1、Annual report and financial statements 2006Seeing the worldthrough your eyes.HighlightsContinuing operating profit* up 16%from 173mto 201m.Operating profit of 258m, including other operatingincome and expenses of 27m.9.8%growth in RevPAR+. Total gross revenuefrom all hotels in IHG system up 9%to 8.3
2、bn.Franchised operating profit up 10%to 235m.Managed operating profit up 27%to 85m.Adjusted continuing earnings per share up 67%from22.5pto 37.5p. Basic earnings per share of 104.1p.Further 850mreturn of funds announced, taking total funds returns to 3.6bnsince March 2004.Final dividend up 24%to 13.
3、3p. Total 2006 dividendup 20%to 18.4p.Room count up by 18,713 roomsto 556,246.Expect to exceed 50,000 to 60,000 net rooms growth target.Signings up 47%to 102,774 rooms. Development pipeline up by 49,479 roomsto 157,991.* Operating profit before other operating income and expenses.+Room revenue divid
4、ed by the number of room nights available.Total room revenue from franchised hotels and total hotel revenue from managed, owned and leased hotels (not revenue attributable to IHG, as it is derived mainly from hotels owned by third parties). Excludes special interim dividend paid in June 2006.Front c
5、over photo: view from InterContinental London Park LaneInsideIHG Annual report and financial statements 200612 CHAIRMAN S STATEMENT3 CHIEF EXECUTIVE S REVIEW5 OPERATING AND FINANCIAL REVIEW6 Business overview8 Significant developments9 Group performance11 The Americas13 Europe, Middle East and Afric
6、a (EMEA)14 Asia Pacific15 Central15 Corporate information17 Risk management21 THE BOARD, SENIOR MANAGEMENT AND THEIR RESPONSIBILITIES22 The Board and Executive Committee24 Directors report26 Corporate governance30 Audit Committee report31 Remuneration report41 GROUP FINANCIAL STATEMENTS42 Statement
7、of Directors responsibilities43 Independent auditors report to the members44 Group income statement 45 Group statement of recognised income and expense 46 Group cash flow statement 47 Group balance sheet48 Corporate information and accounting policies53 NOTES TO THE GROUP FINANCIAL STATEMENTS85 PARE
8、NT COMPANY FINANCIAL STATEMENTS86 Statement of Directors responsibilities87 Independent auditors report to the members88 Parent company balance sheet89 Notes to the parent company financial statements93 USEFUL INFORMATION94 Glossary95 Shareholder profiles and forward-looking statements96 Investor in
9、formation97 Financial calendar and contacts2IHG Annual report and financial statements 2006Chairmans statement2006 was the first full year of the new strategy for thebusiness launched by Chief Executive, Andrew Cosslett, in 2005. It has been a year where the change of focus in ourbusiness has delive
10、red strong results, and the growthpotential of the business has been demonstrated.Restructuring We continued to reduce the number of hotels we own during the year.We sold 31 hotels in Continental Europe, generating proceeds of 680 million beforetransaction costs, and retained all of them within our
11、brand family under long termcontracts. The proceeds from hotels sold since April 2003 is now 3 billion, leavingus owning approximately 1 billion (net book value) of hotels real estate.Shareholder returns We made further returns to shareholders during the year,bringing the total returned since March
12、2004 to over 2.7 billion. A further 31 millionremains to be returned through our ongoing share buyback programmes.We are pleased to have announced a further 850 million return of funds,comprising a 150 million share buyback and a 700 million special dividend, with a proposed share consolidation. The
13、 special dividend payment and shareconsolidation are due to be completed by the end of June 2007, and furtherdetails will be sent to shareholders in due course.Dividend increase As we come to the end of restructuring our capital base, the Board is recommending a significant increase to the final div
14、idend for 2006,taking it to 13.3p per share. This will give a full year dividend of 18.4p, 20 per centhigher than in 2005. Subject to approval at the Annual General Meeting, the finaldividend will be paid on 8 June 2007 to shareholders registered on 23 March 2007.Board Richard Hartman, President of
15、our Europe, Middle East and Africa region,(EMEA) announced during 2006 that he would retire in September 2007, aftereight years with the Group. Richard has done an outstanding job leading EMEAduring a period of rapid change. Sir Howard Stringer has also stood down as a Non-Executive Director, after
16、three years on the Board. Howard provided wise counsel through IHGs early years. We thank them both for their service and wish them well for the future.Outlook The results we achieved in 2006 were the product of exceptional work byour people across the Group. We have a clear position as the most own
