a9879g
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
November 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
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Strategic
alliance between IHG and Iberostar dated 21 November
2022
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Exhibit
No: 99.1
21 November 2022
IHG and Iberostar sign a strategic alliance for resort and
all-inclusive hotels
in the Caribbean, Americas, Southern Europe and North
Africa
InterContinental Hotels Group PLC (IHG or the Company) and
Iberostar Hotels & Resorts (Iberostar) announce today a
long-term commercial agreement for resort and all-inclusive hotels.
Iberostar is
a family-run business based in Palma de Mallorca, Spain, with more
than 65 years' experience in the hospitality industry, an excellent
reputation for operating resorts in outstanding locations, and a
strong commitment to quality and sustainability. Through this
strategic alliance, Iberostar will retain 100% ownership,
preserving its autonomy and values. Up to 70 hotels (24.3k rooms)
will be added to IHG's system under the Iberostar
Beachfront Resorts brand, which will become the
18th brand
for IHG. This will boost IHG's global system size by up to
3%. The
first properties set to join the IHG system this December will give
IHG guests increased choice in
sought-after locations including Mexico, the Dominican Republic,
Jamaica, Brazil and the Canary Islands (Spain). Further properties
in Spain and other popular resort destinations in Southern Europe
and North Africa are anticipated to join IHG's system over the
course of 2023 and 2024.
IHG guests will be able to look forward to memorable stays in
award-winning hotels*, ranging from family friendly premium
offerings to adult only luxury, in leading resort destinations,
including: Iberostar Grand Paraiso (Riviera Maya, Mexico);
Iberostar Selection Hacienda Dominicus (Bayahibe, Dominican
Republic); Iberostar Grand Rose Hall (Montego Bay, Jamaica); and
Iberostar Selection Anthelia (Tenerife, Spain). These add to IHG's
existing 260 resort properties that span brands including Six
Senses, Regent,
InterContinental, Kimpton, Hotel Indigo, Crowne Plaza, Holiday Inn
and Holiday Inn Club Vacations. IHG has fewer than 20 resort
properties in the countries where the Iberostar Beachfront Resorts
properties are located. The agreement therefore significantly
increases and broadens IHG's resort footprint.
The portfolio of Iberostar properties will
gain access to IHG's enterprise platform, including its
distribution channels and the IHG One Rewards loyalty programme
with more than 100 million members. IHG in turn will increase
awareness of its current brands with a new set of travellers, and
meet a clear desire from guests and loyalty members for more resort
destinations and the option of all-inclusive
stays.
In what is a large and high growth market segment, demand for
resort and all-inclusive stays has been buoyed by increasing
traveller desire for high quality experiences and stress-free
holidays, particularly post-Covid, and the ability to access such
stays as part of loyalty programme membership. The breadth of
resort choices for travellers has also increased in recent years,
with luxury and upper upscale destinations creating more wellbeing
and sustainability-led experiences that tailor to changing guest
expectations.
Iberostar and
IHG share many company values, including a passion for
sustainability and responsible tourism, with Iberostar's
pioneering Wave of
Change movement outlining
clear aims to move towards a circular economy, promote the
responsible consumption of seafood and improve coastal health. As
part of the agreement, IHG will work with Iberostar to
create opportunities for joint sustainability initiatives that
align with IHG's 2030 Journey to
Tomorrow responsible
business plan.
The Iberostar Beachfront Resorts brand will be included in a
new Exclusive
Partners category in IHG's
brand portfolio, which will sit alongside its Suites, Essentials,
Premium and Luxury & Lifestyle categories.
Keith Barr, Chief Executive Officer, IHG Hotels & Resorts,
said: "As
we continue to expand the footprint of our world-famous brands, we
are always looking at exciting, sustainable growth opportunities in
areas that can further enhance our offer for guests and owners.
Guests have told us of their wish for increased choice of resort
and all-inclusive destinations within our brand portfolio.
