Annual Report
- Back to topBack to top
- Overview of 2017Overview of 2017
- From the Chairman & CEOFrom the Chairman & CEO
- Our brandsOur brands
- Our performanceOur performance
- Where we operateWhere we operate
- Trends shaping our industryTrends shaping our industry
- Our business modelOur business model
- Our strategy for high-quality growthOur strategy for high-quality growth
- Doing business responsiblyDoing business responsibly
- DownloadsDownloads
Annual Report
and Form 20-F 2017
Summary of our Annual
Report and Form 20-F 2017
An overview of 2017
Our business and achievements for the year.
From the Chairman
Our ability to deliver on our proven strategy, focused on guests and owners, laid the foundation for further high-quality growth in 2017, in what was another year of shifting dynamics within the global hospitality sector.
Patrick Cescau
Chairman
From the CEO
In 2017, we delivered strong underlying profit growth and opened our highest number of hotels since 2009, including the most ever in both AMEA and Greater China.
Keith Barr
Chief Executive Officer
Our brands
IHG® is a brands business built on a commitment to providing True Hospitality for everyone. Through our family of well-loved and distinctive brands, our talented colleagues deliver memorable guest experiences all around the world, every day, and we are trusted for rewarding loyalty.
Financial highlights
Group revenue
$1,784m
2016: $1,715m (+4.0%)
Group operating profit
$763m
2016: $678m (+12.5%)
Group operating profit before exceptional items
$759m
2016: $707m (+7.4%)
Total gross revenue in IHG’s System
$25.7bn
2016: $24.5bn (+4.9%)
Total underlying operating profit growth
$59m
2016: $61m (+8.4%)
Revenue per available room (RevPAR) growth
+2.7%
2016: +1.8%
Underlying fee revenue growth
+5.0%
2016: +4.4%
Where we operate
We operate in nearly 100 countries globally.
Revenue 2017
$1,748m
Operating Profit
$759m
Number of rooms
798,075
Trends shaping our industry
Mobile expansion
In 2017, four out of five internet users went online via a mobile device. Rapidly expanding mobile connectivity continues to provide brands with the opportunity to explore new ways of interacting with customers across their entire guest journey. At IHG, we are constantly refining our award-winning mobile App to offer our guests a richer stay experience.
4.9bn
unique mobile phone owners in 2017
2.5bn
active mobile social media users in 2017
Data power
Data generation continues to increase rapidly. Our cloud-based systems like IHG Concerto™ ensure that we have the processing power to shape the way we interact with our guests and deliver more tailored experiences.
$3tn
value of the global data economy
90%
of all existing data created since 2015
Human connections
Over 150,000 colleagues participated in our True Hospitality service training in 2017, helping hotel staff create personal, memorable moments with our guests.
87%
of customers increase business with and loyalty to companies who offer a real person to talk to when they need it
80%
of people prefer human customer service to digital alternatives
Our business model
As an asset-light business, we are a manager and franchisor of hotel brands. This means we can focus on growing our fee revenues and fee margins, with limited requirements for capital, an approach that's helped us successfully grow our business and deliver high returns.
The figures below represent the percentage of our operating profit before central overheads.
96%
Fee business
4%
Owned, leased and managed leases
Our strategy for high-quality growth
Our Strategic Model sets out our approach and remains central to our commitment to delivering high-quality, sustainable growth in cash flows and profits over the long term. Through our Strategic Model, we focus on value-creation by building preferred brands, delivering a superior owner proposition, leveraging scale and generating revenue through the lowest-cost, direct channels. We concentrate on a targeted portfolio that, together with disciplined execution and a commitment to doing business responsibly, will drive superior shareholder returns.
Doing business responsibly
Our focus on responsible business is part of everything we do at IHG, helping create a diverse and inclusive culture that embodies our commitment to provide True Hospitality for everyone.
Downloads
Individual chapters
Consolidated financial statements
- Group income statement PDF 0.08MB
- Group statement of comprehensive income PDF 0.07MB
- Group statement of changes in equity PDF 0.13MB
- Group statement of financial position PDF 0.08MB
- Group statement of cash flows PDF 0.09MB
- Parent Company Financial Statements and Notes PDF 0.40MB
- Group income statement Excel 0.25MB
- Group statement of financial position Excel 0.25MB
- Group statement of cash flows Excel 0.25MB
- Segmental information Excel 0.04MB