InterContinental Hotels Group PLC · LSE:IHG

InterContinental Hotels — Investor Presentation (March 2015)

80 slides from InterContinental Hotels's investor presentation, March 2015

  1. Slide 1: Investor Presentation

    Hotel Wilshire, a Kimpton Hotel, Los Angeles Investor Presentation March 2015 IHG© 1

  2. Slide 2: Table of contents

    Table of contents 1. Introduction to IHG p3 2. Preferred brands p21 3. Technology roadmap p45 4. Regional performance p53 Appendix: Further financial information p67 IHG© 2

  3. Slide 3: Introduction to IHG

    Holiday Inn, Sanya Bay, China Holiday Inn Express, Yancheng’ China Introduction to IHG IHG© 3

  4. Slide 4: IHG has a consistently executed, winning strategy for high quality growth

    IHG has a consistently executed, winning strategy for high quality growth Value creation: superior shareholder returns Value creation: Superior shareholder returns Winning Model Targeted Portfolio Attractive markets Highest opportunity segments Managed & franchised model - Scale and efficiency of op

  5. Slide 5: IHG's portfolio of preferred brands is at the heart of our strategy

    IHG’s portfolio of preferred brands, supported by consumer insight, is at the heart of our strategy Luxury Price Point Midscale Wellbeing Family Time Romantic Getaway Short Break Experience Rest & Go Mixing Business with Pleasure Business Productivity Building Business Interactions Social Identity I

  6. Slide 6: IHG's asset-light business model delivers high quality income

    IHG’s asset-light business model delivers high quality income Highest quality revenue stream • c.85% of IHG’s fee revenues are derived from hotel revenues • c.15% are derived from hotel profits IHG benefits from industry upside, but is more resilient in a downturn Franchised Managed Owned & Leased 8

  7. Slide 7: IHG's strong track record of delivery

    IHG’s strong track record of delivery Rooms Growth Room Revenue Growth (2004-14Growth Rooms CAGR) MarketCAGR) (2004-14 share (2004-13 CAGR) Increased scale 4.7% 5.4% 2.2% 2.9% Global Industry IHG Global Industry IHG Fees asFee-based % of Operating Profit ROCE business (2004 vs 2014) ROCE vs 2014) (2

  8. Slide 8: Global business with growth focused on priority markets

    Global business with growth focused on priority markets IHG is a global business managed across four regions with presence in 100 countries… Americas Europe AMEA Greater China Operating Profit (FY 2014) 68% 11% 10% 11% Pipeline Share (Q4 2014) 44% 10% 18% 28% …future growth is focused on 10 priority

  9. Slide 9: High-quality asset-light pipeline drives future growth

    High-quality asset-light pipeline drives future growth 194k room active pipeline – key statistics Key statistics Pipeline is key driver of future growth Proportion of pipeline (Q4 2014): Scale of pipeline reflects strong, long-term owner relationships Asset-light >99% • 194k room active pipeline • T

  10. Slide 10: 2014: 3.4% net system size growth (best since 2009)

    2014: 3.4% net system size growth (best since 2009) - 710k rooms open (722k incl. Kimpton) Franchised Managed Owned & Leased Total Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms InterContinental 27 7,553 22 8,920 1 424 50 16,897 Crowne Plaza 170 44,875 11 3,491 0 0 181 48,366 Holiday Inn 751 13

  11. Slide 11: 2014: 70k rooms signed into our 194k room pipeline

    2014: 70k rooms signed (highest in 6 years) into our 194k room pipeline (197k including Kimpton) Franchised Managed Owned & Leased Total Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms InterContinental 2 447 5 1,890 0 0 7 2,337 Crowne Plaza 15 2,687 3 519 0 0 18 3,206 Holiday Inn 135 19,210 4 94

  12. Slide 12: IHG's $1.5bn System Fund supports brand marketing and revenue delivery

    IHG’s $1.5bn(1) System Fund supports our brand marketing and our revenue delivery system Brands Sources of Income Sources of Spend Marketing & Reservations Advertising & Marketing Assessment ~30% ~3.0% of rooms revenue IHG Rewards Club Point Sales Distribution ~40% $1.5bn ~4.75% IHG Rewards Club bil

