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Measuring our success - our strategic priorities

We measure our performance through a holistic set of carefully selected KPIs to monitor our success in achieving our strategy and the progress of our Group to deliver high-quality growth. The KPIs are organised around the elements of our strategy - our Winning Model and Targeted Portfolio, and Disciplined Execution.

Winning Model and Targeted Portfolio

KPIs 2013 progress

Net rooms supply2

Net rooms supply – 2011: 658,348, 2012: 675,982, 2013: 686,873

 

Growth in fee revenues2

Growth in fee revenues – 2011: 5.7%, 2012: 6.8%, 2013: 4.3%

At constant currency

  • IHG System size of 686,873 rooms (4,697 hotels) reflecting 1.6% net IHG System size growth. The slower growth rate reflects a higher level of removals to maintain the quality of our estate, including 17 hotels for which significant liquidated damages totalling $46m were received.
  • Completed disposal of our leasehold interest in the InterContinental London Park Lane and agreed to dispose of 80% of our interest in the InterContinental New York Barclay, retaining 20% in a joint venture, and entered into long-term management contracts on both hotels.
  • Pipeline of 180,461 rooms (1,120 hotels), including 21 hotels in the pipeline for the HUALUXE brand and five hotels in the pipeline for the EVEN brand (three of which are owned).
  • Lower growth in fee revenues compared to 2012 reflects a combination of lower RevPAR growth and lower net IHG System size growth in 2013.
  • An increasing number of open hotels in developing markets, which drive incremental fees at a lower rate, also contributed to lower growth in fee revenues.
2014 priorities
  • Accelerate growth strategies in priority markets and key locations in agreed scale markets and continue to leverage scale.
  • Support growth of our new brands EVEN Hotels and HUALUXE Hotels & Resorts, opening our first hotels.
KPIs 2013 progress

Total gross revenue

Total gross revenue – 2011: 20.2, 2012: 21.2, 2013: 21.6

Actual $bn

 

System contribution to revenue1

System contribution to revenue – 2011: 68%, 2012: 69%, 2013: 69%

  • Total gross revenue from hotels in IHG's System - $21.6bn, up 2%.
  • Loyalty programme relaunched to IHG Rewards Club offering enhanced benefits for members, including free internet access across our hotels globally - driving a 10 percentage point increase in awareness of IHG as a brand family.
  • Enrolled 6m new members (up 8% on 2012) to IHG Rewards Club, taking the total to 77.4m members.
2014 priorities
  • Continue to strengthen IHG's revenue delivery systems to deliver profitable demand to hotels.
  • Continue to drive loyalty to our portfolio of brands, driving awareness of IHG Rewards Club and leveraging this across our brands and regions.
  • Continue to drive adoption and impact of our performance tools, systems and processes amongst our owners.
  • Continue with investment in technology systems and platforms.
KPIs 2013 progress

Employee Engagement survey scores

Employee Engagement survey scores – 2011: 75.8%, 2012: 78.6%, 2013: 81.7%

  • Continued to deliver against our people strategy, increasing our employee engagement by 3.1% and recognised externally as an employer of choice (see page 23).
  • Launched bespoke, country-specific careers web pages and/or websites in India, Russia and Greater China to continue our aim to be employer of choice.
2014 priorities
  • Strengthen our approach to developing leaders and invest in tools and training that build leadership capabilities.
  • Continue to build a winning culture through strong leadership and performance management.
  • Continue to strengthen our talent pipeline to meet our growth ambitions.
KPIs 2013 progress

Global RevPAR growth1, 2

Global RevPAR growth – 2011: 6.2%, 2012: 5.2%, 2013: 3.8%

Comparable hotels, constant $

 

Guest HeartBeat1

Guest HeartBeat – 2011: Not applicable, 2012: 82.36%, 2013: 82.91%

  • Growth in global RevPAR has slowed in 2013, reflecting slower growth in The Americas and IHG's predominantly midscale focus, and more significant slow down in Greater China due to industry-wide challenges (see pages 12 and 13).
  • Recorded improvements in guest satisfaction scores in every region, for all of our brands and received external recognition through awards (see page 23).
  • Continued with the repositioning of the Crowne Plaza brand and refreshed marketing messaging for Holiday Inn and Holiday Inn Express to better reflect the differentiated brand propositions and drive brand consideration.
  • As part of simplifying and clarifying our standards for all of the brands, in 2013, we refreshed the Holiday Inn Express Standards' manual ready for launch in January 2014.
  • Launched two General Manager training programmes to assist with General Manager development to deliver on the brand promise (see page 26).
2014 priorities
  • Continue to strengthen the quality and consistency of the brand experience, delivering guest journeys that are differentiated by brand.
  • Continue to invest in building long-term brand preference in light of our guest occasion segmentation and the 2014 IHG Trends Report (see page 20).
  • Continue to empower our frontline teams with the tools and training to consistently deliver great guest experiences that build brand preference.
  • Continue to progress with our standards refresh across the brands.
  • Support the first openings of our new hotels for the EVEN Hotels and HUALUXE Hotels & Resorts brands.

