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99.1
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Half-year
Report dated 9 August 2022
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Reported
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Underlying1
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||
2022
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2021
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% change2
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% change
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REPORTABLE SEGMENTS1:
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Revenue1
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$840m
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$565m
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+49%
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+53%
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Revenue from fee business1
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$664m
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$505m
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+31%
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+33%
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Operating profit1
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$377m
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$188m
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+101%
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+91%
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Fee margin1
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55.9%
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44.1%
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+11.8%pts
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Adjusted EPS1
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121.7¢
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40.4¢
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+201%
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KEY METRICS:
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GROUP RESULTS:
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● $11.7bn total gross
revenue1
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Total revenue
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$1,794m
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$1,179m
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+52%
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+48% vs
2021, (14)% vs 2019
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Operating profit
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$361m
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$138m
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+162%
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● +51% global H1
RevPAR1
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Basic EPS
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117.4¢
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26.2¢
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+348%
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vs
2021, (10.5)% vs 2019
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Interim dividend per share
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43.9¢
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-
¢
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NM
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● +44% global Q2
RevPAR1
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Net debt1
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$1,718m
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$2,458m
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(30)%
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vs
2021, (4.5)% vs 2019
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●
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Further
significant improvement in trading: Americas Q2 RevPAR vs 2019
+3.5%, strong sequential improvement also in EMEAA to (10.3)%;
Greater China (48.9)% due to localised travel
restrictions
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●
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H1
average daily rate +24% vs 2021, up +4% vs 2019; occupancy +10%pts
vs 2021, (10)%pts vs 2019
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●
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Gross
system growth +4.8% YOY, net +3.0% YOY (adjusted for Holiday Inn
and Crowne Plaza removals in H2 2021, and the impact of
exiting Russia in H1 2022)
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●
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Opened
14.9k rooms (96 hotels) in H1; global estate now at 883k rooms
(6,028 hotels)
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●
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Signed
30.7k rooms (210 hotels) in H1; global pipeline now at 278k rooms
(1,858 hotels)
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●
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Luxury
& Lifestyle portfolio now 445 hotels, 12% of system size; a
further 287 hotels represent 19% of group pipeline
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●
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IHG One
Rewards transforms our loyalty programme; further developments to
enhance our digital advantage
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●
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Operating
profit from reportable segments of $377m, +101% vs 2021, (down (8)%
vs 2019); reported operating profit of $361m, after System Fund
result of $3m and operating exceptionals of $(19)m
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●
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Net
cash from operating activities of $175m (2021: $173m), with
adjusted free cash flow1 of $142m (2021:
$147m); net debt reduction of $163m since start of the year
includes $227m of net foreign exchange benefit
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●
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Trailing
12-month adjusted EBITDA1 of $812m, +78% on a
year earlier; net debt:adjusted EBITDA reduced to 2.1x
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●
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Resumption
of interim dividend at 43.9¢, +10% on prior interim payment in
2019
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●
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Additional
$500m of surplus capital to be returned via new share buyback
programme
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Investor
Relations:
|
Stuart
Ford (+44 (0)7823 828 739); Aleksandar Milenkovic (+44 (0)7469 905
720);
Joe
Simpson (+44 (0)7976 862 072)
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Media
Relations:
|
Amy
Shields (+44 (0)7881 035 550); Claire Scicluna (+44 (0)7776 778
808)
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UK:
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0800
640 6441
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UK
local:
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0203
936 2999
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US:
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+1 855
979 6654
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US
local:
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+1 646
664 1960
|
All
other locations:
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+44 203
936 2999
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Passcode:
|
91 98
94
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UK:
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0203
936 3001
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US:
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+1 845
709 8569
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All
other locations:
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+44 203
936 3001
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Passcode:
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07 07
21
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●
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Global
system of 883k rooms (6,028 hotels) at 30 June 2022, weighted 68%
across midscale segments and 32% across upscale and
luxury
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●
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Gross
growth of +4.8% YOY, with 14.9k rooms (96 hotels) opened in H1, of
which 8.3k (51 hotels) in Q2
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●
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Removal
of 12.4k rooms (59 hotels) in H1; this includes the impact of
ceasing all operations in Russia, resulting in the removal of 6.5k
rooms (28 hotels), equivalent to 0.7% of IHG’s global
system
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●
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Underlying
removal rate of 1.8% YOY; the removals in H1 2022 equate to an
annualised underlying rate of 1.4%, broadly in line with historical
average underlying rate of ~1.5%
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●
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Net
system size growth of +3.0% YOY (adjusted for Holiday Inn and
Crowne Plaza removals in H2 2021, and for Russia operations in H1
2022); unadjusted YOY growth of (0.2)%
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●
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Global
pipeline of 278k rooms (1,858 hotels), which represents over 30% of
current system size; pipeline growth YTD of +2.7% (+3.5% excluding
2.2k rooms impact from 7 pipeline hotels in Russia)
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●
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Signed
30.7k rooms (210 hotels) in H1, of which 14.1k (90 hotels) in
Q2
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Signings
mix drives pipeline to be weighted 56% across midscale segments and
44% across upscale and luxury
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More
than 40% of the global pipeline is under construction, broadly in
line with prior years
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System
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Pipeline
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|||||||
Openings
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Removals
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Net
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Total
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YTD%
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YOY%
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Adjusted YOY%a
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Signings
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Total
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Group
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14,949
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(12,379)
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2,570
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882,897
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+0.3%
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(0.2)%
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+3.0%
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30,732
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278,275
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Americas
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4,287
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(2,188)
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2,099
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501,188
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+0.4%
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(1.8)%
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+0.6%
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11,504
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100,401
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EMEAA
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6,828
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(8,844)
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(2,016)
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222,184
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(0.9)%
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(0.6)%
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+5.2%
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8,111
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80,079
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G.
China
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3,834
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(1,347)
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2,487
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159,525
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+1.6%
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+5.9%
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+8.2%
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11,117
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97,795
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●
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The
InterContinental brand opened three hotels in the period; growing
to 205 across more than 60 countries. Its pipeline of 83 hotels and
resorts represents growth equivalent to 30% of current system
size.
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Having
reached 3,000 hotels in its 30th year last year, Holiday Inn
Express is now in 50 countries, and has a pipeline for a further
26% growth. Holiday Inn Express achieved more than 60 signings in
the period, with our Candlewood Suites and Staybridge Suites
extended stay brands together adding over 40 more.
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Both
brands have pipelines equivalent to over 20% of their current
system size.
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Two-thirds
of the Americas Holiday Inn estate and three-quarters of the Crowne
Plaza estate will have been recently updated. As part of this, 28
Crowne Plaza hotels are being renovated in 2022, equivalent to the
combined number renovated over the previous four years. Recently
renovated hotels are showing strong performance metrics across
occupancy, room rate, revenue market share and guest satisfaction
scores.
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●
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Vignette
Collection, our Luxury & Lifestyle conversion brand that
launched last August, has secured its first eight properties, with
further strong progress expected over the remainder of
2022.
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Our
upscale conversion brand, voco, has reached 80 open and pipeline
hotels. With nine openings in the period, these included the first
all-suites format in Doha, a flagship property for the brand in
Melbourne, and a presence in four new country markets. The brand
was recognised as the World’s Leading Premium Hotel Brand at
the World Travel Awards, and is achieving top guest satisfaction
scores versus equivalent competing brands.
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Portfolio
opportunities are also increasing, due to the broader suite of
brands and the overall enterprise system we can offer owners to
support their growth; three portfolio deals in EMEAA in H1 added 10
hotels across six brands.
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A
number of brand halo properties opened in the period, including an
all-suites-and-villas Regent property in Phu Quoc (Vietnam) and
Australia’s first Kimpton (Sydney).
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There
were six further Kimpton signings in the period and more resort
destinations for the brand including Kimpton Aysla Mallorca will be
opening soon.
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Signings
for Six Senses increased its pipeline to 35 hotels, on top of 21
currently open.
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Hotel
Indigo is set for a record year of openings; it has reached 134
properties across more than 20 countries, which is set to nearly
double with a pipeline of 120 hotels. There were 16 signings for
the brand in the half, including new resort properties in Barbados
and Grand Cayman.
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The
first two Atwell Suites properties to open have been the prototype
new-build at Denver Airport and an adaptive re-use at Miami
Brickell, with 23 further hotels in the pipeline.
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Five
new avid hotels opened in the half, taking the brand’s
presence to 53 locations, with the first opening in Canada later
this year. The avid pipeline totals 157 properties and the brand is
outperforming peers in guest satisfaction.
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●
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14%
more points have been redeemed year-to-date compared to 2019, with
an 18% increase in reward nights booked.
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Enrolments
in Q2 2022 were more than 30% higher than the comparable period
last year, and year-on-year 11 million more loyalty members have
been added.
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Within
a month of launching Milestone Rewards, engagement has exceeded our
expectations and over 800,000 rewards have been
earned.
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We also
launched our largest marketing campaign in more than a decade to
help raise awareness and drive more revenue to our hotels for our
owners.
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We have
further expanded the scale and reach of our procurement solutions
for operating supplies and equipment. More than 2,900 hotels in the
Americas are now participating in our F&B purchasing programme.
These programmes support menu optimisation, help owners mitigate
inflationary pressures and achieve absolute savings. Smaller owner
groups recently onboarded in the UK have seen typical savings of
7-15% on food costs and 10-15% on beverage costs.
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●
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We are
also helping owners lower construction and refurbishment costs in
our latest format upgrades and helping reduce other costs
associated with operating and maintaining their building
infrastructure.
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IHG
Voice Cloud, our enhanced intelligent call services solution, will
be supporting several hundred hotels by the end of the year. This
typically saves an owner around 50 hours a month of on-premises
call handling, whilst also driving better guest experiences,
boosting loyalty enrolment and delivering revenue
up-sell.
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●
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We are
piloting renewable energy sourcing on behalf of our owners and
developing a power purchase agreement in a very competitive market.
Owners have also been able to lock-in substantial savings though
our fixed negotiated rates on other energy costs.
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●
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The
rollout of our IHG NextGen Payments system during 2022 and 2023
adds more guest payment options including e-wallet, and lowers
transaction and support fees for our owners.
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●
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Booking flow improvements. Newly designed webpages that
combine rooms and rates choices have contributed to increases in
booking conversion of up to one percentage point and revenue uplift
of 2 to 3%. This new web experience has also driven a 10 percentage
point increase in enrolments to our IHG One Rewards
programme.
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●
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Stay enhancements and attribute pricing. Pilots progressing well to drive
cross-sell of non-room extras and for room up-sell which enable
owners to generate maximum value from the unique attributes of
their room inventory.
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Next generation IHG mobile app released. The IHG mobile app is our
fastest-growing revenue channel. Amongst many enhancements, the new
app offers streamlined booking and allows guests to check-in
faster, and it powers IHG One Rewards to provide members with
seamless access to their loyalty benefits, including the ability to
choose and redeem Milestone Rewards. Enhancements are expected to
further increase direct bookings and loyalty engagement, and drive
incremental spend during stays. Since its relaunch, revenue driven
by our mobile app for the Americas and EMEAA regions has been at
30% higher levels than 2019.
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●
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Over
the next three years we are investing significantly to enhance the
capabilities of our core HR platforms and technology, to deliver a
more seamless user experience and the right data and insights
needed to drive performance. A new flagship learning and
development offering is also being developed across the business to
support talent.
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●
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We
continue to make progress on our commitment to increase ethnic
minority leadership representation at a corporate level, notably US
ethnic minority leadership where we have committed to doubling
representation between 2020 and 2025 (was 13%, now 20%, with a goal
of 26% in 2025). Conscious inclusion training is being extended to
frontline hotel employees and we are also piloting new inclusive
hiring practices in different markets.
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●
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As one
of many programmes to diversify representation in leadership roles,
more than 100 colleagues have so far graduated from our RISE
programme to increase the number of women in General Manager and
other senior positions in our managed hotels.
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●
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The IHG
Skills Academy, a free virtual learning platform, is being
translated into more languages to broaden the global reach of our
IHG Academy programme and continue to break down barriers to
education and training.
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●
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In
response to the war in Ukraine and the humanitarian crisis it has
caused, IHG made significant donations to our humanitarian charity
partners, and has committed to work with our hotel owners in other
countries to shelter and recruit refugees. We have a dedicated
Refugees Careers Site at
careers.ihg.com/Ukraine-support.
