InterContinental Hotels Group PLC · LSE:IHG
InterContinental Hotels — Conference Presentation (2006)
86 slides from InterContinental Hotels's conference presentation, 2006
Slide 1: IHG Americas brand logos
rl) ur 6s ik indigo. SS ) CROWNE PLAZA INTERCONTINENTAL. HOTELS & RESORTS HOTELS & RESORTS SURES
Slide 2: Steve Porter, President, The Americas
Steve Porter President, The Americas InterContinental Hotels Group
Slide 3: Industry Activity
Industry Activity Consumer Trends IHG Priorities Region Overview: 5-year Look — Brands — Innovation — Performance — Growth Holiday Inn Brand Overview A Look To The Future Closing Comments/Q&A
Slide 4: Industry travel activity
1.2 Billion+ Person-trips 1 Billion+ Room Nights Sold ADR Growth Ahead Of Inflation Rise In Low-cost Airlines Open Doors To China And Russia
Slide 5: Leisure
Leisure
Slide 6: Groups & Meetings
Groups & Meetings
Slide 7: Consumer Desires
Consumer Desires
Slide 8: Retail Influenced Design
Retail Influenced Design
Slide 9: Slide 9
Slide 10: Slide 10
Slide 11: Slide 11
Slide 12: IHG Strategic Priorities
IHG Strategic Priorities Setting Ambition For Longer-Term Performance Our Priorities Brand Performance Excellent Hotel Returns Market Scale/Knowledge Aligned Organization Delivering Building The 3/60 Group Target Capabilities .
Slide 13: Toronto Geneva
@ @ TORONTO GENEVA 3,000+ Top Owners/Managers 100 Executives
Slide 14: IHG - The Americas 2001-2006
IHG - The Americas 2001-2006
Slide 15: 2,523 Hotels
2,523 Hotels 366,887 Rooms 25 Countries 5 Brands Distribution of Americas Estate by Brand - 2001 Bic Mcp Gui ex G ss
Slide 16: Source of Operating Profit
Source of Operating Profit 2001 « Revenue: $800.2M ¢ Profit: $223.9M ¢ Margin: 28% HB Owned'Leased Wi Managed G Franchised
Slide 17: Americas Strategic Objectives
Americas Strategic Objectives - Grow Share Of Paid Away-from-home Lodging Outperform Local Competition Regain Leadership Position In Mid-market Significantly Expand Upper Price Tier Expand Brand Portfolio To Fuel Growth
Slide 18: Regain Leadership Position In Mid-market
-_. = { =--f we ai = | ng a. @ ae 8 a- 8 ‘ lj. ay a Se i a 2 [i | Ba se fa SS & i TRON EXPRESS 34 | Ace | * Holiday Inn Holiday Inn Express Holiday Inn Hotel & Suites Monterrey, Mx New York City Tallahassee Regain Leadership Position In Mid-market
Slide 19: Significantly Expand Upper Price Tier
a ~— | aseat aoe | A) Crowne Plaza InterContinental Hotel & Resort Chicago Metro Centre Montelucia in Paradise Valley, AZ Significantly Expand Upper Price Tier
Slide 20: Expand Brand Portfolio To Fuel Growth
Candlewood Suites Hotel Indigo Dallas Medford, OR Expand Brand Portfolio To Fuel Growth
Slide 21: Line-of-sight Performance Clarity
SES Ese Line-of-sight Performance Clarity Focus On Business Outcomes Leaner Organization
Slide 22: Brands, Innovation, Performance
Brands Innovation Performance
Slide 23: IHG brand portfolio
INTERCONTINENTAL. HOTELS & RESORTS CROWNE PLAZA HOTELS & RESORTS I Mainstream Votidoy Sr HOTELS - RESORTS Te Hobday Sn EXPRESS HO T EL é, indigo scial Use rere SUITES CANDLEW@D.
