|
Property,
plant and equipment (g)
|
(90)
|
-
|
|
|
|
Right-of-use
assets (g)
|
(16)
|
(32)
|
|
|
|
Associates
(g)
|
(19)
|
-
|
|
|
|
Contract
assets (g)
|
(53)
|
-
|
|
|
|
|
_____
|
_____
|
|
|
|
|
(226)
|
(131)
|
|
|
|
|
_____
|
_____
|
|
|
Operating exceptional items
|
(270)
|
(186)
|
||
|
|
|
|
||
|
Financial expenses (h)
|
(14)
|
-
|
||
|
|
|
|
||
|
Fair value gains on contingent purchase consideration
(i)
|
21
|
38
|
||
|
|
|
_____
|
_____
|
|
|
Exceptional items before tax
|
(263)
|
(148)
|
||
|
|
|
_____
|
_____
|
|
|
Tax:
|
|
|
||
|
|
Tax on
exceptional items (j)
|
52
|
20
|
|
|
|
|
_____
|
_____
|
|
|
|
(a) Derecognition of right-of-use assets and lease
liabilities
The UK
portfolio leases and two German hotel leases contain guarantees
that the Group will fund any shortfalls in lease payments up to an
annual and cumulative cap. Previously the minimum
‘in-substance fixed’ lease payments were estimated to
be equal to the cumulative amount guaranteed under the lease
agreements and therefore a right-of-use asset and corresponding
lease liability equal to the guaranteed amount were recognised. The
unprecedented impact of Covid-19 and subsequent restrictions have
resulted in a reassessment of the estimate of ‘in-substance
fixed’ lease payments, as there is no floor to the rent
reductions applicable under these leases, and the circumstances in
which no rent would be payable are no longer considered to be
remote.
As a
result, the right-of-use assets ($49m) and lease liabilities ($71m)
associated with these leases have been derecognised as they are now
considered to be fully variable. This resulted in a net gain of
$22m.
(b) Gain on lease termination
On 14
December 2020, as a consequence of the termination of a portfolio
of management agreements with Services Properties Trust
(‘SVC’), the lease of InterContinental San Juan was
terminated. The right-of-use assets ($60m) and lease liabilities
($90m) associated with this hotel have therefore been derecognised,
resulting in a net gain of $30m.
(c) Provision for onerous capital expenditure
Under
the terms of the UK portfolio leases, the Group is committed to
certain items of contractual expenditure. A $10m provision was
recognised to the extent the costs of the remaining contractual
expenditure exceeded the future economic benefits expected to be
received under the leases.
(d) Reorganisation costs
In
2020, reorganisation costs relate to the UK portfolio, other owned
and leased hotels and a corporate reorganisation completed in the
year reflecting the reassessment of near-term priorities and the
resources needed to support reduced levels of demand. An additional
$20m relating to the corporate restructuring was charged to the
System Fund.
In
2019, related to a comprehensive efficiency programme to fund a
series of new strategic initiatives to drive an acceleration in
IHG’s future growth. The programme was completed in 2019 and
no further restructuring costs related to this programme were
incurred in 2020. The 2019 cost included consultancy fees of $6m
and severance costs of $8m. An additional $28m was charged to the
System Fund.
|
|
(e) Acquisition and integration costs
In
2019, primarily related to the acquisition of Six Senses and in
2020, relates to the integration of that business into the
operations of the Group.
|
|
(f) Litigation
In
2020, relates to the cost of settlement of $14m agreed in the year
in respect of a lawsuit in the EMEAA region, offset primarily by
the partial release of the 2019 provision related to a lawsuit in
the Americas region which has been settled in the year. In 2019,
primarily represented management’s best estimate of the
settlement in respect of the Americas lawsuit, together with the
cost of an arbitration award made against the Group in the EMEAA
region.
|
|
(g) Impairment of non-current assets
|
|
Discounted
cash flow techniques were used in most cases to calculate the
recoverable amount of non-current assets, and in certain cases
external valuers were engaged to assess fair value less costs of
disposal.
