|
Financial summary1
|
2011
|
2010
|
% Change YoY
|
||
|
Actual
|
CER2
|
CER2 &
excluding LDs3 |
|||
|
Revenue
|
$850m
|
$772m
|
10%
|
8%
|
6%
|
|
Operating profit
|
$269m
|
$219m
|
23%
|
21%
|
17%
|
|
Total adjusted EPS
|
59.2¢
|
47.0¢
|
26%
|
||
|
Total basic EPS4
|
54.0¢
|
49.1¢
|
10%
|
||
|
Interim dividend per share
|
16.0¢5
|
12.8¢
|
25%5
|
||
|
Net debt
|
$818m
|
$1,019m
|
|||
|
Richard Solomons, Chief Executive of InterContinental Hotels Group PLC, said:
|
|
"In the first half we delivered a strong performance across each of our regions, driven both by increased occupancy from business and leisure travellers as well as progressive rate improvement. Global revenue per available room (RevPAR) grew 6.7% with Greater China up 12.7% and the US up 8.2%, where the Holiday Inn relaunch is delivering sustained outperformance.
"We continue to support our owners, driving guests to our hotels through the most efficient channels. Our industry leading developments in mobile booking sites and apps are now generating over $10m of revenue a month and we expect this to grow quickly as consumer booking preferences evolve.
"We have realised over $140m in the year to date from the sale of our interests in four hotels and have committed to invest over $70m of capital behind our brands, including the roll out of Holiday Inn Express in India and a world class site for Hotel Indigo in New York.
"Our priorities are to develop our brands, invest in our people and strengthen our revenue delivery systems, thereby creating firmer foundations for growth. I have made a number of senior appointments including
Tom Singer as CFO and Tracy Robbins our EVP Human Resources and Global Operations Support will be joining the Board. Whilst we continue to monitor the uncertain economic outlook, we look forward with confidence in the currently favourable hotel trading environment of record demand and low supply growth in many markets."
|
|
Driving Market Share
|
|||
|
•
|
Total gross revenue6 from hotels in IHG's system of $9.6bn, up 9%.
|
||
|
•
|
First half global RevPAR growth of 6.7%, 7.6% excluding Egypt, Bahrain and Japan.
|
||
|
-
|
Americas 7.6% (including US 8.2%); EMEA 4.0%; Asia Pacific 7.0%.
|
||
|
-
|
Second quarter global RevPAR growth of 6.5%, 7.4% excluding Egypt, Bahrain and Japan.
|
||
|
-
|
Global rate growth of 2.1% in the first half, with 2.4% in the second quarter.
|
||
|
•
|
System size 656,674 rooms (4,462 hotels); pipeline 186,116 rooms (1,190 hotels), 26% in Greater China.
|
||
|
-
|
24,519 rooms (122 hotels) added, including 6,986 rooms (2 hotels) from the first InterContinental Alliance Resorts in Las Vegas; and 15,006 rooms (97 hotels) removed.
|
||
|
-
|
Signings of 21,139 rooms (148 hotels) were ahead of H1 2010.
|
||
|
-
|
2011 net system growth still expected to be modest, with annual medium term growth from 2012 of 3%-5%.
|
||
|
Growing Margins
|
|||
|
•
|
Sustainable efficiencies drive fee-based margins6 up 0.9% pts to 40.6%.
|
||
|
-
|
Regional and central costs of $129m increased $16m on 2010 at constant currency ($21m as reported) driven primarily by increased performance based incentive costs and investment in brand innovation.
|
||
|
-
|
2011 full year regional and central costs in the region of $260m at constant currency.
|
||
|
Current trading update
|
|||||
|
•
|
July global RevPAR up 5.6%, including rate up 2.7%. RevPAR up 6.3% excluding Egypt, Bahrain and Japan.
|
||||
|
-
|
Americas 6.6%; (includes US 6.7%); EMEA 3.0%; Asia Pacific 5.5%.
|
||||
|
•
|
$14m operating profit benefit in the second half compared to 2010 from one significant liquidated damages receipt, cessation of depreciation on a hotel now held for sale and one favourable guarantee settlement.
|
||||
|
•
|
Operating profit impact from events in Middle East, Japan and New Zealand of $7m in the first half with full year estimated impact unchanged at $15m to $20m.
|
||||
|
1All figures are before exceptional items unless otherwise noted. See appendix 3 and 4 for analysis of financial headlines
|
|||||
|
2CER =constant exchange rates
|
³excluding $10m of significant liquidated damages receipts in 2011
|
4After exceptional items
|
|||
|
5partly intended to rebalance interim and final dividend payments
|
6see appendix 6 for definition.
|
||||
|
Regional Highlights
|
|||||
|
Americas - Holiday Inn brand family drives increase in signings on 2010
|
|||||
|
RevPAR increased 7.6%, including rate growth of 2.1%. US RevPAR was up 8.2%, including rate growth of 2.4%. Second quarter RevPAR growth of 7.5%, with 2.6% rate growth and 8.1% in the US, with 2.8% rate growth.
Revenue increased 6% to $416m (5.3% at CER) and operating profit increased 26% to $225m. After adjusting for the owned hotel disposals and excluding the impact of a $10m liquidated damages receipt and $5m benefit year on year from the conclusion of a specific guarantee negotiation relating to one hotel, revenue was up 8% and operating profit up 19%. This was driven by 10.2% owned hotel RevPAR growth and a $19m increase in franchise royalty fees, net of a $5m reduction in royalties due to a net system size reduction primarily due to Holiday Inn exits.
We signed 11,614 rooms (102 hotels) in the half, up almost 1,500 rooms on the same period in 2010, due to an additional 19 Holiday Inn brand family deals, demonstrating the continued wider benefits of the relaunch. Four new Hotel Indigo deals were signed, including one on the Lower East Side of Manhattan, taking our Hotel Indigo pipeline in the Americas to 5,701 rooms (44 hotels). 16,520 rooms (88 hotels) were opened into the system (2010: 12,320 rooms), including the 6,986 room Las Vegas Sands (LVS) Venetian and Palazzo InterContinental Alliance Resorts.
|
|||||
|
EMEA - 14.4% owned RevPAR growth drives owned profits up over 50%
|
|
RevPAR increased 4.0%, including rate growth of 2.0%. RevPAR grew 5.3% excluding Egypt (10 hotels) and Bahrain (2 hotels) where the political unrest resulted in significant declines. In other Middle East markets RevPAR grew, including 10.2% in Saudi Arabia and 3.4% in the United Arab Emirates. Second quarter EMEA RevPAR growth of 4.8%, with rate growth of 2.1%. 6.0% second quarter RevPAR growth excluding Egypt and Bahrain.
Revenue increased 17% (10% at CER) to $224m and operating profit increased 22% (12% at CER) to $71m. This was driven by 14.4% owned RevPAR growth and a $6m increase in franchise royalties as a result of 5.3% RevPAR growth and a 2% increase in year on year room count. Managed operating profit declined by $1m to $31m as underlying growth across Continental Europe was offset by a $4m impact from the unrest in the Middle East.
We signed 4,547 rooms (24 hotels) in the half, up over 1,200 rooms on the first half of 2010. These included 7 Crowne Plaza hotels, 3 Hotel Indigo hotels and 4 Staybridge Suites hotels. 3,461 rooms (19 hotels) were opened into the system (2010: 2,938), including 2 Hotel Indigo hotels in the UK and 9 Crowne Plaza hotels across 8 different countries demonstrating the strength of this brand across the region.
|
|
Asia Pacific - Strong RevPAR and rooms growth drives a 31% profit increase
|
|
RevPAR increased 7.0%, including rate growth of 3.7%. Excluding Japan (32 hotels) where the earthquake and resultant events negatively impacted growth, RevPAR grew 11.6%. Greater China continues to be our strongest market with RevPAR up 12.7%, including rate growth of 7.1%. Second quarter Asia Pacific RevPAR growth of 4.4%, with 2.7% rate growth. 9.8% second quarter RevPAR growth excluding Japan.
Revenue increased 14% (10% at CER) to $156m and operating profit increased 31% to $46m, driven by strong RevPAR growth and a 5% increase in year on year room count, led by Greater China, up 11%. Managed operating profit increased $9m to $39m, despite the $3m impact from the natural disasters in Japan and New Zealand.
We signed 4,978 rooms (22 hotels) in the half, comprising: 9 hotels in Greater China; 4 hotels in India as part of the deal with Duet Hotels India; 6 hotels in Indonesia and 3 hotels in Thailand. On 8 August we announced the signing of a 1,224 room Holiday Inn in Macau with Sands China Ltd. 4,538 rooms (15 hotels) were opened into the system, including 3 hotels in India and 9 in Greater China where we now have 154 hotels open and 142 in the pipeline.
|
|
Capital recycling strategy driving growth
|
|
In the first half we completed the disposal of Hotel Indigo San Diego, Staybridge Suites Denver Cherry Creek, Holiday Inn Atlanta-Gwinnett Place and agreed the sale of a hotel asset and partnership interest in Australia. Proceeds from these sales will total $143m, 36% above book value. We now own just 12 hotels, including InterContinental New York Barclay which is on the market.
