|
Financial summaryº
|
2011
|
2010
|
% Change YoY
|
||
|
Actual
|
CER²
|
CER & ex. LDs³
|
|||
|
Revenue
|
$1,768m
|
$1,628m
|
9%
|
7%
|
6%
|
|
Operating profit
|
$559m
|
$444m
|
26%
|
25%
|
21%
|
|
Total adjusted EPS
|
130.4¢
|
98.6¢
|
32%
|
||
|
Total basic EPS¹
|
159.2¢
|
101.7¢
|
57%
|
||
|
Total dividend per share
|
55.0¢
|
48.0¢
|
15%
|
||
|
Net debt
|
$538m
|
$743m
|
|||
|
Richard Solomons, Chief Executive of InterContinental Hotels Group PLC, said:
|
|
"The strength of our brands, underpinned by our global systems and scale, delivered 6.2% growth in revenue per available room (RevPAR) in the year. We have continued to outperform the industry in key markets such as the US and Greater China where RevPAR was up 7.9% and 10.7% respectively.
We are strengthening our business through developing our brand portfolio supported by targeted investment. We also ensure that our hotels with our best in class delivery systems are known for industry leading guest experiences delivered by talented people and dedicated owners.
Looking ahead, in spite of considerable uncertainty in the Eurozone, IHG is well positioned globally to benefit from positive long term industry trends and, in particular, growing demand in emerging markets. Our 15% dividend growth reflects the confidence we have in our ability to deliver high quality growth through market share and margin gains, due to our preferred brands, geographic diversity, robust balance sheet and scalable business model."
|
|
Driving Market Share
|
||
|
•
|
Total gross revenue* from hotels in IHG's system of $20.2bn, up 8%.
|
|
|
•
|
2011 global RevPAR growth of 6.2%, 6.9% excluding Egypt, Bahrain and Japan.
|
|
|
-
|
Americas 7.5% (US 7.9%); Europe 4.7%; AMEA 0.9% (5.5% ex Egypt, Bahrain, Japan); Greater China 10.7%.
|
|
|
-
|
2011 global rate growth of 2.5% and occupancy growth of 2.3%pts.
|
|
|
-
|
Fourth quarter global RevPAR growth of 4.6%, (5.2% ex Egypt, Bahrain and Japan) with rate up 2.8%.
|
|
|
•
|
Total system size of 658,348 rooms (4,480 hotels), up 2% year on year.
|
|
|
-
|
44,265 rooms (241 hotels) added to the system, including 6,986 rooms (2 hotels) from the first InterContinental Alliance Resorts and 4,796 rooms (25 hotels) managed on US army bases.
|
|
|
-
|
33,078 rooms (198 hotels) were removed, including 16,329 rooms (122 hotels) in relation to the Holiday Inn relaunch and 6,994 (43 hotels) which were scheduled to leave as a result of the HPT contract renegotiation.
|
|
|
-
|
Total pipeline of 180,484 rooms (1,144 hotels), of which 40% is under construction. Over one quarter of the pipeline is in Greater China, of which c.70% is under construction. Leading global pipeline share at 13%.
|
|
|
-
|
Signings of 55,424 rooms (356 hotels), in line with 2010. Includes 32,477 Holiday Inn brand family rooms.
|
|
|
-
|
Due to the continued restrictions on the availability of debt finance, net system growth for 2012 is currently expected to be in the region of 2%-3% as previously disclosed.
|
|
|
•
|
Building preferred brands
|
|
|
-
|
Holiday Inn relaunch continues to drive benefits with US RevPAR premiums to the upper midscale segment growing; premiums now sitting at 4%pts and 9%pts for Holiday Inn and Holiday Inn Express respectively.
|
|
|
-
|
Three phase Crowne Plaza repositioning underway, with third phase expected to complete by end of 2015.
|
|
|
-
|
Hotel Indigo and Holiday Inn Express brand growth supported by JV investments totalling $60m. These will increase the distribution of Hotel Indigo in New York and launch the Holiday Inn Express brand in India.
|
|
|
-
|
New brand launches for US midscale and China upper upscale are targeted for the first half of 2012.
|
|
|
•
|
Best in class delivery
|
|
|
-
|
69% of rooms revenue delivered through IHG's Channels or by PCR members direct to hotel (2010: 68%).
|
|
|
-
|
Industry leading innovative web and mobile strategy delivered 19% of rooms revenue through IHG's direct websites (2010:18%). Best Price Guarantee and Roomkey.com search engine launched in last 6 months.
|
|
|
Growing Margins
|
||
|
•
|
Strong cost management and scale benefits drive margin growth
|
|
|
-
|
Continued improvement in fee based margins* up 4.9%pts to 40.6%, c.1%pt on an underlying basis.
|
|
|
-
|
$261m (CER) regional and central costs are in line with expectations and up 1% on 2010. These were $268m on a reported basis and include $8m of above target short-term performance based incentive costs.
|
|
|
Current trading update
|
||||
|
•
|
January global RevPAR up 6.0%, with rate up 3.5%. Americas 7.7%, Europe 3.0%, AMEA 4.2%. Greater China growth of 1.2% reflects the shift of Chinese New Year into January in 2012 from February in 2011.
|
|||
|
º All figures are before exceptional items unless otherwise noted. See appendices 3 & 4 for financial headlines
|
¹ After exceptional items
|
|||
|
² CER = constant exchange rates
|
³ Excluding $16m significant liquidated damages in 2011
|
*See appendix 6 for definition
|
||
|
Highlights - in new regional structure
|
||||
|
Americas - Strong performance driven by franchise business
|
||||
|
RevPAR increased 7.5%; with 2.8% rate growth and fourth quarter RevPAR increased 6.6%. US RevPAR was up 7.9% in 2011, with 6.8% growth in the fourth quarter. On a total basis including the benefit of new hotels, US RevPAR grew 9.5% in the year, outperforming the industry up 8.2%.
Revenue increased 3% to $830m and operating profit increased 22% to $451m. After adjusting for owned hotel disposals and excluding (i) $10m managed liquidated damages receipt, (ii) $10m managed benefit year on year from the conclusion of a specific guarantee negotiation relating to one hotel and (iii) results from managed lease hotels*, revenue was up 7% and operating profit up 18%. This was driven by good RevPAR growth across the region, resulting in an 8% increase in franchise royalties, and strong trading at managed hotels. Owned profits benefitted by $4m year on year due to the cessation of depreciation of an asset held for sale in the year, but this was mostly offset by $3m of one-off reorganisation costs relating to one hotel. Regional overheads decreased by $8m, mainly due to a $6m year on year reduction in costs related to our self-insured healthcare benefit plan.
We signed 30,109 rooms and opened 27,107 rooms into the system (2010: 20,980 rooms opened). Openings included 6,986 rooms (2 hotels) from the first InterContinental Alliance Resorts, 4,796 rooms (25 hotels) managed on US army bases and 19 hotels outside the US, including InterContinental Vina del Mar, Chile; a Holiday Inn Resort in Acapulco, Mexico; and Canada's largest Holiday Inn. Signings included 15,349 rooms for the Holiday Inn brand family in the US, up 16% on the prior year, demonstrating the ongoing benefits from the relaunch.
|
||||
|
Europe -RevPAR growth across much of the year drives strong profit increase
|
|
RevPAR increased 4.7%, with 2.9% rate growth. RevPAR was down 0.2% in the fourth quarter reflecting the deterioration in macro economic conditions across Europe (Q4 RevPAR: UK down 0.7%, Germany down 0.3%).
Revenue increased 24% (19% at CER) to $405m and operating profit increased 33% (26% at CER) to $104m. After adjusting for a leased hotel disposal and excluding results from managed lease hotels*, revenue increased 10% and operating profit increased 34%. This was driven by strong RevPAR growth including 10.9% across the two owned hotels and an $8m increase in franchise royalties as a result of 4.0% RevPAR growth and a 3% increase in room count.
We signed 5,779 rooms (38 hotels), including 7 Crowne Plaza hotels, and 5 Hotel Indigo hotels (with the first Hotel Indigo for Russia, in St Petersburg and three in the UK). 6,167 rooms (37 hotels) were opened into the system, up 1,748 rooms on 2010, including 10 Crowne Plaza hotels and the InterContinental hotels in Porto and Moscow.
|
|
AMEA - Good underlying growth in the managed business
|
|
RevPAR increased 0.9%, with 1.6% growth in the fourth quarter. RevPAR grew 5.5% excluding Egypt (9 hotels) and Bahrain (2 hotels) where political unrest caused significant disruption and Japan (32 hotels) where the earthquake and resultant events negatively impacted growth. RevPAR grew strongly in several other Middle East markets, including 8.9% in Saudi Arabia and 5.6% in the United Arab Emirates, and across the wider AMEA region including 12.9% in South East Asia and 6.3% in Australia, New Zealand and the South Pacific.
AMEA revenue increased 1% (2% decline at CER) to $216m and operating profit increased 2% (2% decline at CER) to $84m. After adjusting for a $6m liquidated damages receipt and excluding the negative impact on trading from events in the Middle East, Japan and New Zealand, revenue increased 4% and operating profit increased 9%. This was due to strong RevPAR growth across much of the managed business, partly offset by $4m from the structural changes to certain management contract terms and a 1% net reduction in the room count.