Where
internal valuations were performed, management used economic and
travel demand forecasts from Oxford Economics and Tourism
Economics, respectively. These were overlaid with the Group’s
expectation of how the pace of a vaccine rollout will result in an
industry recovery, together with management’s experience of
recovery periods following previous crises. Management assumed that
vaccines will become widely available during 2021, which will begin
to have a positive impact on travel in the second half of the year.
Further adjustments were made to reflect the Group’s
performance relative to the industry. Group RevPAR is forecast to
recover to 90% of 2019 levels by the end of 2023, and to 100% by
2025. The five-year recovery period from 2021 assumes that
corporate travel recovers slowly as businesses control costs in the
wake of the pandemic and that international travel and groups
business takes longer to recover due to ongoing social distancing
measures. The projections used are consistent with those used for
Group planning purposes and for going concern and viability
assessments. Cash flows beyond the five-year period are
extrapolated using terminal growth rates that do not exceed the
average long-term growth rates for the relevant
markets.
There
was no impairment of goodwill and indefinite life brands in
2020.
Impairment
of management agreements includes $41m relating to the Six Senses
management agreements acquired in 2019.
Impairment
of property, plant and equipment includes $50m relating to the UK
portfolio and $35m relating to three premium-branded hotels in
North America.
Impairment
of right-of-use assets includes $11m relating to the US corporate
headquarters (see below) and $5m relating to a hotel in the EMEAA
region.
Impairment
of associates includes $13m relating
to the Barclay associate which is presented net of a $4m fair value
gain on a put option over part of the Group’s investment, due
to the interaction between the value of the option and the value of
the associate investment. The investment value and option value are
presented separately in the Group statement of financial position;
the put option value of $4m is presented within derivative
financial instruments. The remaining impairment relates to three
other associate investments in the Americas region.
As a
response to workplace efficiency studies conducted in 2019, the
reorganisation completed in 2020 and the anticipated impact of
Covid-19 on working habits, in 2020 management approved a decision
to sublet, and commenced marketing of, approximately half of the
space in the Group’s US corporate headquarters. The corporate
workforce will be consolidated in the retained space and the area
to be sublet is expected to be vacated in the first half of 2021.
The sublease rentals are expected to be lower than the head lease
rentals which, together with the impact of the expected time taken
and costs incurred to sublet the space, result in the recoverable
value of the assets being significantly below carrying value. This
has resulted in a total impairment charge to right-of use assets
and property, plant and equipment of $50m. $37m of this impairment
charge was borne by the System Fund in line with existing
principles for cost allocation relating to this
facility.
Impairment
of trade deposits and loans (included within other financial assets
on the Group statement of financial position), and of contract
assets, primarily relates to deposits of $66m made to SVC in
connection with a portfolio of management agreements. The deposits
were non-interest-bearing and repayable at the end of the
management agreement terms and were therefore previously held at a
discounted value, with the balance on initial recognition recorded
as a contract asset. As a result of Covid-19 the deposit was used
in the first six months of 2020 to fund owner returns and was not
expected to be recoverable. The deposit ($33m) and associated
contract asset ($33m) were therefore impaired in full at 30 June
2020. The management agreements were subsequently terminated on 30
November. A further $20m impairment of contract assets relates to
the Americas ($9m) and EMEAA ($11m) regions.
|
|
In
2019, the impairments of goodwill and right-of-use assets related
to the UK portfolio. The impairment of management agreements
related to Kimpton following a re-assessment of their recoverable
amount based on value in use calculations.
|
|
(h) Financial expenses
In
October 2020 management undertook actions to strengthen liquidity
and extend the maturity profile of the Group’s debt. The
Group issued a tender offer for its £400m 3.875% 2022 bonds
resulting in a repayment of £227m, and concurrently issued
€500m 1.625% 2024 bonds and £400m 3.375% 2028 bonds. The
exceptional charge includes the premium on repayment and associated
write-off of fees and discount.