In line with our strategy to recycle capital to drive growth in our brands, during the half we committed to invest $72m in growth capital expenditure, spending $45m in the first half. These multi-year investments comprise a $12m equity stake in Summit Hotel Properties Inc. in the US with whom we have a hotel sourcing agreement; a $30m joint venture to take Holiday Inn Express into India; and a $30m joint venture to develop a Hotel Indigo on the Lower East side of Manhattan.
|
|
Interest, tax, exceptional items, dividend and net debt
|
|||||||||
|
The interest charge for the period was $32m (H1 2010: $31m). The tax charge has been calculated using an estimated annual tax rate of 28% (H1 2010: 28%).
Exceptional operating charge includes $37m in relation to the settlement of a commercial dispute in the EMEA region and a $22m litigation provision in the Americas.
The 25% increase in the interim dividend to 16.0¢ reflects strong performance in the first half and the intention to move towards rebalancing the interim and final payouts towards approximately a 30:70 ratio.
Net debt was $818m at the end of the half (including the $208m finance lease on the InterContinental Boston). This is down from $1.0bn at 30 June 2010 but up $75m on the year end 2010 position due to seasonal working capital movements including incentive payments. This is expected to partly reverse for the full year 2011.
|
|||||||||
|
Appendix 1: RevPAR Movement Summary
|
|||||||||
|
July 2011
|
Half Year 2011
|
Q2 2011
|
|||||||
|
RevPAR
|
Rate
|
Occ.
|
RevPAR
|
Rate
|
Occ.
|
RevPAR
|
Rate
|
Occ.
|
|
|
Group
|
5.6%
|
2.7%
|
2.0%pts
|
6.7%
|
2.1%
|
2.7%pts
|
6.5%
|
2.4%
|
2.6%pts
|
|
Americas
|
6.6%
|
3.5%
|
2.1%pts
|
7.6%
|
2.1%
|
3.3%pts
|
7.5%
|
2.6%
|
3.1%pts
|
|
EMEA
|
3.0%
|
1.1%
|
1.3%pts
|
4.0%
|
2.0%
|
1.3%pts
|
4.8%
|
2.1%
|
1.8%pts
|
|
Asia Pacific
|
5.5%
|
2.1%
|
2.4%pts
|
7.0%
|
3.7%
|
2.0%pts
|
4.4%
|
2.7%
|
1.1%pts
|
|
Appendix 2: Half Year 2011 System & Pipeline Summary (rooms)
|
|||||||
|
System
|
Pipeline
|
||||||
|
Openings
|
Removals
|
Net
|
Total
|
YoY%
|
Signings
|
Total
|
|
|
Group
|
24,519
|
(15,006)
|
9,513
|
656,674
|
0%
|
21,139
|
186,116
|
|
Americas
|
16,520
|
(10,488)
|
6,032
|
445,407
|
(1)%
|
11,614
|
87,862
|
|
EMEA
|
3,461
|
(2,186)
|
1,275
|
122,127
|
1%
|
4,547
|
31,558
|
|
Asia Pacific
|
4,538
|
(2,332)
|
2,206
|
89,140
|
5%
|
4,978
|
66,696
|
|
Appendix 3: Second quarter financial headlines
|
||||||||||
|
Three months to 30 June 2011
Operating Profit $m
|
Total
|
Americas
|
EMEA
|
Asia Pacific
|
Central
|
|||||
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|
|
Franchised
|
140
|
124
|
118
|
107
|
20
|
16
|
2
|
1
|
-
|
-
|
|
Managed
|
54
|
41
|
15
|
6
|
20
|
19
|
19
|
16
|
-
|
-
|
|
Owned & leased
|
31
|
22
|
7
|
6
|
17
|
10
|
7
|
6
|
-
|
-
|
|
Regional costs
|
(28)
|
(26)
|
(12)
|
(12)
|
(9)
|
(8)
|
(7)
|
(6)
|
-
|
-
|
|
Operating profit pre central costs
|
197
|
161
|
128
|
107
|
48
|
37
|
21
|
17
|
-
|
-
|
|
Central costs
|
(40)
|
(25)
|
-
|
-
|
-
|
-
|
-
|
-
|
(40)
|
(25)
|
|
Group Operating profit
|
157
|
136
|
128
|
107
|
48
|
37
|
21
|
17
|
(40)
|
(25)
|
|
Appendix 4: First half financial headlines
|
||||||||||
|
Six months to 30 June 2011
Operating Profit $m
|
Total
|
Americas
|
EMEA
|
Asia Pacific
|
Central
|
|||||
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|
|
Franchised
|
248
|
219
|
209
|
188
|
35
|
28
|
4
|
3
|
-
|
-
|
|
Managed
|
103
|
75
|
33
|
13
|
31
|
32
|
39
|
30
|
-
|
-
|
|
Owned & leased
|
47
|
33
|
6
|
4
|
23
|
15
|
18
|
14
|
-
|
-
|
|
Regional costs
|
(56)
|
(55)
|
(23)
|
(26)
|
(18)
|
(17)
|
(15)
|
(12)
|
-
|
-
|
|
Operating profit pre central costs
|
342
|
272
|
225
|
179
|
71
|
58
|
46
|
35
|
-
|
-
|
|
Central costs
|
(73)
|
(53)
|
-
|
-
|
-
|
-
|
-
|
-
|
(73)
|
(53)
|
|
Group Operating profit
|
269
|
219
|
225
|
179
|
71
|
58
|
46
|
35
|
(73)
|
(53)
|
|
Appendix 5: Constant exchange rate (CER) operating profit movement before exceptional items
|
|||||||||||
|
Total***
|
Americas
|
EMEA
|
Asia Pacific
|
||||||||
|
Actual currency*
|
CER**
|
Actual currency*
|
CER**
|
Actual currency*
|
CER**
|
Actual currency*
|
CER**
|
||||
|
Growth/ (decline)
|
23%
|
21%
|
26%
|
26%
|
22%
|
12%
|
31%
|
31%
|
|||
|
Exchange rates:
|
|||||||||||
|
GBP:USD
|
EUR:USD
|
* US dollar actual currency
|
|||||||||
|
2011
|
0.62
|
0.71
|
** Translated at constant 2010 exchange rates
|
||||||||
|
2010
|
0.66
|
0.75
|
*** After central overheads
|
||||||||
|
Appendix 6: Definitions
|
|
Total gross revenue:
total room revenue from franchised hotels and total hotel revenue from managed, owned and leased hotels. It is not revenue attributable to IHG, as it is derived mainly from hotels owned by third parties. The metric is highlighted as an indicator of the scale and reach of IHG's brands.
Fee based margins:
adjusted for owned and leased hotels, managed leases and one individually significant liquidated damages receipt in 2011.
|
|
Appendix 7: Investor Information for 2011 Interim Dividend
|
||||||
|
Ex-dividend date:
|
24 August 2011
|
Record date:
|
26 August 2011
|
|||
|
Payment date:
|
7 October 2011
|
Dividend payment:
|
Ordinary shares = 9.8 pence per share
|
|||
|
ADRs = 16.0 cents per ADR
|
||||||
|
For further information, please contact:
|
||||||
|
Investor Relations (Heather Wood; Catherine Dolton):
|
+44 (0)1895 512176
|
|||||
|
Media Affairs (Leslie McGibbon, Kari Kerr):
|
+44 (0)1895 512425
|
+44 (0) 7770 736 849
|
||||
|
High resolution images to accompany this announcement are available for the media to download free of charge from www.vismedia.co.uk. This includes profile shots of the key executives.
|
||||||
|
Presentation for Analysts and Shareholders:
A presentation with Richard Solomons (Chief Executive) will commence at 9.30am (London time) on 9th August at Bank of America Merrill Lynch Financial Centre, 2 King Edward Street, London, EC1A 1HQ. There will be an opportunity to ask questions. The presentation will conclude at approximately 10.30am (London time).
There will be a live audio webcast of the results presentation on the web address www.ihg.com/interims11. The archived webcast of the presentation is expected to be on this website later on the day of the results and will remain on it for the foreseeable future. There will also be a live dial-in facility:
|
||||||
|
International dial-in:
|
+44 (0)20 7136 2054
|
|||||
|
Passcode:
|
9495779
|
|||||
|
US conference call and Q&A:
There will also be a conference call, primarily for US investors and analysts, at 10.00am (Eastern Standard Time) on 9th August with Richard Solomons (Chief Executive). There will be an opportunity to ask questions
.
|
||||||
|
International dial-in:
|
+44 (0)20 7108 6370
|
|||||
|
Standard US dial-in:
|
+1 517 345 9004
|
|||||
|
US Toll Free:
|
866 692 5726
|
|||||
|
Conference ID:
|
HOTEL
|
|||||
|
A recording of the conference call will also be available for 7 days. To access this please dial the relevant number below and use the access number 2341.
|
||||||
|
International dial-in:
|
+1 203 369 4810
|
|||||
|
US Toll Free:
|
+1 877 267 9692
|
|||||
|
Website:
The full release and supplementary data will be available on our website from 7.00 am (London time) on 9 August. The web address is www.ihg.com/interims11. To watch a video of Richard Solomons reviewing our results visit our YouTube channel at www.youtube.com/ihgplc .
|
||||||
|
Notes to Editors:
IHG (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global company operating seven well-known hotel brands including InterContinental® Hotels & Resorts, Hotel Indigo®, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express®, Staybridge Suites® and Candlewood Suites® . IHG also manages Priority Club® Rewards, the world's first and largest hotel loyalty programme with almost 60 million members worldwide.
