18 February 2020

Preliminary Results for the year to 31 December 2019

2019 2018 Restated1 %Change %Change
Revenue3 $2,083m $1,933m 8% 6%
Revenue from fee business $1,510m $1,486m 2% 2%
Operating profit3 $865m $832m 4% 6%
Fee margin4 54.1% 53.3% 0.8%pts
Adjusted EPS6 303.3¢ 293.2¢ 3%
Total revenue $4,627m $4,337m 7%
Operating profit $630m $582m 8%
Basic EPS 210.4¢ 183.7¢ 15%
Total dividend per share 125.8¢ 114.4¢ 10%
Net debt
$2,665m $1,965m 36%

Key metrics

  • $27.9bn total gross revenue (up 2%; 3% at CER)
  • (0.3)% global FY RevPAR
  • (1.8)% global Q4 RevPAR

1 Restated following the adoption of IFRS 16 ‘Leases’ from 1 January 2019 and the amended definitions for fee margin and adjusted EPS.
2 Excludes System Fund results, hotel cost reimbursements and exceptional items.
3 Comprises the Group’s fee business and owned, leased, and managed lease hotels.
4 Excludes owned, leased and managed lease hotels, significant liquidated damages and the results of the Group’s captive insurance company.
5 Reportable segment results excluding significant liquidated damages, current year acquisitions and stated at constant FY 2019 exchange rates (CER).
6 Calculated using results from Reportable Segments and Adjusted Interest, and excluding changes in fair value to contingent consideration.

  • Net system size growth of 5.6% (5.0% excluding Sands partnership in Macau SAR), the strongest in over a decade, with 65k room additions. Ongoing focus on the long-term health of established brands drove 18k removals, leaving 884k rooms across the global estate.
  • FY Comparable RevPAR: Global = (0.3)%; Americas = (0.1)% (US = (0.2)%); EMEAA = 0.3%; Greater China = (4.5)%. Performance was impacted by macro and geopolitical factors, increased supply growth ahead of demand in some markets, and ongoing unrest in Hong Kong SAR.
  • Operating profit from reportable segments up 4%; operating profit up 8% after System Fund result and exceptional items, which in 2019 include impairment charges to the UK leased portfolio and Kimpton management agreements.
  • Full year signings of 98k rooms (down 1% YoY), includes record performance in Greater China and EMEAA. Total pipeline now stands at 283k rooms.
  • Continued progress optimising our brand portfolio for future growth:
    • Six Senses: grown at pace with 10 signings since acquisition in February 2019; 18 properties now open
    • Kimpton: signed 11 further deals, growing portfolio to almost 100 open and pipeline hotels
    • Crowne Plaza: launched six flagship properties in key cities with new room and public space designs
    • voco: signed 33 hotels across 16 countries since launch; 12 open; plan to continue global expansion in 2020
    • Holiday Inn: opened >13k rooms; best ever full year performance for the brand
    • Holiday Inn Express: new guest room and public space designs open or committed to in >1,600 hotels
    • avid: 10 properties now open, with >80 more under construction or with planning approved

Keith Barr, Chief Executive Officer, IHG, said: “Our performance in 2019 reflects the continued successful execution of our strategy, with the investments we’re making in our brands, owner offer and enterprise capabilities accelerating net room openings and supporting sustainable long-term growth. These investments are being funded by our group-wide efficiency programme, which is on track to deliver $125m of annual savings, with the majority already realised and being reinvested across the business.

During the year we grew our estate by 5.6%, our highest rate in more than a decade, which helped deliver a 6% increase in underlying operating profit in a weaker RevPAR environment. We increased our ordinary dividend by 10%, and remain committed to returning surplus cash to our shareholders.

Led by strong demand for our established brands, we opened a record number of rooms, including our best ever performance for the Holiday Inn Brand Family, and we increased our share of signings in key markets globally. Future rooms growth will be further supported by our newer brands, with avid, Atwell Suites, Regent and Six Senses all attracting strong interest, and voco set to continue its global expansion in 2020, following an excellent performance in EMEAA.

Given the ongoing impact of coronavirus following the outbreak in China, our top priority remains the health and safety of our colleagues, guests and our partners on the ground, and we are doing all we can to support them at this difficult time.

The fundamentals of our industry remain strong, and our cash-generative, resilient fee-based model, underpinned by a commitment to operate a responsible business, gives us confidence to continue making the strategic investments that will drive our long-term growth.”

Download the full announcement of our 2019 Preliminary Results PDF 854Kb


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 884,000 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. More than 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/ihgcorporatewww.facebook.com/ihgcorporate and www.linkedin.com/company/intercontinental-hotels-group


Contact details

For further information, please contact: 

Investor Relations

Heather Wood; Sonya Ghobrial:
+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 on 18 February 2020 on the web address https://www.investis-live.com/ihg/5e2b011c8d57e8130019ead1/cdfs 

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

UK +44 (0) 203 936 2999 
US   +1 646 664 1960
All other locations  +44 (0) 203 936 2999
Participant Access Code  12 03 32

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 50 60 94