|
99.1
|
Half-year
Report dated 10 August 2021
|
|
|
Reported
|
|
Underlying1
|
|
||
2021
|
20202
|
% Change3
|
|
% Change
|
|
|
REPORTABLE SEGMENTS1:
|
|
|
|
|
|
|
Revenue1
|
$565m
|
$488m
|
+16%
|
|
+14%
|
|
Revenue from fee
business1
|
$505m
|
$375m
|
+35%
|
|
+31%
|
|
Operating
profit1
|
$188m
|
$52m
|
+262%
|
|
+314%
|
|
Fee
margin1
|
44.1%
|
20.1%
|
+24%pts
|
|
|
|
Adjusted
EPS1
|
40.4¢
|
4.9¢
|
+724%
|
|
KEY METRICS vs 2019
|
|
GROUP RESULTS:
|
|
|
|
|
●$7.9bn total gross revenue1 (down
(42)%)
|
|
Total revenue
|
$1,179m
|
$1,248m
|
(6)%
|
|
||
Operating profit/(loss)
|
$138m
|
$(233)m
|
NM
|
|
●(42.6)%
global H1 RevPAR1
|
|
Basic EPS
|
26.2¢
|
(115.4)¢
|
NM
|
|
||
Total dividend per share
|
- ¢
|
- ¢
|
- %
|
|
●(36.3)%
global Q2 RevPAR
|
|
Net
debt1
|
$2,458m
|
$2,515m
|
(2)%
|
|
●
|
Significant improvement in demand over the course of H1, resulting
in RevPAR (43)% vs 2019 and +20% vs 2020
|
●
|
Recovery most advanced in Greater China with Q2 RevPAR (16)% vs
2019; continued improvement in the Americas to (26)%; EMEAA still
most challenged at (65)%. Regional performance reflects variations
in both vaccine rollout progress and travel
restrictions
|
●
|
Group Q2 RevPAR (36)% vs 2019, reflecting occupancy 19%pts
lower and rate sustained at 87% of 2019 levels; Q2
occupancy of 53% improved through the quarter; June 69% in the US;
54% Greater China; and 40% EMEAA
|
●
|
Operating profit from reportable segments of $188m, +262% vs 2020,
(down 54% vs 2019); reported operating profit of $138m, after
System Fund result of $(46)m and operating exceptionals of
$(4)m
|
●
|
Cost reductions in the fee business this year of ~$75m vs 2019 on
track, and sustainable whilst still investing for growth;
majority of these savings delivered in H1; higher investment for
growth expected in H2
|
●
|
Strong cash conversion resulting in adjusted free cash
flow1 of
$147m (2020: outflow of $66m), and net cash from operating
activities of $173m (2020: outflow of $14m)
|
●
|
Gross system growth of +5.1% YOY; after removals, including SVC
portfolio termination in Q4 2020 and Holiday Inn and Crowne Plaza
review in H1 2021, net system size growth +0.1% YOY
|
●
|
Opened 17.4k rooms (132 hotels) in H1, +46% vs
2020; global estate now at 884k rooms (5,994
hotels)
|
●
|
Signed 32.6k rooms (203 hotels) in H1, +24% vs 2020; global
pipeline now at 274k rooms (1,805 hotels)
|
●
|
New collection brand launching to capture the increasing
opportunities of conversions and further strengthen our position in
Luxury & Lifestyle
|
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:
|
27 88 30
|
UK:
|
0203 936 3001
|
All other locations:
|
+44 203 936 3001
|
Passcode:
|
82 83 10
|
●
|
Global system of 884k rooms (5,994 hotels) at 30 June 2021,
weighted 69% across midscale segments and 31% across upscale and
luxury
|
●
|
Gross growth of 5.1% YOY, with 17.4k rooms (132 hotels) opened in
H1, up 46% on 2020
|
●
|
Removals of 18.9k rooms (102 hotels) in H1; of these, 13.0k (56
hotels) were Holiday Inn and Crowne Plaza rooms removed in Americas
and EMEAA
|
●
|
Net system size growth was +0.1% YOY (+2.0% excluding the 16.7k SVC
portfolio termination in Q4 2020)
|
●
|
Global pipeline of 274k rooms (1,805 hotels), which represents over
30% of current system size
|
●
|
Signed 32.6k rooms (203 hotels) in H1, up 24% on 2020
|
●
|
More than 40% of the global pipeline is under construction, in line
with prior years
|
●
|
84 hotels or 1% of the global estate remained temporarily closed at
30 June 2021, a significant improvement from nearly 300 hotels at
the start of 2021
|
|
System
|
Pipeline
|
||||||
|
Openings
|
Removals
|
Net
|
Total
|
YTD%
|
YOY%*
|
Signings
|
Total
|
Group
|
17,360
|
(18,912)
|
(1,552)
|
884,484
|
(0.2)%
|
+0.1%*
|
32,567
|
274,184
|
Americas
|
8,771
|
(12,434)
|
(3,663)
|
510,349
|
(0.7)%
|
(2.5)%*
|
7,750
|
96,687
|
EMEAA
|
1,578
|
(5,932)
|
(4,354)
|
223,495
|
(1.9)%
|
+1.0%
|
8,833
|
79,941
|
G. China
|
7,011
|
(546)
|
6,465
|
150,640
|
+4.5%
|
+8.6%
|
15,984
|
97,556
|
●
|
Strengthening our IHG Hotels & Resorts
masterbrand: having added
five brands in recent years, new marketing campaigns and a
significant proportion of our advertising spend have powerfully
positioned our masterbrand to influence consumer perception,
increase awareness and better promote our full family of brands
across Luxury & Lifestyle, Premium, Essentials and
Suites.
|
●
|
Driving further growth of our well-established
brands: Holiday Inn
Express, now in its 30th year,
has reached 3,000 properties around the world; with a pipeline for
an additional 667, further strong growth for this global
market-leading brand is expected in the coming
years.
|
●
|
Scaling our newest brands: our avid brand has already become the second
largest contributor to system growth, with the
40th avid
hotel opened in July; the brand is outperforming peers in guest
satisfaction, and has a further 175 under development throughout
the Americas region. Our most recently launched brand, Atwell
Suites, has reached 19 signings, and construction of a third
property is underway.
|
●
|
Further momentum for our voco conversion
brand: now at 53 openings
and signings since launch in 2018; further signings in the US and
Greater China, the first in South Korea, and strong growth in the
Middle East.
|
●
|
Continued international growth for Kimpton: the recently opened St Honoré Paris is
the brand's first in France, with Sydney marking entry into
Australia later this year; Kimpton also continues to grow
domestically in the US, with recent openings of three highly
anticipated new hotels in Atlanta, New Orleans and San Francisco.
Its pipeline of a further 32 hotels would take the brand to over
100 properties.
|
●
|
Additional country debuts: through a Master Development Agreement with Ishraq
Hospitality for eight Holiday Inn Express hotels, the brand will
enter four new countries - Oman, Bahrain, Jordan and Egypt - where
demand for branded midscale hotels is expected to build. Other
debuts include a first Hotel Indigo in Australia at Adelaide
Markets (with Sydney, Melbourne and Brisbane to follow) and a first
Staybridge Suites for India.
|
●
|
Expanding in high growth markets: recent openings and signings are increasing
our presence further in high growth markets such as Vietnam and
Turkey. Across the Middle East, there were 12 signings in the
period; Saudi Arabia, with currently 37 hotels across 5 brands, has
a pipeline for a further 23 further to open in the coming
years.
|
●
|
Celebrating InterContinental Hotel & Resorts
75th Diamond
Anniversary: as the
world's largest luxury hotel brand, this year sees InterContinental
Paris Le Grand, a global flagship for the iconic brand, reopen
after a major 24-month renovation, while InterContinental Barcelona
is due to open later in the third quarter; 12 signings in total in
the period increased the pipeline to 73.
|
●
|
Supporting our owners: through operational assistance to help
alleviate pressures in the current environment, such as staff
recruiting and onboarding, and with procurement; includes ongoing
relaxations to brand standards where appropriate to improve
efficiencies and drive costs down; simplifying rates to improve
guest experience, and additional Revenue Management for Hire (RMH)
services, and helping hotels identify and take advantage of revenue
opportunities using business intelligence and
data.
|
●
|
Focused marketing and service development: on key demographics of returning demand such
as leisure, family travel and last-minute escapes, and included
data-driven real-time search/location campaigns; engaging corporate
travellers with tailored 'Welcome Back to Business' campaigns, as
well as further developing our hybrid technology options and
platforms for tailoring group meetings and
events.
|
●
|
Enhancing our loyalty offer: continued positive response to Reward Night
Dynamic Pricing, which is supporting growth in redemption as well
as points purchase; targeted loyalty promotions and Enrol &
Stay campaigns to drive new guests and fast-tracked status for
returning travellers; members can also now earn and spend IHG
Rewards points and experience exclusive benefits at participating
Six Senses resorts.
|
●
|
Focusing on health and safety: our Clean Promise to guests and the IHG Way
of Clean programme, which includes a 50-point checklist for hotels,
have supported further strong increases in positive third-party
social media reviews on cleanliness and in guest satisfaction
scores.
|
●
|
Driving Guest Satisfaction even higher: despite the ongoing challenges of Covid-19,
as a result of the many actions and initiatives we've worked on in
partnership with our hotel owners and teams, our Guest Satisfaction
Index has been net positive throughout the year to date,
outperforming our competitors.
|
●
|
Digital check-in/out: Digital check-in implemented across 3,000 US
and Canada properties in three months, with 10,000 colleagues
trained; piloting in all other regions; built on the cloud-based
IHG Concerto platform, the service provides a safe and secure,
streamlined guest experience.
|
●
|
Attribute pricing: good
progress is being made towards the roll-out of this functionality
that will enable the curated merchandising of rooms based on
specific attributes, which is a key development of our Guest
Reservation System within IHG Concerto.
|
●
|
Utilising data-driven capabilities and maximising digital
reach: delivering
relevant, targeted marketing that is highly tailored to engage
guests will be enabled by the efficiency of the Group's data
transition to the cloud; combined with our advanced search engine
optimisation, these capabilities will help owners drive higher
levels of reservation conversions and improve the guest
experience.
|
●
|
Diversity, equity & inclusion (DE&I): new development programmes launched to
support further increasing of the diversity of talent; Conscious
Inclusion training rolled out for all corporate colleagues and
leaders globally; piloting a new Inclusion Index as part of our
employee engagement survey; IHG's progress has been recognised for
a seventh year running as a 'Best Place to Work for LGBTQ Equality'
with a 100% rating in the Corporate Equality
Index.
|
●
|
Human rights: continue to
develop resources for our hotels on topics including working and
living conditions for migrant workers and responsible recruitment,
our supply chain due diligence and our anti-human trafficking
training.
|
●
|
Communities: IHG Academy
is extending the reach of its curriculum, learning resources and
content through new strategic partnerships delivered via an
industry-leading platform.
|
●
|
Carbon & energy: establishing roadmap and workstreams to meet our
2030 science-based targets (15% absolute carbon reduction in direct
operations, 46% per m2 reduction
in franchise operations); upgrade underway to IHG Green Engage, our
environmental management system tracking every hotel's
sustainability, comprising both software enhancements and new
centralised data collection; co-authored whitepaper published,
outlining opportunities for operational energy enhancements at
existing hotels to achieve net zero carbon.
|
●
|
Waste: bathroom bulk
amenities supplier contracts in final stages, with full estate
compliance to be achieved in 2022; food waste measurement pilot
being trialled in the UK managed estate.
|
●
|
Water: further water
stewardship projects underway in Shenzhen, China, and Hayman
Island, Australia, in partnership with the Alliance for Water
Stewardship.
