11 August 2020

Interim results to 30 June 2020

2020 2019 %Change %Change
Revenue2 $488m $1,012m (52)% (51)%
Revenue from fee business $375m $730m (49)% (48)%
Operating profit2 $74m $410m (82)% (83)%
Fee margin3 26.1% 54.1% (28.0)%pts
Adjusted EPS4 14.3¢ 148.6¢ (90)%
Total revenue $1,248m $2,280m (45)%
Operating (loss)/profit $(233)m $442m (153)%
Basic EPS (115.4)¢ 167.2¢ (169)%
Total dividend per share 39.9¢ (100)%
Net debt
$2,515m $2,847m (12)%

Key metrics

  • $6.6bn total gross revenue (down (52)%; (51)% at CER)
  • (51.7)% global H1 RevPAR
  • (74.7)% global Q2 RevPAR

1 Excludes System Fund results, hotel cost reimbursements and exceptional items.
2 Comprises the Group’s fee business and owned, leased and managed lease hotels.
3 Excludes owned, leased and managed lease hotels, significant liquidated damages and the results of the Group’s captive insurance company, with 2019 restated accordingly.
4 Calculated using results from Reportable Segments and Adjusted Interest, and excluding changes in fair value of contingent consideration.
5 Reportable segment results excluding significant liquidated damages, current year disposals and stated at constant H1 2020 exchange rates (CER).

  • H1 Comparable RevPAR: Global (52)%. Q2: Global (75)%; Americas (71)%; EMEAA (88)%; Greater China (59)%.
  • Net system size growth of 3.2% YoY. In H1, 12k room additions and 12k removals, including 2k relating to a previously flagged portfolio of hotels in Germany. Global estate now 883k rooms, over 5,900 hotels.
  • First half signings of 26k rooms (181 hotels). Total pipeline now stands at 288k rooms (1,932 hotels).
  • Operating profit from reportable segments down 82% to $74m before System Fund result of $(52)m and operating exceptional items of $(255)m predominantly comprising non-cash impairments to owned and leased hotels and acquired management agreements, together with impairments of trade deposits and receivables.
  • On track to reduce Fee Business costs by ~$150m in 2020; targeting around half this level to be sustainable into 2021.
  • Q2 free cash flow broadly neutral, resulting from strong cash management; H1 outflow of $66m.
  • Total available liquidity of $2.0bn at end of June and end of July.
  • July comparable RevPAR expected to be ~(58)%; occupancy levels in comparable open hotels improved to ~45%. 317 hotels or 5% of the estate closed as at end of July; 3% of Americas, 16% of EMEAA and <1% of Greater China.

Keith Barr, Chief Executive Officer, IHG, said: “Throughout the crisis we have continued to act responsibly, doing all we can to support our hotel colleagues and owners, and create a clean, safe stay experience that we know guests can trust. The teamwork, dedication and care that our colleagues and owners have shown to adapt our approach is central to meeting the evolving needs and expectations of guests, as well as the communities in which we operate. I would like to sincerely thank everyone for ensuring that our purpose of providing True Hospitality shines through, even in the toughest of times.

The impact of Covid-19 on our business has been substantial. Global RevPAR declined by 52% in the first half and was down 75% in the second quarter, when occupancy at comparable hotels fell to 25%. Despite this challenging environment, we delivered an operating profit of $74m. Small but steady improvements in occupancy and RevPAR through the second quarter continued into July, with an expected RevPAR decline of 58%, and occupancy rising to around 45%.

The support we have offered owners, such as fee relief and increased payment flexibility, was well received. Together with other measures we’ve taken to preserve cash, we have maintained substantial liquidity of around $2bn. Our ongoing actions to reduce costs include plans to make around half of the $150m of savings we will achieve this year sustainable into 2021, alongside continued investment in our growth initiatives. However, with limited visibility of the pace and scale of market recovery, we are not proposing an interim dividend.

