1、Great Hotels GuestsLoveIHG Annual Review and Summary Financial Statement 2008This year we asked our employees totake their own pictures and capturewhat Great Hotels Guests Lovemeans to them. We had a fantasticresponse and hope that youll find the photographs we feature, markedby the icon above, as e
2、ngaging andinspiring as we have. We pride ourselves ongiving our employeesRoom to be yourself Find out how were tackling the war for talent and attractingthe best people to work for us.A great guest experience,every timeWe want our guests to enjoy their stay and to come back again.Read about what we
3、re doing to stand out from the crowd. page8page12Caught on cameraInside.Front cover photography:Left: Photo by Charles Yap, taken atInterContinental Paris Le Grand, FranceOur recently retired chief concierge, GillesHarrault, shows off some of the tools of thetrade. He says “Im often scribbling on ma
4、psand need to make sure I never run out of ink.”Centre: Photo by Amy Hu, taken at Holiday Inn Shanghai Vista, Peoples Republic of China“Holiday Inn is one of the very first Englishwords my three-year-old son learnt to say.And he really loves the relaunched brand!”Right: Photo by Tejas Lakhani, taken
5、at Holiday Inn Gem Park, Ooty, India“All guests are given a royal welcome, making them feel like they have arrived at a palace they can call home.”Great Hotels Guests Love is not just a snappy slogan. Its a guide to ouractions and our way of doing business. It puts our guests at the veryheart of eve
6、rything we do. Its about developing great hotels and brandsthat stand out from the competition. Its about doing things differentlyand delivering great service. Its about taking guests by surprise goingbeyond what they expect so they stay with us and recommend us toothers. Read all about how we have
7、been working hard throughout 2008 to deliver Great Hotels Guests Love. OVERVIEWHOW WE OPERATEWHERE WE OPERATEFACTS AND FIGURES1One big worldAn overview of the number of hotels in our system and development pipeline.2008 resultsA summary of our financialperformance during the year and a range of stat
8、utory,governance and other helpfulinformation for shareholders.page18page32Continuing operating profit*up 13%to $535 million* Before exceptional items.OVERVIEW2Highlights3Chairmans statement4Chief Executives review5Statement from the IAHI, The Owners AssociationHOW WE OPERATE6How it works7Seven grea
9、t hotel brands8Guest experience10Driving demand12Our people14Responsible business16Corporate reputationFACTS AND FIGURES32Summary financial statement36Our senior leadership team38Summary Directors report39Corporate governance40Summary remuneration report44Investor information45Financial calendarWHER
10、E WE OPERATE18Global overview20The Americas24Europe, Middle East and Africa28Asia PacificHighlightsRecord 34,757 net room additionsOpened over one new hotel a daySigned almost two new hotels a dayFinal dividend maintained at 29.2The Americas$451m2007 $440m Total system room revenue divided by the nu
11、mber 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).Includes four significant liquidated damages receipts totalling $33m; $1
12、3m in Americas, $16m in EMEA, $4m in Asia Pacific. (No such individually significant receipts in 2007).*Operating profit before exceptional items. An average for 2008. The Groups reporting currency changed from sterling to US dollars in 2008. Dividends are now determined in US dollars and converted
13、into sterling immediately before announcement. The sterling final dividend equivalent is 20.2p per share.Asia Pacific$68m2007 $63mEMEA$171m2007 $134mRevenue per available roomup 0.9%Total gross revenuefrom all hotels in IHG system up 7% to$19.1bnContinuing revenue up 5%to $1,854mContinuing operating
14、 profit* up 13%to $535m2 IHG Annual Review and Summary Financial Statement 2008Chairmans statement3OVERVIEWDear shareholderPERFORMANCE Our continuing revenue increased 5 per cent to $1.9 billion, with continuing operatingprofit before exceptional items of $535 million, up 13 per cent. Adjusted conti
15、nuingearnings per share increased 26 per cent from 93.8 cents to 117.8 cents. We had a$132 million exceptional charge in the year. This consisted of $35 million in relationto the Holiday Inn relaunch; $19 million of cost savings-related severance charges;$96 million of non-cash asset impairments, re
16、flecting the poorer trading environmentexpected in 2009; and other items including gains on asset sales, which netted to an$18 million credit. The Board is recommending that the final dividend for 2008 is maintained at 29.2 centsper share, taking the full-year dividend to 41.4 cents per share, up 2
17、per cent on 2007.This converts to a sterling full-year dividend of 26.6 pence, up 29 per cent over 2007.REPORTING CURRENCYWe changed the reporting currency of our Group accounts from sterling to US dollarswith our 2008 half-year results. This means we can reflect better the Groups profile of revenue