|
|
6 months ended 30 June
|
|||
|
|
|
|
|
|
2021
|
20201
|
%
|
|
|
$m
|
$m
|
change
|
|
Revenue
|
|
|
|
|
Americas
|
325
|
262
|
24.0
|
|
EMEAA
|
84
|
134
|
(37.3)
|
|
Greater China
|
59
|
18
|
227.8
|
|
Central
|
97
|
74
|
31.1
|
|
|
____
|
____
|
____
|
|
Revenue from reportable segments2
|
565
|
488
|
15.8
|
|
|
|
|
|
|
System Fund revenues
|
378
|
385
|
(1.8)
|
|
Reimbursement of costs
|
236
|
375
|
(37.1)
|
|
|
_____
|
_____
|
_____
|
|
Total revenue
|
1,179
|
1,248
|
(5.5)
|
|
|
_____
|
_____
|
_____
|
|
Operating profit/(loss)
|
|
|
|
|
Americas
|
224
|
142
|
57.7
|
|
EMEAA
|
(27)
|
(20)
|
35.0
|
|
Greater China
|
31
|
(9)
|
NM3
|
|
Central
|
(40)
|
(61)
|
(34.4)
|
|
|
____
|
____
|
_____
|
|
Operating profit/(loss) from reportable segments2
|
188
|
52
|
261.5
|
|
Analysed as:
|
|
|
|
|
Fee Business excluding central overheads
|
264
|
136
|
94.1
|
|
Owned, leased and managed lease
|
(36)
|
(23)
|
56.5
|
|
Central
|
(40)
|
(61)
|
(34.4)
|
|
|
|
|
|
|
System Fund result
|
(46)
|
(52)
|
(11.5)
|
|
|
____
|
____
|
____
|
|
Operating profit before exceptional items
|
142
|
-
|
-
|
|
Operating exceptional items
|
(4)
|
(233)
|
(98.3)
|
|
|
____
|
____
|
____
|
|
Operating profit/(loss)
|
138
|
(233)
|
NM3
|
|
|
|
|
|
|
Net financial expenses
|
(72)
|
(58)
|
24.1
|
|
Analysed as:
|
|
|
|
|
Adjusted interest expense2
|
(72)
|
(62)
|
16.1
|
|
System Fund interest
|
-
|
4
|
(100.0)
|
|
|
|
|
|
|
Fair value gains on contingent purchase consideration
|
1
|
16
|
(93.8)
|
|
|
____
|
____
|
____
|
|
Profit/(loss) before tax
|
67
|
(275)
|
NM3
|
|
|
|
|
|
|
Tax
|
(19)
|
65
|
(129.2)
|
|
Analysed as
|
|
|
|
|
Tax before exceptional items and System Fund
|
(42)
|
19
|
(321.1)
|
|
Tax on exceptional items
|
1
|
46
|
(97.8)
|
|
Exceptional tax
|
22
|
-
|
-
|
|
|
____
|
____
|
____
|
|
Profit/(loss) for the period
|
48
|
(210)
|
NM3
|
|
|
|
|
|
|
Adjusted earnings2
|
74
|
9
|
722.2
|
|
|
|
|
|
|
Basic weighted average number of ordinary shares
(millions)
|
183
|
182
|
0.5
|
|
|
____
|
____
|
____
|
|
Earnings/(loss) per ordinary share
|
|
|
|
|
|
Basic
|
26.2¢
|
(115.4)¢
|
NM3
|
|
Adjusted2
|
40.4¢
|
4.9¢
|
724.5
|
|
|
|
|
|
Dividend per share
|
-
|
-
|
-
|
|
|
|
|
|
|
Average US dollar to sterling exchange rate
|
$1:£0.72
|
$1: £0.79
|
(8.9)
|
|
|
|
|
|
|
6 months ended 30 June
|
||
|
2021
|
2020
|
$m
|
|
$m
|
$m
|
change
|
GAAP cash flow summary
|
|
|
|
Net cash from operating activities
|
173
|
(14)
|
187
|
Net cash from investing activities
|
(37)
|
(41)
|
4
|
Net cash from financing activities
|
(845)
|
593
|
(1,438)
|
|
____
|
____
|
______
|
Net movement in cash and cash equivalents in the
period
|
(709)
|
538
|
(1,247)
|
|
6 months ended 30 June
|
||
|
2021
|
20201
|
$m
|
|
$m
|
$m
|
change
|
|
|
|
|
Operating profit from reportable segments
|
188
|
52
|
|
Depreciation and amortisation from reportable segments
|
45
|
55
|
|
|
____
|
____
|
____
|
Adjusted EBITDA
|
233
|
107
|
126
|
|
|
|
|
Working capital and other adjustments
|
6
|
(100)
|
|
Impairment loss on financial assets
|
8
|
37
|
|
Other non-cash adjustments to operating profit/loss
|
35
|
29
|
|
|
|
|
|
System Fund result
|
(46)
|
(52)
|
|
System Fund depreciation and amortisation
|
41
|
30
|
|
Other non-cash adjustments to System Fund result
|
10
|
27
|
|
|
|
|
|
Capital expenditure: contract acquisition costs (key money) net of
repayments
|
(16)
|
(26)
|
|
Capital expenditure: maintenance
|
(9)
|
(32)
|
|
|
|
|
|
Cash flows relating to exceptional items
|
(12)
|
(30)
|
|
Net interest paid
|
(39)
|
(33)
|
|
Tax paid
|
(47)
|
(3)
|
|
Principal element of lease payments
|
(17)
|
(20)
|
|
|
____
|
____
|
____
|
Adjusted free cash flow2
|
147
|
(66)
|
213
|
|
|
|
|
Capital expenditure: gross recyclable investments
|
(9)
|
(2)
|
|
Capital expenditure: gross System Fund investments
|
(7)
|
(25)
|
|
Deferred purchase consideration paid
|
(13)
|
-
|
|
Disposals, including other financial assets
|
1
|
13
|
|
Distributions from associates and joint ventures
|
-
|
5
|
|
|
____
|
____
|
____
|
Net cash flow before other net debt movements
|
119
|
(75)
|
194
|
|
|
|
|
Add back principal element of lease repayments within free cash
flow
|
17
|
20
|
|
Exchange and other non-cash adjustments
|
(65)
|
205
|
|
|
____
|
____
|
____
|
Decrease in net debt
|
71
|
150
|
(79)
|
|
|
|
|
Net debt at beginning of the year
|
(2,529)
|
(2,665)
|
|
|
______
|
______
|
____
|
Net debt at end of the period
|
(2,458)
|
(2,515)
|
57
|
|
______
|
______
|
____
|
|
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
|
|
6 months ended 30 June
|
||||
|
|
|
|
|
|
|
2021
|
|
2020
|
|
%
|
|
$bn
|
|
$bn
|
|
change2
|
Analysed by brand
|
|
|
|
|
|
InterContinental
|
1.0
|
|
1.0
|
|
2.1
|
Kimpton
|
0.3
|
|
0.3
|
|
2.3
|
Hotel Indigo
|
0.2
|
|
0.1
|
|
32.1
|
Crowne Plaza
|
1.0
|
|
0.9
|
|
11.4
|
Holiday Inn
|
1.6
|
|
1.4
|
|
14.6
|
Holiday Inn Express
|
2.7
|
|
2.0
|
|
38.1
|
Staybridge Suites
|
0.4
|
|
0.3
|
|
23.5
|
Candlewood Suites
|
0.3
|
|
0.3
|
|
6.3
|
Other
|
0.4
|
|
0.3
|
|
36.4
|
|
____
|
|
____
|
|
____
|
Total
|
7.9
|
|
6.6
|
|
20.1
|
|
____
|
|
____
|
|
____
|
|
|
|
|
|
|
Analysed by ownership type
|
|
|
|
|
|
Fee business
|
7.8
|
|
6.5
|
|
21.3
|
Owned, leased and managed lease
|
0.1
|
|
0.1
|
|
(46.2)
|
|
____
|
|
____
|
|
____
|
Total
|
7.9
|
|
6.6
|
|
20.1
|
|
____
|
|
____
|
|
____
|
|
Half Year 2021 vs 2019
|
Half Year 2021 vs 2020
|
||||
|
RevPAR
|
ADR
|
Occupancy
|
RevPAR
|
ADR
|
Occupancy
|
Group
|
(42.6)%
|
(16.8)%
|
(21.0)%pts
|
20.0%
|
(6.0)%
|
10.1%pts
|
Americas
|
(33.6)%
|
(14.2)%
|
(15.6)%pts
|
27.9%
|
(2.1)%
|
12.4%pts
|
EMEAA
|
(67.7)%
|
(25.5)%
|
(40.5)%pts
|
(22.3)%
|
(15.4)%
|
(2.7)%pts
|
G. China
|
(26.1)%
|
(13.9)%
|
(8.3)%pts
|
94.5%
|
4.0%
|
23.1%pts
|
|
Q2 2021 vs 2019
|
Q2 2021 vs 2020
|
||||
|
RevPAR
|
ADR
|
Occupancy
|
RevPAR
|
ADR
|
Occupancy
|
Group
|
(36.3)%
|
(13.5)%
|
(19.0)%pts
|
150.9%
|
18.5%
|
28.0%pts
|
Americas
|
(26.4)%
|
(10.2)%
|
(13.2)%pts
|
153.9%
|
19.4%
|
31.7%pts
|
EMEAA
|
(64.9)%
|
(23.3)%
|
(40.6)%pts
|
179.2%
|
13.8%
|
20.2%pts
|
G. China
|
(15.9)%
|
(10.3)%
|
(3.9)%pts
|
106.7%
|
12.4%
|
26.7%pts
|
|
Half Year 2021 vs 2019
|
Half Year 2021 vs 2020
|
||||
|
CER
|
AER
|
Difference
|
CER
|
AER
|
Difference
|
Group
|
(42.6)%
|
(41.8)%
|
0.8%pts
|
20.0%
|
22.4%
|
2.4%pts
|
Americas
|
(33.6)%
|
(33.8)%
|
(0.2)%pts
|
27.9%
|
28.2%
|
0.3%pts
|
EMEAA
|
(67.7)%
|
(66.3)%
|
1.4%pts
|
(22.3)%
|
(18.2)%
|
4.1%pts
|
G. China
|
(26.1)%
|
(22.7)%
|
3.4%pts
|
94.5%
|
110.6%
|
16.1%pts
|
|
Q2 2021 vs 2019
|
Q2 2021 vs 2020
|
||||
|
CER
|
AER
|
Difference
|
CER
|
AER
|
Difference
|
Group
|
(36.3)%
|
(35.3)%
|
1.0%pts
|
150.9%
|
156.9%
|
6.0%pts
|
Americas
|
(26.4)%
|
(26.4)%
|
0.0%pts
|
153.9%
|
155.0%
|
1.1%pts
|
EMEAA
|
(64.9)%
|
(63.2)%
|
1.7%pts
|
179.2%
|
196.2%
|
17.0%pts
|
G. China
|
(15.9)%
|
(11.4)%
|
4.5%pts
|
106.7%
|
126.2%
|
19.5%pts
|
2021 vs 2019
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Group
|
(52.5)%
|
(53.8)%
|
(46.6)%
|
(41.4)%
|
(37.1)%
|
(31.0)%
|
Americas
|
(45.1)%
|
(45.4)%
|
(39.4)%
|
(32.3)%
|
(27.8)%
|
(19.7)%
|
EMEAA
|
(71.1)%
|
(72.7)%
|
(70.6)%
|
(70.1)%
|
(65.8)%
|
(59.4)%
|
G. China
|
(41.5)%
|
(51.1)%
|
(23.2)%
|
(14.9)%
|
(12.0)%
|
(21.5)%
|
2021 vs 2020
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Group
|
(51.7)%
|
(47.7)%
|
20.8%
|
228.0%
|
156.7%
|
108.4%
|
Americas
|
(44.2)%
|
(44.2)%
|
20.7%
|
245.3%
|
160.4%
|
108.0%
|
EMEAA
|
(72.2)%
|
(69.7)%
|
(21.5)%
|
183.4%
|
194.1%
|
165.4%
|
G. China
|
(21.9)%
|
335.0%
|
288.6%
|
199.6%
|
107.5%
|
51.3%
|
2020 vs 2019
|
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)%
|
|
Hotels
|
|
Rooms
|
|||
|
||||||
Global hotel and room count
|
|
Change over
|
|
|
Change over
|
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
30 June
|
31 December
|
|
30 June
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
|
Six Senses
|
17
|
1
|
|
1,149
|
20
|
Regent
|
7
|
-
|
|
2,190
|
-
|
|
|
InterContinental
|
206
|
1
|
|
70,226
|
285
|
|
Kimpton
|
75
|
2
|
|
13,215
|
130
|
|
Hotel Indigo
|
128
|
3
|
|
16,099
|
495
|
|
HUALUXE
|
14
|
2
|
|
3,943
|
510
|
|
Crowne Plaza
|
407
|
(22)
|
|
112,399
|
(6,480)
|
|
EVEN Hotels
|
20
|
4
|
|
2,882
|
472
|
|
voco
|
19
|
1
|
|
5,227
|
150
|
|
Holiday Inn1
|
1,262
|
(14)
|
|
233,534
|
(3,020)
|
|
Holiday Inn Express
|
3,004
|
38
|
|
314,808
|
5,321
|
avid hotels
|
38
|
14
|
|
3,385
|
1,229
|
|
|
Staybridge Suites
|
312
|
9
|
|
33,667
|
772
|
|
Candlewood Suites
|
360
|
(6)
|
|
31,916
|
(519)
|
|
Other2
|
125
|
(3)
|
|
39,844
|
(917)
|
|
|
_____
|
____
|
|
_______
|
______
|
Total
|
5,994
|
30
|
|
884,484
|
(1,552)
|
|
|
|
_____
|
____
|
|
_______
|
______
|
Analysed by ownership type
|
|
|
|
|
|
|
|
Franchised
|
5,048
|
43
|
|
629,497
|
2,149
|
|
Managed
|
923
|
(13)
|
|
249,582
|
(3,706)
|
|
Owned, leased and managed lease
|
23
|
-
|
|
5,405
|
5
|
|
|
_____
|
____
|
|
_______
|
______
|
Total
|
5,994
|
30
|
|
884,484
|
(1,552)
|
|
|
|
_____
|
____
|
|
_______
|
______
|
|
|
|
|
|
|
|
|
1. Includes
44 Holiday Inn Resort properties (10,793 rooms) and 28 Holiday Inn
Club Vacations properties (8,679 rooms), (2020: 47 Holiday Inn
Resort properties (11,446 rooms) and 28 Holiday Inn Club Vacations
properties (8,679 rooms)).
