a5374k
SECURITIES
AND EXCHANGE COMMISSION
Washington
DC 20549
FORM 6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 AND 15d-16
OF
THE
SECURITIES EXCHANGE ACT OF 1934
For 06
May 2022
InterContinental Hotels Group PLC
(Registrant's
name)
Broadwater
Park, Denham, Buckinghamshire, UB9 5HJ, United Kingdom
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F
Form 40-F
Indicate
by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes
No
If
"Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): Not
applicable
EXHIBIT
INDEX
99.1
|
2022
First Quarter Trading Update dated 06 May 2022
|
|
|
Exhibit
No: 99.1
6 May 2022
InterContinental Hotels Group PLC
2022 First Quarter Trading Update
Highlights
●
|
Q1
group RevPAR up 61% vs 2021 and attaining 82% of 2019's
level
|
●
|
Average
daily rate up 27% vs 2021 and in line with 2019
|
●
|
Americas
and EMEAA saw sequentially improved trading in February and March
after a challenging January
|
●
|
Greater
China trading in March impacted by tightening of localised travel
restrictions
|
●
|
Gross
system size growth of +4.9% YOY, +0.7% YTD; opened 6.6k rooms (45
hotels) in Q1, broadly similar to 2021
|
●
|
Net
system size growth of +3.4% YOY (adjusted for Holiday Inn and
Crowne Plaza removals in 2021), +0.5% YTD
|
●
|
Global
system of 885k rooms (6,028 hotels); 68% across midscale segments,
32% across upscale and luxury
|
●
|
Signed
16.6k rooms (120 hotels) in Q1, ~15% more than 2021 and 2020;
global pipeline increased to 278k rooms
|
|
|
Keith Barr, Chief Executive Officer, IHG Hotels & Resorts,
said:
"We've seen very positive trading conditions in the first quarter
with travel demand continuing to increase in almost all of our key
markets around the world. The high level of demand we have seen for
leisure travel continues to drive increased rates and occupancy. We
also continue to see a return of business and group travel, further
supporting RevPAR improvements in many of our key urban markets. As
occupancy levels rise and due to the strength of our brands, our
hotels are seeing increased pricing power; in March, our hotels in
the US achieved leisure rates up by more than 10% on 2019 levels
and rate across the whole of the US business was 4% ahead. Trading
in Greater China continues to be impacted by restrictions put in
place to control rising Covid cases.
Our strategic focus on strengthening and expanding our brand
portfolio continues to drive growth. We signed 17 thousand
rooms into our development pipeline in the first quarter, 15% more
than in 2021. Our pipeline of 278 thousand rooms increased
2.4%. Of the 120 hotels signed, there was a particularly strong
performance in the Americas with a near-doubling of signings from
39 to 73. Luxury & Lifestyle brands now account for around 20%
of all signings, and following the completion of our quality review
in 2021 there were 52 signings across the Holiday Inn brand family
and 14 for Crowne Plaza, together up 22% on last year. Our net
system size is expanding, and we are pleased with the progress
towards our ambition of delivering an industry-leading level of net
rooms growth."
Regional performance
Americas
Q1 RevPAR was down 8% vs 2019 (up 58% vs 2021). US RevPAR was down
6% vs 2019. Across the region, occupancy was close to 60%, down
6%pts on 2019, whilst rate was up 1%. Holiday Inn Express and our
Extended Stay brands exceeded 2019 levels of RevPAR. Demand was
boosted by a strong Spring Break vacation period, with leisure
rooms revenue 10% higher than 2019 for the quarter overall. Leisure
demand is expected to remain strong in the coming quarters.
Together with growth in corporate bookings and more group activity
and events returning, this should support further progress in both
occupancy and rate.
Gross system size growth was +2.7% YOY, with 2.2k rooms (23 hotels)
opened in the quarter. Net system size growth was 1.2% YOY on an
adjusted basis (for the Holiday Inn and Crowne Plaza removals that
occurred over the balance of 2021, driven by last year's review of
the estates of these two brands). 7.8k rooms (73 hotels) were added
to the pipeline, representing a further sequential improvement in
the signings pace and exceeding the Q1 signings back in
2019.
EMEAA
Q1 RevPAR was down 33% vs 2019 (up 122% vs 2021). Occupancy was
approaching 50%, down 21%pts on 2019, whilst rate was down just 4%.