We signed 7,424 rooms in the year, mainly within the Holiday Inn brand family (23 hotels or 5,037 rooms) including 5 Holiday Inn Express hotels as part of the Joint Venture deal with Duet Hotels in India. 2,907 rooms (10 hotels) were opened, mostly with the Crowne Plaza and Holiday Inn brands including the first two Crowne Plaza hotels in Vietnam (West Hanoi and Danang) and a second Holiday Inn resort in Phuket, Thailand.
|
|
Greater China - Increasing scale drives profit growth
|
|
RevPAR increased 10.7% with rate growth of 5.9%. RevPAR was up 17.4% excluding Shanghai, which was impacted by very strong comparatives for much of the year due to the 2010 World Expo. Greater China RevPAR grew 7.7% in the fourth quarter (up 11.3% excluding Shanghai), including 11.4% in December.
Revenue increased 15% (15% CER) to $205m and operating profit increased 24% (26% CER) to $67m. This was driven by 13.4% RevPAR growth at the InterContinental Hong Kong and $13m growth in managed profits due to strong RevPAR growth and 14% increase in room count (adding to a 13% increase in 2010).
We opened 8,084 rooms in the year, up on 2010, taking our open rooms in the region to 55,182, and strengthening our market leading position. Openings included 4 InterContinental hotels and 11 Crowne Plaza hotels, demonstrating the strength of these brands in Greater China.
Signings of 12,112 rooms were up on 2010, and takes our pipeline to 49,768 rooms, c.70% of which is under construction. Key signings included the Holiday Inn Macau with Sands China Ltd., which at 1,224 rooms will be the world's largest Holiday Inn, and Hotel Indigo Haitang Bay, the first resort location for the brand in the region.
|
|
*See appendix 6 for definition
|
|
Capital recycling strategy driving growth
|
|
The disposal process of InterContinental New York Barclay continues to be progressed. During the year we completed the disposal of Hotel Indigo San Diego, Staybridge Suites Cherry Creek, Holiday Inn Atlanta-Gwinnett Place, the Holiday Inn Express Essen lease and a hotel asset and partnership interest in Australia. Proceeds from these sales totalled $142m, 22% above book value.
In line with our strategy to recycle capital to drive growth in our brands, during 2011 we invested $93m in growth capital expenditure. This included a $12m equity stake in Summit Hotel Properties Inc. in the US with whom we have a hotel sourcing agreement; $11m in the joint venture which will take Holiday Inn Express into India; and a $25m in the joint venture to develop a Hotel Indigo on the Lower East side of Manhattan.
|
|
Interest, tax, cash flow and dividend
|
|
The interest charge for the period was flat at $62m as costs relating to our new syndicated bank facility offset the impact of lower levels of net debt.
The effective tax rate for 2011 is 24% (2010: 26%). The 2012 tax rate is expected to be in the high 20s, moving towards the low 30s in 2013.
Exceptional operating items before tax totalled a net credit of $35m. These comprise: credits of (i) $37m from the disposal of hotels (ii) $20m net impairment reversals (iii) $28m relating to the closure of the UK defined benefit pension scheme with effect from 1 July 2013 and (iv) a $9m UK VAT refund and charges of $37m in relation to a settlement of a commercial dispute in Europe and a $22m litigation provision in the Americas.
15% growth in the total dividend to 55.0¢ reflects a strong performance in 2011 and reinforces IHG's resilient, cash generative business model.
The Group refinanced its bank debt in November, putting in place a 5 year $1.07bn facility, which was substantially undrawn at the year end, providing certainty of funding until November 2016.
Strong free cash flow generation of $422m translated into a $205m reduction in net debt from the prior year to $538m (including the $209m finance lease on the InterContinental Boston). Our balance sheet remains robust, which will allow us to invest to accelerate growth and strengthen our brands.
|
|
Appendix 1: RevPAR Movement Summary
|
|||||||||
|
January 2012
|
Full Year 2011
|
Q4 2011
|
|||||||
|
RevPAR
|
Rate
|
Occ.
|
RevPAR
|
Rate
|
Occ.
|
RevPAR
|
Rate
|
Occ.
|
|
|
Group
|
6.0%
|
3.5%
|
1.3pts
|
6.2%
|
2.5%
|
2.3pts
|
4.6%
|
2.8%
|
1.1pts
|
|
Americas
|
7.7%
|
4.0%
|
1.8pts
|
7.5%
|
2.8%
|
2.8pts
|
6.6%
|
3.7%
|
1.6pts
|
|
Europe
|
3.0%
|
0.2%
|
1.5pts
|
4.7%
|
2.9%
|
1.2pts
|
(0.2)%
|
0.8%
|
(0.6)pts
|
|
AMEA
|
4.2%
|
2.5%
|
1.1pts
|
0.9%
|
1.3%
|
(0.2)pts
|
1.6%
|
3.2%
|
(1.2)pts
|
|
G. China
|
1.2%
|
9.2%
|
(3.6)pts
|
10.7%
|
5.9%
|
2.8pts
|
7.7%
|
3.9%
|
2.3pts
|
|
Appendix 2: Full Year System & Pipeline Summary (rooms)
|
|||||||
|
System
|
Pipeline
|
||||||
|
Openings
|
Removals
|
Net
|
Total
|
YoY%
|
Signings
|
Total
|
|
|
Group
|
44,265
|
(33,078)
|
11,187
|
658,348
|
2%
|
55,424
|
180,484
|
|
Americas
|
27,107
|
(24,284)
|
2,823
|
442,198
|
1%
|
30,109
|
84,450
|
|
Europe
|
6,167
|
(3,931)
|
2,236
|
99,885
|
2%
|
5,779
|
16,682
|
|
AMEA
|
2,907
|
(3,434)
|
(527)
|
61,083
|
(1)%
|
7,424
|
29,584
|
|
G. China
|
8,084
|
(1,429)
|
6,655
|
55,182
|
14%
|
12,112
|
49,768
|
|
Appendix 3: Quarter 4 financial headlines
|
||||||||||||
|
Operating Profit $m
|
Total
|
Americas
|
Europe
|
AMEA
|
G. China
|
Central
|
||||||
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|
|
Franchised
|
118
|
108
|
99
|
91
|
14
|
13
|
4
|
3
|
1
|
1
|
-
|
-
|
|
Managed
|
54
|
46
|
9
|
6
|
9
|
2
|
23
|
29
|
13
|
9
|
-
|
-
|
|
Owned & leased
|
32
|
32
|
4
|
5
|
11
|
11
|
1
|
2
|
16
|
14
|
-
|
-
|
|
Regional overheads
|
(32)
|
(35)
|
(12)
|
(17)
|
(10)
|
(9)
|
(5)
|
(6)
|
(5)
|
(3)
|
-
|
-
|
|
Profit pre central overheads
|
172
|
151
|
100
|
85
|
24
|
17
|
23
|
28
|
25
|
21
|
-
|
-
|
|
Central overheads
|
(35)
|
(41)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(35)
|
(41)
|
|
Group Operating profit
|
137
|
110
|
100
|
85
|
24
|
17
|
23
|
28
|
25
|
21
|
(35)
|
(41)
|
|
Appendix 4: Full year financial headlines
|
||||||||||||
|
Operating Profit $m
|
Total
|
Americas
|
Europe
|
AMEA
|
G. China
|
Central
|
||||||
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|
|
Franchised
|
511
|
458
|
431
|
392
|
65
|
55
|
12
|
8
|
3
|
3
|
-
|
-
|
|
Managed
|
208
|
156
|
52
|
21
|
26
|
17
|
87
|
88
|
43
|
30
|
-
|
-
|
|
Owned & leased
|
108
|
88
|
17
|
13
|
49
|
38
|
5
|
4
|
37
|
33
|
-
|
-
|
|
Regional overheads
|
(121)
|
(119)
|
(49)
|
(57)
|
(36)
|
(32)
|
(20)
|
(18)
|
(16)
|
(12)
|
-
|
-
|
|
Profit pre central overheads
|
706
|
583
|
451
|
369
|
104
|
78
|
84
|
82
|
67
|
54
|
-
|
-
|
|
Central overheads
|
(147)
|
(139)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(147)
|
(139)
|
|
Group Operating profit
|
559
|
444
|
451
|
369
|
104
|
78
|
84
|
82
|
67
|
54
|
(147)
|
(139)
|
|
Total***
|
Americas
|
Europe
|
AMEA
|
G. China
|
|||||||
|
Actual*
|
CER**
|
Actual*
|
CER**
|
Actual*
|
CER**
|
Actual*
|
CER**
|
Actual*
|
CER**
|
||
|
Growth/ (decline)
|
26%
|
25%
|
22%
|
22%
|
33%
|
26%
|
2%
|
(2)%
|
24%
|
26%
|
|
|
Exchange rates:
|
|||||||||||
|
GBP:USD
|
EUR:USD
|
* US dollar actual currency
|
|||||||||
|
2011
|
0.62
|
0.72
|
** Translated at constant 2010 exchange rates
|
||||||||
|
2010
|
0.65
|
0.76
|
*** After central overheads
|
||||||||
|
Appendix 6: Definitions
|
|
Total gross revenue: total room revenue from franchised hotels and total hotel revenue from managed, owned and leased hotels. It is not revenue attributable to IHG, as it is derived mainly from hotels owned by third parties. The metric is highlighted as an indicator of the scale and reach of IHG's brands.