(i) Fair value gains on contingent purchase
consideration
Contingent
purchase consideration relates to the UK portfolio and comprises
the present value of the above-market element of the expected lease
payments to the lessor. The above-market assessment is determined
by comparing the expected lease payments as a percentage of
forecast hotel operating profit (before depreciation and rent) with
market metrics, on a hotel by hotel basis. A fair value gain of
$21m was recognised in the period (2019: $38m), arising from a
reduction in expected future rentals payable such that there is no
remaining above-market element.
|
|
(j) Tax on exceptional items
The tax
impacts of the exceptional items are shown in the table
below:
|
|||||
|
|
2020
|
2020
|
|
2019
|
2019
|
|
Current
Tax
|
Deferred
Tax
|
|
Current
Tax
|
Deferred
Tax
|
|
|
$m
|
$m
|
|
$m
|
$m
|
|
Derecognition
of right-of-use assets and lease liabilities
|
-
|
(4)
|
|
-
|
-
|
|
Provision
for onerous contractual expenditure
|
-
|
2
|
|
-
|
-
|
|
Reorganisation
costs
|
3
|
2
|
|
4
|
-
|
|
Acquisition
and integration costs
|
1
|
-
|
|
-
|
-
|
|
Litigation
|
-
|
-
|
|
-
|
6
|
|
Impairment
of financial assets
|
4
|
2
|
|
-
|
-
|
|
Other
impairment charges
|
6
|
37
|
|
-
|
18
|
|
Financial
expenses
|
-
|
3
|
|
-
|
-
|
|
Fair
value gains on contingent purchase consideration
|
-
|
(4)
|
|
-
|
(6)
|
|
Adjustments
in respect of prior years
|
-
|
-
|
|
-
|
(2)
|
|
|
______
|
______
|
|
______
|
______
|
|
|
14
|
38
|
|
4
|
16
|
|
|
_____
|
______
|
|
_____
|
______
|
|
Total
current and deferred tax
|
|
52
|
|
|
20
|
|
|
|
_____
|
|
|
_____
|
|
|
|
|
|
|
|
|
|
6.
|
Tax
|
|
The tax
credit/charge on profit from continuing operations, excluding the
impact of exceptional items (note 5) and System Fund, has been
calculated using a tax rate of 38% (2019: 24%).
|
|
Year ended 31 December
|
2020
|
2020
|
2020
|
2019
|
2019
|
2019
|
|
|
|
Profit/(loss)
$m
|
Tax
$m
|
Tax rate
|
Profit/(loss)
$m
|
Tax
$m
|
Tax rate
|
|
|
|
|
|
|
|
|
|
|
|
Before
exceptional items and System Fund
|
85
|
(32)
|
38%
|
739
|
(176)
|
24%
|
|
|
System
Fund
|
(102)
|
-
|
|
(49)
|
-
|
|
|
|
Exceptional
items (note 5)
|
(263)
|
52
|
|
(148)
|
20
|
|
|
|
|
_____
|
_____
|
|
_____
|
_____
|
|
|
|
|
(280)
|
20
|
|
542
|
(156)
|
|
|
|
|
_____
|
_____
|
|
_____
|
_____
|
|
|
|
Analysed
as:
|
|
|
|
|
|
|
|
|
|
UK
tax
|
|
36
|
|
|
(17)
|
|
|
|
Foreign
tax
|
|
(16)
|
|
|
(139)
|
|
|
|
|
_____
|
|
|
_____
|
|
|
|
|
|
20
|
|
|
(156)
|
|
|
|
|
|
_____
|
|
|
_____
|
|
7.