Previous restrictions, particularly on international travel, were
generally being lifted over the course of the quarter in all
markets, though the timing of these still resulted in a broad
spread of performance within the region: Q1 RevPAR was down just 7%
vs 2019 in the Middle East and 15% in the UK, whilst it was still
38% lower in Australia, 45% in Continental Europe, 58% in South
East Asia & Korea and 64% in Japan.
Gross system size growth was +5.7% YOY, with 3.5k rooms (17 hotels)
opened in the quarter. Net system size growth was 4.2% YOY on an
adjusted basis. There were 2.3k rooms (15 hotels) added to the
pipeline, around half being conversions.
Greater China
Q1 RevPAR was down 42% vs 2019 (down 7% vs 2021). Occupancy was
36%, down 16%pts on 2019, whilst rate was down 17%. The Winter
Olympics boosted performance around Beijing, though overall Tier
2-4 cities continued to outperform Tier 1 cities. However, in
March, travel restrictions implemented following increased Covid-19
cases led to RevPAR weakening to a 53% decline vs 2019, with around
a third of the estate temporarily closed or
repurposed.
Gross system size growth was +11.3% YOY, with 0.9k rooms (5 hotels)
opened in the quarter. Net system size growth was 9.9% YOY on an
adjusted basis. There were 6.6k rooms (32 hotels) added to the
pipeline.
Financing update
In April, IHG entered into a new $1.35bn syndicated bank revolving
credit facility (RCF). The previous $1.275bn syndicated facility
and $75m bilateral facility have been cancelled. The covenant
amendments to the previous facility announced in December 2020,
which included a relaxation of covenants for the June 2022 and
December 2022 and the $400m minimum liquidity covenant, are no
longer in effect.
The new five-year RCF matures in April 2027. Two one-year extension
options are at the lenders' discretion. There are two financial
covenants: interest cover and leverage ratio. Covenants are tested
at half year and full year on a trailing 12-month basis. Interest
cover requires a ratio of Covenant EBITDA to Covenant interest
payable above 3.5:1. The leverage ratio requires Covenant net debt
to Covenant EBITDA below 4.0:1. These covenants now include the
impact of IFRS 16, Leases, which was previously excluded due to
'frozen GAAP' treatment in the previous agreement.
For further information, please contact:
Investor Relations: Stuart Ford (+44 (0)7823 828 739); Joe Simpson
(+44 (0)7976 862 072)
Media Relations: Amy Shields (+44 (0)7881 035 550); Claire Scicluna
(+44 (0)7776 778 808)
Conference call for analysts and institutional
shareholders:
A conference call with Paul Edgecliffe-Johnson, Chief Financial
Officer and Group Head of Strategy, will commence at 9:00am (London
time) on 6 May and can be accessed at www.ihgplc.com/en/investors/results-and-presentations.
Analysts and institutional shareholders wishing to ask questions
should use the following dial-in details for a Q&A
facility:
UK:
|
0800
640 6441
|
UK
local:
US:
|
0203
936 2999
+1 855
979 6654
|
US
local:
|
+1 646
664 1960
|
All
other locations:
|
+44 203
936 2999
|
Passcode:
|
47 09
62
|
An audio replay will also be available for 7 days using the
following details:
UK:
|
0203
936 3001
|
All
other locations:
|
+44 203
936 3001
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Passcode:
|
76 80
66
|
Website:
The full release and supplementary data will be available on our
website from 7:00am (London time) on 6 May. The web address
is www.ihgplc.com/en/investors/results-and-presentations.
About IHG Hotels & Resorts:
IHG Hotels & Resorts [LON:IHG, NYSE:IHG (ADRs)] is a global
hospitality company, with a purpose to provide True Hospitality for
Good.
With a family of 17 hotel brands and IHG One
Rewards, one of the world's
largest hotel loyalty programmes, IHG has around 6,000 open hotels
in more than 100 countries, and more than 1,800 in the development
pipeline.
