23 February 2021

Preliminary Results for the year to 31 December 2020

2020 2019 %Change %Change
Revenue2 $992m $2,083m (52)% (52)%
Revenue from fee business $823m $1,510m (45)% (45)%
Operating profit2 $219m $865m (75)% (75)%
Fee margin3 34.1% 54.1% (20.0)%pts
Adjusted EPS4 31.3¢ 303.3¢ (90)%
Total revenue $2,394m $4,627m (48)%
Operating (loss)/profit $(153)m $630m (124)%
Basic EPS (142.9)¢ 210.4¢ (168)%
Total dividend per share - 39.9¢ (100)%
Net debt
$2,529m $2,665m (5)%

Key metrics

  • $13.5bn total gross revenue (down 52%; (51)% at CER)
  • (52.5)% global FY RevPAR
  • (53.2)% global Q4 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.
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 2020 exchange rates (CER). Definitions for Non-GAAP measures can be found in the ‘Use of Non-GAAP measures’ section in the Business Review, along with reconciliations of these measures to the most directly comparable line items within the Group Financial Statements

  • FY RevPAR (52.5)%; variation by region reflects local market Covid-19 restrictions and recovery pace; Greater China recovery most advanced with Q4 RevPAR (18.2)%, Americas (49.5)%, EMEAA (70.5)%.
  • Continued outperformance in key markets, driven by portfolio mix and resilience of our business model.
  • $150m reduction in fee business costs; targeting ~$75m to be sustainable into 2021, while still investing for growth.
  • Operating profit from reportable segments down 75% to $219m before System Fund result of $(102)m and operating exceptionals of $(270)m, predominantly comprising charges already taken in H1 2020, including impairments to owned and leased hotels and acquired management agreements.
  • Strong cash management, resulting in free cash inflow of $29m, with an inflow in H2. Total available liquidity of $2.1bn (on pro forma basis for repayment of £600m UK Government CCFF at March 2021 maturity).
  • Global estate now 886k rooms (5,964 hotels), with +0.3% net system size growth (+2.2% excluding impact of SVC portfolio termination); opened 39k rooms (285 hotels), +4.5% gross growth.
  • Signed 56k rooms (360 hotels); Holiday Inn Brand Family half of all signings; conversions ~25% of all signings.
  • Global pipeline now 272k rooms (1,815 hotels); 11% share of industry pipeline vs 4% current market share.
  • Long-term attractiveness of our markets and segments remains; strategic priorities evolved to drive future growth.
  • New 2030 Responsible Business Plan, Journey to Tomorrow, sets out ambitious commitments including our environmental targets, support for communities and championing diversity, inclusion and equality.

Keith Barr, Chief Executive Officer, IHG Hotels & Resorts, said: “Since the very start of the pandemic, we have worked tirelessly to prioritise the health and safety of colleagues and customers, quickly protect our business and our thousands of hotel owners, and help support a strong recovery as travel returns. I would like to thank our hotel colleagues and owners for their incredible efforts, including all they have done to help our communities in such difficult times, bringing to life our purpose of True Hospitality for Good around the world.

2020 was clearly the most challenging year in our history, with Covid-19 heavily impacting demand across our industry. 2021 has begun with many of these challenges still in place, with more meaningful progress towards recovery for the industry unlikely until later in the year and dependent on global vaccine rollouts, lifting of restrictions and an acceleration in economic activity.

The shape of recovery remains varied globally, but we’ve continued to outperform the industry in key markets thanks to the strength of our teams, business model and segments in which we compete. This includes our industry-leading position in upper midscale, where demand remains stronger. To succeed in this environment, we’ve evolved our purpose as well as our strategic priorities, ensuring a focus on continued investment in our brands and digital capabilities to maximise revenue for our hotels and create more seamless guest experiences; keeping guests and owners at the heart of everything we do; and strengthening how we care for our people, communities and planet. These elements form the pillars of our corporate strategy, which together with our new 2030 Responsible Business Plan, will ensure we continue to successfully and sustainably grow our brands and business.

Despite so many challenges in 2020, the long-term confidence we share with our owners was reflected by another 285 hotels opening during the year and an average of almost one new signing a day. Conversion activity increased across our brand portfolio, including the launch of voco in the US and China, taking the brand to more than 20 countries. We’re building avid and Atwell Suites to be future brands of scale, while continuing to drive the growth of our established brands, with strong performances for Hotel Indigo and Kimpton, and our Holiday Inn Brand Family accounting for 60% of all openings and half of all signings in 2020.

Having demonstrated resilience and outperformed in 2020, we continue to work closely with owners to capture demand, alongside investing to capitalise on our industry’s long-term growth prospects. Our preferred brands in attractive markets and segments, even stronger technology and loyalty platforms, and a substantial proportion of our pipeline being under construction, give us confidence in our ability to achieve industry-leading net rooms growth as the market recovers.”

PDF 1.35MbDownload the full announcement of our 2020 Preliminary Results 


About IHG®

IHG Hotels & Resorts [LON:IHG, NYSE:IHG (ADRs)] is a global hospitality company, with a purpose to provide True Hospitality for Good.


With a family of 16 hotel brands and IHG Rewards, one of the world’s largest hotel loyalty programmes, IHG has nearly 6,000 open hotels in more than 100 countries, and a further 1,800 due to open over the next five years.

InterContinental Hotels Group PLC is the Group’s holding company and is incorporated in Great Britain and registered in England and Wales. Approximately 350,000 people work across IHG's hotels and corporate offices globally.


Visit www.ihg.com for hotel information and reservations and www.ihgrewards.com for more on IHG Rewards Club. For our latest news, visit our Newsroom and follow us on LinkedIn, Facebook and Twitter.


Contact details

For further information, please contact: 

Investor Relations

Stuart Ford; Rakesh Patel; Kavita Tatla
+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 and Group Head of Strategy, will commence at 9:30am (London time) on 23 February 2021 and can be accessed at www.ihgplc.com/en/investors/results-and-presentations or directly on https://www.investis-live.com/ihg/601020452fb49a0a006e5b57/ndps

For analysts and shareholders 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   +1 855 979 6654
All other locations  +44 (0) 203 936 2999
Participant Access Code  37 47 52

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, accessed at www.ihgplc.com/en/investors/results-and-presentations.

An audio replay will also be available for 7 days using the following details:

UK +44 (0) 203 936 3001
All other locations +44 (0) 203 936 3001
Participant Access Code 60 30 28