  13. Slide 13: IHG Rewards Club and digital innovation drive direct channel delivery

    IHG Rewards Club and digital innovation drive direct channel delivery 2014 channel Building member base enhances direct revenue1 revenue contribution 84m+ IHG Rewards Club members deliver ~40% 71% of rooms revenue • Contribute ~70% of digital & voice revenue 13% OTA • 3.5x more likely to use direct

  14. Slide 14: 2014 highlights - delivering our winning strategy

    2014 highlights - delivering our winning strategy Delivered • RevPAR up 6.1% excellent financial • Fee revenues up 7% performance • Underlying operating profit up 10% Built and • 3.4% net system size growth leveraged scale • Fee margins up 1.5%pts to 44.7% • Acquisition of Kimpton Hotels & Restauran

  15. Slide 15: Strong underlying financial performance

    Strong underlying financial performance Reported Underlying1 Full year 2014 Full year 2013 % change % change Revenue $1,858m $1,903m (2)% 6% Fee Revenue2 $1,255m $1,176m 7% 7% Operating profit $651m $668m (3)% 10% Interest $(80)m $(73)m 10% Tax rate3 31% 29% 2%pts Adjusted EPS4 158.3¢ 158.3¢ - 12% W

  16. Slide 16: Long-term disciplined approach to capital allocation

    Long-term disciplined approach to capital allocation maintains flexibility and maximises returns Efficient balance sheet with an investment grade credit rating • 2.0 to 2.5x net debt / EBITDA • Towards top end in favourable economic conditions • Currently 2.6x post Kimpton acquisition Reduce asset i

  17. Slide 17: Capital expenditure philosophy

    Capital expenditure philosophy Medium-term per annum capital expenditure guidance – Gross: up to $350m1; Net ~$150m1 Maintenance capex & key money • Hotel maintenance reducing in line Medium term p.a. 2014 with asset intensity Maintenance $60m - $85m $101m O&L Hotel maintenance • Key money deployed

  18. Slide 18: Shareholder returns – consistent ordinary dividend growth and special dividends

    Shareholder returns – consistent ordinary dividend growth and special dividends Total shareholder returns of over $1.0bn in 2014 • Proposed total dividend of 77¢, 10% growth in 2014, 11% CAGR since 2004 • Special dividends and share buybacks of $0.9bn completed in 2014 Annual ordinary dividend (¢ pe

  19. Slide 19: IHG is a highly cash generative business with a disciplined approach to capital allocation

    IHG is a highly cash generative business with a disciplined approach to capital allocation • Net capital expenditure of $203m covered ~3x by underlying cash from operations • Shareholder returns funded by operations, disposals, and efficient balance sheet Cash inflows 2014 sources and uses of cash (

  20. Slide 20: IHG has a long-term track record of shareholder value creation since demerger

    IHG has a long-term track record of shareholder value creation since demerger in 2003 Consistent track • 11% annualised ordinary dividend growth record for EPS and dividend growth • Dividend maintained through downturn • Over 190 hotel disposals and +$6bn proceeds Execution of asset light strategy •

  21. Slide 21: Preferred Brands

    Hotel Monaco, a Kimpton Hotel, Philadelphia Preferred Brands IHG© 21

  22. Slide 22: 2014 highlights - Four levers of growth for our brand portfolio

    2014 highlights - Four levers of growth for our brand portfolio • 2014 growth milestones achieved: 400th Crowne Plaza; 200th Strengthen Staybridge Suites; 60th Hotel Indigo in its 10th anniversary year existing brands • Holiday Inn Brand Family and InterContinental Hotels & Resorts largest brands in

  23. Slide 23: IHG's portfolio of preferred brands

    IHG’s portfolio of preferred brands Luxury Price Point Midscale Wellbeing Family Time Romantic Getaway Short Break Experience Rest & Go Mixing Business with Pleasure Business Productivity Building Business Interactions Social Identity IHG© 23

  24. Slide 24: Holiday Inn Brand Family – World's only global mainstream hotel brand

    Holiday Inn Brand Family – World’s only global mainstream hotel brand • Largest global hotel brand with largest global pipeline Unprecedented • 2x larger than nearest competitor scale • Only global brand with meaningful presence outside of US - 20% share of non-US open rooms in segment • Brand debut