IHG is the world's largest hotel group by number of rooms and IHG franchises, leases, manages or owns, through various subsidiaries, a portfolio of over 4,400 hotels and more than 656,000 guest rooms in 100 countries and territories around the world IHG has more than 1,100 hotels in its development pipeline and expects to recruit around 160,000 people worldwide over the next few years.
InterContinental Hotels Group PLC is the Group's holding company and is incorporated in Great Britain and registered in England and Wales.
IHG offers information and online reservations for all its hotel brands at http://www.ihg.com and information for the Priority Club Rewards programme at www.priorityclub.com. For our latest news visit www.ihg.com/media, Twitter
www.twitter.com/ihgplc or YouTube http://www.youtube.com/ihgplc
|
||||||
|
Cautionary note regarding forward-looking statements:
This announcement contains certain forward-looking statements as defined under US law (Section 21E of the Securities Exchange Act of 1934). These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements often use words such as 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe' or other words of similar meaning. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty. There are a number of factors that could cause actual results and developments to differ materially from those expressed in or implied by, such forward-looking statements. Factors that could affect the business and the financial results are described in 'Risk Factors' in the InterContinental Hotels Group PLC Annual report on Form 20-F filed with the United States Securities and Exchange Commission.
|
||||||
|
3 months ended
|
6 months ended
|
||||||
|
30 June
2011
|
30 June
2010
|
%
|
30 June
2011
|
30 June
2010
|
%
|
||
|
Group Results
|
$m
|
$m
|
change
|
$m
|
$m
|
change
|
|
|
Revenue
|
|||||||
|
Americas
|
222
|
215
|
3.3
|
416
|
393
|
5.9
|
|
|
EMEA
|
129
|
102
|
26.5
|
224
|
192
|
16.7
|
|
|
Asia Pacific
|
76
|
68
|
11.8
|
156
|
137
|
13.9
|
|
|
Central
|
27
|
25
|
8.0
|
54
|
50
|
8.0
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Total
|
454
|
410
|
10.7
|
850
|
772
|
10.1
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Operating profit before exceptional items
|
|||||||
|
Americas
|
128
|
107
|
19.6
|
225
|
179
|
25.7
|
|
|
EMEA
|
48
|
37
|
29.7
|
71
|
58
|
22.4
|
|
|
Asia Pacific
|
21
|
17
|
23.5
|
46
|
35
|
31.4
|
|
|
Central
|
(40)
|
(25)
|
(60.0)
|
(73)
|
(53)
|
(37.7)
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
157
|
136
|
15.4
|
269
|
219
|
22.8
|
||
|
Exceptional operating items
|
(30)
|
6
|
n/m
|
(32)
|
4
|
n/m
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
127
|
142
|
(10.6)
|
237
|
223
|
6.3
|
||
|
Net financial expenses
|
(16)
|
(16)
|
-
|
(32)
|
(31)
|
(3.2)
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Profit before tax
|
111
|
126
|
(11.9)
|
205
|
192
|
6.8
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Total Earnings per ordinary share
|
|||||||
|
Basic
|
30.0¢
|
30.2¢
|
(0.7)
|
54.0¢
|
49.1¢
|
10.0
|
|
|
Adjusted
|
35.2¢
|
29.5¢
|
19.3
|
59.2¢
|
47.0¢
|
26.0
|
|
|
1Underlying fee based margin is defined as operating profit margin adjusted for owned and leased hotels, managed leases and one individually significant liquidated damages receipt in 2011.
|
|
3 months ended
|
6 months ended
|
||||||
|
30 June
2011
|
30 June
2010
|
%
|
30 June
2011
|
30 June
2010
|
%
|
||
|
Americas Results
|
$m
|
$m
|
change
|
$m
|
$m
|
change
|
|
|
Revenue
|
|||||||
|
Franchised
|
135
|
123
|
9.8
|
244
|
221
|
10.4
|
|
|
Managed
|
32
|
30
|
6.7
|
70
|
59
|
18.6
|
|
|
Owned and leased
|
55
|
62
|
(11.3)
|
102
|
113
|
(9.7)
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Total
|
222
|
215
|
3.3
|
416
|
393
|
5.9
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Operating profit before
exceptional items
|
|||||||
|
Franchised
|
118
|
107
|
10.3
|
209
|
188
|
11.2
|
|
|
Managed
|
15
|
6
|
150.0
|
33
|
13
|
153.8
|
|
|
Owned and leased
|
7
|
6
|
16.7
|
6
|
4
|
50.0
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
140
|
119
|
17.6
|
248
|
205
|
21.0
|
||
|
Regional overheads
|
(12)
|
(12)
|
-
|
(23)
|
(26)
|
11.5
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Total
|
128
|
107
|
19.6
|
225
|
179
|
25.7
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Hotels
|
Rooms
|
||||
|
Change over
|
Change over
|
||||
|
Americas hotel and room count
|
2011
30 June
|
2010
31 December
|
2011
30 June
|
2010
31 December
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
56
|
-
|
19,094
|
(26)
|
|
|
Crowne Plaza
|
202
|
(7)
|
54,680
|
(2,393)
|
|
|
Holiday Inn
|
808
|
(4)
|
143,315
|
(1,368)
|
|
|
Holiday Inn Express
|
1,856
|
9
|
161,313
|
1,446
|
|
|
Staybridge Suites
|
188
|
5
|
20,550
|
536
|
|
|
Candlewood Suites
|
297
|
9
|
29,077
|
824
|
|
|
Hotel Indigo
|
33
|
(2)
|
3,973
|
(281)
|
|
|
Holiday Inn Club Vacations
|
6
|
-
|
2,892
|
-
|
|
|
Other
|
25
|
3
|
10,513
|
7,294
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
3,471
|
13
|
445,407
|
6,032
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
3,244
|
14
|
398,730
|
6,194
|
|
|
Managed
|
221
|
2
|
44,166
|
318
|
|
|
Owned and leased
|
6
|
(3)
|
2,511
|
(480)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
3,471
|
13
|
445,407
|
6,032
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
||||
|
Change over
|
Change over
|
||||
|
Americas pipeline
|
2011
30 June
|
2010
31 December
|
2011
30 June
|
2010
31 December
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
5
|
-
|
1,340
|
-
|
|
|
Crowne Plaza
|
24
|
(3)
|
4,922
|
(747)
|
|
|
Holiday Inn
|
170
|
(17)
|
23,008
|
(2,252)
|
|
|
Holiday Inn Express
|
383
|
(24)
|
35,065
|
(1,946)
|
|
|
Staybridge Suites
|
84
|
(12)
|
8,673
|
(1,443)
|
|
|
Candlewood Suites
|
105
|
(15)
|
9,153
|
(1,353)
|
|
|
Hotel Indigo
|
44
|
(2)
|
5,701
|
(32)
|
|
|
Other brands
|
-
|
(2)
|
-
|
(6,874)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
815
|
(75)
|
87,862
|
(14,647)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
803
|
(75)
|
85,280
|
(14,792)
|
|
|
Managed
|
12
|
-
|
2,582
|
145
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
815
|
(75)
|
87,862
|
(14,647)
|
|
|
____
|
____
|
______
|
_____
|
||
|
3 months ended
|
6 months ended
|
||||||
|
30 June
2011
|
30 June
2010
|
%
|
30 June
2011
|
30 June
2010
|
%
|
||
|
EMEA Results
|
$m
|
$m
|
change
|
$m
|
$m
|
change
|
|
|
Revenue
|
|||||||
|
Franchised
|
25
|
20
|
25.0
|
45
|
37
|
21.6
|
|
|
Managed
|
40
|
32
|
25.0
|
69
|
61
|
13.1
|
|
|
Owned and leased
|
64
|
50
|
28.0
|
110
|
94
|
17.0
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Total
|
129
|
102
|
26.5
|
224
|
192
|
16.7
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Operating profit before
exceptional items
|
|||||||
|
Franchised
|
20
|
16
|
25.0
|
35
|
28
|
25.0
|
|
|
Managed
|
20
|
19
|
5.3
|
31
|
32
|
(3.1)
|
|
|
Owned and leased
|
17
|
10
|
70.0
|
23
|
15
|
53.3
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
57
|
45
|
26.7
|
89
|
75
|
18.7
|
||
|
Regional overheads
|
(9)
|
(8)
|
(12.5)
|
(18)
|
(17)
|
(5.9)
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Total
|
48
|
37
|
29.7
|
71
|
