|
Financial summaryº
|
2010
|
2009
|
% Change YoY
|
|
|
Actual
|
CER²
|
|||
|
Revenue
|
$1,628m
|
$1,538m
|
6%
|
6%
|
|
Operating profit
|
$444m
|
$363m
|
22%
|
22%
|
|
Total adjusted EPS
|
98.6¢
|
102.8¢
|
(4)%
|
|
|
Total basic EPS¹
|
101.7¢
|
74.7¢
|
36%
|
|
|
Total dividend per share
|
48.0¢
|
41.4¢
|
16%
|
|
|
Net debt
|
$743m
|
$1,092m³
|
||
|
Andrew Cosslett, Chief Executive of InterContinental Hotels Group PLC, said:
|
|
"2010 was an excellent year for IHG. After a slow start to the year, the industry staged the sharpest recovery in its history, exceeding all expectations. By focusing on our brands and using our scale, we delivered 6% growth in revenue per available room (RevPAR). We signed more rooms into our pipeline than in 2009 and despite the planned exceptional number of removals to drive up quality, we grew the number of rooms in our system, led by a 12% increase in China.
"The $1bn Holiday Inn relaunch is almost complete, delivering RevPAR outperformance and improved guest satisfaction. We are now working with our hotel owners to refresh Crowne Plaza, already the fourth largest upscale hotel brand in the world, and one with great future potential.
"Our focus on efficiency has increased fee-based margins 1.1 percentage points. In line with our asset light strategy we have started the initial marketing for sale of the InterContinental New York Barclay today.
"The 21% growth in the final dividend reflects our confidence in IHG's prospects. Our priority is to increase market share and improve margins in an industry set for strong growth over the next few years."
|
|
Driving Market Share
|
||
|
•
|
Total gross revenue* from hotels in IHG's system of $18.7bn, up 11%.
|
|
|
•
|
2010 global RevPAR growth of 6.2%, with 8.0% in the fourth quarter.
|
|
|
•
|
Total system size of 647,161 rooms (4,437 hotels), up 0.1% year on year.
|
|
|
-
|
35,744 rooms (259 hotels) added, with 35,262 rooms (260 hotels) removed.
|
|
|
-
|
Signings of 55,598 rooms (319 hotels), up on 2009 levels in all regions. Total pipeline of 204,859 rooms (1,275 hotels); half outside the Americas; 75,000 rooms currently under construction.
|
|
|
-
|
2011 net system growth is expected to be modest as remaining Holiday Inn relaunch exits are completed.
|
|
|
-
|
Post 2011, robust pipeline should drive medium term net system growth of 3% - 5% per annum.
|
|
|
•
|
Holiday Inn relaunch is substantially complete with refreshed hotels performing strongly.
|
|
|
-
|
3,002 hotels now operating under the new standards (91% of the estate). RevPAR growth for hotels relaunched for more than one year was c.6% points higher than non-relaunched hotels in the US and c.5% points higher globally.
|
|
|
•
|
Strong system delivery.
|
|
|
-
|
Record enrolments in Priority Club Rewards (PCR) took total membership to 56m (2009: 48m).
|
|
|
-
|
68% of rooms revenue delivered through IHG's Channels or by PCR members direct to hotel (2009: 68%).
|
|
|
Growing Margins
|
||
|
•
|
Continued focus on costs.
|
|
|
-
|
Regional and central costs broadly in line with 2009 excluding the impact of performance based incentives.
|
|
|
•
|
Sustainable efficiencies drive fee-based margins* up 1.1%pts to 35.7%.
|
|
|
-
|
At constant currency, and reflecting the current trading outlook, total 2011 regional and central costs expected to be in the region of $250m to $260m compared to $258m in 2010.
|
|
|
Current trading update
|
||||
|
•
|
January global RevPAR up 8.4%. Americas 8.2%; EMEA 7.0%; and Asia Pacific 10.9%.
|
|||
|
•
|
$10m liquidated damages receipt in Americas managed revenue and operating profit in first quarter 2011.
|
|||
|
•
|
Initial estimate of impact on 2011 from unrest in Egypt of $3m.
|
|||
|
º All figures are before exceptional items unless otherwise noted. See appendices 3 and 4 for analysis of financial headlines
|
||||
|
¹ After exceptional items
|
² CER = constant exchange rates
|
³Restated for a change in presentation
|
* See appendix 6 for definition
|
|
|
Regional Highlights
|
||||
|
Americas - strong brands drive new deals
|
||||
|
RevPAR increased 4.9%; 7.7% in the fourth quarter when rate was up 1.4%. US RevPAR was up 4.3% in 2010, with 7.5% growth in the fourth quarter. 2010 RevPAR grew 8.1% at InterContinental New York Barclay.
Revenue increased 5% (4% at CER) to $807m and operating profit increased 28% (27% at CER) to $369m. After adjusting for the owned hotel disposals and the charge for priority guarantee shortfalls in 2009, revenue was up 7% and operating profit up 10%. Franchise royalties drove much of this growth, up 11%. This was offset by a 1% reduction in total system size due to exits associated with the Holiday Inn relaunch and a $10m increase in regional costs, including $4m in relation to our self-insured healthcare benefit plan.
During 2010 the InterContinental Times Square and the first Staybridge Suites opened in New York, taking IHG's room count in the city to 6,570. We re-entered the important Hawaii market with the Holiday Inn Beachcomber Resort in Waikiki Beach and formed an InterContinental Alliance with Las Vegas Sands Corp to bring the 6,874 all suite Venetian and Palazzo resorts into the system. The wider benefits of the Holiday Inn relaunch were clear, with full service Holiday Inn signings up on 2009.
We have formed a strategic relationship with Summit Hotel Properties, Inc. (Summit), a US hotel real estate investment trust focused on premium-branded select service hotels in the upscale and midscale without food and beverage sectors. In connection with Summit's initial public offering, which closed on 14 February 2011, IHG purchased 1,274,000 shares of Summit common stock, representing approximately 4.7%, for a purchase price of $11.6m. Of Summit's 65 properties seven already carry IHG's brands, and under a sourcing agreement we have also entered into with them, Summit will provide IHG an exclusive right for a period of five years, of first offer to franchise or manage any unbranded hotel bought by them which they want to brand.
|
||||
|
EMEA - increase in signings
|
|
RevPAR increased 6.1%, with 6.5% growth in the fourth quarter. Germany was the strongest of our major markets with RevPAR growth of 18.4% in 2010. Mixed trading conditions in the Middle East resulted in RevPAR down 1.0% for the year. 2010 RevPAR grew 15.0% at InterContinental London Park Lane and 11.5% at InterContinental Paris Le Grand.
Revenue increased 4% (8% at CER) to $414m and operating profit decreased 2% (2% growth at CER) to $125m. Excluding the impact of a $3m liquidated damages receipt in 2009, revenue was up 5% (8% at CER) and operating profit up 1% (5% at CER). Much of this was driven by the owned and leased hotels, where positive RevPAR combined with strong cost control drove good profit growth. Managed profits were down by $3m to $62m, due to a combination of the unfavourable trading environment across much of the Middle East and a $3m provision for total estimated net future cash outflows expected under a guarantee in relation to one hotel. Franchised profits declined $1m to $59m, but excluding the $3m liquidated damages receipt in 2009 and at constant currency, profits increased 7% driven by RevPAR growth of 7.6%.
We signed 58 new deals in the year, up 11 on 2009. These included eight Hotel Indigo contracts in key locations such as Lisbon, Madrid and Berlin. We also signed six Crowne Plaza hotels including the strategic markets of Istanbul, St. Petersburg and Amsterdam. Signings across Europe as a whole were very strong, particularly in Germany and France where we signed nine and six hotels respectively. Key openings included the Hotel Indigo Tower Hill, London, Staybridge Suites St. Petersburg and Holiday Inn Berlin International Airport.
|
|
Asia Pacific - strong profit growth
|
|
RevPAR increased 12.4%, with 11.5% growth in the fourth quarter. Greater China was our strongest market with RevPAR up 25.8% for the year, including 55.9% in Shanghai which was boosted by the World Expo which took place between May and October. Asia Australasia RevPAR grew 5.6% and at InterContinental Hong Kong RevPAR was up 15.3%.
Revenue increased 24% (20% at CER) to $303m and operating profit increased 71% (67% at CER) to $89m. This was predominantly driven by RevPAR growth; the contribution from new managed rooms (2010: 9% growth; 2009: 10% growth) and a $4m benefit to managed operating profit due to the collection of bad debts which had previously been provided for.
