IHG Annual Report and Form 20-F 2015


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Summary of our Annual Report and Form 20-F 2015

An overview of 2015

Our business and achievements for the year

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From the Chairman

Patrick Cescau, Chairman

I have seen the strong momentum across the business, and have been struck by the energy that our people bring to work each day. ”

Patrick Cescau

Chairman’s statement (PDF 0.16Mb)

From the CEO

Richard Solomons, Chief Executive Officer

One of our key highlights of the year was welcoming Kimpton Hotels & Restaurants into the IHG family and seeing the business enjoy the best year in its history. ”

Richard Solomons
Chief Executive Officer

Chief Executive Officer’s review (PDF 0.18Mb)


Where we operate

We operate in nearly 100 countries globally.


Our business model

We predominantly franchise our brands to, and manage hotels on behalf of, third-party hotel owners; our focus is therefore on building preferred brands and strong revenue delivery systems.

4,219 Franchised hotels

(530,748 rooms)

806 Managed hotels

(211,403 rooms)

7 Owned and leased hotels

(2,217 rooms)

Business model Hotel
IHG capital
Employees Brand ownership, marketing and distribution
Franchised Third party Low Third party IHG
Managed Third party Low IHG and third party
Owned and leased IHG High IHG

Our performance

Total gross revenue in IHG’s System $24bn +5.3%

Group revenue $1,803m -3%

Total operating profit before exceptional items and tax $680m +4.5%

Revenue per available room (RevPAR) growth +4.4%

Total underlying operating profit growth $67m +11.5%

Fee revenue +8%

Full-year dividend 85¢/58p (+10%)

Our strategy for high-quality growth

We are focused on delivering high-quality growth, which for us means delivering consistent, sustained growth in cash flows and profits over the long term.

Through our Winning Model, we focus on value-creation through building preferred brands, leveraging scale and delivering revenue through the lowest-cost, direct channels. Our Targeted Portfolio, together with Disciplined Execution and a commitment to doing business responsibly, will drive superior returns for our shareholders.

We measure our performance with a set of carefully selected key performance indicators (KPIs), which monitor our success in achieving our strategy and delivering high-quality growth.



Disciplined Execution

Whilst doing business responsibly

Doing business responsibly

A commitment to operating our business responsibly underpins our entire strategy. It is brought to life through our culture and is embedded in all aspects of the way we work.

Group of IHG employees