a6356d
SECURITIES
AND EXCHANGE COMMISSION
Washington
DC 20549
FORM 6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 AND 15d-16
OF
THE
SECURITIES EXCHANGE ACT OF 1934
For 21
October 2022
InterContinental Hotels Group PLC
(Registrant's
name)
Broadwater
Park, Denham, Buckinghamshire, UB9 5HJ, United Kingdom
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F
Form 40-F
Indicate
by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes
No
If
"Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): Not
applicable
EXHIBIT
INDEX
99.1
|
2022
Third Quarter Trading Update dated 21 October 2022
|
Exhibit
No: 99.1
21 October 2022
InterContinental Hotels Group PLC
2022 Third Quarter Trading Update
Highlights
●
Q3 group RevPARa +28%
vs 2021; +2.7% vs 2019, with Americas +6.8%, EMEAA (0.1)% and
Greater China (20.0)%
●
Average
daily rate +13% vs 2021, +11% vs 2019; occupancy +8%pts vs 2021,
-6%pts vs 2019
●
Gross
system size growth +4.3% YOY; opened 8.0k rooms (51 hotels) in Q3,
similar to Q2 and ahead of Q1
●
Underlying
removal rate -1.7% YOY; removals YTD equate to an annualised
underlying rate of -1.3%
●
Net system size growth +2.6% YOY on an
adjustedb basis
●
Global
system of 888k rooms (6,061 hotels); 67% across midscale segments,
33% across upscale and luxury
●
Signed
13.2k rooms (89 hotels) in Q3, similar to Q2 and last year; global
pipeline of 278k rooms, +2.9% YOY
Keith Barr, Chief Executive Officer, IHG Hotels & Resorts,
said:
"Strong trading in the third quarter helped our group-wide RevPAR
exceed pre-pandemic levels. Leisure stays saw rooms revenue
increase 12% on 2019, while the ongoing return of business and
group travel has been building each quarter through the year.
RevPAR performance in the Americas was well ahead compared to three
years ago and the EMEAA region was back to broadly flat on 2019
levels. Improvements in Greater China reflected the lifting of some
of the Covid-related travel restrictions and, while the potential
for further lockdowns there continues, we are pleased with overall
group momentum.
Against a backdrop of inflationary pressure in most economies
around the world, the strength of IHG's brands is clear with rate
up 11% on 2019. As well as leisure rates being up around 15% in the
quarter, business rates were up by 7% and group activity also saw
rate move into positive territory on 2019 levels. Employment levels
globally remain high, which supports occupancy levels that are
8%pts up on last year and now just 6%pts below 2019. Demand has
therefore remained robust, and more is still to return in a number
of segments and countries.
The industry is experiencing lower levels of new hotel opening
activity, and with a particular impact from the restrictions in
China. Despite this, in this latest quarter, we opened 51 hotels
and signed 89 more into our pipeline. In the year to date our newer
brands grew to be 12% of signings, while conversions increased to
be over 30% of openings. We are also achieving the expected
lowering of the removal rate to around 1.5%, with this driven by
the success of the review activity undertaken last year that
further improved the quality and consistency of our
estate.
We remain focused on our strategy to develop IHG's portfolio of
brands, invest in leading technology and transform our loyalty
programme. These appeal very strongly to hotel owners to join our
enterprise platform, and we continue to explore a number of organic
opportunities to help deliver on our ambitions for net system size
growth. We have also proven the resiliency of our business model
and the ability for IHG to respond and adapt to opportunities and
to macroeconomic uncertainties. These reinforce the confidence we
have in our ability to drive attractive levels of long-term,
sustainable growth."
Regional performance
Americas
Q3 RevPAR was up 6.8% vs 2019 (up 17% vs 2021). US RevPAR was up
6.2% vs 2019. Across the region, occupancy was 71%, down 3%pts on
2019, whilst rate was up 12%. Demand was boosted by a strong summer
vacation period and Labor Day in the US, with leisure rooms revenue
13% higher than 2019 for the quarter overall. Sequential
improvement in business travel also resulted in revenue from this
category returning to 2019 levels. By brand for the region, Holiday
Inn Express saw Q3 RevPAR exceed 2019 by 10%, with similarly strong
performances at our Staybridge Suites and Candlewood Suites
extended stay brands, and also Hotel Indigo.