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●
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New
training has been rolled out for our Hotel Energy Reduction
Opportunities (HERO) tool, which gives owners bespoke
sustainability recommendations, costs and savings based upon their
hotel’s individual data and characteristics.
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●
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We
continue to roll-out automated data collection across our business
to make it easier for our hotels to understand and measure their
environmental impacts, identify areas for reduction and track
progress.
|
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An
energy metric has been introduced for all hotels as part of our
strategy to decarbonise the existing estate, as well as adding
further measures to our brand standards to conserve energy and
water.
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●
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As part
of our commitments to tackle waste, we recently announced a global
collaboration with Unilever to replace bathroom miniatures with
bulk amenities for 4,000 more hotels. The initiative is expected to
save at least 850 tonnes of plastic annually in the Americas region
alone and provide hotels with savings of 10-30% versus current
costs.
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6
months ended 30 June
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|||
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2022
|
2021
|
%
|
|
|
$m
|
$m
|
change
|
|
Revenue
|
|
|
|
|
Americas
|
471
|
325
|
44.9
|
|
EMEAA
|
239
|
84
|
184.5
|
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Greater
China
|
36
|
59
|
(39.0)
|
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Central
|
94
|
97
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(3.1)
|
|
|
____
|
____
|
____
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|
Revenue
from reportable segmentsa
|
840
|
565
|
48.7
|
|
|
|
|
|
|
System
Fund revenues
|
554
|
378
|
46.6
|
|
Reimbursement
of costs
|
400
|
236
|
69.5
|
|
|
_____
|
_____
|
_____
|
|
Total
revenue
|
1,794
|
1,179
|
52.2
|
|
|
_____
|
_____
|
_____
|
|
Operating profit
|
|
|
|
|
Americas
|
351
|
224
|
56.7
|
|
EMEAA
|
59
|
(27)
|
NMb
|
|
Greater
China
|
5
|
31
|
(83.9)
|
|
Central
|
(38)
|
(40)
|
(5.0)
|
|
|
_____
|
____
|
_____
|
|
Operating
profit from reportable segmentsa
|
377
|
188
|
100.5
|
|
Analysed as:
|
|
|
|
|
Fee Business excluding central
|
410
|
264
|
55.3
|
|
Owned, leased and managed lease
|
5
|
(36)
|
NMb
|
|
Central
|
(38)
|
(40)
|
(5.0)
|
|
|
|
|
|
|
System
Fund result
|
3
|
(46)
|
NMb
|
|
|
____
|
____
|
____
|
|
Operating
profit before exceptional items
|
380
|
142
|
167.6
|
|
Operating
exceptional items
|
(19)
|
(4)
|
375.0
|
|
|
____
|
____
|
____
|
|
Operating profit
|
361
|
138
|
161.6
|
|
|
|
|
|
|
Net
financial expenses
|
(69)
|
(72)
|
(4.2)
|
|
Analysed as:
|
|
|
|
|
Adjusted interest expensea
|
(64)
|
(72)
|
(11.1)
|
|
System Fund interest
|
3
|
-
|
NMb
|
|
Foreign exchange losses
|
(8)
|
-
|
NMb
|
|
|
|
|
|
|
Fair
value gains on contingent purchase consideration
|
7
|
1
|
600.0
|
|
|
____
|
____
|
____
|
|
Profit before tax
|
299
|
67
|
346.3
|
|
|
|
|
|
|
Tax
|
(83)
|
(19)
|
336.8
|
|
Analysed as;
|
|
|
|
|
Tax before exceptional items and System Funda
|
(88)
|
(42)
|
109.5
|
|
Tax on exceptional items and exceptional tax
|
5
|
23
|
(78.3)
|
|
|
____
|
____
|
____
|
|
Profit for the period
|
216
|
48
|
350.0
|
|
|
|
|
|
|
Adjusted
earningsc
|
224
|
74
|
202.7
|
|
|
|
|
|
|
Basic
weighted average number of ordinary shares (millions)
|
184
|
183
|
0.5
|
|
|
____
|
____
|
____
|
|
Earnings per ordinary share
|
|
|
|
|
|
Basic
|
117.4¢
|
26.2¢
|
348.1
|
|
Adjusteda
|
121.7¢
|
40.4¢
|
201.2
|
|
|
|
|
|
Dividend per share
|
43.9¢
|
-
|
NMb
|
|
|
|
|
|
|
Average
US dollar to sterling exchange rate
|
$1: £0.77
|
$1:
£0.72
|
6.9
|
|
|
|
|
|
Adjusted EBITDA reconciliation
|
6
months ended 30 June
|
|
|
2022
|
2021
|
|
$m
|
$m
Restateda
|
|
|
|
Cash flow from operations
|
336
|
259
|
Cash flows relating to exceptional items
|
15
|
12
|
Impairment loss on financial assets
|
(5)
|
(8)
|
Other non-cash adjustments to operating profit/loss
|
(34)
|
(35)
|
System Fund result
|
(3)
|
46
|
System Fund depreciation and amortisation
|
(42)
|
(41)
|
Other non-cash adjustments to System Fund result
|
(13)
|
(10)
|
Working capital and other adjustments
|
124
|
(6)
|
Capital expenditure: contract acquisition costs (key
money)
|
35
|
16
|
|
________
|
________
|
Adjusted EBITDA
|
413
|
233
|
|
____
|
____
|
CASH FLOW SUMMARY
|
6
months ended 30 June
|
||
|
2022
|
2021
|
$m
|
|
$m
|
$m
|
change
|
|
|
|
|
Adjusted EBITDAb
|
413
|
233
|
180
|
|
|
|
|
Working
capital and other adjustments
|
(124)
|
6
|
|
Impairment
loss on financial assets
|
5
|
8
|
|
Other
non-cash adjustments to operating profit/loss
|
34
|
35
|
|
System
Fund result
|
3
|
(46)
|
|
Non-cash
adjustments to System Fund result
|
55
|
51
|
|
Capital
expenditure: contract acquisition costs (key money) net of
repayments
|
(35)
|
(16)
|
|
Capital
expenditure: maintenance
|
(15)
|
(9)
|
|
Cash
flows relating to exceptional items
|
(15)
|
(12)
|
|
Net
interest paid
|
(37)
|
(39)
|
|
Tax
paid
|
(124)
|
(47)
|
|
Principal
element of lease payments
|
(18)
|
(17)
|
|
|
____
|
____
|
____
|
Adjusted free cash flowb
|
142
|
147
|
(5)
|
|
|
|
|
Capital
expenditure: gross recyclable investments
|
(1)
|
(9)
|
|
Capital
expenditure: gross System Fund capital investments
|
(18)
|
(7)
|
|
Deferred
purchase consideration paid
|
-
|
(13)
|
|
Disposals
and repayments, including other financial assets
|
7
|
1
|
|
Dividends
paid to shareholders
|
(154)
|
-
|
|
|
____
|
____
|
____
|
Net cash flow before other net debt movements
|
(24)
|
119
|
(143)
|
|
|
|
|
Add
back principal element of lease repayments within adjusted free
cash flow
|
18
|
17
|
|
Exchange
and other non-cash adjustments
|
169
|
(65)
|
|
|
____
|
____
|
____
|
Decrease in net debtb
|
163
|
71
|
92
|
|
|
|
|
Net
debt at beginning of the period
|
(1,881)
|
(2,529)
|
|
|
______
|
______
|
____
|
Net debt at end of the period
|
(1,718)
|
(2,458)
|
740
|
|
______
|
______
|
____
|
6 months ended 30 June
|
|||||
|
|
|
|
|
|
|
2022
|
|
2021
|
|
%
|
|
$bn
|
|
$bn
|
|
changeb
|
Analysed by brand
|
|
|
|
|
|
|
|
|
|
|
|
InterContinental
|
1.7
|
|
1.0
|
|
65.6
|
Kimpton
|
0.6
|
|
0.3
|
|
116.9
|
Hotel Indigo
|
0.3
|
|
0.2
|
|
92.8
|
Crowne Plaza
|
1.3
|
|
1.0
|
|
35.8
|
Holiday Inn
|
2.4
|
|
1.6
|
|
46.7
|
Holiday Inn Express
|
3.8
|
|
2.7
|
|
40.4
|
Staybridge Suites
|
0.6
|
|
0.4
|
|
35.7
|
Candlewood Suites
|
0.4
|
|
0.3
|
|
20.3
|
Other
|
0.6
|
|
0.4
|
|
50.0
|
|
____
|
|
____
|
|
____
|
Total
|
11.7
|
|
7.9
|
|
48.0
|
|
____
|
|
____
|
|
____
|
|
|
|
|
|
|
Analysed by ownership type
|
|
|
|
|
|
Fee business
|
11.5
|
|
7.8
|
|
46.9
|
Owned, leased and managed lease
|
0.2
|
|
0.1
|
|
189.1
|
|
____
|
|
____
|
|
____
|
Total
|
11.7
|
|
7.9
|
|
48.0
|
|
____
|
|
____
|
|
____
|
|
Half Year 2022 vs 2021
|
Half Year 2022 vs 2019
|
||||
|
RevPAR
|
ADR
|
Occupancy
|
RevPAR
|
ADR
|
Occupancy
|
Group
|
50.7%
|
24.4%
|
10.1%pts
|
(10.5)%
|
3.9%
|
(9.5)%pts
|
Americas
|
45.2%
|
22.1%
|
10.2%pts
|
(1.6)%
|
5.6%
|
(4.7)%pts
|
EMEAA
|
138.4%
|
35.3%
|
24.2%pts
|
(20.9)%
|
1.0%
|
(15.7)%pts
|
G.
China
|
(27.2)%
|
(4.3)%
|
(11.9)%pts
|
(45.9)%
|
(17.9)%
|
(20.1)%pts
|
|
Q2 2022 vs 2021
|
Q2 2022 vs 2019
|
||||
|
RevPAR
|
ADR
|
Occupancy
|
RevPAR
|
ADR
|
Occupancy
|
Group
|
43.9%
|
23.5%
|
9.0%pts
|
(4.5)%
|
7.4%
|
(8.1)%pts
|
Americas
|
37.0%
|
20.2%
|
8.5%pts
|
3.5%
|
9.0%
|
(3.7)%pts
|
EMEAA
|
146.8%
|
35.8%
|
28.8%pts
|
(10.3)%
|
4.0%
|
(10.4)%pts
|
G.
China
|
(39.5)%
|
(8.9)%
|
(19.8)%pts
|
(48.9)%
|
(18.7)%
|
(23.5)%pts
|
|
Half Year 2022 vs 2021
|
Half Year 2022 vs 2019
|
||||
|
CER
|
AER
|
Difference
|
CER
|
AER
|
Difference
|
Group
|
50.7%
|
48.6%
|
2.1%pts
|
(10.5)%
|
(11.2)%
|
0.7%pts
|
Americas
|
45.2%
|
45.1%
|
0.1%pts
|
(1.6)%
|
(1.9)%
|
0.3%pts
|
EMEAA
|
138.4%
|
121.7%
|
16.7%pts
|
(20.9)%
|
(23.7)%
|
2.9%pts
|
G.
China
|
(27.2)%
|
(27.4)%
|
0.2%pts
|
(45.9)%
|
(43.6)%
|
(2.3)%pts
|
|
Q2 2022 vs 2021
|
Q2 2022 vs 2019
|
||||
|
CER
|
AER
|
Difference
|
CER
|
AER
|
Difference
|
Group
|
43.9%
|
41.0%
|
2.9%pts
|
(4.5)%
|
(5.6)%
|
1.1%pts
|
Americas
|
37.0%
|
36.8%
|
0.2%pts
|
3.5%
|
3.2%
|
0.3%pts
|
EMEAA
|
146.8%
|
124.9%
|
21.9%pts
|
(10.3)%
|
(14.9)%
|
4.6%pts
|
G.
China
|
(39.5)%
|
(40.9)%
|
1.4%pts
|
(48.9)%
|
(47.4)%
|
(1.5)%pts
|
2022 vs 2021
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Group
|
54.8%
|
72.3%
|
56.9%
|
50.1%
|
43.8%
|
39.2%
|
Americas
|
53.7%
|
65.1%
|
55.7%
|
48.1%
|
37.6%
|
28.0%
|
EMEAA
|
92.7%
|
122.7%
|
146.1%
|
165.1%
|
156.3%
|
126.0%
|
G.