We are
delighted to address that by working with such a well-respected,
experienced and like-minded partner as Iberostar, and
to see more amazing hotels join our system that continues IHG's
growth in so many of the world's most attractive markets and
destinations. Iberostar has successfully developed a leading
presence in beachfront and all-inclusive properties in the
Caribbean, Americas, Southern Europe and North Africa over many
decades, and we are excited about the opportunities to further grow
the brand's footprint together. This agreement increases IHG's
system by up to 3%, which helps to deliver on our ambitions for
system growth. We continue to explore further opportunities for
growth with exclusive partners, demonstrating the strengths and
attractiveness of IHG's enterprise platform."
Sabina Fluxá, Vice-Chairman and Chief Executive
Officer, Iberostar
Group, commented: "With
this agreement, we set the path to continue the outstanding growth
that began 40 years ago with the creation of the Iberostar brand
and which has positioned us among the top resort brands in the
world. The alliance with IHG combines our strengths, represents a
decisive step forward in the distribution of Iberostar's beachfront
resorts, and reinforces our position as a benchmark in responsible
tourism. By working together we will grow our portfolio and we are
really looking forward to hosting IHG loyalty members in our
collection of premium and luxury beachfront resorts and
all-inclusive properties."
Miguel Fluxá, Chairman, Iberostar
Group, added: "This
strategic alliance will enable Iberostar Beachfront Resorts to
benefit from IHG's industry-leading technology, deep skills and
global scale. Retaining 100% ownership of Iberostar allows us to
continue to generate differentiation in the hospitality industry
with a long-term vision for our employees, clients, tour operators,
distribution partners and local communities that have been loyal to
us during all these years. We will continue to stay true to who we
are, preserving our philosophies and values of quality and
sustainability."
Further details on the agreement and financial
overview:
●
|
The
agreement gives IHG a licence to the Iberostar Beachfront Resorts
brand. The agreement has an initial term of 30 years and the option
to renew for additional terms of 20 years upon mutual
agreement.
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●
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The
agreement is
expected to add up to 24.3k rooms across 70 properties to IHG's
system over the next two years. Of these, 27 properties (8.2k
rooms) still require additional approvals from third parties in
order to join IHG. The total of up to 70 properties would be
equivalent to growth of 2.8% on IHG's global estate of 880.3k rooms
at the start of 2022. The first rooms are expected to come
into IHG's system in December this year, with these representing
approximately half of the total rooms subject to the overall
agreement.
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●
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The 70
properties are all beachfront resorts. They exclude Iberostar's
other operations, such as its smaller portfolio of urban hotels,
and also exclude Iberostar's interests in Cuba. The approximate
geographic split of revenues from the selected portfolio of 70
hotels in 2019 was: Mexico 22%; Dominican Republic 13%; Jamaica 8%;
Brazil 5%; Spain 40%; other EMEAA region locations
12%.
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●
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A
pipeline of six further Iberostar Beachfront Resorts properties,
representing ~3k rooms, is also expected to be added to IHG's
pipeline. This pipeline will increase as IHG and Iberostar work
together to grow the brand's footprint through the long-term
commercial agreement.
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●
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The
total gross revenue of the existing portfolio of 70 hotels was
approximately $1.3bn in 2019, equivalent to growth of over 4% on
IHG's $27.9bn of total gross revenue. Under the agreement, IHG will
receive marketing, distribution, technology and other fees in a
manner similar to its existing asset light model.
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●
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IHG's
fee structure will ramp-up over a period through to 2025 as the
hotels increasingly integrate onto IHG's platform. By 2027,
representing year five of the agreement, annual revenue recognised
within IHG's fee business is expected to be in excess of $40m, with
a broadly similar amount additionally recognised within System Fund
revenues.
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●
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Reflecting
integration investment, the net impact on IHG's operating profit
from reportable segments is expected to be modestly negative in
2022 and 2023. It is then expected to turn positive in 2024, before
ramping up significantly from 2025 with the final step up in the
fee structure and the expected shift in distribution channel
mix.