|
(Loss)/earnings per ordinary share
|
|
Continuing and total operations
|
2020
|
2019
|
|
Basic (loss)/earnings per ordinary share
|
|
|
|
(Loss)/profit
available for equity holders ($m)
|
(260)
|
385
|
|
Basic
weighted average number of ordinary shares (millions)
|
182
|
183
|
|
Basic
(loss)/earnings per ordinary share (cents)
|
(142.9)
|
210.4
|
|
|
_____
|
_____
|
|
Diluted (loss)/earnings per ordinary share
|
|
|
|
(Loss)/profit
available for equity holders ($m)
|
(260)
|
385
|
|
Diluted
weighted average number of ordinary shares (millions)
|
182
|
184
|
|
Diluted
(loss)/earnings per ordinary share (cents)
|
(142.9)
|
209.2
|
|
|
_____
|
_____
|
|
|
|
|
|
Adjusted earnings per ordinary share*
|
|
|
|
(Loss)/profit
available for equity holders ($m)
|
(260)
|
385
|
|
Adjusting
items:
|
|
|
|
System
Fund revenues and expenses ($m)
|
102
|
49
|
|
Interest
attributable to the System Fund ($m)
|
(4)
|
(18)
|
|
Operating
exceptional items ($m) (note 5)
|
270
|
186
|
|
Exceptional
financial expenses ($m) (note 5)
|
14
|
-
|
|
Change
in fair value of contingent purchase consideration
($m)
|
(13)
|
(27)
|
|
Tax on
exceptional items ($m) (note 5)
|
(52)
|
(20)
|
|
|
_____
|
_____
|
|
Adjusted
earnings ($m)
|
57
|
555
|
|
|
_____
|
_____
|
|
|
|
|
|
Basic
weighted average number of ordinary shares (millions)
|
182
|
183
|
|
Adjusted
earnings per ordinary share (cents)
|
31.3
|
303.3
|
|
|
_____
|
_____
|
|
Adjusted diluted earnings per ordinary share
|
|
|
|
Adjusted
earnings ($m)
|
57
|
555
|
|
Diluted
weighted average number of ordinary shares (millions)
|
182
|
184
|
|
Adjusted
diluted earnings per ordinary share (cents)
|
31.3
|
301.6
|
|
|
_____
|
_____
|
|
|
|
|
|
* See
the Use of Non-GAAP measures section in the Business
Review.
|
|
|
|
The
diluted weighted average number of ordinary shares is calculated
as:
|
||
|
|
2020
millions
|
2019
millions
|
|
Basic
weighted average number of ordinary shares
|
182
|
183
|
|
Dilutive
potential ordinary shares
|
-
|
1
|
|
|
_____
|
_____
|
|
|
182
|
184
|
|
|
_____
|
_____
|
|
|
|
|
|
The
effect of the notional exercise of outstanding ordinary share
awards is anti-dilutive in 2020 and therefore has not been included
in the diluted earnings per share calculation.
|
8.
|
Dividends
|
|||||
|
|
2020
cents per share
|
2019
cents per share
|
2020
$m
|
2019
$m
|
|
|
Paid
during the year:
|
|
|
|
|
|
|
|
Final
(declared for previous year)
|
-
|
78.1
|
-
|
139
|
|
|
Interim
|
-
|
39.9
|
-
|
72
|
|
|
Special
|
-
|
262.1
|
-
|
510
|
|
|
_____
|
______
|
_____
|
_____
|
|
|
|
-
|
380.1
|
-
|
721
|
|
|
|
_____
|
______
|
_____
|
_____
|
|
|
|
|
|
|
|
|
|
On 20
March 2020, the Board withdrew its recommendation of a final
dividend in respect of 2019 of 85.9¢ per share, a payment of
which would have had a cash outflow of approximately $150m in the
first half of 2020. A final dividend in respect of 2020 is not
proposed and there was no interim dividend for the year. The Board
will consider future dividends once visibility of the pace and
scale of market recovery has improved.
|
9.