2. Includes
five open hotels that will be re-branded to
voco.
|
|
Hotels
|
|
Rooms
|
|||
|
||||||
Global Pipeline
|
|
Change over
|
|
|
Change over
|
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
30 June
|
31 December
|
|
30 June
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
|
Six Senses
|
34
|
3
|
|
2,494
|
255
|
Regent
|
7
|
1
|
|
1,621
|
86
|
|
|
InterContinental
|
73
|
4
|
|
18,605
|
831
|
|
Kimpton
|
32
|
-
|
|
6,322
|
57
|
|
Hotel Indigo
|
110
|
6
|
|
16,871
|
1,167
|
|
HUALUXE
|
24
|
(1)
|
|
6,345
|
(562)
|
|
Crowne Plaza
|
102
|
13
|
|
27,302
|
3,074
|
|
EVEN Hotels
|
30
|
(1)
|
|
5,210
|
164
|
|
voco
|
34
|
5
|
|
9,527
|
1,348
|
|
Holiday Inn1
|
250
|
(12)
|
|
49,541
|
(1,622)
|
|
Holiday Inn Express
|
667
|
(16)
|
|
86,114
|
(1,038)
|
avid hotels
|
175
|
(17)
|
|
15,788
|
(1,738)
|
|
|
Staybridge Suites
|
152
|
(3)
|
|
17,070
|
(420)
|
|
Candlewood Suites
|
82
|
9
|
|
7,014
|
645
|
|
Atwell Suites
|
19
|
-
|
|
1,877
|
28
|
|
Other2
|
14
|
(1)
|
|
2,483
|
(148)
|
|
|
_____
|
____
|
|
_______
|
_____
|
Total
|
1,805
|
(10)
|
|
274,184
|
2,127
|
|
|
|
_____
|
____
|
|
_______
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
|
Franchised
|
1,285
|
(25)
|
|
159,654
|
586
|
|
Managed
|
519
|
15
|
|
114,375
|
1,541
|
Owned, leased and managed lease
|
1
|
-
|
|
155
|
-
|
|
|
|
_____
|
____
|
|
_______
|
_____
|
Total
|
1,805
|
(10)
|
|
274,184
|
2,127
|
|
|
|
_____
|
____
|
|
_______
|
_____
|
AMERICAS
|
6 months ended 30
June
|
|
||||||
Americas Results
|
|
|
|
|
||||
|
2021
|
20201
|
%
|
|
||||
|
$m
|
$m
|
change
|
|
||||
Revenue from
the reportable segment2
|
|
|
|
|
||||
|
Fee business
|
296
|
226
|
31.0
|
|
|||
|
Owned, leased and managed lease
|
29
|
36
|
(19.4)
|
|
|||
|
____
|
____
|
____
|
|
||||
Total
|
|
325
|
262
|
24.0
|
|
|||
|
____
|
____
|
____
|
|
||||
Operating profit from the reportable
segment2
|
|
|
|
|
||||
|
Fee business
|
236
|
152
|
55.3
|
|
|||
|
Owned, leased and managed lease
|
(12)
|
(10)
|
20.0
|
|
|||
|
____
|
____
|
____
|
|
||||
|
|
224
|
142
|
57.7
|
|
|||
Operating exceptional items
|
|
(4)
|
(137)
|
(97.1)
|
|
|||
|
____
|
____
|
______
|
|
||||
Operating profit
|
220
|
5
|
NM3
|
|
||||
|
____
|
_____
|
_______
|
|
||||
|
|
|
|
|
||||
Americas Comparable
RevPAR4 movement
on previous year
|
6 months ended
30 June 2021
|
|||||||
Fee business
|
|
|||||||
|
InterContinental
|
(17.5)%
|
||||||
|
Kimpton
|
8.8%
|
||||||
|
Hotel Indigo
|
39.6%
|
||||||
|
Crowne Plaza
|
(5.8)%
|
||||||
|
EVEN Hotels
|
27.6%
|
||||||
|
Holiday Inn
|
26.2%
|
||||||
|
Holiday Inn Express
|
38.6%
|
||||||
|
Staybridge Suites
|
30.3%
|
||||||
|
Candlewood Suites
|
26.5%
|
||||||
|
All brands
|
28.1%
|
||||||
Owned, leased and managed lease
|
|
|||||||
|
EVEN Hotels
|
11.0%
|
||||||
|
Holiday Inn
|
(10.0)%
|
||||||
|
All brands
|
0.7%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Hotels
|
Rooms
|
|
|
|
||||||
|
|
|
||||||||||
Americas hotel and room count
|
|
Change over
|
|
|
Change over
|
|||||||
|
2021
|
2020
|
|
2021
|
2020
|
|||||||
|
30 June
|
31 December
|
|
30 June
|
31 December
|
|||||||
Analysed by brand
|
|
|
|
|
|
|||||||
|
Six Senses
|
1
|
1
|
|
20
|
20
|
||||||
|
InterContinental
|
45
|
(1)
|
|
16,537
|
(252)
|
||||||
|
Kimpton
|
66
|
2
|
|
11,227
|
130
|
||||||
|
Hotel Indigo
|
67
|
-
|
|
8,773
|
(20)
|
||||||
|
Crowne Plaza
|
122
|
(14)
|
|
31,364
|
(4,041)
|
||||||
|
EVEN Hotels
|
18
|
3
|
|
2,631
|
392
|
||||||
|
voco
|
1
|
-
|
|
49
|
-
|
||||||
|
Holiday Inn1
|
754
|
(12)
|
|
127,916
|
(3,026)
|
||||||
|
Holiday Inn Express
|
2,440
|
15
|
|
222,026
|
1,684
|
||||||
avid hotels
|
38
|
14
|
|
3,385
|
1,229
|
|||||||
|
Staybridge Suites
|
295
|
10
|
|
30,993
|
936
|
||||||
|
Candlewood Suites
|
360
|
(6)
|
|
31,916
|
(519)
|
||||||
|
Other2
|
102
|
(1)
|
|
23,512
|
(196)
|
||||||
|
|
_____
|
____
|
|
_______
|
______
|
||||||
Total
|
4,309
|
11
|
|
510,349
|
(3,663)
|
|||||||
|
|
_____
|
____
|
|
_______
|
______
|
||||||
Analysed by ownership type
|
|
|
|
|
|
|||||||
|
Franchised
|
4,118
|
13
|
|
469,186
|
(2,616)
|
||||||
|
Managed
|
185
|
(2)
|
|
39,339
|
(1,052)
|
||||||
Owned, leased and managed lease
|
6
|
-
|
|
1,824
|
5
|
|||||||
|
|
_____
|
____
|
|
_______
|
______
|
||||||
Total
|
4,309
|
11
|
|
510,349
|
(3,663)
|
|||||||
|
|
_____
|
____
|
|
_______
|
______
|
|
Hotels
|
|
Rooms
|
|||
|
||||||
Americas Pipeline
|
|
Change over
|
|
|
Change over
|
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
30 June
|
31 December
|
|
30 June
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
|
Six Senses
|
6
|
(1)
|
|
471
|
(48)
|
|
InterContinental
|
8
|
1
|
|
2,102
|
378
|
|
Kimpton
|
17
|
(3)
|
|
2,964
|
(519)
|
|
Hotel Indigo
|
29
|
(2)
|
|
3,903
|
(252)
|
|
Crowne Plaza
|
6
|
-
|
|
1,250
|
-
|
|
EVEN Hotels
|
12
|
(4)
|
|
1,468
|
(507)
|
|
voco
|
3
|
1
|
|
402
|
128
|
|
Holiday Inn1
|
76
|
(4)
|
|
10,067
|
(379)
|
|
Holiday Inn Express
|
356
|
(30)
|
|
34,418
|
(2,937)
|
avid hotels
|
174
|
(17)
|
|
15,573
|
(1,738)
|
|
|
Staybridge Suites
|
130
|
(5)
|
|
13,407
|
(654)
|
|
Candlewood Suites
|
82
|
9
|
|
7,014
|
645
|
|
Atwell Suites
|
19
|
-
|
|
1,877
|
28
|
|
Other
|
11
|
(2)
|
|
1,771
|
(215)
|
|
|
____
|
____
|
|
______
|
______
|
Total
|
929
|
(57)
|
|
96,687
|
(6,070)
|
|
|
|
____
|
____
|
|
______
|
______
|
Analysed by ownership type
|
|
|
|
|
|
|
|
Franchised
|
891
|
(53)
|
|
90,662
|
(5,866)
|
|
Managed
|
38
|
(4)
|
|
6,025
|
(204)
|
|
|
____
|
____
|
|
______
|
______
|
Total
|
929
|
(57)
|
|
96,687
|
(6,070)
|
|
|
|
____
|
____
|
|
______
|
______
|
|
6 months ended 30
June
|
||||
EMEAA results
|
|
|
|
||
|
2021
|
20201
|
%
|
||
|
$m
|
$m
|
change
|
||
Revenue from the reportable
segment2
|
|
|
|
||
|
Fee business
|
53
|
57
|
(7.0)
|
|
|
Owned, leased and managed lease
|
31
|
77
|
(59.7)
|
|
|
____
|
____
|
____
|
||
Total
|
|
84
|
134
|
(37.3)
|
|
|
____
|
____
|
____
|
||
Operating loss from the reportable
segment2
|
|
|
|
||
|
Fee business
|
(3)
|
(7)
|
(57.1)
|
|
|
Owned, leased and managed lease
|
(24)
|
(13)
|
84.6
|
|
|
____
|
____
|
____
|
||
|
|
(27)
|
(20)
|
35.0
|
|
Operating exceptional items
|
|
-
|
(95)
|
(100.0)
|
|
|
|
____
|
____
|
_____
|
|
Operating loss
|
(27)
|
(115)
|
(76.5)
|
||
|
____
|
____
|
_____
|
||
|
|
|
|
|
|
EMEAA comparable
RevPAR3 movement
on previous year
|
6 months ended
30 June 2021
|
|||
|
|
|||
Fee business
|
|
|||
|
InterContinental
|
(12.6)%
|
||
|
Hotel Indigo
|
(52.6)%
|
||
|
Crowne Plaza
|
(17.6)%
|
||
|
Holiday Inn
|
(27.9)%
|
||
|
Holiday Inn Express
|
(23.4)%
|
||
|
Staybridge Suites
|
11.5%
|
||
|
All brands
|
(21.3)%
|
||
|
|
|
||
Owned, leased and managed leases
|
|
|||
|
InterContinental
|
(71.0)%
|
||
|
All brands
|
(61.4)%
|
||
|
|
|
||
|
|
|
|
|
|
|
|
||||
|
||||||
|
|
Hotels
|
|
|
Rooms
|
|
EMEAA hotel and room count
|
|
Change
over
|
|
|
Change
over
|
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
30 June
|
31
December
|
|
30 June
|
31
December
|
|
Analysed by
brand
|
|
|
|
|
|
|
|
Six
Senses
|
15
|
-
|
|
1,007
|
-
|
Regent
|
3
|
-
|
|
771
|
-
|
|
|
InterContinental
|
109
|
1
|
|
32,711
|
237
|
|
Kimpton
|
8
|
-
|
|
1,859
|
-
|
|
Hotel
Indigo
|
47
|
1
|
|
5,209
|
143
|
|
Crowne
Plaza
|
180
|
(8)
|
|
44,086
|
(2,438)
|
|
voco
|
17
|
1
|
|
5,030
|
150
|
|
Holiday
Inn1
|
390
|
(11)
|
|
72,965
|
(2,019)
|
|
Holiday Inn
Express
|
333
|
4
|
|
47,814
|
458
|
|
Staybridge
Suites
|
17
|
(1)
|
|
2,674
|
(164)
|
|
Other2
|
15
|
(2)
|
|
9,369
|
(721)
|
|
|
_____
|
____
|
|
_______
|
______
|