We continue to build on our leading position in Greater China with 48,527 rooms (145 hotels) open (a 12% increase year on year) and 50,236 rooms (147 hotels) in the pipeline. We opened 24 hotels in 17 cities across China, including Asia Pacific's first Hotel Indigo on the Bund and the InterContinental at the Expo site, both in Shanghai. In Asia Australasia, we signed six hotels in India, taking our pipeline there to 10,073 rooms. In Thailand we signed two new Holiday Inn resorts in the prime beachfront locations of Cam Ranh Bay and Phu Quoc, and we signed the Crowne Plaza Lumpini Park in Bangkok which opened in December.
|
|
Interest, tax and cash flow
|
||||||||||
|
The interest charge for the period increased $8m to $62m as the impact of lower levels of average net debt was offset by a higher average cost of debt following the issuance of a seven year £250m bond in 2009.
The effective tax rate for 2010 is 26% (2009: 5%). The 2011 tax rate is expected to be in the high 20s.
Free cash flow of $432m (2009: $377m) due to excellent profit conversion and tight control over maintenance capital expenditure.
|
||||||||||
|
Appendix 1: RevPAR Movement Summary
|
||||||||||
|
January 2011
|
Full Year 2010
|
Q4'10
|
||||||||
|
RevPAR
|
Rate
|
Occ.
|
RevPAR
|
Rate
|
Occ.
|
RevPAR
|
Rate
|
Occ.
|
||
|
Group
|
8.4%
|
2.0%
|
3.1%pts
|
6.2%
|
(0.2)%
|
3.8%pts
|
8.0%
|
2.4%
|
3.1%pts
|
|
|
Americas
|
8.2%
|
1.2%
|
3.3%pts
|
4.9%
|
(1.0)%
|
3.4%pts
|
7.7%
|
1.4%
|
3.3%pts
|
|
|
EMEA
|
7.0%
|
1.7%
|
2.7%pts
|
6.1%
|
0.5%
|
3.6%pts
|
6.5%
|
2.5%
|
2.5%pts
|
|
|
Asia Pacific
|
10.9%
|
6.5%
|
2.4%pts
|
12.4%
|
2.5%
|
6.0%pts
|
11.5%
|
7.0%
|
2.9%pts
|
|
|
Appendix 2: Full Year System & Pipeline Summary (rooms)
|
|||||||
|
System
|
Pipeline
|
||||||
|
Openings
|
Removals
|
Net
|
Total
|
YoY%
|
Signings
|
Total
|
|
|
Group
|
35,744
|
(35,262)
|
482
|
647,161
|
-
|
55,598
|
204,859
|
|
Americas
|
20,980
|
(26,959)
|
(5,979)
|
439,375
|
(1)%
|
30,223
|
102,509
|
|
EMEA
|
5,767
|
(5,211)
|
556
|
120,852
|
-
|
9,303
|
31,435
|
|
Asia Pacific
|
8,997
|
(3,092)
|
5,905
|
86,934
|
7%
|
16,072
|
70,915
|
|
Appendix 3: Fourth quarter financial headlines
|
||||||||||
|
Operating Profit $m
|
Total
|
Americas
|
EMEA
|
Asia Pacific
|
Central
|
|||||
|
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
|
|
Franchised
|
108
|
98
|
91
|
83
|
14
|
14
|
3
|
1
|
-
|
-
|
|
Managed
|
46
|
7
|
6
|
(19)
|
17
|
17
|
23
|
9
|
-
|
-
|
|
Owned & leased
|
32
|
29
|
5
|
4
|
12
|
11
|
15
|
14
|
-
|
-
|
|
Regional overheads
|
(35)
|
(26)
|
(17)
|
(11)
|
(11)
|
(9)
|
(7)
|
(6)
|
-
|
-
|
|
Operating profit pre central overheads
|
151
|
108
|
85
|
57
|
32
|
33
|
34
|
18
|
-
|
-
|
|
Central overheads
|
(41)
|
(48)
|
-
|
-
|
-
|
-
|
-
|
-
|
(41)
|
(48)
|
|
Group Operating profit
|
110
|
60
|
85
|
57
|
32
|
33
|
34
|
18
|
(41)
|
(48)
|
|
Appendix 4: Full year financial headlines
|
||||||||||
|
Operating Profit $m
|
Total
|
Americas
|
EMEA
|
Asia Pacific
|
Central
|
|||||
|
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
|
|
Franchised
|
458
|
429
|
392
|
364
|
59
|
60
|
7
|
5
|
-
|
-
|
|
Managed
|
156
|
69
|
21
|
(40)
|
62
|
65
|
73
|
44
|
-
|
-
|
|
Owned & leased
|
88
|
74
|
13
|
11
|
40
|
33
|
35
|
30
|
-
|
-
|
|
Regional overheads
|
(119)
|
(105)
|
(57)
|
(47)
|
(36)
|
(31)
|
(26)
|
(27)
|
-
|
-
|
|
Operating profit pre central overheads
|
583
|
467
|
369
|
288
|
125
|
127
|
89
|
52
|
-
|
-
|
|
Central overheads
|
(139)
|
(104)
|
-
|
-
|
-
|
-
|
-
|
-
|
(139)
|
(104)
|
|
Group Operating profit
|
444
|
363
|
369
|
288
|
125
|
127
|
89
|
52
|
(139)
|
(104)
|
|
Appendix 5: Constant exchange rate (CER) operating profit movement before exceptional items
|
|||||||||||
|
Total***
|
Americas
|
EMEA
|
Asia Pacific
|
||||||||
|
Actual currency*
|
CER**
|
Actual currency*
|
CER**
|
Actual currency*
|
CER**
|
Actual currency*
|
CER**
|
||||
|
Growth/ (decline)
|
22%
|
22%
|
28%
|
27%
|
(2)%
|
2%
|
71%
|
67%
|
|||
|
Exchange rates:
|
|||||||||||
|
GBP:USD
|
EUR:USD
|
* US dollar actual currency
|
|||||||||
|
2010
|
0.65
|
0.76
|
** Translated at constant 2009 exchange rates
|
||||||||
|
2009
|
0.64
|
0.72
|
*** After central overheads
|
||||||||
|
Appendix 6: Definitions
|
|
Total gross revenue: total room revenue from franchised hotels and total hotel revenue from managed, owned and leased hotels. It is not revenue attributable to IHG, as it is derived mainly from hotels owned by third parties. The metric is highlighted as an indicator of the scale and reach of IHG's brands.
Fee based margins: adjusted for owned and leased hotels, managed leases, individually significant liquidated damages payments, HPT guarantee payments and excludes the benefit in 2009 of non-sustainable incentive compensation cost savings.
|
|
Appendix 7: Investor Information for 2010 final dividend
|
|||
|
Ex-dividend date:
|
23 March 2011
|
Record date:
|
25 March 2011
|
|
Payment date:
|
3 June 2011
|
Dividend payment:
|
Ordinary shares = 22.0 pence per share
|
|
ADRs = 35.2 cents per ADR
|
|||
|
For further information, please contact:
|
|||
|
Investor Relations (Heather Wood; Catherine Dolton):
|
+44 (0)1895 512176
|
||
|
Media Affairs (Leslie McGibbon, Giles Deards):
|
+44 (0) 7808 094 471
|
+44 (0) 7753 949301
|
|
|
High resolution images to accompany this announcement are available for the media to download free of charge from www.vismedia.co.uk. This includes profile shots of the key executives.
|
|||
|
Presentation for Analysts and Shareholders:
A presentation with Andrew Cosslett (Chief Executive) and Richard Solomons (Chief Financial Officer and Head of Commercial Development) will commence at 9.30am (London time) on 15 February at Bank of America Merrill Lynch Financial Centre, 2 King Edward Street, London, EC1A 1HQ. There will be an opportunity to ask questions. The presentation will conclude at approximately 10.30am (London time).