Disciplined Execution

KPIs 2013 progress

Fee margins1

Fee margins – 2011: 39.5%, 2012: 41.9%, 2013: 43.2%

*Restated for IAS19R of Employee Benefits

  • Group fee margins of 43.2%, up 1.3 percentage points on 2012, with scale benefits and cost efficiencies more than offsetting increased investment for future growth.
2014 priorities
  • Continue to focus on sustainable fee margin progression over the medium-term.
KPIs 2013 progress

Number of people participating in IHG Academy programmes

Number of people participating in IHG Academy programmes – 2011: Not applicable, 2012: Not applicable, 2013: 6,391

  • Opened a further 144 IHG Academy programmes, taking the total to 301, with 6,391 participants in 2013 helping us to build a strong pipeline of talent for the future.
2014 priorities
  • Continue to expand the IHG Academy throughout our hotel estate making sure the programmes deliver positive and transformational results for participants and IHG.
  • Provide skills and improved employability to a total of 20,000 people via IHG Academy over the five-year period (2013-2017).
KPIs 2013 progress

Value of monetary donations and in-kind support to communities by IHG, including funds deployed through IHG Shelter in a Storm Programme

Value of monetary donations and in-kind support to communities by IHG, including funds deployed through IHG Shelter in a Storm Programme – 2011: Not applicable, 2012: Not applicable, 2013: 1.92

  • Contributed a total of $1.92m in 2013 to communities through monetary donations and in-kind support, including funds deployed through the IHG Shelter in a Storm Programme.
  • $1.2m raised for the IHG Shelter Fund.
  • Responded to 15 disasters in 8 countries, including super typhoon Haiyan in the Philippines, floods in Jakarta, Buenos Aires, Canada and Mexico, tornadoes in mid-west America and wildfires in Arizona, by allocating funds to help with financial support, vital supplies and accommodation.
2014 priorities
  • Continue to increase awareness of, and engagement with, the IHG Shelter in a Storm Programme, ensuring our hotels are prepared for disaster and able to respond quickly and effectively to help the local community and employees when needed.
  • Contribute a total of $10m over a five-year period (2013-2017) to communities through monetary donations and in-kind support, including funds deployed through the IHG Shelter in a Storm Programme.
KPIs 2013 progress

Carbon footprint per occupied room

Carbon footprint per occupied room – 2011: Not applicable, 2012: 32, 2013: 31.2

  • Reduced carbon footprint per occupied room by 31.2kgCO2e (reduction of 2.4% on 2012 baseline) across our entire estate
  • Carbon Disclosure Project disclosure rating of 85B (the joint highest-scoring hotel company in the FTSE 350, Standard & Poor's 500 and Global 500).
2014 priorities
  • Reduce carbon footprint per occupied room by 12% across our entire estate (over a five-year period (2013-2017) using 2012 baseline).
  • Continue to drive quality of use of IHG Green Engage to reduce impact on the environment, enable cost savings and drive revenue.
KPIs 2013 progress

Water use per occupied room in water stressed areas

Water use per occupied room in water stressed areas – 2011: Not applicable, 2012: 0.58, 2013: 0.56

  • Reduced water use per occupied room by 0.56m3 (reduction of 4.6% on 2012 baseline) in water-stressed areas.
2014 priorities
  • Reduce water use per occupied room by 12% in water-stressed areas across our estate (over a five-year period (2013-2017) using 2012 baseline).

KPIs used to assess performance measures for remuneration plans:

1 Annual incentive plan (Annual Performance Plan)
2 Long-term incentive plan (Long Term Incentive Plan)

Last updated 3 April 2014

Find out more about our brands

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  • InterContinental Hotel & Resort logo
  • Hualuxe Hotels & Resorts logo
  • Crowne Plaza logo
  • Hotel Indigo logo
  • Even Hotels logo
  • Holiday Inn logo
  • Holiday Inn Express logo
  • Holiday Inn Resort logo
  • Holiday Inn Club Vacations logo
  • Staybridge Suites logo
  • Candlewood Suites logo
  • Priority Club logo