Highlights
- $21.2bn of total gross revenue from hotels in IHG’s system, up 5%
- 2012 global RevPAR growth of 5.2%, with rate up 3.2% and occupancy up 1.2%pts
- Americas 6.1% (US 6.3%); Europe 1.7%; AMEA 4.9%; Greater China 5.4%.
- Q4 global RevPAR growth of 3.9%: Americas 5.7%; Europe 1.2%; AMEA 1.8%; Greater China (0.3)%.
- System size of 676k rooms (4,602 hotels), up 2.7% year on year
- 34k rooms (226 hotels) opened and 54k rooms (356 hotels) signed, both up around 5% on an underlying5 basis.
- 16k rooms removed, down 51% on 2011, and now at more normal levels post completion of Holiday Inn relaunch.
- High quality pipeline of 169k rooms (1,053 hotels), with c. 40% under construction.
- 5% global industry supply share and 12% active global pipeline share support high quality growth.
- Fee revenues up 6.8%
- Increasing proportion of new rooms are now coming from developing markets, driving strong fee revenue growth, albeit at lower absolute RevPAR levels, particularly in the initial years as demand drivers mature.
- Developing markets represent 19% of system size, 29% of 2012 room openings and 50% of our pipeline.
- Building preferred brands
- Good traction for our new brands, with 15 HUALUXE hotels now in the pipeline and our first EVEN hotel signed in the fourth quarter.
- Holiday Inn continues to outperform, growing premiums to the upper midscale segment in the US over the past 5 years by 7%pts for Holiday Inn and 5%pts for Holiday Inn Express. Holiday Inn ranked “Highest in Guest Satisfaction Among Mid-scale Full Service Hotel Chains” by J.D. Power and Associates for 2nd year in a row.
- Crowne Plaza repositioning programme is progressing well.
- Hotel Indigo system size at 50 hotels with a further 47 in the pipeline (total gross revenue: $172m, up 29%).
- Best in class delivery
- 69% of rooms revenue delivered through IHG Channels and by Priority Club Rewards members direct to hotel.
- Growing margins
- Fee based margins of 42.6%, up 2%pts, a particularly strong result, which will revert back to more normal levels of growth in 2013.
Richard Solomons, Chief Executive of InterContinental Hotels Group PLC:
“2012 was another year of significant progress for IHG with our preferred brands driving RevPAR up 5.2%, led by the US up 6.3%. Together with 2.7% net rooms growth, which is fuelled increasingly by our expansion in developing markets, this drove up fee revenues by an impressive 6.8%. This growing scale allowed us to reinvest in the business while achieving better than anticipated margin progression.
The financing environment remained tough through 2012 in many of our key markets, but we still signed on average one hotel a day into our pipeline. This reflects the excellent relationship we enjoy with our owners and further strengthens our foundation for high quality growth. We extended our portfolio of preferred brands, launching in the first quarter of 2012 the innovative HUALUXE Hotels & Resorts and EVEN Hotels.
The $1bn return of capital, announced in August, underlines the benefit of our asset light strategy in delivering strong free cash flow, and our commitment to return value to shareholders.
IHG’s proven strategy and resilient business model position us for further good performance in 2013, despite the challenging economic environment. The 16% increase in our dividend demonstrates the confidence we have in our ability to deliver sustained high quality growth, as we prepare to celebrate our 10th anniversary as a standalone business.”
Current Trading Update
January global RevPAR up 6.6%, with rate up 2.1%. Americas 7.0%, Europe (0.1)%, AMEA 6.0%. Greater China up 21.0% principally reflects the shift in timing of Chinese New Year in 2013 into February from January.
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