There will be a live audio webcast of the results presentation on the web address www.ihg.com/prelims11. The archived webcast of the presentation is expected to be on this website later on the day of the results and will remain on it for the foreseeable future. There will also be a live dial-in facility:
|
|||
|
International dial-in:
|
+44 (0)20 7138 0816
|
||
|
Passcode:
|
8564080
|
||
|
US conference call and Q&A:
There will also be a conference call, primarily for US investors and analysts, at 9.00am (Eastern Standard Time) on 15 February with Andrew Cosslett (Chief Executive) and Richard Solomons (Chief Financial Officer and Head of Commercial Development). There will be an opportunity to ask questions.
|
|||
|
International dial-in:
|
+44 (0)20 7108 6370
|
||
|
Standard US dial-in:
|
+ 1 517 345 9004
|
||
|
US Toll Free:
|
866 692 5726
|
||
|
Conference ID:
|
HOTEL
|
||
|
A recording of the conference call will also be available for 7 days. To access this please dial the relevant number below and use the access number 2524#.
|
|||
|
International dial-in:
|
+44 (0)20 7108 6225
|
||
|
Standard US dial-in:
|
+1 203 369 4702
|
||
|
US Toll Free:
|
866 850 6506
|
||
|
Website:
The full release and supplementary data will be available on our website from 7.00 am (London time) on 15 February. The web address is www.ihg.com/prelims11. To watch a video of Richard Solomons reviewing our results visit our YouTube channel at www.youtube.com/ihgplc.
|
|||
|
Notes to Editors:
InterContinental Hotels Group (IHG) [LON:IHG, NYSE:IHG (ADRs)] is the world's largest hotel group by number of rooms. IHG franchises, leases, manages or owns, through various subsidiaries, over 4,400 hotels and more than 640,000 guest rooms in 100 countries and territories around the world. The Group owns a portfolio of well recognised and respected hotel brands including InterContinental® Hotels & Resorts, Hotel Indigo®, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express®, Staybridge Suites® and Candlewood Suites® and also manages the world's largest hotel loyalty programme, Priority Club® Rewards with 56 million members worldwide.
IHG has almost 1,300 hotels in its development pipeline, which is expected to create 160,000 jobs worldwide over the next few years.
InterContinental Hotels Group PLC is the Group's holding company and is incorporated in Great Britain and registered in England and Wales.
IHG offers information and online reservations for all its hotel brands at www.ihg.com and information for the Priority Club Rewards programme at www.priorityclub.com. For our latest news visit www.ihg.com/media, Twitter www.twitter.com/ihgplc or YouTube www.youtube.com/ihgplc.
|
|||
|
Cautionary note regarding forward-looking statements:
This announcement contains certain forward-looking statements as defined under US law (Section 21E of the Securities Exchange Act of 1934). These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements often use words such as 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe' or other words of similar meaning. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty. There are a number of factors that could cause actual results and developments to differ materially from those expressed in or implied by, such forward-looking statements. Factors that could affect the business and the financial results are described in 'Risk Factors' in the InterContinental Hotels Group PLC Annual report on Form 20-F filed with the United States Securities and Exchange Commission.
|
|||
|
12 months ended 31 December
|
||||
|
2010
|
2009
|
%
|
||
|
Group results
|
$m
|
$m
|
change
|
|
|
Revenue
|
||||
|
Americas
|
807
|
772
|
4.5
|
|
|
EMEA
|
414
|
397
|
4.3
|
|
|
Asia Pacific
|
303
|
245
|
23.7
|
|
|
Central
|
104
|
124
|
(16.1)
|
|
|
____
|
____
|
_____
|
||
|
1,628
|
1,538
|
5.9
|
||
|
____
|
____
|
_____
|
||
|
Operating profit
|
||||
|
Americas
|
369
|
288
|
28.1
|
|
|
EMEA
|
125
|
127
|
(1.6)
|
|
|
Asia Pacific
|
89
|
52
|
71.2
|
|
|
Central
|
(139)
|
(104)
|
(33.7)
|
|
|
____
|
____
|
_____
|
||
|
Operating profit before exceptional items
|
444
|
363
|
22.3
|
|
|
Exceptional operating items
|
15
|
(373)
|
n/m
|
|
|
___
|
___
|
____
|
||
|
459
|
(10)
|
n/m
|
||
|
Net financial expenses
|
(62)
|
(54)
|
(14.8)
|
|
|
___
|
___
|
____
|
||
|
Profit/(loss) before tax
|
397
|
(64)
|
n/m
|
|
|
___
|
___
|
____
|
||
|
Earnings per ordinary share
|
||||
|
Basic
|
101.7¢
|
74.7¢
|
36.1
|
|
|
Adjusted
|
98.6¢
|
102.8¢
|
(4.1)
|
|
|
12 months ended 31 December
|
|||
|
2010
|
2009
|
%
|
|
|
Total gross revenue
|
$bn
|
$bn
|
change
|
|
InterContinental
|
4.2
|
3.8
|
10.5
|
|
Crowne Plaza
|
3.5
|
3.0
|
16.7
|
|
Holiday Inn
|
5.8
|
5.4
|
7.4
|
|
Holiday Inn Express
|
4.0
|
3.6
|
11.1
|
|
Staybridge Suites
|
0.5
|
0.4
|
25.0
|
|
Candlewood Suites
|
0.4
|
0.3
|
33.3
|
|
Other brands
|
0.3
|
0.3
|
-
|
|
____
|
____
|
____
|
|
|
Total
|
18.7
|
16.8
|
11.3
|
|
____
|
____
|
____
|
|
|
Hotels
|
Rooms
|
||||
|
Global hotel and room count
at 31 December
|
2010
|
Change
over 2009
|
2010
|
Change
over 2009
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
171
|
5
|
58,429
|
2,308
|
|
|
Crowne Plaza
|
388
|
22
|
106,155
|
5,161
|
|
|
Holiday Inn
|
1,241
|
(78)
|
227,225
|
(13,343)
|
|
|
Holiday Inn Express
|
2,075
|
6
|
191,228
|
3,221
|
|
|
Staybridge Suites
|
188
|
6
|
20,762
|
877
|
|
|
Candlewood Suites
|
288
|
34
|
28,253
|
2,970
|
|
|
Hotel Indigo
|
38
|
5
|
4,548
|
518
|
|
|
Holiday Inn Club Vacations
|
6
|
-
|
2,892
|
-
|
|
|
Other
|
42
|
(1)
|
7,669
|
(1,230)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
4,437
|
(1)
|
647,161
|
482
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
3,783
|
(16)
|
479,320
|
(4,221)
|
|
|
Managed
|
639
|
17
|
162,711
|
5,424
|
|
|
Owned and leased
|
15
|
(2)
|
5,130
|
(721)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
4,437
|
(1)
|
647,161
|
482
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
||||
|
Global pipeline
at 31 December
|
2010
|
Change
over 2009
|
2010
|
Change
over 2009
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
60
|
(3)
|
19,374
|
(799)
|
|
|
Crowne Plaza
|
123
|
(6)
|
38,994
|
439
|
|
|
Holiday Inn
|
313
|
(25)
|
57,505
|
(1,503)
|
|
|
Holiday Inn Express
|
494
|
(69)
|
53,219
|
(4,537)
|
|
|
Staybridge Suites
|
101
|
(22)
|
10,760
|
(2,600)
|
|
|
Candlewood Suites
|
120
|
(49)
|
10,506
|
(4,345)
|
|
|
Hotel Indigo
|
62
|
9
|
7,627
|
967
|
|
|
Other
|
2
|
2
|
6,874
|
6,874
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
1,275
|
(163)
|
204,859
|
(5,504)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
970
|
(188)
|
113,940
|
(12,446)
|
|
|
Managed
|
305
|
25
|
90,919
|
6,942
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
1,275
|
(163)
|
204,859
|
(5,504)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
|||
|
Global pipeline signings
at 31 December
|
2010
|
Change
over 2009
|
2010
|
Change
over 2009
|
|
Total
|
319
|
(26)
|
55,598
|
2,707
|
|
____
|
____
|
_____
|
______
|
|
|
12 months ended 31 December
|
|||||
|
2010
|
2009
|
%
|
|||
|
Americas Results
|
$m
|
$m
|
change
|
||
|
Revenue
|
|||||
|
Franchised
|
465
|
437
|
6.4
|
||
|
Managed
|
119
|
110
|
8.2
|
||
|
Owned and leased
|
223
|
225
|
(0.9)
|
||
|
____
|
____
|
_____
|
|||
|
Total
|
807
|
772
|
4.5
|
||
|
____
|
____
|
_____
|
|||
|
Operating profit before exceptional items
|
|||||
|
Franchised
|
392
|
364
|
7.7
|
||
|
Managed
|
21
|
(40)
|
152.5
|
||
|
Owned and leased
|
13
|
11
|
18.2
|
||
|
____
|
____
|
_____
|
|||
|
426
|
335
|
27.2
|
|||
|
Regional overheads
|
(57)
|
(47)
|
(21.3)
|
||
|
____
|
____
|
_____
|
|||
|
Total
|
369
|
288
|
28.1
|
||
|
____
|
____
|
_____
|
|||
|
Americas Comparable RevPAR movement on previous year
|
12 months ended
31 December
2010
|
|
|
Franchised
|
||
|
Crowne Plaza
|
4.5%
|
|
|
Holiday Inn
|
4.1%
|
|
|
Holiday Inn Express
|
4.4%
|
|
|
All brands
|
4.5%
|
|
|
Managed
|
||
|
InterContinental
|
10.2%
|
|
|
Crowne Plaza
|
6.2%
|
|