Gross system size growth was +2.2% YOY, with 2.8k rooms (22 hotels)
opened in the quarter. Net system size growth was +0.8% YOY on an
adjusted basis. 5.3k rooms (50 hotels) were added to the pipeline,
around 40% more than the prior quarter. Signings year-to-date of
16.9k (158 hotels) are more than 40% ahead of each of the last two
years.
EMEAA
Q3 RevPAR was down just 0.1% vs 2019 (up 76% vs 2021). Occupancy
was 70%, down 9%pts on 2019, whilst rate was up 12%. The prior
lifting of Covid-related travel restrictions drove strong
sequential improvement, with the region having previously seen
RevPAR down 10% in Q2 and down 33% in Q1 on 2019 levels.
Leisure-driven revenue was 8% ahead of 2019 for the quarter.
By major geographic markets within the region, the breadth of
RevPAR performance generally reflected the amount of return of
international travel, together with the level of seasonal leisure
demand. Q3 RevPAR vs 2019 levels therefore ranged from up 11%
in Continental Europe, up 7% in the UK and up 3% in Australia, to
down 12% in the Middle East, down 19% in South East Asia &
Korea and down 35% in Japan.
Gross system size growth was +5.9% YOY, with 1.4k rooms (9 hotels)
opened in the quarter. Net system size growth was +3.6% YOY on an
adjusted basis. There were 2.5k rooms (13 hotels) added to the
pipeline.
Greater China
Q3 RevPAR was down 20.0% vs 2019 (up 12% vs 2021). Occupancy was
55%, down 11%pts on 2019, whilst rate was down 4%. Having
experienced RevPAR down 42% vs 2019 in Q1 and down 49% in Q2, there
was significant improvement in the latest quarter as Covid-related
travel restrictions eased. However, an increasing number of
restrictions were reintroduced again towards the end of the
quarter, with these continuing into October.
Gross system size growth was +8.7% YOY, with 3.8k rooms (20 hotels)
opened in the quarter. Covid-related restrictions continued to
impact the ability for new hotels to open, though the pace picked
up from only 5 openings in Q1 and 14 in Q2. Net system size growth
was +6.9% YOY on an adjusted basis. Signings also picked up from
the prior quarter, with 5.4k rooms (26 hotels) added to the
pipeline.
Unauthorised access to technology systems
IHG announced on 6 September that part of the Company's technology
systems had been subject to unauthorised activity which had caused
disruption to IHG's booking channels and other applications since
the prior day. By 7 September, IHG had re-activated its
booking websites and mobile app, together with most of its other
booking channels and revenue-generating systems. Service at our
Reservation and Customer Care call centres was subsequently
recovered and all our systems restored. During the disruption to
our central systems, IHG-branded hotels continued to operate and
were able to take reservations directly. Our subsequent
announcement on 29 September also updated that external specialists
engaged to investigate the incident had identified no evidence of
unauthorised access to systems storing guest data. We have
continued to carry out additional steps as part of our recovery and
assurance plans to review and further enhance security measures,
and the criminal activity has been reported to law
enforcement.
Share buyback update
At the time of reporting our half year results on 9 August 2022,
IHG announced a $500m share buyback programme to return surplus
capital to shareholders. The programme commenced on the date of
that announcement and will end no later than 31 January 2023. The
programme is currently 59% complete with $297.0m (£260.6m)
having been cumulatively spent to date, repurchasing 5,648,895
shares at an average price of £46.12 per share. The programme
to date has therefore reduced the total number of voting rights in
the Company by 3.07% to 178,367,417 as at market close on Thursday
20 October 2022. Earnings per share is calculated using the
weighted average number of shares in issue for the year which will
reduce accordingly to take account of the timing of shares
repurchased.