Total
|
1,134
|
(15)
|
|
223,495
|
(4,354)
|
|
|
|
_____
|
____
|
|
_______
|
______
|
Analysed by
ownership type
|
|
|
|
|
|
|
|
Franchised
|
775
|
1
|
|
125,149
|
(571)
|
|
Managed
|
342
|
(16)
|
|
94,765
|
(3,783)
|
Owned, leased and
managed lease
|
17
|
-
|
|
3,581
|
-
|
|
|
|
_____
|
____
|
|
_______
|
______
|
Total
|
1,134
|
(15)
|
|
223,495
|
(4,354)
|
|
|
|
_____
|
____
|
|
_______
|
______
|
|
|
|
||||
|
||||||
|
|
Hotels
|
|
|
Rooms
|
|
EMEAA Pipeline
|
|
Change
over
|
|
|
Change
over
|
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
30 June
|
31
December
|
|
30 June
|
31
December
|
|
Analysed by
brand
|
|
|
|
|
|
|
|
Six
Senses
|
23
|
2
|
|
1,748
|
197
|
Regent
|
6
|
1
|
|
1,341
|
86
|
|
|
InterContinental
|
37
|
4
|
|
8,250
|
765
|
|
Kimpton
|
9
|
3
|
|
1,721
|
593
|
|
Hotel
Indigo
|
45
|
4
|
|
6,894
|
847
|
|
Crowne
Plaza
|
41
|
6
|
|
10,577
|
1,476
|
|
voco
|
27
|
1
|
|
8,226
|
452
|
|
Holiday
Inn1
|
102
|
(6)
|
|
21,700
|
(854)
|
|
Holiday Inn
Express
|
92
|
-
|
|
15,191
|
(42)
|
avid
hotels
|
1
|
-
|
|
215
|
-
|
|
|
Staybridge
Suites
|
22
|
2
|
|
3,663
|
234
|
|
Other
|
2
|
1
|
|
415
|
67
|
|
|
____
|
____
|
|
______
|
_____
|
Total
|
407
|
18
|
|
79,941
|
3,821
|
|
|
|
____
|
____
|
|
______
|
_____
|
Analysed by
ownership type
|
|
|
|
|
|
|
|
Franchised
|
160
|
5
|
|
27,259
|
1,607
|
|
Managed
|
246
|
13
|
|
52,527
|
2,214
|
Owned, leased and
managed lease
|
1
|
-
|
|
155
|
-
|
|
|
|
____
|
____
|
|
______
|
_____
|
Total
|
407
|
18
|
|
79,941
|
3,821
|
|
|
|
____
|
____
|
|
______
|
_____
|
|
6 months ended 30
June
|
||||
|
|
|
|
||
Greater China results
|
2021
|
20201
|
%
|
||
|
$m
|
$m
|
change
|
||
|
|
|
|
||
Revenue from the reportable
segment2
|
|
|
|
||
|
Fee business
|
59
|
18
|
227.8
|
|
|
|
____
|
____
|
_____
|
|
Total
|
|
59
|
18
|
227.8
|
|
|
____
|
____
|
_____
|
||
Operating profit/(loss) from the
reportable segment2
|
|
|
|
||
|
Fee business
|
31
|
(9)
|
NM3
|
|
|
____
|
____
|
____
|
||
Operating exceptional items
|
-
|
(3)
|
(100)
|
||
|
____
|
____
|
____
|
||
Operating profit/(loss)
|
31
|
(12)
|
NM3
|
||
|
____
|
____
|
____
|
||
|
|
|
|
|
|
Greater China comparable
RevPAR4 movement
on previous year
|
6 months ended
30 June 2020
|
|
|
|
|
Fee business
|
|
|
|
InterContinental
|
105.2%
|
|
Hotel Indigo
|
113.9%
|
|
HUALUXE
|
91.6%
|
|
Crowne Plaza
|
96.1%
|
|
Holiday Inn
|
88.2%
|
|
Holiday Inn Express
|
90.5%
|
|
All brands
|
94.5%
|
|
|
|
|
Hotels
|
|
Rooms
|
|||
|
||||||
Greater China hotel and room count
|
|
Change over
|
|
|
Change over
|
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
30 June
|
31 December
|
|
30 June
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
|
Six Senses
|
1
|
-
|
|
122
|
-
|
Regent
|
4
|
-
|
|
1,419
|
-
|
|
|
InterContinental
|
52
|
1
|
|
20,978
|
300
|
|
Kimpton
|
1
|
-
|
|
129
|
-
|
|
Hotel Indigo
|
14
|
2
|
|
2,117
|
372
|
|
HUALUXE
|
14
|
2
|
|
3,943
|
510
|
|
Crowne Plaza
|
105
|
-
|
|
36,949
|
(1)
|
|
EVEN Hotels
|
2
|
1
|
|
251
|
80
|
|
voco
|
1
|
-
|
|
148
|
-
|
|
Holiday Inn1
|
118
|
9
|
|
32,653
|
2,025
|
|
Holiday Inn Express
|
231
|
19
|
|
44,968
|
3,179
|
|
Other
|
8
|
-
|
|
6,963
|
-
|
|
|
____
|
____
|
|
_______
|
_____
|
Total
|
551
|
34
|
|
150,640
|
6,465
|
|
|
|
____
|
____
|
|
_______
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
|
Franchised
|
155
|
29
|
|
35,162
|
5,336
|
|
Managed
|
396
|
5
|
|
115,478
|
1,129
|
|
|
____
|
____
|
|
_______
|
_____
|
Total
|
551
|
34
|
|
150,640
|
6,465
|
|
|
|
____
|
____
|
|
_______
|
_____
|
|
Hotels
|
|
Rooms
|
|||
|
||||||
Greater China Pipeline
|
|
Change over
|
|
|
Change over
|
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
30 June
|
31 December
|
|
30 June
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
|
Six Senses
|
5
|
2
|
|
275
|
106
|
Regent
|
1
|
-
|
|
280
|
-
|
|
|
InterContinental
|
28
|
(1)
|
|
8,253
|
(312)
|
|
Kimpton
|
6
|
-
|
|
1,637
|
(17)
|
|
Hotel Indigo
|
36
|
4
|
|
6,074
|
572
|
|
HUALUXE
|
24
|
(1)
|
|
6,345
|
(562)
|
|
Crowne Plaza
|
55
|
7
|
|
15,475
|
1,598
|
|
EVEN Hotels
|
18
|
3
|
|
3,742
|
671
|
|
voco
|
4
|
3
|
|
899
|
768
|
|
Holiday Inn1
|
72
|
(2)
|
|
17,774
|
(389)
|
|
Holiday Inn Express
|
219
|
14
|
|
36,505
|
1,941
|
|
Other2
|
1
|
-
|
|
297
|
-
|
|
|
____
|
____
|
|
______
|
_____
|
Total
|
469
|
29
|
|
97,556
|
4,376
|
|
|
|
____
|
____
|
|
______
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
|
Franchised
|
234
|
23
|
|
41,733
|
4,845
|
|
Managed
|
235
|
6
|
|
55,823
|
(469)
|
|
|
____
|
____
|
|
______
|
_____
|
Total
|
469
|
29
|
|
97,556
|
4,376
|
|
|
|
____
|
____
|
|
______
|
_____
|
|
6 months ended 30 June
|
|||
|
|
|
|
|
|
2021
|
20201
|
%
|
|
Central results
|
$m
|
$m
|
change
|
|
|
|
|
|
|
Revenue
|
97
|
74
|
31.1
|
|
Gross costs
|
(137)
|
(135)
|
1.5
|
|
|
____
|
____
|
____
|
|
|
|
(40)
|
(61)
|
(34.4)
|
Exceptional items
|
|
-
|
2
|
(100)
|
|
____
|
____
|
____
|
|
Operating loss
|
(40)
|
(59)
|
(32.2)
|
|
|
____
|
____
|
____
|
●
|
total
rooms revenue from franchised hotels;
|
●
|
total
hotel revenue from managed hotels includes food and beverage,
meetings and other revenues and reflects the value IHG drives to
managed hotel owners by optimising the performance of their hotels;
and
|
●
|
total
hotel revenue from owned, leased and managed lease
hotels.
|
●
|
System
Fund - the Fund is not managed to generate a profit or loss for IHG
over the longer term, but is managed for the benefit of the hotels
within the IHG System. The System Fund is operated to collect and
administer cash assessments from hotel owners for the specific
purpose of use in marketing, the Guest Reservation Systems and
hotel loyalty programme.
|
●
|
Revenues
related to the reimbursement of costs - there is a cost equal to
these revenues so there is no profit impact. Cost reimbursements
are not applicable to all hotels, and growth in these revenues is
not reflective of growth in the performance of the Group. As such,
management do not include these revenues in their analysis of
results.
|
●
|
Exceptional
items - these are identified by virtue of their size, nature, or
incidence and can include, but are not restricted to, gains and
losses on the disposal of assets, impairment charges and reversals,
and reorganisation costs. As each item is different in nature and
scope, there will be little continuity in the detailed composition
and size of the reported amounts which affect performance in
successive periods. Separate disclosure of these amounts
facilitates the understanding of performance including and
excluding such items.
|
●
|
Underlying
revenue;
|
●
|
Underlying
operating profit;
|
●
|
Underlying
fee revenue; and
|
●
|
Fee
margin.
|
●
|
IHG
records an interest charge on the outstanding cash balance relating
to the IHG Rewards programme. These interest payments are
recognised as interest income for the Fund and interest expense for
IHG.
|
●
|
The
System Fund also benefits from the capitalisation of interest
related to the development of the next-generation Guest Reservation
System.
|
●
|
System
Fund capital investments which are strategic investments to drive
growth at hotel level;
|
●
|
recyclable
investments (such as investments in associates and joint ventures),
which are intended to be recoverable in the medium term and are to
drive the growth of the Group's brands and expansion in priority
markets; and
|
●
|
maintenance
capital expenditure (including contract acquisition costs), which
represents a permanent cash outflow.
