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99.1
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Final Results dated
21 February 2023
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Reported
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Underlying1
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2022
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2021
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% change
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% change
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REPORTABLE SEGMENTS1:
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Revenue1
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$1,843m
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$1,390m
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+33%
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+39%
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Revenue from fee
business1
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$1,449m
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$1,153m
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+26%
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+28%
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Operating
profit1
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$828m
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$534m
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+55%
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+53%
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Fee margin1
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56.2%
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49.6%
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+6.6%pts
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Adjusted
EPS1
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282.3¢
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147.0¢
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+92%
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KEY METRICS:
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GROUP RESULTS:
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● $25.8bn total gross revenue1
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Total revenue
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$3,892m
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$2,907m
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+34%
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+33%
vs 2021, (8)% vs 2019
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Operating profit
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$628m
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$494m
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+27%
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● +37%
global FY RevPAR1
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Basic EPS
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207.2¢
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145.4¢
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+43%
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vs
2021, (3.3)% vs 2019
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Total dividend per share
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138.4¢
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85.9¢
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+61%
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● +26%
global Q4 RevPAR1
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Net
debt1
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$1,851m
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$1,881m
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(2)%
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vs
2021, +4.1% vs 2019
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●
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Further significant improvement in trading: sequential improvement
each quarter in global RevPAR vs 2019
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Strongest recovery in Americas, with RevPAR +3.3% vs 2019 (Q4
+9.0%); EMEAA improving to (7.5)% (Q4 +8.8%); Greater China (38)%
(Q4 (42)%) due to the scale of travel restrictions that were still
in place
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●
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Average daily rate +18% vs 2021, +8% vs 2019; occupancy +9%pts vs
2021, (7)%pts vs 2019
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●
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Iberostar Beachfront Resorts agreement signed in November 2022,
with first 12.4k rooms added to IHG's system in December 2022;
continue to explore further opportunities with Exclusive Partners
to drive additional system growth
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Gross system growth +5.6% YOY; adjusted net system size growth of
+4.3% YOY
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Opened and added 49.4k rooms (269
hotels); global
estate now at 912k rooms (6,164 hotels)
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Signed 80.3k rooms (467 hotels); global pipeline now at 281k rooms
(1,859 hotels), +3.9% YOY
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Fee margin of 56.2%, +6.6%pts vs 2021 (+2.1%pts vs 2019's
54.1%)
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Operating profit from reportable segments of $828m, +55% vs 2021;
this was held back by $17m adverse currency impact and included $5m
of costs related to Iberostar agreement
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Reported operating profit of $628m, after $105m System Fund
reported loss and $95m net exceptional charges
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Net cash from operating activities of $646m (2021: $636m), with
adjusted free cash flow1 of
$565m (2021: $571m); net debt movement includes $482m share
buybacks, $233m dividends and a $230m net foreign exchange
benefit
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●
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Adjusted EBITDA1 of
$896m, +42% vs 2021; net debt:adjusted EBITDA ratio reduced to
2.1x
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Final dividend of 94.5¢ proposed, +10% vs 2021, resulting in a
total dividend for the year of 138.4¢
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●
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Share buyback programme to return an additional $750m of surplus
capital in 2023
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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
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All other locations:
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+44 203 936 2999
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Passcode:
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63 05 76
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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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92 39 56
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●
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The industry has previously demonstrated relative resiliency during
economic downturns, particularly in recurring essential business
travel and in chainscales such as upper midscale, which is where
IHG is weighted. Through the pandemic, a sustained level of demand
was shown, followed by a rapid recovery.
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While the economic outlook has some continued challenges and
uncertainties, current conditions, including employment, consumer
savings and business activity levels, remain supportive to the
industry.
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Consumer surveys have indicated travel to be among the most
resilient of discretionary spending areas, while business surveys
have indicated a continued return of travel activity and the
potential for greater hotel use to support hybrid and flexible
working arrangements.
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Historically, industry revenue has outpaced global economic growth
in 18 out of 23 years between 2000 and 2022, with a CAGR of +3.3%
(versus +2.8% CAGR for GDP). Prior to the pandemic, there had been
10 consecutive years of RevPAR outperforming global economic
growth.
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Reflecting the strength of demand recovery, Oxford Economics expect
global hotel room nights consumed to be back above 2019 levels by
2024 and growth at a CAGR of +6% from 2022 through to 2032. The US
market alone is forecast to increase from 2.1 billion to 2.8
billion room nights over this time period, and China to be even
faster at an +11% CAGR.
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●
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In the short term, Covid restrictions challenged the ability to
complete and open new build hotels, with this being an ongoing
issue in Greater China through 2022. Other markets have also seen
the temporary impact on the industry from costs and availability of
construction crews and materials, and the macro-economic outlook
affecting the availability and cost of real estate
financing.
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Longer-term, and in addition to the industry's RevPAR growth,
further new hotel supply will still be needed to satisfy the
demands of growing populations, rising middle classes and the
inherent desire to travel to physically interact and for new
experiences.
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Global hotel room net new supply growth has been at a CAGR of 2.0%
over the 10 years from 2012 to 2022, and was 1.2% in the US,
according to STR; their forecasts of the industry pipeline indicate
similar new supply growth rates into the future.
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Global leading hotel brands are expected to continue their
long-term trend of taking market share. In periods when developers
are adding less new supply, leading branded players can also
accelerate conversion opportunities.
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As Covid-related travel restrictions have lifted, demand has
swiftly recovered; IHG's group RevPAR exceeded 2019 levels each
month from July onwards; by Q4, group RevPAR was 4% ahead of 2019
levels, with the Americas and EMEAA both 9% ahead, offsetting
Greater China at (42)% due to restrictions still being in place in
that market.
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Leisure travel has seen the earliest pattern of recovery, followed
by the growing return of business and group travel.
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The US, our single largest country market, is amongst the most
recovered, and other geographic markets are expected to exhibit
similar drivers of recovery; by Q4, the revenue performance by
category in IHG's US estate was:
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○
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Leisure 16% ahead of 2019, reflecting 2% more room nights and rate
14% ahead;
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Business 5% ahead of 2019, reflecting 2% fewer room nights and rate
7% ahead; and
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○
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Groups 7% behind 2019, reflecting 13% fewer room nights and rate 7%
ahead.
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By Q4, IHG's group RevPAR of 4% ahead of 2019 levels reflected
occupancy (5)%pts behind and ADR up +13%; the Americas is the most
recovered region, with occupancy just (1.5)%pts below 2019 and ADR
+11.7% ahead.
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●
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Leisure bookings were generally strong throughout 2022; there have
been no clear signs of consumer price resistance or cooling of
leisure demand in the most recent months of trading, and industry
commentators are expecting a backdrop of still some pent-up desire
to resume travel for leisure purposes, as well as the benefit in
2023 of China travel restrictions lifting.
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The recovery in business demand is expected to continue, with
progress in the US indicating the potential elsewhere; our
corporate rate negotiations for 2023 are expected to support
further increases in ADR.
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Groups & Meetings are also expected to see continued recovery
in 2023.
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The overall industry has been experiencing both the opportunity and
the need for higher room rates, given the return of demand and
inflation pressures; sustainability of these is anticipated in
industry forecasts:
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○
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STR forecast US industry RevPAR to be 12% ahead of 2019 levels in
2023 and 25% ahead by 2025;
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○
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this assumes broadly flat ADR in real terms, with growth driven by
nominal ADR; and
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occupancy for the US industry is forecast by STR to be restored to
over 96% of 2019 levels in 2023, and to be fully recovered by
2025.
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Our industry has relatively limited forward visibility in most
parts of the demand mix due to typically short booking windows, and
shorter term reductions in demand could reoccur; however, the
industry is also characterised by an ability to rapidly adjust
prices according to the demand and inflationary environment, and by
long-term structural growth drivers in both demand and the need for
additional new hotel supply.
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Asset light, fee-based, predominantly franchised model, which has
high barriers to entry in an industry that provides long-term
structural growth characteristics in both demand (RevPAR) and new
supply (system growth); reflecting IHG's success in capturing
growth, ahead of the temporary disruption caused by Covid, in the
decade through to 2019 IHG delivered:
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○
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+3.9% average annual growth in RevPAR, and
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○
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+3.2% average annual growth in net system size.
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Chainscale and geographic diversification, with exposure to a mix
of resilient and high growth market segments.
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Well-invested portfolio that includes market leading brands, and an
enterprise platform through which our hotel owners leverage IHG's
scale, distribution channels, leading technology and loyalty
programmes.
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Existing system of over 6,000 hotels that will grow fee income
through long term, sustainable RevPAR expansion.
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Pipeline of over 1,800 further hotels that will deliver multi-year
growth in system size.
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Efficient cost base, with a proven track record of leveraging this
to increase margins whilst investing appropriately to support
future growth, and benefiting from a model where fee income is
largely linked to hotel revenues; over the decade through to 2019,
IHG has delivered:
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○
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~130bps average annual improvement in fee margin, and
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+11.4% CAGR in Adjusted EPS.
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Strong cash generation, from which to further invest in our brands
and enterprise platform to optimise growth, fund a sustainably
growing dividend and return excess funds to shareholders; since
2003, IHG has returned over $14bn in total to IHG's shareholders,
consisting of:
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○
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$2.6bn through ordinary dividends (representing a CAGR of +11.0%
through to 2019), and
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○
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$11.7bn via additional returns to shareholders.
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Global system of 912k rooms (6,164 hotels) at 31 December 2022,
weighted 68% across midscale segments and 32% across upscale and
luxury
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Gross growth +5.6% YOY; 49.4k rooms (269 hotels) opened, of which
12.4k (33 hotels) added through the Iberostar agreement; adjusted
gross growth, excluding Iberostar, of +4.2%
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Removal of 18.1k rooms (96 hotels); 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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Underlying removal rate -1.3% YOY, lower than the historical
average underlying rate of ~1.5%a;
fewer removals in Americas includes the effect of the 2021 Holiday
Inn and Crowne Plaza review
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Net system size growth +4.3%b YOY
on an adjusted basis for Russia; net growth +2.9% excluding
Iberostar
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Global pipeline of 281k rooms (1,859 hotels), representing 31% of
current system size; pipeline growth +3.9% YOY and broadly flat on
the 283k pipeline at the end of 2019
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Signed 80.3k rooms (467 hotels), +17% YOY; Q4 signings of 36.4k
rooms, or 17.9k excluding Iberostar
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●
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Signings mix drives pipeline to be weighted 54% across midscale
segments and 46% across upscale and luxury
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Conversions have continued to grow in importance, representing
around a quarter of signings and a third of openings in 2022
(excluding Iberostar)
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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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YOY%
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Adjusted YOY%b
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Signings
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Total
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Group
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49,443
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(18,143)
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31,300
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911,627
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+3.6%
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+4.3%
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80,338
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281,468
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Americas
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20,568
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(4,161)
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16,407
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515,496
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+3.3%
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+3.3%
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32,464
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100,319
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EMEAA
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16,211
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(10,747)
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5,464
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229,664
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+2.4%
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+5.5%
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25,847
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83,410
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G. China
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12,664
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(3,235)
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9,429
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166,467
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+6.0%
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+6.0%
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22,027
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97,739
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●
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Our InterContinental brand
opened six hotels, growing to 207 across more than 60 countries. A
pipeline of 90 hotels and resorts represents growth equivalent to
over 30% of current system size.
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Holiday Inn Express grew
to 3,091 hotels, with a presence in more than 50 countries. Despite
its already market-leading global scale, there is a pipeline for
over 20% further growth. Holiday Inn Express achieved 110 signings
in the year, while our established extended stay
brands Candlewood
Suites and Staybridge
Suites added over 70
more.
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Two-thirds of the Americas Holiday Inn estate and three-quarters of
the Crowne Plaza estate will have been updated by 2025 as a result
of the review and our ongoing progress. Contributing to this, a
further 20 Crowne Plaza and 50 Holiday Inn properties are expected
to have renovations completed in 2023. Recently renovated hotels
for both brands are showing strong performance metrics across
occupancy, room rate, revenue market share and guest satisfaction
scores.
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Both brands have pipelines equivalent to 20% or more of their
current system size and to drive performance and growth we continue
to evolve key elements such as designs of the latest hotel formats
and food & beverage services, including Holiday Inn's new
premium breakfast buffet and streamlined all-day dining
menus.
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Our upscale conversion brand voco recently achieved the milestone of 100 open
and pipeline hotels. As momentum builds, there were 14 hotels
opened and 23 signings for the brand in the year. Achieving top
guest satisfaction scores versus equivalent competing brands, there
are already voco properties open in 18 countries and the pipeline
will add a further 14, including the first in India, Thailand,
Japan and Indonesia. In 2022 the brand was recognised as the
World's Leading Premium Hotel Brand at the World Travel
Awards.
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●
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Vignette Collection, our Luxury
& Lifestyle conversion brand which launched in August 2021, had
secured its first 17 properties by the end of 2022, running
ahead of our expectations. The first two Vignette properties in the
Americas region were signed in the second half of the year, while
in early 2023 the first signings in China, Japan and Germany were
achieved, which will lead to the brand's initial presence in more
than a dozen countries.
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Our Regent brand saw its flagship Regent Hong Kong
reopen towards the end of the year and another key opening was an
all-suites-and-villas property in Phu Quoc (Vietnam). Two further
signings in Shanghai and Shenzhen Bay take the combined open and
pipeline to 19 hotels, up from nine at acquisition in 2018. In
2023, the Carlton Cannes, one of the world's most iconic hotels,
will reopen as a Regent after a two-year redevelopment, becoming a
flagship property within a new generation of Regent hotels and
reflecting our ambition to grow the brand across
Europe.
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Kimpton continued
to grow both in the US and internationally, with four openings
including Australia's first for the brand in Sydney and a second in
Greater China. A strong year of 10 signings increased the pipeline
to 41 properties, representing growth of more than 50% on the 76
hotels already open for the brand.
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Six Senses marked
an excellent year with eight signings, taking its pipeline to 38
properties, which would triple today's existing system. Building on
a strong presence across EMEAA, the brand's pipeline now includes
six hotels in the Americas and four in China.
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●
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Hotel Indigo achieved
18 openings in the year to reach 143 properties across more than 20
countries. Signings continued to be very strong too, with 30 in the
year taking the pipeline to 20k rooms, which would double the
existing system size.