|
Holiday Inn
|
7.1%
|
|
|
Staybridge Suites
|
6.3%
|
|
|
Candlewood Suites
|
3.7%
|
|
|
All brands
|
7.5%
|
|
|
Owned and leased
|
||
|
InterContinental
|
8.7%
|
|
|
Hotels
|
Rooms
|
||||
|
Americas hotel and room count
at 31 December
|
2010
|
Change
over 2009
|
2010
|
Change
over 2009
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
56
|
1
|
19,120
|
621
|
|
|
Crowne Plaza
|
209
|
7
|
57,073
|
1,383
|
|
|
Holiday Inn
|
812
|
(72)
|
144,683
|
(13,518)
|
|
|
Holiday Inn Express
|
1,847
|
1
|
159,867
|
1,583
|
|
|
Staybridge Suites
|
183
|
5
|
20,014
|
694
|
|
|
Candlewood Suites
|
288
|
34
|
28,253
|
2,970
|
|
|
Hotel Indigo
|
35
|
3
|
4,254
|
288
|
|
|
Holiday Inn Club Vacations
|
6
|
-
|
2,892
|
-
|
|
|
Other brands
|
22
|
-
|
3,219
|
-
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
3,458
|
(21)
|
439,375
|
(5,979)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
3,230
|
(15)
|
392,536
|
(5,468)
|
|
|
Managed
|
219
|
(4)
|
43,848
|
210
|
|
|
Owned and leased
|
9
|
(2)
|
2,991
|
(721)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
3,458
|
(21)
|
439,375
|
(5,979)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
||||
|
Americas pipeline
at 31 December
|
2010
|
Change
over 2009
|
2010
|
Change
over 2009
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
5
|
(1)
|
1,340
|
(700)
|
|
|
Crowne Plaza
|
27
|
(6)
|
5,669
|
(1,293)
|
|
|
Holiday Inn
|
187
|
(29)
|
25,260
|
(2,682)
|
|
|
Holiday Inn Express
|
407
|
(79)
|
37,011
|
(6,427)
|
|
|
Staybridge Suites
|
96
|
(20)
|
10,116
|
(2,392)
|
|
|
Candlewood Suites
|
120
|
(49)
|
10,506
|
(4,345)
|
|
|
Hotel Indigo
|
46
|
(1)
|
5,733
|
(254)
|
|
|
Other
|
2
|
2
|
6,874
|
6,874
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
890
|
(183)
|
102,509
|
(11,219)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
878
|
(185)
|
100,072
|
(11,036)
|
|
|
Managed
|
12
|
2
|
2,437
|
(183)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
890
|
(183)
|
102,509
|
(11,219)
|
|
|
____
|
____
|
______
|
_____
|
||
|
12 months ended 31 December
|
|||||
|
2010
|
2009
|
%
|
|||
|
EMEA results
|
$m
|
$m
|
change
|
||
|
Revenue
|
|||||
|
Franchised
|
81
|
83
|
(2.4)
|
||
|
Managed
|
130
|
119
|
9.2
|
||
|
Owned and leased
|
203
|
195
|
4.1
|
||
|
____
|
____
|
_____
|
|||
|
Total
|
414
|
397
|
4.3
|
||
|
____
|
____
|
_____
|
|||
|
Operating profit before exceptional items
|
|||||
|
Franchised
|
59
|
60
|
(1.7)
|
||
|
Managed
|
62
|
65
|
(4.6)
|
||
|
Owned and leased
|
40
|
33
|
21.2
|
||
|
____
|
____
|
_____
|
|||
|
161
|
158
|
1.9
|
|||
|
Regional overheads
|
(36)
|
(31)
|
(16.1)
|
||
|
____
|
____
|
_____
|
|||
|
Total
|
125
|
127
|
(1.6)
|
||
|
____
|
____
|
_____
|
|||
|
EMEA comparable RevPAR movement on previous year
|
12 months ended
31 December
2010
|
|
|
Franchised
|
||
|
All brands
|
7.6%
|
|
|
Managed
|
||
|
All brands
|
3.3%
|
|
|
Owned and leased
|
||
|
InterContinental
|
11.4%
|
|
|
All ownership types
|
||
|
UK
|
3.8%
|
|
|
Continental Europe
|
10.1%
|
|
|
Middle East
|
(1.0)%
|
|
|
Hotels
|
Rooms
|
||||
|
EMEA hotel and room count
at 31 December
|
2010
|
Change
over 2009
|
2010
|
Change
over 2009
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
64
|
(1)
|
20,111
|
(475)
|
|
|
Crowne Plaza
|
98
|
5
|
22,941
|
784
|
|
|
Holiday Inn
|
325
|
(8)
|
52,945
|
(427)
|
|
|
Holiday Inn Express
|
198
|
1
|
23,706
|
447
|
|
|
Staybridge Suites
|
5
|
1
|
748
|
183
|
|
|
Hotel Indigo
|
2
|
1
|
110
|
46
|
|
|
Other
|
2
|
-
|
291
|
(2)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
694
|
(1)
|
120,852
|
556
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
523
|
3
|
79,950
|
1,734
|
|
|
Managed
|
167
|
(4)
|
39,456
|
(1,178)
|
|
|
Owned and leased
|
4
|
-
|
1,446
|
||
|
____
|
____
|
______
|
_____
|
||
|
Total
|
694
|
(1)
|
120,852
|
556
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
||||
|
EMEA pipeline
at 31 December
|
2010
|
Change
over 2009
|
2010
|
Change
over 2009
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
24
|
1
|
6,469
|
369
|
|
|
Crowne Plaza
|
25
|
1
|
7,599
|
958
|
|
|
Holiday Inn
|
41
|
(4)
|
9,128
|
(1,301)
|
|
|
Holiday Inn Express
|
47
|
(2)
|
6,523
|
(565)
|
|
|
Staybridge Suites
|
5
|
(2)
|
644
|
(208)
|
|
|
Hotel Indigo
|
11
|
7
|
1,072
|
721
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
153
|
1
|
31,435
|
(26)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
90
|
(3)
|
13,542
|
(1,410)
|
|
|
Managed
|
63
|
4
|
17,893
|
1,384
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
153
|
1
|
31,435
|
(26)
|
|
|
____
|
____
|
______
|
_____
|
||
|
12 months ended 31 December
|
|||||
|
2010
|
2009
|
%
|
|||
|
Asia Pacific results
|
$m
|
$m
|
change
|
||
|
Revenue
|
|||||
|
Franchised
|
12
|
11
|
9.1
|
||
|
Managed
|
155
|
105
|
47.6
|
||
|
Owned and leased
|
136
|
129
|
5.4
|
||
|
____
|
____
|
_____
|
|||
|
Total
|
303
|
245
|
23.7
|
||
|
____
|
____
|
_____
|
|||
|
Operating profit before exceptional items
|
|||||
|
Franchised
|
7
|
5
|
40.0
|
||
|
Managed
|
73
|
44
|
65.9
|
||
|
Owned and leased
|
35
|
30
|
16.7
|
||
|
____
|
____
|
_____
|
|||
|
115
|
79
|
45.6
|
|||
|
Regional overheads
|
(26)
|
(27)
|
3.7
|
||
|
____
|
____
|
_____
|
|||
|
Total
|
89
|
52
|
71.2
|
||
|
____
|
____
|
_____
|
|||
|
Asia Pacific comparable RevPAR movement on previous year
|
12 months ended
31 December
2010
|
|
|
Managed - all brands
|
||
|
Asia Pacific
|
13.4%
|
|
|
Greater China
|
26.7%
|
|
|
Owned and leased
|
||
|
InterContinental
|
15.3%
|
|
|
All ownership types
|
||
|
Greater China
|
25.8%
|
|
|
Hotels
|
Rooms
|
||||
|
Asia Pacific hotel and room count
at 31 December
|
2010
|
Change
over 2009
|
2010
|
Change
over 2009
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
51
|
5
|
19,198
|
2,162
|
|
|
Crowne Plaza
|
81
|
10
|
26,141
|
2,994
|
|
|
Holiday Inn
|
104
|
2
|
29,597
|
602
|
|
|
Holiday Inn Express
|
30
|
4
|
7,655
|
1,191
|
|
|
Hotel Indigo
|
1
|
1
|
184
|
184
|
|
|
Other
|
18
|
(1)
|
4,159
|
(1,228)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
285
|
21
|
86,934
|
5,905
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
30
|
(4)
|
6,834
|
(487)
|
|
|
Managed
|
253
|
25
|
79,407
|
6,392
|
|
|
Owned and leased
|
2
|
-
|
693
|
-
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
285
|
21
|
86,934
|
5,905
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
||||
|
Asia Pacific pipeline
at 31 December
|
2010
|
Change
over 2009
|
2010
|
Change
over 2009
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
31
|
(3)
|
11,565
|
(468)
|
|
|
Crowne Plaza
|
71
|
(1)
|
25,726
|
774
|
|
|
Holiday Inn
|
85
|
8
|
23,117
|
2,480
|
|
|
Holiday Inn Express
|
40
|
12
|
9,685
|
2,455
|
|
|
Hotel Indigo
|
5
|
3
|
822
|
500
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
232
|
19
|
70,915
|
5,741
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
2
|
-
|
326
|
-
|
|
|
Managed
|
230
|
19
|
70,589
|
5,741
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
232
|
19
|
70,915
|
5,741
|
|
|
____
|
____
|
______
|
_____
|
||
|
12 months ended 31 December
|
||||
|
2010
|
2009
|
%
|
||
|
Central results
|
$m
|
$m
|
change
|
|
|
Revenue
|
104
|
124
|
(16.1)
|
|
|
Gross central costs
|
(243)
|
(228)
|
(6.6)
|
|
|
____
|
____
|
_____
|
||
|
Net central costs
|
(139)
|
(104)
|
(33.7)
|
|
|
_____
|
____
|
_____
|
||
|
12 months ended 31 December
|
||||
|
2010
|
2009
|
%
|
||
|
System Fund results
|
$m
|
$m
|
change
|
|
|
Assessment fees and contributions received from hotels
|
944
|
875
|
7.9
|
|
|
Proceeds from sale of Priority Club Rewards points
|
106
|
133
|
(20.3)
|
|
|
____
|
____
|
_____
|
||
|
1,050
|
1,008
|
4.2
|
||
|
_____
|
____
|
_____
|
||
|
·
|
proceeds from the disposal of hotels and investments of $135m, including $105m from the sale of the InterContinental Buckhead, Atlanta on 1 July 2010; and
|
|
·
|
capital expenditure of $95m including $23m for the purchase of the InterContinental San Francisco Mark Hopkins ground lease and $16m in relation to Global Technology projects.