17、er-focusedglobal hotel company, with a deep understanding of what guests want from ourhotel brands. This will allow us to offer our employees and business partnersattractive growth opportunities and create further value for shareholders.Accordingly, we continue to feel confident about the prospects
18、for the Group. David Webster ChairmanIHG Chairmans statement and Chief Executives review3Chairmans statement and Chief Executives reviewChief Executives review2006 was a year of excellent growth for IHG. The hotel industryas a whole grew strongly, benefiting from trends that will drivedemand for hot
19、el rooms for many years. IHG, through its strongbrand family, powerful operating systems that drive demand to ourhotels and unmatched global position, outperformed the industry.Strong trading Continuing operating profit*was up 16 per cent, from 173 million to 201 million. Adjusted continuing earning
20、s per share rose 67 per cent, from 22.5p to 37.5p.Global revenue per available room (RevPAR) the industrys main performance measure rose by 9.8 per cent, mainly driven by rate increases. Our RevPAR growth outperformedthe market in each of our seven key profit generating business areas around the wor
21、ld.Increased rooms growth We made good progress against the three year target we set in 2005 of adding 50,000 to 60,000 net rooms, reaching 125 hotels in China, and adding 15 to 25 InterContinentals by the end of 2008. We expected to add in the region of 10,000net rooms in 2006, and in fact added 18
22、,713. This included 4,937 rooms from IHGs jointventure in Japan with All Nippon Airlines. This deal makes us the largest internationalhotel operator in Japan, the worlds second largest hotel market, and we will be buildingon this position over the coming years. We further strengthened our market lea
23、dingposition in China. InterContinental expanded rapidly with 15 hotels opened in the year. Overall, during 2006 we signed deals for nearly 103,000 hotel rooms, a 47 per centincrease on 2005. Our pipeline of rooms, already the largest in the industry, increased 46 per cent in the year and now stands
24、 at almost 158,000 rooms.Given this strong level of openings and signings, we now expect to exceed our net rooms growth target by the end of 2008.Strengthening our business We have been developing plans to help us be better at whatwe do. During the year we undertook what we believe to be the biggest
25、 market researchproject involving hotels. We have looked inside and outside the industry for examples ofbest practice in franchising so that we can take what is already one of IHGs existingstrengths to a new level. We now have a deeper insight into how our hotel brands can beimproved so that they ad
26、dress our guests needs more effectively. The excellent brandperformance in 2006 is very encouraging and suggests that we are on the right track.These insights and learnings are proving effective in helping us to achieve IHGs businessobjectives and position us well for stronger performance in the yea
27、rs to come.In the pages that follow we review the operational and financial performance of theGroup and our different regions and demonstrate how we are gearing up for growth.Growth is our goal and we are increasingly well placed to achieve it. We have a clearstrategy, strong position and good peopl
28、e. Not surprisingly, our outlook remains positive.Andrew Cosslett Chief Executive*Operating profit before other operating income and expenses.4IHG Annual report and financial statements 2006In this section we present an overview of our business,including our strategy, activities, resources and opera
29、tingenvironment. We also refer to significant developments andpresent our operating and financial performance for 2006.6 BUSINESS OVERVIEW6 Market and competitive environment6 Strategy7 Business relationships8 SIGNIFICANT DEVELOPMENTS8 Investment with All Nippon Airways (ANA)8 Key owned and leased a
30、ssets8 Asset disposal programme8 Return of funds programme8 Management and organisation9 GROUP PERFORMANCE 9 Key performance indicators (KPIs)9 Group results10 Global room count and pipeline10 Total gross revenues10 Reservation systems and loyalty programme11 THE AMERICAS13 EUROPE, MIDDLE EAST AND A
31、FRICA (EMEA)14 ASIA PACIFIC15 CENTRAL15 CORPORATE INFORMATION15 Other operating income and expenses15 Net financing costs15 Taxation15 Gain on disposal of assets15 Earnings15 Dividends15 Share price and market capitalisation15 Cash flow15 Capital structure and liquidity management16 Treasury managem
32、ent16 Pensions16 Employees17 Corporate social responsibility (CSR)17 RISK MANAGEMENTOperating and financial reviewIHG Operating and financial review5Operating and financial reviewBusiness overviewMarket and competitive environmentIHG operates in the global hotel market which has an estimatedtotal ro
33、om capacity of 18.8 million rooms. Room capacity has beengrowing at approximately 3% per annum over the last five years.The hotel market is geographically concentrated with 12 countriesaccounting for two-thirds of worldwide hotel room supply. TheGroup has a leadership position (top three by room num