  25. Slide 25: 2014 growth in new markets

    2014 growth in new markets Holiday Inn Express, Nicaragua Holiday Inn Express, Clarke Quay, Singapore Holiday Inn Resort, Sanya Bay, China Holiday Inn Express, Voronezh, Russia IHG© 25

  26. Slide 26: Holiday Inn Brand Family – Continuing evolution of guest experience

    Holiday Inn Brand Family – Continuing evolution of guest experience • Open lobby delivered in 5 markets across Europe Holiday Inn - Rollout continuing into 2015 Brand Innovation • US restaurant concept (Burger Theory) expanding to new locations - Initial pilot hotel has seen 30%+ increase in F&B rev

  27. Slide 27: High quality growth in the US drives Holiday Inn brand family RevPAR premium

    High quality growth in the US drives Holiday Inn brand family RevPAR premium • 28% share of US upper midscale room openings, 7% ahead of nearest competitor1 • RevPAR growth out performance from recent openings • Rate driven $5 premium to industry segment 2014 US comparable RevPAR growth for recent 2

  28. Slide 28: InterContinental Hotels & Resorts – Momentum behind world's largest luxury brand

    InterContinental Hotels & Resorts – Momentum behind world’s largest luxury brand • 2x larger than nearest competitor Unrivalled global luxury brand • Voted “World’s Leading Hotel Brand” in World Travel Awards for 6th consecutive year • 8 iconic openings and 11 signings Global Highlights - New openin

  29. Slide 29: Landmark openings and signings

    Landmark openings and signings IHG© 29

  30. Slide 30: Crowne Plaza – Making Business Travel Work

    Crowne Plaza – Making Business Travel Work • Opened 400th Crowne Plaza globally Leading global upscale brand • Pre eminent 5-star hotel brand in Greater China with more than 115 open and pipeline hotels • Total revenue up 5% Strong 2014 - Americas revenue up 10%, largest annual increase since 2006 p

  31. Slide 31: Next Generation Guest Room – Unique and innovative

    Next Generation Guest Room – Unique and innovative Next Generation Guest Room, Floor Plan IHG© 31

  32. Slide 32: HUALUXE Hotels and Resorts – Industry first in an untapped market

    HUALUXE Hotels and Resorts – Industry first in an untapped market • First global hotel brand designed specifically Innovative brand for Chinese guest developed for • Based on four Chinese guest priorities – tradition, rejuvenation, Chinese guest status recognition and enabling spaces • Developed in

  33. Slide 33: First openings in the heart of China

    First openings in the heart of China OPEN & PIPELINE HOTELS BEIJING SHANGHAI CHINA NANCHANG ● Opening in H1 2015 ● Population: 5.0m* ● High tech zone and gateway to SE China YANGJIANG ● Opened February ● Population: 2.8m* HUALUXE Hotel & Resort, Nanchang Open hotels ● Popular leisure and Pipeline ho

  34. Slide 34: EVEN Hotels – first two hotels in Norwalk and Rockville

    EVEN Hotels – first two hotels in Norwalk and Rockville Both hotels opened in June 2014 Locations chosen to demonstrate strong comparable performance to owners Excellent initial guest feedback on both IHG and third party review sites1 • Norwalk: 4.5 out of 5 (IHG); #1 out of 14 (3rd party) • Rockvil

  35. Slide 35: EVEN Hotels – addressing an unmet consumer need

    EVEN Hotels – addressing an unmet consumer need Cork & Kale Restaurant Athletic Studio Bedroom Eat Well Social Area Well-come Island IHG© 35

  36. Slide 36: Hotel Indigo – Delivering quality openings and signings

    Hotel Indigo – Delivering quality openings and signings • RevPAR premium to segment doubled since 2012 Strong US business • Entering high RevPAR markets • Best year for signings since 2008 • Tripled non-US business in past 3 years Entering attractive • 2014 debut in prime European gateway cities glo

  37. Slide 37: Recent openings – distinctive and authentic neighbourhoods

    Recent openings – distinctive and authentic neighbourhoods Hotel Indigo, St Petersburg Hotel Indigo, Paris Hotel Indigo, Manhattan Financial District Hotel Indigo, Bangkok Wireless Road IHG© 37