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The first two Atwell
Suites properties opened
in the year - a prototype new-build at Denver Airport and an
adaptive re-use at Miami Brickell, while 11 more signings for this
new extended stay brand grew the pipeline to 30
properties.
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In Q1 2023 we will have reached 60 open properties for
our avid hotels brand, which recently had a first opening in
Canada to add to those in the US and Mexico. There are more than
140 properties in the pipeline, as we continue to develop avid
hotels to be our next brand of scale. Open hotels are showing guest
satisfaction and revenue share ahead of competing brands. Eight
avid properties have also now sold, which also helps to demonstrate
the strong return on investment that owners can achieve from the
brand.
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●
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Announced in November 2022, the long-term commercial agreement with
Iberostar Hotels & Resorts for resort and all-inclusive hotels
added Iberostar Beachfront Resorts as an 18th brand
to IHG's portfolio and brings up to 70 hotels (24.3k rooms) into
our system, of which 33 (12.4k rooms) of these were added to IHG's
system by the end of the year. There are 27 of the 70 hotels that
require additional approvals from third parties in order to join
IHG.
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The agreement significantly increases and broadens IHG's resort
footprint, providing guests with an increased choice of
destinations. Iberostar is positioned among the top resort brands
in the world, successfully developing a leading presence in
beachfront and all-inclusive properties in the Caribbean, Americas,
Southern Europe and North America over many decades.
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●
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The Iberostar properties gain access to IHG's enterprise platform,
including to our distribution channels and to
IHG One Rewards, which can drive large volumes of demand
to hotels from the more than 115 million members of the loyalty
programme.
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●
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Under this new type of agreement for Exclusive Partners to leverage
the scale and strengths of our platform, IHG receives marketing,
distribution, technology and other fees in a manner similar to our
existing asset light model. For the initial up to 70 hotels, by
2027, 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. Fees per key
are expected to exceed IHG's prior average by more than
10%.
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●
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In 2022, there were $5m of costs incurred by IHG in relation to the
initial stages of the agreement. In 2023, IHG is investing in
further integration costs, the net impact of which on operating
profit from reportable segments is expected to be $10-15m. The
Iberostar agreement is then expected to turn to a positive
contribution 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 that IHG is expected to deliver for the
Iberostar hotels.
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●
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IHG's pipeline also includes five Iberostar Beachfront Resorts
properties that are expected to be built and opened in future
years. This pipeline, along with IHG's fee income, will further
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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Global loyalty contribution had already returned to 2019 levels by
the end of 2022, with a significant increase in contribution in the
months following launch, which also saw a step up in member Guest
Love scores.
|
●
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Enrolments in 2022 were up 27% year-on-year and 12.2 million more
loyalty members have been added.
|
●
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11% more points were redeemed in 2022 compared to 2019, with a 16%
increase in reward nights booked.
|
●
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Engagement with Milestone Rewards has exceeded our expectations,
with over one million rewards chosen.
|
●
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Relaunched US co-brand credit cards with new benefits have driven a
60% increase in new accounts and a 17% lift in spend
year-on-year.
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●
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The launch of our largest marketing campaign in more than a decade,
Guest How You Guest, has lifted awareness and brand favourability
measures and helped drive more revenue to our hotels for our
owners.
|
●
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In 2022, IHG One Rewards won awards including Best Hotel Loyalty
Enhancement from The Points Guy and Best Hotel Rewards Program from
Global Traveler.
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●
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We have further expanded the scale and reach of our procurement
solutions for operating supplies and equipment. Around 4,100 hotels
in the Americas region now participate in our F&B purchasing
programme, with nearly 20% growth in the number of hotels joining
in the US alone. These programmes support menu optimisation, help
owners mitigate inflationary pressures and achieve absolute
savings. Hotels in Latin America that recently joined IHG's buying
programme saw savings of up to 13%, whilst in the UK, smaller owner
groups onboarded in 2022 saw 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 to lower construction and refurbishment
costs. For example, our first Hotel Procurement Service pilots that
have now expanded to Japan, Australasia and the Pacific have
demonstrated savings of 11-35% on various goods and services for
owners during their hotel build and opening phases.
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●
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In Greater China, we have connected owners to specialist financiers
for them to provide a Supply Chain Financing programme that offers
deferred payment plans at competitive interest rates for owners'
purchases of hotel building materials.
|
●
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In our latest formats, the construction costs per key for
Candlewood Suites, Staybridge Suites and Atwell Suites have reduced
by 3-5% through further Furniture, Fixtures & Equipment
savings.
|
●
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During 2022 we unveiled the latest evolution of our upscale EVEN
Hotels brand through an updated design, refreshed restaurant and
integrated wellness experience. Developed in collaboration with
franchisees, this format will be more efficient to build and
operate, supporting the brand's future growth in more
markets.
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●
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To mitigate energy cost increases, in the US we assist owners to
make their properties more energy efficient and secure related tax
deductions. We have also launched a community solar offering
initially for hotels in the US state of Maryland, whilst in the UK
and Germany all our managed hotels are now supplied through green
energy tariffs. We continue to develop further programmes to use
IHG's combined scale to help owner groups access low carbon
projects and lower-cost energy.
|
●
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The rollout of our next-generation payments system, FreedomPay, is
expected to be complete in all US and Canada hotels by the end
2023, adding more guest payment options and lowering costs for
owners.
|
●
|
Next generation IHG mobile app. Mobile
is our fastest-growing revenue channel. Amongst many enhancements,
our new app launched in 2022 offers streamlined booking and allows
guests to check-in faster. It also powers IHG One Rewards by
providing members with seamless access to their loyalty benefits,
including the ability to choose and redeem Milestone Rewards and
showcase loyalty benefits pre-stay. Other improvements include
filtering by room attributes, enriched maps functionality, and in
Q4 alone a further 60+ enhancements were made to the booking
process. The improvements to the app are supporting further
increases in direct bookings, loyalty engagement and incremental
spend during stays. Since its launch, reservation flow conversion
rate is up two percentage points versus 2019, revenue driven by our
mobile app for the Americas and EMEAA regions has been at 30%
higher levels than 2019, and a further shift in preference for
mobile device usage has seen it now account for 58% of all digital
bookings.
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●
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Improved booking experience. 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 up to 3%. This new web
experience has also driven a ~30% increase in web enrolments to our
IHG One Rewards programme.
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●
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New websites for individual brands. Rolling
out new sites for our InterContinental and Hotel Indigo brands has
followed the success of those for Kimpton, Holiday Inn and Holiday
Inn Express. New templates are elevating the brands and providing
guests with significantly enhanced content and
functionality.
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●
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Stay enhancements and attribute pricing. We
have progressed with testing across more brands how we best drive
the cross-sell of non-room extras and the up-sell of rooms, which
enable owners to generate maximum value from the unique attributes
of their inventory. Leveraging the GRS capabilities, our pilots are
presenting upsells of room types and rooms views, for example, and
we will be scaling these across more of the estate in
2023.
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●
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Digitising more areas of customer experience. As
part of a wide range of investments to enhance the customer contact
experience whilst driving greater cost efficiency and effectiveness
for our owners, we achieved 20% of customer contacts going through
digital channels by the end of 2022, compared to just 4% at the
start. Growth in AI capabilities has also increased end-to-end
self-service from 12% to 17%.
|
●
|
Overall employee engagement increased to 86% (+1% on 2021), placing
IHG as a Global Best Employer by Kincentric.
|
●
|
We continue to make progress on our commitment to increase ethnic
minority leadership representation at a corporate level, aiming to
increase this in the US from 20% in 2022 to 26% by 2025 and in the
UK from 6% in 2022 to 20% by 2027.
|
●
|
Reflecting a focus on gender balance among our leaders, the
proportion of female corporate leaders increased to 34% and IHG is
one of the few large global businesses to have a gender-balanced
all-employee population (58% female).
|
●
|
We celebrated more colleagues graduating from our RISE programme,
which aims to increase the number of women in General Manager and
other senior positions in our managed hotels.
|
●
|
We have launched enhanced core HR and learning and development
platforms, alongside tools and resources around
wellbeing.
|
●
|
Our free virtual learning platform, the IHG Skills Academy, was
translated into eight additional languages in 2022 to broaden the
global reach of the IHG Academy programme, which has now trained
more than 98,000 people.
|
●
|
Further programmes were set up to help students historically
impacted by discrimination, poverty and other work barriers,
including with Historically Black Colleges and Universities (HBCUs)
in the US.
|
●
|
As we seek to advance human rights through our business activities,
we launched minimum core requirements for responsible labour
practices for all IHG managed, owned and leased hotels globally,
which further supports the implementation of IHG's Human Rights
Policy at hotel level.
|
●
|
We have implemented new responsible procurement digital tools and
solutions, with more than 18,000 e-learning training sessions
delivered to colleagues; supporting both our people and communities
focus, we introduced our Supplier Diversity programme, EPIC
(Engaging Partnerships through Inclusion and Collaboration), whilst
through leveraging further partnerships we have gained exposure to
additional diverse business entities and doubled our qualified
diverse spending in the US on the prior year.
|
●
|
IHG supported 10 relief efforts around the globe during the year,
working closely with our long-term partners such as CARE
International and the International Federation of Red Cross and Red
Crescent Societies (IFRC).
|
●
|
In response to the war in Ukraine and the humanitarian crisis it
has caused, IHG made significant donations to some of our charity
partners and worked with our hotel owners in other countries to
shelter and recruit refugees. We have also teamed up with Tent
Partnership to provide refugees in the US with skills and
jobs.
|
●
|
A 3.4% absolute reduction in GHG emissions as defined above, or a
5.8% decrease on an occupied room basis compared to our 2019
baseline levels, achieved in a year when our hotels were also
highly focused on recovering from the pandemic and restoring
growth.
|
●
|
The rollout of our Hotel Energy Reduction Opportunities (HERO) tool
and training, which gives owners bespoke sustainability
recommendations, costs and savings based upon their hotel's
individual data and characteristics.
|
●
|
We continue to roll-out centralised 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. At no additional cost to hotels, this data is also
helping them to answer requests for proposals when they bid for
corporate contracts.
|
●
|
New hotel energy metrics and brand standards as part of our
strategy to decarbonise the existing estate, with targets tailored
for every hotel by region, brand and climate zone. Mandated
requirements have initially focused on those that provide the most
impact for the lowest cost, with paybacks of less than five years
for hotel owners.
|
●
|
Our latest design work for Holiday Inn Express in the US draws upon
our analysis to develop new-build hotels that operate at very low
or zero-carbon. The guide sets out the measures needed, cost
impacts and returns on investment for hotel owners compared to
current builds.
|
●
|
To tackle waste, we secured a bulk bathroom amenities global
collaboration to replace bathroom miniatures for more than 4,000
hotels, saving at least 850 tonnes of plastic annually in the
Americas region alone and providing hotels with savings of 10-30%
versus previous costs.
|
●
|
Our global food waste e-learning modules launched in 13 languages,
based around the UN's "prevent, donate, divert" plan, whilst our
work with food waste specialist Winnow to install assessment
technology at 20 hotels in the Middle East is delivering an average
reduction of 68% in the cost of food waste.
|
●
|
A baseline dataset on water risks for all hotels has been
completed, which will inform our future strategy and reporting as
we adopt the Sustainability Accounting Standards Board (SASB)
framework. Our global risk mapping on biodiversity was also
finalised in the year to establish the baseline dataset for this
critical area.
|
●
|
Among our strong ratings across ESG indices, surveys and reports,
we are proud to have been listed in the S&P Dow Jones
Sustainability World Index and Europe Index for the sixth
consecutive year, to receive a AA rating from MSCI, to be ranked
'best-in-class' in the ISS Environmental Quality Score and Social
Quality Score, and in the Workforce Disclosure Initiative (WDI) to
have increased our score to 81% in 2022 which strongly outperformed
the sector average of 66%.
|
|
12 months ended 31 December
|
|||
|
|
|
|
|
|
2022
|
2021
|
%
|
|
|
$m
|
$m
|
change
|
|
Revenue
|
|
|
|
|
Americas
|
1,005
|
774
|
29.8
|
|
EMEAA
|
552
|
303
|
82.2
|
|
Greater China
|
87
|
116
|
(25.0)
|
|
Central
|
199
|
197
|
1.0
|
|
|
_____
|
_____
|
_____
|
|
Revenue from reportable segmentsa
|
1,843
|
1,390
|
32.6
|
|
|
|
|
|
|
System Fund revenues
|
1,217
|
928
|
31.1
|
|
Reimbursement of costs
|
832
|
589
|
41.3
|
|
|
_____
|
_____
|
_____
|
|
Total revenue
|
3,892
|
2,907
|
33.9
|
|
|
_____
|
_____
|
_____
|
|
Operating profit/(loss)
|
|
|
|
|
Americas
|
761
|
559
|
36.1
|
|
EMEAA
|
152
|
5
|
NMb
|
|
Greater China
|
23
|
58
|
(60.3)
|
|
Central
|
(108)
|
(88)
|
22.7
|
|
|
_____
|
_____
|
_____
|
|
Operating profit from reportable segmentsa
|
828
|
534
|
55.1
|
|
Analysed as:
|
|
|
|
|
Fee Business excluding Central
|
917
|
658
|
39.4
|
|
Owned, leased and managed lease
|
19
|
(36)
|
NMb
|
|
Central
|
(108)
|
(88)
|
22.7
|
|
|
|
|
|
|
System Fund result
|
(105)
|
(11)
|
854.5
|
|
|
____
|
____
|
____
|
|
Operating profit before exceptional items
|
723
|
523
|
38.2
|
|
Operating exceptional items
|
(95)
|
(29)
|
227.6
|
|
|
____
|
____
|
____
|
|
Operating profit
|
628
|
494
|
27.1
|
|
|
|
|
|
|
Net financial expenses
|
(96)
|
(139)
|
(30.9)
|
|
Analysed as:
|
|
|
|
|
Adjusted interest expensea
|
(122)
|
(142)
|
(14.1)
|
|
System Fund interest
|
16
|
3
|
433.3
|
|
Foreign exchange gains
|
10
|
-
|
-
|
|
|
|
|
|
|
Fair value gains on contingent purchase consideration
|
8
|
6
|
33.3
|
|
|
____
|
____
|
____
|
|
Profit before tax
|
540
|
361
|
49.6
|
|
|
|
|
|
|
Tax
|
(164)
|
(96)
|
70.8
|
|
Analysed as;
|
|
|
|
|
Tax before exceptional items, foreign
exchange gains and System Funda
Tax on foreign exchange gains
|
(194)
4
|
(125)
-
|
55.2
-
|
|
Tax on exceptional items and exceptional tax
|
26
|
29
|
(10.3)
|
|
|
____
|
____
|
____
|
|
Profit for the year
|
376
|
265
|
41.9
|
|
|
|
|
|
|
Adjusted earningsc
|
511
|
269
|
90.0
|
|
|
|
|
|
|
Basic weighted average number of ordinary shares
(millions)
|
181
|
183
|
(1.1)
|
|
|
____
|
____
|
____
|
|
Earnings per ordinary share
|
|
|
|
|
|
Basic
|
207.2¢
|
145.4¢
|
42.5
|
|
Adjusteda
|
282.3¢
|
147.0¢
|
92.1
|
|
|
|
|
|
Dividend per share
|
138.4¢
|
85.9¢
|
61.1
|
|
|
|
|
|
|
Average US dollar to sterling exchange rate
|
$1: £0.81
|
$1: £0.73
|
11.0
|
|
|
|
|
|
●
|
the costs and impairment charges of ceasing operations in Russia
($17m);
|
●
|
commercial litigation and disputes ($28m);
|
●
|
impairment reversals ($22m) reflecting improved trading conditions
in both the Americas and EMEAA regions;
|
●
|
impairment charges ($12m) relating to one hotel in the EMEAA
region;
|
●
|
shares of losses from the Barclay associate ($60m) arising from an
allocation of expenses in excess of the Group's percentage
share.
