1、opportunity, strategy,investment, targets,performance, progress, growth, profits, returns,dividends, resultsgreat hotelsguests loveIHG Annual Report and Financial Statements 200725The Board, senior management and their responsibilities45Group financial statements1Overview5Business review89Parent com
2、pany financial statements95Useful information26The Board of Directors27Other members of the Executive Committee28Directors report30Corporate governance35Audit Committee report36Remuneration report6Business overview9People11Corporate responsibility12Group performance14Regional performance20Other fina
3、ncial information22Risk management1Welcome to IHG2Highlights3Message from the Chairman and Chief Executive4The IHG brands90Statement of Directors responsibilities91Independent auditors report to the members92Parent company balance sheet93Notes to the parent company financial statements96Glossary97Sh
4、areholder profiles98Investor information99Financial calendar100Contacts101Forward-looking statements46Statement of Directors responsibilities47Independent auditors report to the members48Group income statement 49Group statement of recognised income and expense 50Group cash flow statement 51Group bal
5、ance sheet52Corporate information and accounting policies57Notes to the Group financial statementsContentsOverview1GROUP FINANCIALSTATEMENTSTHE BOARD, SENIORMANAGEMENT AND THEIR RESPONSIBILITIESBUSINESS REVIEWOVERVIEWPARENT COMPANY FINANCIAL STATEMENTSUSEFUL INFORMATIONIn 2007 our operating profits
6、grew, reflecting a record increase in our room and hotel count and a healthy increase in our revenues per room night.We are one of the worlds largest hotel companies and are focused on quality growth through managing andfranchising our seven distinctive brands.Our core purpose is to create Great Hot
7、els Guests Love. We do this by placing guest satisfaction at the heart of everything we do and, as a result, developing ourfinancial strength for the benefit of all our stakeholders.This Report presents a full review of our businessendeavours, embracing the key areas of employeeengagement and corpor
8、ate responsibility as well as our financial and operational performance and approachtowards risk management. We also present a wide range of statutory and governance data and our full financialstatements for the year.Welcome to IHG2IHG Annual Report and Financial Statements 2007HighlightsRECORD NET
9、ROOMS GROWTH UP 5%BY 28,848ROOMS TOTAL HOTELS OPEN UNDER IHG BRANDSUP 208TO 3,949 HOTELSRECORD SIGNINGS UP 22%TO 125,533ROOMSDEVELOPMENT PIPELINE UP 43%TO 225,872ROOMSREVENUE PER AVAILABLE ROOMUP 7%TOTAL GROSS REVENUEFROM ALL HOTELS IN IHG SYSTEM UP 17%TO$18bn+CONTINUING REVENUEUP 12%TO 883mCONTINUI
10、NG OPERATING PROFIT*UP 19%TO 237mADJUSTED CONTINUING EARNINGS PER SHAREUP 23%TO 46.9pSPECIAL DIVIDEND709mPAIDFINAL DIVIDENDUP 12%TO 14.9p Total system room revenue divided by the number of room nights available. Total room revenue from franchised hotels and totalhotel revenue from managed, owned and
11、 leasedhotels (not revenue attributable to IHG, as it is derivedmainly from hotels owned by third parties).+US dollars.*Operating profit before exceptional items.“ 2007 was a year of excellent progress for IHG in which the Company recordedstrong growth in an expanding industry.We opened and signed a
12、 record numberof hotels, and grew revenue per availableroom (RevPAR) faster than the market in all our major geographies. Our brandsare increasingly being chosen over thoseof our competitors, by guests and by thehotel owners with whom we partner.” Andrew CosslettChief ExecutiveDavid WebsterChairmanO
13、VERVIEWHighlights and Message from the Chairman and Chief Executive3OVERVIEWMessage from the Chairman and Chief ExecutiveStrong tradingOur financial performance was strong.Continuing operating profit beforeexceptional items was up 19 per cent,from 200 million to 237 million, andup 30 per cent at con
14、stant exchangerates. Adjusted continuing earnings per share rose 23 per cent from 38.0p to 46.9p. Global RevPAR rose by 7 per cent, mainly driven by guestswillingness to pay more for an enhanced customer experience.Accelerating growthThe number of hotels which operateunder IHGs brands grew at a reco
15、rdpace. We opened 366 hotels in 2007, onea day on average. We continued to focuson improving the quality of our hotelestate and removed over 150 hotelsduring the year. Taking into accountthese removals, the number of hotelrooms in our system increased by over 5 per cent, representing more than a 50
16、per cent increase in rooms growthover 2006. Our future growth lies in theforward order book of contracts that we have signed for new hotels ourpipeline. This pipeline also grew at arecord pace in 2007, and now stands at 1,674 hotels, comprising 225,872rooms, a 43 per cent increase on 2006.We signed
17、873 hotels in the year,comprising 125,533 rooms, a 22 percent increase on 2006. This is by far the highest level of signings in the hotelindustry. We have now added a total of 47,419 rooms to our system againstour three-year target of adding 50,000 to 60,000 net rooms by the end of 2008. We remain c