|
|
2010
|
2009
|
||
|
Net debt* at 31 December
|
$m
|
$m
|
|
|
Borrowings:
|
|||
|
US Dollar
|
715
|
863
|
|
|
Euro
|
100
|
216
|
|
|
Other
|
6
|
53
|
|
|
Cash
|
(78)
|
(40)
|
|
|
____
|
____
|
||
|
Net debt
|
743
|
1,092
|
|
|
____
|
____
|
||
|
Average debt levels
|
923
|
1,231
|
|
|
____
|
____
|
||
|
2010
|
2009
|
|
|
Facilities at 31 December
|
$m
|
$m
|
|
Committed
|
1,605
|
1,693
|
|
Uncommitted
|
53
|
25
|
|
____
|
____
|
|
|
Total
|
1,658
|
1,718
|
|
____
|
____
|
|
Interest risk profile of gross debt for major currencies
at 31 December
|
2010
%
|
2009
%
|
|
At fixed rates
|
100
|
90
|
|
At variable rates
|
-
|
10
|
|
Year ended 31 December 2010
|
Year ended 31 December 2009
|
||||||
|
Before
exceptional
items
|
Exceptional
items
(note 4)
|
Total
|
Before
exceptional
items
|
Exceptional
items
(note 4)
|
Total
|
||
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||
|
Continuing operations
|
|||||||
|
Revenue (note 3)
|
1,628
|
-
|
1,628
|
1,538
|
-
|
1,538
|
|
|
Cost of sales
|
(753)
|
-
|
(753)
|
(769)
|
(91)
|
(860)
|
|
|
Administrative expenses
|
(331)
|
(13)
|
(344)
|
(303)
|
(83)
|
(386)
|
|
|
Other operating income and expenses
|
8
|
35
|
43
|
6
|
(2)
|
4
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
552
|
22
|
574
|
472
|
(176)
|
296
|
||
|
Depreciation and amortisation
|
(108)
|
-
|
(108)
|
(109)
|
-
|
(109)
|
|
|
Impairment
|
-
|
(7)
|
(7)
|
-
|
(197)
|
(197)
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Operating profit/(loss) (note 3)
|
444
|
15
|
459
|
363
|
(373)
|
(10)
|
|
|
Financial income
|
2
|
-
|
2
|
3
|
-
|
3
|
|
|
Financial expenses
|
(64)
|
-
|
(64)
|
(57)
|
-
|
(57)
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Profit/(loss) before tax (note 3)
|
382
|
15
|
397
|
309
|
(373)
|
(64)
|
|
|
Tax (note 5)
|
(98)
|
(8)
|
(106)
|
(15)
|
287
|
272
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Profit for the year from continuing operations
|
284
|
7
|
291
|
294
|
(86)
|
208
|
|
|
Profit for the year from discontinued operations
|
-
|
2
|
2
|
-
|
6
|
6
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Profit for the year
|
284
|
9
|
293
|
294
|
(80)
|
214
|
|
|
====
|
====
|
====
|
====
|
====
|
====
|
||
|
Attributable to:
|
|||||||
|
Equity holders of the parent
|
284
|
9
|
293
|
293
|
(80)
|
213
|
|
|
Non-controlling interest
|
-
|
-
|
-
|
1
|
-
|
1
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
284
|
9
|
293
|
294
|
(80)
|
214
|
||
|
====
|
====
|
====
|
====
|
====
|
====
|
||
|
Earnings per ordinary share
(note 6)
|
|||||||
|
Continuing operations:
|
|||||||
|
Basic
|
101.0¢
|
72.6¢
|
|||||
|
Diluted
|
98.3¢
|
70.2¢
|
|||||
|
Adjusted
|
98.6¢
|
102.8¢
|
|||||
|
Adjusted diluted
|
95.9¢
|
99.3¢
|
|||||
|
Total operations:
|
|||||||
|
Basic
|
101.7¢
|
74.7¢
|
|||||
|
Diluted
|
99.0¢
|
72.2¢
|
|||||
|
Adjusted
|
98.6¢
|
102.8¢
|
|||||
|
Adjusted diluted
|
95.9¢
|
99.3¢
|
|||||
|
====
|
====
|
====
|
====
|
||||
|
2010
Year ended
31 December
$m
|
2009
Year ended
31 December
$m
|
||
|
Profit for the year
|
293
|
214
|
|
|
Other comprehensive income
|
|||
|
Available-for-sale financial assets:
|
|||
|
Gains on valuation
|
17
|
11
|
|
|
Losses reclassified to income on impairment/disposal
|
1
|
4
|
|
|
Cash flow hedges:
|
|||
|
Losses arising during the year
|
(4)
|
(7)
|
|
|
Reclassified to financial expenses
|
6
|
11
|
|
|
Defined benefit pension plans:
|
|||
|
Actuarial losses, net of related tax credit of $7m (2009 $1m)
|
(38)
|
(57)
|
|
|
Change in asset restriction on plans in surplus and liability in respect of funding commitments, net of related tax credit of $10m (2009 $nil)
|
(38)
|
21
|
|
|
Exchange differences on retranslation of foreign operations, including related tax credit of $1m (2009 $4m)
|
(4)
|
43
|
|
|
Tax related to pension contributions
|
7
|
-
|
|
|
____
|
____
|
||
|
Other comprehensive (loss)/income for the year
|
(53)
|
26
|
|
|
____
|
____
|
||
|
Total comprehensive income for the year attributable to equity holders of the parent
|
240
|
240
|
|
|
====
|
====
|
||
|
Year ended 31 December 2010
|
|||||
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
At beginning of the year
|
142
|
(2,649)
|
2,656
|
7
|
156
|
|
Total comprehensive income for the year
|
-
|
16
|
224
|
-
|
240
|
|
Issue of ordinary shares
|
19
|
-
|
-
|
-
|
19
|
|
Movement in shares in employee share trusts
|
-
|
(32)
|
(26)
|
-
|
(58)
|
|
Equity-settled share-based cost
|
-
|
-
|
33
|
-
|
33
|
|
Tax related to share schemes
|
-
|
-
|
22
|
-
|
22
|
|
Equity dividends paid
|
-
|
-
|
(121)
|
-
|
(121)
|
|
Exchange
|
(6)
|
6
|
-
|
-
|
-
|
|
____
|
____
|
____
|
____
|
____
|
|
|
At end of the year
|
155
|
(2,659)
|
2,788
|
7
|
291
|
|
====
|
====
|
====
|
====
|
====
|
|
|
Year ended 31 December 2009
|
|||||
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
At beginning of the year
|
118
|
(2,748)
|
2,624
|
7
|
1
|
|
Total comprehensive income for the year
|
-
|
63
|
177
|
-
|
240
|
|
Issue of ordinary shares
|
11
|
-
|
-
|
-
|
11
|
|
Movement in shares in employee share trusts
|
-
|
49
|
(61)
|
-
|
(12)
|
|
Equity-settled share-based cost
|
-
|
-
|
24
|
-
|
24
|
|
Tax related to share schemes
|
-
|
-
|
10
|
-
|
10
|
|
Equity dividends paid
|
-
|
-
|
(118)
|
-
|
(118)
|
|
Exchange
|
13
|
(13)
|
-
|
-
|
-
|
|
____
|
____
|
____
|
____
|
____
|
|
|
At end of the year
|
142
|
(2,649)
|
2,656
|
7
|
156
|
|
====
|
====
|
====
|
====
|
====
|
|
|
*
|
Other reserves comprise the capital redemption reserve, shares held by employee share trusts, other reserves, unrealised gains and losses reserve and currency translation reserve.