Fee based margins: adjusted for owned and leased hotels, managed leases and individually significant liquidated damages payments.
Managed lease hotels: properties that are structured for legal reasons as operating leases but with the same characteristics as management contracts.
|
|
Appendix 7: Investor Information for 2011 final dividend
|
|||
|
Ex-dividend date:
|
21 March 2012
|
Record date:
|
23 March 2012
|
|
Payment date:
|
1 June 2012
|
Dividend payment:
|
Ordinary shares = 24.7 pence per share
|
|
ADRs = 39.0 cents per ADR
|
|||
|
For further information, please contact:
|
|||
|
Investor Relations (Catherine Dolton; Isabel Green):
|
+44 (0)1895 512176
|
||
|
Media Relations (Fiona Gornall, Kari Kerr):
|
+44 (0)1895 512426
|
+44 (0) 7770 736849
|
|
|
High resolution images to accompany this announcement are available for the media to download free of charge from www.vismedia.co.uk. This includes profile shots of the key executives.
|
|||
|
Presentation for Analysts and Shareholders:
A presentation with Richard Solomons (Chief Executive Officer) and Tom Singer (Chief Financial Officer) will commence at 9.30am (London time) on 14 February at Bank of America Merrill Lynch Financial Centre, 2 King Edward Street, London, EC1A 1HQ. There will be an opportunity to ask questions. The presentation will conclude at approximately 10.30am (London time).
There will be a live audio webcast of the results presentation on the web address www.ihg.com/prelims12. 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. There will also be a live dial-in facility:
|
|||
|
International dial-in:
|
+44 (0)20 7784 1036
|
||
|
Passcode:
|
8564080
|
||
|
US conference call and Q&A:
There will also be a conference call, primarily for US investors and analysts, at 9.00am (Eastern Standard Time) on 14 February with Richard Solomons (Chief Executive Officer) and Tom Singer (Chief Financial Officer). There will be an opportunity to ask questions.
|
|||
|
International dial-in:
|
+44 (0)20 7108 6370
|
||
|
Standard US dial-in:
|
+1 517 345 9004
|
||
|
US Toll Free:
|
+1 866 692 5726
|
||
|
Conference ID:
|
HOTEL
|
||
|
A recording of the conference call will also be available for 7 days. To access this please dial the relevant number below and use the access number 6447
|
|||
|
International dial-in:
|
+44 (0)20 7108 6275
|
||
|
Standard US dial-in:
|
+1 203 369 4715
|
||
|
US Toll Free:
|
+1 866 851 1515
|
||
|
Website:
The full release and supplementary data will be available on our website from 7.00 am (London time) on 14 February. The web address is www.ihg.com/prelims12. To watch a video of Tom Singer reviewing our results visit our YouTube channel at www.youtube.com/ihgplc.
|
|||
|
Notes to Editors:
IHG (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global organisation operating seven hotel brands including InterContinental® Hotels & Resorts, Hotel Indigo®, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express®, Staybridge Suites® and Candlewood Suites® . IHG also manages Priority Club® Rewards, the world's first and largest hotel loyalty programme with over 63 million members worldwide.IHG franchises, leases, manages or owns over 4,400 hotels and more than 658,000 guest rooms in nearly 100 countries and territories, and has more than 1,100 hotels in its development pipeline.
IHG expects to recruit around 90,000 new people worldwide across its estate over the next few years and is committed to gender balance throughout its business. We aspire to continue retaining a minimum of 25% female representation on the Board.InterContinental Hotels Group PLC is the Group's holding company and is incorporated in Great Britain and registered in England and Wales.
Visit www.ihg.com for hotel information and reservations and www.priorityclub.com for more on Priority Club Rewards. For our latest news, visit www.ihg.com/media, www.twitter.com/ihgplc or www.youtube.com/ihgplc.
|
|||
|
Cautionary note regarding forward-looking statements:
This announcement contains certain forward-looking statements as defined under US law (Section 21E of the Securities Exchange Act of 1934). These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements often use words such as 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe' or other words of similar meaning. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty. There are a number of factors that could cause actual results and developments to differ materially from those expressed in or implied by, such forward-looking statements. Factors that could affect the business and the financial results are described in 'Risk Factors' in the InterContinental Hotels Group PLC Annual report on Form 20-F filed with the United States Securities and Exchange Commission.
|
|||
|
12 months ended 31 December
|
||||
|
Group results
|
2011
|
2010
|
%
|
|
|
$m
|
$m
|
change
|
||
|
Revenue
|
||||
|
Americas
|
830
|
807
|
2.9
|
|
|
Europe
|
405
|
326
|
2.4
|
|
|
AMEA
|
216
|
213
|
1.4
|
|
|
Greater China
|
205
|
178
|
15.2
|
|
|
Central
|
112
|
104
|
7.7
|
|
|
____
|
____
|
_____
|
||
|
1,768
|
1,628
|
8.6
|
||
|
____
|
____
|
_____
|
||
|
Operating profit
|
||||
|
Americas
|
451
|
369
|
22.2
|
|
|
Europe
|
104
|
78
|
33.3
|
|
|
AMEA
|
84
|
82
|
2.4
|
|
|
Greater China
|
67
|
54
|
24.1
|
|
|
Central
|
(147)
|
(139)
|
(5.8)
|
|
|
____
|
____
|
_____
|
||
|
Operating profit before exceptional items
|
559
|
444
|
25.9
|
|
|
Exceptional operating items
|
35
|
15
|
133.3
|
|
|
___
|
___
|
____
|
||
|
594
|
459
|
29.4
|
||
|
Net financial expenses
|
(62)
|
(62)
|
-
|
|
|
___
|
___
|
____
|
||
|
Profit before tax
|
532
|
397
|
34.0
|
|
|
___
|
___
|
____
|
||
|
Earnings per ordinary share
|
||||
|
Basic
|
159.2¢
|
101.7¢
|
56.5
|
|
|
Adjusted
|
130.4¢
|
98.6¢
|
32.3
|
|
|
12 months ended 31 December
|
|||
|
2011
|
2010
|
%
|
|
|
Total gross revenue
|
$bn
|
$bn
|
change
|
|
InterContinental
|
4.4
|
4.2
|
4.8
|
|
Crowne Plaza
|
3.9
|
3.5
|
11.4
|
|
Holiday Inn
|
6.0
|
5.8
|
3.4
|
|
Holiday Inn Express
|
4.4
|
4.0
|
10.0
|
|
Staybridge Suites
|
0.6
|
0.5
|
20.0
|
|
Candlewood Suites
|
0.5
|
0.4
|
25.0
|
|
Other brands
|
0.4
|
0.3
|
33.3
|
|
____
|
____
|
____
|
|
|
Total
|
20.2
|
18.7
|
8.0
|
|
____
|
____
|
____
|
|
|
Hotels
|
Rooms
|
||||
|
Global hotel and room count
at 31 December
|
2011
|
Change
over 2010
|
2011
|
Change
over 2010
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
169
|
(2)
|
57,598
|
(831)
|
|
|
Crowne Plaza
