Annual Report
- Back to topBack to top
- From the Chair & CEOFrom the Chair & CEO
- Our 2020 in reviewOur 2020 in review
- Financial highlightsFinancial highlights
- Trends shaping our industryTrends shaping our industry
- Where we operateWhere we operate
- Our brandsOur brands
- Our business modelOur business model
- Our strategy for high-quality growthOur strategy for high-quality growth
- Our culture, key stakeholders and doing business responsiblyOur culture, key stakeholders and doing business responsibly
- DownloadsDownloads
Annual Report
and Form 20-F 2020
Summary of our Annual
Report and Form 20-F 2020
From the Chair
Reflecting what we’we learnt and what’s needed to succeed in an evolving environment, we entered 2021 with a refreshed strategy."
Patrick Cescau
Chair
From the CEO
Globally, we’ve worked as a team with such speed and compassion – leading, learning and listening to keep colleagues and guests feeling safe, protect IHG and our owners, and support our industry."
Keith Barr
Chief Executive Officer
2020 in review
In an unimaginably challenging year, we worked tirelessly to care for our stakeholders, protect our business and ensure our purpose of True Hospitality for Good was felt even in the toughest of times – all while ensuring we’re ready to grow strongly in a recovery.
Financial performance
Global RevPAR
(52.5)%
2019: (0.3)%
Net system size growth
+0.3%
2019: +5.6%
Total gross revenue in IHG's Systema
$13.5bn
2019: $27.9bn
Total revenue
$2,394m
2019: $4,627m
Revenue from reportable segmentsa
$992m
2019: $2,083m
Operating (loss)/profit
$(153)m
2019: $630m
Operating profit from reportable segmentsa
$219m
2019: $865ma
Basic EPSb
(142.9)¢
2019: 210.4¢
a Use of Non-GAAP measures: in addition to performance measures directly observable in the Group Financial Statements (IFRS measures), other financial measures (described as Non-GAAP) are presented that are used internally by management as key measures to assess performance. Non-GAAP measures are either not defined under IFRS or are adjusted IFRS figures. Further explanation in relation to these measures can be found on pages 47 to 51 and reconciliations to IFRS figures, where they have been adjusted, are on pages 212 to 216.
bAdjusted EPSa 31.3¢ (-90%); 2019: 303.3¢
Industry overview
Despite the challenges of Covid-19, the fundamental desire to travel for business or leisure continues to underpin the industry’s growth prospects, illustrated by sustained new hotel openings and signings.
Where we operate
We operate in more than 100 countries globally.
-
Group revenue from
reportable segments$992ma
-
Group operating profit from reportable segments
$219ma
-
Number of rooms
886,036
Revenue 2020
$992m
Operating Profit
$219m
Number of rooms
886,036
Luxury & Lifestyle
Premium
Essentials
Suites
Our business model
Through our business model, we predominantly franchise our brands and manage hotels on behalf of third-party hotel owners. As an asset-light business, we focus on growing our fee revenues and fee margins, with limited requirements for capital.
5,005
Franchised hotels
(627,348 rooms)
936
Managed hotels
(253,288 rooms)
23
Owned, leased and managed lease hotels
(5,400 rooms)
Our strategy
In 2020, we evolved key elements of our strategy to further strengthen our ability to drive future growth. Our ambition to deliver high-quality industry-leading net rooms growth is unchanged, driven by continued investment in enhancing our guest and owner offer and developing our brands at scale in high-value markets.
Over the long-term, with disciplined execution, this drives sustained growth in cash flows and profits, which can be reinvested in our business and returned to shareholders. What has evolved is how we execute against our strategy, in terms of what we prioritise, the behaviours we champion, and the purpose that guides us.
Our culture and responsible business
IHG’s purpose and strategy go beyond a simple hotel stay and shareholder returns. Our focus on doing business responsibly and the way we interact with our stakeholders, helps create a diverse, healthy and inclusive culture and underpins a commitment to make a positive difference to the environment and the communities we’re a part of.
