InterContinental Hotels Group PLC · LSE:IHG

InterContinental Hotels — Non-Deal Roadshow (December 2015)

20 slides from InterContinental Hotels's roadshow presentation, Dec 11, 2015

  1. Slide 1: Driving global growth

    Holiday Inn, Manhattan Financial District Driving global growth Paul Edgecliffe – Johnson IHG© Group CFO

  2. Slide 2: 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 Over $10.5bn returned since 2003 Winning Model Targeted Portfolio Attractive markets Highest opportunity segments Managed & franchised m

  3. Slide 3: IHG has transitioned to a strong growth asset light model

    IHG has transitioned to a strong growth asset light model with the highest quality of earnings Earnings contribution by business model1 Fee revenue progression ($bn)2 4% +8% 1.3 54% 1.1 1.1 1.0 0.8 96% 0.6 46% 2003 2015 2004 2006 2008 2010 2012 2014 Owned & leased Fee business 1Pro-forma for sale of

  4. Slide 4: We aim to address all scale development opportunities through our brand portfolio

    We aim to address all scale development opportunities through our brand portfolio 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© 4

  5. Slide 5: Growth focus is on priority markets to optimise margins and profitability

    Growth focus is on 10 priority markets to optimise margins and profitability Current and expected industry room revenue ($bn) 32 By 2020 these 10 markets are expected to generate >$90bn room revenue growth • 75% of total industry • 4.6% per annum growth 107 25 9 4 3 2 24 5 17 17 7 3 15 13 8 6 7 3 3

  6. Slide 6: Focused execution has driven increasing scale in our priority markets

    Focused execution has driven increasing scale in our priority markets – nearly 90% of total room supply IHG open + pipeline % IHG total rooms (k) at Q3 2015 USA 500 53% Greater China 141 15% UK 50 5% Middle East 32 3% Canada 28 3% Mexico 25 3% Germany 19 2% India 14 1% Russia / CIS 12 1% Indonesia 1

  7. Slide 7: Accelerating signings pace has driven our highest ever pipeline rooms under construction

    Accelerating signings pace has driven our highest ever number of pipeline rooms under construction Nearly 30% growth in global pipeline since 20121 ~100k rooms under construction, the highest in our history 14% of global industry pipeline vs. 5% of supply1 IHG pipeline rooms by region (k) Europe G.

  8. Slide 8: Consistent focus has led to an industry leading growth position in all priority markets

    Consistent focus has led to an industry leading growth position in all priority markets IHG rooms total pipeline share and rank by market1 Canada Russia/CIS Share 14% Germany UK Share 15% Rank 3 Share 22% Share 9% Rank 3 Rank 1 Greater China US Rank 2 Share 19% Share 14% Middle East Rank 1 Rank 3 Sh

  9. Slide 9: Driving Americas growth

    Crowne Plaza, Times Square Manhattan Driving Americas growth Elie Maalouf IHG© Americas CEO

  10. Slide 10: Introduction and early reflections

    Introduction and early reflections Special culture and talent focus Improving guest experience – highest ever guest satisfaction scores Meeting changing guest needs – design innovation and new brands Technology systems drive results – 70%+ system delivery Industry leading operational expertise Stron

  11. Slide 11: 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 in 2015 H1 occupancy rates above previous high in 19951 Supply growth remains below long-term average (2.0%-2.5%) – STR 2015 forecas

  12. Slide 12: Our established scale and focused development strategy positions IHG well for growth

    Our established scale and focused development strategy positions IHG well for growth Holiday Inn brand family is leading the US Growth in signings pace demonstrates industry for new openings momentum behind all brands US new openings FY 2014 (k)1 IHG Americas Q3 YTD signings (k) 12.0 +10% 28.5 27.4

  13. Slide 13: IHG has the breadth of brands to continue developing leading scale across the region

    IHG has the breadth of brands to continue developing leading scale across the region Americas pipeline as at Q3 20151 As % of IHG Rooms (k) open rooms Luxury / upscale 4.9 8 Boutique 7.5 49 Mainstream 61.5 19 Extended stay 19.7 36 1Excludes PAL (Privatised Army Lodgings) IHG© 13

  14. Slide 14: We grow our scale through targeted brand deployment by geography

    We grow our scale through targeted brand deployment by geography US major city1 brand mix US non-major city1 brand mix 11% 7% 14% 2% 28% 9% 51% 77% Luxury / upscale Boutique Mainstream Extended stay 1 ‘Major cities’ are the top 20 cities for IHG; ‘non-major cities’ represents all other locations. IH

  15. Slide 15: New York is our #1 key city to penetrate in the US

    New York is our #1 key city to penetrate in the US Open PL rooms rooms Nearly 50 open and pipeline hotels in 607 704 central New York1 919 - 1,125 251 250 630 Portfolio approach – all nine IHG US - 582 brands represented 2,205 516 1,577 800 Largest capital market in the country – 310 116 presence su

  16. Slide 16: IHG's approach to growth in New York has led to market out-performance

    IHG’s approach to growth in New York has led to market out-performance New York: IHG room growth vs. IHG approach to New York industry from 2012 to H1 2015 Utilise experience but evolve approach 29% Increased development and real estate 13% market expertise Build lasting relationships with owners an

  17. Slide 17: Growth in New York is being supported by a number of new halo assets

    Growth in New York is being supported by a number of new halo assets… Hotel Indigo Lower EVEN Hotel Times Crowne Plaza West East Side Square South 36th Street Opening: Q4 2015 Opening: Q4 2015 Opening: 2017/2018 A brand defining Milestone property A flagship property hotel in a typically showcasing

  18. Slide 18: And properties which give great representation for our brands

    …And properties which give great representation for our brands InterContinental New Eventi, a Kimpton Holiday Inn 8th York – The Barclay Hotel Avenue Re - opening: 2016 Opened: May 2010 Opened: October 2015 A landmark prestige A unique hotel with Brand new 35-storey property for the a constant buzz

  19. Slide 19: Q&A

    Staybridge Suites, Times Square Q&A IHG©

  20. Slide 20: Biographies

    Biographies Paul Edgecliffe-Johnson - Group Chief Financial Officer Paul Edgecliffe-Johnson joined InterContinental Hotels Group (IHG) in August 2004. Paul has since held a number of senior leadership positions including leading Investor Relations, Global Corporate Finance, Group Financial Planning

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