|
387
|
(1)
|
105,104
|
(1,051)
|
|
|
Holiday Inn*
|
1,240
|
(7)
|
228,256
|
(1,861)
|
|
|
Holiday Inn Express
|
2,114
|
39
|
196,666
|
5,438
|
|
|
Staybridge Suites
|
179
|
(9)
|
19,567
|
(1,195)
|
|
|
Candlewood Suites
|
285
|
(3)
|
27,500
|
(753)
|
|
|
Hotel Indigo
|
39
|
1
|
4,564
|
16
|
|
|
Other
|
67
|
25
|
19,093
|
11,424
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
4,480
|
43
|
658,348
|
11,187
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
3,832
|
49
|
489,071
|
9,751
|
|
|
Managed
|
637
|
(2)
|
164,993
|
2,282
|
|
|
Owned and leased
|
11
|
(4)
|
4,284
|
(846)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
4,480
|
43
|
658,348
|
11,187
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
||||
|
Global pipeline
at 31 December
|
2011
|
Change
over 2010
|
2011
|
Change
over 2010
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
51
|
(9)
|
17,623
|
(1,751)
|
|
|
Crowne Plaza
|
108
|
(15)
|
34,643
|
(4,351)
|
|
|
Holiday Inn*
|
267
|
(46)
|
50,750
|
(6,755)
|
|
|
Holiday Inn Express
|
470
|
(24)
|
52,201
|
(1,018)
|
|
|
Staybridge Suites
|
95
|
(6)
|
10,026
|
(734)
|
|
|
Candlewood Suites
|
94
|
(26)
|
8,062
|
(2,444)
|
|
|
Hotel Indigo
|
59
|
(3)
|
7,179
|
(448)
|
|
|
Other
|
-
|
(2)
|
-
|
(6,874)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
1,144
|
(131)
|
180,484
|
(24,375)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
853
|
(117)
|
96,513
|
(17,427)
|
|
|
Managed
|
291
|
(14)
|
83,971
|
(6,948)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
1,144
|
(131)
|
180,484
|
(24,375)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
|||
|
Global pipeline signings
at 31 December
|
2011
|
Change
over 2010
|
2011
|
Change
over 2010
|
|
Total
|
356
|
37
|
55,424
|
(174)
|
|
____
|
____
|
_____
|
______
|
|
|
12 months ended 31 December
|
|||||
|
2011
|
2010
|
%
|
|||
|
Americas Results
|
$m
|
$m
|
change
|
||
|
Revenue
|
|||||
|
Franchised
|
502
|
465
|
8.0
|
||
|
Managed
|
124
|
119
|
4.2
|
||
|
Owned and leased
|
204
|
223
|
(8.5)
|
||
|
____
|
____
|
____
|
|||
|
Total
|
830
|
807
|
2.9
|
||
|
____
|
____
|
____
|
|||
|
Operating profit before exceptional items
|
|||||
|
Franchised
|
431
|
392
|
9.9
|
||
|
Managed
|
52
|
21
|
147.6
|
||
|
Owned and leased
|
17
|
13
|
30.8
|
||
|
____
|
____
|
_____
|
|||
|
500
|
426
|
17.4
|
|||
|
Regional overheads
|
(49)
|
(57)
|
14.0
|
||
|
____
|
____
|
____
|
|||
|
Total
|
451
|
369
|
22.2
|
||
|
____
|
____
|
____
|
|||
|
Americas Comparable RevPAR movement on previous year
|
12 months ended
31 December
2011
|
|
|
Franchised
|
||
|
Crowne Plaza
|
6.0%
|
|
|
Holiday Inn
|
6.3%
|
|
|
Holiday Inn Express
|
7.9%
|
|
|
All brands
|
7.2%
|
|
|
Managed
|
||
|
InterContinental
|
8.6%
|
|
|
Crowne Plaza
|
8.8%
|
|
|
Holiday Inn
|
9.9%
|
|
|
Staybridge Suites
|
8.0%
|
|
|
Candlewood Suites
|
8.1%
|
|
|
All brands
|
8.8%
|
|
|
Owned and leased
|
||
|
InterContinental
|
11.7%
|
|
|
Hotels
|
Rooms
|
||||
|
Americas hotel and room count
at 31 December
|
2011
|
Change
over 2010
|
2011
|
Change
over 2010
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
52
|
(4)
|
17,598
|
(1,522)
|
|
|
Crowne Plaza
|
188
|
(21)
|
50,002
|
(7,071)
|
|
|
Holiday Inn*
|
816
|
(2)
|
145,821
|
(1,754)
|
|
|
Holiday Inn Express
|
1,874
|
27
|
162,935
|
3,068
|
|
|
Staybridge Suites
|
174
|
(9)
|
18,820
|
(1,194)
|
|
|
Candlewood Suites
|
285
|
(3)
|
27,500
|
(753)
|
|
|
Hotel Indigo
|
33
|
(2)
|
3,973
|
(281)
|
|
|
Other brands
|
51
|
29
|
15,549
|
12,330
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
3,473
|
15
|
442,198
|
2,823
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
3,266
|
36
|
398,680
|
6,144
|
|
|
Managed
|
201
|
(18)
|
41,222
|
(2,626)
|
|
|
Owned and leased
|
6
|
(3)
|
2,296
|
(695)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
3,473
|
15
|
442,198
|
2,823
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
||||
|
Americas pipeline
at 31 December
|
2011
|
Change
over 2010
|
2011
|
Change
over 2010
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
5
|
-
|
1,340
|
-
|
|
|
Crowne Plaza
|
22
|
(5)
|
5,249
|
(420)
|
|
|
Holiday Inn*
|
158
|
(29)
|
22,051
|
(3,209)
|
|
|
Holiday Inn Express
|
372
|
(35)
|
34,360
|
(2,651)
|
|
|
Staybridge Suites
|
86
|
(10)
|
8,895
|
(1,221)
|
|
|
Candlewood Suites
|
94
|
(26)
|
8,062
|
(2,444)
|
|
|
Hotel Indigo
|
38
|
(8)
|
4,493
|
(1,240)
|
|
|
Other
|
-
|
(2)
|
-
|
(6,874)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
775
|
(115)
|
84,450
|
(18,059)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
765
|
(113)
|
82,287
|
(17,785)
|
|
|
Managed
|
10
|
(2)
|
2,163
|
(274)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
775
|
(115)
|
84,450
|
(18,059)
|
|
|
____
|
____
|
______
|
_____
|
||
|
12 months ended 31 December
|
|||||
|
2011
|
2010
|
%
|
|||
|
Europe results
|
$m
|
$m
|
change
|
||
|
Revenue
|
|||||
|
Franchised
|
86
|
76
|
13.2
|
||
|
Managed
|
118
|
70
|
68.6
|
||
|
Owned and leased
|
201
|
180
|
11.7
|
||
|
____
|
____
|
_____
|
|||
|
Total
|
405
|
326
|
24.2
|
||
|
____
|
____
|
_____
|
|||
|
Operating profit before exceptional items
|
|||||
|
Franchised
|
65
|
55
|
18.2
|
||
|
Managed
|
26
|
17
|
52.9
|
||
|
Owned and leased
|
49
|
38
|
28.9
|
||
|
____
|
____
|
_____
|
|||
|
140
|
110
|
27.3
|
|||
|
Regional overheads
|
(36)
|
(32)
|
(12.5)
|
||
|
____
|
____
|
_____
|
|||
|
Total
|
104
|
78
|
33.3
|
||
|
____
|
____
|
_____
|
|||
|
Europe comparable RevPAR movement on previous year
|
12 months ended
31 December
2011
|
|
|
Franchised
|
||
|
All brands
|
4.0%
|
|
|
Managed
|
||
|
All brands
|
5.5%
|
|
|
Owned and leased
|
||
|
InterContinental
|
10.9%
|
|
|
Hotels
|
Rooms
|
||||
|
Europe hotel and room count
at 31 December
|
2011
|
Change
over 2010
|
2011
|
Change
over 2010
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
30
|
-
|
9,664
|
(341)
|
|
|
Crowne Plaza
|
86
|
8
|
19,725
|
2,078
|
|
|
Holiday Inn
|
290
|
(8)
|
46,465
|
(1,313)
|
|
|
Holiday Inn Express
|
198
|
10
|
23,181
|
1,515
|
|
|
Staybridge Suites
|
3
|
-
|
443
|
-
|
|
|
Hotel Indigo
|
5
|
3
|
407
|
297
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
612
|
13
|
99,885
|
2,236
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
509
|
14
|
76,811
|
2,356
|
|
|
Managed
|
101
|
-
|
22,157
|
33
|
|
|
Owned and leased
|
2
|
(1)
|
917
|
(153)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
612
|
13
|
99,885
|
2,236
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
||||
|
Europe pipeline