18、s and operating profits which are largely US dollar-based. Dividends are nowdetermined in US dollars and converted into sterling immediately before announcement.BOARD AND EXECUTIVE COMMITTEEStevan Porter 1954 2008We were all deeply saddened by the loss of Steve Porter, a Board member and President o
19、f the Americas, who passed away in August 2008 after a short illness. Under Steves inspired leadership the Americas region has been established as a dominant force. He is greatly missed.We must thank Richard Solomons, Finance Director, for taking on the additional role of leading the Americas region
20、 when Steve became seriously ill in July. Richarddid an outstanding job, ensuring a smooth transition to Jim Abrahamson, who wasappointed as our new President of the Americas in January this year. Jim joined IHGfrom Global Hyatt Corporation, where he was Head of Development, The Americas.Two of our
21、Non-Executive Directors, Sir David Prosser and Robert Larson, retiredfrom the Board in May and December 2008, respectively. I thank them for theirexcellent service and contribution. George Turner became Company Secretary inJanuary 2009, taking over from Richard Winter who retires in April 2009. I th
22、ankRichard for his service over the past 15 years and wish him well for the future. FINANCIAL POSITION AND SHAREHOLDER RETURNSWe continue with our prudent approach to managing our balance sheet. Wesuccessfully refinanced our debt facilities in May 2008, and have lowered ouroverall net debt position
23、by $400 million to $1.3 billion. During the year, wecontinued with our existing share buyback programme, taking the total fundsreturned since March 2004 to more than 3.5 billion. We have deferred theremaining 30 million of the buyback programme in order to preserve cash and maintain the strength of
24、our balance sheet. OUTLOOKOur solid performance in 2008 can be attributed to the exceptional efforts of all our people. Trading will undoubtedly be tough in 2009, but our strong balancesheet, resilient business model, great brands and excellent management team, led by Andy Cosslett, give me continue
25、d confidence in the future for the Group. David Webster ChairmanChairmans statement“2008 was a good year for IHG. We grew both sales and profits,*outperforming theindustry in all ourmajor markets, and we have been preparing the business for a tougherenvironment in 2009.”* Before exceptional items.Ch
26、ief Executives review“During 2008 we witnessedunprecedentedevents in the worldeconomy. In spite ofthis, it was a goodyear for IHG. Webenefited from ourstrategy to focus on franchising andmanaging hotelsand beat our threeyear net roomsgrowth target byover 35 per cent.”BUSINESS SUMMARYIn the year, we
27、continued to grow sales, profits* and revenue per available room(RevPAR) the industrys main performance measure which rose again, up 0.9 per cent globally. Throughout the year, we saw RevPAR outperformance in all our key markets, but in line with the industry we experienced a sharp downturn in the f
28、ourth quarter when our RevPAR declined 6.5 per cent. We have taken a number of actions to prepare the business for the tougher environment ahead. Sadly this has involved some redundancies across the Group.ACCELERATED ROOMS GROWTHWe opened a record 430 hotels during 2008, including 115 hotels in the
29、fourth quarter, when the economic conditions had worsened significantly.We were pleased to beat our target to add 50,000-60,000 net rooms within three years and in the end we added more than 82,000 rooms to the system a greatachievement. We signed 693 hotels, 98,886 rooms, into our forward developme
30、ntpipeline during the year. More than 25,000 of these rooms were signed in the fourth quarter, demonstrating the continuing appetite that owners and guests have for our brands all around the world. At the same time, we continued to focus on improving quality and we removed 193 hotels from our system
31、. Overall, we grew the number of rooms in our system by 6 per cent on a net basis. BRAND PERFORMANCEThe $1 billion relaunch of the Holiday Inn family of brands is progressing well. Almost 300 hotels had been relaunched by the end of 2008 and feedback from guests and owners has been encouraging. The
32、improvements will deliver a higher quality guest experience and stronger returns for hotel owners. In September 2008, we entered the timeshare market through an exclusive licensing and marketing agreement, launching our Holiday Inn Club Vacations brand. We successfully continued the expansion of our
33、 brands around the world with the launch of Staybridge Suites and Hotel Indigo outside our Americas region. ADVANTAGES OF SCALEWith almost 620,000 rooms worldwide, we can deploy our significant scale to benefit both ourselves and our hotel owners. Our reservations channels now bring in $7.6 billion
34、of room revenues and our Priority Club Rewards memberscontribute $5.9 billion. We now directly generate around 60 per cent of room nights at our hotels through our system. This year we started several projects to make more of our scale, to maximiseefficiencies and drive cost savings. These include e