China
|
5.6%
|
36.9%
|
(39.8)%
|
(51.5)%
|
(45.6)%
|
(17.7)%
|
2022 vs 2019
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Group
|
(24.4)%
|
(18.1)%
|
(12.1)%
|
(7.9)%
|
(5.4)%
|
(0.6)%
|
Americas
|
(14.2)%
|
(8.2)%
|
(2.6)%
|
2.9%
|
2.0%
|
5.5%
|
EMEAA
|
(41.9)%
|
(36.6)%
|
(22.5)%
|
(17.2)%
|
(8.3)%
|
(6.0)%
|
G.
China
|
(38.4)%
|
(31.7)%
|
(53.1)%
|
(58.6)%
|
(51.6)%
|
(35.5)%
|
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)%
|
|
Hotels
|
Rooms
|
|||
Global hotel and room count
|
|
Change over
|
|
Change over
|
|
|
2022
|
2021
|
2022
|
2021
|
|
|
30 June
|
31 December
|
30 June
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
Six Senses
|
21
|
-
|
1,439
|
27
|
Regent
|
8
|
1
|
2,532
|
342
|
|
|
InterContinental
|
205
|
1
|
69,525
|
123
|
|
Vignette Collection
|
2
|
1
|
539
|
393
|
|
Kimpton
|
75
|
-
|
13,304
|
21
|
|
Hotel Indigo
|
134
|
4
|
17,056
|
713
|
|
voco
|
40
|
9
|
9,447
|
2,002
|
|
HUALUXE
|
18
|
2
|
5,147
|
544
|
|
Crowne Plaza
|
402
|
(2)
|
110,317
|
(861)
|
|
EVEN Hotels
|
22
|
1
|
3,180
|
186
|
|
Holiday Inna
|
1,206
|
(12)
|
220,860
|
(3,824)
|
|
Holiday Inn Express
|
3,044
|
28
|
320,970
|
3,641
|
avid hotels
|
53
|
5
|
4,771
|
491
|
|
|
Atwell Suites
|
2
|
2
|
186
|
186
|
|
Staybridge Suites
|
314
|
(1)
|
33,924
|
(382)
|
|
Candlewood Suites
|
363
|
2
|
32,222
|
197
|
|
Otherb
|
119
|
(4)
|
37,478
|
(1,229)
|
|
|
_____
|
____
|
_______
|
______
|
Total
|
6,028
|
37
|
882,897
|
2,570
|
|
|
|
_____
|
____
|
_______
|
______
|
Analysed by ownership type
|
|
|
|
|
|
|
Franchised
|
5,078
|
45
|
630,895
|
4,780
|
|
Managed
|
931
|
(8)
|
247,381
|
(2,210)
|
|
Owned, leased and managed lease
|
19
|
-
|
4,621
|
-
|
|
|
_____
|
____
|
_______
|
______
|
Total
|
6,028
|
37
|
882,897
|
2,570
|
|
|
|
_____
|
____
|
_______
|
______
|
|
|
|
|
|
|
|
Hotels
|
Rooms
|
|||
Global Pipeline
|
|
Change over
|
|
Change over
|
|
|
2022
|
2021
|
2022
|
2021
|
|
|
30 June
|
31 December
|
30 June
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
Six Senses
|
35
|
2
|
2,532
|
108
|
Regent
|
8
|
-
|
1,806
|
(132)
|
|
|
InterContinental
|
83
|
4
|
20,859
|
1,180
|
|
Vignette Collection
|
1
|
1
|
40
|
40
|
|
Kimpton
|
40
|
5
|
7,952
|
1,100
|
|
Hotel Indigo
|
120
|
6
|
19,403
|
951
|
|
voco
|
34
|
(4)
|
9,360
|
(730)
|
|
HUALUXE
|
21
|
(2)
|
5,506
|
(539)
|
|
Crowne Plaza
|
114
|
18
|
29,448
|
4,187
|
|
EVEN Hotels
|
28
|
(1)
|
4,776
|
(131)
|
|
Holiday Inn
|
245
|
1
|
47,234
|
(844)
|
|
Holiday Inn Express
|
650
|
5
|
82,079
|
(947)
|
avid hotels
|
157
|
(7)
|
13,601
|
(894)
|
|
|
Atwell Suites
|
23
|
-
|
2,268
|
(7)
|
|
Staybridge Suites
|
164
|
8
|
18,140
|
1,297
|
|
Candlewood Suites
|
111
|
18
|
9,213
|
1,448
|
|
Othera
|
24
|
7
|
4,058
|
1,228
|
|
|
_____
|
____
|
_______
|
_____
|
Total
|
1,858
|
61
|
278,275
|
7,315
|
|
|
|
_____
|
____
|
_______
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
Franchised
|
1,328
|
38
|
162,276
|
4,444
|
|
Managed
|
529
|
23
|
115,844
|
2,871
|
Owned, leased and managed lease
|
1
|
-
|
155
|
-
|
|
|
|
_____
|
____
|
_______
|
_____
|
Total
|
1,858
|
61
|
278,275
|
7,315
|
|
|
|
_____
|
____
|
_______
|
_____
|
AMERICAS
|
6 months ended 30 June
|
|||
Americas Results
|
|
|
|
|
|
2022
|
2021
|
%
|
|
|
$m
|
$m
|
change
|
|
Revenue from
the reportable segmenta
|
|
|
|
|
|
Fee
business
|
413
|
296
|
39.5
|
|
Owned,
leased and managed lease
|
58
|
29
|
100.0
|
|
____
|
____
|
____
|
|
Total
|
471
|
325
|
44.9
|
|
|
____
|
____
|
____
|
|
Operating profit from the reportable segmenta
|
|
|
|
|
|
Fee
business
|
342
|
236
|
44.9
|
|
Owned,
leased and managed lease
|
9
|
(12)
|
NMc
|
|
____
|
____
|
____
|
|
|
351
|
224
|
56.7
|
|
Operating
exceptional items
|
-
|
(4)
|
NMc
|
|
|
____
|
____
|
____
|
|
Operating
profit
|
351
|
220
|
59.5
|
|
|
____
|
_____
|
_______
|
Americas Comparable RevPARb movement on previous
year
|
6 months ended
30 June 2022
|
|
Fee
business
|
|
|
|
InterContinental
|
162.3%
|
|
Kimpton
|
101.0%
|
|
Hotel
Indigo
|
62.8%
|
|
Crowne
Plaza
|
83.2%
|
|
EVEN
Hotels
|
108.9%
|
|
Holiday
Inn
|
50.0%
|
|
Holiday
Inn Express
|
34.2%
|
|
Staybridge
Suites
|
29.1%
|
|
Candlewood
Suites
|
20.1%
|
|
All
brands
|
44.9%
|
Owned,
leased and managed lease
|
|
|
|
All
brands
|
119.5%
|
|
|
|
|
Hotels
|
Rooms
|
|||
Americas hotel and room count
|
|
Change over
|
|
Change over
|
|
|
2022
|
2021
|
2022
|
2021
|
|
|
30 June
|
31 December
|
30 June
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
Six Senses
|
1
|
-
|
20
|
-
|
|
InterContinental
|
43
|
-
|
15,652
|
1
|
|
Kimpton
|
63
|
(1)
|
10,857
|
(151)
|
|
Hotel Indigo
|
70
|
4
|
9,282
|
537
|
|
voco
|
5
|
-
|
469
|
-
|
|
Crowne Plaza
|
112
|
-
|
28,035
|
105
|
|
EVEN Hotels
|
19
|
-
|
2,743
|
-
|
|
Holiday Inna
|
716
|
-
|
120,911
|
61
|
|
Holiday Inn Express
|
2,451
|
15
|
222,944
|
1,217
|
avid hotels
|
53
|
5
|
4,771
|
491
|
|
|
Atwell Suites
|
2
|
2
|
186
|
186
|
|
Staybridge Suites
|
296
|
-
|
30,992
|
(105)
|
|
Candlewood Suites
|
363
|
2
|
32,222
|
197
|
|
Otherb
|
99
|
(2)
|
22,104
|
(440)
|
|
|
_____
|
____
|
_______
|
______
|
Total
|
4,293
|
25
|
501,188
|
2,099
|
|
|
|
_____
|
____
|
_______
|
______
|
Analysed by ownership type
|
|
|
|
|
|
|
Franchised
|
4,118
|
31
|
463,430
|
3,173
|
|
Managed
|
172
|
(6)
|
36,431
|
(1,074)
|
Owned, leased and managed lease
|
3
|
-
|
1,327
|
-
|
|
|
|
_____
|
____
|
_______
|
______
|
Total
|
4,293
|
25
|
501,188
|
2,099
|
|
|
|
_____
|
____
|
_______
|
______
|
|
Hotels
|
Rooms
|
|||
Americas Pipeline
|
|
Change over
|
|
Change over
|
|
|
2022
|
2021
|
2022
|
2021
|
|
|
30 June
|
31 December
|
30 June
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
Six Senses
|
5
|
(1)
|
338
|
(133)
|
|
InterContinental
|
9
|
-
|
2.252
|
-
|
|
Kimpton
|
23
|
4
|
4,300
|
869
|
|
Hotel Indigo
|
28
|
(1)
|
4.009
|
(61)
|
|
voco
|
4
|
(1)
|
920
|
(125)
|
|
Crowne Plaza
|
8
|
-
|
1,644
|
1
|
|
EVEN Hotels
|
10
|
-
|
1,161
|
(5)
|
|
Holiday Inn
|
73
|
(1)
|
9,444
|
(24)
|
|
Holiday Inn Express
|
352
|
14
|
34,336
|
1,635
|
avid hotels
|
157
|
(7)
|
13,601
|
(894)
|
|
|
Atwell Suites
|
23
|
-
|
2,268
|
(7)
|
|
Staybridge Suites
|
143
|
6
|
14,910
|
860
|
|
Candlewood Suites
|
111
|
18
|
9,213
|
1,448
|
|
Othera
|
13
|
2
|
2,005
|
234
|
|
|
____
|
____
|
______
|
______
|
Total
|
959
|
33
|
100,401
|
3,798
|
|
|
|
____
|
____
|
______
|
______
|
Analysed by ownership type
|
|
|
|
|
|
|
Franchised
|
922
|
33
|
94,367
|
3,635
|
|
Managed
|
37
|
-
|
6,034
|
163
|
|
|
____
|
____
|
______
|
______
|
Total
|
959
|
33
|
100,401
|
3,798
|
|
|
|
____
|
____
|
______
|
______
|
|
6
months ended 30 June
|
||||
EMEAA results
|
|
|
|
||
|
2022
|
2021
|
%
|
||
|
$m
|
$m
|
change
|
||
Revenue from the reportable segmenta
|
|
|
|
||
|
Fee
business
|
121
|
53
|
128.3
|
|
|
Owned,
leased and managed lease
|
118
|
31
|
280.6
|
|
|
____
|
____
|
____
|
||
Total
|
|
239
|
84
|
184.5
|
|
|
____
|
____
|
____
|
||
Operating profit/(loss) from the reportable segmenta
|
|
|
|
||
|
Fee
business
|
63
|
(3)
|
NMc
|
|
|
Owned,
leased and managed lease
|
(4)
|
(24)
|
(83.3)
|
|
|
____
|
____
|
____
|
||
|
59
|
(27)
|
NMc
|
||
Operating
exceptional items
|
(19)
|
-
|
NMc
|
||
|
____
|
____
|
_____
|
||
Operating
profit/(loss)
|
40
|
(27)
|
NMc
|
||
|
____
|
____
|
_____
|
EMEAA comparable RevPARb movement on previous
year
|
6 months ended
30 June 2022
|
|
|
|
|
Fee
business
|
|
|
|
Six
Senses
|
161.6%
|
|
Regent
|
39.9%
|
|