at 31 December
|
2011
|
Change
over 2010
|
2011
|
Change
over 2010
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
5
|
(5)
|
1,310
|
(710)
|
|
|
Crowne Plaza
|
12
|
(3)
|
2,953
|
(935)
|
|
|
Holiday Inn
|
25
|
(4)
|
4,939
|
(878)
|
|
|
Holiday Inn Express
|
43
|
-
|
5,942
|
218
|
|
|
Staybridge Suites
|
2
|
-
|
283
|
-
|
|
|
Hotel Indigo
|
11
|
-
|
1,255
|
183
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
98
|
(12)
|
16,682
|
(2,122)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
82
|
(1)
|
11,999
|
(166)
|
|
|
Managed
|
16
|
(11)
|
4,683
|
(1,956)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
98
|
(12)
|
16,682
|
(2,122)
|
|
|
____
|
____
|
______
|
_____
|
||
|
12 months ended 31 December
|
|||||
|
2011
|
2010
|
%
|
|||
|
AMEA results
|
$m
|
$m
|
change
|
||
|
Revenue
|
|||||
|
Franchised
|
19
|
15
|
26.7
|
||
|
Managed
|
151
|
155
|
(2.6)
|
||
|
Owned and leased
|
46
|
43
|
7.0
|
||
|
____
|
____
|
_____
|
|||
|
Total
|
216
|
213
|
1.4
|
||
|
____
|
____
|
_____
|
|||
|
Operating profit before exceptional items
|
|||||
|
Franchised
|
12
|
8
|
50.0
|
||
|
Managed
|
87
|
88
|
(1.1)
|
||
|
Owned and leased
|
5
|
4
|
25.0
|
||
|
____
|
____
|
_____
|
|||
|
104
|
100
|
4.0
|
|||
|
Regional overheads
|
(20)
|
(18)
|
(11.1)
|
||
|
____
|
____
|
_____
|
|||
|
Total
|
84
|
82
|
2.4
|
||
|
____
|
____
|
_____
|
|||
|
AMEA comparable RevPAR movement on previous year
|
12 months ended
31 December
2011
|
|
|
Franchised
|
||
|
All Brands
|
1.7%
|
|
|
Managed
|
||
|
All Bands
|
0.6%
|
|
|
Hotels
|
Rooms
|
||||
|
AMEA hotel and room count
at 31 December
|
2011
|
Change
over 2010
|
2011
|
Change
over 2010
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
64
|
(2)
|
20,425
|
(193)
|
|
|
Crowne Plaza
|
61
|
3
|
16,921
|
932
|
|
|
Holiday Inn
|
77
|
(2)
|
18,032
|
(341)
|
|
|
Holiday Inn Express
|
8
|
(3)
|
1,857
|
(278)
|
|
|
Staybridge Suites
|
2
|
-
|
304
|
(1)
|
|
|
Other
|
16
|
(3)
|
3,544
|
(646)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
228
|
(7)
|
61,083
|
(527)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
54
|
(1)
|
12,617
|
1,257
|
|
|
Managed
|
172
|
(6)
|
47,890
|
(1,786)
|
|
|
Owned and leased
|
2
|
-
|
576
|
2
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
228
|
(7)
|
61,083
|
(527)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
||||
|
AMEA pipeline
at 31 December
|
2011
|
Change
over 2010
|
2011
|
Change
over 2010
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
19
|
(7)
|
5,094
|
(2,142)
|
|
|
Crowne Plaza
|
21
|
(5)
|
6,729
|
(1,605)
|
|
|
Holiday Inn
|
43
|
(13)
|
10,380
|
(3,229)
|
|
|
Holiday Inn Express
|
27
|
12
|
5,681
|
2,293
|
|
|
Staybridge Suites
|
7
|
4
|
848
|
487
|
|
|
Hotel Indigo
|
5
|
3
|
852
|
470
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
122
|
(6)
|
29,584
|
(3,726)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
4
|
(3)
|
852
|
(525)
|
|
|
Managed
|
118
|
(3)
|
28,732
|
(3,201)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
122
|
(6)
|
29,584
|
(3,726)
|
|
|
____
|
____
|
______
|
_____
|
||
|
12 months ended 31 December
|
|||||
|
2011
|
2010
|
%
|
|||
|
Greater China results
|
$m
|
$m
|
change
|
||
|
Revenue
|
|||||
|
Franchised
|
2
|
2
|
-
|
||
|
Managed
|
77
|
60
|
28.3
|
||
|
Owned and leased
|
126
|
116
|
8.6
|
||
|
____
|
____
|
_____
|
|||
|
Total
|
205
|
178
|
15.2
|
||
|
____
|
____
|
_____
|
|||
|
Operating profit before exceptional items
|
|||||
|
Franchised
|
3
|
3
|
-
|
||
|
Managed
|
43
|
30
|
43.3
|
||
|
Owned and leased
|
37
|
33
|
12.1
|
||
|
____
|
____
|
_____
|
|||
|
83
|
66
|
25.8
|
|||
|
Regional overheads
|
(16)
|
(12)
|
(33.3)
|
||
|
____
|
____
|
_____
|
|||
|
Total
|
67
|
54
|
24.1
|
||
|
____
|
____
|
_____
|
|||
|
Greater China comparable RevPAR movement on previous year
|
12 months ended
31 December
2011
|
|
|
Managed
|
||
|
All Brands
|
10.3%
|
|
|
Owned and leased
|
||
|
InterContinental
|
13.4%
|
|
|
Hotels
|
Rooms
|
||||
|
Greater China hotel and room count
at 31 December
|
2011
|
Change
over 2010
|
2011
|
Change
over 2010
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
23
|
4
|
9,911
|
1,225
|
|
|
Crowne Plaza
|
52
|
9
|
18,456
|
3,010
|
|
|
Holiday Inn
|
57
|
5
|
17,938
|
1,547
|
|
|
Holiday Inn Express
|
34
|
5
|
8,693
|
1,133
|
|
|
Hotel Indigo
|
1
|
-
|
184
|
-
|
|
|
Other
|
-
|
(1)
|
-
|
(260)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
167
|
22
|
55,182
|
6,655
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
3
|
-
|
963
|
(6)
|
|
|
Managed
|
163
|
22
|
53,724
|
6,661
|
|
|
Owned and leased
|
1
|
-
|
495
|
-
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
167
|
22
|
55,182
|
6,655
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
||||
|
Greater China pipeline
at 31 December
|
2011
|
Change
over 2010
|
2011
|
Change
over 2010
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
22
|
3
|
9,879
|
1,101
|
|
|
Crowne Plaza
|
53
|
(2)
|
19,712
|
(1,391)
|
|
|
Holiday Inn
|
41
|
-
|
13,380
|
561
|
|
|
Holiday Inn Express
|
28
|
(1)
|
6,218
|
(878)
|
|
|
Hotel Indigo
|
5
|
2
|
579
|
139
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
149
|
2
|
49,768
|
(468)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
2
|
-
|
1,375
|
1,049
|
|
|
Managed
|
147
|
2
|
48,393
|
(1,517)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
149
|
2
|
49,768
|
(468)
|
|
|
____
|
____
|
______
|
_____
|
||
|
12 months ended 31 December
|
||||
|
2011
|
2010
|
%
|
||
|
Central results
|
$m
|
$m
|
change
|
|
|
Revenue
|
112
|
104
|
7.7
|
|
|
Gross central costs
|
(259)
|
(243)
|
(6.6)
|
|
|
____
|
____
|
_____
|
||
|
Net central costs
|
(147)
|
(139)
|
(5.8)
|
|
|
_____
|
____
|
_____
|
||
|
12 months ended 31 December
|
||||
|
2011
|
2010
|
%
|
||
|
System Fund results
|
$m
|
$m
|
change
|
|
|
Assessment fees and contributions received from hotels
|
1,025
|
944
|
8.6
|
|
|
Proceeds from sale of Priority Club Rewards points
|
128
|
106
|
20.8
|
|
|
____
|
____
|
_____
|
||
|
1,153
|
1,050
|
9.8
|
||
|
_____
|
____
|
_____
|
||
|
·
|
proceeds from the disposal of hotels of $142m, including $71m from the sale of the Holiday Inn Burswood on 1 July 2011 and $55m from the sale of the Hotel Indigo San Diego on 17 June 2011; and
|
|
·
|
capital expenditure of $194m including a $12m equity stake in Summit Hotel Properties, Inc., $31m investment in joint ventures and a $37m deposit paid to a hotel owner in connection with the renegotiation of a management contract.