|
Adjusted EBITDAb reconciliation
|
12 months ended 31 December
|
|
|
2022
|
2021
|
|
$m
|
$m
Re-presenteda
|
|
|
|
Cash flow from operations
|
961
|
848
|
Cash flows relating to exceptional items
|
43
|
12
|
Impairment loss on financial assets
|
(5)
|
-
|
Other non-cash adjustments to operating profit/loss
|
(61)
|
(71)
|
System Fund result
|
105
|
11
|
System Fund depreciation and amortisation
|
(86)
|
(94)
|
Other non-cash adjustments to System Fund result
|
(24)
|
(6)
|
Working capital and other adjustments
|
(101)
|
(110)
|
Capital expenditure: contract acquisition costs (key money), net of
repayments
|
64
|
42
|
|
____
|
________
|
Adjusted EBITDAb
|
896
|
632
|
|
____
|
____
|
CASH FLOW SUMMARY
|
12 months ended 31 December
|
||
|
|
||
|
2022
|
2021
|
$m
|
|
$m
|
$m
|
change
|
|
|
|
|
Adjusted EBITDAb
|
896
|
632
|
264
|
|
|
|
|
Working capital and other adjustments
|
101
|
110
|
|
Impairment loss on financial assets
|
5
|
-
|
|
Other non-cash adjustments to operating profit
|
61
|
71
|
|
System Fund result
|
(105)
|
(11)
|
|
Non-cash adjustments to System Fund result
|
110
|
100
|
|
Capital expenditure: contract acquisition costs (key money) net of
repayments
|
(64)
|
(42)
|
|
Capital expenditure: maintenance
|
(44)
|
(33)
|
|
Cash flows relating to exceptional items
|
(43)
|
(12)
|
|
Net interest paid
|
(104)
|
(126)
|
|
Tax paid
|
(211)
|
(86)
|
|
Principal element of lease payments
|
(36)
|
(32)
|
|
Purchase of own shares by employee share trusts
|
(1)
|
-
|
|
|
____
|
____
|
____
|
Adjusted free cash
flowb
|
565
|
571
|
(6)
|
|
|
|
|
Capital expenditure: gross recyclable investments
|
(15)
|
(5)
|
|
Capital expenditure: gross System Fund capital
investments
|
(35)
|
(19)
|
|
Deferred purchase consideration paid
|
-
|
(13)
|
|
Disposals and repayments, including other financial
assets
|
16
|
58
|
|
Repurchase of shares, including transaction costs
|
(482)
|
-
|
|
Dividends paid to shareholders
|
(233)
|
-
|
|
|
____
|
____
|
____
|
Net cash flow before other net debt movements
|
(184)
|
592
|
(776)
|
|
|
|
|
Add back principal element of lease repayments
|
36
|
32
|
|
Exchange and other non-cash adjustments
|
178
|
24
|
|
|
____
|
____
|
____
|
Decrease in net
debtb
|
30
|
648
|
(618)
|
Net debt at beginning of the year
|
(1,881)
|
(2,529)
|
|
Net debt at end of the year
|
(1,851)
|
(1,881)
|
30
|
|
______
|
______
|
____
|
|
2022
|
2021
|
|
$m
|
$m
|
Goodwill and other intangible assets
|
1,144
|
1,195
|
Other non-current assets
|
1,394
|
1,455
|
Cash and cash equivalents
|
976
|
1,450
|
Other current assets
|
702
|
616
|
Total assets
|
4,216
|
4,716
|
Loans and other borrowings
|
(2,396)
|
(2,845)
|
Other current liabilities
|
(1,489)
|
(1,332)
|
Other non-current liabilities
|
(1,939)
|
(2,013)
|
Total liabilities
|
(5,824)
|
(6,190)
|
Net liabilities
|
(1,608)
|
(1,474)
|
|
12 months ended 31 December
|
|
|||||||
|
|
|
|
|
|
|
|||
|
2022
|
|
2021
|
|
%
|
|
|||
|
$bn
|
|
$bn
|
|
changea
|
|
|||
Analysed by brand
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
InterContinental
|
4.0
|
|
2.7
|
|
50.8
|
||||
Kimpton
|
1.2
|
|
0.7
|
|
62.6
|
||||
Hotel Indigo
|
0.7
|
|
0.4
|
|
56.3
|
||||
HUALUXE
|
0.1
|
|
0.1
|
|
2.3
|
||||
Crowne Plaza
|
3.0
|
|
2.3
|
|
28.3
|
||||
EVEN Hotels
|
0.1
|
|
0.1
|
|
65.2
|
||||
Holiday Inn
|
5.2
|
|
4.0
|
|
29.5
|
||||
Holiday Inn Express
|
8.3
|
|
6.5
|
|
26.0
|
||||
Staybridge Suites
|
1.2
|
|
1.0
|
|
22.0
|
||||
Candlewood Suites
|
0.8
|
|
0.7
|
|
12.9
|
||||
Other
|
1.2
|
|
0.9
|
|
57.9
|
||||
|
____
|
|
____
|
|
____
|
|
|||
Total
|
25.8
|
|
19.4
|
|
33.1
|
|
|||
|
____
|
|
____
|
|
____
|
|
|||
|
|
|
|
|
|
|
|||
Analysed by ownership type
|
|
|
|
|
|
|
|||
Fee business (revenue not attributable to IHG)
|
25.4
|
|
19.2
|
|
32.7
|
|
|||
Owned, leased and managed lease (revenue recognised in Group income
statement)
|
0.4
|
|
0.2
|
|
64.9
|
|
|||
|
____
|
|
____
|
|
____
|
|
|||
Total
|
25.8
|
|
19.4
|
|
33.1
|
|
|||
|
____
|
|
____
|
|
____
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
Full Year 2022 vs 2021
|
Full Year 2022 vs 2019
|
||||
|
RevPAR
|
ADR
|
Occupancy
|
RevPAR
|
ADR
|
Occupancy
|
Group
|
36.6%
|
17.8%
|
8.5%pts
|
(3.3)%
|
8.2%
|
(7.4)%pts
|
Americas
|
28.5%
|
14.8%
|
7.0%pts
|
3.3%
|
8.8%
|
(3.5)%pts
|
EMEAA
|
93.2%
|
28.2%
|
21.2%pts
|
(7.5)%
|
8.7%
|
(11.1)%pts
|
G. China
|
(13.5)%
|
(2.5)%
|
(5.5)%pts
|
(38.1)%
|
(12.8)%
|
(18.0)%pts
|
|
Q4 2022 vs 2021
|
Q4 2022 vs 2019
|
||||
|
RevPAR
|
ADR
|
Occupancy
|
RevPAR
|
ADR
|
Occupancy
|
Group
|
25.6%
|
14.1%
|
5.7%pts
|
4.1%
|
12.7%
|
(5.1)%pts
|
Americas
|
16.6%
|
10.4%
|
3.4%pts
|
9.0%
|
11.7%
|
(1.5)%pts
|
EMEAA
|
64.9%
|
24.4%
|
17.1%pts
|
8.8%
|
16.7%
|
(5.1)%pts
|
G. China
|
(12.6)%
|
(6.0)%
|
(3.3)%pts
|
(42.1)%
|
(14.3)%
|
(21.0)%pts
|
|
Full Year 2022 vs 2021
|
Full Year 2022 vs 2019
|
||||
|
CER
|
AER
|
Difference
|
CER
|
AER
|
Difference
|
Group
|
36.6%
|
32.7%
|
3.9%pts
|
(3.3)%
|
(5.1)%
|
1.8%pts
|
Americas
|
28.5%
|
28.2%
|
0.3%pts
|
3.3%
|
2.8%
|
0.5%pts
|
EMEAA
|
93.2%
|
74.5%
|
18.7%pts
|
(7.5)%
|
(14.1)%
|
6.6%pts
|
G. China
|
(13.5)%
|
(17.1)%
|
3.6%pts
|
(38.1)%
|
(36.7)%
|
(1.4)%pts
|
|
Q4 2022 vs 2021
|
Q4 2022 vs 2019
|
||||
|
CER
|
AER
|
Difference
|
CER
|
AER
|
Difference
|
Group
|
25.6%
|
20.5%
|
5.1%pts
|
4.1%
|
0.8%
|
3.3%pts
|
Americas
|
16.6%
|
16.1%
|
0.5%pts
|
9.0%
|
8.2%
|
0.8%pts
|
EMEAA
|
64.9%
|
47.2%
|
17.7%pts
|
8.8%
|
(1.9)%
|
10.7%pts
|
G. China
|
(12.6)%
|
(21.0)%
|
8.4%pts
|
(42.1)%
|
(42.6)%
|
0.5%pts
|
2022 vs 2021
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
Oct
|
Nov
|
Dec
|
Group
|
54.8%
|
72.3%
|
56.9%
|
50.1%
|
43.8%
|
39.2%
|
24.1%
|
30.0%
|
29.7%
|
26.2%
|
27.4%
|
22.9%
|
Americas
|
53.7%
|
65.1%
|
55.7%
|
48.1%
|
37.6%
|
28.0%
|
13.7%
|
16.8%
|
20.2%
|
21.0%
|
16.1%
|
11.4%
|
EMEAA
|
92.7%
|
122.7%
|
146.1%
|
165.1%
|
156.3%
|
126.0%
|
92.3%
|
62.1%
|
75.8%
|
66.3%
|
61.4%
|
66.9%
|
G. China
|
5.6%
|
36.9%
|
(39.8)%
|
(51.5)%
|
(45.6)%
|
(17.7)%
|
(10.0)%
|
76.1%
|
(6.5)%
|
(28.4)%
|
14.3%
|
(14.4)%
|
2022 vs 2019
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
Oct
|
Nov
|
Dec
|
Group
|
(24.4)%
|
(18.1)%
|
(12.1)%
|
(7.9)%
|
(5.4)%
|
(0.6)%
|
3.5%
|
1.0%
|
3.5%
|
2.3%
|
3.1%
|
7.7%
|
Americas
|
(14.2)%
|
(8.2)%
|
(2.6)%
|
2.9%
|
2.0%
|
5.5%
|
7.0%
|
4.2%
|
9.2%
|
8.3%
|
7.5%
|
11.8%
|
EMEAA
|
(41.9)%
|
(36.6)%
|
(22.5)%
|
(17.2)%
|
(8.3)%
|
(6.0)%
|
0.6%
|
(0.4)%
|
(0.6)%
|
4.1%
|
7.7%
|
15.5%
|
G. China
|
(38.4)%
|
(31.7)%
|
(53.1)%
|
(58.6)%
|
(51.6)%
|
(35.5)%
|
(15.0)%
|
(17.9)%
|
(29.0)%
|
(46.4)%
|
(39.8)%
|
(39.6)%
|
2021 vs 2019
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
Oct
|
Nov
|
Dec
|
Group
|
(52.5)%
|
(53.8)%
|
(46.6)%
|
(41.4)%
|
(37.1)%
|
(31.0)%
|
(18.4)%
|
(23.0)%
|
(21.5)%
|
(19.2)%
|
(19.1)%
|
(12.1)%
|
Americas
|
(45.1)%
|
(45.4)%
|
(39.4)%
|
(32.3)%
|
(27.8)%
|
(19.7)%
|
(7.3)%
|
(12.1)%
|
(10.6)%
|
(10.5)%
|
(7.4)%
|
0.4%
|
EMEAA
|
(71.1)%
|
(72.7)%
|
(70.6)%
|
(70.1)%
|
(65.8)%
|
(59.4)%
|
(48.2)%
|
(38.2)%
|
(42.8)%
|
(36.3)%
|
(33.2)%
|
(30.2)%
|
G. China
|
(41.5)%
|
(51.1)%
|
(23.2)%
|
(14.9)%
|
(12.0)%
|
(21.5)%
|
(6.4)%
|
(55.2)%
|
(25.9)%
|
(24.6)%
|
(46.3)%
|
(28.1)%
|
2020 vs 2019
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
Oct
|
Nov
|
Dec
|
Group
|
(1.5)%
|
(10.8)%
|
(55.1)%
|
(81.9)%
|
(75.6)%
|
(67.4)%
|
(58.1)%
|
(51.0)%
|
(50.9)%
|
(51.9)%
|
(55.3)%
|
(52.4)%
|
Americas
|
0.2%
|
(0.9)%
|
(49.0)%
|
(80.1)%
|
(72.5)%
|
(62.0)%
|
(54.0)%
|
(48.6)%
|
(46.4)%
|
(48.0)%
|
(51.4)%
|
(49.5)%
|
EMEAA
|
2.1%
|
(11.3)%
|
(62.7)%
|
(89.3)%
|
(88.5)%
|
(85.3)%
|
(74.7)%
|
(66.3)%
|
(69.9)%
|
(70.5)%
|
(72.4)%
|
(68.6)%
|
G. China
|
(24.6)%
|
(89.3)%
|
(81.4)%
|
(71.2)%
|
(57.1)%
|
(48.6)%
|
(35.9)%
|
(20.2)%
|
(11.0)%
|
(16.9)%
|
(22.5)%
|
(15.1)%
|
Global hotel and room count
|
Hotels
|
|
Rooms
|
|||
|
||||||
|
|
Change over
|
|
|
Change over
|
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
|
Six Senses
|
19
|
(2)
|
|
1,366
|
(46)
|
Regent
|
9
|
2
|
|
3,028
|
838
|
|
|
InterContinental
|
207
|
3
|
|
69,806
|
404
|
|
Vignette Collection
|
3
|
2
|
|
579
|
433
|
|
Kimpton
|
76
|
1
|
|
13,308
|
25
|
|
Hotel Indigo
|
143
|
13
|
|
18,454
|
2,111
|
|
voco
|
45
|
14
|
|
10,424
|
2,979
|
|
HUALUXE
|
21
|
5
|
|
5,983
|
1,380
|
|
Crowne Plaza
|
403
|
(1)
|
|
110,419
|
(759)
|
|
EVEN Hotels
|
22
|
1
|
|
3,180
|
186
|
|
Holiday Inna
|
1,226
|
8
|
|
224,381
|
(303)
|
|
Holiday Inn Express
|
3,091
|
75
|
|
326,902
|
9,573
|
avid hotels
|
59
|
11
|
|
5,353
|
1,073
|
|
|
Atwell Suites
|
2
|
2
|
|
186
|
186
|
|
Staybridge Suites
|
314
|
(1)
|
|
33,961
|
(345)
|
|
Candlewood Suites
|
368
|
7
|
|
32,753
|
728
|
|
Iberostar Beachfront Resortsb
|
33
|
33
|
|
12,402
|
12,402
|
|
Otherc
|
123
|
-
|
|
39,142
|
435
|
|
|
_____
|
____
|
|
_______
|
______
|
Total
|
6,164
|
173
|
|
911,627
|
31,300
|
|
|
|
_____
|
____
|
|
_______
|
______
|
Analysed by ownership type
|
|
|
|
|
|
|
|
Franchised
|
5,202
|
169
|
|
656,431
|
30,316
|
|
Managed
|
946
|
7
|
|
250,977
|
1,386
|
|
Owned, leased and managed lease
|
16
|
(3)
|
|
4,219
|
(402)
|
|
|
_____
|
____
|
|
_______
|
______
|
Total
|
6,164
|
173
|
|
911,627
|
31,300
|
|
|
|
_____
|
____
|
|
_______
|
______
|
|
|
|
|
|
|
|
Global pipeline
|
Hotels
|
|
Rooms
|
|||
|
||||||
|
|
Change over
|
|
|
Change over
|
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
|
Six Senses
|
38
|
5
|
|
2,631
|
207
|
Regent
|
10
|
2
|
|
2,310
|
372
|
|
|
InterContinental
|
90
|
11
|
|
22,581
|
2,902
|
|
Vignette Collection
|
7
|
7
|
|
600
|
600
|
|
Kimpton
|
41
|
6
|
|
8,443
|
1,591
|
|
Hotel Indigo
|
119
|
5
|
|
19,851
|
1,399
|
|
voco
|
39
|
1
|
|
10,229
|
139
|
|
HUALUXE
|
21
|
(2)
|
|
5,350
|
(695)
|
|
Crowne Plaza
|
111
|
15
|
|
28,950
|
3,689
|
|
EVEN Hotels
|
31
|
2
|
|
5,279
|
372
|
|
Holiday Inna
|
230
|
(14)
|
|
44,242
|
(3,836)
|
|
Holiday Inn Express
|
617
|
(28)
|
|
76,735
|
(6,291)
|
avid hotels
|
145
|
(19)
|
|
12,385
|
(2,110)
|
|
|
Atwell Suites
|
30
|
7
|
|
3,001
|
726
|
|
Staybridge Suites
|
162
|
6
|
|
17,995
|
1,152
|
|
Candlewood Suites
|
124
|
31
|
|
10,268
|
2,503
|
|
Iberostar Beachfront Resortsb
|
15
|
15
|
|
6,065
|
6,065
|
|
Otherc
|
29
|
12
|
|
4,553
|
1,723
|
|
|
_____
|
____
|
|
_______
|
______
|
Total
|
1,859
|
62
|
|
281,468
|
10,508
|
|
|
|
_____
|
____
|
|
_______
|
______
|
Analysed by ownership type
|
|
|
|
|
|
|
|
Franchised
|
1,313
|
23
|
|
163,311
|
5,479
|
|
Managed
|
545
|
39
|
|
118,002
|
5,029
|
|
Owned, leased and managed lease
|
1
|
-
|
|
155
|
-
|
|
|
_____
|
____
|
|
_______
|
______
|
Total
|
1,859
|
62
|
|
281,468
|
10,508
|
|
|
|
_____
|
____
|
|
_______
|
______
|
|
|
|
|
|
|
|
AMERICAS