Slide 24: Hotel Indigo
re w= th fl * Industry’s first branded boutique Sep 2006 YTD Performance * Interpret Indigo maintains 17.4% consistency but preserves 5 3H unique boutique experience j * Seasonal design elements 12.5% . ; 126.4 + Canine cocktails . ADR Occupancy
Slide 25: Hotel Indigo Scottsdale
i ! t ,icp Cdl a 7 aaa gy te I Scottsdale, AZ
Slide 26: Brand Performance & Innovation: InterContinental
Brand Performance & Innovation InterContinental Hotels & & Resorts Growth: Most openings . RevPAR Growth in past 10 years 11.1% 48 Americas hotels located in key gateway cities 10.9% 15 U.S. hotels (1.1% US Luxury Segment) “In The Know” brand positioning Concierge program a7 Global Colleague Engagem
Slide 27: Recent Additions
Recent Additions InterContinental Buckhead Presidente InterContinental Villa Mercedes Atlanta Merida, Mx 9 INTERCONTINENTAL, HOTELS & RESORTS
Slide 28: Brand Performance & Innovation: Crowne Plaza
Brand Performance & Innovation Crowne Plaza Hotels & Resorts Growth: - Leading conversion brand in Upscale RevPAR Growth - 3rd leading brand in upper-tier of industry 12.3% 149 hotels in the Americas 40.1% 118 US hotels (8.4% US Upscale segment) Redefined strategy to optimize brand 5 — The Place To
Slide 29: Crowne Plaza hotels
We S SE aes =] | | \ ea a Villahermosa, MX CROWNE PLAZA King of Prussia, PA
Slide 30: Brand Performance & Innovation: Staybridge Suites
De Brand Fenorman 2 & Innovation Staybridge Suites Rapid growth RevPAR Growth New prototype for 2007 fuk Pipeline of over 100 hotels International expansion 7 10.2% to Canada and Mexico | anes Enhanced breakfast bar | : 2005 2006 YTD
Slide 31: Staybridge Suites hotels
™S TAYBRIDGE® 4 SUITES {| ; Lake Forest, CA Parsippany, NJ pos iRIRSES Tit is
Slide 32: Candlewood Suites performance
Growth: Leads segment in openings and pipeline Acquired in 2003 Ten-year anniversary in May 2006 International Expansion to Canada “Comforts of Home” bedding program rolling out in Q1 2007 RevPAR Growth 11.6% 2005 9.4% 2006 YTD
Slide 33: Joplin, MO; Meridian, ID
Joplin, MO Meridian, ID
Slide 34: Performance Leverage
Performance Leverage ¢ Enterprise Delivery ¢ Management Capabilities
Slide 35: Performance chart
90% 4 80% 4 70% +4 60% 4 50% + 40% 4 3% 4 20% 4 10% 4 0%
Slide 36: Group capabilities graphic
szaine 4 \ Sziing FDGISAVLS YZV1d INMOYD ey TVIN3NI e IN
Slide 37: Hotels Under Management
Hotels Under Management 234 173 2002 2006
Slide 38: Deal Flow
Deal Flow Pipeline Openings HH Rooms Growth
Slide 39: Rooms openings by year
2002 2003 404 2004 2005 Sep 06 YTD 17,535 21,268 37,816 32,303 49,765 45,350 Rooms
Slide 40: Rooms signings by year
949 742 BID Bcw 545 oSB 407 ate BHI 343 355 mCP ' ! - 2001 2002 2003 2004 2005 Sep ‘06 YTD 35,566 38,231 44,152 55,339 76,863 99,539 Rooms
Slide 41: Rooms openings by year
201 gID 159 ass 253 163 175 ! ! 2001 2002 2003 2004 2005 Sep 06 YTD 19,501 16,852 30,352 24,234 24,127 18,995 Rooms
Slide 42: U.S. IHG Room Openings and Net System Size
U.S. IHG Room Openings U.S. IHG Net System Size 391,401 21,658 331,632 15,153 Sep-02 Sep-06 Sep-02 Sep-06 12-Months Ending 12-Months Ending
Slide 43: IHG Share of U.S. Active Pipeline
elt. ( Rooms Pipeline IHG Share of U.S. Active Pipeline 70,682 13.2% 13,339 Apr-02 , Sep-06 12-Months Ending
Slide 44: Distribution by Brand 2001 vs 2006
2001 ° . ° 2.523 Hotels 366,887 Rooms 25 Countries 5 Brands Distribution by Brand 2001 Hic Mice Gu i ex G ss 2006 + ° ° 2.914 Hotels 392.905 Rooms 23 Countries 7 Brands Distribution by Brand 2006 J Bic Hcp O IN Bui Bex G ss GO cw
Slide 45: 2001 Locations
2001 Locations
Slide 46: Removals Since 2001
2001 Removals Since
Slide 47: 2006 Locations
2006 Locations
Slide 48: Source of Operating Profit 2001 vs 2006
2001 2006 . . Revenue: $800.2M + Revenue: $671.3M Profit: $223.9M + Profit: $350.4M Margin: 28% * Margin: 52% Source of Operating Profit Source of Operating Profit Hi Owned'Leased Managed Gi Franchised
Slide 49: Slide 49
Slide 50: Mark Snyder, SVP Brand Management
Mark Snyder SVP, Brand Management Holiday Inn Hotels & Resorts The Americas
Slide 51: Holiday Inn: Look Again
otidoy Sn LOOK AGAIN.™
Slide 52: U.S. Top Brands (# Rooms)
