Annual Report
- Back to topBack to top
- Overview of 2019Overview of 2019
- From the Chair & CEOFrom the Chair & CEO
- Financial highlightsFinancial highlights
- Our brandsOur brands
- 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
- Our culture, key stakeholders and doing business responsiblyOur culture, key stakeholders and doing business responsibly
- DownloadsDownloads
Annual Report
and Form 20-F 2019
Summary of our Annual
Report and Form 20-F 2019
An overview of 2019
Our business and achievements for the year.
From the Chair
Over the past two years, our transformation has sparked the change needed to take IHG to the next level in terms of our capability and growth aspirations."
Patrick Cescau
Chair
From the CEO
In 2019, we have taken more important steps to be the best long-term partner for owners, a great place to work for employees, and a brand of choice for guests ."
Keith Barr
Chief Executive Officer
Total revenue
$4,627m
2018: $4,337m (+6.7%)
Revenue from reportable segmentsb
$2,083m
2018: $1,933m (+7.8%)
Operating profit
$630m
2018: $582ma (+8.2%)
Operating profit from reportable segmentsb
$865m
2018: $832ma (+4.0%)
Total gross revenue in IHG's Systemb
$27.9bn
2018: $27.4bn (+1.8%)
Basic EPSc
210.4¢
2018: 183.7¢a (+15%)
Global RevPAR
-0.3%
2018: +2.5%
Dividend per share
125.8¢
2018: 114.4¢ (+10%)
a Restated to reflect the adoption of IFRS 16 (see pages 146 to 149) in the Group Financial Statements.
b Use of Non-GAAP measures:
In addition to performance measures directly observable in the Group Financial Statements (IFRS measures), additional 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 55 to 59 and reconciliations to IFRS figures, where they have been adjusted, are on pages 214, and 218.
cAdjusted EPSb 303.3¢ (+3%); 2018: 293.2¢a
Industry overview
From growing consumer demand for branded hotels, to an expanding middle class and greater disposable incomes, we operate in an industry with long-term growth potential.
Where we operate
We operate in more than 100 countries globally.
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Group revenue from
reportable segments$2,083mb
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Group operating profit from reportable segments
$865mb
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Number of rooms
883,563
Revenue 2019
$1,234m
Operating Profit
$123m
Number of rooms
123,456
In addition to performance measures directly observable in the Group Financial Statements (IFRS measures), additional 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 55 to 59 and reconciliations to IFRS figures, where they have been adjusted, are on pages 214, and 218.
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.
4,870
Franchised hotels
(614,974 rooms)
1,007
Managed hotels
(262,253 rooms)
26
Owned and leased hotels
(6,336 rooms)
Our strategy for high-quality growth
Our clearly defined strategy is designed to deliver industry leading net rooms growth over the medium term. We grow our brands in high value markets where we can tap into deep pools of consumer demand to create scale positions and develop a differentiated guest and owner offer.
Our focus is on delivering high-quality growth, which means consistent, sustained growth in cash flows and profits over the long-term. The execution of our strategy is underpinned by a clear commitment to operate a responsible business.
Our culture, key stakeholders and doing business responsibly
Our focus on doing business responsibly and the way we interact with our stakeholders, helps create a diverse, healthy and inclusive culture. IHG’s purpose and strategy go beyond a simple hotel stay and shareholder returns; it also includes the impact we have on the environment and the communities we work in.
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