InterContinental Hotels Group

Telephone:

01753 410 100

Activities:

InterContinental is the world’s largest hotel operator by bedroom numbers and it operates in the upscale, mid-market, budget and extended stay sectors. The group owns, leases, manages or franchises around 3,600 hotels with 537,500 bedrooms in nearly 100 countries.

It is the UK’s second largest hotel group after Whitbread and its Express by Holiday Inn is the third largest budget brand in the country.

Since its demerger from Six Continents (formerly Bass Plc) in 2003, IHG has been busy transforming itself from a hotel owner into a hotel management and franchise company.

The group operates under seven hotel brands:

  • InterContinental Hotels and Resorts (upscale)
  • Crowne Plaza Hotels and Resorts (upscale)
  • Holiday Inn Express/Express by Holiday Inn (midscale to budget)
  • Holiday Inn Hotels and Resorts (midscale)
  • Hotel Indigo (upscale brand at affordable prices)
  • Staybridge Suites (extended stay)
  • Candlewood Suites (US mid-market extended stay)

Chief Executive:

Andrew Cosslett

Key People:

Chairman: David Webster
Chief marketing officer: Peter Gowers
Finance director: Richard Solomons
President, Americas: Stevan Porter
Managing director, EMEA: Richard Hartman
Managing director, Asia Pacific: Patrick Imbardelli
Executive vice-president corporate services, company secretary and general counsel: Richard Winter
Executive vice-president, human resources: Tracy Robbins

Commentary:

By the close of 2005, IHG had nearly completed its plan to sell 175 owned hotels (and return £2.75b to shareholders) in order to focus on branding, management and franchising.

It had offloaded 145 properties for £2.3b (of which 126 remained in the IHG system) and had another 30 hotels on the market with a combined value of £600m. This left the group with 22 owned hotels worth £900m in total.

It intends to retain ownership of trophy hotels in strategic locations such as London, Paris, New York and Hong Kong.

New hotels in the pipeline include 54 Crowne Plazas, 27 InterContinentals, eight Hotel Indigos, 204 Holiday Inns, 429 Holiday Inn Express hotels, 79 Staybridge Suites and 83 Candlewood Suites.

Strategy:

“This is a strong set of results with a solid performance across all three of our regions. 2005 was a year of significant change for IHG and a number of key strategic milestones were met. We executed on our asset disposal programme and successfully floated Britvic, to become a pure play, high growth hotel company, managing and franchising hotels using our attractive stable of brands.

The record number of hotels we currently have under development gives us confidence we can grow this business and achieve
our rooms target as we look to the years ahead."

Source: preliminary results statement, 2 March 2006

Operating Data:

In the year to 31 December, 2005, the hotels division reported turnover of  £1.239b (2004: £1.498b). Operating profit was unchanged at £269m. 

In the half-year to 30 June, 2005, hotels reported turnover of £690m (2004: £735m). Operating profit was £153m (2004: £115m).

Full year results by region:

Americas: Turnover £445m, operating profit: £198m
EMEA: Turnover: £611m, operating profit £104m
Asia Pacific: Turnover: £141m, operating profit: £32m

By December 2005, IHG had 3,606 hotels of which 55 were owned or leased, 504 were managed and 3,047 were franchised.

Number of hotels by brand:

InterContinental: 137
Crowne Plaza: 235
Holiday Inn: 1,435
Holiday Inn Express: 1,590
Staybridge Suites by Holiday Inn: 87 (Americas)
Candlewood Suites:112 (Americas)
Hotel Indigo: 3 (Americas)

Number of hotels by region:

Americas: 2,834 hotels
Europe, Middle East and Africa: 610 hotels
Asia Pacific: 162 hotels

Number of UK hotels: 237 (of which only the InterContinental London is company-owned)

Number of employees: about 30,000 worldwide
Number of UK employees: 9,000 employed by IHG
Number of UK employees in IHG-branded hotels: 13,000 (including the staff of franchisees)

Financial Snapshot:

Full year

Turnover: £1.9b (2004: £2.2b)
Pre-tax profit: £284m (2004: £264m)

Half year

Turnover: £1.1b (2004: £1.06b)
Pre-tax profit: £166m (2004: £154m)

Financial year end: December 31 2005
Half-year end: 30 June 2005

These results cover both the hotel division and the soft drinks business of IHG.

Address:

67 Alma Road

Windsor,

UK