InterContinental
|
115.8%
|
|
Kimpton
|
334.5%
|
|
Hotel
Indigo
|
375.6%
|
|
voco
|
95.4%
|
|
Crowne
Plaza
|
120.7%
|
|
Holiday
Inn
|
143.5%
|
|
Holiday
Inn Express
|
157.6%
|
|
Staybridge
Suites
|
53.9%
|
|
All
brands
|
135.1%
|
|
|
|
Owned,
leased and managed lease
|
|
|
|
All
brands
|
422.6%
|
|
|
|
|
Hotels
|
Rooms
|
|||
EMEAA hotel and room count
|
|
Change over
|
|
Change over
|
|
|
2022
|
2021
|
2022
|
2021
|
|
|
30 June
|
31 December
|
30 June
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
Six Senses
|
19
|
-
|
1,289
|
19
|
Regent
|
4
|
1
|
1,113
|
342
|
|
|
InterContinental
|
109
|
1
|
32,667
|
106
|
|
Vignette Collection
|
2
|
1
|
539
|
393
|
|
Kimpton
|
11
|
1
|
2,318
|
172
|
|
Hotel Indigo
|
49
|
1
|
5,488
|
305
|
|
voco
|
29
|
8
|
7,758
|
1,876
|
|
Crowne Plaza
|
179
|
(3)
|
43,671
|
(1,157)
|
|
Holiday Inn
|
370
|
(10)
|
67,389
|
(3,435)
|
|
Holiday Inn Express
|
335
|
2
|
48,977
|
429
|
|
Staybridge Suites
|
18
|
(1)
|
2,932
|
(277)
|
|
Other
|
11
|
(2)
|
8,043
|
(789)
|
|
|
_____
|
____
|
_______
|
______
|
Total
|
1,136
|
(1)
|
222,184
|
(2,016)
|
|
|
|
_____
|
____
|
_______
|
______
|
Analysed by ownership type
|
|
|
|
|
|
|
Franchised
|
772
|
5
|
125,560
|
(147)
|
|
Managed
|
348
|
(6)
|
93,330
|
(1,869)
|
Owned, leased and managed lease
|
16
|
-
|
3,294
|
-
|
|
|
|
_____
|
____
|
_______
|
______
|
Total
|
1,136
|
(1)
|
222,184
|
(2,016)
|
|
|
|
_____
|
____
|
_______
|
______
|
|
Hotels
|
Rooms
|
|||
EMEAA Pipeline
|
|
Change over
|
|
Change over
|
|
|
2022
|
2021
|
2022
|
2021
|
|
|
30 June
|
31 December
|
30 June
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
Six Senses
|
26
|
3
|
1,961
|
241
|
Regent
|
5
|
(1)
|
999
|
(342)
|
|
|
InterContinental
|
47
|
4
|
10,709
|
1,189
|
|
Vignette Collection
|
1
|
1
|
40
|
40
|
|
Kimpton
|
9
|
-
|
1,626
|
(48)
|
|
Hotel Indigo
|
45
|
1
|
7,068
|
64
|
|
voco
|
26
|
(5)
|
7,695
|
(1,058)
|
|
Crowne Plaza
|
44
|
4
|
11,040
|
579
|
|
Holiday Inn
|
94
|
(4)
|
18,803
|
(2,211)
|
|
Holiday Inn Express
|
96
|
(3)
|
14,855
|
(738)
|
|
Staybridge Suites
|
21
|
2
|
3,230
|
437
|
|
Othera
|
11
|
5
|
2,053
|
994
|
|
|
____
|
____
|
______
|
_____
|
Total
|
425
|
7
|
80,079
|
(853)
|
|
|
|
____
|
____
|
______
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
Franchised
|
167
|
(8)
|
24,957
|
(2,088)
|
|
Managed
|
257
|
15
|
54,967
|
1,235
|
Owned, leased and managed lease
|
1
|
-
|
155
|
-
|
|
|
|
____
|
____
|
______
|
_____
|
Total
|
425
|
7
|
80,079
|
(853)
|
|
|
|
____
|
____
|
______
|
_____
|
|
6 months ended 30
June
|
||||
|
|
|
|
||
Greater China results
|
2022
|
2021
|
%
|
||
|
$m
|
$m
|
change
|
||
|
|
|
|
||
Revenue from the reportable segmenta
|
|
|
|
||
|
Fee
business
|
36
|
59
|
(39.0)
|
|
|
|
____
|
____
|
_____
|
|
Total
|
|
36
|
59
|
(39.0)
|
|
|
____
|
____
|
_____
|
||
Operating profit from the reportable segmenta
|
|
|
|
||
|
Fee
business
|
5
|
31
|
(83.9)
|
|
|
____
|
____
|
____
|
||
Operating
profit
|
5
|
31
|
(83.9)
|
||
|
____
|
____
|
____
|
Greater China comparable RevPARb movement on previous
year
|
6 months ended
30 June 2022
|
|
|
|
|
Fee
business
|
|
|
|
Regent
|
(20.0)%
|
|
InterContinental
|
(40.3)%
|
|
Hotel
Indigo
|
(23.8)%
|
|
HUALUXE
|
(28.5)%
|
|
Crowne
Plaza
|
(23.9)%
|
|
Holiday
Inn
|
(18.5)%
|
|
Holiday
Inn Express
|
(21.8)%
|
|
All
brands
|
(27.2)%
|
|
Hotels
|
Rooms
|
|||
Greater China hotel and room count
|
|
Change over
|
|
Change over
|
|
|
2022
|
2021
|
2022
|
2021
|
|
|
30 June
|
31 December
|
30 June
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
Six Senses
|
1
|
-
|
130
|
8
|
Regent
|
4
|
-
|
1,419
|
-
|
|
|
InterContinental
|
53
|
-
|
21,206
|
16
|
|
Kimpton
|
1
|
-
|
129
|
-
|
|
Hotel Indigo
|
15
|
(1)
|
2,286
|
(129)
|
|
voco
|
6
|
1
|
1,220
|
126
|
|
HUALUXE
|
18
|
2
|
5,147
|
544
|
|
Crowne Plaza
|
111
|
1
|
38,611
|
191
|
|
EVEN Hotels
|
3
|
1
|
437
|
186
|
|
Holiday Inn
|
120
|
(2)
|
32,560
|
(450)
|
|
Holiday Inn Express
|
258
|
11
|
49,049
|
1,995
|
|
Othera
|
9
|
-
|
7,331
|
-
|
|
|
____
|
____
|
_______
|
_____
|
Total
|
599
|
13
|
159,525
|
2,487
|
|
|
|
____
|
____
|
_______
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
Franchised
|
188
|
9
|
41,905
|
1,754
|
|
Managed
|
411
|
4
|
117,620
|
733
|
|
|
____
|
____
|
_______
|
_____
|
Total
|
599
|
13
|
159,525
|
2,487
|
|
|
|
____
|
____
|
_______
|
_____
|
|
Hotels
|
Rooms
|
|||
Greater China Pipeline
|
|
Change over
|
|
Change over
|
|
|
2022
|
2021
|
2022
|
2021
|
|
|
30
June
|
31 December
|
30 June
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
Six Senses
|
4
|
-
|
233
|
-
|
Regent
|
3
|
1
|
807
|
210
|
|
|
InterContinental
|
27
|
-
|
7,898
|
(9)
|
|
Kimpton
|
8
|
1
|
2.026
|
279
|
|
Hotel Indigo
|
47
|
6
|
8,326
|
948
|
|
voco
|
4
|
2
|
745
|
453
|
|
HUALUXE
|
21
|
(2)
|
5,506
|
(539)
|
|
Crowne Plaza
|
62
|
14
|
16,764
|
3,607
|
|
EVEN Hotels
|
18
|
(1)
|
3,615
|
(126)
|
|
Holiday Inn
|
78
|
6
|
18,987
|
1,391
|
|
Holiday Inn Express
|
202
|
(6)
|
32,888
|
(1,844)
|
|
Other
|
-
|
-
|
-
|
-
|
|
|
____
|
____
|
______
|
_____
|
Total
|
474
|
21
|
97,795
|
4,370
|
|
|
|
____
|
____
|
______
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
Franchised
|
239
|
13
|
42,952
|
2,897
|
|
Managed
|
235
|
8
|
54,843
|
1,473
|
|
|
____
|
____
|
______
|
_____
|
Total
|
474
|
21
|
97,795
|
4,370
|
|
|
|
____
|
____
|
______
|
_____
|
|
6 months ended 30 June
|
||
|
|
|
|
|
2022
|
2021
|
%
|
Central results
|
$m
|
$m
|
change
|
|
|
|
|
Revenue
|
94
|
97
|
(3.1)
|
Gross
costs
|
(132)
|
(137)
|
(3.6)
|
|
____
|
____
|
____
|
Operating
loss
|
(38)
|
(40)
|
(5.0)
|
|
____
|
____
|
____
|
●
|
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 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 does 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,
the costs of individually significant legal cases or commercial
disputes, 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. Further detail of amounts presented as
exceptional is included in note 5 to the interim Group Financial
Statements.
|
●
|
Underlying
revenue;
|
●
|
Underlying
operating profit;
|
●
|
Underlying
fee revenue; and
|
●
|
Fee
margin.
|
●
|
Interest
income is recorded in the System Fund on the outstanding cash
balance relating to the IHG loyalty programme. These interest
payments are recognised as interest expense for IHG.
|
●
|
Other
components of System Fund interest income and expense, including
capitalised interest, lease interest expense and interest income on
overdue receivables.
|
●
|
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.
|
●
|
Adjusted
interest and adjusted earnings per ordinary share have been amended
to exclude foreign exchange gains / losses recorded within
financial expenses. Since the gains / losses are principally as a
result of the Group’s internal funding structure they are not
reflective of the performance of the Group, excluding these amounts
provides a more comparable year-on-year measure for investors and
other users, aligned to how management monitor the business.
Comparatives have not been restated as the impact of these changes
are not material in 2021.
|
●
|
The
definition and reconciliation of Adjusted EBITDA has been amended
to reconcile to the nearest GAAP measure, cash flow from
operations, reflecting the fact Adjusted EBITDA is primarily used
by the Group as a liquidity measure. The value of Adjusted EBITDA
is unchanged from 2021.