58
|
22.4
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Hotels
|
Rooms
|
||||
|
Change over
|
Change over
|
||||
|
EMEA hotel and room count
|
2011
30 June
|
2010
31 December
|
2011
30 June
|
2010
31 December
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
61
|
(3)
|
19,360
|
(751)
|
|
|
Crowne Plaza
|
106
|
8
|
24,978
|
2,037
|
|
|
Holiday Inn
|
321
|
(4)
|
52,059
|
(886)
|
|
|
Holiday Inn Express
|
202
|
4
|
24,337
|
631
|
|
|
Staybridge Suites
|
5
|
-
|
747
|
(1)
|
|
|
Hotel Indigo
|
4
|
2
|
355
|
245
|
|
|
Other
|
2
|
-
|
291
|
-
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
701
|
7
|
122,127
|
1,275
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
533
|
10
|
81,696
|
1,746
|
|
|
Managed
|
164
|
(3)
|
38,985
|
(471)
|
|
|
Owned and leased
|
4
|
-
|
1,446
|
-
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
701
|
7
|
122,127
|
1,275
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
||||
|
Change over
|
Change over
|
||||
|
EMEA pipeline
|
2011
30 June
|
2010
31 December
|
2011
30 June
|
2010
31 December
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
25
|
1
|
6,714
|
245
|
|
|
Crowne Plaza
|
23
|
(2)
|
6,845
|
(754)
|
|
|
Holiday Inn
|
42
|
1
|
9,621
|
493
|
|
|
Holiday Inn Express
|
43
|
(4)
|
6,106
|
(417)
|
|
|
Staybridge Suites
|
9
|
4
|
1,131
|
487
|
|
|
Hotel Indigo
|
10
|
(1)
|
1,141
|
69
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
152
|
(1)
|
31,558
|
123
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
84
|
(6)
|
12,719
|
(823)
|
|
|
Managed
|
68
|
5
|
18,839
|
946
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
152
|
(1)
|
31,558
|
123
|
|
|
____
|
____
|
______
|
_____
|
||
|
3 months ended
|
6 months ended
|
||||||
|
30 June
2011
|
30 June
2010
|
%
|
30 June
2011
|
30 June
2010
|
%
|
||
|
Asia Pacific Results
|
$m
|
$m
|
change
|
$m
|
$m
|
change
|
|
|
Revenue
|
|||||||
|
Franchised
|
3
|
3
|
-
|
6
|
6
|
-
|
|
|
Managed
|
39
|
35
|
11.4
|
79
|
68
|
16.2
|
|
|
Owned and leased
|
34
|
30
|
13.3
|
71
|
63
|
12.7
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Total
|
76
|
68
|
11.8
|
156
|
137
|
13.9
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Operating profit before
exceptional items
|
|||||||
|
Franchised
|
2
|
1
|
100.0
|
4
|
3
|
33.3
|
|
|
Managed
|
19
|
16
|
18.8
|
39
|
30
|
30.0
|
|
|
Owned and leased
|
7
|
6
|
16.7
|
18
|
14
|
28.6
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
28
|
23
|
21.7
|
61
|
47
|
29.8
|
||
|
Regional overheads
|
(7)
|
(6)
|
(16.7)
|
(15)
|
(12)
|
(25.0)
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Total
|
21
|
17
|
23.5
|
46
|
35
|
31.4
|
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
|
Hotels
|
Rooms
|
||||
|
Change over
|
Change over
|
||||
|
Asia Pacific hotel and room count
|
2011
30 June
|
2010
31 December
|
2011
30 June
|
2010
31 December
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
53
|
2
|
20,103
|
905
|
|
|
Crowne Plaza
|
86
|
5
|
27,827
|
1,686
|
|
|
Holiday Inn
|
104
|
-
|
29,544
|
(53)
|
|
|
Holiday Inn Express
|
30
|
-
|
7,828
|
173
|
|
|
Hotel Indigo
|
1
|
-
|
184
|
-
|
|
|
Other
|
16
|
(2)
|
3,654
|
(505)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
290
|
5
|
89,140
|
2,206
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type:
|
|||||
|
Franchised
|
30
|
-
|
7,646
|
812
|
|
|
Managed
|
258
|
5
|
80,799
|
1,392
|
|
|
Owned and leased
|
2
|
-
|
695
|
2
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
290
|
5
|
89,140
|
2,206
|
|
|
____
|
____
|
______
|
_____
|
||
|
Hotels
|
Rooms
|
||||
|
Change over
|
Change over
|
||||
|
Asia Pacific pipeline
|
2011
30 June
|
2010
31 December
|
2011
30 June
|
2010
31 December
|
|
|
Analysed by brand
|
|||||
|
InterContinental
|
29
|
(2)
|
10,548
|
(1,017)
|
|
|
Crowne Plaza
|
68
|
(3)
|
24,446
|
(1,280)
|
|
|
Holiday Inn
|
73
|
(12)
|
20,051
|
(3,066)
|
|
|
Holiday Inn Express
|
47
|
7
|
10,701
|
1,016
|
|
|
Hotel Indigo
|
6
|
1
|
950
|
128
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
223
|
(9)
|
66,696
|
(4,219)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Analysed by ownership type
|
|||||
|
Franchised
|
2
|
-
|
326
|
-
|
|
|
Managed
|
221
|
(9)
|
66,370
|
(4,219)
|
|
|
____
|
____
|
______
|
_____
|
||
|
Total
|
223
|
(9)
|
66,696
|
(4,219)
|
|
|
____
|
____
|
______
|
_____
|
||
|
· a $22m estimate to cover an amount potentially payable in respect of a prior year claim following an unfavourable court judgement in the Americas on 23 February 2011;
|
|
· $37m relating to the settlement of a prior period commercial dispute in EMEA;
|
|
|
|
· $3m impairment charge relating to available-for-sale equity investments;
|
|
|
|
· $12m credit relating mainly to the reversal of previously recorded impairment recorded on a North American hotel sold in the quarter;
|
|
|
|
· $9m UK VAT refund; and
|
|
|
|
· $9m gain on disposal of hotels.
|
|
|
|
· proceeds from the disposal of hotels and investments of $76m, including $17m from the disposal of the Holiday Inn Atlanta Gwinnett Place and the Staybridge Suites Denver Cherry Creek to Summit Hotel Properties on 27 April 2011 and $56m from the sale of Hotel Indigo San Diego to Chesapeake Lodging Trust on 17 June 2011. IHG continues to manage the Holiday Inn Gwinnett and the Hotel Indigo San Diego and operates the Staybridge Cherry Creek under a license agreement; and
|
|
· capital expenditure of $82m including a $12m equity stake in Summit Hotel Properties Inc. in the US, $24m of a total $30m investment in a joint venture to develop a Hotel Indigo on the Lower East side of Manhattan and $8m of a total $30m investment in a joint venture to develop Holiday Inn Express hotels in India.
|
|
·
|
the reputation of its brands and the protection of intellectual property rights;
|
|
·
|
identifying, securing and retaining franchise and management agreements;
|
|
·
|
political and economic developments;
|
|
·
|
requiring the right people, skills and capability to manage growth and change;
|
|
·
|
events that adversely impact domestic or international travel;
|
|
·
|
the reliance upon its proprietary reservations system and is exposed to the risk of failures in the system and increased competition in reservations infrastructure;
|
|
·
|
technology and systems;
|
|
·
|
the hotel industry supply and demand cycle;
|
|
·
|
a lack of selected development opportunities;
|
|
·
|
corporate responsibility;
|
|
·
|
litigation;
|
|
·
|
difficulties insuring the business;
|
|
·
|
its financial stability, ability to borrow and satisfy debt covenants;
|
|
·
|
compliance with data privacy regulations;
|
|
·
|
information security; and
|
|
·
|
funding in relation to the defined benefits under its pension plans.
|
|
· The condensed set of financial statements has been prepared in accordance with IAS 34;
|
|
|
|
· The interim management report includes a fair review of the important events during the first six months and a description of the principal risks and uncertainties for the remaining six months of the year, as required by DTR 4.2.7R; and.
|
|
|
|
· The interim management report includes a fair review of related party transactions and changes therein, as required by DTR 4.2.8R.