-
Luxury & Lifestyle: Six Senses Hotels
Resorts Spas, Regent
Hotels & Resorts, InterContinental
Hotels & Resorts, Vignette
Collection, Kimpton Hotels &
Restaurants, Hotel
Indigo
-
Premium: voco
hotels, HUALUXE
Hotels & Resorts, Crowne Plaza Hotels
& Resorts, EVEN
Hotels
-
Essentials: Holiday Inn Hotels
& Resorts, Holiday Inn
Express, avid
hotels
-
Suites: Atwell
Suites, Staybridge
Suites, Holiday Inn Club
Vacations, Candlewood
Suites
InterContinental Hotels Group PLC is the Group's holding company
and is incorporated and registered in England and Wales.
Approximately 325,000 people work across IHG's hotels and corporate
offices globally.
Visit us online for more about our hotels and
reservations and IHG One
Rewards. For our latest news,
visit our Newsroom and
follow us on LinkedIn, Facebook and Twitter.
Appendix 1: RevPARa (CER)
movement summary
|
Q1 2022 vs 2021
|
Q1 2022 vs 2019
|
|
RevPAR
|
ADR
|
Occupancy
|
RevPAR
|
ADR
|
Occupancy
|
Group
|
60.8%
|
26.7%
|
11.1%pts
|
(17.7)%
|
(0.5)%
|
(11.1)%pts
|
Americas
|
57.9%
|
26.1%
|
11.8%pts
|
(7.7)%
|
1.3%
|
(5.7)%pts
|
EMEAA
|
122.0%
|
34.8%
|
18.8%pts
|
(33.1)%
|
(4.0)%
|
(21.0)%pts
|
G.
China
|
(7.4)%
|
2.2%
|
(3.8)%pts
|
(41.8)%
|
(16.6)%
|
(16.3)%pts
|
Appendix 2: RevPARa movement
at constant exchange rates (CER) vs actual exchange rates
(AER)
|
Q1 2022 vs 2021
|
Q1 2022 vs 2019
|
|
CER
|
AER
|
Difference
|
CER
|
AER
|
Difference
|
Group
|
60.8%
|
59.9%
|
(0.9)%pts
|
(17.7)%
|
(17.9)%
|
(0.2)%pts
|
Americas
|
57.9%
|
58.0%
|
0.1%pts
|
(7.7)%
|
(8.2)%
|
(0.5)%pts
|
EMEAA
|
122.0%
|
112.8%
|
(9.2)%pts
|
(33.1)%
|
(34.2)%
|
(1.1)%pts
|
G.
China
|
(7.4)%
|
(5.6)%
|
1.8%pts
|
(41.8)%
|
(38.5)%
|
3.3%pts
|
Appendix 3: Monthly
RevPARa (CER)
2022 vs 2021
|
Jan
|
Feb
|
Mar
|
Group
|
54.8%
|
72.3%
|
56.9%
|
Americas
|
53.7%
|
65.1%
|
55.7%
|
EMEAA
|
92.7%
|
122.7%
|
146.1%
|
G.
China
|
5.6%
|
36.9%
|
(39.8)%
|
2022 vs 2019
|
Jan
|
Feb
|
Mar
|
Group
|
(24.4)%
|
(18.1)%
|
(12.1)%
|
Americas
|
(14.2)%
|
(8.2)%
|
(2.6)%
|
EMEAA
|
(41.9)%
|
(36.6)%
|
(22.5)%
|
G.
China
|
(38.4)%
|
(31.7)%
|
(53.1)%
|
2021 vs 2020
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
Oct
|
Nov
|
Dec
|
Group
|
(51.7)%
|
(47.7)%
|
20.8%
|
228.0%
|
156.7%
|
108.4%
|
91.9%
|
52.8%
|
55.7%
|
62.8%
|
75.8%
|
77.9%
|
Americas
|
(44.2)%
|
(44.2)%
|
20.7%
|
245.3%
|
160.4%
|
108.0%
|
98.6%
|
68.3%
|
63.0%
|
67.2%
|
84.7%
|
92.0%
|
EMEAA
|
(72.2)%
|
(69.7)%
|
(21.5)%
|
183.4%
|
194.1%
|
165.4%
|
100.9%
|
77.8%
|
82.4%
|
107.9%
|
137.1%
|
112.0%
|
G.