|
Reportable segments
|
Revenue
|
|
Operating profit
|
||||
|
|
|
|
|
|
|
|
|
2022
|
2021
|
%
|
|
2022
|
2021
|
%
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
Per Group income statement
|
1,794
|
1,179
|
52.2
|
|
361
|
138
|
161.6
|
System Fund
|
(554)
|
(378)
|
46.6
|
|
(3)
|
46
|
NMa
|
Reimbursement of costs
|
(400)
|
(236)
|
69.5
|
|
-
|
-
|
-
|
Operating exceptional items
|
-
|
-
|
-
|
|
19
|
4
|
375.0
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
840
|
565
|
48.7
|
|
377
|
188
|
100.5
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
Fee business
|
664
|
505
|
31.5
|
|
372
|
224
|
66.1
|
Owned, leased and managed lease
|
176
|
60
|
193.3
|
|
5
|
(36)
|
NMa
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
840
|
565
|
48.7
|
|
377
|
188
|
100.5
|
|
Revenue
|
|
Operating profit
|
||||
|
|
|
|
|
|
|
|
|
2022
|
2021
|
%
|
|
2022
|
2021
|
%
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
Change
|
|
|
|
|
|
|
|
|
Reportable segments (see above)
|
840
|
565
|
48.7
|
|
377
|
188
|
100.5
|
Significant liquidated damagesb
|
(7)
|
(6)
|
16.7
|
|
(7)
|
(6)
|
16.7
|
Owned and leased asset disposalsc
|
-
|
(6)
|
NMa
|
|
(2)
|
8
|
NMa
|
Currency impact
|
-
|
(7)
|
NMa
|
|
-
|
3
|
NMa
|
|
____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Underlying revenue and underlying operating profit
|
833
|
546
|
52.6
|
|
368
|
193
|
90.7
|
|
Revenue
|
Operating profit
|
|||||
|
2022
|
2021
|
%
|
|
2022
|
2021
|
%
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
Reportable segments fee business (see above)
|
664
|
505
|
31.5
|
|
372
|
224
|
66.1
|
Significant liquidated damagesb
|
(7)
|
(6)
|
16.7
|
|
(7)
|
(6)
|
16.7
|
Currency impact
|
-
|
(4)
|
NMa
|
|
-
|
1
|
NMa
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Underlying fee revenue and underlying fee operating
profit
|
657
|
495
|
32.7
|
|
365
|
219
|
66.7
|
|
Revenue
|
|
Operating profita
|
|||||
|
2022
|
2021
|
%
|
|
2022
|
2021
|
%
|
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
|
|
Per Interim financial statements
|
471
|
325
|
44.9
|
|
351
|
224
|
56.7
|
|
|
|
|
|
|
|
|
|
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
|
Fee business
|
413
|
296
|
39.5
|
|
342
|
236
|
44.9
|
|
Owned, leased and managed lease
|
58
|
29
|
100.0
|
|
9
|
(12)
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
|
471
|
325
|
44.9
|
|
351
|
224
|
56.7
|
|
|
|
|
|
|
|
|
|
|
Reportable segments (see above)
|
471
|
325
|
44.9
|
|
351
|
224
|
56.7
|
|
Owned and leased asset disposalsc
|
-
|
(5)
|
NMb
|
|
-
|
4
|
(100.0)
|
|
Currency impact
|
-
|
(1)
|
NMb
|
|
-
|
(1)
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Underlying revenue and underlying operating profit
|
471
|
319
|
47.6
|
|
351
|
227
|
54.6
|
|
|
|
|
|
|
|
|
|
|
Owned, leased and managed lease included in the above
|
(58)
|
(24)
|
141.7
|
|
(9)
|
8
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Underlying fee business
|
413
|
295
|
40.0
|
|
342
|
235
|
45.5
|
|
Revenue
|
|
Operating profita
|
||||
|
2022
|
2021
|
%
|
|
2022
|
2021
|
%
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
Per Interim financial statements
|
239
|
84
|
184.5
|
|
59
|
(27)
|
NMb
|
|
|
|
|
|
|
|
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
Fee business
|
121
|
53
|
128.3
|
|
63
|
(3)
|
NMb
|
Owned, leased and managed lease
|
118
|
31
|
280.6
|
|
(4)
|
(24)
|
83.3
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
239
|
84
|
184.5
|
|
59
|
(27)
|
NMb
|
|
|
|
|
|
|
|
|
Reportable segments (see above)
|
239
|
84
|
184.5
|
|
59
|
(27)
|
NMb
|
Significant liquidated damages
|
(7)
|
-
|
NMb
|
|
(7)
|
-
|
NMb
|
Owned and leased asset disposalsc
|
-
|
(1)
|
NMb
|
|
(2)
|
4
|
NMb
|
Currency impact
|
-
|
(5)
|
NMb
|
|
-
|
2
|
NMb
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Underlying revenue and underlying operating profit
|
232
|
78
|
197.4
|
|
50
|
(21)
|
NMb
|
|
|
|
|
|
|
|
|
Owned, leased and managed lease included in the above
|
(118)
|
(27)
|
337.0
|
|
6
|
18
|
(66.7)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Underlying fee business
|
114
|
51
|
123.5
|
|
56
|
(3)
|
NMb
|
|
Revenue
|
|
Operating profita
|
||||
|
2022
|
2021
|
%
|
|
2022
|
2021
|
%
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
Per Interim financial statements
|
|
|
|
|
|
|
|
Reportable segments analysed as:
|
36
|
59
|
(39.0)
|
|
5
|
31
|
(83.9)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Fee business
|
36
|
59
|
(39.0)
|
|
5
|
31
|
(83.9)
|
|
|
|
|
|
|
|
|
Reportable segments (see above)
|
36
|
59
|
(39.0)
|
|
5
|
31
|
(83.9)
|
Significant liquidated damagesc
|
-
|
(6)
|
NMb
|
|
-
|
(6)
|
NMb
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Underlying revenue and underlying operating profit
|
36
|
53
|
(32.1)
|
|
5
|
25
|
(80.0)
|
|
6 months ended 30 June
|
||||
2022
|
|
|
|
|
|
|
Americas
|
EMEAA
|
Greater China
|
Central
|
Total
|
Revenue $m
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
413
|
121
|
36
|
94
|
664
|
Significant liquidated damages
|
-
|
(7)
|
-
|
-
|
(7)
|
Captive insurance company
|
-
|
-
|
-
|
(8)
|
(8)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
413
|
114
|
36
|
86
|
649
|
|
|
|
|
|
|
Operating profit $m
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
342
|
63
|
5
|
(38)
|
372
|
Significant liquidated damages
|
-
|
(7)
|
-
|
-
|
(7)
|
Captive insurance company
|
-
|
-
|
-
|
(2)
|
(2)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
342
|
56
|
5
|
(40)
|
363
|
|
|
|
|
|
|
Fee margin %
|
82.8%
|
49.1%
|
13.9%
|
(46.5%)
|
55.9%
|
|
6 months ended 30 June
|
||||
2021
|
|
|
|
|
|
|
Americas
|
EMEAA
|
Greater China
|
Central
|
Total
|
Revenue $m
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
296
|
53
|
59
|
97
|
505
|
Significant liquidated damages
|
-
|
-
|
(6)
|
-
|
(6)
|
Captive insurance company
|
-
|
-
|
-
|
(9)
|
(9)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
296
|
53
|
53
|
88
|
490
|
|
|
|
|
|
|
Operating profit $m
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
236
|
(3)
|
31
|
(40)
|
224
|
Significant liquidated damages
|
-
|
-
|
(6)
|
-
|
(6)
|
Captive insurance company
|
-
|
-
|
-
|
(2)
|
(2)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
236
|
(3)
|
25
|
(42)
|
216
|
|
|
|
|
|
|
Fee margin %
|
79.7%
|
(5.7%)
|
47.2%
|
(47.7%)
|
44.1%
|
|
6 months ended
30 June
|
|
|
|
|
|
2022
|
2021
|
|
$m
|
$m
|
|
|
|
Net cash from investing activities
|
(27)
|
(37)
|
Adjusted for:
|
|
|
Contract acquisition costs, net of
repayments
|
(35)
|
(16)
|
System
Fund depreciation and amortisationa
|
40
|
39
|
Deferred purchase consideration
paid
|
-
|
13
|
|
_____
|
_____
|
Net capital expenditure
|
(22)
|
(1)
|
|
_____
|
_____
|
Analysed as:
|
|
|
Capital expenditure: maintenance (including contract acquisition
costs, net of repayments of $35m (2021: $16m))
|
(50)
|
(25)
|
Capital expenditure: recyclable investments
|
6
|
(8)
|
Capital expenditure: System Fund capital investments
|
22
|
32
|
|
_____
|
_____
|
Net capital expenditure
|
(22)
|
(1)
|
|
_____
|
_____
|
|
6 months ended
30 June
|
|
|
|
|
|
2022
|
2021
|
|
$m
|
$m
|
|
|
|
Net capital expenditure
|
(22)
|
(1)
|
Add back:
|
|
|
Disposal receipts
|
(7)
|
(1)
|
Repayments of contract acquisition
costs
|
(3)
|
(1)
|
System
Fund depreciation and amortisationa
|
(40)
|
(39)
|
|
_____
|
_____
|
Gross capital expenditure
|
(72)
|
(42)
|
|
_____
|
_____
|
Analysed as:
|
|
|
Capital
expenditure: maintenance (including contract
|
(53)
|
(26)
|
acquisition costs of $38m (2021:
$17m))
|
||
Capital
expenditure: recyclable investments
|
(1)
|
(9)
|
Capital
expenditure: System Fund capital investments
|
(18)
|
(7)
|
|
_____
|
_____
|
Gross capital expenditure
|
(72)
|
(42)
|
|
_____
|
_____
|
|
6 months ended
30 June
|
|
|
2022
|
2021
|
|
$m
|
$m
|
|
|
|
Net cash from operating activities
|
175
|
173
|
Adjusted for:
|
|
|
Principal
element of lease payments
|
(18)
|
(17)
|
Capital
expenditure: maintenance (excluding contract acquisition
costs)
|
(15)
|
(9)
|
|
_____
|
_____
|
Adjusted free cash flow
|
142
|
147
|
|
_____
|
_____
|
|
6 months ended
30 June
|
|
|
2022
|
2021
|
|
$m
|
$m
|
Net financial expenses
|
|
|
Financial income
|
5
|
1
|
Financial expenses
|
(74)
|
(73)
|
|
_____
|
_____
|
|
(69)
|
(72)
|
Adjusted for:
|
|
|
Interest attributable to the System Fund
Foreign exchange losses*
|
(3)
8
|
-
n/a
|
|
_____
|
_____
|
|
5
|
-
|
|
|
|
Adjusted interest
|
(64)
|
(72)
|
|
6 months ended
30 June
|
|
|
|
|
|
2022
|
2021
|
|
$m
|
$m
|
Profit
available for equity holders
|
216
|
48
|
Adjusting
items:
|
|
|
System
Fund revenues and expenses
|
(3)
|
46
|
Interest
attributable to the System Fund
|
(3)
|
-
|
Operating
exceptional items
|
19
|
4
|
Fair
value gain on contingent purchase consideration
|
(7)
|
(1)
|
Foreign
exchange losses*
|
8
|
n/a
|
Tax
on foreign exchange losses*
|
(1)
|
n/a
|
Tax
on exceptional items
|
(5)
|
(1)
|
Exceptional
tax
|
-
|
(22)
|
|
_____
|
_____
|
Adjusted earnings
|
224
|
74
|
|
|
|
Basic
weighted average number of ordinary shares (millions)
|
184
|
183
|
Adjusted
earnings per ordinary share (cents)
|
121.7
|
40.4
|
|
|
|
Reportable segments
|
Revenue
|
|
Operating profit
|
||||
|
|
|
|
|
|
|
|
|
2022
|
2019
|
%
|
|
2022
|
2019
|
%
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
Per Group income statement
|
1,794
|
2,280
|
(21.3)
|
|
361
|
442
|
(18.3)
|
System Fund
|
(554)
|
(675)
|
(17.9)
|
|
(3)
|
(47)
|
(93.6)
|
Reimbursement of costs
|
(400)
|
(593)
|
(32.5)
|
|
-
|
-
|
-
|
Operating exceptional items
|
-
|
-
|
-
|
|
19
|
15
|
26.7
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
840
|
1,012
|
(17.0)
|
|
377
|
410
|
(8.0)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
Fee business
|
664
|
730
|
(9.0)
|
|
372
|
394
|
(5.6)
|
Owned, leased and managed lease
|
176
|
282
|
(37.6)
|
|
5
|
16
|
(68.8)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
840
|
1,012
|
(17.0)
|
|
377
|
410
|
(8.0)
|
|
Revenue
|
|
Operating profita
|
|||||
|
2022
|
2019
|
%
|
|
2022
|
2019
|
%
|
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
|
|
Per Interim financial statements
|
471
|
520
|
(9.4)
|
|
351
|
341
|
2.9
|
|
|
|
|
|
|
|
|
|
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
|
Fee business
|
413
|
418
|
(1.2)
|
|
342
|
323
|
5.9
|
|
Owned, leased and managed lease
|
58
|
102
|
(43.1)
|
|
9
|
21
|
(57.1)
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
|
471
|
520
|
(9.4)
|
|
351
|
344
|
2.0
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Operating profita
|
||||
|
2022
|
2019
|
%
|
|
2022
|
2019
|
%
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
Per Interim financial statements
|
239
|
338
|
(29.3)
|
|
59
|
88
|
(33.0)
|
|
|
|
|
|
|
|
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
Fee business
|
121
|
158
|
(23.4)
|
|
63
|
93
|
(32.3)
|
Owned, leased and managed lease
|
118
|
180
|
(34.4)
|
|
(4)
|
(5)
|
(20.0)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
239
|
338
|
(29.3)
|
|
59
|
88
|
(33.0)
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Operating profita
|
||||
|
2022
|
2019
|
%
|
|
2022
|
2019
|
%
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
Per Interim financial statements
|
|
|
|
|
|
|
|
Reportable segments analysed as:
|
36
|
66
|
(45.5)
|
|
5
|
36
|
(86.1)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Fee business
|
36
|
66
|
(45.5)
|
|
5
|
36
|
(86.1)
|
|
|
|
|
|
|
|
|
|
6 months ended 30th June
|
||||||||
2019
|
|
|
|
|
|
||||
|
Americas
|
EMEAA
|
Greater China
|
Central
|
Total
|
||||
Revenue $m
|
|
|
|
|
|
||||
Reportable segments analysed as fee business (see
above)
|
418
|
158
|
66
|
88
|
730
|
||||
Significant liquidated damages
|
-
|
(4)
|
-
|
-
|
(4)
|
||||
Captive insurance company
|
-
|
-
|
-
|
(7)
|
(7)
|
||||
|
_____
|
_____
|
_____
|
_____
|
_____
|
||||
|
418
|
154
|
66
|
81
|
719
|
||||
|
|
|
|
|
|
||||
Operating profit $m
|
|
|
|
|
|
||||
Reportable segments analysed as fee business (see
above)
|
323
|
93
|
36
|
(58)
|
394
|
||||
Significant liquidated damages
|
-
|
(4)
|
-
|
-
|
(4)
|
||||
Captive insurance company
|
-
|
-
|
-
|
(1)
|
(1)
|
||||
|
_____
|
_____
|
_____
|
_____
|
_____
|
||||
|
323
|
89
|
36
|
(59)
|
389
|
||||
|
|
|
|
|
|
||||
Fee margin %
|
77.3%
|
57.8%
|
54.5%
|
(72.8%)
|
54.1%
|
●
|
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.