35、stablishing a Group procurementteam and consolidating several accounting processes to overseas locations. Thesavings will continue in 2009 and we have committed to keeping our costs below 2008 levels. The trading environment became significantly tougher throughout 2008 and there is no doubt 2009 wil
36、l be very challenging, but ours is a resilient businessand our strategy remains the right one. Over the last few years, we have builtconfidence and momentum in the business and forged an even stronger bond with our community of outstanding owners with whom we operate our hotel system. Together we ar
37、e all focused on a common goal, to create Great Hotels Guests Love and despite the poor short-term outlook, we remain confident we can deliver our ambition.Andrew Cosslett Chief Executive4 IHG Annual Review and Summary Financial Statement 2008* Before exceptional items.Q&A with Andy Cosslett:Does IH
38、G have the right strategy to deal with the current economic climate?Three years ago we made the decision to focus onfranchising and managing hotels, so we are predominantlya fee-based business. The benefits of this include a morepredictable income stream and high cash generation. We own fewer proper
39、ties ourselves now and our growth isfunded by third-party investment. This growth helps us bemore resilient in a tougher economic environment as therevenue we receive from new rooms helps offset that lostfrom declines in RevPAR. We are confident our strategyand business model set us up well to weath
40、er the storm.What is IHG doing to respond to the changing market conditions?Over the past few years, we have taken a number ofstrategic decisions to set the business up for toughertimes. We have established a new procurement function to make the most of our scale, invested in technology andour reser
41、vations systems and focused our marketingspend on short-term tactical marketing and long-termbrand development. We will continue to review our costbase on an ongoing basis and invest in those things thatdrive guests to our hotels and revenues to our owners.Is IHG any more advantaged than any other h
42、otel company?As one of the biggest hotel operators, we have theadvantage of scale. We have a number of strong brandsacross different price points, in nearly 100 countriesaround the world. Then we have the support structure our reservations systems and our $1 billion marketingfund to deliver more gue
43、sts to our hotels. This is whyowners choose our brands.We have a great management team to lead the business.The loss of Steve Porter has been felt widely across IHG and the industry and he will be sorely missed as a colleague and as a friend. We are delighted, however, to welcome Jim Abrahamson to t
44、he Group, who bringswith him a wealth of experience of hotel operations in the Americas region.We also have a great working relationship with ourowners, both directly and through the IAHI, The OwnersAssociation. During these difficult times, it is even moreimportant to work side by side with our own
45、ers so that we can deliver Great Hotels Guests Love.Chief Executives review and Statement from the IAHI5Raising the level of guest satisfaction“We have a great collaborative relationship with IHG. In fact, its unique in the hotel industry.Our Association works closely with IHG to helpdirect the futu
46、re of the hotel brands were allcommitted to. It gives our members valuable access to global best practice and the IHGleadership team.We were deeply saddened by the loss of StevePorter, President of the Americas, in August 2008. He was an energetic and passionate hotelier, a great champion of the IAH
47、I and will be missed by all our members. We look forward to workingwith Jim Abrahamson as the new President of the region and welcome him to the team. Over the past year we have worked with IHG toreview the IAHI business plan and help our ownersmeet the challenges of 2009 head on. We alsocontinued t
48、o work together to relaunch the iconicHoliday Inn brand. The relaunch is going well. At the end of 2008 almost 300 hotels hadrelaunched globally. More are rolling out every day and owners are starting to see the positiveresults it has on guest satisfaction and revenue. The collective experience of o
49、ur members, togetherwith the exceptional support of IHG, gives us thetools we need to deliver Great Hotels Guests Love.”Thomas J. Corcoran, JrChairman, IAHI, The Owners Association & Chairman, The Felcor Trust For further information go to www.iahi.orgOVERVIEW6 IHG Annual Review and Summary Financia
50、l Statement 2008We operate hotels in three ways: as a franchisor, a manager and an owner. Our business model focuses on franchising and managing hotels on behalf of ourowners around the world.how it worksWe have 3,585 hotels operating under franchise agreements, 585 hotels we manage on behalf of own