|
|
2010
31 December
|
2009
31 December
|
|
|
$m
|
$m
|
|
|
ASSETS
|
||
|
Property, plant and equipment
|
1,690
|
1,836
|
|
Goodwill
|
92
|
82
|
|
Intangible assets
|
266
|
274
|
|
Investment in associates
|
43
|
45
|
|
Retirement benefit assets
|
5
|
12
|
|
Other financial assets
|
135
|
130
|
|
Deferred tax assets
|
79
|
95
|
|
_____
|
_____
|
|
|
Total non-current assets
|
2,310
|
2,474
|
|
_____
|
_____
|
|
|
Inventories
|
4
|
4
|
|
Trade and other receivables
|
371
|
335
|
|
Current tax receivable
|
13
|
35
|
|
Cash and cash equivalents
|
78
|
40
|
|
Other financial assets
|
-
|
5
|
|
_____
|
_____
|
|
|
Total current assets
|
466
|
419
|
|
______
|
______
|
|
|
Total assets (note 3)
|
2,776
|
2,893
|
|
=====
|
=====
|
|
|
LIABILITIES
|
||
|
Loans and other borrowings
|
(18)
|
(106)
|
|
Derivative financial instruments
|
(6)
|
(7)
|
|
Trade and other payables
|
(722)
|
(668)
|
|
Provisions
|
(8)
|
(65)
|
|
Current tax payable
|
(167)
|
(194)
|
|
_____
|
_____
|
|
|
Total current liabilities
|
(921)
|
(1,040)
|
|
_____
|
_____
|
|
|
Loans and other borrowings
|
(776)
|
(1,016)
|
|
Derivative financial instruments
|
(38)
|
(13)
|
|
Retirement benefit obligations
|
(200)
|
(142)
|
|
Trade and other payables
|
(464)
|
(408)
|
|
Provisions
|
(2)
|
-
|
|
Deferred tax liabilities
|
(84)
|
(118)
|
|
_____
|
_____
|
|
|
Total non-current liabilities
|
(1,564)
|
(1,697)
|
|
_____
|
_____
|
|
|
Total liabilities
|
(2,485)
|
(2,737)
|
|
=====
|
=====
|
|
|
Net assets
|
291
|
156
|
|
=====
|
=====
|
|
|
EQUITY
|
||
|
Equity share capital
|
155
|
142
|
|
Capital redemption reserve
|
10
|
11
|
|
Shares held by employee share trusts
|
(35)
|
(4)
|
|
Other reserves
|
(2,894)
|
(2,900)
|
|
Unrealised gains and losses reserve
|
49
|
29
|
|
Currency translation reserve
|
211
|
215
|
|
Retained earnings
|
2,788
|
2,656
|
|
______
|
______
|
|
|
IHG shareholders' equity
|
284
|
149
|
|
Non-controlling interest
|
7
|
7
|
|
______
|
______
|
|
|
Total equity
|
291
|
156
|
|
=====
|
=====
|
|
2010
Year ended
31 December
|
2009
Year ended
31 December
|
||
|
$m
|
$m
|
||
|
Profit for the year
|
293
|
214
|
|
|
Adjustments for:
|
|||
|
Net financial expenses
|
62
|
54
|
|
|
Income tax charge/(credit)
|
106
|
(272)
|
|
|
Depreciation and amortisation
|
108
|
109
|
|
|
Impairment
|
7
|
197
|
|
|
Other exceptional operating items
|
(22)
|
176
|
|
|
Gain on disposal of assets, net of tax
|
(2)
|
(6)
|
|
|
Equity-settled share-based cost, net of payments
|
26
|
14
|
|
|
Other items
|
1
|
1
|
|
|
_____
|
_____
|
||
|
Operating cash flow before movements in working capital
|
579
|
487
|
|
|
Net change in loyalty programme liability and System Fund surplus
|
10
|
42
|
|
|
Other changes in net working capital
|
96
|
17
|
|
|
Utilisation of provisions
|
(54)
|
-
|
|
|
Retirement benefit contributions, net of cost
|
(27)
|
(2)
|
|
|
Cash flows relating to exceptional operating items
|
(21)
|
(60)
|
|
|
_____
|
_____
|
||
|
Cash flow from operations
|
583
|
484
|
|
|
Interest paid
|
(59)
|
(53)
|
|
|
Interest received
|
2
|
2
|
|
|
Tax paid on operating activities
|
(64)
|
(1)
|
|
|
_____
|
_____
|
||
|
Net cash from operating activities
|
462
|
432
|
|
|
_____
|
_____
|
||
|
Cash flow from investing activities
|
|||
|
Purchases of property, plant and equipment
|
(62)
|
(100)
|
|
|
Purchases of intangible assets
|
(29)
|
(33)
|
|
|
Investment in associates and other financial assets
|
(4)
|
(15)
|
|
|
Disposal of assets, net of costs and cash disposed of
|
107
|
20
|
|
|
Proceeds from associates and other financial assets
|
28
|
15
|
|
|
Tax paid on disposals
|
(4)
|
(1)
|
|
|
_____
|
_____
|
||
|
Net cash from investing activities
|
36
|
(114)
|
|
|
_____
|
_____
|
||
|
Cash flow from financing activities
|
|||
|
Proceeds from the issue of share capital
|
19
|
11
|
|
|
Purchase of own shares by employee share trusts
|
(53)
|
(8)
|
|
|
Proceeds on release of own shares by employee share trusts
|
-
|
2
|
|
|
Dividends paid to shareholders
|
(121)
|
(118)
|
|
|
Issue of £250m 6% bonds
|
-
|
411
|
|
|
Decrease in other borrowings
|
(292)
|
(660)
|
|
|
_____
|
_____
|
||
|
Net cash from financing activities
|
(447)
|
(362)
|
|
|
_____
|
_____
|
||
|
Net movement in cash and cash equivalents in the year
|
51
|
(44)
|
|
|
Cash and cash equivalents at beginning of the year
|
40
|
82
|
|
|
Exchange rate effects
|
(13)
|
2
|
|
|
_____
|
_____
|
||
|
Cash and cash equivalents at end of the year
|
78
|
40
|
|
|
=====
|
=====
|
||
|
1.
|
Basis of preparation
|
|
The audited consolidated financial statements of InterContinental Hotels Group PLC (the Group or IHG) for the year ended 31 December 2010 have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006.
With effect from 1 January 2010, the Group has implemented a number of new accounting standards, amendments and interpretations, the most significant ones being IFRS 3 (Revised) 'Business Combinations' and IAS 27 (Revised) 'Consolidated and Separate Financial Statements'; their adoption has had no material impact on the financial statements and there has been no requirement to restate prior year comparatives.
In all other respects, these preliminary financial statements have been prepared on a consistent basis using the accounting policies set out in the IHG Annual Report and Financial Statements for the year ended 31 December 2009.
|
|
2.
|
Exchange rates
|
|
The results of operations have been translated into US dollars at the average rates of exchange for the year. In the case of sterling, the translation rate is $1= £0.65 (2009 $1 = £0.64). In the case of the euro, the translation rate is $1 = €0.76 (2009 $1 = €0.72).