Debt facilities and currency exposure
As part of our debt facilities, IHG currently has six bond issues
outstanding. These issues are GBP denominated or EUR denominated
that were swapped to GBP at the time of issuance. The current gross
debt outstanding, including the impact of swaps, is £2,113m.
IHG also holds approximately £0.5bn in cash. Upon maturity in
November 2022, a bond issue with £173m outstanding will be
repaid from GBP cash resources. The remaining five bond issues have
maturities phased broadly evenly between October 2024 and October
2028. IHG will therefore continue to hold approximately £1.6bn
of net debt that will be translated into our USD reporting currency
at the balance sheet date.
At the 30 June 2022 balance sheet date, the translation of the
Group's bond debt was the principal driver of a favourable net
foreign exchange benefit of $227m in the first half of the year.
The translation rate was £1:$1.21 at 30 June 2022 and
£1:$1.35 at 31 December 2021. On approximately £1.6bn of
net debt, each 10c movement in the rate of exchange between balance
sheet dates results in a translation impact of approximately
$160m.
For further information, please contact:
Investor
Relations: Stuart
Ford (+44 (0)7823 828 739); Aleksandar Milenkovic (+44 (0)7469 905
720);
Joe Simpson (+44 (0)7976 862 072)
Media Relations:
Amy Shields
(+44 (0)7881 035 550); Dan Winter (+44 (0)7423 793
352)
Conference call for analysts and institutional
shareholders:
Paul Edgecliffe-Johnson, Chief Financial Officer and Group Head of
Strategy, will host a call commencing at 9:00am (London time) on 21
October. The live listen-only audio webcast can be accessed
directly at https://www.investis-live.com/ihg/63404529bbaa6b0c0064cd38/fwjwq or
via www.ihgplc.com/en/investors/results-and-presentations.
Analysts and institutional shareholders wishing to ask questions
should use the following dial-in details for a Q&A
facility:
UK:
|
0800
640 6441
|
UK
local:
|
0203
936 2999
|
US:
|
+1 855
979 6654
|
US
local:
|
+1 646
664 1960
|
All
other locations:
|
+44 203
936 2999
|
Passcode:
|
47 78
26
|
An audio replay will also be available for 7 days using the
following details:
UK:
|
0203
936 3001
|
US:
|
+1 845
709 8569
|
All
other locations:
|
+44 203
936 3001
|
Passcode:
|
41 20
85
|
Website:
The full release and supplementary data will be available on our
website from 7:00am (London time) on 21 October. The web address
is www.ihgplc.com/en/investors/results-and-presentations.
About IHG Hotels & Resorts:
IHG Hotels & Resorts [LON:IHG,
NYSE:IHG (ADRs)] is a global hospitality company, with a purpose to
provide True Hospitality for Good.
With a family of 17 hotel brands and IHG
One Rewards, one of the world's
largest hotel loyalty programmes, IHG has over 6,000 open hotels in
more than 100 countries, and more than 1,800 in the development
pipeline.
-
Luxury &
Lifestyle: Six
Senses Hotels Resorts Spas, Regent
Hotels & Resorts, InterContinental
Hotels & Resorts, Vignette
Collection, Kimpton
Hotels & Restaurants, Hotel
Indigo
-
Premium: voco
hotels, HUALUXE
Hotels & Resorts, Crowne
Plaza Hotels & Resorts, EVEN
Hotels
-
Essentials: Holiday
Inn Hotels & Resorts, Holiday
Inn Express, avid
hotels
-
Suites: Atwell
Suites, Staybridge
Suites, Holiday
Inn Club Vacations, Candlewood
Suites
InterContinental Hotels Group PLC is the Group's holding company
and is incorporated and registered in England and Wales.
Approximately 325,000 people work across IHG's hotels and corporate
offices globally.
Visit us online for more about our hotels
and reservations and IHG
One Rewards. To
download the new IHG One Rewards app, visit the Apple
App or Google
Play stores.
For our latest news, visit our Newsroom and
follow us on LinkedIn, Facebook and Twitter.