  38. Slide 38: Kimpton hotels & restaurants – Good progress post acquisition

    Kimpton hotels & restaurants – Good progress post acquisition • Transaction completed on 16 January 2015 Recently closed • Largest independent boutique operator acquisition • 62 open hotels, 16 pipeline hotels at closing • Purchase price of $430m • Creates world’s largest boutique hotel business • F

  39. Slide 39: Unique and distinctive hotel portfolio

    Unique and distinctive hotel portfolio Hotel Monaco, a Kimpton Hotel, Philadelphia Cypress Hotel, a Kimpton Hotel, California Epic Hotel, a Kimpton Hotel, Miami FireSky Resort & Spa, a Kimpton Hotel, Scottsdale IHG© 39

  40. Slide 40: Kimpton's hotels are located in the most attractive markets in the United States

    Kimpton’s hotels are located in the most attractive markets in the United States Seattle & Chicago Portland (5 Hotels) (7 Hotels) New York & Boston San Francisco (7 Hotels) Bay Area (10 Hotels) Washington DC (8 Hotels) Southern California (11 Hotels) Florida (5 Hotels) Existing Properties Pipeline P

  41. Slide 41: EBITDA expected to double in 2017 from opening of pipeline and cost savings

    EBITDA expected to double in 2017 from opening of pipeline and cost savings Strong historical comparable Expect EBITDA to double for Excellent 5-year track record1 RevPAR growth1 2017 financial year 9.0% 12.4% 12.4% 7.7% 6.8% $39m 4.0% 5 year Q3 2014 Q1-Q3 2014 System System Management average size

  42. Slide 42: Staybridge Suites – Fastest growing extended stay brand

    Staybridge Suites – Fastest growing extended stay brand Brand 50 100 200 launch hotels hotels hotels1 1998 2002 2003 2007 2012 2014 $228m Investment Capital recycled behind 19 hotels • First North American extended stay brand to launch in the UK • Total Gross Revenue : ~$700m • 38 hotels signed in 2

  43. Slide 43: Candlewood Suites – Demonstrating IHG's ability to acquire and grow a brand

    Candlewood Suites – Demonstrating IHG’s ability to acquire and grow a brand Candlewood hotel growth since 2004 +11% CAGR 312 322 288 299 285 254 204 158 130 109 112 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 • North American, extended stay focus • ‘Relaxed, casual, home-like experience’

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    Page intentionally left blank IHG© 44

  45. Slide 45: Technology Roadmap

    EVEN Hotels, Norwalk Technology Roadmap IHG© 45

  46. Slide 46: Our approach to technology

    Our approach to technology Dream Plan Book Stay Share Insight into guest needs across the entire Guest Journey • Know the market and leverage current trends to enhance the guest experience • Understanding needs of different demographics, e.g. Boomers vs. Millennials • Own the ‘stay’ experience • Foc

  47. Slide 47: Technology is changing engagement and ownership of the customer across the guest journey

    Technology is changing engagement and ownership of the customer across the guest journey Mobile Social media Personalisation Internet of things IHG© 47

  48. Slide 48: IHG has led the industry to create a powerful distribution platform

    IHG has led the industry to create a powerful distribution platform • 1st computerised reservation system History of hotel • 1st online bookings industry innovation and firsts • 1st to introduce best price guarantee • 1st to have apps on all mobile platforms • Websites in 16 languages Strong direct

  49. Slide 49: Our technology roadmap drives market leading innovation across the guest journey

    Our technology roadmap drives market leading innovation across the guest journey Dream Plan Book Stay Share Digital Connect and engage with guests throughout the journey and broaden 1 content role of the brand Interface with customers 2 Property level capabilities Robust and efficient in hotel execu

  50. Slide 50: Enhanced digital content is growing IHG direct channel revenue contribution

    1 Enhanced digital content is growing Digital content 3 IHG direct channel revenue contribution Data & analytics Dream Plan Book Stay Share Targeted digital • Efficient digital marketing platform enables better guest marketing targeting at the dream and plan stage Tailored offerings • Personalised l

  51. Slide 51: Enhanced digital content is growing IHG direct channel revenue contribution

    1 Enhanced digital content is growing Digital content 2 IHG direct channel revenue contribution Property level capabilities Dream Plan Book Stay Share Mobile check in / • Mobile check-in and check-out launched at over 500 hotels out launched at – Deliver in 3,300 US hotels in 2015, then roll-out glo