|
Reportable segments
|
Revenue
|
|
Operating profit
|
||||
|
|
|
|
|
|
|
|
|
2021
|
2020
|
%
|
|
2021
|
20201
|
%
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
Per Group income statement
|
1,179
|
1,248
|
(5.5)
|
|
138
|
(233)
|
NM2
|
System Fund
|
(378)
|
(385)
|
(1.8)
|
|
46
|
52
|
(11.5)
|
Reimbursement of costs
|
(236)
|
(375)
|
(37.1)
|
|
-
|
-
|
-
|
Operating exceptional items
|
-
|
-
|
-
|
|
4
|
233
|
(98.3)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
565
|
488
|
15.8
|
|
188
|
52
|
261.5
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
Fee business
|
505
|
375
|
34.7
|
|
224
|
75
|
198.7
|
Owned, leased and managed lease
|
60
|
113
|
(46.9)
|
|
(36)
|
(23)
|
56.5
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
565
|
488
|
15.8
|
|
188
|
52
|
261.5
|
|
Revenue
|
|
Operating profit
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|||||||
|
2021
|
2020
|
%
|
|
2021
|
20201
|
%
|
||||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
Change
|
||||||||
|
|
|
|
|
|
|
|
|
|||||||
Reportable segments (see above)
|
565
|
488
|
15.8
|
|
188
|
52
|
261.5
|
||||||||
Significant liquidated damages2
|
(6)
|
(1)
|
500.0
|
|
(6)
|
(1)
|
500.0
|
||||||||
Owned and leased asset disposal3
|
-
|
(10)
|
-
|
|
-
|
(3)
|
-
|
||||||||
Currency impact
|
-
|
12
|
-
|
|
-
|
(4)
|
-
|
||||||||
|
____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||||
Underlying revenue and underlying operating profit
|
559
|
489
|
14.3
|
|
182
|
44
|
313.6
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
Operating profit
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
2021
|
2020
|
%
|
|
2021
|
2020
|
%
|
|||||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Reportable segments fee business (see above)
|
505
|
375
|
34.7
|
|
224
|
75
|
198.7
|
|||||||||
Significant liquidated damages
|
(6)
|
(1)
|
500.0
|
|
(6)
|
(1)
|
500.0
|
|||||||||
Currency impact
|
-
|
7
|
-
|
|
-
|
(3)
|
-
|
|||||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|||||||||
Underlying fee revenue
|
499
|
381
|
31.0
|
|
218
|
71
|
207.0
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Operating profit1
|
|
||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
2021
|
2020
|
%
|
|
2021
|
20202
|
%
|
|||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Per Interim financial statements
|
325
|
262
|
24.0
|
|
224
|
142
|
57.7
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Reportable segments analysed as:
|
|
|
|
|
|
|
|
|||||||
Fee business
|
296
|
226
|
31.0
|
|
236
|
152
|
55.3
|
|||||||
Owned, leased and managed lease
|
29
|
36
|
(19.4)
|
|
(12)
|
(10)
|
20.0
|
|||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|||||||
|
325
|
262
|
24.0
|
|
224
|
142
|
57.7
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Reportable segments (see above)
|
325
|
262
|
24.0
|
|
224
|
142
|
57.7
|
|||||||
Owned and leased asset disposal3
|
-
|
(6)
|
-
|
|
-
|
(1)
|
-
|
|||||||
Currency impact
|
-
|
-
|
-
|
|
-
|
-
|
-
|
|||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|||||||
Underlying revenue and underlying operating profit
|
325
|
256
|
27.0
|
|
224
|
141
|
58.9
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Owned, leased and managed lease included in the above
|
(29)
|
(30)
|
(3.3)
|
|
12
|
11
|
9.1
|
|||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|||||||
Underlying fee business
|
296
|
226
|
31.0
|
|
236
|
152
|
55.3
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Operating loss1
|
|||||||||||
|
|
|
|
|
|
|
|
|||||||
|
2021
|
2020
|
%
|
|
2021
|
20202
|
%
|
|
||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Per Interim financial statements
|
84
|
134
|
(37.3)
|
|
(27)
|
(20)
|
35.0
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Reportable segments analysed as:
|
|
|
|
|
|
|
|
|
||||||
Fee business
|
53
|
57
|
(7.0)
|
|
(3)
|
(7)
|
(57.1)
|
|
||||||
Owned, leased and managed lease
|
31
|
77
|
(59.7)
|
|
(24)
|
(13)
|
(84.6)
|
|
||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
||||||
|
84
|
134
|
(37.3)
|
|
(27)
|
(20)
|
35.0
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Reportable segments (see above)
|
84
|
134
|
(37.3)
|
|
(27)
|
(20)
|
35.0
|
|
||||||
Significant liquidated damages3
|
-
|
(1)
|
-
|
|
-
|
(1)
|
-
|
|
||||||
Owned asset disposal4
|
-
|
(4)
|
-
|
|
-
|
(2)
|
-
|
|
||||||
Currency impact
|
-
|
7
|
-
|
|
-
|
(1)
|
-
|
|
||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
||||||
Underlying revenue and underlying operating profit
|
84
|
136
|
(38.2)
|
|
(27)
|
(24)
|
12.5
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Owned, leased and managed lease included in the above
|
(31)
|
(78)
|
(60.3)
|
|
24
|
16
|
50.0
|
|
||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
||||||
Underlying fee business
|
53
|
58
|
(8.6)
|
|
(3)
|
(8)
|
(62.5)
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Operating profit1
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|||||||
|
2021
|
2020
|
%
|
|
2021
|
20202
|
%
|
||||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
||||||||
Per Interim financial statements
|
|
|
|
|
|
|
|
||||||||
Reportable segments analysed as:
|
59
|
18
|
227.8
|
|
31
|
(9)
|
NM3
|
||||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||||
Fee business
|
59
|
18
|
227.8
|
|
31
|
(9)
|
NM3
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Reportable segments (see above)
|
59
|
18
|
227.8
|
|
31
|
(9)
|
NM3
|
||||||||
Significant liquidated damages
|
(6)
|
-
|
-
|
|
(6)
|
-
|
-
|
||||||||
Currency impact
|
-
|
3
|
-
|
|
-
|
(1)
|
-
|
||||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||||
Underlying revenue and underlying operating profit
|
53
|
21
|
152.4
|
|
25
|
(10)
|
NM3
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
20201
|
|
$m
|
$m
|
Revenue
|
|
|
Reportable segments analysed as fee business (see
above)
|
505
|
375
|
Significant liquidated damages
|
(6)
|
(1)
|
Captive insurance company
|
(9)
|
(10)
|
|
_____
|
_____
|
|
490
|
364
|
Operating profit
|
|
|
Reportable segments analysed as fee business (see
above)
|
224
|
75
|
Significant liquidated damages
|
(6)
|
(1)
|
Captive insurance company
|
(2)
|
(1)
|
|
_____
|
_____
|
|
216
|
73
|
|
|
|
Fee margin
|
44.1%
|
20.1%
|
|
6 months ended 30 June
|
|
|
|
|
|
2021
|
2020
|
|
$m
|
$m
|
|
|
|
Net cash from investing activities
|
(37)
|
(41)
|
Adjusted for:
|
|
|
Contract acquisition costs, net of
repayments
|
(16)
|
(26)
|
System
Fund depreciation and amortisation1
|
39
|
28
|
Deferred purchase consideration
paid
|
13
|
-
|
|
_____
|
_____
|
Net capital expenditure
|
(1)
|
(39)
|
|
_____
|
_____
|
Analysed as:
|
|
|
Capital expenditure: maintenance (including contract acquisition
costs, net of repayments of $16m (2020: $26m))
|
(25)
|
(58)
|
Capital expenditure: recyclable investments
|
(8)
|
16
|
Capital expenditure: System Fund capital investments
|
32
|
3
|
|
_____
|
_____
|
Net capital expenditure
|
(1)
|
(39)
|
|
_____
|
_____
|
|
6 months ended 30 June
|
|
|
|
|
|
2021
|
2020
|
|
$m
|
$m
|
|
|
|
Net capital expenditure
|
(1)
|
(39)
|
Add back:
|
|
|
Disposal receipts
|
(1)
|
(13)
|
Repayment of contract acquisition
costs
|
(1)
|
-
|
Distributions from associates and joint
ventures
|
-
|
(5)
|
System
Fund depreciation and amortisation1
|
(39)
|
(28)
|
|
_____
|
_____
|
Gross capital expenditure
|
(42)
|
(85)
|
|
_____
|
_____
|
Analysed as:
|
|
|
Capital
expenditure: maintenance
|
(26)
|
(58)
|
(including
gross contract acquisition costs of $17m (2020: $26m))
|
||
Capital
expenditure: recyclable investments
|
(9)
|
(2)
|
Capital
expenditure: System Fund investments
|
(7)
|
(25)
|
|
_____
|
_____
|
Gross capital expenditure
|
(42)
|
(85)
|
|
_____
|
_____
|
|
|
|
|
6 months ended 30 June
|
|
|
|
|
|
2021
|
2020
|
|
$m
|
$m
|
|
|
|
Net cash from operating activities
|
173
|
(14)
|
Adjusted for:
|
|
|
Principal
element of lease payments
|
(17)
|
(20)
|
Capital
expenditure: maintenance (excluding contract acquisition
costs)
|
(9)
|
(32)
|
|
_____
|
_____
|
Adjusted free cash flow
|
147
|
(66)
|
|
_____
|
_____
|
|
6 months ended 30 June
|
|||
|
|
|||
|
2021
|
2020
|
|
|
|
$m
|
$m
|
|
|
Net financial expenses
|
|
|
|
|
Financial income
|
1
|
3
|
|
|
Financial expenses
|
(73)
|
(61)
|
|
|
|
_____
|
_____
|
|
|
|
(72)
|
(58)
|
|
|
Adjusted for:
|
|
|
|
|
Interest payable on balances with the System Fund
|
-
|
(4)
|
|
|
|
_____
|
_____
|
|
|
|
-
|
(4)
|
|
|
|
|
|
|
|
Adjusted interest
|
(72)
|
(62)
|
|
|
|
|
|
|
|
|
|
|||
|
|
6 months ended 30 June
|
||
|
2021
|
2020
|
||
|
$m
|
$m
|
||
Operating profit/(loss)
|
138
|
(233)
|
||
Add back:
|
|
|
||
System Fund result
|
46
|
52
|
||
Operating exceptional items
|
4
|
233
|
||
Depreciation and amortisation
|
45
|
55
|
||
|
_____
|
_____
|
||
Adjusted EBITDA
|
233
|
107
|
||
|
|
|
|
|
|
6 months ended 30 June
|
|
|
|
|
|
2021
|
20201
|
|
$m
|
$m
|
Profit/(loss) available for equity holders
|
48
|
(210)
|
Adjusting items:
|
|
|
System Fund revenues and expenses
|
46
|
52
|
Interest attributable to the System Fund
|
-
|
(4)
|
Operating exceptional items
|
4
|
233
|
Fair value gains on contingent purchase
consideration
|
(1)
|
(16)
|
Tax on exceptional items
|
(1)
|
(46)
|
Exceptional tax
|
(22)
|
-
|
|
_____
|
_____
|
Adjusted earnings
|
74
|
9
|
|
|
|
Basic weighted average number of ordinary shares
(millions)
|
183
|
182
|
Adjusted earnings per ordinary share (cents)
|
40.4
|
4.9
|
|
|
|
●
|
Macro external factors, such as political and economic disruption,
or the emerging risk of infectious diseases, could have an impact
on IHG's ability to perform and grow; commercial performance,
financial loss and undermine stakeholder confidence;
|
●
|
Failure to deliver IHG's preferred brands and loyalty programme
could impact IHG's competitive positioning, IHG's growth ambitions
and reputation with guests and owners;
|
●
|
Failure to effectively attract, develop and retain talent in key
areas could impact IHG's ability to achieve its growth ambitions
and execute effectively;
|
●
|
Threats to cybersecurity and information governance could lead to
the disruption or loss of IHG's critical systems and sensitive data
and could impact IHG financially, reputationally or
operationally;
|
●
|
Failure to capitalise on innovation in booking technology, and
maintain and enhance IHG's functionality and resilience of its
channel management and technology platforms could impact IHG's
revenues and growth ambitions;
|
●
|
Failure to manage risks associated with delivering investment
effectiveness and efficiency may impact commercial performance,
lead to financial loss, and undermine stakeholder
confidence;
|
●
|
Failure to ensure contractual, legal, regulatory and ethical
compliance would impact IHG operationally and
reputationally;
|
●
|
Failure to effectively safeguard the safety and security of
colleagues and guests and respond appropriately to operational risk
could result in reputational and / or financial damage, and
undermine stakeholder confidence;
|
●
|
A material breakdown in financial management and control systems
could lead to increased public scrutiny, regulatory investigation
and litigation; and
|
●
|
Environment and social mega-trends have the potential to impact
performance and growth in key markets.
|
●
|
The condensed set of Financial Statements has been prepared in
accordance with UK-adopted IAS 34;
|
●
|
The Interim Management Report includes a fair review of the
important events during the first six months, and their impact on
the financial statements and a description of the principal risks
and uncertainties for the remaining six months of the year, as
required by DTR 4.2.7R; and
|
●
|
The Interim Management Report includes a fair review of related
party transactions and changes therein, as required by DTR
4.2.8R.
|
|
2021
6 months ended
30 June
$m
|
2020
6 months ended
30 June
*$m
|
|
Continuing operations
|
|
|
|
|
|
|
|
Revenue from fee business
|
505
|
375
|
|
Revenue from owned, leased and managed lease hotels
|
60
|
113
|
|
System Fund revenues
|
378
|
385
|
|
Reimbursement of costs
|
236
|
375
|
|
|
_____
|
_____
|
|
Total revenue (notes 3 and 4)
|
1,179
|
1,248
|
|
|
|
|
|
Cost of sales and administrative expenses
|
(321)
|
(347)
|
|
System Fund expenses
|
(424)
|
(437)
|
|
Reimbursed costs
|
(236)
|
(375)
|
|
Share of losses of associates and joint ventures
|
(5)
|
(6)
|
|
Other operating income
|
2
|
12
|
|
Depreciation and amortisation
|
(45)
|
(55)
|
|
Impairment loss on financial assets
|
(8)
|
(78)
|
|
Other impairment charges (note 5)
|
(4)
|
(195)
|
|
|
_____
|
_____
|
|
Operating profit/(loss) (note 3)
|
138
|
(233)
|
|
|
|
|
|
Operating profit/(loss) analysed as:
|
|
|
|
Operating profit before System Fund and exceptional
items
|
188
|
52
|
|
System Fund
|
(46)
|
(52)
|
|
Operating exceptional items (note 5)
|
(4)
|
(233)
|
|
|
_____
|
_____
|
|
|
138
|
(233)
|
|
|
|
|
|
Financial income
|
1
|
3
|
|
Financial expenses
|
(73)
|
(61)
|
|
Fair value gains on contingent purchase consideration
|
1
|
16
|
|
|
_____
|
_____
|
|
Profit/(loss) before tax
|
67
|
(275)
|
|
|
|
|
|
Tax (note 6)
|
(19)
|
65
|
|
|
_____
|
_____
|
|
Profit/(loss) for the period
|
48
|
(210)
|
|
|
_____
|
_____
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Equity holders of the parent
|
48
|
(210)
|
|
_____
|
_____
|
|
Earnings/(loss) per ordinary share (note 7)
|
|
|
|
Continuing and total operations:
|
|
|
|
|
Basic
|
26.2¢
|
(115.4)¢
|
|
Diluted
|
26.1¢
|
(115.4)¢
|
|
|
|
|
* Amended for presentational changes (see note 1).