|
12 months ended 31 December
|
|
||||||
Americas Results
|
|
|
|
|
||||
|
2022
|
2021
|
%
|
|
||||
|
$m
|
$m
|
change
|
|
||||
Revenue from
the reportable segmenta
|
|
|
|
|
||||
|
Fee business
|
879
|
691
|
27.2
|
|
|||
|
Owned, leased and managed lease
|
126
|
83
|
51.8
|
|
|||
|
____
|
____
|
____
|
|
||||
Total
|
|
1,005
|
774
|
29.8
|
|
|||
|
____
|
____
|
____
|
|
||||
Operating profit from the reportable
segmenta
|
|
|
|
|
||||
|
Fee business
|
741
|
568
|
30.5
|
|
|||
|
Owned, leased and managed lease
|
20
|
(9)
|
NMc
|
|
|||
|
____
|
____
|
____
|
|
||||
|
|
761
|
559
|
36.1
|
|
|||
Operating exceptional items
|
|
(46)
|
(22)
|
109.1
|
|
|||
|
____
|
____
|
____
|
|
||||
Operating profit
|
715
|
537
|
33.1
|
|
||||
|
____
|
_____
|
_______
|
|
||||
Americas Comparable
RevPARb movement
on previous year
|
12 months ended
31 December 2022
|
|||||||
Fee business
|
|
|||||||
|
InterContinental
|
85.7%
|
||||||
|
Kimpton
|
58.7%
|
||||||
|
Hotel Indigo
|
36.1%
|
||||||
|
Crowne Plaza
|
51.4%
|
||||||
|
EVEN Hotels
|
68.6%
|
||||||
|
Holiday Inn
|
32.3%
|
||||||
|
Holiday Inn Express
|
21.2%
|
||||||
|
avid hotels
|
30.2%
|
||||||
|
Staybridge Suites
|
18.7%
|
||||||
|
Candlewood Suites
|
11.6%
|
||||||
|
All brands
|
28.3%
|
||||||
Owned, leased and managed lease
|
|
|||||||
|
All brands
|
63.7%
|
||||||
|
|
|
|
|
|
|
|
|
|
Hotels
|
|
Rooms
|
|||
|
||||||
Americas hotel and room count
|
|
Change over
|
|
|
Change over
|
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
|
Six Senses
|
-
|
(1)
|
|
-
|
(20)
|
|
InterContinental
|
42
|
(1)
|
|
15,541
|
(110)
|
|
Kimpton
|
62
|
(2)
|
|
10,604
|
(404)
|
|
Hotel Indigo
|
73
|
7
|
|
9,747
|
1,002
|
|
voco
|
8
|
3
|
|
923
|
454
|
|
Crowne Plaza
|
110
|
(2)
|
|
28,334
|
404
|
|
EVEN Hotels
|
19
|
-
|
|
2,743
|
-
|
|
Holiday Inna
|
724
|
8
|
|
122,189
|
1,339
|
|
Holiday Inn Express
|
2,472
|
36
|
|
225,084
|
3,357
|
avid hotels
|
59
|
11
|
|
5,353
|
1,073
|
|
|
Atwell Suites
|
2
|
2
|
|
186
|
186
|
|
Staybridge Suites
|
296
|
-
|
|
31,029
|
(68)
|
|
Candlewood Suites
|
368
|
7
|
|
32,753
|
728
|
|
Iberostar Beachfront Resortsb
|
23
|
23
|
|
9,027
|
9,027
|
|
Otherc
|
98
|
(3)
|
|
21,983
|
(561)
|
|
|
_____
|
____
|
|
_______
|
______
|
Total
|
4,356
|
88
|
|
515,496
|
16,407
|
|
|
|
_____
|
____
|
|
_______
|
______
|
Analysed by ownership type
|
|
|
|
|
|
|
|
Franchised
|
4,185
|
98
|
|
478,448
|
18,191
|
|
Managed
|
168
|
(10)
|
|
35,721
|
(1,784)
|
Owned, leased and managed lease
|
3
|
-
|
|
1,327
|
-
|
|
|
|
_____
|
____
|
|
_______
|
______
|
Total
|
4,356
|
88
|
|
515,496
|
16,407
|
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Hotels
|
|
Rooms
|
|||
|
||||||
Americas pipeline
|
|
Change over
|
|
|
Change over
|
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
|
Six Senses
|
6
|
-
|
|
323
|
(148)
|
|
InterContinental
|
10
|
1
|
|
2,403
|
151
|
|
Vignette Collection
|
2
|
2
|
|
175
|
175
|
|
Kimpton
|
24
|
5
|
|
4,583
|
1,152
|
|
Hotel Indigo
|
26
|
(3)
|
|
3,647
|
(423)
|
|
voco
|
4
|
(1)
|
|
747
|
(298)
|
|
Crowne Plaza
|
7
|
(1)
|
|
1,318
|
(325)
|
|
EVEN Hotels
|
10
|
-
|
|
1,171
|
5
|
|
Holiday Inna
|
66
|
(8)
|
|
8,122
|
(1,346)
|
|
Holiday Inn Express
|
340
|
2
|
|
32,892
|
191
|
|
avid hotels
|
145
|
(19)
|
|
12,385
|
(2,110)
|
|
Atwell Suites
|
30
|
7
|
|
3,001
|
726
|
|
Staybridge Suites
|
142
|
5
|
|
14,923
|
873
|
|
Candlewood Suites
|
124
|
31
|
|
10,268
|
2,503
|
|
Iberostar Beachfront Resortsb
|
5
|
5
|
|
2,391
|
2,391
|
|
Otherc
|
13
|
2
|
|
1,970
|
199
|
|
|
____
|
____
|
|
______
|
______
|
Total
|
954
|
28
|
|
100,319
|
3,716
|
|
|
|
____
|
____
|
|
______
|
______
|
Analysed by ownership type
|
|
|
|
|
|
|
|
Franchised
|
916
|
27
|
|
94,258
|
3,526
|
|
Managed
|
38
|
1
|
|
6,061
|
190
|
|
|
____
|
____
|
|
______
|
______
|
Total
|
954
|
28
|
|
100,319
|
3,716
|
|
|
|
____
|
____
|
|
______
|
______
|
|
12 months ended 31 December
|
||||
EMEAA results
|
|
|
|
||
|
2022
|
2021
|
%
|
||
|
$m
|
$m
|
change
|
||
Revenue from the reportable
segmenta
|
|
|
|
||
|
Fee business
|
284
|
149
|
90.6
|
|
|
Owned, leased and managed lease
|
268
|
154
|
74.0
|
|
|
____
|
____
|
____
|
||
Total
|
|
552
|
303
|
82.2
|
|
|
____
|
____
|
____
|
||
Operating profit from the reportable
segmenta
|
|
|
|
||
|
Fee business
|
153
|
32
|
378.1
|
|
|
Owned, leased and managed lease
|
(1)
|
(27)
|
(96.3)
|
|
|
____
|
____
|
____
|
||
|
|
152
|
5
|
NMc
|
|
Operating exceptional items
|
|
(49)
|
(7)
|
600.0
|
|
|
|
____
|
____
|
_____
|
|
Operating profit/(loss)
|
103
|
(2)
|
NMc
|
||
|
____
|
____
|
_____
|
||
|
|
|
|
|
|
EMEAA comparable
RevPARb movement
on previous year
|
12 months ended
31 December 2022
|
||
|
|
||
Fee business
|
|
||
|
Six Senses
|
124.3%
|
|
|
Regent
|
67.5%
|
|
|
InterContinental
|
99.1%
|
|
|
Kimpton
|
249.5%
|
|
|
Hotel Indigo
|
122.8%
|
|
|
voco
|
52.0%
|
|
|
Crowne Plaza
|
86.5%
|
|
|
Holiday Inn
|
90.3%
|
|
|
Holiday Inn Express
|
90.3%
|
|
|
Staybridge Suites
|
44.2%
|
|
|
All brands
|
92.2%
|
|
|
|
|
|
Owned, leased and managed lease
|
|
||
|
All brands
|
142.3%
|
|
|
|
|
|
|
|
|
|
EMEAA hotel and room count
|
Hotels
|
|
Rooms
|
|||
|
||||||
|
|
Change over
|
|
|
Change over
|
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
|
Six Senses
|
18
|
(1)
|
|
1,236
|
(34)
|
Regent
|
4
|
1
|
|
1,113
|
342
|
|
|
InterContinental
|
111
|
3
|
|
32,861
|
300
|
|
Vignette Collection
|
3
|
2
|
|
579
|
433
|
|
Kimpton
|
12
|
2
|
|
2,397
|
251
|
|
Hotel Indigo
|
51
|
3
|
|
5,733
|
550
|
|
voco
|
29
|
8
|
|
7,926
|
2,044
|
|
Crowne Plaza
|
182
|
-
|
|
43,942
|
(886)
|
|
Holiday Inn
|
374
|
(6)
|
|
67,867
|
(2,957)
|
|
Holiday Inn Express
|
341
|
8
|
|
49,875
|
1,327
|
|
Staybridge Suites
|
18
|
(1)
|
|
2,932
|
(277)
|
|
Iberostar Beachfront Resortsa
|
10
|
10
|
|
3,375
|
3,375
|
|
Otherb
|
16
|
3
|
|
9,828
|
996
|
|
|
_____
|
____
|
|
_______
|
____
|
Total
|
1,169
|
32
|
|
229,664
|
5,464
|
|
|
|
_____
|
____
|
|
_______
|
____
|
Analysed by ownership type
|
|
|
|
|
|
|
|
Franchised
|
802
|
35
|
|
131,916
|
6,209
|
|
Managed
|
354
|
-
|
|
94,856
|
(343)
|
Owned, leased and managed lease
|
13
|
(3)
|
|
2,892
|
(402)
|
|
|
|
_____
|
____
|
|
_______
|
____
|
Total
|
1,169
|
32
|
|
229,664
|
5,464
|
|
|
|
_____
|
____
|
|
_______
|
____
|
EMEAA pipeline
|
Hotels
|
|
Rooms
|
|||
|
||||||
|
|
Change over
|
|
|
Change over
|
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
|
Six Senses
|
28
|
5
|
|
2,075
|
355
|
Regent
|
6
|
-
|
|
1,368
|
27
|
|
|
InterContinental
|
51
|
8
|
|
11,796
|
2,276
|
|
Vignette Collection
|
5
|
5
|
|
425
|
425
|
|
Kimpton
|
8
|
(1)
|
|
1,534
|
(140)
|
|
Hotel Indigo
|
46
|
2
|
|
8,044
|
1,040
|
|
voco
|
32
|
1
|
|
8,827
|
74
|
|
Crowne Plaza
|
40
|
-
|
|
10,377
|
(84)
|
|
Holiday Inn
|
84
|
(14)
|
|
16,436
|
(4,578)
|
|
Holiday Inn Express
|
88
|
(11)
|
|
13,199
|
(2,394)
|
|
Staybridge Suites
|
20
|
1
|
|
3,072
|
279
|
|
Iberostar Beachfront Resortsa
|
10
|
10
|
|
3,674
|
3,674
|
|
Otherb
|
16
|
10
|
|
2,583
|
1,524
|
|
|
____
|
____
|
|
____
|
_____
|
Total
|
434
|
16
|
|
83,410
|
2,478
|
|
|
|
____
|
____
|
|
____
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
|
Franchised
|
164
|
(11)
|
|
26,688
|
(357)
|
|
Managed
|
269
|
27
|
|
56,567
|
2,835
|
Owned, leased and managed lease
|
1
|
-
|
|
155
|
-
|
|
|
|
____
|
____
|
|
______
|
_____
|
Total
|
434
|
16
|
|
83,410
|
2,478
|
|
|
|
____
|
____
|
|
______
|
_____
|
|
12 months ended 31 December
|
||||
|
|
|
|
||
Greater China results
|
2022
|
2021
|
%
|
||
|
$m
|
$m
|
change
|
||
|
|
|
|
||
Revenue from the reportable
segmenta
|
|
|
|
||
|
Fee business
|
87
|
116
|
(25.0)
|
|
|
|
____
|
____
|
_____
|
|
Total
|
|
87
|
116
|
(25.0)
|
|
|
____
|
____
|
_____
|
||
Operating profit from the reportable
segmenta
|
|
|
|
||
|
Fee business
|
23
|
58
|
(60.3)
|
|
|
____
|
____
|
____
|
||
Operating profit
|
23
|
58
|
(60.3)
|
||
|
____
|
____
|
____
|
||
|
|
|
|
|
|
Greater China comparable
RevPARb movement
on previous year
|
12 months ended
31 December 2022
|
|
|
|
|
Fee business
|
|
|
|
Regent
|
(4.6)%
|
|
InterContinental
|
(22.4)%
|
|
Hotel Indigo
|
(6.6)%
|
|
HUALUXE
|
(8.5)%
|
|
Crowne Plaza
|
(11.0)%
|
|
Holiday Inn
|
(8.7)%
|
|
Holiday Inn Express
|
(11.9)%
|
|
All brands
|
(13.5)%
|
|
|
|
|
|
|
Greater China hotel and room count
|
Hotels
|
|
Rooms
|
|||
|
||||||
|
|
Change over
|
|
|
Change over
|
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
|
Six Senses
|
1
|
-
|
|
130
|
8
|
Regent
|
5
|
1
|
|
1,915
|
496
|
|
|
InterContinental
|
54
|
1
|
|
21,404
|
214
|
|
Kimpton
|
2
|
1
|
|
307
|
178
|
|
Hotel Indigo
|
19
|
3
|
|
2,974
|
559
|
|
voco
|
8
|
3
|
|
1,575
|
481
|
|
HUALUXE
|
21
|
5
|
|
5,983
|
1,380
|
|
Crowne Plaza
|
111
|
1
|
|
38,143
|
(277)
|
|
EVEN Hotels
|
3
|
1
|
|
437
|
186
|
|
Holiday Inn
|
128
|
6
|
|
34,325
|
1,315
|
|
Holiday Inn Express
|
278
|
31
|
|
51,943
|
4,889
|
|
Othera
|
9
|
-
|
|
7,331
|
-
|
|
|
____
|
____
|
|
_______
|
_____
|
Total
|
639
|
53
|
|
166,467
|
9,429
|
|
|
|
____
|
____
|
|
_______
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
|
Franchised
|
215
|
36
|
|
46,067
|
5,916
|
|
Managed
|
424
|
17
|
|
120,400
|
3,513
|
|
|
____
|
____
|
|
_______
|
_____
|
Total
|
639
|
53
|
|
166,467
|
9,429
|
|
|
|
____
|
____
|
|
_______
|
_____
|
Greater China pipeline
|
Hotels
|
|
Rooms
|
|||
|
||||||
|
|
Change over
|
|
|
Change over
|
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed by brand
|
|
|
|
|
|
|
|
Six Senses
|
4
|
-
|
|
233
|
-
|
Regent
|
4
|
2
|
|
942
|
345
|
|
|
InterContinental
|
29
|
2
|
|
8,382
|
475
|
|
Kimpton
|
9
|
2
|
|
2,326
|
579
|
|
Hotel Indigo
|
47
|
6
|
|
8,160
|
782
|
|
voco
|
3
|
1
|
|
655
|
363
|
|
HUALUXE
|
21
|
(2)
|
|
5,350
|
(695)
|
|
Crowne Plaza
|
64
|
16
|
|
17,255
|
4,098
|
|
EVEN Hotels
|
21
|
2
|
|
4,108
|
367
|
|
Holiday Inn
|
80
|
8
|
|
19,684
|
2,088
|
|
Holiday Inn Express
|
189
|
(19)
|
|
30,644
|
(4,088)
|
|
Other
|
-
|
-
|
|
-
|
-
|
|
|
____
|
____
|
|
______
|
_____
|
Total
|
471
|
18
|
|
97,739
|
4,314
|
|
|
|
____
|
____
|
|
______
|
_____
|
Analysed by ownership type
|
|
|
|
|
|
|
|
Franchised
|
233
|
7
|
|
42,365
|
2,310
|
|
Managed
|
238
|
11
|
|
55,374
|
2,004
|
|
|
____
|
____
|
|
______
|
_____
|
Total
|
471
|
18
|
|
97,739
|
4,314
|
|
|
|
____
|
____
|
|
______
|
_____
|
|
12 months ended 31 December
|
||
|
|
|
|
|
2022
|
2021
|
%
|
Central results
|
$m
|
$m
|
change
|
|
|
|
|
Revenue
|
199
|
197
|
1.0
|
Gross costs
|
(307)
|
(285)
|
7.7
|
|
____
|
____
|
____
|
Operating loss
|
(108)
|
(88)
|
22.7
|
|
____
|
____
|
____
|
●
|
Total rooms revenue from franchised hotels;
|
●
|