  52. Slide 52: Our mobile app delivers a seamless experience across the guest journey

    1 Our mobile app delivers a seamless Digital content experience across the guest journey Dream Plan Book Stay Share Mobile check-in InterContinental Past stays and Points & cash Post reviews at over 500 concierge nearby hotels options hotels IHG© 52

  53. Slide 53: Regional Performance

    Hotel Indigo, Paris Regional Performance IHG© 53

  54. Slide 54: Global demand growth for IHG branded hotels

    Global demand growth for IHG branded hotels RevPAR X Rooms X Royalty Rate 2014 fee revenue1 $1,255m, up 7% 2014 Group RevPAR growth 2014 system growth (%) 6.1% 6.0% 3.4% 2.7% 2.2%pts ADR Occupancy RevPAR Gross Net 2014: 5.5% total2 RevPAR growth 2014: 41k rooms opened, 18k rooms removed 1 Fee revenu

  55. Slide 55: Business model drives revenue growth in all regions

    Business model drives revenue growth in all regions RevPAR X Rooms X Royalty Rate 2014 fee revenue¹ growth 9.5% 7.8% 7.2% 6.8% 5.0% $22m $6m $3m $1m 2014 fee $1,255m $688m $173m $162m $103m revenue1 Group2 Americas Europe AMEA Greater China ¹ Fee revenue excludes revenue from owned and leased hotels

  56. Slide 56: US supply / demand dynamics remain favourable

    US supply / demand dynamics remain favourable Long-term growth in consumer spend on lodging has exceeded GDP growth by 2% p.a. Demand in the US has reached new records for the last 46 months (as at 31 December 2014)1 2014 occupancy rates of 64.4%, just 0.4%pts below all time record high set in 19951

  57. Slide 57: The Americas – strong RevPAR and highest net rooms growth in 5 years

    The Americas – strong RevPAR and highest net rooms growth in 5 years 2014 Growth in fee revenue drivers1 Comparable RevPAR up 7.4%; Q4 up 7.0% • US FY and Q4 7.5% 7.4% 7.8% • Record US demand for 46 months in a row $22m Net rooms growth 1.9% 1.9% • Highest net growth since 2009 • Gross rooms growth

  58. Slide 58: Europe – strong performance in UK and Germany

    Europe – strong performance in UK and Germany 2014 Growth in fee revenue drivers1 Comparable RevPAR up 5.1%; Q4 up 4.2% 6.8% • UK 8.9%; Germany 4.1% 5.1% Net rooms growth 2.1% $22m 2.1% • Gross rooms growth 5.2% Fee revenue1 up 6.8% RevPAR Net rooms Fee revenue Total underlying revenue2 up 1% • Unde

  59. Slide 59: AMEA – robust performance led by established markets

    AMEA – robust performance led by established markets 2014 Growth in fee revenue drivers1 Comparable RevPAR up 3.8%; Q4 up 3.1% • Middle East up 5.6%; Indonesia up 9.1% 4.7% 5.0% • Japan up 6.7%; Australia up 3.9% 3.8% $22m Total RevPAR up 2.2%; Q4 up 2.1% • Increasing mix from developing markets Net

  60. Slide 60: IHG has a long and rich history in Greater China - 30 years of operation

    IHG has a long and rich history in Greater China - 30 years of operation Bespoke China website Standalone InterContinental Region 50 open / 50 1st International Hong Kong 1st opening created pipeline branded hotel acquired 1984 1991 2000 2001 2004 2005 2008 2009 2010 2011 2012 2013 2014 2015 1st ope

  61. Slide 61: Greater China – double digit profit growth

    Greater China – double digit profit growth 2014 Growth in fee revenue drivers1 Comparable RevPAR up 1.6%; Q4 down (2.0%) • 2.5%pts ahead of the industry 14.1% • Tier 1 cities up 4.1%; Q4 up 1.0% 9.5% $22m Total RevPAR down (3.4%) • Mix impact from tier 2 and 3 cities 1.6% Net rooms growth 14.1% RevP

  62. Slide 62: Greater China – building on our leading scale position

    Greater China – building on our leading scale position • Record year for openings with 2x more than nearest competitor • Increase in rooms drives growth in fee revenue 2014 room openings (k)1 IHG Managed fee revenue progression ($m) 10.6 25% CAGR 99 53 5.2 4.0 3.9 3.6 32 14 1.7 IHG Starwood Marriott