|
|
2022
6
months ended
30
June
$m
|
2021
6
months ended
30
June
$m
|
|
|
|
|
|
Revenue
from fee business
|
664
|
505
|
|
Revenue
from owned, leased and managed lease hotels
|
176
|
60
|
|
System
Fund revenues
|
554
|
378
|
|
Reimbursement
of costs
|
400
|
236
|
|
|
_____
|
_____
|
|
Total revenue (notes 3 and 4)
|
1,794
|
1,179
|
|
|
|
|
|
Cost of
sales and administrative expenses
|
(450)
|
(321)
|
|
System
Fund expenses
|
(551)
|
(424)
|
|
Reimbursed
costs
|
(400)
|
(236)
|
|
Share
of losses of associates
|
-
|
(5)
|
|
Other
operating income
|
14
|
2
|
|
Depreciation
and amortisation
|
(36)
|
(45)
|
|
Impairment
loss on financial assets
|
(5)
|
(8)
|
|
Other
impairment charges (note 5)
|
(5)
|
(4)
|
|
|
_____
|
_____
|
|
Operating profit (note 3)
|
361
|
138
|
|
|
|
|
|
Operating
profit analysed as:
|
|
|
|
Operating profit
before System Fund and exceptional items
|
377
|
188
|
|
System
Fund
|
3
|
(46)
|
|
Operating
exceptional items (note 5)
|
(19)
|
(4)
|
|
|
_____
|
_____
|
|
|
361
|
138
|
|
|
|
|
|
Financial
income
|
5
|
1
|
|
Financial
expenses
|
(74)
|
(73)
|
|
Fair
value gains on contingent purchase consideration
|
7
|
1
|
|
|
_____
|
_____
|
|
Profit before tax
|
299
|
67
|
|
|
|
|
|
Tax
(note 6)
|
(83)
|
(19)
|
|
|
_____
|
_____
|
|
Profit for the period from continuing operations
|
216
|
48
|
|
|
_____
|
_____
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Equity
holders of the parent
|
216
|
48
|
|
_____
|
_____
|
|
Earnings per ordinary share (note 7)
|
|
|
|
|
Basic
|
117.4¢
|
26.2¢
|
|
Diluted
|
116.8¢
|
26.1¢
|
|
|
|
|
2022
6 months ended
30 June
$m
|
2021
6 months ended
30 June
$m
|
|
|
|
|
|
Profit for the period
|
216
|
48
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
Items
that may be subsequently reclassified to profit or
loss:
|
|
|
|
|
Gains/(losses)
on cash flow hedges, including related tax credit of $1m (2021: $3m
charge)
|
13
|
(54)
|
|
Costs
of hedging
|
-
|
2
|
|
Hedging
(gains)/losses reclassified to financial expenses
|
(17)
|
66
|
|
Exchange
gains/(losses) on retranslation of foreign operations, including
related tax credit of $6m (2021: $nil)
|
198
|
(38)
|
|
_____
|
_____
|
|
|
194
|
(24)
|
|
Items
that will not be reclassified to profit or loss:
|
|
|
|
|
Gains
on equity instruments classified as fair value through other
comprehensive income, net of related tax charge of $2m (2021:
$1m)
|
3
|
9
|
|
Re-measurement
gains on defined benefit plans, net of related tax charge of $5m
(2021: tax credit of $1m)
|
15
|
5
|
|
Tax
related to pension contributions
|
-
|
2
|
|
|
_____
|
_____
|
|
|
18
|
16
|
|
_____
|
_____
|
|
Total other comprehensive income/(loss) for the period
|
212
|
(8)
|
|
|
_____
|
_____
|
|
Total comprehensive income for the period
|
428
|
40
|
|
|
_____
|
_____
|
|
Attributable
to:
|
|
|
|
|
Equity
holders of the parent
|
429
|
40
|
|
Non-controlling
interest
|
(1)
|
-
|
|
_____
|
_____
|
|
|
|
428
|
40
|
|
_____
|
_____
|
|
|
|
|
|
6 months ended 30 June 2022
|
||||
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
At
beginning of the period
|
154
|
(2,539)
|
904
|
7
|
(1,474)
|
|
|
|
|
|
|
Total
comprehensive income for the period
|
-
|
198
|
231
|
(1)
|
428
|
Release
of own shares by employee share trusts
|
-
|
17
|
(17)
|
-
|
-
|
Equity-settled
share-based cost
|
-
|
-
|
25
|
-
|
25
|
Equity
dividends paid
|
-
|
-
|
(154)
|
-
|
(154)
|
Exchange
adjustments
|
(16)
|
16
|
-
|
-
|
-
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
At end of the period
|
138
|
(2,308)
|
989
|
6
|
(1,175)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
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)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
*
Other reserves comprise the capital redemption reserve, shares held
by employee share trusts, other reserves, fair value reserve, cash
flow hedge reserves and currency translation reserve.
|
Total
comprehensive income is shown net of tax.
|
|
2022
30 June
|
2021
31 December
|
|
$m
|
$m
|
ASSETS
|
|
|
Goodwill
and other intangible assets
|
1,160
|
1,195
|
Property,
plant and equipment
|
126
|
137
|
Right-of-use
assets
|
282
|
274
|
Investment
in associates
|
76
|
77
|
Retirement
benefit assets
|
2
|
2
|
Other
financial assets
|
169
|
173
|
Deferred
compensation plan investments
|
213
|
256
|
Non-current
tax receivable
|
-
|
1
|
Deferred
tax assets
|
130
|
147
|
Contract
costs
|
73
|
72
|
Contract
assets
|
328
|
316
|
|
______
|
______
|
Total non-current assets
|
2,559
|
2,650
|
|
______
|
______
|
Inventories
|
4
|
4
|
Trade
and other receivables
|
691
|
574
|
Current
tax receivable
|
11
|
1
|
Other
financial assets
|
-
|
2
|
Cash
and cash equivalents
|
1,361
|
1,450
|
Contract
costs
|
5
|
5
|
Contract
assets
|
30
|
30
|
|
______
|
______
|
Total current assets
|
2,102
|
2,066
|
|
______
|
______
|
Total assets
|
4,661
|
4,716
|
|
_____
|
_____
|
LIABILITIES
|
|
|
Loans
and other borrowings
|
(278)
|
(292)
|
Lease
liabilities
|
(25)
|
(35)
|
Trade
and other payables
|
(518)
|
(579)
|
Deferred
revenue
|
(658)
|
(617)
|
Provisions
|
(51)
|
(49)
|
Current
tax payable
|
(26)
|
(52)
|
|
______
|
______
|
Total current liabilities
|
(1,556)
|
(1,624)
|
|
______
|
______
|
Loans
and other borrowings
|
(2,336)
|
(2,553)
|
Lease
liabilities
|
(402)
|
(384)
|
Derivative
financial instruments
|
(37)
|
(62)
|
Retirement
benefit obligations
|
(69)
|
(92)
|
Deferred
compensation plan liabilities
|
(213)
|
(256)
|
Trade
and other payables
|
(84)
|
(89)
|
Deferred
revenue
|
(1,016)
|
(996)
|
Provisions
|
(36)
|
(41)
|
Deferred
tax liabilities
|
(87)
|
(93)
|
|
______
|
______
|
Total non-current liabilities
|
(4,280)
|
(4,566)
|
|
______
|
______
|
Total liabilities
|
(5,836)
|
(6,190)
|
|
_____
|
_____
|
Net liabilities
|
(1,175)
|
(1,474)
|
|
_____
|
_____
|
EQUITY
|
|
|
IHG
shareholders’ equity
|
(1,181)
|
(1,481)
|
Non-controlling
interest
|
6
|
7
|
|
______
|
______
|
Total equity
|
(1,175)
|
(1,474)
|
|
_____
|
_____
|
|
|
|
|
2022
6 months ended
30 June
|
2021
6 months ended
30 June
|
|
$m
|
$m
|
|
|
|
Profit for the period
|
216
|
48
|
Adjustments
reconciling profit for the period to cash flow from operations
(note 9)
|
120
|
211
|
|
_____
|
_____
|
Cash flow from operations
|
336
|
259
|
Interest
paid
|
(42)
|
(40)
|
Interest
received
|
5
|
1
|
Tax
paid (note 6)
|
(124)
|
(47)
|
|
_____
|
_____
|
Net cash from operating activities
|
175
|
173
|
|
_____
|
_____
|
Cash flow from investing activities
|
|
|
Purchase
of property, plant and equipment
|
(12)
|
(3)
|
Purchase
of intangible assets
|
(21)
|
(13)
|
Investment
in associates
|
(1)
|
-
|
Investment
in other financial assets
|
-
|
(9)
|
Deferred
purchase consideration paid
|
-
|
(13)
|
Disposal
of property, plant and equipment
|
3
|
-
|
Repayments
of other financial assets
|
4
|
1
|
|
_____
|
_____
|
Net cash from investing activities
|
(27)
|
(37)
|
|
_____
|
_____
|
Cash flow from financing activities
|
|
|
Dividends
paid to shareholders (note 8)
|
(154)
|
-
|
Principal
element of lease payments
|
(18)
|
(17)
|
Repayment
of commercial paper
|
-
|
(828)
|
|
_____
|
_____
|
Net cash from financing activities
|
(172)
|
(845)
|
|
_____
|
_____
|
Net movement in cash and cash equivalents, net of overdrafts, in
the period
|
(24)
|
(709)
|
|
|
|
Cash
and cash equivalents, net of overdrafts, at beginning of the
period
|
1,391
|
1,624
|
Exchange
rate effects
|
(70)
|
20
|
|
_____
|
_____
|
Cash and cash equivalents, net of overdrafts, at end of the
period
|
1,297
|
935
|
|
_____
|
_____
|
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’. 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
2021.
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) 2410 ‘Review of Interim
Financial Information performed by the Independent Auditor of the
Entity’ issued by the Financial Reporting
Council.
Financial
information for the year ended 31 December 2021 has been extracted
from the Group’s published financial statements for that year
which were prepared in accordance with UK-adopted international
accounting standards and with applicable law and regulations and
which have been filed with the Registrar of Companies. The report
of the auditor was unqualified with no reference to matters to
which the auditor drew attention by way of emphasis and no
statement under s498(2) or s498(3) of the Companies Act
2006.
There are no changes in the Group’s critical judgements,
estimates and assumptions from those disclosed in the 2021 Annual
Report and Form 20-F. An updated sensitivity related to expected
credit losses is included in note 12(e).
Going concern
Trading
in the first half of 2022 continued to recover with ongoing
relaxation of travel restrictions supporting an increasing return
of travel demand, resulting in Global RevPAR recovering to
approximately 90% of 2019 levels. Continued focus on cash
conversion led to reported net cash from operating activities in
the first half of $175m and net debt reducing to
$1,718m.
The
Group’s bank facilities were refinanced in April 2022 with a
new revolving credit facility of $1,350m maturing in 2027, with
options to extend for a further two years. Previously negotiated
covenant relaxations and the $400m liquidity covenant, which were
applicable at 30 June and 31 December 2022 test dates, will no
longer apply. The leverage covenant has been adjusted to
incorporate the effects of IFRS 16 ‘Leases’ and has
been reset at 4.0x covenant net debt:covenant EBITDA (see note
10).