|
|
|
|
3 months ended 30 June 2011
|
3 months ended 30 June 2010
|
||||||
|
Before
exceptional
items
|
Exceptional
items
(note 4)
|
Total
|
Before
exceptional
items
|
Exceptional
items
(note 4)
|
Total
|
||
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||
|
Continuing operations
|
|||||||
|
Revenue (note 3)
|
454
|
-
|
454
|
410
|
-
|
410
|
|
|
Cost of sales
|
(188)
|
-
|
(188)
|
(182)
|
-
|
(182)
|
|
|
Administrative expenses
|
(88)
|
(37)
|
(125)
|
(68)
|
(2)
|
(70)
|
|
|
Other operating income and expenses
|
4
|
9
|
13
|
3
|
8
|
11
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
182
|
(28)
|
154
|
163
|
6
|
169
|
||
|
Depreciation and amortisation
|
(25)
|
-
|
(25)
|
(27)
|
-
|
(27)
|
|
|
Impairment
|
-
|
(2)
|
(2)
|
-
|
-
|
-
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Operating profit (note 3)
|
157
|
(30)
|
127
|
136
|
6
|
142
|
|
|
Financial income
|
1
|
-
|
1
|
-
|
-
|
-
|
|
|
Financial expenses
|
(17)
|
-
|
(17)
|
(16)
|
-
|
(16)
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Profit before tax (note 3)
|
141
|
(30)
|
111
|
120
|
6
|
126
|
|
|
Tax (note 5)
|
(39)
|
15
|
(24)
|
(35)
|
(4)
|
(39)
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Profit for the period from continuing operations attributable to the equity holders of the parent
|
102
|
(15)
|
87
|
85
|
2
|
87
|
|
|
====
|
====
|
====
|
====
|
====
|
====
|
||
|
Earnings per ordinary share
(note 6)
|
|||||||
|
Continuing and total operations:
|
|||||||
|
Basic
|
30.0¢
|
30.2¢
|
|||||
|
Diluted
|
29.5¢
|
29.3¢
|
|||||
|
Adjusted
|
35.2¢
|
29.5¢
|
|||||
|
Adjusted diluted
|
34.6¢
|
28.6¢
|
|||||
|
====
|
====
|
====
|
====
|
||||
|
6 months ended 30 June 2011
|
6 months ended 30 June 2010
|
||||||
|
Before
exceptional
items
|
Exceptional
items
(note 4)
|
Total
|
Before
exceptional
items
|
Exceptional
items
(note 4)
|
Total
|
||
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||
|
Continuing operations
|
|||||||
|
Revenue (note 3)
|
850
|
-
|
850
|
772
|
-
|
772
|
|
|
Cost of sales
|
(369)
|
-
|
(369)
|
(360)
|
-
|
(360)
|
|
|
Administrative expenses
|
(169)
|
(59)
|
(228)
|
(142)
|
(3)
|
(145)
|
|
|
Other operating income and expenses
|
8
|
18
|
26
|
4
|
8
|
12
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
320
|
(41)
|
279
|
274
|
5
|
279
|
||
|
Depreciation and amortisation
|
(51)
|
-
|
(51)
|
(55)
|
-
|
(55)
|
|
|
Impairment
|
-
|
9
|
9
|
-
|
(1)
|
(1)
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Operating profit (note 3)
|
269
|
(32)
|
237
|
219
|
4
|
223
|
|
|
Financial income
|
1
|
-
|
1
|
1
|
-
|
1
|
|
|
Financial expenses
|
(33)
|
-
|
(33)
|
(32)
|
-
|
(32)
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Profit before tax (note 3)
|
237
|
(32)
|
205
|
188
|
4
|
192
|
|
|
Tax (note 5)
|
(66)
|
17
|
(49)
|
(53)
|
-
|
(53)
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Profit for the period from continuing operations
|
171
|
(15)
|
156
|
135
|
4
|
139
|
|
|
Profit for the period from discontinued operations
|
-
|
-
|
-
|
-
|
2
|
2
|
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
|
Profit for the period attributable to the equity holders of the parent
|
171
|
(15)
|
156
|
135
|
6
|
141
|
|
|
====
|
====
|
====
|
====
|
====
|
====
|
||
|
Earnings per ordinary share
(note 6)
|
|||||||
|
Continuing operations:
|
|||||||
|
Basic
|
54.0¢
|
48.4¢
|
|||||
|
Diluted
|
53.1¢
|
47.0¢
|
|||||
|
Adjusted
|
59.2¢
|
47.0¢
|
|||||
|
Adjusted diluted
|
58.2¢
|
45.6¢
|
|||||
|
Total operations:
|
|||||||
|
Basic
|
54.0¢
|
49.1¢
|
|||||
|
Diluted
|
53.1¢
|
47.6¢
|
|||||
|
Adjusted
|
59.2¢
|
47.0¢
|
|||||
|
Adjusted diluted
|
58.2¢
|
45.6¢
|
|||||
|
====
|
====
|
====
|
====
|
||||
|
2011
3 months
ended 30 June $m
|
2010
3 months
ended 30 June $m
|
2011
6 months
ended 30 June $m
|
2010
6 months
ended 30 June $m
|
||
|
Profit for the period
|
87
|
87
|
156
|
141
|
|
|
Other comprehensive income
|
|||||
|
Available-for-sale financial assets:
|
|||||
|
Gains on valuation
|
12
|
13
|
12
|
19
|
|
|
Losses reclassified to income on impairment
|
3
|
-
|
3
|
1
|
|
|
Cash flow hedges:
|
|||||
|
Losses arising during the period
|
-
|
-
|
-
|
(2)
|
|
|
Reclassified to financial expenses
|
1
|
1
|
3
|
3
|
|
|
Defined benefit pension plans:
|
|||||
|
Actuarial (losses)/gains, net of related tax: 2011 3 months $1m credit, 6 months $1m charge (2010 3 months $8m credit, 6 months $7m credit)
|
(10)
|
(25)
|
2
|
(18)
|
|
|
Change in asset restriction on plans in surplus and liability in respect of funding commitments, including related tax charge of: 2011 3 months $nil, 6 months $2m (2010 3 months $nil; 6 months $nil)
|
1
|
4
|
(3)
|
1
|
|
|
Exchange differences on retranslation of foreign operations, net of related tax: 2011 3 months $2m charge, 6 months $2m charge (2010 3 months $3m credit, 6 months $3m credit)
|
2
|
(24)
|
14
|
(45)
|
|
|
Tax related to pension contributions
|
1
|
-
|
3
|
1
|
|
|
____
|
____
|
____
|
____
|
||
|
Other comprehensive income/(loss) for the period
|
10
|
(31)
|
34
|
(40)
|
|
|
____
|
____
|
____
|
____
|
||
|
Total comprehensive income for the period
|
97
|
56
|
190
|
101
|
|
|
===
|
====
|
====
|
====
|
||
|
Attributable to:
|
|||||
|
Equity holders of the parent
|
96
|
56
|
189
|
101
|
|
|
Non-controlling interest
|
1
|
-
|
1
|
-
|
|
|
_____
|
_____
|
_____
|
_____
|
||
|
97
|
56
|
190
|
101
|
||
|
=====
|
=====
|
=====
|
=====
|
||
|
6 months ended 30 June 2011
|
|||||
|
Equity
share capital |
Other
reserves* |
Retained
earnings |
Non-controlling
interest |
Total
equity |
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
At beginning of the period
|
155
|
(2,659)
|
2,788
|
7
|
291
|
|
Total comprehensive income for the period
|
-
|
31
|
158
|
1
|
190
|
|
Issue of ordinary shares
|
6
|
-
|
-
|
-
|
6
|
|
Movement in shares in employee share trusts
|
-
|
26
|
(80)
|
-
|
(54)
|
|
Equity-settled share-based cost
|
-
|
-
|
18
|
-
|
18
|
|
Tax related to share schemes
|
-
|
-
|
10
|
-
|
10
|
|
Equity dividends paid
|
-
|
-
|
(102)
|
-
|
(102)
|
|
Exchange and other adjustments
|
5
|
(5)
|
-
|
-
|
-
|
|
____
|
____
|
____
|
____
|
____
|
|
|
At end of the period
|
166
|
(2,607)
|
2,792
|
8
|
359
|
|
====
|
====
|
====
|
====
|
====
|
|
|
6 months ended 30 June 2010
|
|||||
|
Equity
share capital |
Other
reserves* |
Retained
earnings |
Non-controlling
interest |
Total
equity |
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
At beginning of the period
|
142
|
(2,649)
|
2,656
|
7
|
156
|
|
Total comprehensive income for the period
|
-
|
(24)
|
125
|
-
|
101
|
|
Issue of ordinary shares
|
12
|
-
|
-
|
-
|
12
|
|
Movement in shares in employee share trusts
|
-
|
(2)
|
(28)
|
-
|
(30)
|
|
Equity-settled share-based cost
|
-
|
-
|
6
|
-
|
6
|
|
Tax related to share schemes
|
-
|
-
|
7
|
-
|
7
|
|
Equity dividends paid
|
-
|
-
|
(84)
|
-
|
(84)
|
|
Exchange and other adjustments
|
(10)
|
10
|
-
|
-
|
-
|
|
____
|
____
|
____
|
____
|
____
|
|
|
At end of the period
|
144
|
(2,665)
|
2,682
|
7
|
168
|
|
====
|
====
|
====
|
====
|
====
|
|
|
*
|
Other reserves comprise the capital redemption reserve, shares held by employee share trusts, other reserves, unrealised gains and losses reserve and currency translation reserve.