Total hotel revenue from managed hotels including 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 surplus or
deficit 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 specific purposes such as use in marketing, the
Guest Reservation System 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 with consideration given to consistency of
treatment with prior years and between gains and losses.
Exceptional items 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 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, adjusted earnings per ordinary share and the
definition of tax excluding the impact of exceptional items and
System Fund 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,
and excluding these amounts provides a more comparable year-on-year
measure for investors and other users, aligned to how management
monitors the business. Comparatives have not been restated as the
impact of these changes is 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
|
3,892
|
2,907
|
33.9
|
|
628
|
494
|
27.1
|
System Fund
|
(1,217)
|
(928)
|
31.1
|
|
105
|
11
|
854.5
|
Reimbursement of costs
|
(832)
|
(589)
|
41.3
|
|
-
|
-
|
-
|
Operating exceptional items
|
-
|
-
|
-
|
|
95
|
29
|
227.6
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
1,843
|
1,390
|
32.6
|
|
828
|
534
|
55.1
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
Fee business
|
1,449
|
1,153
|
25.7
|
|
809
|
570
|
41.9
|
Owned, leased and managed lease
|
394
|
237
|
66.2
|
|
19
|
(36)
|
NMa
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
1,843
|
1,390
|
32.6
|
|
828
|
534
|
55.1
|
|
Revenue
|
|
Operating profit
|
|
||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
2022
|
2021
|
%
|
|
202
|
2021
|
%
|
|||||||
$m
|
$m
|
change
|
|
$m
|
$m
|
Change
|
||||||||
|
|
|
|
|
|
|
|
|||||||
Reportable segments (see above)
|
1,843
|
1,390
|
32.6
|
|
828
|
534
|
55.1
|
|||||||
Significant liquidated damagesb
|
(7)
|
(6)
|
16.7
|
|
(7)
|
(6)
|
16.7
|
|||||||
Owned and leased asset disposalsc
|
(19)
|
(36)
|
(47.2)
|
|
(2)
|
8
|
NMa
|
|||||||
Currency impact
|
-
|
(40)
|
-
|
|
-
|
1
|
-
|
|||||||
|
____
|
_____
|
_____
|
|
____
|
_____
|
_____
|
|||||||
Underlying revenue and underlying operating profit
|
1,817
|
1,308
|
38.9
|
|
819
|
537
|
52.5
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
Operating profit
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|||||
|
2022
|
2021
|
%
|
|
2022
|
2021
|
%
|
||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
||||||
|
|
|
|
|
|
|
|
||||||
Reportable segments fee business (see above)
|
1,449
|
1,153
|
25.7
|
|
809
|
570
|
41.9
|
||||||
Significant liquidated damagesa
|
(7)
|
(6)
|
16.7
|
|
(7)
|
(6)
|
16.7
|
||||||
Currency impact
|
-
|
(22)
|
-
|
|
-
|
(2)
|
-
|
||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||
Underlying fee revenue and underlying fee operating
profit
|
1,442
|
1,125
|
28.2
|
|
802
|
562
|
42.7
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Operating profita
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||
|
2022
|
2021
|
%
|
|
2022
|
2021
|
%
|
||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
||||||
|
|
|
|
|
|
|
|
||||||
Per Group financial statements
|
1,005
|
774
|
29.8
|
|
761
|
559
|
36.1
|
||||||
|
|
|
|
|
|
|
|
||||||
Reportable segments analysed as:
|
|
|
|
|
|
|
|
||||||
Fee business
|
879
|
691
|
27.2
|
|
741
|
568
|
30.5
|
||||||
Owned, leased and managed lease
|
126
|
83
|
51.8
|
|
20
|
(9)
|
NMb
|
||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||
|
1,005
|
774
|
29.8
|
|
761
|
559
|
36.1
|
||||||
|
|
|
|
|
|
|
|
||||||
Reportable segments (see above)
|
1,005
|
774
|
29.8
|
|
761
|
559
|
36.1
|
||||||
Owned and leased asset disposalsc
|
-
|
(11)
|
-
|
|
-
|
3
|
-
|
||||||
Currency impact
|
-
|
(1)
|
-
|
|
-
|
(1)
|
-
|
||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||
Underlying revenue and underlying operating profit
|
1,005
|
762
|
31.9
|
|
761
|
561
|
35.7
|
||||||
|
|
|
|
|
|
|
|
||||||
Owned, leased and managed lease included in the above
|
(126)
|
(72)
|
75.0
|
|
(20)
|
6
|
NMb
|
||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||
Underlying fee business
|
879
|
690
|
27.4
|
|
741
|
567
|
30.7
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Operating profita
|
|||||||||||
|
|
|
|
|
|
|
|
|||||||
|
2022
|
2021
|
%
|
|
2022
|
2021
|
%
|
|
||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Per Group financial statements
|
552
|
303
|
82.2
|
|
152
|
5
|
NMb
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Reportable segments analysed as:
|
|
|
|
|
|
|
|
|
||||||
Fee business
|
284
|
149
|
90.6
|
|
153
|
32
|
378.1
|
|
||||||
Owned, leased and managed lease
|
268
|
154
|
74.0
|
|
(1)
|
(27)
|
(96.3)
|
|
||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
||||||
|
552
|
303
|
82.2
|
|
152
|
5
|
NMb
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Reportable segments (see above)
|
552
|
303
|
82.2
|
|
152
|
5
|
NMb
|
|
||||||
Significant liquidated damagesd
|
(7)
|
-
|
-
|
|
(7)
|
-
|
-
|
|
||||||
Owned and leased asset disposalsc
|
(19)
|
(25)
|
(24.0)
|
|
(2)
|
5
|
NMb
|
|
||||||
Currency impact
|
-
|
(30)
|
-
|
|
-
|
(2)
|
-
|
|
||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
||||||
Underlying revenue and underlying operating profit
|
526
|
248
|
112.1
|
|
143
|
8
|
NMb
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Owned, leased and managed lease included in the above
|
(249)
|
(111)
|
124.3
|
|
3
|
19
|
(84.2)
|
|
||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
||||||
Underlying fee business
|
277
|
137
|
102.2
|
|
146
|
27
|
440.7
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Operating profita
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|||||||
|
2022
|
2021
|
%
|
|
2022
|
2021
|
%
|
||||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
||||||||
Per Group financial statements
|
|
|
|
|
|
|
|
||||||||
Reportable segments analysed as:
|
87
|
116
|
(25.0)
|
|
23
|
58
|
(60.3)
|
||||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||||
Fee business
|
87
|
116
|
(25.0)
|
|
23
|
58
|
(60.3)
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Reportable segments (see above)
|
87
|
116
|
(25.0)
|
|
23
|
58
|
(60.3)
|
||||||||
Significant liquidated damagesc
|
-
|
(6)
|
-
|
|
-
|
(6)
|
-
|
||||||||
Currency impact
|
-
|
(4)
|
-
|
|
-
|
(2)
|
-
|
||||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||||
Underlying revenue and underlying operating profit
|
87
|
106
|
(17.9)
|
|
23
|
50
|
(54.0)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 months ended 31 December
|
||||
2022
|
|
|
|
|
|
|
Americas
|
EMEAA
|
Greater China
|
Central
|
Total
|
Revenue $m
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
879
|
284
|
87
|
199
|
1,449
|
Significant liquidated damages
|
-
|
(7)
|
-
|
-
|
(7)
|
Captive insurance company
|
-
|
-
|
-
|
(21)
|
(21)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
879
|
277
|
87
|
178
|
1,421
|
|
|
|
|
|
|
Operating profit $m
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
741
|
153
|
23
|
(108)
|
809
|
Significant liquidated damages
|
-
|
(7)
|
-
|
-
|
(7)
|
Captive insurance company
|
-
|
-
|
-
|
(4)
|
(4)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
741
|
146
|
23
|
(112)
|
798
|
|
|
|
|
|
|
Fee margin %
|
84.3%
|
52.7%
|
26.4%
|
(62.9)%
|
56.2%
|
|
12 months ended 31 December
|
||||
2021
|
|
|
|
|
|
|
Americas
|
EMEAA
|
Greater China
|
Central
|
Total
|
Revenue $m
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
691
|
149
|
116
|
197
|
1,153
|
Significant liquidated damages
|
-
|
-
|
(6)
|
-
|
(6)
|
Captive insurance company
|
-
|
-
|
-
|
(17)
|
(17)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
691
|
149
|
110
|
180
|
1,130
|
|
|
|
|
|
|
Operating profit $m
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
568
|
32
|
58
|
(88)
|
570
|
Significant liquidated damages
|
-
|
-
|
(6)
|
-
|
(6)
|
Captive insurance company
|
-
|
-
|
-
|
(3)
|
(3)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
568
|
32
|
52
|
(91)
|
561
|
|
|
|
|
|
|
Fee margin %
|
82.2%
|
21.5%
|
47.3%
|
(50.6)%
|
49.6%
|
|
12 months ended 31 December
|
|
|
|
|
|
2022
|
2021
|
|
$m
|
$m
|
|
|
|
Net cash from investing activities
|
(78)
|
(12)
|
Adjusted for:
|
|
|
Contract acquisition costs, net of repayments
|
(64)
|
(42)
|
System Fund depreciation
and amortisationa
|
83
|
91
|
Deferred purchase consideration paid
|
-
|
13
|
|
_____
|
_____
|
Net capital expenditure
|
(59)
|
50
|
|
_____
|
_____
|
Analysed as:
|
|
|
Capital expenditure: maintenance (including contract acquisition
costs, net of repayments, of $64m (2021: $42m))
|
(108)
|
(75)
|
Capital expenditure: recyclable investments
|
1
|
53
|
Capital expenditure: System Fund capital investments
|
48
|
72
|
|
_____
|
_____
|
Net capital expenditure
|
(59)
|
50
|
|
_____
|
_____
|
|
12 months ended 31 December
|
|
|
|
|
|
2022
|
2021
|
|
$m
|
$m
|
|
|
|
Net capital expenditure
|
(59)
|
50
|
Add back:
|
|
|
Disposal receipts
|
(16)
|
(58)
|
Repayments of contract acquisition costs
|
(3)
|
(1)
|
System Fund depreciation
and amortisationa
|
(83)
|
(91)
|
|
_____
|
_____
|
Gross capital expenditure
|
(161)
|
(100)
|
|
_____
|
_____
|
Analysed as:
|
|
|
Capital
expenditure: maintenance (including gross contract
|
(111)
|
(76)
|
acquisition costs of $67m (2021: $43m))
|
||
Capital
expenditure: recyclable investments
|
(15)
|
(5)
|
Capital
expenditure: System Fund capital investments
|
(35)
|
(19)
|
|
_____
|
_____
|
Gross capital expenditure
|
(161)
|
(100)
|
|
_____
|
_____
|
|
12 months ended 31 December
|
|
|
|
|
|
2022
|
2021
|
|
$m
|
$m
|
|
|
|
Net cash from operating activities
|
646
|
636
|
Adjusted for:
|
|
|
Principal
element of lease payments
|
(36)
|
(32)
|
Purchase
of shares by employee share trusts
|
(1)
|
-
|
Capital
expenditure: maintenance (excluding contract acquisition
costs)
|
(44)
|
(33)
|
|
_____
|
_____
|
Adjusted free cash flow
|
565
|
571
|
|
_____
|
_____
|
|
12 months ended 31 December
|
|||
|
|
|||
|
2022
|
2021
|
|
|
|
$m
|
$m
|
|
|
Net financial expenses
|
|
|
|
|
Financial income
|
22
|
8
|
|
|
Financial expenses
|
(118)
|
(147)
|
|
|
|
_____
|
_____
|
|
|
|
(96)
|
(139)
|
|
|
Adjusted for:
|
|
|
|
|
Interest attributable to the System Fund
Foreign exchange gains*
|
(16)
(10)
|
(3)
-
|
|
|
|
_____
|
_____
|
|
|
|
(26)
|
(3)
|
|
|
|
|
|
|
|
Adjusted interest
|
(122)
|
(142)
|
|
|
|
_____
|
_____
|
|
|
|
|
|
|
|
|
12 months ended 31 December
|
|
|
|
|
|
2022
|
2021
|
|
$m
|
$m
|
Profit available for equity holders
|
375
|
266
|
Adjusting items:
|
|
|
System Fund revenues and expenses
|
105
|
11
|
Interest attributable to the System Fund