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--ENDS--
For further information, please contact:
IHG Investor
Relations:
Stuart Ford (+44 (0)7823 828 739); Aleksandar Milenkovic (+44
(0)7469 905 720); Joe Simpson (+44 (0)7976 862 072)
IHG Media Relations:
Amy Shields (+44 (0)7881 035 550); Alex O'Neil (+44 (0)7407 798
576)
Iberostar Media
Relations: Doris
Casares (+34 616 493 918); Concha Ramos (+34 679 143
999)
Notes:
* Recent awards include:
● "Best of the Best 2022"
by Tripadvisor UK (16 Iberostar hotels awarded)
● "Travellers'
Choice 2022" by Tripadvisor UK (42 Iberostar hotels
awarded)
● "Traveller
Review Awards 2022" by Booking.com (69 Iberostar hotels
awarded)
● "HolidayCheck
Special Award 2022" by HolidayCheck Germany (8 Iberostar hotels
awarded)
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
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Premium: voco
hotels, HUALUXE
Hotels & Resorts, Crowne
Plaza Hotels & Resorts, EVEN
Hotels
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Essentials: Holiday
Inn Hotels & Resorts, Holiday
Inn Express, avid
hotels
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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.
About Iberostar Hotels & Resorts:
Iberostar Group is a 100% family-owned Spanish multinational
company that boasts over 65 years' experience in the tourism
industry and business origins dating back to 1877. Its main line of
business is Iberostar Hotels & Resorts, which includes the
portfolio of up to 70 hotels in 15 countries under this agreement,
with a global team of more than 25,000 people of 95 nationalities.
The Group has become an international benchmark by promoting a
responsible tourism business model focused on caring for people and
the environment. The Wave of Change movement, a pioneering and
innovative initiative from Iberostar, reflects the company's
specific commitment to the environment and oceans, and its efforts
to promote these concerns to society as a whole. With
sustainability as the driving force and lever behind the business,
the company places the circular economy at the centre of its
strategy and is working on its own 2030 agenda to be waste-free by
2025, carbon-neutral by 2030, 100% responsible in its seafood
supply chain by 2025, and to improve the health of the ecosystems
that surround its hotels, among other goals. Iberostar was the
first hotel chain to remove single-plastic use amenities in all
their hotels worldwide back in 2020. The company is a leader in
quality and drives differentiation in the customer experience
through constant product innovation and commitment to
digitalization.
Iberostar Group is advisor to UNWTO, WTTC and World Economic Bank,
and has been recognized at international level supporting and
participating as speaker at Harvard University, Stanford
University, COP 25-26-27, OECD and FITUR amongst others. The
company has received several international awards including Eco
Trophea Germany (2022) and WTM Latin America Responsible Tourism
Award (2022), and has been recognized by several international
media amongst the Best International Resorts in Europe and The
Americas.
Cautionary note regarding forward-looking statements:
This announcement contains certain forward-looking statements as
defined under United States law (Section 21E of the Securities
Exchange Act of 1934) and otherwise. These forward-looking
statements can be identified by the fact that they do not relate
only to historical or current facts. Forward-looking statements
often use words such as 'anticipate', 'target', 'expect',
'estimate', 'intend', 'plan', 'goal', 'believe' or other words of
similar meaning. These statements are based on assumptions and
assessments made by InterContinental Hotels Group PLC's management
in light of their experience and their perception of historical
trends, current conditions, expected future developments and other
factors they believe to be appropriate. By their nature,
forward-looking statements are inherently predictive, speculative
and involve risk and uncertainty. There are a number of factors
that could cause actual results and developments to differ
materially from those expressed in or implied by, such
forward-looking statements. The main factors that could affect the
business and the financial results are described in the 'Risk
Factors' section in the current InterContinental Hotels Group PLC's
Annual report and Form 20-F filed with the United States Securities
and Exchange Commission.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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InterContinental Hotels Group PLC
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(Registrant)
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By:
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/s/ C.
Lindsay
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Name:
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C.
LINDSAY
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Title:
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ASSISTANT
COMPANY SECRETARY
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Date:
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21
November 2022
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