Assets and liabilities have been translated into US dollars at the rates of exchange on the last day of the year. In the case of sterling, the translation rate is $1=£0.64 (2009 $1 = £0.62). In the case of the euro, the translation rate is $1 = €0.75 (2009 $1 = €0.69).
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|
3.
|
Segmental information
|
||
|
Revenue
|
|||
|
2010
|
2009
|
||
|
$m
|
$m
|
||
|
Americas
|
807
|
772
|
|
|
EMEA
|
414
|
397
|
|
|
Asia Pacific
|
303
|
245
|
|
|
Central
|
104
|
124
|
|
|
____
|
____
|
||
|
Total revenue
|
1,628
|
1,538
|
|
|
====
|
====
|
||
|
All results relate to continuing operations.
|
|||
|
Profit
|
2010
$m
|
2009
$m
|
|
|
Americas
|
369
|
288
|
|
|
EMEA
|
125
|
127
|
|
|
Asia Pacific
|
89
|
52
|
|
|
Central
|
(139)
|
(104)
|
|
|
____
|
____
|
||
|
Reportable segments' operating profit
|
444
|
363
|
|
|
Exceptional operating items (note 4)
|
15
|
(373)
|
|
|
____
|
____
|
||
|
Operating profit/(loss)
|
459
|
(10)
|
|
|
Financial income
|
2
|
3
|
|
|
Financial expenses
|
(64)
|
(57)
|
|
|
____
|
____
|
||
|
Profit/(loss) before tax
|
397
|
(64)
|
|
|
====
|
====
|
||
|
All results relate to continuing operations.
|
|||
|
Assets
|
2010
$m
|
2009
$m
|
|
|
Americas
|
891
|
970
|
|
|
EMEA
|
856
|
926
|
|
|
Asia Pacific
|
665
|
631
|
|
|
Central
|
194
|
196
|
|
|
____
|
____
|
||
|
Segment assets
|
2,606
|
2,723
|
|
|
Unallocated assets:
|
|||
|
Deferred tax assets
|
79
|
95
|
|
|
Current tax receivable
|
13
|
35
|
|
|
Cash and cash equivalents
|
78
|
40
|
|
|
____
|
____
|
||
|
Total assets
|
2,776
|
2,893
|
|
|
====
|
====
|
|
4.
|
Exceptional items
|
|||
|
2010
$m
|
2009
$m
|
|||
|
Continuing operations:
|
||||
|
Exceptional operating items
|
||||
|
Cost of sales:
|
||||
|
Onerous management contracts (a)
|
-
|
(91)
|
||
|
Administrative expenses:
|
||||
|
Holiday Inn brand relaunch (b)
|
(9)
|
(19)
|
||
|
Reorganisation and related costs (c)
|
(4)
|
(43)
|
||
|
Enhanced pension transfer (d)
|
-
|
(21)
|
||
|
____
|
____
|
|||
|
(13)
|
(83)
|
|||
|
Other operating income and expenses:
|
||||
|
Gain on sale of other financial assets (e)
|
8
|
-
|
||
|
Gain/(loss) on disposal of hotels (f)
|
27
|
(2)
|
||
|
____
|
____
|
|||
|
35
|
(2)
|
|||
|
Impairment:
|
||||
|
Property, plant and equipment (g)
|
(6)
|
(28)
|
||
|
Assets held for sale (h)
|
-
|
(45)
|
||
|
Goodwill (i)
|
-
|
(78)
|
||
|
Intangible assets (j)
|
-
|
(32)
|
||
|
Other financial assets (k)
|
(1)
|
(14)
|
||
|
____
|
____
|
|||
|
(7)
|
(197)
|
|||
|
____
|
____
|
|||
|
15
|
(373)
|
|||
|
====
|
====
|
|||
|
Tax
|
||||
|
Tax on exceptional operating items
|
(8)
|
112
|
||
|
Exceptional tax credit (l)
|
-
|
175
|
||
|
____
|
____
|
|||
|
(8)
|
287
|
|||
|
====
|
====
|
|||
|
Discontinued operations:
|
||||
|
Gain on disposal of assets (m):
|
||||
|
Gain on disposal of hotels
|
-
|
2
|
||
|
Tax credit
|
2
|
4
|
||
|
____
|
____
|
|||
|
2
|
6
|
|||
|
====
|
====
|
|||
|
4.
|
Exceptional items (continued)
|
|
|
These items are treated as exceptional by reason of their size or nature.
|
||
|
a)
|
An onerous contract provision of $65m was recognised at 31 December 2009 for the future net unavoidable costs under a performance guarantee related to certain management contracts with one US hotel owner. In addition to the provision, a deposit of $26m was written off as it is no longer considered recoverable under the terms of the same management contracts.
|
|
|
b)
|
Relates to costs incurred in support of the worldwide relaunch of the Holiday Inn brand family that was announced on 24 October 2007.
|
|
|
c)
|
Primarily relates to the closure of certain corporate offices together with severance costs arising from a review of the Group's cost base.
|
|
|
d)
|
Related to the payment of enhanced pension transfers to those deferred members of the InterContinental Hotels UK Pension Plan who had accepted an offer to receive the enhancement either as a cash lump sum or as an additional transfer value to an alternative pension plan provider. The exceptional item in 2009 comprised the lump sum payments ($9m), the IAS 19 settlement loss arising on the pension transfers ($11m) and the costs of the arrangement ($1m). The payments and transfers were made in January 2009.
|
|
|
e)
|
Relates to the gain on sale of an investment in the EMEA region.
|
|
|
f)
|
Includes a $27m gain on the sale of the InterContinental Buckhead, Atlanta on 1 July 2010.
|
|
|
g)
|
Relates to an impairment of one hotel in the Americas (2009: $20m related to a North American hotel and $8m related to a European hotel), arising from a review of estimated recoverable amounts taking into account the prevailing economic conditions.
|
|
|
h)
|
Related to the valuation adjustments required at 30 September 2009 on the reclassification to property, plant and equipment of four North American hotels no longer meeting the 'held for sale' criteria of IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations' as sales were not considered to be highly probable within the next 12 months. The adjustments comprised $14m of depreciation not charged whilst held for sale and $31m of further write-downs to recoverable amounts, as required by IFRS 5.
|
|
|
i)
|
Related to the Americas managed operations, reflecting the impact of the global economic downturn and, in particular, IHG's funding obligations under certain management contracts with one US hotel owner.
|
|
|
j)
|
Related to the capitalised value of management contracts and arose from revisions to expected fee income. The impairment was recorded at 30 September 2009 and related to Americas managed operations.
|
|
|
k)
|
Relates to available-for-sale equity investments and arises as a result of significant and prolonged declines in their fair value below cost.
|
|
|
l)
|
Represents the release of provisions of $7m (2009 $175m) which are exceptional by reason of their size or nature relating to tax matters which had been settled or in respect of which the relevant statutory limitation period has expired, together with, in 2010, a $7m charge relating to an internal reorganisation. This charge comprises the recognition of deferred tax assets of $24m for capital losses and other deductible amounts, offset by tax charges of $31m.
|
|
|
m)
|
In 2010, relates to tax refunded relating to the sale of a hotel in a prior year. In 2009, related to tax arising on disposals together with the release of provisions no longer required in respect of hotels disposed of in prior years.
|
|
|
5.
|
Tax
|
|
The tax charge on the combined profit from continuing and discontinued operations, excluding the impact of exceptional items (note 4), has been calculated using a tax rate of 26% (2009 5%) analysed as follows.
|
|
2010
|
2010
|
2010
|
2009
|
2009
|
2009
|
|||
|
Year ended 31 December
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
||
|
Before exceptional items
|
||||||||
|
Continuing operations
|
382
|
(98)
|
26%
|
309
|
(15)
|
5%
|
||
|
Exceptional items
|
||||||||
|
Continuing operations
|
15
|
(8)
|
(373)
|
287
|
||||
|
Discontinued operations
|
-
|
2
|
2
|
4
|
||||
|
____
|
____
|
____
|
____
|
|||||
|
397
|
(104)
|
(62)
|
276
|
|||||
|
====
|
====
|
====
|
====
|
|||||
|
Analysed as:
|
||||||||
|
UK tax
|
34
|
9
|
||||||
|
Foreign tax
|
(138)
|
267
|
||||||
|
____
|
____
|
|||||||
|
(104)
|
276
|
|||||||
|
====
|
====
|
|||||||
|
By also excluding the effect of prior year items, the equivalent effective tax rate for the year is 35% (2009 42%). Prior year items, excluding exceptional items, have been treated as relating wholly to continuing operations.
|
|
6.
|
Earnings per ordinary share
|
|
Basic earnings per ordinary share is calculated by dividing the profit for the year available for IHG equity holders by the weighted average number of ordinary shares, excluding investment in own shares, in issue during the year.