A period of 18 months has been used, from 1 July 2022 to 31
December 2023, to complete the going concern assessment. In
adopting the going concern basis for preparing these condensed
interim financial statements, the Directors have considered a
‘Base Case’ scenario which is based on continued
improvement in demand as travel restrictions are reduced, with
RevPAR continuing to recover towards pre-pandemic levels in 2023.
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. The assumptions applied in the Base Case
scenario are consistent with those used for Group planning
purposes, for impairment testing and for assessing recoverability
of deferred tax assets. Under the Base Case scenario, 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
covenant requirements of the new bank facility. A large number of
the Group’s principal risks, for example macro external
factors or preferred brands and loyalty, would result in an impact
on RevPAR which is one of the sensitivities assessed against the
headroom available in the Base Case. Climate risks are not
considered to have a significant impact over the 18-month period of
assessment. 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.
The Directors have also reviewed a ‘Downside Case’
based on a recession scenario which assumes performance during the
second half of 2022 starts to worsen and then RevPAR decreases by
5% in 2023. The Directors have also reviewed a ‘Severe
Downside Case’ which is based on a severe but plausible
scenario equivalent to the market conditions experienced through
the 2008/2009 global financial crisis. This assumes that the
performance during the second half of 2022 starts to worsen and
then RevPAR decreases significantly by 17% in 2023. It is assumed
that the additional shareholder return of $500m announced on 9
August 2022 is completed in full in all scenarios before additional
actions are taken. Under the Downside Case and Severe Downside
case, the bank facilities remain undrawn.
Under the Severe Downside scenario, there is limited headroom to
the bank covenants at 31 December 2023 to absorb additional risks.
However, based on experience in 2020, the Directors reviewed a
number of actions to reduce discretionary spend, creating
substantial additional headroom. After these actions are taken,
there is significant headroom to the bank covenants to absorb the
principal risks and uncertainties which could be
applicable.
In the Severe Downside Case, the Group has substantial levels of
existing cash reserves available after additional actions are taken
(over $850m at 31 December 2023) and is not expected to draw on the
bank facilities.
The Directors reviewed a reverse stress test scenario to determine
what decrease in RevPAR would create a breach of the covenants, and
the cash reserves that would be available to the Group at that
time. 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 up to 31 December
2023 (the last day of the assessment period), have been considered
as part of the Base Case, Downside Case and Severe Downside Case
scenarios. However, as the bank facilities are unlikely to be drawn
even in a scenario significantly worse than the Severe Downside
scenario, the Group does not need to rely on the additional
liquidity provided by the bank facilities to remain a going
concern. In the event that a 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, however the going concern conclusion is not dependent
on this expectation.
The Group’s fee based model and wide geographic spread have
been proven to leave it well-placed to manage through uncertain
times. Having reviewed these scenarios, the Directors have a
reasonable expectation that the Group has sufficient resources to
continue operating until at least 31 December 2023. 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 = £0.77 (2021: $1 = £0.72). In
the case of the euro, the translation rate is $1 = €0.92
(2021: $1 = €0.83).
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 = £0.83 (31 December 2021: $1 =
£0.74; 30 June 2021: $1 = £0.72). In the case
of the euro, the translation rate is $1 = €0.96 (31 December
2021: $1 = €0.88; 30 June 2021: $1 =
€0.84).
|
3.
|
Segmental Information
|
|
|
|
Revenue
|
2022
6 months ended
30 June
|
2021
6 months ended
30 June
|
|
|
$m
|
$m
|
|
|
|
|
|
Americas
|
471
|
325
|
|
EMEAA
|
239
|
84
|
|
Greater
China
|
36
|
59
|
|
Central
|
94
|
97
|
|
|
_____
|
_____
|
|
Revenue from reportable segments
|
840
|
565
|
|
System
Fund revenues
|
554
|
378
|
|
Reimbursement
of costs
|
400
|
236
|
|
|
_____
|
_____
|
|
Total revenue
|
1,794
|
1,179
|
|
|
_____
|
_____
|
|
Profit
|
2022
6 months ended
30 June
$m
|
2021
6 months ended
30 June
$m
|
|
|
|
|
|
Americas
|
351
|
224
|
|
EMEAA
|
59
|
(27)
|
|
Greater
China
|
5
|
31
|
|
Central
|
(38)
|
(40)
|
|
|
_____
|
_____
|
|
Operating profit from reportable segments
|
377
|
188
|
|
System
Fund
|
3
|
(46)
|
|
Operating
exceptional items (note 5)
|
(19)
|
(4)
|
|
|
_____
|
_____
|
|
Operating profit
|
361
|
138
|
|
Net
financial expenses
|
(69)
|
(72)
|
|
Fair
value gains on contingent purchase consideration
|
7
|
1
|
|
|
_____
|
_____
|
|
Profit before tax
|
299
|
67
|
|
|
_____
|
_____
|
4.
|
Revenue
|
|||||||||
|
Disaggregation of revenue
|
|||||||||
|
6 months ended 30 June 2022
|
|
|
|
|
|
||||
|
Americas
$m
|
EMEAA
$m
|
Greater China
$m
|
Central
$m
|
Group
$m
|
|||||
|
|
|
|
|
|
|||||
Franchise
and base management fees
|
406
|
96
|
31
|
-
|
533
|
|||||
Incentive
management fees
|
7
|
25
|
5
|
-
|
37
|
|||||
Central
revenue
|
-
|
-
|
-
|
94
|
94
|
|||||
|
_____
|
_____
|
_____
|
_____
|
_____
|
|||||
Revenue
from fee business
|
413
|
121
|
36
|
94
|
664
|
|||||
Revenue
from owned, leased and managed lease hotels
|
58
|
118
|
-
|
-
|
176
|
|||||
|
_____
|
_____
|
_____
|
_____
|
_____
|
|||||
|
471
|
239
|
36
|
94
|
840
|
|||||
|
_____
|
_____
|
_____
|
_____
|
|
|||||
System
Fund revenues
|
|
|
|
|
554
|
|||||
Reimbursement
of costs
|
|
|
|
|
400
|
|||||
|
|
|
|
|
_____
|
|||||
Total revenue
|
|
|
|
|
1,794
|
|||||
|
|
|
|
|
_____
|
6 months ended 30 June 2021
|
|
|
|
|
|
|
Americas
$m
|
EMEAA
$m
|
Greater China
$m
|
Central
$m
|
Group
$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
|
|
|
|
|
|
_____
|
|
At
30 June 2022, the maximum exposure remaining under performance
guarantees was $80m (31 December 2021: $85m).
|
5.
|
Exceptional items
|
|
|||||||||||
|
|
2022
6 months ended
30 June
$m
|
2021
6 months ended
30 June
$m
|
|
|||||||||
|
|
|
|
|
|
||||||||
|
Cost of sales and administrative expenses
|
|
|
|
|||||||||
|
Costs
of ceasing operations in Russia
|
(14)
|
-
|
|
|||||||||
|
|
|
|
|
|||||||||
|
Other impairment charges
|
|
|
|
|||||||||
|
Impairment
of contract assets
|
(5)
|
-
|
|
|||||||||
|
Impairment
of associates
|
-
|
(4)
|
|
|||||||||
|
|
_____
|
_____
|
|
|||||||||
|
|
(5)
|
(4)
|
|
|||||||||
|
|
____
|
____
|
|
|||||||||
|
Total operating exceptional items
|
(19)
|
(4)
|
|
|||||||||
|
|
_____
|
_____
|
|
|||||||||
|
|
|
|
|
|||||||||
|
Tax on
exceptional items
|
5
|
1
|
|
|||||||||
|
Exceptional
tax
|
-
|
22
|
|
|||||||||
|
|
_____
|
_____
|
|
|||||||||
|
Tax (note 6)
|
5
|
23
|
|
|||||||||
|
|
_____
|
_____
|
|
|||||||||
|
Costs of ceasing operations in Russia
On 27
June 2022, the Group announced it is in the process of ceasing all
operations in Russia consistent with evolving UK, US and EU
sanction regimes and the ongoing and increasing challenges of
operating there. The costs associated with the cessation of
corporate operations in Moscow and long-term management and
franchise contracts are treated as exceptional due to the nature of
the war in Ukraine which has driven the Group’s
response.
Impairment of contract assets
Relates
to key money relating to managed and franchised hotels in Russia.
The impairment is treated as exceptional for consistency with the
costs of ceasing operations described above.
|
|
|||||||||||
6.
|
Tax
|
||||||||||||
|
|
2022
6 months ended
30 June
|
2021
6 months ended
30 June
|
||||||||||
|
|
Profit/(loss)
$m
|
Tax
$m
|
Tax
rate
|
Profit/(loss)
$m
|
Tax
$m
|
Tax
rate
|
||||||
|
|
|
|
|
|
|
|
||||||
|
Before
exceptional items and System Fund
|
315
|
(88)
|
28%
|
117
|
(42)
|
36%
|
||||||
|
System
Fund
|
3
|
-
|
|
(46)
|
-
|
|
||||||
|
Exceptional items
(note 5)
|
(19)
|
5
|
|
(4)
|
23
|
|
||||||
|
|
_____
|
_____
|
|
_____
|
_____
|
|
||||||
|
|
299
|
(83)
|
|
67
|
(19)
|
|
||||||
|
|
_____
|
_____
|
|
_____
|
_____
|
|
||||||
|
|
|
|
|
|
|
|
||||||
|
Analysed
as:
|
|
|
|
|
|
|
||||||
|
|
Current
tax
|
|
(88)
|
|
|
(43)
|
|
|||||
|
|
Deferred
tax
|
|
5
|
|
|
24
|
|
|||||
|
|
|
_____
|
|
|
_____
|
|
||||||
|
|
|
(83)
|
|
|
(19)
|
|
||||||
|
|
|
_____
|
|
|
_____
|
|
||||||
|
Further
analysed as:
|
|
|
|
|
|
|
||||||
|
|
UK
tax
|
|
(3)
|
|
|
23
|
|
|||||
|
|
Foreign
tax
|
|
(80)
|
|
|
(42)
|
|
|||||
|
|
|
_____
|
|
|
_____
|
|
||||||
|
|
|
(83)
|
|
|
(19)
|
|
||||||
|
|
|
_____
|
|
|
_____
|
|
||||||
|
Tax
before exceptional items and System Fund has been calculated by
applying a blended effective tax rate of 28%. 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 2022 to provide the best estimate
for the full financial year. It is higher than the 2022 UK
Corporation Tax rate of 19% due to higher taxed overseas profits
(particularly in the US) and the impact of unrelieved foreign taxes
and other non-tax deductible expenses.
The
deferred tax asset comprises $109m (31 December 2021: $127m)
in the UK and $21m (31 December 2021: $20m) in respect of other
territories. The deferred tax asset has been recognised based upon
forecasts consistent with those used in the going concern
assessment.