|
|
2021
6 months ended
30 June
$m
|
2020
6 months ended
30 June
$m
|
|
|
|
|
|
Profit/(loss) for the period
|
48
|
(210)
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
Items that may be subsequently reclassified to profit or
loss:
|
|
|
|
|
(Losses)/gains
on cash flow hedges, including related tax charge of $3m (2020: tax
credit of $2m)
|
(54)
|
28
|
|
Costs of hedging
|
2
|
(1)
|
|
Hedging losses/(gains) reclassified to financial
expenses
|
66
|
(36)
|
|
Exchange (losses)/gains on retranslation of foreign operations,
including related tax credit of $nil (2020: $1m)
|
(38)
|
110
|
|
_____
|
_____
|
|
|
(24)
|
101
|
|
Items that will not be reclassified to profit or loss:
|
|
|
|
|
Gains/(losses) on equity instruments classified as fair value
through other comprehensive income, net of related tax charge of
$1m (2020: tax credit of $4m)
|
9
|
(39)
|
|
Re-measurement
gains/(losses) on defined benefit plans, including related tax
credit of $1m (2020: net of related tax credit of
$2m)
|
5
|
(5)
|
|
Tax related to pension contributions
|
2
|
2
|
|
|
_____
|
_____
|
|
|
16
|
(42)
|
|
_____
|
_____
|
|
Total other comprehensive (loss)/income for the period
|
(8)
|
59
|
|
|
_____
|
_____
|
|
Total comprehensive income/(loss) for the period
|
40
|
(151)
|
|
|
_____
|
_____
|
|
Attributable to:
|
|
|
|
|
Equity holders of the parent
|
40
|
(151)
|
|
_____
|
_____
|
|
|
|
|
|
6 months ended 30 June 2021
|
|||||
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
At beginning of the period
|
156
|
(2,581)
|
568
|
8
|
(1,849)
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period
|
-
|
(15)
|
55
|
-
|
40
|
|
Transfer of treasury shares to employee share trusts
|
-
|
(14)
|
14
|
-
|
-
|
|
Release of own shares by employee share trusts
|
-
|
13
|
(13)
|
-
|
-
|
|
Equity-settled share-based cost
|
-
|
-
|
19
|
-
|
19
|
|
Tax related to share schemes
|
-
|
-
|
1
|
-
|
1
|
|
Exchange adjustments
|
3
|
(3)
|
-
|
-
|
-
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
At end of the period
|
159
|
(2,600)
|
644
|
8
|
(1,789)
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
|
|
|
|
|
|
6 months ended 30 June 2020
|
|||||
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
At beginning of the period
|
151
|
(2,433)
|
809
|
8
|
(1,465)
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the period
|
-
|
62
|
(213)
|
-
|
(151)
|
|
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
|
-
|
-
|
12
|
-
|
12
|
|
Exchange adjustments
|
(11)
|
11
|
-
|
-
|
-
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
At end of the period
|
140
|
(2,356)
|
604
|
8
|
(1,604)
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
|
|
|
|
|
*
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.
|
All items within total comprehensive income/(loss) are shown net of
tax.
|
|
2021
30 June
|
2020
31 December
|
|
$m
|
$m
|
ASSETS
|
|
|
Goodwill and other intangible assets
|
1,248
|
1,293
|
Property, plant and equipment
|
142
|
201
|
Right-of-use assets
|
286
|
303
|
Investment in associates
|
76
|
81
|
Other financial assets
|
184
|
168
|
Derivative financial instruments
|
-
|
5
|
Deferred compensation plan investments
|
248
|
236
|
Non-current tax receivable
|
17
|
15
|
Deferred tax assets
|
140
|
113
|
Contract costs
|
72
|
70
|
Contract assets
|
312
|
311
|
|
______
|
______
|
Total non-current assets
|
2,725
|
2,796
|
|
______
|
______
|
Inventories
|
4
|
5
|
Trade and other receivables
|
564
|
514
|
Current tax receivable
|
27
|
18
|
Other financial assets
|
-
|
1
|
Cash and cash equivalents
|
988
|
1,675
|
Contract costs
|
5
|
5
|
Contract assets
|
25
|
25
|
|
______
|
______
|
Total current assets
|
1,613
|
2,243
|
Assets classified as held for sale (note 14)
|
47
|
-
|
|
______
|
______
|
Total assets
|
4,385
|
5,039
|
|
_____
|
_____
|
LIABILITIES
|
|
|
Loans and other borrowings
|
(53)
|
(869)
|
Lease liabilities
|
(31)
|
(34)
|
Trade and other payables
|
(481)
|
(466)
|
Deferred revenue
|
(517)
|
(452)
|
Provisions
|
(20)
|
(16)
|
Current tax payable
|
(30)
|
(30)
|
|
______
|
______
|
Total current liabilities
|
(1,132)
|
(1,867)
|
|
______
|
______
|
Loans and other borrowings
|
(2,913)
|
(2,898)
|
Lease liabilities
|
(401)
|
(416)
|
Derivative financial instruments
|
(60)
|
(18)
|
Retirement benefit obligations
|
(98)
|
(103)
|
Deferred compensation plan liabilities
|
(248)
|
(236)
|
Trade and other payables
|
(89)
|
(94)
|
Deferred revenue
|
(1,087)
|
(1,117)
|
Provisions
|
(45)
|
(44)
|
Deferred tax liabilities
|
(98)
|
(95)
|
|
______
|
______
|
Total non-current liabilities
|
(5,039)
|
(5,021)
|
Liabilities classified as held for sale (note 14)
|
(3)
|
-
|
|
______
|
______
|
Total liabilities
|
(6,174)
|
(6,888)
|
|
_____
|
_____
|
Net liabilities
|
(1,789)
|
(1,849)
|
|
_____
|
_____
|
EQUITY
|
|
|
IHG shareholders' equity
|
(1,797)
|
(1,857)
|
Non-controlling interest
|
8
|
8
|
|
______
|
______
|
Total equity
|
(1,789)
|
(1,849)
|
|
_____
|
_____
|
|
|
|
|
2021
6 months ended
30 June
|
2020
6 months ended
30 June
|
|
|
$m
|
$m
|
|
|
|
|
|
Profit/(loss) for the period
|
48
|
(210)
|
|
Adjustments (note 9)
|
211
|
232
|
|
|
_____
|
_____
|
|
Cash flow from operations
|
259
|
22
|
|
Interest paid
|
(40)
|
(34)
|
|
Interest received
|
1
|
1
|
|
Tax paid on operating activities
|
(47)
|
(3)
|
|
|
_____
|
_____
|
|
Net cash from operating activities
|
173
|
(14)
|
|
|
_____
|
_____
|
|
Cash flow from investing activities
|
|
|
|
Purchase of property, plant and equipment
|
(3)
|
(21)
|
|
Purchase of intangible assets
|
(13)
|
(36)
|
|
Investment in other financial assets
|
(9)
|
(2)
|
|
Deferred purchase consideration paid
|
(13)
|
-
|
|
Distributions from associates and joint ventures
|
-
|
5
|
|
Disposal of hotel assets, net of costs and cash
disposed
|
-
|
1
|
|
Repayments of other financial assets
|
1
|
12
|
|
|
_____
|
_____
|
|
Net cash from investing activities
|
(37)
|
(41)
|
|
|
_____
|
_____
|
|
Cash flow from financing activities
|
|
|
|
Principal element of lease payments
|
(17)
|
(20)
|
|
(Repayment)/issue of commercial paper
|
(828)
|
738
|
|
Decrease in other borrowings
|
-
|
(125)
|
|
|
_____
|
_____
|
|
Net cash from financing activities
|
(845)
|
593
|
|
|
_____
|
_____
|
|
Net movement in cash and cash equivalents, net of overdrafts, in
the period
|
(709)
|
538
|
|
|
|
|
|
Cash and cash equivalents, net of overdrafts, at beginning of the
period
|
1,624
|
108
|
|
Exchange rate effects
|
20
|
(14)
|
|
|
_____
|
_____
|
|
Cash and cash equivalents, net of overdrafts, at end of the
period
|
935
|
632
|
|
|
_____
|
_____
|
|
|
|
||
|
|
|
|
1.
|
Basis of preparation
|
|
|
These condensed interim financial statements have been prepared in
accordance with the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority and UK-adopted IAS
34 'Interim Financial Reporting'. Other than the changes described
below, they have been prepared on a consistent basis using the same
accounting policies and methods of computation set out in the
InterContinental Hotels Group PLC ('the Group' or 'IHG') Annual
Report and Form 20-F for the year ended 31 December
2020.
These condensed interim financial statements are unaudited and do
not constitute statutory accounts of the Group within the meaning
of Section 435 of the Companies Act 2006. The auditors have carried
out a review of the financial information in accordance with the
guidance contained in ISRE (UK and Ireland) 2410 'Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity' issued by the Auditing Practices Board.
Financial information for the year ended 31 December 2020 has been
extracted from the Group's published financial statements for that
year which were 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 and which have been filed
with the Registrar of Companies. The Group's previous auditor,
Ernst & Young LLP, has reported on those financial statements.
Its report was unqualified with no reference to matters to which
Ernst & Young LLP drew attention by way of emphasis and no
statement under s498(2) or s498(3) of the Companies Act 2006. On 31
December 2020, IFRSs as adopted by the European Union at that date
were brought into UK law and became UK-adopted international
accounting standards, with future changes being subject to
endorsement by the UK Endorsement Board. The Group transitioned to
UK-adopted international accounting standards in its consolidated
financial statements on 1 January 2021. There was no impact or
change in accounting policies from the transition.
There are no changes in the Group's critical judgements, estimates
and assumptions from those disclosed in the 2020 Annual Report and
Form 20-F. An updated sensitivity related to expected credit losses
is included in note 12(e).
The Group has adopted 'Interest Rate Benchmark Reform - Phase 2 -
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16' from 1
January 2021. These requirements have had no impact on the Group's
reported financial performance or position.
Presentational changes
In the Group's interim financial statements for the six months
ended 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 were due to Covid-19 resulted in none of the full year
$40m impairment of trade receivables being presented within
exceptional items for the year ended 31 December 2020. Accordingly,
the presentation of the 2020 Group income statement has been
amended within these condensed interim financial statements with no
impact to operating loss. The analysis of tax has been adjusted
reflecting this change, with no overall impact to the Group's loss
for the period. This change is consistent with the presentation in
the 2020 Annual Report and Form 20-F.
Going concern
The impact of the Covid-19 pandemic on the hospitality industry has
been severe, however, 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 continued to manage cash
outflows closely during the first half of 2021, including staff
costs, professional fees and capital expenditure. These actions,
together with the ongoing suspension of the ordinary dividend,
continue to mitigate the significant reduction in fee revenue and
System Fund assessments. The Group reported net cash
from operating activities in the first half of $173m.
In 2020 the Group agreed amendments of existing covenants on its
syndicated and bilateral revolving credit facilities ('the bank
facilities') until December 2022. 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 (see note 10) 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. The covenants at December
2022 have been amended to require less than 6.5x for the leverage
ratio and greater than 2.0x for interest cover. The bank
facilities mature in September 2023.
In March 2021 the Group used cash reserves to repay £600m
commercial paper under the UK's Covid Corporate Financing Facility
('CCFF').
As at 30 June 2021 the Group had total liquidity of $2,235m,
comprising $1,350m of undrawn bank facilities and $885m of cash and
cash equivalents (net of overdrafts and restricted
cash).
A period of 18 months has been used, from 1 July 2021 to 31
December 2022, to complete the going concern assessment. There
remains a wide range of possible planning scenarios over the going
concern period. In adopting the going concern basis for preparing
these condensed interim financial statements the Directors have
considered a scenario (the 'Base Case') which is based on continued
improvement in demand during 2021 as vaccines are rolled out, and a
steady improvement to the end of 2022 by when RevPAR is expected to
reach 90% of 2019 levels. The only debt maturity in the
period under consideration is the £173m 3.875% November 2022
Bond which is assumed to be repaid with cash on maturity.
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. A large
number of the Group's principal risks, for example brands and
loyalty or investment efficiency, would result in an impact on
RevPAR which is one of the sensitivities assessed against the
headroom available in the Base Case. Other principal risks
that could result in a large one-off incident that has a material
impact on cash flow have also been considered, for example a
cybersecurity event or other legal or regulatory matters. The
assumptions applied in the Base Case scenario are consistent with
those used for Group planning purposes and for assessing impairment
triggers and recoverability of deferred tax assets.
The Directors have also reviewed a 'Downside Case' scenario which
is based on a severe but plausible scenario. This assumes the
performance during the second half of 2021 is at a similar level to
the second half of 2020, with the recovery to 2019 levels starting
slowly in 2022 to achieve RevPAR of 55% of 2019 levels for the 2022
full year. 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 and 31
December 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 $740m at 31 December 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 and
31 December 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 31 December 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 these condensed interim financial
statements.
|
|
2.
|
Exchange rates
|
|
The
results of operations have been translated into US dollars at the
average rates of exchange for the period. In the case of sterling,
the translation rate is $1 = £0.72 (2020: $1 = £0.79). In
the case of the euro, the translation rate is $1 = €0.83
(2020: $1 = €0.91).