34、bers) in more of these markets than any other major hotel company.The hotel market is, however, a fragmented market with the fourlargest companies controlling only 11% of the global hotel roomsupply and the 10 largest controlling less than 21%. The Group isthe largest of these companies by room numb
35、ers with a 3% marketshare. The major competitors in this market include other largeglobal hotel companies, smaller hotel companies and independenthotels.Within the global market, a relatively low proportion of hotel roomsare branded (see figure 1), but there has been an increasing trendtowards brand
36、ed rooms. For example, Mintel, a market researchcompany, estimates that the proportion of branded rooms inEurope has grown from 15% in 2000 to 25% in 2004. Largerbranded companies are therefore gaining market share at theexpense of smaller companies and independent hotels. IHG is well positioned to
37、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 different real estate opportunities an owner may have. Furthermore, hotelownership is increasingly being separated from hotel operations
38、,encouraging hotel owners to use third parties such as IHG tomanage or franchise their hotels.Figure 1Percentage of branded hotel rooms by region 2004North America 65%South America 20%Europe 25%Middle East 25%East Asia 25%Source: Mintel (latest data available).US market data indicates a steady incre
39、ase in hotel industryrevenues, broadly in line with Gross Domestic Product, with growthof approximately 1-1.5% per annum in real terms since 1967, drivenby a number of underlying trends:change in demographics as the population ages and becomeswealthier, increased leisure time and income encourages m
40、oretravel 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 Chinesemiddle class; andincrease in the preference for branded hotels amongstconsumers.Potential negative trends include i
41、ncreased terrorism,environmental considerations and economic factors such as risingoil prices. Currently, however, there are no indications that demandis being significantly affected by these factors.Supply growth in the industry is cyclical, averaging between zeroand 5% per annum historically. The
42、Groups profit is partlyprotected from supply pressure due to its model of third partyownership of hotels under IHG management and franchisecontracts.Strategy IHG owns, operates and franchises hotels, with its brands beingrepresented in nearly 100 countries and territories around theworld. The strate
43、gy is to become the preferred hotel company forguests and owners by building the strongest operating system inthe industry, focused on the largest markets and segments wherescale really counts. During 2006, IHG initiated a number of researchprojects, the results of which will strengthen the Groups s
44、trategywith respect to brand development, franchising operations andgrowth opportunities.The Group has four stated strategic priorities:brand performance to operate a portfolio of brands attractiveto both owners and guests that have clear market positions inrelation to competitors;excellent hotel re
45、turns to generate higher owner returnsthrough revenue delivery and improved operating efficiency;market scale and knowledge to accelerate profitable growth inthe largest markets where the Group currently has scale; andaligned organisation to create a more efficient organisationwith strong core capab
46、ilities.6IHG Annual report and financial statements 2006This Operating and financial review (OFR) provides a commentary on the performance of InterContinental Hotels Group PLC (the Group or IHG) for the financial year ended 31 December 2006. Executing the four strategic priorities is designed to ach
47、ieve:organic growth of at least 50,000 to 60,000 net rooms by the end of 2008 (starting from 537,000 in June 2005), with specificgrowth targets for the InterContinental brand and the keyChinese market; andout-performance of total shareholder return against a competitor set.Growth is planned to be at
48、tained predominantly from managing and franchising rather than owning hotels. Nearly 550,000 roomsoperating under Group brands are managed or franchised (seefigure 2). The managed and franchised model is attractive becauseit enables the Group to achieve its goals with limited capitalinvestment. With
49、 a relatively fixed cost base, such growth yieldshigh incremental margins for IHG, and is primarily how the Grouphas grown recently. For this reason, the Group has executed adisposal programme for most of its owned hotels, releasing capitaland enabling returns of funds to shareholders.A key characte
50、ristic of the managed and franchised business modelon which the Group has focused is that it generates more cash thanis required for investment in the business, with a high return oncapital employed. Currently, 92% of continuing earnings beforeinterest, tax and regional and central overheads is deri
