InterContinental Hotels Group PLC · LSE:IHG

InterContinental Hotels — FY2008 Earnings Presentation

22 slides from InterContinental Hotels's earnings presentation, February 2009

  1. Slide 1: Supplementary Information

    Supplementary Information 31 December 2008 1

  2. Slide 2: Index

    Index RevPAR – 3 & 12 Months to 31 December 2008 2008 Current Trading – RevPAR, Occupancy & ADR Hotel & Room Count – at 31 December 2008 Pipeline – at 31 December 2008 Room Count & Pipeline Growth Drivers Continuing Revenue & Operating Profit by Quarter Cash Flow – 3 Months ended 31 December 2008 Or

  3. Slide 3: Explanatory Notes

    Explanatory Notes We have disclosed owned, leased, managed and franchised RevPAR, occupancy and ADR on a comparable basis. Owned and leased comparable RevPAR, occupancy and ADR reflects performance this year compared to the same period last year for owned and leased hotels that have traded in both y

  4. Slide 4: Comparable RevPAR – 3 Months to 31 December 2008: Owned & Leased and Managed

    Comparable RevPAR – 3 Months to 31 December 2008 Owned & Leased and Managed Constant US$ Owned & Leased Comparable Managed Comparable Hotels Occ % ADR RevPAR Hotels Occ % ADR RevPAR 2008 Pts 2008 Growth 2008 Growth 2008 Pts 2008 Growth 2008 Growth InterContinental 4 73.4% (9.1%) 283.94 (3.2%) 208.32

  5. Slide 5: Comparable RevPAR – 3 Months to 31 December 2008: Franchised and Total

    Comparable RevPAR – 3 Months to 31 December 2008 Franchised and Total Constant US$ Franchised Comparable Total Comparable Hotels Occ % ADR RevPAR Occ % ADR RevPAR 2008 Pts 2008 Growth 2008 Growth 2008 Pts 2008 Growth 2008 Growth InterContinental 22 57.7% (5.3%) 147.68 8.5% 85.22 (0.5%) 63.5% (5.0%)

  6. Slide 6: Comparable RevPAR – 12 Months to 31 December 2008: Owned & Leased and Managed

    Comparable RevPAR – 12 Months to 31 December 2008 Owned & Leased and Managed Constant US$ Owned & Leased Comparable Managed Comparable Hotels Occ % ADR RevPAR Hotels Occ % ADR RevPAR 2008 Pts 2008 Growth 2008 Growth 2008 Pts 2008 Growth 2008 Growth InterContinental 4 80.8% (0.2%) 259.21 0.7% 209.35

  7. Slide 7: Comparable RevPAR – 12 Months to 31 December 2008: Franchised and Total

    Comparable RevPAR – 12 Months to 31 December 2008 Franchised and Total Constant US$ Franchised Comparable Total Comparable Hotels Occ % ADR RevPAR Occ % ADR RevPAR 2008 Pts 2008 Growth 2008 Growth 2008 Pts 2008 Growth 2008 Growth InterContinental 22 63.7% 0.6% 142.98 5.6% 91.14 6.5% 68.2% (0.9%) 180

  8. Slide 8: 2008 Current Trading – Comparable RevPAR Growth

    2008 Current Trading – Comparable RevPAR Growth Constant US$ Qtr1 Qtr2 Qtr3 Oct Nov Dec Qtr4 Full Year US - InterContinental 3.9% 4.7% 1.3% (8.2%) (17.0%) (10.9%) (11.9%) (0.8%) US - Crowne Plaza 0.5% 1.2% 1.0% (7.1%) (11.5%) (8.5%) (8.9%) (1.4%) US - Holiday Inn 0.7% 0.7% (1.3%) (6.4%) (12.9%) (8.3

  9. Slide 9: 2008 Current Trading – Comparable Occupancy Growth

    2008 Current Trading – Comparable Occupancy Growth (%age pts) %age Points Qtr1 Qtr2 Qtr3 Oct Nov Dec Qtr4 Full Year US - InterContinental 1.4% 1.2% (0.5%) (4.1%) (9.1%) (4.7%) (5.9%) (1.0%) US - Crowne Plaza (1.3%) (1.0%) (1.2%) (4.7%) (5.7%) (3.0%) (4.4%) (2.0%) US - Holiday Inn (2.1%) (2.0%) (2.9%

  10. Slide 10: 2008 Current Trading – Comparable ADR Growth

    2008 Current Trading – Comparable ADR Growth Constant US$ Qtr1 Qtr2 Qtr3 Oct Nov Dec Qtr4 Full Year US - InterContinental 1.9% 3.1% 1.9% (3.3%) (5.6%) (3.6%) (4.1%) 0.5% US - Crowne Plaza 2.7% 2.6% 2.8% (0.6%) (2.3%) (2.6%) (1.7%) 1.7% US - Holiday Inn 4.5% 3.7% 3.1% 1.3% (0.4%) (0.7%) 0.2% 3.0% US