Cautionary note regarding forward-looking statements:
This announcement contains certain forward-looking statements as
defined under United States law (Section 21E of the Securities
Exchange Act of 1934) and otherwise. These forward-looking
statements can be identified by the fact that they do not relate
only to historical or current facts. Forward-looking statements
often use words such as 'anticipate', 'target', 'expect',
'estimate', 'intend', 'plan', 'goal', 'believe' or other words of
similar meaning. These statements are based on assumptions and
assessments made by InterContinental Hotels Group PLC's management
in light of their experience and their perception of historical
trends, current conditions, expected future developments and other
factors they believe to be appropriate. By their nature,
forward-looking statements are inherently predictive, speculative
and involve risk and uncertainty. There are a number of factors
that could cause actual results and developments to differ
materially from those expressed in or implied by, such
forward-looking statements. The main factors that could affect the
business and the financial results are described in the 'Risk
Factors' section in the current InterContinental Hotels Group PLC's
Annual report and Form 20-F filed with the United States Securities
and Exchange Commission.
Appendix 1: RevPARa movement
summary at constant exchange rates (CER)
|
Q3 2022 vs 2021
|
Q3 2022 vs 2019
|
|
RevPAR
|
ADR
|
Occupancy
|
RevPAR
|
ADR
|
Occupancy
|
Group
|
27.8%
|
12.8%
|
7.9%pts
|
2.7%
|
11.3%
|
(5.8)%pts
|
Americas
|
16.7%
|
9.7%
|
4.2%pts
|
6.8%
|
11.9%
|
(3.4)%pts
|
EMEAA
|
76.1%
|
28.0%
|
18.9%pts
|
(0.1)%
|
12.2%
|
(8.6)%pts
|
G.
China
|
11.7%
|
2.2%
|
4.6%pts
|
(20.0)%
|
(3.8)%
|
(11.2)%pts
|
|
Q3 YTD 2022 vs 2021
|
Q3 YTD 2022 vs 2019
|
|
RevPAR
|
ADR
|
Occupancy
|
RevPAR
|
ADR
|
Occupancy
|
Group
|
40.9%
|
19.3%
|
9.4%pts
|
(5.7)%
|
6.7%
|
(8.2)%pts
|
Americas
|
33.0%
|
16.6%
|
8.2%pts
|
1.5%
|
7.9%
|
(4.2)%pts
|
EMEAA
|
108.7%
|
31.0%
|
22.6%pts
|
(13.2)%
|
5.4%
|
(13.2)%pts
|
G.
China
|
(13.9)%
|
(1.3)%
|
(6.3)%pts
|
(36.8)%
|
(12.4)%
|
(17.1)%pts
|
a
RevPAR is presented on a comparable basis, comprising groupings of
hotels that have traded in all months in both years being compared.
Comparable hotel groupings will be different for comparisons
between 2022 vs 2021, 2022 vs 2019, 2021 vs 2019 and 2020 vs 2019.
See 'Use of key performance measures and non-GAAP measures' in
IHG's half year and full year results announcements for further
information on the definition of RevPAR.
Appendix 2: RevPARa movement
at CER vs actual exchange rates (AER)
|
Q3 2022 vs 2021
|
Q3 2022 vs 2019
|
|
CER
|
AER
|
Difference
|
CER
|
AER
|
Difference
|
Group
|
27.8%
|
22.7%
|
5.1%pts
|
2.7%
|
0.2%
|
2.5%pts
|
Americas
|
16.7%
|
16.2%
|
0.5%pts
|
6.8%
|
6.2%
|
0.6%pts
|
EMEAA
|
76.1%
|
53.1%
|
23.0%pts
|
(0.1)%
|
(9.1)%
|
9.0%pts
|
G.
China
|
11.7%
|
6.0%
|
5.7%pts
|
(20.0)%
|
(18.0)%
|
(2.0)%pts
|
|
Q3 YTD 2022 vs 2021
|
Q3 YTD 2022 vs 2019
|
|
CER
|
AER
|
Difference
|
CER
|
AER
|
Difference
|
Group
|
40.9%
|
37.6%
|
3.3%pts
|
(5.7)%
|
(7.0)%
|
1.3%pts
|
Americas
|
33.0%
|
32.7%
|
0.3%pts
|
1.5%
|
1.0%
|
0.5%pts
|
EMEAA
|
108.7%
|
88.9%
|
19.8%pts
|
(13.2)%
|
(18.3)%
|
5.1%pts
|
G.