|
Reconciliation of (loss)/profit for the year to cash flow from
operations before contract acquisition costs
|
|||
|
|
2020
|
2019*
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
(Loss)/profit
for the year
|
(260)
|
386
|
|
|
Adjustments
for:
|
|
|
|
|
Net
financial expenses
|
140
|
115
|
|
|
Fair
value gains on contingent purchase consideration
|
(13)
|
(27)
|
|
|
Tax
(credit)/charge
|
(20)
|
156
|
|
|
Depreciation and
amortisation
|
110
|
116
|
|
|
System
Fund depreciation and amortisation
|
62
|
54
|
|
|
Impairment loss on
financial assets
|
88
|
8
|
|
|
System
Fund impairment loss on financial assets
|
24
|
12
|
|
|
Other
impairment charges (note 5)
|
226
|
131
|
|
|
System
Fund other impairment charges
|
41
|
-
|
|
|
Other
operating exceptional items (note 5)
|
(4)
|
55
|
|
|
System
Fund other operating exceptional items (note 5)
|
20
|
28
|
|
|
Share
of losses of associates and joint ventures
|
14
|
3
|
|
|
Share-based
payments cost
|
32
|
42
|
|
|
Dividends from
associates and joint ventures
|
2
|
7
|
|
|
Increase in
contract costs
|
(2)
|
(11)
|
|
|
Increase in
deferred revenue
|
1
|
57
|
|
|
Utilisation of
provisions, net of charge, excluding exceptional items
|
16
|
7
|
|
|
Retirement benefit
contributions, net of costs
|
(3)
|
(3)
|
|
|
Changes
in net working capital
|
(30)
|
(133)
|
|
|
Cash
flows relating to exceptional items
|
(87)
|
(55)
|
|
|
Contract assets
deduction in revenue
|
25
|
21
|
|
|
Other
movements in contract assets
|
(7)
|
(1)
|
|
|
Other
items
|
(3)
|
-
|
|
|
|
_____
|
_____
|
|
|
Total
adjustments
|
632
|
582
|
|
|
|
_____
|
_____
|
|
|
Cash flow from operations before contract acquisition
costs
|
372
|
968
|
|
|
|
_____
|
_____
|
|
* Amended for
presentational changes (see note 1).
|
|
10.
|
Net debt
|
||
|
|
2020
|
2019
|
|
|
$m
|
$m
|
|
|
|
|
|
Cash
and cash equivalents
|
1,675
|
195
|
|
Loans
and other borrowings – current
|
(869)
|
(87)
|
|
Loans
and other borrowings – non-current
|
(2,898)
|
(2,078)
|
|
Lease
liabilities – current
|
(34)
|
(65)
|
|
Lease
liabilities – non-current
|
(416)
|
(595)
|
|
Lease
liabilities – classified as held for sale
|
-
|
(20)
|
|
Derivative
financial instruments hedging debt values
|
13
|
(15)
|
|
|
______
|
______
|
|
Net debt*
|
(2,529)
|
(2,665)
|
|
|
______
|
______
|
|
|
|
|
|
* See
the Use of Non-GAAP measures section in the Business
Review.
|
|
|
|
In the
Group statement of cash flows, cash and cash equivalents is
presented net of $51m bank overdrafts (2019: $87m).
|
|
Cash
and cash equivalents includes $5m (2019: $6m) restricted for use on
capital expenditure under hotel lease agreements and therefore not
available for wider use by the Group. An additional $44m (2019:
$16m) is held within countries from which funds are not currently
able to be repatriated to the Group’s central treasury
company.
Current
loans and other borrowings includes £600m ($818m) commercial
paper issued under the UK Government’s CCFF, maturing on 16
March 2021.
|
|
The
Group’s $1,275m revolving syndicated bank facility and $75m
revolving bilateral facility were both undrawn at 31 December 2020
(2019: $125m drawn), providing available committed facilities of
$1,350m and total liquidity of $2,925m. During 2020, the maturities
of both facilities have been extended for 18 months to September
2023.
|
|
The
Syndicated and Bilateral Facilities contain two financial
covenants: interest cover and a leverage ratio. Covenants are
monitored on a ‘frozen GAAP’ basis excluding the impact
of IFRS 16 and are tested at half year and full year on a trailing
12-month basis.