|
|
2011
|
2010
|
||
|
Net debt* at 31 December
|
$m
|
$m
|
|
|
Borrowings:
|
|||
|
US Dollar
|
715
|
715
|
|
|
Euro
|
-
|
100
|
|
|
Other
|
5
|
6
|
|
|
Cash
|
(182)
|
(78)
|
|
|
____
|
____
|
||
|
Net debt
|
538
|
743
|
|
|
____
|
____
|
||
|
Average debt levels
|
721
|
923
|
|
|
____
|
____
|
||
|
2011
|
2010
|
|
|
Facilities at 31 December
|
$m
|
$m
|
|
Committed
|
1,075
|
1,605
|
|
Uncommitted
|
79
|
53
|
|
____
|
____
|
|
|
Total
|
1,154
|
1,658
|
|
____
|
____
|
|
Interest risk profile of gross debt for major currencies
at 31 December
|
2011
%
|
2010
%
|
|
At fixed rates
|
100
|
100
|
|
Year ended 31 December 2011
|
Year ended 31 December 2010
|
||||||
|
Before
exceptional
items
|
Exceptional
items
(note 4)
|
Total
|
Before
exceptional
items
|
Exceptional
items
(note 4)
|
Total
|
||
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||
|
Continuing operations
|
|||||||
|
Revenue (note 3)
|
1,768
|
-
|
1,768
|
1,628
|
-
|
1,628
|
|
|
Cost of sales
|
(771)
|
-
|
(771)
|
(753)
|
-
|
(753)
|
|
|
Administrative expenses
|
(350)
|
(31)
|
(381)
|
(331)
|
(13)
|
(344)
|
|
|
Other operating income and expenses
|
11
|
46
|
57
|
8
|
35
|
43
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
658
|
15
|
673
|
552
|
22
|
574
|
||
|
Depreciation and amortisation
|
(99)
|
-
|
(99)
|
(108)
|
-
|
(108)
|
|
|
Impairment
|
-
|
20
|
20
|
-
|
(7)
|
(7)
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Operating profit (note 3)
|
559
|
35
|
594
|
444
|
15
|
459
|
|
|
Financial income
|
2
|
-
|
2
|
2
|
-
|
2
|
|
|
Financial expenses
|
(64)
|
-
|
(64)
|
(64)
|
-
|
(64)
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Profit before tax (note 3)
|
497
|
35
|
532
|
382
|
15
|
397
|
|
|
Tax (note 5)
|
(120)
|
48
|
(72)
|
(98)
|
(8)
|
(106)
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Profit for the year from continuing operations
|
377
|
83
|
460
|
284
|
7
|
291
|
|
|
Profit for the year from discontinued operations
|
-
|
-
|
-
|
-
|
2
|
2
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Profit for the year attributable to equity holders of the parent
|
377
|
83
|
460
|
284
|
9
|
293
|
|
|
====
|
====
|
====
|
====
|
====
|
====
|
||
|
Earnings per ordinary share
(note 6)
|
|||||||
|
Continuing operations:
|
|||||||
|
Basic
|
159.2¢
|
101.0¢
|
|||||
|
Diluted
|
155.4¢
|
98.3¢
|
|||||
|
Adjusted
|
130.4¢
|
98.6¢
|
|||||
|
Adjusted diluted
|
127.4¢
|
95.9¢
|
|||||
|
Total operations:
|
|||||||
|
Basic
|
159.2¢
|
101.7¢
|
|||||
|
Diluted
|
155.4¢
|
99.0¢
|
|||||
|
Adjusted
|
130.4¢
|
98.6¢
|
|||||
|
Adjusted diluted
|
127.4¢
|
95.9¢
|
|||||
|
====
|
====
|
====
|
====
|
||||
|
2011
Year ended
31 December
$m
|
2010
Year ended
31 December
$m
|
||
|
Profit for the year
|
460
|
293
|
|
|
Other comprehensive income
|
|||
|
Available-for-sale financial assets:
|
|||
|
Gains on valuation
|
15
|
17
|
|
|
Losses reclassified to income on impairment
|
3
|
1
|
|
|
Cash flow hedges:
|
|||
|
Losses arising during the year
|
-
|
(4)
|
|
|
Reclassified to financial expenses
|
4
|
6
|
|
|
Defined benefit pension plans:
|
|||
|
Actuarial losses, net of related tax credit of $13m (2010 $7m)
|
(19)
|
(38)
|
|
|
Change in asset restriction on plans in surplus and liability in respect of funding commitments, net of related tax credit of $7m (2010 $10m)
|
(4)
|
(38)
|
|
|
Exchange differences on retranslation of foreign operations, including related tax charge of $3m (2010 $1m credit)
|
(21)
|
(4)
|
|
|
Tax related to pension contributions
|
2
|
7
|
|
|
____
|
____
|
||
|
Other comprehensive loss for the year
|
(20)
|
(53)
|
|
|
____
|
____
|
||
|
Total comprehensive income for the year
|
440
|
240
|
|
|
====
|
====
|
||
|
Attributable to:
|
|||
|
Equity holders of the parent
|
439
|
240
|
|
|
Non-controlling interest
|
1
|
-
|
|
|
_____
|
_____
|
||
|
440
|
240
|
||
|
=====
|
=====
|
||
|
Year ended 31 December 2011
|
|||||
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
At beginning of the year
|
155
|
(2,659)
|
2,788
|
7
|
291
|
|
Total comprehensive income for the year
|
-
|
-
|
439
|
1
|
440
|
|
Issue of ordinary shares
|
8
|
-
|
-
|
-
|
8
|
|
Movement in shares in employee share trusts
|
-
|
8
|
(80)
|
-
|
(72)
|
|
Equity-settled share-based cost
|
-
|
-
|
29
|
-
|
29
|
|
Tax related to share schemes
|
-
|
-
|
7
|
-
|
7
|
|
Equity dividends paid
|
-
|
-
|
(148)
|
-
|
(148)
|
|
Exchange adjustments
|
(1)
|
1
|
-
|
-
|
-
|
|
____
|
____
|
____
|
____
|
____
|
|
|
At end of the year
|
162
|
(2,650)
|
3,035
|
8
|
555
|
|
====
|
====
|
====
|
====
|
====
|
|
|
Year ended 31 December 2010
|
|||||
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
At beginning of the year
|
142
|
(2,649)
|
2,656
|
7
|
156
|
|
Total comprehensive income for the year
|
-
|
16
|
224
|
-
|
240
|
|
Issue of ordinary shares
|
19
|
-
|
-
|
-
|
19
|
|
Movement in shares in employee share trusts
|
-
|
(32)
|
(26)
|
-
|
(58)
|
|
Equity-settled share-based cost
|
-
|
-
|
33
|
-
|
33
|
|
Tax related to share schemes
|
-
|
-
|
22
|
-
|
22
|
|
Equity dividends paid
|
-
|
-
|
(121)
|
-
|
(121)
|
|
Exchange adjustments
|
(6)
|
6
|
-
|
-
|
-
|
|
____
|
____
|
____
|
____
|
____
|
|
|
At end of the year
|
155
|
(2,659)
|
2,788
|
7
|
291
|
|
====
|
====
|
====
|
====
|
====
|
|
|
*
|
Other reserves comprise the capital redemption reserve, shares held by employee share trusts, other reserves, unrealised gains and losses reserve and currency translation reserve.
|
|
2011
31 December
|
2010
31 December
|
|
|
$m
|
$m
|
|
|
ASSETS
|
||
|
Property, plant and equipment
|
1,362
|
1,690
|
|
Goodwill
|
92
|
92
|
|
Intangible assets
|
308
|
266
|
|
Investment in associates and joint ventures
|
87
|
43
|
|
Retirement benefit assets
|
21
|
5
|
|
Other financial assets
|
156
|
135
|
|
Non-current tax receivable
|
41
|
-
|
|
Deferred tax assets
|
106
|
79
|
|
_____
|
_____
|
|
|
Total non-current assets
|
2,173
|
2,310
|
|
_____
|
_____
|
|
|
Inventories
|
4
|
4
|
|
Trade and other receivables
|
369
|
371
|
|
Current tax receivable
|
20
|
13
|
|
Derivative financial instruments
|
3
|
-
|
|
Cash and cash equivalents
|
182
|
78
|
|
_____
|
_____
|
|
|
Total current assets
|
578
|
466
|
|
Non-current assets classified as held for sale
|
217
|
-
|
|
______
|
______
|
|
|
Total assets (note 3)
|
2,968
|
2,776
|
|
=====
|
=====
|
|
|
LIABILITIES
|
||
|
Loans and other borrowings
|
(21)
|
(18)
|
|
Derivative financial instruments
|
-
|
(6)
|
|
Trade and other payables
|
(707)
|
(722)
|
|
Provisions
|
(12)
|
(8)
|
|
Current tax payable
|
(120)
|
(167)
|
|
_____
|
_____
|
|
|
Total current liabilities
|
(860)
|
(921)
|
|
_____
|
_____
|
|
|
Loans and other borrowings
|
(670)
|
(776)
|
|
Derivative financial instruments
|
(39)
|
(38)
|
|
Retirement benefit obligations
|
(188)
|
(200)
|
|
Trade and other payables
|
(497)
|
(464)
|
|
Provisions
|
(2)
|
(2)
|
|
Deferred tax liabilities
|
(97)
|
(84)
|
|
_____
|
_____
|
|
|
Total non-current liabilities
|
(1,493)
|
(1,564)
|
|
Liabilities classified as held for sale
|
(60)
|
-
|
|
_____
|
_____
|
|
|
Total liabilities
|
(2,413)
|
(2,485)
|
|
=====
|
=====
|
|
|
Net assets
|
555
|
291
|
|
=====
|
=====
|
|
|
EQUITY
|
||
|
Equity share capital
|
162
|
155
|
|
Capital redemption reserve
|
10
|
10
|
|
Shares held by employee share trusts
|
(27)
|
(35)
|
|
Other reserves
|
(2,893)
|
(2,894)
|
|
Unrealised gains and losses reserve
|
71
|
49
|
|
Currency translation reserve
|
189
|
211
|
|
Retained earnings
|
3,035
|
2,788
|
|
______
|
______
|
|
|
IHG shareholders' equity
|
547
|
284
|
|
Non-controlling interest
|
8
|
7
|
|
______
|
______
|
|
|
Total equity
|
555
|
291
|
|
=====
|
=====
|
|
2011
Year ended
31 December
|
2010
Year ended
31 December
|
||
|
$m
|
$m
|
||
|
Profit for the year
|
460
|
293
|
|
|
Adjustments for:
|
|||
|
Net financial expenses
|
62
|
62
|
|
|
Income tax charge
|
72
|
106
|
|
|
Depreciation and amortisation
|
99
|
108
|
|
|
Exceptional operating items
|
(35)
|
(15)
|
|
|
Gain on disposal of discontinued operations
|
-
|
(2)
|
|
|
Equity-settled share-based cost, net of payments
|
25
|
26
|
|
|
Other items
|
-
|
1
|
|
|
_____
|
_____
|
||
|
Operating cash flow before movements in working capital
|
683
|
579
|
|
|
Net change in loyalty programme liability and System Fund surplus
|
66
|
10
|
|
|
Other changes in net working capital
|
(31)
|
96
|
|
|
Utilisation of provisions
|
(19)
|
(54)
|
|
|
Retirement benefit contributions, net of cost
|
(44)
|
(27)
|
|
|
Cash flows relating to exceptional operating items
|
(32)
|
(21)
|
|
|
_____
|
_____
|
||
|
Cash flow from operations
|
623
|
583
|
|
|
Interest paid
|
(56)
|
(59)
|
|
|
Interest received
|
1
|
2
|
|
|
Tax paid on operating activities
|
(89)
|
(64)
|
|
|
_____
|
_____
|
||
|
Net cash from operating activities
|
479
|
462
|
|
|
_____
|
_____
|
||
|
Cash flow from investing activities
|
|||
|
Purchase of property, plant and equipment
|
(55)
|
(62)
|
|
|
Purchase of intangible assets
|
(48)
|
(29)
|
|
|
Investment in other financial assets
|
(50)
|
(4)
|
|
|
Investment in associates and joint ventures
|
(41)
|
-
|
|
|
Disposal of assets, net of costs
|
142
|
107
|
|
|
Proceeds from other financial assets
|
15
|
28
|
|
|
Tax paid on disposals
|
(1)
|
(4)
|
|
|
_____
|
_____
|
||
|
Net cash from investing activities
|
(38)
|
36
|
|
|
_____
|
_____
|
||
|
Cash flow from financing activities
|
|||
|
Proceeds from the issue of share capital
|
8
|
19
|
|
|
Purchase of own shares by employee share trusts
|
(75)
|
(53)
|
|
|
Dividends paid to shareholders
|
(148)
|
(121)
|
|
|
Decrease in borrowings
|
(119)
|
(292)
|
|
|
_____
|
_____
|
||
|
Net cash from financing activities
|
(334)
|
(447)
|
|
|
_____
|
_____
|
||
|
Net movement in cash and cash equivalents in the year
|
107
|
51
|
|
|
Cash and cash equivalents at beginning of the year
|
78
|
40
|
|
|
Exchange rate effects
|
(3)
|
(13)
|
|
|
_____
|
_____
|
||
|
Cash and cash equivalents at end of the year
|
182
|
78
|
|
|
=====
|
=====
|
||
|
1.