|
|
2011
30 June
|
2010
30 June
|
2010
31 December
|
|
|
$m
|
$m
|
$m
|
|
|
ASSETS
|
|||
|
Property, plant and equipment
|
1,401
|
1,654
|
1,690
|
|
Goodwill
|
96
|
78
|
92
|
|
Intangible assets
|
277
|
253
|
266
|
|
Investment in associates and joint ventures
|
80
|
43
|
43
|
|
Retirement benefit assets
|
6
|
10
|
5
|
|
Other financial assets
|
154
|
151
|
135
|
|
Deferred tax receivable
|
116
|
86
|
79
|
|
_____
|
_____
|
_____
|
|
|
Total non-current assets
|
2,130
|
2,275
|
2,310
|
|
_____
|
_____
|
_____
|
|
|
Inventories
|
4
|
4
|
4
|
|
Trade and other receivables
|
427
|
421
|
371
|
|
Current tax receivable
|
4
|
50
|
13
|
|
Cash and cash equivalents
|
55
|
48
|
78
|
|
_____
|
_____
|
_____
|
|
|
Total current assets
|
490
|
523
|
466
|
|
Non-current assets classified as held for sale
|
258
|
82
|
-
|
|
______
|
______
|
______
|
|
|
Total assets (note 3)
|
2,878
|
2,880
|
2,776
|
|
=====
|
=====
|
=====
|
|
|
LIABILITIES
|
|||
|
Loans and other borrowings
|
(54)
|
(111)
|
(18)
|
|
Derivative financial instruments
|
(3)
|
(6)
|
(6)
|
|
Trade and other payables
|
(645)
|
(713)
|
(722)
|
|
Provisions
|
(23)
|
(38)
|
(8)
|
|
Current tax payable
|
(120)
|
(188)
|
(167)
|
|
_____
|
_____
|
_____
|
|
|
Total current liabilities
|
(845)
|
(1,056)
|
(921)
|
|
_____
|
_____
|
_____
|
|
|
Loans and other borrowings
|
(804)
|
(916)
|
(776)
|
|
Derivative financial instruments
|
(34)
|
(50)
|
(38)
|
|
Retirement benefit obligations
|
(190)
|
(159)
|
(200)
|
|
Trade and other payables
|
(488)
|
(427)
|
(464)
|
|
Provisions
|
(3)
|
-
|
(2)
|
|
Deferred tax payable
|
(94)
|
(100)
|
(84)
|
|
_____
|
_____
|
_____
|
|
|
Total non-current liabilities
|
(1,613)
|
(1,652)
|
(1,564)
|
|
Liabilities classified as held for sale
|
(61)
|
(4)
|
-
|
|
_____
|
_____
|
_____
|
|
|
Total liabilities
|
(2,519)
|
(2,712)
|
(2,485)
|
|
=====
|
=====
|
=====
|
|
|
Net assets
|
359
|
168
|
291
|
|
=====
|
=====
|
=====
|
|
|
EQUITY
|
|||
|
Equity share capital
|
166
|
144
|
155
|
|
Capital redemption reserve
|
10
|
10
|
10
|
|
Shares held by employee share trusts
|
(10)
|
(5)
|
(35)
|
|
Other reserves
|
(2,898)
|
(2,890)
|
(2,894)
|
|
Unrealised gains and losses reserve
|
67
|
49
|
49
|
|
Currency translation reserve
|
224
|
171
|
211
|
|
Retained earnings
|
2,792
|
2,682
|
2,788
|
|
______
|
______
|
______
|
|
|
IHG shareholders' equity
|
351
|
161
|
284
|
|
Non-controlling interest
|
8
|
7
|
7
|
|
______
|
______
|
______
|
|
|
Total equity
|
359
|
168
|
291
|
|
=====
|
=====
|
=====
|
|
2011
6 months ended
30 June
|
2010
6 months ended
30 June
|
||
|
$m
|
$m
|
||
|
Profit for the period
|
156
|
141
|
|
|
Adjustments for:
|
|||
|
Net financial expenses
|
32
|
31
|
|
|
Income tax charge
|
49
|
53
|
|
|
Depreciation and amortisation
|
51
|
55
|
|
|
Exceptional operating items
|
32
|
(4)
|
|
|
Equity-settled share-based cost, net of payments
|
15
|
-
|
|
|
Other non-cash movements
|
(1)
|
(2)
|
|
|
_____
|
_____
|
||
|
Operating cash flow before movements in working capital
|
334
|
274
|
|
|
Net change in loyalty programme liability and System Fund surplus
|
83
|
58
|
|
|
Other changes in net working capital
|
(190)
|
(56)
|
|
|
Utilisation of provisions
|
(7)
|
(27)
|
|
|
Retirement benefit contributions, net of cost
|
(11)
|
(2)
|
|
|
Cash flows relating to exceptional operating items
|
(29)
|
(9)
|
|
|
_____
|
_____
|
||
|
Cash flow from operations
|
180
|
238
|
|
|
Interest paid
|
(17)
|
(18)
|
|
|
Interest received
|
1
|
1
|
|
|
Tax paid on operating activities
|
(51)
|
(40)
|
|
|
_____
|
_____
|
||
|
Net cash from operating activities
|
113
|
181
|
|
|
_____
|
_____
|
||
|
Cash flow from investing activities
|
|||
|
Purchases of property, plant and equipment
|
(18)
|
(33)
|
|
|
Purchase of intangible assets
|
(18)
|
(11)
|
|
|
Purchases of other financial assets
|
(12)
|
(3)
|
|
|
Purchases of associates and joint ventures
|
(34)
|
-
|
|
|
Disposal of assets, net of costs and cash disposed of
|
71
|
4
|
|
|
Proceeds from associates and other financial assets
|
5
|
13
|
|
|
Tax received on disposals
|
-
|
2
|
|
|
_____
|
_____
|
||
|
Net cash from investing activities
|
(6)
|
(28)
|
|
|
_____
|
_____
|
||
|
Cash flow from financing activities
|
|||
|
Proceeds from the issue of share capital
|
6
|
12
|
|
|
Purchase of own shares by employee share trusts
|
(57)
|
(23)
|
|
|
Dividends paid to shareholders
|
(102)
|
(84)
|
|
|
Decrease in borrowings
|
(3)
|
(48)
|
|
|
_____
|
_____
|
||
|
Net cash from financing activities
|
(156)
|
(143)
|
|
|
_____
|
_____
|
||
|
Net movement in cash and cash equivalents in the period
|
(49)
|
10
|
|
|
Cash and cash equivalents at beginning of the period
|
78
|
40
|
|
|
Exchange rate effects
|
(1)
|
(2)
|
|
|
_____
|
_____
|
||
|
Cash and cash equivalents at end of the period
|
28
|
48
|
|
|
=====
|
=====
|
||
|
Comprising:
|
|||
|
Cash and cash equivalants
|
55
|
48
|
|
|
Overdrafts included within current loans and other borrowings
|
(27)
|
-
|
|
|
____
|
____
|
||
|
28
|
48
|
||
|
====
|
====
|
||
|
1.
|
Basis of preparation
|
|
These condensed interim financial statements have been prepared in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority and IAS 34 'Interim Financial Reporting'. They have been prepared on a consistent basis using the accounting policies set out in the InterContinental Hotels Group PLC (the Group or IHG) Annual Report and Financial Statements for the year ended 31 December 2010.
These condensed interim financial statements are unaudited and do not constitute statutory accounts of the Group within the meaning of Section 435 of the Companies Act 2006. The auditors have carried out a review of the financial information in accordance with the guidance contained in ISRE 2410 (UK and Ireland) 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board.
The financial information for the year ended 31 December 2010 has been extracted from the Group's published financial statements for that year which contain an unqualified audit report and which have been filed with the Registrar of Companies.
After making enquiries, the directors have concluded that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the half-yearly condensed financial statements.
|
|
2.
|
Exchange rates
|
|
The results of operations have been translated into US dollars at the average rates of exchange for the period. In the case of sterling, the translation rate for the six months ended 30 June is $1= £0.62 (2011 3 months, $1 = £0.61; 2010 6 months, $1 = £0.66; 2010 3 months, $1=£0.67). In the case of the euro, the translation rate for the six months ended 30 June is $1 = €0.71 (2011 3 months, $1 = €0.70; 2010 6 months, $1 = €0.75; 2010 3 months, $1 = €0.79).
Assets and liabilities have been translated into US dollars at the rates of exchange on the last day of the period. In the case of sterling, the translation rate is $1=£0.62 (2010 31 December $1 = £0.64; 2010 30 June $1 = £0.67). In the case of the euro, the translation rate is $1 = €0.69 (2010 31 December $1 = €0.75; 2010 30 June $1 = €0.81).
|
|
3
.
|
Segmental information
|
||||
|
Revenue
|
|||||
|
2011
|
2010
|
2011
|
2010
|
||
|
3 months ended
30 June
|
3 months ended
30 June
|
6 months ended
30 June
|
6 months ended
30 June
|
||
|
$m
|
$m
|
$m
|
$m
|
||
|
Americas
|
222
|
215
|
416
|
393
|
|
|
EMEA
|
129
|
102
|
224
|
192
|
|
|
Asia Pacific
|
76
|
68
|
156
|
137
|
|
|
Central
|
27
|
25
|
54
|
50
|
|
|
____
|
____
|
____
|
____
|
||
|
Total revenue
|
454
|
410
|
850
|
772
|
|
|
====
|
====
|
====
|
====
|
||
|
All results relate to continuing operations.
|
|||||
|
Profit
|
2011
3 months ended
30 June
$m
|
2010
3 months ended
30 June
$m
|
2011
6 months ended
30 June
$m
|
2010
6 months ended
30 June
$m
|
|
|
Americas
|
128
|
107
|
225
|
179
|
|
|
EMEA
|
48
|
37
|
71
|
58
|
|
|
Asia Pacific
|
21
|
17
|
46
|
35
|
|
|
Central
|
(40)
|
(25)
|
(73)
|
(53)
|
|
|
____
|
____
|
____
|
____
|
||
|
Reportable segments' operating profit
|
157
|
136
|
269
|
219
|
|
|
Exceptional operating items (note 4)
|
(30)
|
6
|
(32)
|
4
|
|
|
____
|
____
|
____
|
____
|
||
|
Operating profit
|
127
|
142
|
237
|
223
|
|
|
Financial income
|
1
|
-
|
1
|
1
|
|
|
Financial expenses
|
(17)
|
(16)
|
(33)
|
(32)
|
|
|
____
|
____
|
____
|
____
|
||
|
Profit before tax
|
111
|
126
|
205
|
192
|
|
|
====
|
===
|
====
|
====
|
||
|
All results relate to continuing operations.