|
|
The
interest cover covenant requires a ratio of Covenant
EBITDA:Covenant interest payable above 3.5:1 and the leverage ratio
requires Covenant net debt:Covenant EBITDA of below 3.5:1. Covenant
EBITDA is calculated (on a frozen GAAP basis) as operating profit
before exceptional items, depreciation and amortisation and System
Fund revenues and expenses. These covenants have been waived from
30 June 2020 through 31 December 2021 and have been relaxed for
test dates in 2022. A minimum liquidity covenant of $400m has been
introduced which will be tested at each test date up to and
including 31 December 2022. For covenant purposes, liquidity is
defined as unrestricted cash and cash equivalents (net of bank
overdrafts) plus undrawn facilities with a remaining term of at
least six months.
|
|
Amended covenant test levels for Syndicated and Bilateral
Facilities
|
|||||
|
|
2019 and prior
|
30 June 2020-31 December 2021
|
30 June
2022
|
31 December 2022
|
30 June
2023
|
Leverage
|
<3.5x
|
waived
|
<7.5x
|
<6.5x
|
<3.5x
|
|
Interest
cover
|
>3.5x
|
waived
|
>1.5x
|
>2.0x
|
>3.5x
|
|
Liquidity
|
n/a
|
$400m
|
$400m
|
$400m
|
n/a
|
|
|
|
|
|
|
|
|
|
The
following table details performance against covenant tests. The
measures used in these tests are calculated on a frozen GAAP basis
and do not align to the values reported by the Group as Non-GAAP
measures:
|
|||||
|
|
|
|
|
2020
31 December
|
2019
31 December
|
|
Covenant
EBITDA
|
|
|
|
272
|
897
|
|
Covenant
net debt
|
|
|
|
2,375
|
2,241
|
|
Covenant
interest payable
|
|
|
111
|
99
|
|
|
Leverage
|
|
|
|
8.73
|
2.50
|
|
Interest
cover
|
|
|
|
2.45
|
9.06
|
|
Liquidity
|
|
|
|
2,925
|
n/a
|
11.
|
Movement in net debt
|
||||
|
|
2020
|
2019
|
||
|
|
$m
|
$m
|
||
|
|
|
|
||
|
Net
increase/(decrease) in cash and cash equivalents, net of
overdrafts
|
1,430
|
(500)
|
||
|
Add
back financing cash flows in respect of other components of net
debt:
|
|
|
||
|
Principal element
of lease payments
|
65
|
59
|
||
|
Issue
of long-term bonds, including effect of currency swaps
|
(1,093)
|
-
|
||
|
Issue
of commercial paper
|
(738)
|
-
|
||
|
Repayment of
long-term bonds
|
290
|
-
|
||
|
Decrease/(increase)
in other borrowings
|
125
|
(127)
|
||
|
|
______
|
______
|
||
|
Decrease/(increase)
in net debt arising from cash flows
|
79
|
(568)
|
||
|
|
|
|
||
|
Other
movements:
|
|
|
||
|
|
Lease
liabilities
|
144
|
(43)
|
|
|
|
Increase
in accrued interest
|
(5)
|
(7)
|
|
|
|
Acquisitions
and disposals
|
19
|
(25)
|
|
|
|
Exchange
and other adjustments
|
(101)
|
(57)
|
|
|
|
______
|
______
|
||
|
Decrease/(increase) in net debt
|
136
|
(700)
|
||
|
|
|
|
||
|
Net
debt at beginning of the year
|
(2,665)
|
(1,965)
|
||
|
|
______
|
______
|
||
|
Net debt at end of the year
|
(2,529)
|
(2,665)
|
||
|
|
______
|
______
|
|
|
InterContinental Hotels Group PLC
|
|
|
(Registrant)
|
|
|
|
|
By:
|
/s/ F.
Cuttell
|
|
Name:
|
F.
CUTTELL
|
|
Title:
|
ASSISTANT
COMPANY SECRETARY
|
|
|
|
|
Date:
|
23 February 2021
|
|
|
|