|
Basis of preparation
|
|
The audited consolidated financial statements of InterContinental Hotels Group PLC (the Group or IHG) for the year ended 31 December 2011 have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006. They have been prepared on a consistent basis using the accounting policies set out in the IHG Annual Report and Financial Statements for the year ended 31 December 2010. New accounting standards, amendments and interpretations applicable from 1 January 2011 have not had a material impact on the financial statements and there has been no requirement to restate prior year comparatives.
The completion of an internal reorganisation during the fourth quarter has resulted in a change to the Group's reportable segments. Comparatives have been restated to show the segmental information on a consistent basis.
|
|
2.
|
Exchange rates
|
|
The results of operations have been translated into US dollars at the average rates of exchange for the year. In the case of sterling, the translation rate is $1= £0.62 (2010 $1 = £0.65). In the case of the euro, the translation rate is $1 = €0.72 (2010 $1 = €0.76).
Assets and liabilities have been translated into US dollars at the rates of exchange on the last day of the year. In the case of sterling, the translation rate is $1= £0.65 (2010 $1 = £0.64). In the case of the euro, the translation rate is $1 = €0.77 (2010 $1 = €0.75).
|
|
3.
|
Segmental information
|
||
|
Revenue
|
|||
|
2011
|
2010
|
||
|
$m
|
$m
|
||
|
Americas
|
830
|
807
|
|
|
Europe
|
405
|
326
|
|
|
AMEA
|
216
|
213
|
|
|
Greater China
|
205
|
178
|
|
|
Central
|
112
|
104
|
|
|
____
|
____
|
||
|
Total revenue
|
1,768
|
1,628
|
|
|
====
|
====
|
||
|
All results relate to continuing operations.
|
|||
|
Profit
|
2011
$m
|
2010
$m
|
|
|
Americas
|
451
|
369
|
|
|
Europe
|
104
|
78
|
|
|
AMEA
|
84
|
82
|
|
|
Greater China
|
67
|
54
|
|
|
Central
|
(147)
|
(139)
|
|
|
____
|
____
|
||
|
Reportable segments' operating profit
|
559
|
444
|
|
|
Exceptional operating items (note 4)
|
35
|
15
|
|
|
____
|
____
|
||
|
Operating profit
|
594
|
459
|
|
|
Financial income
|
2
|
2
|
|
|
Financial expenses
|
(64)
|
(64)
|
|
|
____
|
____
|
||
|
Profit before tax
|
532
|
397
|
|
|
====
|
====
|
||
|
All results relate to continuing operations.
|
|||
|
Assets
|
2011
$m
|
2010
$m
|
|
|
Americas
|
908
|
891
|
|
|
Europe
|
816
|
826
|
|
|
AMEA
|
276
|
310
|
|
|
Greater China
|
388
|
385
|
|
|
Central
|
228
|
194
|
|
|
____
|
____
|
||
|
Segment assets
|
2,616
|
2,606
|
|
|
Unallocated assets:
|
|||
|
Non-current tax receivable
|
41
|
-
|
|
|
Deferred tax assets
|
106
|
79
|
|
|
Current tax receivable
|
20
|
13
|
|
|
Derivative financial instruments
|
3
|
-
|
|
|
Cash and cash equivalents
|
182
|
78
|
|
|
____
|
____
|
||
|
Total assets
|
2,968
|
2,776
|
|
|
====
|
====
|
|
4
|
Exceptional items
|
||||
|
2011
$m
|
2010
$m
|
||||
|
Continuing operations:
|
|||||
|
Exceptional operating items
|
|||||
|
Administrative expenses:
|
|||||
|
Litigation provision (a)
|
(22)
|
-
|
|||
|
Resolution of commercial dispute (b)
|
(37)
|
-
|
|||
|
Pension curtailment gain (c)
|
28
|
-
|
|||
|
Holiday Inn brand relaunch (d)
|
-
|
(9)
|
|||
|
Reorganisation and related costs (e)
|
-
|
(4)
|
|||
|
____
|
____
|
||||
|
(31)
|
(13)
|
||||
|
Other operating income and expenses:
|
|||||
|
Gain on disposal of hotels (f)
|
37
|
27
|
|||
|
VAT refund (g)
|
9
|
-
|
|||
|
Gain on sale of other financial assets (h)
|
-
|
8
|
|||
|
____
|
____
|
||||
|
46
|
35
|
||||
|
Impairment:
|
|||||
|
Impairment charges:
|
|||||
|
Property, plant and equipment (i)
|
(2)
|
(6)
|
|||
|
Other financial assets (j)
|
(3)
|
(1)
|
|||
|
Reversals of previously recorded impairment:
|
|||||
|
Property, plant and equipment (k)
|
23
|
-
|
|||
|
Associates (l)
|
2
|
-
|
|||
|
____
|
____
|
||||
|
20
|
(7)
|
||||
|
____
|
____
|
||||
|
35
|
15
|
||||
|
====
|
====
|
||||
|
Tax
|
|||||
|
Tax on exceptional operating items
|
5
|
(8)
|
|||
|
Exceptional tax credit (m)
|
43
|
-
|
|||
|
____
|
____
|
||||
|
48
|
(8)
|
||||
|
====
|
====
|
||||
|
Discontinued operations:
|
|||||
|
Gain on disposal of assets:
|
|||||
|
Tax credit (n)
|
-
|
2
|
|||
|
====
|
====
|
||||
|
4.
|
Exceptional items (continued)
|
|
|
These items are treated as exceptional by reason of their size or nature.
|
||
|
a)
|
Estimate of the amount potentially payable in respect of a prior year claim following an unfavourable court judgement in the Americas on 23 February 2011. Any final amount will not be known until the court process is complete.
|
|
|
b)
|
Relates to the settlement of a prior period commercial dispute in the Europe region.
|
|
|
c)
|
Arises from the closure of the UK defined benefit pension scheme to future accrual with effect from 1 July 2013.
|
|
|
d)
|
Related to costs incurred in support of the worldwide relaunch of the Holiday Inn brand family that was announced on 24 October 2007 and substantially completed in 2010.
|
|
|
e)
|
Primarily related to the closure of certain corporate offices together with severance costs arising from a review of the Group's cost base.
|
|
|
f)
|
Relates to the sale of three hotels in North America ($9m) and the sale of a hotel and related investment in Australia ($28m).
|
|
|
g)
|
Arises in the UK and relates to periods prior to 1996.
|
|
|
h)
|
Related to the gain on sale of an investment in the AMEA region.
|
|
|
i)
|
In 2011, relates to a hotel in Europe following a re-assessment of its recoverable amount, based on fair value less costs to sell. In 2010, related to a hotel in the Americas where the recoverable amount was based on value in use.
|
|
|
j)
|
Relates to available-for-sale equity investments subject to prolonged declines in their fair value below cost.
|
|
|
k)
|
Relates to the partial reversal of a prior year impairment charge recorded in respect of a North American hotel that was sold in June 2011 and to the full reversal of an impairment charge recorded in respect of another North American hotel.
|
|
|
l)
|
Relates to the reversal of a prior year impairment charge recorded in respect of a North American associate investment.
|
|
|
m)
|
Represents the release of provisions of $13m (2010 $7m) which are exceptional by reason of their nature relating to tax matters which have been settled or in respect of which the relevant statutory limitation period has expired, together with, in 2011, a $30m revision to the estimated tax impacts relating to an internal reorganisation carried out in 2010 (2010 $7m charge) including the recognition of additional deferred tax assets.