|
|||||
|
Assets
|
2011
30 June
$m
|
2010
30 June
$m
|
2010
31 December
$m
|
|
|
Americas
|
909
|
1,058
|
891
|
|
|
EMEA
|
923
|
827
|
856
|
|
|
Asia Pacific
|
669
|
630
|
665
|
|
|
Central
|
202
|
181
|
194
|
|
|
____
|
____
|
____
|
||
|
Segment assets
|
2,703
|
2,696
|
2,606
|
|
|
Unallocated assets:
|
||||
|
Deferred tax receivable
|
116
|
86
|
79
|
|
|
Current tax receivable
|
4
|
50
|
13
|
|
|
Cash and cash equivalents
|
55
|
48
|
78
|
|
|
____
|
____
|
____
|
||
|
Total assets
|
2,878
|
2,880
|
2,776
|
|
|
====
|
====
|
====
|
|
4.
|
Exceptional items
|
|||||
|
2011
3 months
ended 30 June
$m
|
2010
3 months
ended 30 June
$m
|
2011
6 months
ended 30 June
$m
|
2010
6 months
ended 30 June
$m
|
|||
|
Continuing operations:
|
||||||
|
Exceptional operating items
|
||||||
|
Administrative expenses:
|
||||||
|
Holiday Inn brand relaunch (a)
|
-
|
(2)
|
-
|
(3)
|
||
|
Litigation provisions (b)
|
-
|
-
|
(22)
|
-
|
||
|
Resolution of commercial dispute (c)
|
(37)
|
-
|
(37)
|
-
|
||
|
____
|
____
|
____
|
____
|
|||
|
(37)
|
(2)
|
(59)
|
(3)
|
|||
|
Other operating income and expenses:
|
||||||
|
Gain on sale of other financial assets (d)
|
-
|
8
|
-
|
8
|
||
|
VAT refund (e)
|
-
|
-
|
9
|
-
|
||
|
Gain on disposal of hotels (f)
|
9
|
-
|
9
|
-
|
||
|
_____
|
_____
|
_____
|
_____
|
|||
|
9
|
8
|
18
|
8
|
|||
|
Impairment:
|
||||||
|
Other financial assets (g)
|
(3)
|
-
|
(3)
|
(1)
|
||
|
Reversal of previously recorded impairment (h)
|
1
|
-
|
12
|
-
|
||
|
____
|
____
|
____
|
____
|
|||
|
(2)
|
-
|
9
|
(1)
|
|||
|
____
|
____
|
____
|
____
|
|||
|
(30)
|
6
|
(32)
|
4
|
|||
|
====
|
====
|
====
|
====
|
|||
|
Tax
|
||||||
|
Tax on exceptional operating items
|
9
|
(4)
|
11
|
-
|
||
|
Exceptional tax credit (i)
|
6
|
-
|
6
|
-
|
||
|
____
|
____
|
____
|
____
|
|||
|
15
|
(4)
|
17
|
-
|
|||
|
====
|
====
|
====
|
====
|
|||
|
Discontinued operations:
|
||||||
|
Gain on disposal of assets:
|
||||||
|
Tax credit (j)
|
-
|
-
|
-
|
2
|
||
|
====
|
====
|
====
|
====
|
|||
|
These items are treated as exceptional by reason of their size or nature.
|
||
|
a)
|
Related to costs incurred in support of the worldwide relaunch of the Holiday Inn brand family that was announced on 24 October 2007 and substantially completed in 2010.
|
|
|
b)
|
Estimate of the amount potentially payable in respect of a prior year claim following an unfavourable court judgement in the Americas on 23 February 2011. Any final amount will not be known until the court process is complete.
|
|
|
c)
|
Relates to the settlement of a prior period commercial dispute in the EMEA region.
|
|
|
d)
|
Related to the gain on sale of an investment in the EMEA region.
|
|
|
e)
|
Arises in the UK and relates to periods prior to 1996.
|
|
|
f)
|
Relates to the sale of three hotels in North America.
|
|
|
g)
|
Relates to available-for-sale equity investments subject to prolonged declines in their fair value below cost.
|
|
|
h)
|
Mainly relates to the partial reversal of a prior year impairment charge recorded in respect of a North American hotel that was sold in June 2011.
|
|
|
i)
|
Relates to a revision of the estimated tax impacts of an internal reorganisation completed in 2010.
|
|
|
j)
|
Related to tax refunded in respect of a prior year hotel sale.
|
|
|
5.
|
Tax
|
|
The tax charge for the six months ended 30 June on the combined profit from continuing and discontinued operations, excluding the impact of exceptional items (note 4), has been calculated using an estimated effective annual tax rate of 28% (2010 28%) analysed as follows.
|
|
2011
|
2011
|
2011
|
2010
|
2010
|
2010
|
|||
|
3 months ended 30 June
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
||
|
Before exceptional items
|
||||||||
|
Continuing operations
|
141
|
(39)
|
28%
|
120
|
(35)
|
29%
|
||
|
Exceptional items
|
||||||||
|
Continuing operations
|
(30)
|
15
|
6
|
(4)
|
||||
|
____
|
____
|
____
|
____
|
|||||
|
111
|
(24)
|
126
|
(39)
|
|||||
|
====
|
====
|
====
|
====
|
|||||
|
Analysed as:
|
||||||||
|
UK tax
|
(3)
|
(4)
|
||||||
|
Foreign tax
|
(21)
|
(35)
|
||||||
|
____
|
____
|
|||||||
|
(24)
|
(39)
|
|||||||
|
====
|
====
|
|||||||
|
2011
|
2011
|
2011
|
2010
|
2010
|
2010
|
|||
|
6 months ended 30 June
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
||
|
Before exceptional items
|
||||||||
|
Continuing operations
|
237
|
(66)
|
28%
|
188
|
(53)
|
28%
|
||
|
Exceptional items
|
||||||||
|
Continuing operations
|
(32)
|
17
|
4
|
-
|
||||
|
Discontinued operations
|
-
|
-
|
-
|
2
|
||||
|
____
|
____
|
____
|
____
|
|||||
|
205
|
(49)
|
192
|
(51)
|
|||||
|
====
|
====
|
====
|
====
|
|||||
|
Analysed as:
|
||||||||
|
UK tax
|
(10)
|
(5)
|
||||||
|
Foreign tax
|
(39)
|
(46)
|
||||||
|
____
|
____
|
|||||||
|
(49)
|
(51)
|
|||||||
|
====
|
====
|
|||||||
|
By also excluding the effect of prior year items, the equivalent effective tax rate for the six months ended 30 June would be approximately 35% (2010 34%). Prior year items have been treated as relating wholly to continuing operations.
|
|
6.
|
Earnings per ordinary share
|
|
Basic earnings per ordinary share is calculated by dividing the profit for the period available for IHG equity holders by the weighted average number of ordinary shares, excluding investment in own shares, in issue during the period.
Diluted earnings per ordinary share is calculated by adjusting basic earnings per ordinary share to reflect the notional exercise of the weighted average number of dilutive ordinary share options outstanding during the period.
Adjusted earnings per ordinary share is disclosed in order to show performance undistorted by exceptional items, to give a more meaningful comparison of the Group's performance.
|
|
3 months ended 30 June
|
2011
|
2011
|
2010
|
2010
|
||
|
Continuing
operations
|
Total
|
Continuing
operations
|
Total
|
|||
|
Basic earnings per ordinary share
|
||||||
|
Profit available for equity holders ($m)
|
87
|
87
|
87
|
87
|
||
|
Basic weighted average number of ordinary shares (millions)
|
290
|
290
|
288
|
288
|
||
|
Basic earnings per ordinary share (cents)
|
30.0
|
30.0
|
30.2
|
30.2
|
||
|
====
|
====
|
====
|
====
|
|||
|
Diluted earnings per ordinary share
|
||||||
|
Profit available for equity holders ($m)
|
87
|
87
|
87
|
87
|
||
|
Diluted weighted average number of ordinary shares (millions)
|
295
|
295
|
297
|
297
|
||
|
Diluted earnings per ordinary share (cents)
|
29.5
|
29.5
|
29.3
|
29.3
|
||
|
====
|
====
|
====
|
====
|
|||
|
Adjusted earnings per ordinary share
|
||||||
|
Profit available for equity holders ($m)
|
87
|
87
|
87
|
87
|
||
|
Adjusting items (note 4):
|
||||||
|
Exceptional operating items ($m)
|
30
|
30
|
(6)
|
(6)
|
||
|
Tax on exceptional operating items ($m)
|
(9)
|
(9)
|
4
|
4
|
||
|
Exceptional tax credit ($m)
|
(6)
|
(6)
|
-
|
-
|
||
|
____
|
____
|
____
|
____
|
|||
|
Adjusted earnings ($m)
|
102
|
102
|
85
|
85
|
||
|
Basic weighted average number of ordinary shares (millions)
|
290
|
290
|
288
|
288
|
||
|
Adjusted earnings per ordinary share (cents)
|
35.2
|
35.2
|
29.5
|
29.5
|
||
|
====
|
====
|
====
|
====
|
|||
|
Diluted weighted average number of ordinary shares (millions)
|
295
|
295
|
297
|
297
|
||
|
Adjusted diluted earnings per ordinary share (cents)
|
34.6
|
34.6
|
28.6
|
28.6
|
||
|
====
|
====
|
====
|
====
|
|||
|
6.