Assets
and liabilities have been translated into US dollars at the rates
of exchange on the last day of the period. In the case of sterling,
the translation rate is $1 = £0.72 (31 December 2020: $1 =
£0.73; 30 June 2020: $1 = £0.82). In the case
of the euro, the translation rate is $1 = €0.84 (31 December
2020: $1 = €0.81; 30 June 2020: $1 =
€0.89).
|
3.
|
Segmental Information
|
|
|
|
Revenue
|
2021
6 months ended
30 June
|
2020
6 months ended
30 June
|
|
|
$m
|
$m
|
|
|
|
|
|
Americas
|
325
|
262
|
|
EMEAA
|
84
|
134
|
|
Greater China
|
59
|
18
|
|
Central
|
97
|
74
|
|
|
_____
|
_____
|
|
Revenue from reportable segments
|
565
|
488
|
|
System Fund revenues
|
378
|
385
|
|
Reimbursement of costs
|
236
|
375
|
|
|
_____
|
_____
|
|
Total revenue
|
1,179
|
1,248
|
|
|
_____
|
_____
|
|
|
|
|
|
Profit/(loss)
|
2021
6 months ended
30 June
$m
|
2020
6 months ended
30 June*
$m
|
|
|
|
|
|
Americas
|
224
|
142
|
|
EMEAA
|
(27)
|
(20)
|
|
Greater China
|
31
|
(9)
|
|
Central
|
(40)
|
(61)
|
|
|
_____
|
_____
|
|
Operating profit from reportable segments
|
188
|
52
|
|
System Fund
|
(46)
|
(52)
|
|
Operating exceptional items (note 5)
|
(4)
|
(233)
|
|
|
_____
|
_____
|
|
Operating profit/(loss)
|
138
|
(233)
|
|
Net financial expenses
|
(72)
|
(58)
|
|
Fair value gains on contingent purchase consideration
|
1
|
16
|
|
|
_____
|
_____
|
|
Profit/(loss) before tax
|
67
|
(275)
|
|
|
_____
|
_____
|
|
* Amended for presentational changes (see note 1).
|
4.
|
Revenue
|
|||||
|
Disaggregation of revenue
|
|||||
|
6 months ended 30 June 2021
|
|
|
|
|
|
|
Americas
$m
|
EMEAA
$m
|
Greater China
$m
|
Central
$m
|
Total
$m
|
|
|
|
|
|
|
|
|
Franchise
and base management fees
|
292
|
42
|
44
|
-
|
378
|
|
Incentive
management fees
|
4
|
11
|
15
|
-
|
30
|
|
Central
revenue
|
-
|
-
|
-
|
97
|
97
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
Revenue
from fee business
|
296
|
53
|
59
|
97
|
505
|
|
Revenue
from owned, leased and managed lease hotels
|
29
|
31
|
-
|
-
|
60
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
325
|
84
|
59
|
97
|
565
|
|
|
_____
|
_____
|
_____
|
_____
|
|
|
System
Fund revenues
|
|
|
|
|
378
|
|
Reimbursement
of costs
|
|
|
|
|
236
|
|
|
|
|
|
|
_____
|
|
Total revenue
|
|
|
|
|
1,179
|
|
|
|
|
|
|
_____
|
6 months ended 30 June 2020
|
|
|
|
|
|
|
Americas
$m
|
EMEAA
$m
|
Greater China
$m
|
Central
$m
|
Total
$m
|
|
|
|
|
|
|
Franchise
and base management fees
|
224
|
51
|
17
|
-
|
292
|
Incentive
management fees
|
2
|
6
|
1
|
-
|
9
|
Central
revenue
|
-
|
-
|
-
|
74
|
74
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
Revenue
from fee business
|
226
|
57
|
18
|
74
|
375
|
Revenue
from owned, leased and managed lease hotels
|
36
|
77
|
-
|
-
|
113
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
262
|
134
|
18
|
74
|
488
|
|
_____
|
_____
|
_____
|
_____
|
|
System
Fund revenues
|
|
|
|
|
385
|
Reimbursement
of costs
|
|
|
|
|
375
|
|
|
|
|
|
_____
|
Total revenue
|
|
|
|
|
1,248
|
|
|
|
|
|
_____
|
|
At
30 June 2021, the maximum exposure remaining under performance
guarantees was $69m (31 December 2020: $72m). In estimating
amounts due under performance guarantees, the Group has considered
'force majeure' provisions within its management
agreements.
|
5.
|
Exceptional items
|
||||
|
|
2021
6 months ended
30 June
$m
|
2020
6 months ended
30 June*
$m
|
||
|
|
|
|
|
|
|
Cost of sales and administrative expenses:
|
|
|
||
|
|
Derecognition of right-of-use assets and lease
liabilities
|
-
|
22
|
|
|
|
Provision for onerous contractual expenditure
|
-
|
(10)
|
|
|
|
Reorganisation costs
|
-
|
(4)
|
|
|
|
Acquisition and integration costs
|
-
|
(3)
|
|
|
|
Provision for guarantees on third party debt
|
-
|
(2)
|
|
|
|
|
_____
|
_____
|
|
|
|
|
-
|
3
|
|
|
|
|
|
|
|
|
Impairment loss on financial assets
|
-
|
(41)
|
||
|
|
|
|
|
|
|
Other impairment charges:
|
|
|
||
|
|
Intangible assets
|
-
|
(47)
|
|
|
|
Property, plant and equipment
|
-
|
(85)
|
|
|
|
Right-of-use assets
|
-
|
(5)
|
|
|
|
Investment in associates
|
(4)
|
(21)
|
|
|
|
Contract assets
|
-
|
(37)
|
|
|
|
|
_____
|
_____
|
|
|
|
|
(4)
|
(195)
|
|
|
|
|
_____
|
_____
|
|
|
Total operating exceptional items
|
(4)
|
(233)
|
||
|
|
_____
|
_____
|
||
|
|
|
|
||
|
Fair value gains on contingent purchase consideration
|
-
|
21
|
||
|
|
_____
|
_____
|
||
|
|
|
|
||
|
Tax on exceptional items
|
1
|
46
|
||
|
Exceptional tax
|
22
|
-
|
||
|
|
_____
|
_____
|
||
|
Tax (note 6)
|
23
|
46
|
||
|
|
_____
|
_____
|
||
|
* Amended for
presentational changes (see note 1).
Other impairment charges: Investment in associates
Relates to the reversal of the $4m fair value gain recorded in 2020
on the put option over part of the Group's investment in the
InterContinental Barclay hotel. The classification as exceptional
is consistent with the presentation of the initial gain (included
within the net impairment charge in 2020).
Tax
An exceptional tax credit of $22m has been recorded as a result of
the enactment of a change to the UK rate of corporate income tax
from 19% to 25%, effective 1 April 2023. The change has
resulted in the remeasurement of those UK
deferred tax assets and liabilities which are forecast to be
utilised or to crystallise after this effective date, using the
higher tax rate. A further credit of $6m has been recorded
within the Group statement of comprehensive income in respect of
movements in deferred tax assets originally recorded
there.
|
||||
|
|
|
|
|
|
6.
|
Tax
|
|
|
2021
6 months ended
30 June
|
2020
6 months ended
30 June*
|
|||||
|
|
Profit/(loss)
$m
|
Tax
$m
|
Tax
rate
|
Loss
$m
|
Tax
$m
|
Tax
rate
|
|
|
|
|
|
|
|
|
|
|
|
Before
exceptional items and System Fund
|
117
|
(42)
|
36%
|
(11)
|
19
|
173%
|
|
|
System
Fund
|
(46)
|
-
|
|
(52)
|
-
|
|
|
|
Exceptional
items (note 5)
|
(4)
|
23
|
|
(212)
|
46
|
|
|
|
|
_____
|
_____
|
|
_____
|
_____
|
|
|
|
|
67
|
(19)
|
|
(275)
|
65
|
|
|
|
|
_____
|
_____
|
|
_____
|
_____
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysed as:
|
|
|
|
|
|
|
|
|
|
Current tax
|
|
(43)
|
|
|
(2)
|
|
|
|
Deferred tax
|
|
24
|
|
|
67
|
|
|
|
|
_____
|
|
|
_____
|
|
|
|
|
|
(19)
|
|
|
65
|
|
|
|
|
|
_____
|
|
|
_____
|
|
|
|
Further analysed as:
|
|
|
|
|
|
|
|
|
|
UK tax
|
|
23
|
|
|
25
|
|
|
|
Foreign tax
|
|
(42)
|
|
|
40
|
|
|
|
|
_____
|
|
|
_____
|
|
|
|
|
|
(19)
|
|
|
65
|
|
|
|
|
|
_____
|
|
|
_____
|
|
|
* Amended for presentational changes (see note 1).
|
|
The tax charge includes one-off credits of $23m, predominantly in
respect of the planned increase in the UK Corporation Tax rate (see
note 5). The remaining tax has been calculated by applying a
blended effective tax rate of 36% to profit before exceptional
items and System Fund. This blended effective rate represents
the weighting of the annual tax rates of the Group's key
territories using corporate income tax rates substantively enacted
at 30 June 2021 to provide the best estimate for the full financial
year. It is higher than the 2021 UK Corporation Tax rate of
19% due to higher taxed overseas profits (particularly in the US)
and a distortive impact of unrelieved foreign taxes and other
non-tax deductible expenses due to the current profit
base.
The deferred tax asset has increased from $113m to $140m in the
period and comprises $129m (31 December 2020: $103m) in the UK
and $11m (31 December 2020: $10m) in respect of other
territories. The deferred tax asset has been recognised based
upon forecasts consistent with those used in the going concern
assessment. The planned change to the UK Corporation Tax rate
also increased the Group's unrecognised deferred tax asset ($200m
at 31 December 2020) by $34m.
|
7.
|
Earnings/(loss) per ordinary share
|
||
|
|
2021
6 months ended
30 June
|
2020
6 months ended
30 June
|
|
Basic earnings/(loss) per ordinary share
|
|
|
|
Profit/(loss) available for equity holders ($m)
|
48
|
(210)
|
|
Basic weighted average number of ordinary shares
(millions)
|
183
|
182
|
|
Basic earnings/(loss) per ordinary share (cents)
|
26.2
|
(115.4)
|
|
|
_____
|
_____
|
|
Diluted earnings/(loss) per ordinary share
|
|
|
|
Profit/(loss) available for equity holders ($m)
|
48
|
(210)
|
|
Diluted weighted average number of ordinary shares
(millions)
|
184
|
182
|
|
Diluted earnings/(loss) per ordinary share (cents)
|
26.1
|
(115.4)
|
|
|
_____
|
_____
|
|
The diluted weighted average number of ordinary shares is
calculated as:
|
||
|
|
2021
millions
|
2020
millions
|
|
Basic weighted average number of ordinary shares
|
183
|
182
|
|
Dilutive potential ordinary shares
|
1
|
-
|
|
|
______
|
______
|
|
|
184
|
182
|
|
|
_____
|
_____
|
8.
|
Dividends
|
|
On 20 March 2020, the Board withdrew its recommendation of a final
dividend in respect of 2019 of 85.9¢ per share (approximately
$150m). No further dividends have been paid or
proposed.
|
9.
|
Reconciliation of profit/(loss) for the period to cash flow from
operations
|
|
2021
6 months ended
30 June
|
2020
6 months ended
30 June
|
|
|
$m
|
$m
|
|
|
|
|
|
Profit/(loss) for the period
|
48
|
(210)
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
Net
financial expenses
|
72
|
58
|
|
Fair
value gains on contingent purchase consideration
|
(1)
|
(16)
|
|
Income
tax charge/(credit)
|
19
|
(65)
|
|
|
|
|
|
Operating
profit adjustments:
|
|
|
|
Other
impairment charges
|
4
|
195
|
|
Other
operating exceptional items
|
-
|
(3)
|
|
Impairment
loss on financial assets
|
8
|
78
|
|
Depreciation
and amortisation
|
45
|
55
|
|
|
_____
|
_____
|
|
|
57
|
325
|
|
|
|
|
|
Contract
assets deduction in revenue
|
16
|
13
|
|
Share-based
payments cost
|
14
|
10
|
|
Share
of losses of associates and joint ventures
|
5
|
6
|
|
|
_____
|
_____
|
|
|
35
|
29
|
|
|
|
|
|
System
Fund adjustments:
|
|
|
|
System
Fund depreciation and amortisation
|
41
|
30
|
|
System
Fund impairment loss on financial assets
|
3
|
22
|
|
System
Fund share-based payments cost
|
6
|
5
|
|
System
Fund share of losses of associates
|
1
|
-
|
|
|
_____
|
_____
|
|
|
51
|
57
|
|
|
|
|
|
Working
capital and other adjustments:
|
|
|
|
Increase
in deferred revenue
|
35
|
14
|
|
Changes
in working capital
|
(29)
|
(107)
|
|
Other
adjustments
|
-
|
(7)
|
|
|
_____
|
_____
|
|
|
6
|
(100)
|
|
|
|
|
|
Cash
flows relating to exceptional items
|
(12)
|
(30)
|
|
Contract
acquisition costs
|
(16)
|
(26)
|
|
|
_____
|
_____
|
Total
adjustments
|
211
|
232
|
|
|
_____
|
_____
|
|
Cash flow from operations
|
259
|
22
|
|
|
_____
|
_____
|
10.
|
Net Debt
|
||
|
|
2021
30 June
|
2020
31 December
|
|
|
$m
|
$m
|
|
|
|
|
|
Cash and cash equivalents*
|
988
|
1,675
|
|
Loans and other borrowings - current
|
(53)
|
(869)
|
|
Loans and other borrowings - non-current
|
(2,913)
|
(2,898)
|
|
Lease liabilities - current
|
(31)
|
(34)
|
|
Lease liabilities - non-current
|
(401)
|
(416)
|
|
Lease liabilities - classified as held for sale (note
14)
|
(3)
|
-
|
|
Derivative financial instruments hedging debt values
|
(45)
|
13
|
|
|
_____
|
_____
|
|
Net debt**
|
(2,458)
|
(2,529)
|
|
|
_____
|
_____
|
|
* Of which $123m (31 December 2020: $104m) is cash at bank and in
hand.