China
|
(13.9)%
|
(15.9)%
|
2.0%pts
|
(36.8)%
|
(34.8)%
|
(2.0)%pts
|
Appendix 3: Monthly
RevPARa (CER)
2022 vs 2021
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
Group
|
54.8%
|
72.3%
|
56.9%
|
50.1%
|
43.8%
|
39.2%
|
24.1%
|
30.0%
|
29.7%
|
Americas
|
53.7%
|
65.1%
|
55.7%
|
48.1%
|
37.6%
|
28.0%
|
13.7%
|
16.8%
|
20.2%
|
EMEAA
|
92.7%
|
122.7%
|
146.1%
|
165.1%
|
156.3%
|
126.0%
|
92.3%
|
62.1%
|
75.8%
|
G.
China
|
5.6%
|
36.9%
|
(39.8)%
|
(51.5)%
|
(45.6)%
|
(17.7)%
|
(10.0)%
|
76.1%
|
(6.5)%
|
2022 vs 2019
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
Group
|
(24.4)%
|
(18.1)%
|
(12.1)%
|
(7.9)%
|
(5.4)%
|
(0.6)%
|
3.5%
|
1.0%
|
3.5%
|
Americas
|
(14.2)%
|
(8.2)%
|
(2.6)%
|
2.9%
|
2.0%
|
5.5%
|
7.0%
|
4.2%
|
9.2%
|
EMEAA
|
(41.9)%
|
(36.6)%
|
(22.5)%
|
(17.2)%
|
(8.3)%
|
(6.0)%
|
0.6%
|
(0.4)%
|
(0.6)%
|
G.
China
|
(38.4)%
|
(31.7)%
|
(53.1)%
|
(58.6)%
|
(51.6)%
|
(35.5)%
|
(15.0)%
|
(17.9)%
|
(29.0)%
|
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)%
|
Appendix 4: System and pipeline summary of Q3 2022 YTD, YOY growths
and total closing positions (rooms)
|
System
|
Pipeline
|
|
Openings
|
Removals
|
Net
|
Total
|
YTD%
|
YOY%
|
Adjusted YOY%b
|
Signings
|
Total
|
Group
|
22,967
|
(15,147)
|
7,820
|
888,147
|
+0.9%
|
(0.1)%
|
+2.6%
|
43,950
|
278,189
|
Americas
|
7,107
|
(3,561)
|
3,546
|
502,635
|
+0.7%
|
(1.0)%
|
+0.8%
|
16,850
|
99,429
|
EMEAA
|
8,275
|
(9,951)
|
(1,676)
|
222,524
|
(0.7)%
|
(1.6)%
|
+3.6%
|
10,603
|
80,668
|
G.
China
|
7,585
|
(1,635)
|
5,950
|
162,988
|
+3.8%
|
+4.9%
|
+6.9%
|
16,497
|
98,092
|
b Adjusted
for: 1) the removal of Holiday Inn and Crowne Plaza rooms that
occurred in Q4 2021, driven by the review that was completed that
year with 34.3k (151 hotels) exiting IHG's system for these two
brands for the year as a whole, of which 17.6k (78 hotels) exited
in Q1-Q3 and 16.7k (73 hotels) exited in Q4 2021; 2) the removal of
6.5k rooms (28 hotels) in Russia in Q2 2022, following IHG's
announcements regarding ceasing all operations in that
country.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
|
InterContinental Hotels Group PLC
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(Registrant)
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|
|
|
|
By:
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/s/ C.
Lindsay
|
|
Name:
|
C.
LINDSAY
|
|
Title:
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ASSISTANT
COMPANY SECRETARY
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|
|
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Date:
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21 October 2022
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|
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