|
Earnings per ordinary share (continued)
|
|||||
|
6 months ended 30 June
|
2011
|
2011
|
2010
|
2010
|
||
|
Continuing
operations
|
Total
|
Continuing
operations
|
Total
|
|||
|
Basic earnings per ordinary share
|
||||||
|
Profit available for equity holders ($m)
|
156
|
156
|
139
|
141
|
||
|
Basic weighted average number of ordinary shares (millions)
|
289
|
289
|
287
|
287
|
||
|
Basic earnings per ordinary share (cents)
|
54.0
|
54.0
|
48.4
|
49.1
|
||
|
====
|
====
|
====
|
====
|
|||
|
Diluted earnings per ordinary share
|
||||||
|
Profit available for equity holders ($m)
|
156
|
156
|
139
|
141
|
||
|
Diluted weighted average number of ordinary shares (millions)
|
294
|
294
|
296
|
296
|
||
|
Diluted earnings per ordinary share (cents)
|
53.1
|
53.1
|
47.0
|
47.6
|
||
|
====
|
====
|
====
|
====
|
|||
|
Adjusted earnings per ordinary share
|
||||||
|
Profit available for equity holders ($m)
|
156
|
156
|
139
|
141
|
||
|
Adjusting items (note 4):
|
||||||
|
Exceptional operating items ($m)
|
32
|
32
|
(4)
|
(4)
|
||
|
Tax on exceptional operating items ($m)
|
(11)
|
(11)
|
-
|
-
|
||
|
Exceptional tax credit ($m)
|
(6)
|
(6)
|
-
|
-
|
||
|
Gain on disposal of discontinued operations, net of tax ($m)
|
-
|
-
|
-
|
(2)
|
||
|
____
|
____
|
____
|
____
|
|||
|
Adjusted earnings ($m)
|
171
|
171
|
135
|
135
|
||
|
Basic weighted average number of ordinary shares (millions)
|
289
|
289
|
287
|
287
|
||
|
Adjusted earnings per ordinary share (cents)
|
59.2
|
59.2
|
47.0
|
47.0
|
||
|
====
|
====
|
====
|
====
|
|||
|
Diluted weighted average number of ordinary shares (millions)
|
294
|
294
|
296
|
296
|
||
|
Adjusted diluted earnings per ordinary share (cents)
|
58.2
|
58.2
|
45.6
|
45.6
|
||
|
====
|
====
|
====
|
====
|
|||
|
Earnings per ordinary share from discontinued operations
|
|
2011
3 months ended
30 June
cents per share
|
2010
3 months ended
30 June
cents per share
|
2011
6 months ended
30 June
cents per share
|
2010
6 months ended
30 June
cents per share
|
||
|
Basic
|
-
|
-
|
-
|
0.7
|
|
|
Diluted
|
-
|
-
|
-
|
0.6
|
|
|
====
|
====
|
====
|
====
|
|
The diluted weighted average number of ordinary shares is calculated as:
|
|||||
|
2011
3 months ended
30 June
millions
|
2010
3 months ended
30 June
millions
|
2011
6 months ended
30 June
millions
|
2010
6 months ended
30 June
millions
|
||
|
Basic weighted average number of ordinary shares
|
290
|
288
|
289
|
287
|
|
|
Dilutive potential ordinary shares - employee share options
|
5
|
9
|
5
|
9
|
|
|
_____
|
____
|
_____
|
____
|
||
|
295
|
297
|
294
|
296
|
||
|
====
|
====
|
====
|
====
|
||
|
7.
|
Dividends
|
||||
|
2011
6 months
ended
30 June
cents per share
|
2010
6 months
ended
30 June
cents per share
|
2011
6 months
ended
30 June
$m
|
2010
6 months
ended
30 June
$m
|
||
|
Paid during the period:
|
|||||
|
Final (declared for previous year)
|
35.2
|
29.2
|
102
|
84
|
|
|
====
|
====
|
====
|
====
|
||
|
Proposed for the period:
|
|||||
|
Interim
|
16.0
|
12.8
|
46
|
37
|
|
|
====
|
====
|
====
|
====
|
||
|
8.
|
Net debt
|
|||
|
2011
30 June
|
2010
30 June
|
2010
31 December
|
||
|
$m
|
$m
|
$m
|
||
|
Cash and cash equivalents
|
55
|
48
|
78
|
|
|
Loans and other borrowings - current
|
(54)
|
(111)
|
(18)
|
|
|
Loans and other borrowings - non-current
|
(804)
|
(916)
|
(776)
|
|
|
Derivatives hedging debt values*
|
(15)
|
(40)
|
(27)
|
|
|
_____
|
____
|
____
|
||
|
Net debt
|
(818)
|
(1,019)
|
(743)
|
|
|
====
|
====
|
====
|
||
|
Finance lease liability included above
|
(208)
|
(205)
|
(206)
|
|
|
====
|
====
|
====
|
||
|
*
|
Net debt includes the exchange element of the fair value of currency swaps that fix the value of the Group's £250m 6% bonds at $415m. An equal and opposite exchange adjustment on the retranslation of the £250m 6% bonds is included in non-current loans and other borrowings.
|
|
9.
|
Movement in net debt
|
|||
|
2011
6 months ended
30 June
|
2010
6 months ended
30 June
|
2010
12 months ended
31 December
|
||
|
$m
|
$m
|
$m
|
||
|
Net (decrease)/increase in cash and cash equivalents
|
(49)
|
10
|
51
|
|
|
Add back cash flows in respect of other components of net debt:
|
||||
|
Decrease in other borrowings
|
3
|
48
|
292
|
|
|
____
|
____
|
____
|
||
|
(Increase)/decrease in net debt arising from cash flows
|
(46)
|
58
|
343
|
|
|
Non-cash movements:
|
||||
|
Finance lease liability
|
(1)
|
(1)
|
(2)
|
|
|
Exchange and other adjustments
|
(28)
|
16
|
8
|
|
|
____
|
____
|
____
|
||
|
(Increase)/decrease in net debt
|
(75)
|
73
|
349
|
|
|
Net debt at beginning of the period
|
(743)
|
(1,092)
|
(1,092)
|
|
|
____
|
____
|
____
|
||
|
Net debt at end of the period
|
(818)
|
(1,019)
|
(743)
|
|
|
====
|
====
|
====
|
||
|
10.
|
Capital commitments and contingencies
|
|
At 30 June 2011, the amount contracted for but not provided for in the financial statements for expenditure on property, plant and equipment and intangible assets was $19m (2010 31 December $14m, 30 June $5m). The Group has also committed to invest $60m in two joint ventures of which $32m had been spent at 30 June 2011.
At 30 June 2011, the Group had contingent liabilities of $1m (2010 31 December $8m, 30 June $10m) mainly relating to litigation claims.
In limited cases, the Group may provide performance guarantees to third-party owners to secure management contracts. The maximum unprovided exposure under such guarantees is $48m (2010 31 December $90m, 30 June $86m).
From time to time, the Group is subject to legal proceedings the ultimate outcome of each being always subject to many uncertainties inherent in litigation. The Group has also given warranties in respect of the disposal of certain of its former subsidiaries. It is the view of the Directors that, other than to the extent that liabilities have been provided for in these financial statements, such legal proceedings and warranties are not expected to result in material financial loss to the Group.
|
|
11.
|
Events after the reporting period
|
|
On 1 July 2011, the Group completed the sale of a hotel asset and partnership interest in Australia for proceeds equivalent to US$71m realising an estimated profit of US$28m.
On 25 July 2011, the Group paid a security deposit of $37m to Hospitality Properties Trust (HPT) in connection with the consolidation, revision and extension of its four existing management agreements into one new 25 year management agreement, effective 1 July 2011.
|
|
INDEPENDENT REVIEW REPORT TO
INTERCONTINENTAL HOTELS GROUP PLC
|
|
|
Introduction
We have been engaged by the Company to review the condensed set of financial statements in the interim financial report for the three and six months ended 30 June 2011 which comprises the Group income statement, Group statement of comprehensive income, Group statement of changes in equity, Group statement of financial position, Group statement of cash flows and the related notes 1 to 11. We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland), 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.
Directors' Responsibilities
The interim financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the interim financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this interim financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim financial report based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the three and six months ended 30 June 2011 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
Ernst & Young LLP
London
8 August 2011
|
|
InterContinental Hotels Group PLC
|
||
|
(Registrant)
|
||
|
By:
|
/s/ C. Cox
|
|
|
Name:
|
C. COX
|
|
|
Title:
|
COMPANY SECRETARIAL OFFICER
|
|
|
Date:
|
09 August 2011
|
|