  63. Slide 63: Greater China – long-term mainstream opportunity in tier 2/3 cities

    Greater China – long-term mainstream opportunity in tier 2/3 cities • Established in tier 1 cities with 7k more rooms than any International competitor • Growth in Chinese middle class will benefit tier 2/3 cities • IHG has the largest pipeline in tier 2/3 but is yet to open a hotel in +200 cities C

  64. Slide 64: Quarterly RevPAR progression

    Quarterly RevPAR progression Global (FY14 : 6.1%) Americas (FY14 : 7.4%) US (FY14 : 7.5%) 7.1% 7.0% 8.4% 8.7% 7.8% 6.2% 6.2% 7.7% 7.5% 5.9% 6.9% 6.9% 6.9% 7.0% 6.7% 7.0% 7.0% 5.1% 6.2% 5.7% 4.4% 4.1% 3.9% 3.9% 4.9% 5.0% 5.0% 4.5% 4.6% 4.6% 3.3% 3.4% 3.8% 4.0% 3.6% 3.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

  65. Slide 65: Revenue & Operating Profit

    Revenue & Operating Profit Total Revenue Total Operating Profit * Half Year Full Year Half Year Full Year 2014 2013 2012 2014 2013 2012 2014 2013 2012 2014 2013 2012 Franchised 305 278 260 630 576 541 263 245 224 544 499 466 Managed 52 79 47 103 128 97 25 52 24 47 74 48 Owned & Leased 78 100 93 138

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    Page intentionally left blank IHG© 66

  67. Slide 67: Appendix

    InterContinental Hotel, Double Bay, Sydney Appendix IHG© 67

  68. Slide 68: Foreign exchange translation exposure

    Foreign exchange translation exposure $9m impact from currency translation in 2014 • Recent trends indicate further impact in 2015 Reported EBIT ($m) Foreign exchange impact on 2014 EBIT ($m) Major non USD Region 2014 actual rates vs. Jan 20152 vs. 2014 currency exposure 2014 2013 actual rates1 actu

  69. Slide 69: 2014/2015 significant one offs

    2014/ 2015 significant one offs • $7m significant liquidated damages receipt in Americas franchise • $(5)m impact in Americas managed from the InterContinental New York Barclay renovation • $(3)m impact in Americas managed from devaluation of the Venezuelan Bolivar 2014 • $(5)m impact in Americas ov

  70. Slide 70: Hotel franchising

    Hotel franchising Total gross revenue¹ $bn (rooms only) Group royalty drivers 2014 YoY Average 2014 13.4 rooms 0.7% 2013 12.5 RevPAR 6.1% 2012 12.0 Royalty fees 7.5% Franchise Fees2 $m Franchise EBIT2 $m (margin %) 2014 747 2014 632 (85%) 2013 690 2013 586 (85%) 2012 653 2012 547 (84%) Based on actu

  71. Slide 71: Hotel management

    Hotel management Total gross revenue1 $bn (total hotel) Management Fees² $m 2014 9.0 2014 379 2013 8.5 2013 365 2012 8.6 2012 368 Managed lease revenue and EBIT $m Managed EBIT² $m (margin %) $m 2014 2013 2014 222 (59%) Americas Revenue 38 34 Americas EBIT 0 0 Europe Revenue 90 89 2013 207 (57%) Eur

  72. Slide 72: Owned & Leased

    Owned & Leased O&L revenue $m O&L EBIT $m (margin %) 2014 404 2014 79 (20%) 2013 398 2013 86 (22%) 2012 378 2012 76 (20%) O&L Revenue and EBIT from disposals ($m) O&L EBITDA $m $m 2014 2013 2014 107 InterContinental Barclay Revenue 14 75 InterContinental Barclay EBIT (1) 14 InterContinental Mark Hop