As has been the case in previous downturns, domestic mainstream travel is proving to be the most resilient. Our weighting in this segment, led by our industry-leading Holiday Inn Brand Family, positions us well as demand returns in our key markets. In the US, our mainstream estate of almost 3,500 hotels is seeing lower levels of RevPAR decline than the industry, and is operating at occupancy levels of over 50%.

Reflecting our long-term growth prospects, and the strength of our brands and owner relationships, we opened more than 90 hotels in the half and strengthened our pipeline with an average of one new signing a day, including almost 100 for our Holiday Inn Brand Family. We have also taken voco, our upscale conversion brand, outside of EMEAA, with initial signings in the US and Greater China.

The impact of this crisis on our industry cannot be underestimated, but we are seeing some very early signs of improvement as restrictions ease and traveller confidence returns. Whilst the near-term outlook remains uncertain and the time period for market recovery is unknown, we are well positioned with preferred brands in the largest markets and segments, a leading loyalty platform and one of the most resilient business models in the industry. This gives us confidence in our ability to meet the needs of our guests and owners, and to emerge strongly when markets recover.”

PDF 1.5Mb Download the full announcement of our 2020 Interim Results 


About IHG®

IHG® (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global organisation with a broad portfolio of hotel brands, including Six Senses Hotels Resorts Spas, Regent Hotels & Resorts, InterContinental® Hotels & Resorts, Kimpton® Hotels & Restaurants, Hotel Indigo®, EVEN Hotels®, HUALUXE® Hotels and Resorts, Crowne Plaza® Hotels & Resorts, voco™, Holiday Inn® Hotels & Resorts, Holiday Inn Express®, Holiday Inn Club Vacations®, avid™ hotels, Staybridge Suites®Atwell Suites and Candlewood Suites®.


IHG franchises, leases, manages or owns more than 5,900 hotels and approximately 883,000 guest rooms in more than 100 countries, with over 1,900 hotels in its development pipeline. IHG also manages IHG® Rewards Club, our global loyalty programme, which has more than 100 million enrolled members.


InterContinental Hotels Group PLC is the Group’s holding company and is incorporated in Great Britain and registered in England and Wales. Approximately 400,000 people work across IHG's hotels and corporate offices globally.


Visit www.ihg.com for hotel information and reservations and www.ihgrewardsclub.com for more on IHG Rewards Club. For our latest news, visit: https://www.ihgplc.com/en/news-and-media and follow us on social media at: www.twitter.com/ihgcorporate, www.facebook.com/ihgcorporate and www.linkedin.com/company/intercontinental-hotels-group


Contact details

For further information, please contact: 

Investor Relations

Stuart Ford; Matthew Kay: Rakesh Patel:
+44 (0)1895 512 176
+44 (0)7527 419 431

Media Relations

Yasmin Diamond; Mark Debenham:
+44 (0)1895 512 097
+44 (0)7527 424 046

Presentation for Analysts and Shareholders

A conference call and webcast presented by Keith Barr, Chief Executive Officer and Paul Edgecliffe-Johnson, Chief Financial Officer will commence at 9.30am (London time) on 11 August 2020 on the web address: https://www.investis-live.com/ihg/5f17013527577e10000ac663/jefs 

For those wishing to ask questions please use the dial in details below which will have a Q&A facility:

UK Local +44 (0) 203 936 2999 
UK  +44 (0) 800 640 6441
US   +1 646 664 1960
   +1 855 9796 654
International dial-in  +44 (0) 203 936 2999
Participant Access Code  84 25 69

The archived webcast of the presentation is expected to be on this website later on the day of the results and will remain on it for the foreseeable future: www.ihgplc.com/en/investors/results-and-presentations.

A replay will be available following the event, details are below:

UK +44 (0) 203 936 3001
US +1 845 709 8569
All other locations +44 (0) 203 936 3001
Participant Access Code 72 23 89