18、onfident we will exceed thetop end of this target.Improving brand performanceOver the last two years we haveconducted extensive hotel researchstudies across the globe and we are now applying the insights from this work to refresh and renew our hotel brands.The performance of the InterContinentalbran
19、d continues to gather pace; wesigned 33 new InterContinental hotelsaround the world in 2007 and ended theyear with a record pipeline of 62 hotels.In October 2007 we announced theglobal relaunch of our Holiday Inn brandfamily. The relaunch is designed to raisethe standards of quality, style andcomfor
20、t in the hotels, and will deliver a consistent, best-in-class service toour guests. Owners and franchisees willinvest up to 500 million in Holiday Innhotels around the world over the nextthree years, and IHG will separatelymake a 30 million contribution. This activity should generate a strongreturn
21、on investment through expectedincreases in RevPAR followingcompletion of the relaunch. Board and Executive CommitteeAs previously announced, Richard Hartman retired from the Boardin September 2007. We thank him forhis service and wish him well for thefuture. In December 2007 Ying Yeh wasappointed as
22、 a Non-Executive Director.Her in-depth knowledge of the AsiaPacific region will be of great value to IHG. Two of our Non-ExecutiveDirectors, Sir David Prosser and Robert C Larson, are planning to retirefrom the Board at the end of May andDecember 2008, respectively. Both have given outstanding servi
23、ce to IHG.We also made changes to our ExecutiveCommittee. Kirk Kinsell, previouslyChief Development Officer for theAmericas region, took up the position of President of our Europe, Middle East and Africa region. Peter Gowers,formerly Chief Marketing Officer,became President of our Asia Pacificregion
24、, and we welcomed back Tom Seddon (who had previously workedfor IHG) as Chief Marketing Officer.Shareholder returnsDuring the year we returned 790 millionto shareholders by way of a 709 millionspecial dividend and 81 million ofshare buybacks. This takes our totalfunds returned to shareholders sinceM
25、arch 2004 to 3.5 billion.Dividend increaseThe Board is recommending a 12 per cent increase to the final dividendfor 2007, taking it to 14.9p per share.This will give a full year dividend of 20.6p,12 per cent higher than in 2006. Subjectto shareholder approval, the finaldividend will be paid on 6 Jun
26、e 2008.OutlookThe outstanding contribution from our people has driven excellent results in 2007. We have the biggestdevelopment pipeline in the industryand this will deliver another high level of hotel openings in 2008. Although the current economic environment is less predictable than in 2007, our
27、broadly-based portfolio of brands and our resilient fee-based business modelposition us well for future growth. David WebsterChairmanAndrew CosslettChief Executive4IHG Annual Report and Financial Statements 2007The IHGbrandsOur seven hotel brands and our Priority Club Rewards programme are among the
28、 best known in the world. High-class facilities andservices for the discerningbusiness and leisuretraveller. Memorableexperiences in speciallocations.The industrys first brandedboutique hotel, aimed atstyle-conscious guests who want peaceful and affordable luxury.Relaunched in 2007 toimprove our abi
29、lity to meetguest needs for contemporary,high-quality facilities. Simple elegance and full-service facilities forbusiness and leisure guestsin more than 50 countriesaround the world.Convenience, comfort and value make Holiday InnExpress a popular choicewith guests and hotel owners.Studios and one-be
30、droomsuites offer convenience and comfort for guest stays of a week or longer.Our award-winning rewardsprogramme is the worldslargest hotel loyalty scheme,offering unrivalled incentivesto choose our hotels.A high-end brand offeringguests a home from homefor extended hotel stays. The brand will devel
31、opoutside the US in 2008.149 HOTELS8 OWNED AND LEASED104 MANAGED37 FRANCHISED50,762 ROOMS62 HOTELS IN DEVELOPMENT PIPELINE299 HOTELS1 OWNED AND LEASED89 MANAGED209FRANCHISED83,170ROOMS118HOTELS IN DEVELOPMENT PIPELINE1,381 HOTELS6 OWNED AND LEASED193 MANAGED1,182FRANCHISED256,699ROOMS365HOTELS IN DE
32、VELOPMENT PIPELINE1,808 HOTELS1 OWNED AND LEASED23 MANAGED1,784FRANCHISED156,531ROOMS712HOTELS IN DEVELOPMENT PIPELINE11 HOTELS2 MANAGED9 FRANCHISED1,501ROOMS52HOTELS IN DEVELOPMENT PIPELINE158 HOTELS78 MANAGED80 FRANCHISED16,825ROOMS207HOTELS IN DEVELOPMENT PIPELINE122 HOTELS2 OWNED AND LEASED41 MA
33、NAGED79FRANCHISED13,466ROOMS157HOTELS IN DEVELOPMENT PIPELINE37MILLION MEMBERSWORLDWIDEPRIORITY CLUB REWARDS WEBSITES IN NINE LANGUAGESThe relaunch included a new identity for the Holiday Inn brand family.BUSINESS REVIEWThe IHG brands and Business review5Business reviewBUSINESS REVIEW6Business overv