** See
the Use of Non-GAAP measures section in the Interim Management
Report.
|
||
|
In the Group statement of cash flows, cash and cash equivalents is
presented net of $53m bank overdrafts (31 December 2020:
$51m).
|
|
Cash and cash equivalents includes $5m (31 December 2020: $5m)
restricted for use on capital expenditure under hotel lease
agreements and therefore not available for wider use by the Group.
An additional $45m (31 December 2020: $44m) is held within
countries from which funds are not currently able to be repatriated
to the Group's central treasury company.
|
||
|
Syndicated and Bilateral Facilities
The Group's $1,275m revolving syndicated bank facility and $75m
revolving bilateral facility were both undrawn at 30 June 2021 and
31 December 2020.
The Group's covenant requirements are as set out in the 2020 Annual
Report and Form 20-F. The following table details performance
against covenant tests, which have been waived until 31 December
2021 and relaxed for test dates in 2022. 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:
|
||
|
|
2021
30 June
|
2020
31 December
|
|
|
|
|
|
Covenant EBITDA, $m
|
412
|
272
|
|
Covenant net debt, $m
|
2,323
|
2,375
|
|
Covenant interest payable, $m
|
129
|
111
|
|
Leverage
|
5.64
|
8.73
|
|
Interest cover
|
3.19
|
2.45
|
|
Liquidity, $m
|
2,235
|
2,925
|
11.
|
Movement in net debt
|
|||
|
|
2021
6 months ended
30 June
|
2020
6 months ended
30 June
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents, net of
overdrafts
|
(709)
|
538
|
|
|
Add back financing cash flows in respect of other components of net
debt:
|
|
|
|
|
|
Principal element of lease payments
|
17
|
20
|
|
|
Repayment/(issue) of commercial paper
|
828
|
(738)
|
|
|
Decrease in other borrowings
|
-
|
125
|
|
|
_____
|
_____
|
|
|
Decrease/(increase) in net debt arising from cash
flows
|
136
|
(55)
|
|
|
|
|
|
|
|
Other movements:
|
|
|
|
|
|
Lease liabilities
|
(3)
|
67
|
|
|
Increase in accrued interest
|
(25)
|
(15)
|
|
|
Disposals
|
-
|
19
|
|
|
Exchange and other adjustments
|
(37)
|
134
|
|
|
_____
|
_____
|
|
|
Decrease in net debt
|
71
|
150
|
|
|
|
|
|
|
|
Net debt at beginning of the period
|
(2,529)
|
(2,665)
|
|
|
|
_____
|
_____
|
|
|
Net debt at end of the period
|
(2,458)
|
(2,515)
|
|
|
|
_____
|
_____
|
12.
|
Financial
instruments
|
|
|
a)
|
Fair value hierarchy
The following table provides the carrying value (which is equal to
the fair value) and position in the fair value measurement
hierarchy of the Group's financial assets and liabilities measured
and recognised at fair value on a recurring basis.
|
|
|
Value
|
|||
|
|
Level 1
$m
|
Level 2
$m
|
Level 3
$m
|
Total
$m
|
|
Financial assets
|
|
|
|
|
|
Equity securities*
|
-
|
-
|
99
|
99
|
|
Money market funds**
|
577
|
-
|
-
|
577
|
|
Deferred compensation plan investments
|
248
|
-
|
-
|
248
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
Derivative financial instruments
|
-
|
(60)
|
-
|
(60)
|
|
Contingent purchase consideration***
|
-
|
-
|
(78)
|
(78)
|
|
Deferred compensation plan liabilities
|
(248)
|
-
|
-
|
(248)
|
|
* Included in 'other financial assets'.
** Included in 'other financial assets' and 'cash and cash
equivalents'.
*** Included in 'trade and other payables'.
The Group determines whether transfers have occurred between levels
in the fair value hierarchy by reassessing categorisation (based on
the lowest level of input that is significant to the fair value
measurement as a whole) at the end of each reporting
period.
There were no transfers between Level 1 and Level 2 fair value
measurements during the period and no transfers into or out of
Level 3.
|
b)
|
Valuation techniques
The valuation techniques and types of input applied by the Group
for the six months ended 30 June 2021 are consistent with
those disclosed within the 2020 Annual Report and Form
20-F. Changes in reported amounts are primarily caused by payments
made and received, changes in market inputs, such as discount
rates, and the impact of the time value of money.
Within Level 2 financial instruments, derivative financial
liabilities have increased to $60m driven by movements in
sterling:euro exchange rates which impact the valuation of currency
swaps.
Set out below are the significant unobservable inputs to the Level
3 valuations as at 30 June 2021.
Equity securities
The significant unobservable inputs used to determine the fair
value of the unquoted equity securities are RevPAR growth, pre-tax
discount rate (which ranged from 6.4% to 10.0%), and a
non-marketability factor (which ranged from 20% to
30%).
Applying a one-year slower/faster RevPAR recovery period would
result in a $8m (decrease)/increase in fair value respectively. A
1% increase/(decrease) in the discount rate would result in a
$14m/$18m (decrease)/increase in fair value respectively. A
five-percentage point increase/(decrease) in the non-marketability
factor would result in a $6m (decrease)/increase in fair
value.
Derivative financial instruments - put option
The put option over part of the Group's investment in the Barclay
associate has been valued as the excess of the amount receivable
under the option (which is based on the Group's capital invested to
date) over fair value, calculated with reference to an appraisal
performed by a professional external valuer.
Contingent purchase consideration
Principally comprises the present value of the expected amounts
payable on exercise of put and call options to acquire the
remaining 49% shareholding in Regent.
|
|
The significant unobservable inputs are the projected trailing
revenues and the date of exercising the options. If the annual
trailing revenues were to exceed the floor by 10%, the amount of
the contingent purchase consideration recognised in the financial
statements would increase by $7m. If the date for exercising the
options is assumed to be 2033, the amount of the undiscounted
contingent purchase consideration would be $86m.
|
||||
c)
|
Reconciliation of financial
instruments classified as Level 3
|
||||
|
|
Equity
securities
$m
|
Derivative financial instruments
$m
|
Contingent purchase consideration
$m
|
|
|
|
|
|
|
|
|
At 1 January 2021
|
88
|
4
|
(79)
|
|
|
Additions
|
1
|
-
|
-
|
|
|
Change in fair value
|
10
|
(4)
|
1
|
|
|
|
_____
|
_____
|
_____
|
|
|
At 30 June 2021
|
99
|
-
|
(78)
|
|
|
|
_____
|
_____
|
_____
|
|
|
|
|
|||
|
Changes in the fair value of equity securities are recognised
within 'gains/losses on equity instruments classified as fair value
through other comprehensive income' in the Group statement of
comprehensive income.
Changes in the fair value of derivative financial instruments
classified as Level 3 and contingent purchase consideration are
recognised within 'other impairment charges' and 'fair value gains
on contingent purchase consideration', respectively within the
Group income statement.
None of these fair value changes are realised.
|
||||
|
|
|
|
|
|
d)
|
Fair value of other financial instruments
The Group also holds a number of financial instruments which are
not measured at fair value in the Group statement of financial
position. With the exception of the Group's bonds, their fair
values are not materially different to their carrying amounts,
since the interest receivable or payable is either close to current
market rates or the instruments are short-term in nature. The
Group's bonds, which are classified as Level 1 fair value
measurements, have a carrying value of $2,913m and a fair value of
$3,058m.
The Group did not measure any financial assets or liabilities at
fair value on a non-recurring basis as at 30 June
2021.
|
||||
e)
|
Estimation uncertainty related to financial
instruments
Consistent with 31 December 2020, the calculation of expected
credit losses on trade receivables is a significant estimate.
Although the collection of trade receivables has improved compared
to the prior year, there remains a significant amount of older debt
which has not yet been collected. A 10% recovery of amounts which
were due for collection in 2020 would reduce the provision by
approximately $8m.
|
||||
13.
|
Commitments, contingencies and guarantees
|
||||
|
At 30 June 2021, the amount contracted for but not provided for in
the financial statements for expenditure on property, plant and
equipment and intangible assets was $19m (31 December 2020:
$19m).
In June 2021, the Company signed an agreement to lease a new Global
Headquarters in the UK for a period of 15 years at an average
annual rental of approximately $3m. The lease had not
commenced at 30 June 2021.
From time to time, the Group is subject to legal proceedings the
ultimate outcome of each being always subject to many uncertainties
inherent in litigation. These legal claims and proceedings are in
various stages and include disputes related to specific hotels
where the potential materiality is not yet known. The Group
does not disclose further information usually required by IAS 37
where it is expected such disclosure would prejudice seriously the
outcome of the litigation.
A claim was filed on 6 December 2018 against the Group and other
hotel companies, alleging violations of anti-trust regulations. The
Group disputes the allegations and the trial currently is scheduled
to take place in October 2021. It is not possible to determine
whether any loss is likely or to reliably estimate the amount of
any loss given the wide range of possible outcomes.
In limited cases, the Group may guarantee bank loans made to
facilitate third-party ownership of hotels under IHG management or
franchise agreements. At 30 June 2021, there were guarantees
of up to $56m in place (31 December 2020: $56m).
|
||||
14.
|
Assets and liabilities classified as held for sale
|
||||
|
Included within assets and liabilities classified as held for sale
are three hotels in the Americas region. Total disposal proceeds
are anticipated to be $46m less selling costs of $2m and the
disposals are expected to complete in 2021. On reclassification
there was no change to the carrying values below.
|
||||
|
|
||||
|
|
|
2021
30 June
$m
|
||
|
Assets classified as held for sale:
|
|
|
||
|
|
Property, plant and equipment
|
|
45
|
|
|
|
Right-of-use assets
|
|
2
|
|
|
|
|
|
_____
|
|
|
|
|
|
47
|
|
|
|
|
|
_____
|
|
|
Liabilities classified as held for sale:
|
|
|
||
|
|
Lease liabilities
|
|
(3)
|
|
|
|
|
|
_____
|
|
|
|
|
|
(3)
|
|
|
|
|
|
_____
|
|
|
There were no assets held for sale at 31 December
2020.
|
|
|
||
|
|
|
|
|
|
|
|
INDEPENDENT REVIEW REPORT TO INTERCONTINENTAL HOTELS GROUP
PLC
REPORT ON THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
Our conclusion
We have reviewed InterContinental Hotels Group PLC's condensed
consolidated interim financial statements (the 'interim financial
statements') in the Half Year Results of InterContinental Hotels
Group PLC for the six month period ended 30 June 2021 (the
'period').
Based on our review, nothing has come to our attention that causes
us to believe that the interim financial statements are not
prepared, in all material respects, in accordance with UK-adopted
International Accounting Standard 34, 'Interim Financial Reporting'
and the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority.
What we have reviewed
The interim financial statements comprise:
● the Group statement of financial position as at
30 June 2021;
● the Group income statement and Group statement of
comprehensive income for the period then ended;
● the Group statement of cash flows for the period
then ended;
● the Group statement of changes in equity for the
period then ended; and
● the explanatory notes to the interim financial
statements.
The interim financial statements included in the Half Year Results
of InterContinental Hotels Group PLC have been prepared in
accordance with UK-adopted International Accounting Standard 34,
'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
RESPONSIBILITIES FOR THE INTERIM FINANCIAL STATEMENTS AND THE
REVIEW
Our responsibilities and those of the directors
The Half Year Results, including the interim financial statements,
are the responsibility of, and have been approved by the directors.
The directors are responsible for preparing the Half Year Results
in accordance with the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct
Authority.
Our responsibility is to express a conclusion on the interim
financial statements in the Half Year Results based on our review.
This report, including the conclusion, has been prepared for and
only for the company for the purpose of complying with the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We
do not, in giving this conclusion, accept or assume responsibility
for any other purpose or to any other person to whom this report is
shown or into whose hands it may come save where expressly agreed
by our prior consent in writing.
What a review of interim financial statements involves
We conducted our review in accordance with International Standard
on Review Engagements (UK and Ireland) 2410, 'Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity' issued by the Auditing Practices Board for use in the
United Kingdom. A review of interim financial information consists
of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review
procedures.
A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and,
consequently, does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit
opinion.
We have read the other information contained in the Half Year
Results and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the interim financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants
London
10 August 2021
|
|
|
InterContinental Hotels Group PLC
|
|
|
(Registrant)
|
|
|
|
|
By:
|
/s/ F. Cuttell
|
|
Name:
|
F.
CUTTELL
|
|
Title:
|
ASSISTANT
COMPANY SECRETARY
|
|
|
|
|
Date:
|
10
August 2021
|
|
|
|