|
(16)
|
(3)
|
Operating exceptional items
|
95
|
29
|
Fair value gains on contingent purchase consideration
|
(8)
|
(6)
|
Tax on fair value gains on contingent purchase
consideration
|
-
|
1
|
Foreign exchange gains*
|
(10)
|
-
|
Tax on foreign exchange gains*
|
(4)
|
-
|
Tax on exceptional items
|
(26)
|
(3)
|
Exceptional tax
|
-
|
(26)
|
|
_____
|
_____
|
Adjusted earnings
|
511
|
269
|
|
|
|
Basic weighted average number of ordinary shares
(millions)
|
181
|
183
|
Adjusted earnings per ordinary share (cents)
|
282.3
|
147.0
|
|
|
|
Reportable segments
|
Revenue
|
|
Operating profit
|
||||
|
|
|
|
|
|
|
|
|
2022
|
2019
|
%
|
|
2022
|
2019
|
%
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
Per Group income statement
|
3,892
|
4,627
|
(15.9)
|
|
628
|
630
|
(0.3)
|
System Fund
|
(1,217)
|
(1,373)
|
(11.4)
|
|
105
|
49
|
114.3
|
Reimbursement of costs
|
(832)
|
(1,171)
|
(28.9)
|
|
-
|
-
|
-
|
Operating exceptional items
|
-
|
-
|
-
|
|
95
|
186
|
(48.9)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
1,843
|
2,083
|
(11.5)
|
|
828
|
865
|
(4.3)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
Fee business
|
1,449
|
1,510
|
(4.0)
|
|
809
|
813
|
(0.5)
|
Owned, leased and managed lease
|
394
|
573
|
(31.2)
|
|
19
|
52
|
(63.5)
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
Reportable segments
|
1,843
|
2,083
|
(11.5)
|
|
828
|
865
|
(4.3)
|
|
Revenue
|
|
Operating profita
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||
|
2022
|
2019
|
%
|
|
2022
|
2019
|
%
|
||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
||||||
|
|
|
|
|
|
|
|
||||||
Per Group financial statements
|
1,005
|
1,040
|
(3.4)
|
|
761
|
700
|
8.7
|
||||||
|
|
|
|
|
|
|
|
||||||
Reportable segments analysed as:
|
|
|
|
|
|
|
|
||||||
Fee business
|
879
|
853
|
3.0
|
|
741
|
663
|
11.8
|
||||||
Owned, leased and managed lease
|
126
|
187
|
(32.6)
|
|
20
|
37
|
(45.9)
|
||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||
|
1,005
|
1,040
|
(3.4)
|
|
761
|
700
|
8.7
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Operating profita
|
|||||||||||
|
|
|
|
|
|
|
|
|||||||
|
2022
|
2019
|
%
|
|
2022
|
2019
|
%
|
|
||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Per Group financial statements
|
552
|
723
|
(23.7)
|
|
152
|
217
|
(30.0)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Reportable segments analysed as:
|
|
|
|
|
|
|
|
|
||||||
Fee business
|
284
|
337
|
(15.7)
|
|
153
|
202
|
(24.3)
|
|
||||||
Owned, leased and managed lease
|
268
|
386
|
(30.6)
|
|
(1)
|
15
|
NMb
|
|
||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
||||||
|
552
|
723
|
(23.7)
|
|
152
|
217
|
(30.0)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Operating profita
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|||||||
|
2022
|
2019
|
%
|
|
2022
|
2019
|
%
|
||||||||
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Per Group financial statements
|
87
|
135
|
(35.6)
|
|
23
|
73
|
(68.5)
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Reportable segments analysed as:
|
|
|
|
|
|
|
|
||||||||
Fee business
|
87
|
135
|
(35.6)
|
|
23
|
73
|
(68.5)
|
||||||||
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||||||
|
87
|
135
|
(35.6)
|
|
23
|
73
|
(68.5)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 months ended 31 December
|
||||
2019
|
|
|
|
|
|
|
Americas
|
EMEAA
|
Greater China
|
Central
|
Total
|
Revenue $m
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
853
|
337
|
135
|
185
|
1,510
|
Significant liquidated damages
|
-
|
(11)
|
-
|
-
|
(11)
|
Captive insurance company
|
-
|
-
|
-
|
(19)
|
(19)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
853
|
326
|
135
|
166
|
1,480
|
|
|
|
|
|
|
Operating profit $m
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
663
|
202
|
73
|
(125)
|
813
|
Significant liquidated damages
|
-
|
(11)
|
-
|
-
|
(11)
|
Captive insurance company
|
-
|
-
|
-
|
(1)
|
(1)
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
663
|
191
|
73
|
(126)
|
801
|
|
|
|
|
|
|
Fee margin %
|
77.7%
|
58.6%
|
54.1%
|
(75.9)%
|
54.1%
|
|
2022
Year ended
31 December
$m
|
2021
Year ended31 December$m
|
|
|
|
Revenue from fee business
|
1,449
|
1,153
|
Revenue from owned, leased and managed lease hotels
|
394
|
237
|
System Fund revenues
|
1,217
|
928
|
Reimbursement of costs
|
832
|
589
|
|
_____
|
_____
|
Total revenue (notes 3 and 4)
|
3,892
|
2,907
|
|
|
|
Cost of sales
|
(648)
|
(486)
|
System Fund expenses
|
(1,322)
|
(939)
|
Reimbursed costs
|
(832)
|
(589)
|
Administrative expenses
|
(364)
|
(300)
|
Share of losses of associates
|
(59)
|
(8)
|
Other operating income
|
29
|
11
|
Depreciation and amortisation
|
(68)
|
(98)
|
Impairment loss on financial assets
|
(5)
|
-
|
Other net impairment reversals/(charges) (note 5)
|
5
|
(4)
|
|
_____
|
_____
|
Operating profit (note 3)
|
628
|
494
|
|
|
|
Operating profit analysed as:
|
|
|
Operating profit before System Fund and exceptional
items
|
828
|
534
|
System Fund
|
(105)
|
(11)
|
Operating exceptional items (note 5)
|
(95)
|
(29)
|
|
_____
|
_____
|
|
628
|
494
|
|
|
|
Financial income
|
22
|
8
|
Financial expenses
|
(118)
|
(147)
|
Fair value gains on contingent purchase consideration
|
8
|
6
|
|
_____
|
_____
|
Profit before tax
|
540
|
361
|
|
|
|
Tax (note 6)
|
(164)
|
(96)
|
|
_____
|
_____
|
Profit for the year from continuing operations
|
376
|
265
|
|
_____
|
_____
|
|
|
|
Attributable to:
|
|
|
Equity holders of the parent
|
375
|
266
|
Non-controlling interest
|
1
|
(1)
|
|
_____
|
_____
|
|
376
|
265
|
|
_____
|
_____
|
|
|
|
Earnings per ordinary share (note 7)
|
|
|
Basic
|
207.2¢
|
145.4¢
|
Diluted
|
206.0¢
|
144.6¢
|
|
|
|
|
2022
Year ended
31 December
$m
|
2021
Year ended
31 December
$m
|
|
|
|
Profit for the year
|
376
|
265
|
|
|
|
Other comprehensive income
|
|
|
|
|
|
Items that may be subsequently reclassified to profit or
loss:
|
|
|
Gains/(losses) on cash flow hedges, including related tax
credit of $2m (2021: $7m charge)
|
35
|
(69)
|
Costs of hedging
|
3
|
2
|
Hedging (gains)/losses reclassified to financial
expenses
|
(43)
|
96
|
Exchange gains/(losses) on retranslation of foreign
operations, including related tax credit of $5m (2021: $4m
charge)
|
181
|
18
|
|
_____
|
_____
|
|
176
|
47
|
Items that will not be reclassified to profit or loss:
|
|
|
Gains on equity instruments classified as fair
value through other comprehensive income, including related
tax credit
of $2m (2021: $1m charge)
|
1
|
14
|
Re-measurement gains on defined benefit plans, net of
related tax charge of $6m (2021: $nil)
|
15
|
7
|
Tax related to pension contributions
|
-
|
1
|
|
_____
|
_____
|
|
16
|
22
|
|
_____
|
_____
|
Total other comprehensive income for the year
|
192
|
69
|
|
_____
|
_____
|
Total comprehensive income for the year
|
568
|
334
|
|
_____
|
_____
|
|
|
|
Attributable to:
|
|
|
Equity holders of the parent
|
568
|
335
|
Non-controlling interest
|
-
|
(1)
|
|
_____
|
_____
|
|
568
|
334
|
|
_____
|
_____
|
|
|
|
|
Year ended 31 December 2022
|
|||||
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
At beginning of the year
|
154
|
(2,539)
|
904
|
7
|
(1,474)
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
-
|
178
|
390
|
-
|
568
|
|
Repurchase of shares, including transaction costs
|
(1)
|
1
|
(513)
|
-
|
(513)
|
|
Purchase of own shares by employee share trusts
|
-
|
(1)
|
-
|
-
|
(1)
|
|
Transfer of treasury shares to employee share trusts
|
-
|
(26)
|
26
|
-
|
-
|
|
Release of own shares by employee share trusts
|
-
|
12
|
(12)
|
-
|
-
|
|
Equity-settled share-based cost
|
-
|
-
|
44
|
-
|
44
|
|
Tax related to share schemes
|
-
|
-
|
1
|
-
|
1
|
|
Equity dividends paid
|
-
|
-
|
(233)
|
-
|
(233)
|
|
Exchange adjustments
|
(16)
|
16
|
-
|
-
|
-
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
At end of the year
|
137
|
(2,359)
|
607
|
7
|
(1,608)
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
|
|
|
|
|
|
Year ended 31 December 2021
|
|||||
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
At beginning of the year
|
156
|
(2,581)
|
568
|
8
|
(1,849)
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
-
|
61
|
274
|
(1)
|
334
|
|
Transfer of treasury shares to employee share trusts
|
-
|
(34)
|
34
|
-
|
-
|
|
Release of own shares by employee share trusts
|
-
|
13
|
(13)
|
-
|
-
|
|
Equity-settled share-based cost
|
-
|
-
|
39
|
-
|
39
|
|
Tax related to share schemes
|
-
|
-
|
2
|
-
|
2
|
|
Exchange adjustments
|
(2)
|
2
|
-
|
-
|
-
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
At end of the year
|
154
|
(2,539)
|
904
|
7
|
(1,474)
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
|
|
|
|
|
*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
31 December
|
2021
31 December
|
|
$m
|
$m
|
ASSETS
|
|
|
Goodwill and other intangible assets
|
1,144
|
1,195
|
Property, plant and equipment
|
157
|
137
|
Right-of-use assets
|
280
|
274
|
Investment in associates
|
36
|
77
|
Retirement benefit assets
|
2
|
2
|
Other financial assets
|
156
|
173
|
Derivative financial instruments
|
7
|
-
|
Deferred compensation plan investments
|
216
|
256
|
Non-current other receivables
|
3
|
1
|
Deferred tax assets
|
126
|
147
|
Contract costs
|
75
|
72
|
Contract assets
|
336
|
316
|
|
______
|
______
|
Total non-current assets
|
2,538
|
2,650
|
|
______
|
______
|
Inventories
|
4
|
4
|
Trade and other receivables
|
646
|
574
|
Current tax receivable
|
16
|
1
|
Other financial assets
|
-
|
2
|
Cash and cash equivalents
|
976
|
1,450
|
Contract costs
|
5
|
5
|
Contract assets
|
31
|
30
|
|
______
|
______
|
Total current assets
|
1,678
|
2,066
|
|
______
|
______
|
Total assets
|
4,216
|
4,716
|
|
_____
|
_____
|
LIABILITIES
|
|
|
Loans and other borrowings
|
(55)
|
(292)
|
Lease liabilities
|
(26)
|
(35)
|
Trade and other payables
|
(697)
|
(579)
|
Deferred revenue
|
(681)
|
(617)
|
Provisions
|
(53)
|
(49)
|
Current tax payable
|
(32)
|
(52)
|
|
______
|
______
|
Total current liabilities
|
(1,544)
|
(1,624)
|
|
______
|
______
|
Loans and other borrowings
|
(2,341)
|
(2,553)
|
Lease liabilities
|
(401)
|
(384)
|
Derivative financial instruments
|
(11)
|
(62)
|
Retirement benefit obligations
|
(66)
|
(92)
|
Deferred compensation plan liabilities
|
(216)
|
(256)
|
Trade and other payables
|
(81)
|
(89)
|
Deferred revenue
|
(1,043)
|
(996)
|
Provisions
|
(43)
|
(41)
|
Deferred tax liabilities
|
(78)
|
(93)
|
|
______
|
______
|
Total non-current liabilities
|
(4,280)
|
(4,566)
|
|
______
|
______
|
Total liabilities
|
(5,824)
|
(6,190)
|
|
_____
|
_____
|
Net liabilities
|
(1,608)
|
(1,474)
|
|
_____
|
_____
|
EQUITY
|
|
|