U.S. Top 10 Brands (# Rooms) As of September 2006 186 507 165,113 145 343 131,141 134,196 137,942 112,625 115426 88,722 90,000 | | Motel ¢ rive “3 T Martott T Hampton T a Ha “enn = = M6 race MR HM ey EXPRESS Loo om
Slide 53: Holiday Inn innovations and RevPAR growth
New balanced full service ReEPARGrOwED product 9.0% 8.1% Indoor Waterparks ° Morning Matters/ Best-4-Breakfast People Notice Nickelodeon Suites by Holiday Inn MLB and NASCAR sponsorships 2004 2005 Sep 2006 YTD
Slide 54: Holiday Inn Express growth and innovation
Achieved 1000 hotels in just 9 years, versus 15 years for Hampton Inn Express Start breakfast bar introduced in 2003, rolled out in three months Over $20M invested in 2004 and 2005 in “Simply Smart” Shower “Simply Smart” bedding collection rollout complete Q1 2007 2004 RevPAR Growth 10.1% 2005 10.9%
Slide 55: New Construction U.S. Pipeline by Brand
New Construction U.S. Pipeline by Brand (# Rooms) September 2006 25,257 14,606 13,466 iii IL TEL tM co a. anh c “CY WT Re a ws Home HM ers elise gin Construction Final Aanning mAanning
Slide 56: Sinclair Lewis quote, 1920
“Somewhere in these states, there is a young man who Is going to become very rich. He is going to start a chain of small, clean, pleasant hotels, standardized and nationally advertised, along every important motor route in the country. He is not going to waste money on gilt and onyx, but he is going
Slide 57: Oe aa
258 —— Oe aa oy . ae SEN
Slide 58: Holiday Inn history
Voluday INE pis oe ‘ourched, ; came M E LI 9d¢ coin iio ae 1987 | 1992 a
Slide 59: System advantages
The System fund investment advantage 5] Scale advantage (# units) ©) demand for new builds Brand advantage (awareness and/or differentiation) RGI advantage Profitability and owner IRR advantage . 2
Slide 60: Induce New Build Growth; Build Competitive Advantage
Induce New Build Growth Build Competitive Advantage In Existing Hotels Issues: «Impact Issues: “ROI * Brand positioning «Financing «Brand Marketing «Consumer Focused Innovations Address Marginal & Tired Properties Issues: «Obsolete Boxes Contract expiration «Profits *Renovation costs/returns “Replac
Slide 61: A Brand That Is Preferred
A Brand That Is.... Consumer Preferred Clear point of difference Competitive J 4 Advantage mS IHG Preferred Franchises sell Franchisee Preferred Stronger ROI 4More REVPAR -Lower build cost More efficient operating costs -Flexible design(s) Replacement of sub-optimal hotels Improvement of conversion
Slide 62: Holiday Inn Balanced Full Service Prototype
Slide 63: Kem's Restaurant
Slide 64: People Notice Holiday Inn
Slide 65: Our future is in good hands
Our future is in good hands. yw : . People Notice 7 Yours. , ‘our pride.
Slide 66: People Notice deployment and sustainability cycle
Slide 67: Refreshing Existing Product
Refreshing Existing Product
Slide 68: Lobby Area
Lobby Area
Slide 69: Guestrooms
Slide 70: Restaurant
Restaurant
Slide 71: Indoor water recreation
firdOoor water recreat lon
Slide 72: Nickelodeon Family Suites by Holiday Inn
Slide 73: Brand Marketing
Brand Marketing
Slide 74: MLB and NASCAR sponsorships
Slide 75: Inspire Frequent Business Travelers to Look Again
¢ Inspire Frequent Business Travelers to “Look Again” at Holiday Inn and consider HI for their next business trip — Convey that Holiday Inn has all the amenities and services that will make their business trip a success in an efficient yet relaxed and unpretentious environment
Slide 76: Holiday Inn Express
Slide 77: Holiday Inn Express hotels growth
1,000+ Hotels 680 Hotels 449 New Hotels 27 Hotels in Pipeline 500 Hotels 3 Hotels 1991 1992 1993 1994 1995 1996 1997 199 1999 2000 2001 202 2002 2004 2005 2006
Slide 78: Anniston, Alabama; Tampa, Florida
Anniston, Alabama Tampa, Florida
Slide 79: An Industry Revolution: The Launch of Express Start
Slide 80: Simply Smart Guest Bath
J ty) fi fi Lt) “Simply Smart” Guest Bath Causes a Splash! ALLS GPa SEGRE LYS
Slide 81: Simply Smart Bedding
Slide 82: Look To The Future
Slide 83: IHG Multi-Brand Segmentation Project
Slide 84: Global Franchise Practice
Slide 85: The Scope Of Our Strategy Work Has Been Expanded
Slide 86: IHG brand logos
InterContinental Hotels Group — Conference Presentation (2006) on 6ix