Diluted earnings per ordinary share is calculated by adjusting basic earnings per ordinary share to reflect the notional exercise of the weighted average number of dilutive ordinary share options outstanding during the year.
Adjusted earnings per ordinary share is disclosed in order to show performance undistorted by exceptional items, to give a more meaningful comparison of the Group's performance.
|
|
2010
|
2010
|
2009
|
2009
|
|||
|
Continuing
operations
|
Total
|
Continuing
operations
|
Total
|
|||
|
Basic earnings per ordinary share
|
||||||
|
Profit available for equity holders ($m)
|
291
|
293
|
207
|
213
|
||
|
Basic weighted average number of ordinary shares (millions)
|
288
|
288
|
285
|
285
|
||
|
Basic earnings per ordinary share (cents)
|
101.0
|
101.7
|
72.6
|
74.7
|
||
|
====
|
====
|
====
|
====
|
|||
|
Diluted earnings per ordinary share
|
||||||
|
Profit available for equity holders ($m)
|
291
|
293
|
207
|
213
|
||
|
Diluted weighted average number of ordinary shares (millions)
|
296
|
296
|
295
|
295
|
||
|
Diluted earnings per ordinary share (cents)
|
98.3
|
99.0
|
70.2
|
72.2
|
||
|
====
|
====
|
====
|
====
|
|||
|
Adjusted earnings per ordinary share
|
||||||
|
Profit available for equity holders ($m)
|
291
|
293
|
207
|
213
|
||
|
Adjusting items (note 4):
|
||||||
|
Exceptional operating items ($m)
|
(15)
|
(15)
|
373
|
373
|
||
|
Tax on exceptional operating items ($m)
|
8
|
8
|
(112)
|
(112)
|
||
|
Exceptional tax credit ($m)
|
-
|
-
|
(175)
|
(175)
|
||
|
Gain on disposal of assets, net of tax ($m)
|
-
|
(2)
|
-
|
(6)
|
||
|
____
|
____
|
____
|
____
|
|||
|
Adjusted earnings ($m)
|
284
|
284
|
293
|
293
|
||
|
Basic weighted average number of ordinary shares (millions)
|
288
|
288
|
285
|
285
|
||
|
Adjusted earnings per ordinary share (cents)
|
98.6
|
98.6
|
102.8
|
102.8
|
||
|
====
|
====
|
====
|
====
|
|||
|
Diluted weighted average number of ordinary shares (millions)
|
296
|
296
|
295
|
295
|
||
|
Adjusted diluted earnings per ordinary share (cents)
|
95.9
|
95.9
|
99.3
|
99.3
|
||
|
====
|
====
|
====
|
====
|
|||
|
Earnings per ordinary share from discontinued operations
|
|
2010
cents per share
|
2009
cents per share
|
||
|
Basic
|
0.7
|
2.1
|
|
|
Diluted
|
0.7
|
2.0
|
|
|
====
|
====
|
|
The diluted weighted average number of ordinary shares is calculated as:
|
|||
|
2010
millions
|
2009
millions
|
||
|
Basic weighted average number of ordinary shares
|
288
|
285
|
|
|
Dilutive potential ordinary shares - employee share options
|
8
|
10
|
|
|
____
|
____
|
||
|
296
|
295
|
||
|
====
|
====
|
||
|
7.
|
Dividends
|
||||
|
2010
cents per share
|
2009
cents per share
|
2010
$m
|
2009
$m
|
||
|
Paid during the year:
|
|||||
|
Final (declared for previous year)
|
29.2
|
29.2
|
84
|
83
|
|
|
Interim
|
12.8
|
12.2
|
37
|
35
|
|
|
____
|
____
|
____
|
____
|
||
|
42.0
|
41.4
|
121
|
118
|
||
|
====
|
====
|
====
|
====
|
||
|
Proposed for approval at the Annual General Meeting (not recognised as a liability at 31 December):
|
|||||
|
Final
|
35.2
|
29.2
|
101
|
84
|
|
|
====
|
====
|
====
|
====
|
||
|
The final proposed dividend is payable on the shares in issue on 25 March 2011.
|
|
8.
|
Net debt
|
|
2010
|
2009
|
||
|
restated*
|
|||
|
$m
|
$m
|
||
|
Cash and cash equivalents
|
78
|
40
|
|
|
Loans and other borrowings - current
|
(18)
|
(106)
|
|
|
Loans and other borrowings - non-current
|
(776)
|
(1,016)
|
|
|
Derivatives hedging debt values*
|
(27)
|
(10)
|
|
|
____
|
____
|
||
|
Net debt
|
(743)
|
(1,092)
|
|
|
====
|
====
|
||
|
Finance lease liability included above
|
(206)
|
(204)
|
|
|
====
|
====
|
|
*
|
With effect from 1 January 2010, net debt includes the exchange element of the fair value of currency swaps that fix the value of the Group's £250m 6% bonds at $415m. An equal and opposite exchange adjustment on the retranslation of the £250m 6% bonds is included in non-current loans and other borrowings. Comparatives have been restated on a consistent basis.
|
|
9.
|
Movement in net debt
|
||
|
2010
|
2009
|
||
|
$m
|
$m
|
||
|
Net increase/(decrease) in cash and cash equivalents
|
51
|
(44)
|
|
|
Add back cash flows in respect of other components of net debt:
|
|||
|
Issue of £250m 6% bonds
|
-
|
(411)
|
|
|
Decrease in other borrowings
|
292
|
660
|
|
|
____
|
____
|
||
|
Decrease in net debt arising from cash flows
|
343
|
205
|
|
|
Non-cash movements:
|
|||
|
Finance lease liability
|
(2)
|
(2)
|
|
|
Exchange and other adjustments
|
8
|
(22)
|
|
|
____
|
____
|
||
|
Decrease in net debt
|
349
|
181
|
|
|
Net debt at beginning of the year
|
(1,092)
|
(1,273)
|
|
|
____
|
____
|
||
|
Net debt at end of the year
|
(743)
|
(1,092)
|
|
|
====
|
====
|
||
|
10.
|
Commitments and contingencies
|
|
At 31 December 2010, the amount contracted for but not provided for in the financial statements for expenditure on property, plant and equipment and intangible assets was $14m (2009 $9m).
At 31 December 2010, the Group had contingent liabilities of $8m (2009 $16m) mainly relating to litigation claims.
In limited cases, the Group may provide performance guarantees to third-party owners to secure management contracts. The maximum unprovided exposure under such guarantees is $90m (2009 $106m).
From time to time, the Group is subject to legal proceedings the ultimate outcome of each being always subject to many uncertainties inherent in litigation. The Group has also given warranties in respect of the disposal of certain of its former subsidiaries. It is the view of the Directors that, other than to the extent that liabilities have been provided for in these financial statements, such legal proceedings and warranties are not expected to result in material financial loss to the Group.
Following the 2009 actuarial review of the UK Pension Plan, the Company has agreed with the Plan Trustees to make additional contributions up to a total of £100m by 31 March 2017. The agreement includes three guaranteed additional annual contributions of £10m payable over the years 2010-2012, a 7.5% share of net proceeds from the disposal of hotels, payments related to growth in the Group's EBITDA above specified targets and a top-up in 2017 to the £100m total if required. The scheme is formally valued every three years and any valuations could lead to changes in the future amounts payable.
|
|
11.
|
Group financial statements
|
|
The preliminary statement of results was approved by the Board on 14 February 2011. The preliminary statement of results does not represent the full Group financial statements of InterContinental Hotels Group PLC and its subsidiaries which will be delivered to the Registrar of Companies in due course. The financial information for the year ended 31 December 2009 has been extracted from the IHG Annual Report and Financial Statements for that year as filed with the Registrar of Companies, subject to a $13m reclassification of derivative financial instruments from current liabilities to non-current liabilities in the Group statement of financial position.
|
|
Auditor's review
|
|
|
The auditors, Ernst & Young LLP, have given an unqualified report under Chapter 3 of Part 16 of the Companies Act 2006 in respect of the full Group financial statements.
|
|
InterContinental Hotels Group PLC
|
||
|
(Registrant)
|
||
|
By:
|
/s/ C. Cox
|
|
|
Name:
|
C. COX
|
|
|
Title:
|
COMPANY SECRETARIAL OFFICER
|
|
|
Date:
|
15 February, 2011
|
|