IHG shareholders' equity
|
(1,615)
|
(1,481)
|
Non-controlling interest
|
7
|
7
|
|
______
|
______
|
Total equity
|
(1,608)
|
(1,474)
|
|
_____
|
_____
|
|
|
|
|
2022
Year ended
31 December
|
2021
Year ended
31 December
|
|
|
$m
|
$m
|
|
|
|
|
|
Profit for the year
|
376
|
265
|
|
Adjustments reconciling profit for the year to cash flow from
operations (note 9)
|
585
|
583
|
|
|
_____
|
_____
|
|
Cash flow from operations
|
961
|
848
|
|
Interest paid
|
(126)
|
(134)
|
|
Interest received
|
22
|
8
|
|
Tax paid
|
(211)
|
(86)
|
|
|
_____
|
_____
|
|
Net cash from operating activities
|
646
|
636
|
|
|
_____
|
_____
|
|
Cash flow from investing activities
|
|
|
|
Purchase of property, plant and equipment
|
(54)
|
(17)
|
|
Purchase of intangible assets
|
(45)
|
(35)
|
|
Investment in associates
|
(1)
|
-
|
|
Investment in other financial assets
|
-
|
(5)
|
|
Deferred purchase consideration paid
|
-
|
(13)
|
|
Lease incentives received
|
6
|
-
|
|
Disposal of property, plant and equipment
|
3
|
-
|
|
Disposal of hotel assets, net of costs and cash
disposed
|
-
|
44
|
|
Repayments of other financial assets
|
13
|
14
|
|
|
_____
|
_____
|
|
Net cash from investing activities
|
(78)
|
(12)
|
|
|
_____
|
_____
|
|
Cash flow from financing activities
|
|
|
|
Repurchase of shares, including transaction costs
|
(482)
|
-
|
|
Purchase of own shares by employee share trusts
|
(1)
|
-
|
|
Dividends paid to shareholders (note 8)
|
(233)
|
-
|
|
Repayment of commercial paper
|
-
|
(828)
|
|
Repayment of long-term bonds
|
(209)
|
-
|
|
Principal element of lease payments
|
(36)
|
(32)
|
|
|
_____
|
_____
|
|
Net cash from financing activities
|
(961)
|
(860)
|
|
|
_____
|
_____
|
|
Net movement in cash and cash equivalents, net of overdrafts, in
the year
|
(393)
|
(236)
|
|
|
|
|
|
Cash and cash equivalents, net of overdrafts, at beginning of the
year
|
1,391
|
1,624
|
|
Exchange rate effects
|
(77)
|
3
|
|
|
_____
|
_____
|
|
Cash and cash equivalents, net of overdrafts, at end of the
year
|
921
|
1,391
|
|
|
_____
|
_____
|
|
|
|
||
|
|
|
|
1.
|
Basis of preparation
|
|
The preliminary consolidated financial statements of
InterContinental Hotels Group PLC (the 'Group' or 'IHG') for the
year ended 31 December 2022 have been prepared in accordance with
UK-adopted international accounting standards and with applicable
law and regulations and with International Financial Reporting
Standards ('IFRSs') as issued by the IASB. The preliminary
statement of results shown in this announcement does not represent
the statutory accounts of the Group and its subsidiaries within the
meaning of Section 435 of the Companies Act 2006.
The Group financial statements for the year ended 31 December 2022
were approved by the Board on 20 February 2023. The auditor,
PricewaterhouseCoopers LLP, has given an unqualified report in
respect of those Group financial statements 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.
The Group financial statements for the year ended 31 December 2022
will be delivered to the Registrar of Companies in due
course.
Financial information for the year ended 31 December 2021 has been
extracted from the Group's published financial statements for that
year and which have been filed with the Registrar of Companies. The
auditor's report on those financial statements 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.
Going concern
A period of 18 months has been used, from 1 January 2023 to 30 June
2024, to complete the going concern assessment.
In adopting the going concern basis for preparing the Group
financial statements, the Directors have considered a 'Base Case'
scenario which assumes global RevPAR in 2023 around pre-pandemic
levels boosted by resilient leisure travel and continued recovery
in corporate and group demand. The assumptions applied in the Base
Case scenario are consistent with those used for Group planning
purposes, for impairment testing (impairment tests adjusted for
factors specific to individual properties or portfolios) and for
assessing recoverability of deferred tax assets.
The Directors have also reviewed a 'Downside Case' based on a
recession scenario which assumes no RevPAR growth in 2023, with the
recovery profile delayed by one year, and 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 2023
starts to worsen and then RevPAR decreases significantly by 17% in
2024.
A large number of the Group's principal risks would result in an
impact on RevPAR which is one of the sensitivities assessed against
the headroom available in the Base Case, Downside Case and Severe
Downside Case scenarios. 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 Group's bank facilities were refinanced in April 2022 with a
new revolving credit facility of $1,350m maturing in 2027 which
increased the Group's key covenant of net debt:EBITDA to 4.0x. See
note 10 for additional information. There are no debt maturities in
the period under consideration.
Under the Base Case, Downside Case and Severe Downside Case
covenants are not breached. Under the Severe Downside Case, there
is limited headroom to the bank covenants at 30 June 2024 to absorb
multiple additional risks and uncertainties. However, 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 this scenario the Group also has substantial levels
of existing cash reserves available after additional actions are
taken (over $1.4bn at 30 June 2024) and is not expected to draw on
the bank facility.
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 facility
would need to be drawn.
The leverage and interest cover covenant tests up to 30 June 2024
(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 facility is unlikely to be drawn
even in a scenario significantly worse than the Severe Downside
Case scenario, the Group does not need to rely on the additional
liquidity provided by the bank facility to remain a going concern.
This means that in the event the covenant test was failed, the bank
facility could be cancelled by the lenders but it would not trigger
a repayment demand or create a cross-default risk. As a result, a
covenant breach would not have any impact on the Group's going
concern conclusion.
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 also has alternative options to
manage this risk including raising additional funding in the
capital markets.
Having reviewed these scenarios, the Directors have a reasonable
expectation that the Group has sufficient resources to continue
operating until at least 30 June 2024. Accordingly, they continue
to adopt the going concern basis in preparing the financial
statements.
|
|
|
||||
2.
|
Exchange rates
|
||||
|
|
2022
|
2021
|
||
|
|
Average
|
Closing
|
Average
|
Closing
|
|
$1 equivalent
|
|
|
|
|
|
Sterling
|
£0.81
|
£0.83
|
£0.73
|
£0.74
|
|
Euro
|
€0.95
|
€0.94
|
€0.85
|
€0.88
|
3.
|
Segmental information
|
|
|
|
Revenue
|
2022
|
2021
|
|
|
$m
|
$m
|
|
|
|
|
|
Americas
|
1,005
|
774
|
|
EMEAA
|
552
|
303
|
|
Greater China
|
87
|
116
|
|
Central
|
199
|
197
|
|
|
_____
|
_____
|
|
Revenue from reportable segments
|
1,843
|
1,390
|
|
System Fund revenues
|
1,217
|
928
|
|
Reimbursement of costs
|
832
|
589
|
|
|
_____
|
_____
|
|
Total revenue
|
3,892
|
2,907
|
|
|
_____
|
_____
|
|
Profit
|
2022
|
2021
|
|
|
$m
|
$m
|
|
|
|
|
|
Americas
|
761
|
559
|
|
EMEAA
|
152
|
5
|
|
Greater China
|
23
|
58
|
|
Central
|
(108)
|
(88)
|
|
|
_____
|
_____
|
|
Operating profit from reportable segments
|
828
|
534
|
|
System Fund
|
(105)
|
(11)
|
|
Operating exceptional items (note 5)
|
(95)
|
(29)
|
|
|
_____
|
_____
|
|
Operating profit
|
628
|
494
|
|
Net financial expenses
|
(96)
|
(139)
|
|
Fair value gains on contingent purchase consideration
|
8
|
6
|
|
|
_____
|
_____
|
|
Profit before tax
|
540
|
361
|
|
|
_____
|
_____
|
|
|
4.
|
Revenue
|
|||||
|
Year ended 31 December 2022
|
|
|
|
|
|
|
Americas
$m
|
EMEAA
$m
|
Greater China
$m
|
Central
$m
|
Group
$m
|
|
|
|
|
|
|
|
|
Franchise
and base management fees
|
861
|
215
|
71
|
-
|
1,147
|
|
Incentive
management fees
|
18
|
69
|
16
|
-
|
103
|
|
Central
revenue
|
-
|
-
|
-
|
199
|
199
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
Revenue
from fee business
|
879
|
284
|
87
|
199
|
1,449
|
|
Revenue
from owned, leased and managed lease hotels
|
126
|
268
|
-
|
-
|
394
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
1,005
|
552
|
87
|
199
|
1,843
|
|
|
|
|
|
|
|
|
System
Fund revenues
|
|
|
|
|
1,217
|
|
Reimbursement
of costs
|
|
|
|
|
832
|
|
|
|
|
|
|
_____
|
|
Total revenue
|
|
|
|
|
3,892
|
|
|
|
|
|
|
_____
|
Year ended 31 December 2021
|
|
|
|
|
|
|
Americas
$m
|
EMEAA
$m
|
Greater China
$m
|
Central
$m
|
Group
$m
|
|
|
|
|
|
|
Franchise
and base management fees
|
683
|
120
|
91
|
-
|
894
|
Incentive
management fees
|
8
|
29
|
25
|
-
|
62
|
Central
revenue
|
-
|
-
|
-
|
197
|
197
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
Revenue
from fee business
|
691
|
149
|
116
|
197
|
1,153
|
Revenue
from owned, leased and managed lease hotels
|
83
|
154
|
-
|
-
|
237
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
774
|
303
|
116
|
197
|
1,390
|
|
|
|
|
|
|
System
Fund revenues
|
|
|
|
|
928
|
Reimbursement
of costs
|
|
|
|
|
589
|
|
|
|
|
|
_____
|
Total revenue
|
|
|
|
|
2,907
|
|
|
|
|
|
_____
|
|
At
31 December 2022, the maximum exposure remaining under performance
guarantees was $75m (2021: $85m).
|
5.
|
Exceptional items
|
||
|
|
2022
$m
|
2021
$m
|
|
Administrative expenses:
|
|
|
|
Costs of ceasing operations in Russia
|
(12)
|
-
|
|
Commercial litigation and disputes
|
(28)
|
(25)
|
|
|
_____
|
_____
|
|
|
(40)
|
(25)
|
|
|
|
|
|
Share of losses of associate
|
(60)
|
-
|
|
|
|
|
|
|
|
|
|
Other net impairment reversals/(charges):
|
|
|
|
Management agreements - reversal
|
12
|
-
|
|
Property, plant and equipment - charge
|
(10)
|
-
|
|
Property, plant and equipment - reversal
|
3
|
-
|
|
Right-of-use assets - charge
|
(2)
|
-
|
|
Right-of-use assets - reversal
|
2
|
-
|
|
Associates - charge
|
-
|
(4)
|
|
Associates - reversal
|
2
|
-
|
|
Contract assets - charge
|
(5)
|
-
|
|
Contract assets - reversal
|
3
|
-
|
|
|
_____
|
_____
|
|
|
5
|
(4)
|
|
|
_____
|
_____
|
|
Operating exceptional items
|
(95)
|
(29)
|
|
|
_____
|
_____
|
|
Tax on exceptional items
|
26
|
3
|
|
Exceptional tax
|
-
|
26
|
|
|
_____
|
_____
|
|
Tax (note 6)
|
26
|
29
|
|
|
_____
|
_____
|
|
Costs of ceasing operations in Russia
On 27 June 2022, the Group announced it was 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 presented as exceptional due to the nature
of the war in Ukraine which has driven the Group's
response.
