About InterContinental Hotels Group PLC

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels. The company predominantly franchise its brands and manages hotels on behalf of third party hotel owners. The company has a weighting towards Essentials, its pipeline shows an increasing proportion of growth in the Premium and Luxury and Lifestyle segments, as well as more even geographical spread. The company has a portfolio of 18 brands across more than 100 countries in the Luxury & Life style, Premium, Essentials, Suites and Exclusive partners categories. The company generally franchise or manage hotels with the decision largely driven by market maturity, owner preference and in certain cases, the particular brand. Hotel in the Essentials category tend to be franchised while Luxury &Lifestyle hotels are predominantly managed. The company predominantly franchises its brands and manages hotels on behalf of third-party hotel owners. While the company will continue to have a weighting towards Essentials, its pipeline shows an increasing proportion of growth in the Premium and Luxury & Lifestyle segments, as well as a more even geographical spread. The company’s broad geographic spread and weighting towards essential business and domestic leisure travel has driven comparative resilience during times of economic downturn. Though this continues to be a core component of the company’s business, it has made excellent progress in expanding its presence in the Luxury & Lifestyle segment, which generally generates higher fees per room. This category is 13% of IHG’s system size, though comprises 20% of the future growth pipeline. The company receives a fixed percentage of rooms revenue when a guest stays at one of its hotels. From the company’s managed hotels, it generates revenue through a fixed percentage of the total hotel revenue and a proportion of hotel profit. The company receives marketing, distribution, technology and other fees for providing access to its enterprise platform. IHG manages a System Fund for the benefit of hotels within the IHG system and their third-party owners, who pay contributions into it. This includes a marketing and reservation assessment and a loyalty assessment. The company’s strategic focus on having a diverse and attractive selection of distinct brands that meet the needs of a range of guests and owners has helped it transform its portfolio and grow its estate, which stands at more than 6,000 hotels globally. To drive growth across its portfolio, the company has made key investments in its enterprise, including a transformed IHG One Rewards loyalty programme and a powerful IHG Hotels & Resorts masterbrand that together are growing awareness of its brands. The company has invested in its cloud-based IHG Concerto platform, including its Guest Reservation System, to better connect with guests and owners. The company has developed tools, training and programmes to support hotels. The key profit-generating region is the U.S., and the company is also represented in Latin America, Canada, Mexico and the Caribbean. 93% of rooms in the region are operated under the franchise business model, primarily under its brands in the upper midscale segment (including the Holiday Inn Brand Family). In the upscale market segment, Crowne Plaza is predominantly franchised whereas, in the luxury market segment, InterContinental branded hotels are operated under both franchise and management agreements, while Kimpton is predominantly managed. Revenues are primarily generated from hotels in the U.K. and gateway cities in continental Europe, the Middle East and Asia. The largest proportion of rooms in the U.K. and continental Europe are operated under the franchise business model, primarily under the company’s upper midscale brands (Holiday Inn and Holiday Inn Express). In the upscale market segment, Crowne Plaza is evenly proportioned between the franchised and managed operating models, whereas in the luxury market segment, the majority of InterContinental branded hotels are operated under management agreements. The majority of hotels in markets outside Europe are operated under the managed business model. Strategy The key elements of the company's strategy are to create exceptional guest experiences and owner returns needed to grow its brands in the industry’s valuable markets and segments; deliver through a culture that retains and attracts the best people; and embrace opportunities to positively impact the world around it. History InterContinental Hotels Group PLC was founded in 1777. The company was incorporated and registered in England and Wales in 2004 as a limited company under the Companies Act 1985.