Annual Report
- Back to topBack to top
- Overview of 2016Overview of 2016
- From the Chairman and CEOFrom the Chairman and CEO
- Our preferred brandsOur preferred brands
- Our performanceOur performance
- Where we operateWhere we operate
- Key trends shaping the industryKey trends shaping the 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 2016
Summary of our Annual
Report and Form 20-F 2016
An overview of 2016
Our business and achievements for the year.
From the Chairman
The work being done by our colleagues day in, day out, to deliver the real hallmarks of our distinctive brands, and bring each of them to life, is truly outstanding.
Patrick Cescau
Chairman
From the CEO
Underpinning the success of all our brands is a focus on digital leadership. This involves us using new technologies and data to deliver truly relevant experiences.
Richard Solomons
Chief Executive Officer
Our preferred brands
IHG is a brands-led business. We create Great Hotels Guests Love® through our portfolio of complementary and differentiated hotel brands. Our brands are trusted for meeting guests’ needs, for rewarding loyalty and for delivering memorable experiences.
Financial highlights
Group revenue
$1,715m
2015: $1,803m [-4.9%]
Group operating profit
$678m
2015: $1,499m [-54.8%]
Group operating profit before exceptional items
$707m
2015: $680m [+4.0%]
Total gross revenue in IHG’s System
$24.5bn
2015: $24.0bn [+2.1%]
Total underlying operating profit growth
$61m
2015: $67m [+9.5%]
Revenue per available room (RevPAR) growth
+1.8%
2015: [+4.4%]
Underlying fee revenue growth
+4.4%
2015: [+7.7%]
Where we operate
We operate in nearly 100 countries globally.
Revenue 2016
$1,803m
Operating Profit
$680m
Number of rooms
744,368
Key trends shaping
the industry
Digital consumer
The increasing use of digital technology, particularly mobile, is now driving interactions between travellers and hotel brands. Time spent online, internet use and digital technology are growing significantly. Digital bookings represent a growing part of our business and IHG’s mobile app was developed in response to this trend.
>3bn
internet users, growing by 300 million people annually.
Evolving needs of travellers
The needs and expectations of travellers are evolving. Accommodation providers increasingly need to cater to this by offering greater personalisation whilst retaining a feeling of humanity that has faded with technological advances.
Nearly
70%
of customers are willing to pay a premium for greater room choice (Deloitte survey)
Meaningful membership
Loyalty programmes continue to become more sophisticated to cater to the changing needs of guests. To be successful, brands need to drive real engagement with their customers and create brand advocates through genuine personalisation.
64%
of millennials said that loyalty programmes drove them to interact with a brand
The value of data
The ‘Internet of Things’, combined with the ability of big-data technology to gather intelligence from large quantities of information, presents a clear opportunity to reshape interactions with guests and deliver enhanced experiences.
By 2020 people and connected objects will generate
40 trillion
gigabytes of data
Our business model
Our portfolio of 12 preferred brands are built on unique customer insights and cater to a broad range of needs. We predominantly franchise our hotel brands to, or manage hotels on behalf of, third-party hotel owners, resulting in an asset-light business model.
4,321
Franchised hotels
(542,650 rooms)
845
Managed hotels
(222,073 rooms)
8
Owned and leased hotels
(2,412 rooms)
Our strategy for high-quality growth
Our strategy is unchanged. Through our Winning 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 of our strategy and a commitment to doing business responsibly, will drive superior shareholder returns.
Doing business responsibly
We genuinely care about the well-being of our guests and colleagues- and the impact we have on local communities and businesses too. Our responsible business culture is embedded throughout our organisation and underpins our entire strategy.
Downloads
Individual chapters
Consolidated financial statements
- Group income statement PDF 0.05MB
- Group statement of comprehensive income PDF 0.04MB
- Group statement of changes in equity PDF 0.08MB
- Group statement of financial position PDF 0.05MB
- Group statement of cash flows PDF 0.05MB
- Parent Company Financial Statements and Notes PDF 0.51MB
- Group income statement Excel 0.02MB
- Group statement of financial position Excel 0.02MB
- Group statement of cash flows Excel 0.02MB
- Segmental information Excel 0.02MB