  73. Slide 73: 2014 Current Trading Comparable RevPAR Growth

    2014 Current Trading Comparable RevPAR Growth Constant US$ Qtr 1 Qtr 2 Qtr 3 Oct Nov Dec Qtr 4 Full Year United States: InterContinental 6.6% 2.6% 8.2% 5.6% 2.7% 6.0% 4.8% 5.5% Crowne Plaza 8.0% 7.2% 10.0% 9.4% 7.2% 6.2% 7.8% 8.3% Holiday Inn 6.9% 7.6% 9.4% 10.5% 5.6% 7.2% 8.0% 8.1% Holiday Inn Expr

  74. Slide 74: 2014 Current Trading Comparable ADR Growth

    2014 Current Trading Comparable ADR Growth Constant US$ Qtr 1 Qtr 2 Qtr 3 Oct Nov Dec Qtr 4 Full Year United States: InterContinental 2.8% 1.4% 6.5% 5.7% 2.3% 5.1% 4.4% 3.7% Crowne Plaza 2.3% 2.8% 3.3% 3.0% 2.2% 1.7% 2.4% 2.7% Holiday Inn 2.2% 3.6% 4.5% 4.1% 3.4% 3.9% 3.9% 3.6% Holiday Inn Express 2

  75. Slide 75: 2014 Current Trading Comparable Occupancy Growth

    2014 Current Trading Comparable Occupancy Growth (%age pts) Qtr 1 Qtr 2 Qtr 3 Oct Nov Dec Qtr 4 Full Year United States: InterContinental 2.7% 1.1% 1.3% (0.1%) 0.3% 0.7% 0.3% 1.3% Crowne Plaza 3.4% 3.0% 4.5% 4.5% 3.1% 2.3% 3.3% 3.6% Holiday Inn 2.7% 2.6% 3.2% 4.1% 1.2% 1.6% 2.3% 2.7% Holiday Inn Exp

  76. Slide 76: Comparable RevPAR – 3 Months to 31 December 2014 Franchised and Managed

    Comparable RevPAR – 3 Months to 31 December 2014 Franchised and Managed Constant US$ Franchised Comparable Managed Comparable Hotels Occ % ADR RevPAR Hotels Occ % ADR RevPAR 2014 Pts 2014 Growth 2014 Growth 2014 Pts 2014 Growth 2014 Growth InterContinental 24 64.4% 2.3% 137.22 2.7% 88.43 6.5% 19 77.

  77. Slide 77: Comparable RevPAR – 3 Months to 31 December 2014 Owned & Leased and Total

    Comparable RevPAR – 3 Months to 31 December 2014 Owned & Leased and Total Constant US$ Owned & Leased Comparable Total Comparable Hotels Occ % ADR RevPAR Occ % ADR RevPAR 2014 Pts 2014 Growth 2014 Growth 2014 Pts 2014 Growth 2014 Growth InterContinental 1 76.3% 6.9% 300.73 (0.3%) 229.34 9.6% 71.8% 0

  78. Slide 78: Comparable RevPAR – 12 Months to 31 December 2014 Franchised and Managed

    Comparable RevPAR – 12 Months to 31 December 2014 Franchised and Managed Constant US$ Franchised Comparable Managed Comparable Hotels Occ % ADR RevPAR Hotels Occ % ADR RevPAR 2014 Pts 2014 Growth 2014 Growth 2014 Pts 2014 Growth 2014 Growth InterContinental 24 64.8% 1.3% 135.43 4.5% 87.83 6.7% 19 80

  79. Slide 79: Comparable RevPAR – 12 Months to 31 December 2014 Owned & Leased and Total

    Comparable RevPAR – 12 Months to 31 December 2014 Owned & Leased and Total Constant US$ Owned & Leased Comparable Total Comparable Hotels Occ % ADR RevPAR Occ % ADR RevPAR 2014 Pts 2014 Growth 2014 Growth 2014 Pts 2014 Growth 2014 Growth InterContinental 1 79.0% (0.2%) 297.15 10.0% 234.75 9.7% 73.4%

  80. Slide 80: Investor Relations team contact details

    Investor Presentation March 2015 Investor Relations team contact details: David Kellett Matt Woollard david.kellett@ihg.com matthew.woollard@ihg.com +44 (0)1895 512326 +44 (0) 1895 512171 Emma Parker Debbie Holmes emma.parker@ihg.com debbie.holmes@ihg.com +44 (0)1895 512829 +44 (0) 1895 512176 IHG©

InterContinental Hotels Group — Investor Presentation (March 2015) on 6ix