Tax
paid of $124m in the period exceeds the current tax charge in the
Group income statement predominantly as a result of liabilities
already accrued at 1 January 2022 being settled in the period and
the phasing of the 2022 US instalment payments.
|
7.
|
Earnings per ordinary share
|
||
|
|
2022
6
months ended
30
June
|
2021
6
months ended
30 June
|
|
Basic earnings per ordinary share
|
|
|
|
Profit
available for equity holders ($m)
|
216
|
48
|
|
Basic
weighted average number of ordinary shares (millions)
|
184
|
183
|
|
Basic
earnings per ordinary share (cents)
|
117.4
|
26.2
|
|
|
_____
|
_____
|
|
Diluted earnings per ordinary share
|
|
|
|
Profit
available for equity holders ($m)
|
216
|
48
|
|
Diluted
weighted average number of ordinary shares (millions)
|
185
|
184
|
|
Diluted
earnings per ordinary share (cents)
|
116.8
|
26.1
|
|
|
_____
|
_____
|
|
The
diluted weighted average number of ordinary shares is calculated
as:
|
||
|
|
|
|
|
Basic
weighted average number of ordinary shares (millions)
|
184
|
183
|
|
Dilutive
potential ordinary shares (millions)
|
1
|
1
|
|
|
______
|
______
|
|
|
185
|
184
|
|
|
_____
|
_____
|
8.
|
Dividends
|
|||||
|
|
|
2022
|
|
2021
|
|
|
|
6 months ended
30 June
|
6 months ended
30 June
|
|||
|
|
cents per share
|
$m
|
cents per share
|
$m
|
|
|
|
|
|
|
|
|
|
Paid
during the period
|
85.9
|
154
|
-
|
-
|
|
|
|
|
______
|
______
|
______
|
______
|
|
|
|
|
|
|
|
|
Proposed
for the interim period
|
43.9
|
81
|
-
|
-
|
|
|
|
______
|
______
|
______
|
______
|
|
|
|
|
|
|
|
|
|
In
addition to the interim dividend of 43.9 cents per share, in August
2022 the Board also approved a $500m share buyback programme that
will commence on 9 August and end no later than 31 January
2023.
|
9.
|
Reconciliation of profit for the period to cash flow from
operations
|
|
2022
6 months ended
30 June
|
2021
6 months ended
30 June
|
|
|
$m
|
$m
|
|
|
|
|
|
Profit
for the period
|
216
|
48
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
Net
financial expenses
|
69
|
72
|
|
Fair
value gains on contingent purchase consideration
|
(7)
|
(1)
|
|
Income
tax charge
|
83
|
19
|
|
|
|
|
|
Operating profit
adjustments:
|
|
|
|
Impairment loss on
financial assets
|
5
|
8
|
|
Other
impairment charges
|
5
|
4
|
|
Other
operating exceptional items
|
14
|
-
|
|
Depreciation and
amortisation
|
36
|
45
|
|
|
_____
|
_____
|
|
|
60
|
57
|
|
|
|
|
|
Contract assets
deduction in revenue
|
17
|
16
|
|
Share-based
payments cost
|
17
|
14
|
|
Share
of losses of associates
|
-
|
5
|
|
|
_____
|
_____
|
|
|
34
|
35
|
|
|
|
|
|
System
Fund adjustments:
|
|
|
|
Depreciation and
amortisation
|
42
|
41
|
|
Impairment loss on
financial assets
|
4
|
3
|
|
Share-based
payments cost
|
9
|
6
|
|
Share
of losses of associates
|
-
|
1
|
|
|
_____
|
_____
|
|
|
55
|
51
|
|
|
|
|
|
Working
capital and other adjustments:
|
|
|
|
Increase in
deferred revenue
|
65
|
35
|
|
Changes
in working capital
|
(189)
|
(29)
|
|
|
_____
|
_____
|
|
|
(124)
|
6
|
|
|
|
|
|
Cash
flows relating to exceptional items
|
(15)
|
(12)
|
|
Contract
acquisition costs, net of repayments
|
(35)
|
(16)
|
|
|
_____
|
_____
|
Total
adjustments
|
120
|
211
|
|
|
_____
|
_____
|
|
Cash
flow from operations
|
336
|
259
|
|
|
_____
|
_____
|
10.
|
Net debt
|
||
|
|
2022
30
June
|
2021
31
December
|
|
|
$m
|
$m
|
|
|
|
|
|
Cash
and cash equivalents*
|
1,361
|
1,450
|
|
Loans
and other borrowings – current
|
(278)
|
(292)
|
|
Loans
and other borrowings – non-current
|
(2,336)
|
(2,553)
|
|
Lease
liabilities – current
|
(25)
|
(35)
|
|
Lease
liabilities – non-current
|
(402)
|
(384)
|
|
Derivative
financial instruments hedging debt values
|
(38)
|
(67)
|
|
|
_____
|
_____
|
|
Net debt**
|
(1,718)
|
(1,881)
|
|
|
_____
|
_____
|
|
* Of
which $152m (31 December 2021: $124m) 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 $64m bank overdrafts (31 December 2021:
$59m).
|
|
Cash
and cash equivalents includes $8m (31 December 2021: $9m)
restricted for use on capital expenditure under hotel lease
agreements and therefore not available for wider use by the Group.
An additional $26m (31 December 2021: $77m) is held within
countries from which funds are not currently able to be repatriated
to the Group’s central treasury company.
|
||
|
Bank facilities
In
April 2022, the Group’s $1,275m revolving syndicated bank
facility and $75m revolving bilateral facility were refinanced with
a $1,350m revolving syndicated bank facility. The facility was
undrawn at 30 June 2022.
The new
facility contains two financial covenants: interest cover and a
leverage ratio. These are tested at half year and full year on a
trailing 12-month basis, with 30 June 2022 being the first test
date.
The
interest cover covenant requires a ratio of Covenant EBITDA:
Covenant interest payable above 3.5:1 and the leverage ratio
requires Covenant net debt: Covenant EBITDA below
4.0:1.
The
previous covenants, as set out in the 2021 Annual Report and Form
20-F, were waived until 31 December 2021 and had been relaxed for
test dates in 2022. The temporary $400m liquidity covenant, which
was previously applicable at 30 June and 31 December 2022 test
dates, will no longer apply.
|
||
|
|
2022
30
June
|
2021
31
December*
|
|
|
|
|
|
Covenant
EBITDA ($m)
|
812
|
601
|
|
Covenant
net debt ($m)
|
1,752
|
1,801
|
|
Covenant
interest payable ($m)
|
133
|
133
|
|
Leverage
|
2.16
|
3.00
|
|
Interest
cover
|
6.11
|
4.52
|
|
Liquidity
($m)
|
n/a
|
2,655
|
|
|
|
|
|
* In
2021, covenant measures were reported on a frozen GAAP basis
excluding the effect of IFRS 16, an adjustment which is eliminated
under the new facility agreement.
|
11.
|
Movement in net debt
|
|||
|
|
2022
6 months ended
30 June
|
2021
6
months ended
30 June
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Net
decrease in cash and cash equivalents, net of
overdrafts
|
(24)
|
(709)
|
|
|
Add
back financing cash flows in respect of other components of net
debt:
|
|
|
|
|
|
Principal
element of lease payments
|
18
|
17
|
|
|
Repayment
of commercial paper
|
-
|
828
|
|
|
_____
|
_____
|
|
|
(Increase)/decrease
in net debt arising from cash flows
|
(6)
|
136
|
|
|
|
|
|
|
|
Other
movements:
|
|
|
|
|
|
Lease
liabilities
|
(32)
|
(3)
|
|
|
Increase
in accrued interest
|
(24)
|
(25)
|
|
|
Exchange
and other adjustments
|
225
|
(37)
|
|
|
_____
|
_____
|
|
|
Decrease in net debt
|
163
|
71
|
|
|
|
|
|
|
|
Net
debt at beginning of the period
|
(1,881)
|
(2,529)
|
|
|
|
_____
|
_____
|
|
|
Net debt at end of the period
|
(1,718)
|
(2,458)
|
|
|
|
_____
|
_____
|
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*
|
-
|
-
|
109
|
109
|
|
Money
market funds**
|
882
|
-
|
-
|
882
|
|
Deferred
compensation plan investments
|
213
|
-
|
-
|
213
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
Derivative
financial instruments
|
-
|
(37)
|
-
|
(37)
|
|
Contingent
purchase consideration***
|
-
|
-
|
(66)
|
(66)
|
|
Deferred
compensation plan liabilities
|
(213)
|
-
|
-
|
(213)
|
|
*
Included in ‘other financial assets’.
**
Included in ‘other financial assets’ and ‘cash
and cash equivalents’.
***
Included in ‘trade and other payables’.
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 2022 are consistent with those
disclosed within the 2021 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 fallen to $37m, primarily driven by movements in sterling:euro
exchange rates which impact the valuation of currency
swaps.
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 6.3% to 9.3%) 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/$7m (decrease)/increase in fair value respectively. A one
percentage point increase/decrease in the discount rate would
result in a $10m (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.
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 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
|
Contingent
purchase consideration
$m
|
|
|
|
|
|
At 1
January 2022
|
106
|
(73)
|
|
Unrealised
changes in fair value
|
5
|
7
|
|
Exchange
and other adjustments
|
(2)
|
-
|
|
|
_____
|
_____
|
|
At 30 June 2022
|
109
|
(66)
|
|
|
_____
|
_____
|
|
|
|
|
|
Changes
in the fair value of equity securities are recognised within
‘Gains on equity instruments classified as fair value through
other comprehensive income’ in the Group statement of
comprehensive income.
Changes
in the fair value of contingent purchase consideration are
recognised within ‘Fair value gains on contingent purchase
consideration’ in the Group income statement.
|
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 $2,550m and a fair value of
$2,378m.
The
Group did not measure any financial assets or liabilities at fair
value on a non-recurring basis as at 30 June 2022.
|
e)
|
Estimation uncertainty related to financial
instruments
Consistent
with 31 December 2021, 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. There also remains a risk of reduced owner
liquidity. If historical evidence was applied to all owner groups
(rather than by reference to other sources of data), the provision
would reduce by approximately $11m; alternatively a 10% collection
rate of amounts over 270 days would reduce the provision by
approximately $9m.
|
13.
|
Commitments, contingencies and guarantees
|
|
At 30
June 2022, the amount contracted for but not provided for in the
financial statements for expenditure on property, plant and
equipment and intangible assets was $26m (31 December 2021:
$17m).
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; such proceedings,
either individually or in the aggregate, have not in the recent
past and are not likely to have a significant effect on the
Group’s financial position or profitability. In the EMEAA
region, one such dispute is expected to be resolved in the second
half of the year and, in the six months ended 30 June 2022, a
further dispute has been found in the Group’s favour, subject
to appeal, with no liability arising.
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 2022, there were guarantees of up
to $67m in place (31 December 2021: $69m).
Subsequent
to 30 June 2022, the Group has agreed to restructure the UK
portfolio leases with substantially lower rental payments. The
revised portfolio will comprise nine IHG-branded hotels, with the
leases of three unbranded hotels terminating in the second half of
2022. This is a non-adjusting event since commitments were made
after 30 June 2022. Documentation is expected to be signed in the
second half of 2022, subject to obtaining consent from superior
landlords.
The
structure of the revised leases is similar to the current leases
which contain guarantees that the Group will fund any shortfalls in
lease payments up to an annual and cumulative cap. These caps limit
the Group’s exposure to trading losses, meaning that rental
payments are reduced if insufficient cash flows are generated by
the hotels. In the event that rent reductions are not applicable,
annual base rental payments stabilise at £34m over the
remaining lease term of 21 years. Additional performance-based
rental payments are calculated using hotel revenues and net cash
flows.
The
revised terms are expected to result in an immaterial reversal of
previous impairment of property, plant and equipment and related
adjustments to deferred tax. Existing provisions for onerous
contractual expenditure will be utilised on termination of the
three leases.
|
|
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 2022 (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.
The interim financial statements comprise:
●
the
Group statement of financial position at
30 June 2022;
●
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.
Basis for conclusion
We conducted our review in accordance with International Standard
on Review Engagements (UK) 2410 ‘Review of Interim Financial
Information Performed by the Independent Auditor of the
Entity’ issued by the Financial Reporting Council 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.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those
performed in an audit as described in the basis for conclusion
section of this report, nothing has come to our attention to
suggest that the Directors have inappropriately adopted the going
concern basis of accounting or that the Directors have identified
material uncertainties relating to going concern that are not
appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with this ISRE. However, future
events or conditions may cause the Group to cease to continue as a
going concern.
|
|
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. In preparing the Half Year Results,
including the interim financial statements, the Directors are
responsible for assessing the Group’s ability to continue as
a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting
unless the Directors either intend to liquidate the Group or to
cease operations or have no realistic alternative but to do
so.
Our responsibility is to express a conclusion on the interim
financial statements in the Half Year Results based on our review.
Our conclusion, including our conclusions relating to going
concern, is based on procedures that are less extensive than audit
procedures as described in the basis for conclusion paragraph of
this report. 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.
PricewaterhouseCoopers LLP
Chartered Accountants
London
8 August 2022
|
|
|
InterContinental Hotels Group PLC
|
|
|
(Registrant)
|
|
|
|
|
By:
|
/s/ C.
Lindsay
|
|
Name:
|
C.
LINDSAY
|
|
Title:
|
ASSISTANT
COMPANY SECRETARY
|
|
|
|
|
Date:
|
9 August 2022
|
|
|
|