34、iew6Market and competitive environment7Strategy8Operating model8Business relationships9People11Corporate responsibility12Group performance12Group results12Total gross revenues13Global hotel and room count13Global pipeline14The Americas16Europe, Middle East and Africa 18Asia Pacific19Central20Other f
35、inancial information20Exceptional operating items20Net financial expenses20Taxation20Earnings per share20Dividends20Share price and market capitalisation20Cash flow20Capital structure and liquidity management21Asset disposal programme21Return of funds programme22Risk managementIn this section we pre
36、sent an overview of our business, includingthe markets in which we work, our strategy, activities, resourcesand operating environment. We also describe the developmentand financial performance of the business during 2007, maintrends and factors impacting the business, together withenvironmental and
37、employee matters.Business review Business overviewMarket and competitive environmentGlobal room capacityThe global hotel market has an estimated room capacity of 18 million rooms. Room capacity has grown at approximately 3% per annum over the last five years. Competitors in the market include other
38、large hotel companies and independentlyowned hotels.The market remains fragmented, with an estimated seven millionbranded hotel rooms (approximately 40% of the total market). IHGhas an estimated 8% share of the branded market (approximately3% of the total market). The top six major companies, includ
39、ingIHG, together control approximately 38% of the branded rooms, only 15% of total hotel rooms. Geographically, the market is more concentrated with the top 20 countries accounting for 80% of global hotel rooms. Within this, the United States (US) is dominant (more than 25% of globalhotel rooms) wit
40、h China, Japan and Italy being the next largestmarkets. The Groups brands have a leadership position (top threeby room numbers) in each of the six largest geographic markets,a greater representation than any other major hotel company. Drivers of growthUS market data indicates a steady increase in ho
41、tel industryrevenues, broadly in line with Gross Domestic Product, withgrowth of approximately 1% to 1.5% per annum in real termssince 1967, driven by a number of underlying trends:change in demographics as the population ages andbecomes wealthier, increased leisure time and incomeencourages more tr
42、avel and hotel visits;increase in travel volumes as low cost airlines grow rapidly;globalisation of trade and tourism;increase in affluence and freedom to travel within the Chinese middle class; andincrease in the preference for branded hotels amongstconsumers.Branded v unbranded2006 branded hotel r
43、ooms by region as a percentage of the total marketUS67%Europe, Middle East and Africa (EMEA)35%Asia Pacific28%Source: IHG Analysis, Northstar Travel Management.Within the global market, a relatively low proportion of hotelrooms are branded; however, there has been an increasing trend towards branded
44、 rooms. Branded companies are thereforegaining market share at the expense of unbranded companies.IHG is well positioned to benefit from this trend. Hotel owners areincreasingly recognising the benefits of working with a group suchas IHG which can offer a portfolio of brands to suit the differentrea
45、l estate opportunities an owner may have, together witheffective revenue delivery through global reservation channels.Furthermore, hotel ownership is increasingly being separatedfrom hotel operations, encouraging hotel owners to use thirdparties such as IHG to manage or franchise their hotels. Other
46、 factorsPotential negative trends impacting hotel industry growth include increased terrorism, environmental considerations and economic factors such as high oil prices, risk of recessionand global credit restrictions.Supply growth in the industry is cyclical, averaging between zero and 5% per annum
47、 historically. The Groups fee-based profitis partly protected from changes of supply due to its model ofthird-party ownership of hotels under IHG management andfranchise contracts. 6IHG Annual Report and Financial Statements 2007This Business Review provides a commentary on the performance of InterC
48、ontinental Hotels Group PLC (the Group or IHG) for the financial year ended 31 December 2007. BUSINESS REVIEWBusiness review7StrategyIHGs ambitionIHG seeks to deliver enduring top quartile shareholder returns, when measured against a broad global hotel peer group.IHGs strategyThe Groups underlying s
49、trategy is that by putting the guest first, IHG will grow a portfolio of differentiated hospitality brands in corestrategic countries and global key cities to maximise our scale advantage. With a clear target for room growth and a number of brandswith market premiums offering excellent returns for o
50、wners, the Group is well placed to execute the following strategic priorities:Strategic prioritiesKey performance indicators Current status and 2008 priorities(KPIs) v 2006*2007 developmentsBUSINESS REVIEWBrand performanceTo operate a portfolio of brandsattractive to both owners andguests that have