China
|
(21.9)%
|
335.0%
|
288.6%
|
199.6%
|
107.5%
|
51.3%
|
45.3%
|
(43.0)%
|
(15.6)%
|
(8.7)%
|
(30.4)%
|
(14.6)%
|
2021 vs 2019
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
Oct
|
Nov
|
Dec
|
Group
|
(52.5)%
|
(53.8)%
|
(46.6)%
|
(41.4)%
|
(37.1)%
|
(31.0)%
|
(18.4)%
|
(23.0)%
|
(21.5)%
|
(19.2)%
|
(19.1)%
|
(12.1)%
|
Americas
|
(45.1)%
|
(45.4)%
|
(39.4)%
|
(32.3)%
|
(27.8)%
|
(19.7)%
|
(7.3)%
|
(12.1)%
|
(10.6)%
|
(10.5)%
|
(7.4)%
|
0.4%
|
EMEAA
|
(71.1)%
|
(72.7)%
|
(70.6)%
|
(70.1)%
|
(65.8)%
|
(59.4)%
|
(48.2)%
|
(38.2)%
|
(42.8)%
|
(36.3)%
|
(33.2)%
|
(30.2)%
|
G.
China
|
(41.5)%
|
(51.1)%
|
(23.2)%
|
(14.9)%
|
(12.0)%
|
(21.5)%
|
(6.4)%
|
(55.2)%
|
(25.9)%
|
(24.6)%
|
(46.3)%
|
(28.1)%
|
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)%
|
a
RevPAR is presented on a comparable basis, comprising groupings of
hotels that have traded in all months in both years being compared.
Comparable hotel groupings will be different for comparisons
between 2022 vs 2021, 2022 vs 2019, 2021 vs 2020, 2021 vs 2019 and
2020 vs 2019. See 'Use of non-GAAP measures' in IHG's full year
results announcement for further information on the definition of
RevPAR.
Appendix 4: System and pipeline summary of Q1 YTD 2022 movements
and total closing position (rooms):
|
System
|
Pipeline
|
|
Openings
|
Removals
|
Net
|
Total
|
YTD%
|
YOY%
|
Adjusted YOY%b
|
Signings
|
Total
|
Group
|
6,600
|
(2,107)
|
4,493
|
884,820
|
+0.5%
|
+0.1%
|
+3.4%
|
16,628
|
277,503
|
Americas
|
2,204
|
(260)
|
1,944
|
501,033
|
+0.4%
|
(1.9)%
|
+1.2%
|
7,759
|
100,299
|
EMEAA
|
3,468
|
(951)
|
2,517
|
226,717
|
+1.1%
|
+0.1%
|
+4.2%
|
2,287
|
79,706
|
G.
China
|
928
|
(896)
|
32
|
157,070
|
+0.0%
|
+7.3%
|
+9.9%
|
6,582
|
97,498
|
b Adjusting
for the removals of Holiday Inn and Crowne Plaza rooms that
occurred later in 2021, driven by the review that was completed
that year with 34.3k (151 hotels) exiting IHG's system for these
two brands for the year as a whole, of which 6.3k (31 hotels)
exited in Q1 2021 and 28.0k (120 hotels) exited in the balance of
the year.
Cautionary note regarding forward-looking statements:
This announcement contains certain forward-looking statements as
defined under United States law (Section 21E of the Securities
Exchange Act of 1934) and otherwise. These forward-looking
statements can be identified by the fact that they do not relate
only to historical or current facts. Forward-looking statements
often use words such as 'anticipate', 'target', 'expect',
'estimate', 'intend', 'plan', 'goal', 'believe' or other words of
similar meaning. These statements are based on assumptions and
assessments made by InterContinental Hotels Group PLC's management
in light of their experience and their perception of historical
trends, current conditions, expected future developments and other
factors they believe to be appropriate. By their nature,
forward-looking statements are inherently predictive, speculative
and involve risk and uncertainty. There are a number of factors
that could cause actual results and developments to differ
materially from those expressed in or implied by, such
forward-looking statements. The main factors that could affect the
business and the financial results are described in the 'Risk
Factors' section in the current InterContinental Hotels Group PLC's
Annual report and Form 20-F filed with the United States Securities
and Exchange Commission.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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InterContinental Hotels Group PLC
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(Registrant)
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|
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|
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By:
|
/s/
F. Cuttell
|
|
Name:
|
F.
CUTTELL
|
|
Title:
|
ASSISTANT
COMPANY SECRETARY
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Date:
|
06 May
2022
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