  11. Slide 11: Hotel & Room Count at 31 December 2008

    Hotel & Room Count at 31 December 2008 Owned & Leased Managed Franchised Total Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms InterContinental 4 1,914 25 9,156 26 7,432 55 18,502 Crowne Plaza - - 18 6,474 169 44,650 187 51,124 Holiday Inn 4 1,358 30 9,777 886 157,642 920 168,777 Express - - 1 2

  12. Slide 12: Pipeline at 31 December 2008

    Pipeline at 31 December 2008 Owned & Leased Managed Franchised Total Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms InterContinental 7 2,293 - - 7 2,293 Crowne Plaza 1 200 42 9,447 43 9,647 Holiday Inn 4 648 259 32,204 263 32,852 Express 1 150 638 56,315 639 56,465 Staybridge Suites 3 379 151 1

  13. Slide 13: Americas Future Growth Drivers

    Americas Future Growth Drivers Crowne Holiday Inn Staybridge Candlewood Hotel HI Club Total InterContinental Holiday Inn Plaza Express Suites Suites Indigo Vacations Room Count 1 January 2008 408,859 16,624 47,893 177,999 134,551 13,466 16,825 1,501 Openings 38,198 1,608 3,217 7,713 15,249 2,889 3,9

  14. Slide 14: EMEA Future Growth Drivers

    EMEA Future Growth Drivers Crowne Holiday Inn Staybridge Hotel Total InterContinental Holiday Inn Other Plaza Express Suites Indigo Room Count 1 January 2008 109,560 20,012 17,326 52,842 19,380 - - - Openings 10,118 1,045 2,732 2,100 3,702 272 64 203 Brand Conversions 0 631 (631) Removals (2,971) (2

  15. Slide 15: Asia Pacific Future Growth Drivers

    Asia Pacific Future Growth Drivers Holiday Inn Total InterContinental Crowne Plaza Holiday Inn Hotel Indigo Other Express Room Count 1 January 2008 66,675 14,126 17,951 25,858 2,600 - 6,140 Openings 11,037 1,283 3,937 2,207 3,610 Brand Conversions 0 412 (412) Removals (1,058) (11) (771) (190) (4) (8

  16. Slide 16: Continuing Revenue & Operating Profit

    Continuing Revenue & Operating Profit Continuing operations are classified under IFRS at 31 December 2008. This classification can change over time. Continuing operations excludes all owned and leased hotel assets sold as at 31 December 2008 and InterContinental Buckhead and Staybridge Suites Cherry

  17. Slide 17: 2008 Continuing Revenue & Operating Profit

    2008 Continuing Revenue & Operating Profit $m Operating Profit Revenue Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Owned & Leased 63 69 63 62 257 7 12 10 12 41 Managed 53 44 41 30 168 23 15 12 1 51 Franchised 114 134 139 108 495 97 118 120 91 426 230 247 243 200 920 127 145 142 104 518 Regional Over

  18. Slide 18: 2007 Continuing Revenue & Operating Profit

    2007 Continuing Revenue & Operating Profit $m Revenue Operating Profit Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Owned & Leased 57 65 63 72 257 4 12 9 15 40 Managed 38 42 37 39 156 11 14 9 7 41 Franchised 106 134 134 115 489 93 116 119 97 425 201 241 234 226 902 108 142 137 119 506 Regional Overhe

  19. Slide 19: 2006 Continuing Revenue & Operating Profit

    2006 Continuing Revenue & Operating Profit $m Revenue Operating Profit Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Owned & Leased 44 49 45 54 192 4 9 4 5 22 Managed 36 37 34 36 143 11 16 13 10 50 Franchised 96 116 123 108 443 85 100 106 91 382 176 202 202 198 778 100 125 123 106 454 Regional Overhea

  20. Slide 20: Free Cash Flow Generation

    Free Cash Flow Generation 12 months 12 months $m to 31 December 2008 to 31 December 2007 Operating Profit* 549 491 Depreciation Hotel Depreciation 74 73 Non Hotel Depreciation* 36 41 Working Capital & Other Movements 123 22 Cash flows arising from operating exceptional items (49) - Net Equity Settle

  21. Slide 21: Uses of Free Cash Flow

    Uses of Free Cash Flow 12 months 12 months $m to 31 December 2008 to 31 December 2007 Free Cash Flow 566 451 Investment Capital - Expenditure (9) (102) Investment Capital - Receipts 86 211 Tax on Disposals (3) (64) Share Repurchases/Special Dividend (139) (1,559) Ordinary Dividend (118) (127) Pensio

  22. Slide 22: Ordinary Shares at 31 December 2008

    Ordinary Shares at 31 December 2008 Number of Shares At 31 December 2008 At 31 December 2007 Opening Balance at 1 January 294.6 356.1 Share Buyback (9.2) (7.7) Share Consolidation - (57.3) Option Exercise 0.1 3.5 Closing Balance at 31 December 285.5 294.6 Basic Weighted Average Shares 286.9 320.1 Di

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