Commercial litigation and disputes
In both 2022 and 2021 relates to expected costs from commercial
litigation and disputes. Costs can include awards made against the
Group, proposed or agreed settlements, legal costs and interest,
and are therefore subject to many uncertainties inherent in
litigation. The costs in 2022 and 2021 primarily relate to the
EMEAA and Americas regions, respectively. These costs are presented
as exceptional reflecting (i) quantum and (ii) the nature of the
disputes.
Share of losses of associate
As part of an agreed settlement of the 2021 Americas commercial
dispute in relation to the Barclay associate, in 2022 the Group was
allocated expenses in excess of its actual percentage share which
directly reduced the Group's current interest in the associate.
This resulted in $60m of additional expenses being allocated to the
Group in 2022, with a current tax benefit of $15m and, applying
equity accounting to this additional share of expenses, reduced the
Group's investment to $nil. In addition, a liability of $18m was
recognised, reflecting an unavoidable obligation to repay this
amount in certain circumstances. Should the hotel property increase
in value in future periods, such revaluation gains will be
attributed first to the Group up to the amount of the additional
share of expenses; this would be reflected first as a reduction of
the liability and subsequently as a trigger for impairment reversal
of the associate. This charge is presented as exceptional by reason
of its size and the nature of the agreement.
Impairment reversals and charges
Impairment reversals relate to charges which were recorded in 2020
and are presented as exceptional for consistency with those
charges.
The management agreement impairment reversal of $12m relates to the
Kimpton management agreement portfolio in the Americas region and
arises due to strong trading conditions in 2022 and significantly
improved industry forecasts.
The $10m charge on property, plant and equipment was recognised in
relation to one hotel in the EMEAA region. A further $2m impairment
of right-of-use assets was recognised in relation to the same
hotel. The charge arises due to recent cost inflation which is
impacting operating costs but also the projected variable rent
payments. The charge is presented as exceptional due to size and
the nature of events in 2022 which have resulted in high levels of
inflation.
Impairment reversals of $3m on property, plant and equipment were
recognised in relation to the UK portfolio (EMEAA region) and arose
as a result of the renegotiation of contractual agreements
enhancing the cash-generating potential of those
hotels.
Right-of-use asset impairment reversals of $2m were recognised in
relation to one hotel in the EMEAA region and arose due to improved
recovery forecasts as well as strong 2022 trading.
The $2m impairment reversal of associates relates to an associate
in the Americas region and arises due to strong trading conditions
in 2022 and significantly improved industry forecasts.
The $5m contract asset impairment relates to key money pertaining
to managed and franchised hotels in Russia. The impairment is
treated as exceptional for consistency with the costs of ceasing
operations described above.
Contract assets impairment reversal of $3m arises in the EMEAA
region as a result of the improved financial position of owners or
performance of the related hotels.
|
6.
|
Tax
|
||||||
|
|
2022
|
2021
|
||||
|
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
Profit
$m
|
Tax
$m
|
Taxrate
|
|
|
|
|
|
|
|
|
|
Before
foreign exchange gains, exceptional items and System
Fund
|
730
|
(194)
|
27%
|
401
|
(125)
|
31%
|
|
Foreign
exchange gains
|
10
|
4
|
|
-
|
-
|
|
|
System
Fund
|
(105)
|
-
|
|
(11)
|
-
|
|
|
Exceptional
items (note 5)
|
(95)
|
26
|
|
(29)
|
29
|
|
|
|
_____
|
_____
|
|
_____
|
_____
|
|
|
|
540
|
(164)
|
|
361
|
(96)
|
|
|
|
_____
|
_____
|
|
_____
|
_____
|
|
|
|
|
|
|
|
|
|
|
Analysed as:
|
|
|
|
|
|
|
|
Current tax
|
|
(176)
|
|
|
(143)
|
|
|
Deferred tax
|
|
12
|
|
|
47
|
|
|
|
|
_____
|
|
|
_____
|
|
|
|
|
(164)
|
|
|
(96)
|
|
|
|
|
_____
|
|
|
_____
|
|
|
|
|
|
|
|
|
|
|
Further analysed as:
|
|
|
|
|
|
|
|
UK tax
|
|
(3)
|
|
|
28
|
|
|
Foreign tax
|
|
(161)
|
|
|
(124)
|
|
|
|
|
_____
|
|
|
_____
|
|
|
|
|
(164)
|
|
|
(96)
|
|
|
|
|
_____
|
|
|
_____
|
|
|
The deferred tax asset has decreased from $147m to $126m in the
year and comprises $109m (31 December 2021: $127m) in the UK
and $17m (31 December 2021: $20m) in respect of other
territories. The deferred tax asset has been recognised based
upon forecasts consistent with those used in the going concern
assessment.
|
7.
|
Earnings per ordinary share
|
||
|
|
2022
|
2021
|
|
Basic earnings per ordinary share
|
|
|
|
Profit available for equity holders ($m)
|
375
|
266
|
|
Basic weighted average number of ordinary shares
(millions)
|
181
|
183
|
|
Basic earnings per ordinary share (cents)
|
207.2
|
145.4
|
|
|
_____
|
_____
|
|
|
|
|
|
Diluted earnings per ordinary share
|
|
|
|
Profit available for equity holders ($m)
|
375
|
266
|
|
Diluted weighted average number of ordinary shares
(millions)
|
182
|
184
|
|
Diluted earnings per ordinary share (cents)
|
206.0
|
144.6
|
|
|
_____
|
_____
|
|
|
|
|
|
|
|
|
|
Diluted weighted average number of ordinary shares is calculated
as:
|
||
|
|
2022
millions
|
2021
millions
|
|
Basic weighted average number of ordinary shares
|
181
|
183
|
|
Dilutive potential ordinary shares
|
1
|
1
|
|
|
______
|
______
|
|
|
182
|
184
|
|
|
_____
|
_____
|
8.
|
Dividends
|
||||
|
|
2022
|
2021
|
||
|
|
cents per share
|
$m
|
cents per share
|
$m
|
|
Paid during the year:
|
|
|
|
|
|
Final (declared for previous year)
|
85.9
|
154
|
-
|
-
|
|
Interim
|
43.9
|
79
|
-
|
-
|
|
|
_____
|
_____
|
_____
|
_____
|
|
|
129.8
|
233
|
-
|
-
|
|
|
_____
|
_____
|
_____
|
_____
|
|
|
|
|
|
|
|
The
final dividend in respect of 2022 of 94.5¢ per ordinary share
(amounting to $165m) is proposed for approval at the AGM on 5 May
2023.
|
9.
|
Reconciliation of profit for the year to cash flow from
operations
|
||
|
|
2022
|
2021
|
|
|
$m
|
$m
|
|
|
|
|
|
Profit for the year
|
376
|
265
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
Net
financial expenses
|
96
|
139
|
|
Fair
value gains on contingent purchase consideration
|
(8)
|
(6)
|
|
Income
tax charge
|
164
|
96
|
|
|
|
|
|
Operating
profit adjustments:
|
|
|
|
Impairment
loss on financial assets
|
5
|
-
|
|
Other
net impairment (reversals)/charges
|
(5)
|
4
|
|
Other
operating exceptional items
|
100
|
25
|
|
Depreciation
and amortisation
|
68
|
98
|
|
|
_____
|
_____
|
|
|
168
|
127
|
|
|
|
|
|
Contract
assets deduction in revenue
|
32
|
35
|
|
Share-based
payments cost
|
30
|
28
|
|
Share
of (profits)/losses of associates (before
exceptional
items)
|
(1)
|
8
|
|
|
_____
|
_____
|
|
|
61
|
71
|
|
|
|
|
|
System
Fund adjustments:
|
|
|
|
Depreciation
and amortisation
|
86
|
94
|
|
Impairment
loss/(reversal) on financial assets
|
7
|
(6)
|
|
Other
impairment reversals
|
-
|
(3)
|
|
Share-based
payments cost
|
16
|
13
|
|
Share
of losses of associates
|
1
|
2
|
|
|
_____
|
_____
|
|
|
110
|
100
|
|
|
|
|
|
Working
capital and other adjustments:
|
|
|
|
Increase
in deferred revenue
|
108
|
39
|
|
Changes
in working capital
|
(11)
|
79
|
|
Other
adjustments
|
4
|
(8)
|
|
|
_____
|
_____
|
|
|
101
|
110
|
|
|
|
|
|
Cash
flows relating to exceptional items
|
(43)
|
(12)
|
|
Contract
acquisition costs, net of repayments
|
(64)
|
(42)
|
|
|
_____
|
_____
|
|
Total
adjustments
|
585
|
583
|
|
|
_____
|
_____
|
|
Cash flow from operations
|
961
|
848
|
|
|
_____
|
_____
|
10.
|
Net debt
|
||
|
|
2022
|
2021
|
|
|
$m
|
$m
|
|
|
|
|
|
Cash and cash equivalents
|
976
|
1,450
|
|
Loans and other borrowings - current
|
(55)
|
(292)
|
|
Loans and other borrowings - non-current
|
(2,341)
|
(2,553)
|
|
Lease liabilities - current
|
(26)
|
(35)
|
|
Lease liabilities - non-current
|
(401)
|
(384)
|
|
Derivative financial instruments hedging debt values
|
(4)
|
(67)
|
|
|
_____
|
_____
|
|
Net debt*
|
(1,851)
|
(1,881)
|
|
|
_____
|
_____
|
|
* See
the Use of key performance measures and Non-GAAP measures'
section.
|
||
|
In the Group statement of cash flows, cash and cash equivalents is
presented net of $55m bank overdrafts (31 December 2021: $59m).
Cash and cash equivalents includes $47m (31 December 2021: $86m)
with restrictions on use.
|
|
Revolving Credit Facility
In April 2022, the Group's $1,275m revolving syndicated bank
facility and $75m revolving bilateral facility were refinanced with
a $1,350m Revolving Credit Facility ('RCF'). The facility was
undrawn at 31 December 2022.
The new RCF 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.
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 $400m liquidity covenant,
which was previously applicable at 30 June and 31 December 2022
test dates, will no longer apply.
|
||
|
|
2022
|
2021*
|
|
|
|
|
|
Covenant EBITDA ($m)
|
896
|
601
|
|
Covenant net debt ($m)
|
1,898
|
1,801
|
|
Covenant interest payable ($m)
|
109
|
133
|
|
Leverage
|
2.12
|
3.00
|
|
Interest cover
|
8.22
|
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 has
been eliminated under the new facility.
|
11.
|
Movement in net debt
|
||
|
|
2022
|
2021
|
|
|
$m
|
$m
|
|
|
|
|
|
Net decrease in cash and cash equivalents, net of
overdrafts
|
(393)
|
(236)
|
|
Add back financing cash flows in respect of other components of net
debt:
|
|
|
|
Principal element of lease payments
|
36
|
32
|
|
Repayment of £600m commercial paper
|
-
|
828
|
|
Repayment of long-term bonds
|
209
|
-
|
|
|
||
|
|
_____
|
_____
|
|
|
245
|
860
|
|
|
_____
|
_____
|
|
(Increase)/decrease in net debt arising from cash
flows
|
(148)
|
624
|
|
|
|
|
|
Other movements:
|
|
|
|
Lease liabilities
|
(48)
|
(7)
|
|
Increase in accrued interest
|
(1)
|
(1)
|
|
Disposals
|
-
|
3
|
|
Exchange and other adjustments
|
227
|
29
|
|
|
_____
|
_____
|
|
|
178
|
24
|
|
|
_____
|
_____
|
|
Decrease in net debt
|
30
|
648
|
|
|
|
|
|
Net debt at beginning of the year
|
(1,881)
|
(2,529)
|
|
|
_____
|
_____
|
|
Net debt at end of the year
|
(1,851)
|
(1,881)
|
|
|
_____
|
_____
|
|
|
12.
|
Equity
|
|
On 9 August 2022, the Company announced a $500m return of funds via
a share repurchase programme. In the year ended 31 December 2022,
9.1m shares were repurchased for total consideration of $482m
including $2m transaction costs, 4.5m are held as treasury shares
and 4.6m were cancelled. A liability of $29m, reflecting
outstanding amounts payable under the repurchase plan and
associated transaction costs, is recognised within current
other payables. The share repurchase programme was completed on 31
January 2023.
In February 2023, the Board approved a further $750m share buyback
programme.
|
|
|
InterContinental Hotels Group PLC
|
|
|
(Registrant)
|
|
|
|
|
By:
|
/s/ C. Lindsay
|
|
Name:
|
C.
LINDSAY
|
|
Title:
|
ASSISTANT
COMPANY SECRETARY
|
|
|
|
|
Date:
|
21
February 2023
|
|
|
|