|
|
|
n)
|
Related to tax refunded in respect of a prior year hotel sale.
|
|
|
5.
|
Tax
|
|
The tax charge on the combined profit from continuing and discontinued operations, excluding the impact of exceptional items (note 4), has been calculated using a tax rate of 24% (2010 26%) analysed as follows.
|
|
Year ended 31 December
|
2011
|
2011
|
2011
|
2010
|
2010
|
2010
|
||
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
|||
|
Before exceptional items
|
||||||||
|
Continuing operations
|
497
|
(120)
|
24%
|
382
|
(98)
|
26%
|
||
|
Exceptional items
|
||||||||
|
Continuing operations
|
35
|
48
|
15
|
(8)
|
||||
|
Discontinued operations
|
-
|
-
|
-
|
2
|
||||
|
____
|
____
|
____
|
____
|
|||||
|
532
|
(72)
|
397
|
(104)
|
|||||
|
====
|
====
|
====
|
====
|
|||||
|
Analysed as:
|
||||||||
|
UK tax
|
(8)
|
34
|
||||||
|
Foreign tax
|
(64)
|
(138)
|
||||||
|
____
|
____
|
|||||||
|
(72)
|
(104)
|
|||||||
|
====
|
====
|
|||||||
|
6.
|
Earnings per ordinary share
|
|
Basic earnings per ordinary share is calculated by dividing the profit for the year available for IHG equity holders by the weighted average number of ordinary shares, excluding investment in own shares, in issue during the year.
Diluted earnings per ordinary share is calculated by adjusting basic earnings per ordinary share to reflect the notional exercise of the weighted average number of dilutive ordinary share options outstanding during the year.
Adjusted earnings per ordinary share is disclosed in order to show performance undistorted by exceptional items, to give a more meaningful comparison of the Group's performance.
|
|
2011
|
2011
|
2010
|
2010
|
|||
|
Continuing
operations
|
Total
|
Continuing
operations
|
Total
|
|||
|
Basic earnings per ordinary share
|
||||||
|
Profit available for equity holders ($m)
|
460
|
460
|
291
|
293
|
||
|
Basic weighted average number of ordinary shares (millions)
|
289
|
289
|
288
|
288
|
||
|
Basic earnings per ordinary share (cents)
|
159.2
|
159.2
|
101.0
|
101.7
|
||
|
====
|
====
|
====
|
====
|
|||
|
Diluted earnings per ordinary share
|
||||||
|
Profit available for equity holders ($m)
|
460
|
460
|
291
|
293
|
||
|
Diluted weighted average number of ordinary shares (millions)
|
296
|
296
|
296
|
296
|
||
|
Diluted earnings per ordinary share (cents)
|
155.4
|
155.4
|
98.3
|
99.0
|
||
|
====
|
====
|
====
|
====
|
|||
|
Adjusted earnings per ordinary share
|
||||||
|
Profit available for equity holders ($m)
|
460
|
460
|
291
|
293
|
||
|
Adjusting items (note 4):
|
||||||
|
Exceptional operating items ($m)
|
(35)
|
(35)
|
(15)
|
(15)
|
||
|
Tax on exceptional operating items ($m)
|
(5)
|
(5)
|
8
|
8
|
||
|
Exceptional tax credit ($m)
|
(43)
|
(43)
|
-
|
-
|
||
|
Gain on disposal of discontinued operations
|
-
|
-
|
-
|
(2)
|
||
|
____
|
____
|
____
|
____
|
|||
|
Adjusted earnings ($m)
|
377
|
377
|
284
|
284
|
||
|
Basic weighted average number of ordinary shares (millions)
|
289
|
289
|
288
|
288
|
||
|
Adjusted earnings per ordinary share (cents)
|
130.4
|
130.4
|
98.6
|
98.6
|
||
|
====
|
====
|
====
|
====
|
|||
|
Diluted weighted average number of ordinary shares (millions)
|
296
|
296
|
296
|
296
|
||
|
Adjusted diluted earnings per ordinary share (cents)
|
127.4
|
127.4
|
95.9
|
95.9
|
||
|
====
|
====
|
====
|
====
|
|||
|
Earnings per ordinary share from discontinued operations
|
|||
|
2011
cents per share
|
2010
cents per share
|
||
|
Basic
|
-
|
0.7
|
|
|
Diluted
|
-
|
0.7
|
|
|
====
|
====
|
||
|
The diluted weighted average number of ordinary shares is calculated as:
|
|||
|
2011
millions
|
2010
millions
|
||
|
Basic weighted average number of ordinary shares
|
289
|
288
|
|
|
Dilutive potential ordinary shares - employee share options
|
7
|
8
|
|
|
____
|
____
|
||
|
296
|
296
|
||
|
====
|
====
|
||
|
7.
|
Dividends
|
||||
|
2011
cents per share
|
2010
cents per share
|
2011
$m
|
2010
$m
|
||
|
Paid during the year:
|
|||||
|
Final (declared for previous year)
|
35.2
|
29.2
|
102
|
84
|
|
|
Interim
|
16.0
|
12.8
|
46
|
37
|
|
|
____
|
____
|
____
|
____
|
||
|
51.2
|
42.0
|
148
|
121
|
||
|
====
|
====
|
====
|
====
|
||
|
Proposed for approval at the Annual General Meeting (not recognised as a liability at 31 December)
|
|||||
|
Final
|
39.0
|
35.2
|
113
|
101
|
|
|
====
|
====
|
====
|
====
|
||
|
8.
|
Net debt
|
||
|
2011
|
2010
|
||
|
$m
|
$m
|
||
|
Cash and cash equivalents
|
182
|
78
|
|
|
Loans and other borrowings - current
|
(21)
|
(18)
|
|
|
Loans and other borrowings - non-current
|
(670)
|
(776)
|
|
|
Derivatives hedging debt values*
|
(29)
|
(27)
|
|
|
____
|
____
|
||
|
Net debt
|
(538)
|
(743)
|
|
|
====
|
====
|
||
|
Finance lease liability included above
|
(209)
|
(206)
|
|
|
====
|
====
|
||
|
*
|
Net debt includes the exchange element of the fair value of currency swaps that fix the value of the Group's £250m 6% bonds at $415m. An equal and opposite exchange adjustment on the retranslation of the £250m 6% bonds is included in non-current loans and other borrowings.
|
|
9.
|
Movement in net debt
|
|||
|
2011
|
2010
|
|||
|
$m
|
$m
|
|||
|
Net increase in cash and cash equivalents
|
107
|
51
|
||
|
Add back cash flows in respect of other components of net debt:
|
||||
|
Decrease in other borrowings
|
119
|
292
|
||
|
____
|
____
|
|||
|
Decrease in net debt arising from cash flows
|
226
|
343
|
||
|
Non-cash movements:
|
||||
|
Finance lease obligations
|
(3)
|
(2)
|
||
|
Exchange and other adjustments
|
(18)
|
8
|
||
|
____
|
____
|
|||
|
Decrease in net debt
|
205
|
349
|
||
|
Net debt at beginning of the year
|
(743)
|
(1,092)
|
||
|
____
|
____
|
|||
|
Net debt at end of the year
|
(538)
|
(743)
|
||
|
====
|
====
|
|||
|
10.
|
Commitments and contingencies
|
|
At 31 December 2011, the amount contracted for but not provided for in the financial statements for expenditure on property, plant and equipment and intangible assets was $14m (2010 $14m). The Group has also committed to invest up to $60m in two investments accounted for under the equity method of which $36m had been spent at 31 December 2011.
At 31 December 2011, the Group had contingent liabilities of $8m (2010 $8m).
In limited cases, the Group may provide performance guarantees to third-party hotel owners to secure management contracts. The maximum unprovided exposure under such guarantees is $42m (2010 $90m).
From time to time, the Group is subject to legal proceedings the ultimate outcome of each being always subject to many uncertainties inherent in litigation. The Group has also given warranties in respect of the disposal of certain of its former subsidiaries. It is the view of the Directors that, other than to the extent that liabilities have been provided for in these financial statements, such legal proceedings and warranties are not expected to result in material financial loss to the Group.
|
|
11.
|
Group financial statements
|
|
The preliminary statement of results was approved by the Board on 13 February 2012. The preliminary statements of results does not represent the full Group financial statements of InterContinental Hotels Group PLC and its subsidiaries which will be delivered to the Registrar of Companies in due course. The financial information for the year ended 31 December 2010 has been extracted from the IHG Annual Report and Financial Statements for that year as filed with the Registrar of Companies.
|
|
Auditor's review
|
|
|
The auditors, Ernst & Young LLP, have given an unqualified report under Chapter 3 of Part 16 of the Companies Act 2006 in respect of the full Group financial statements.
|
|
InterContinental Hotels Group PLC
|
||
|
(Registrant)
|
||
|
By:
|
/s/ C. Cox
|
|
|
Name:
|
C. COX
|
|
|
Title:
|
COMPANY SECRETARIAL OFFICER
|
|
|
Date:
|
14 February 2012
|
|