Financial Performance - Total dividend proposed is 152.3 cents, with a completed share buyback of $750 million and a new $800 million program approved for 2024[30]. - Operating profit from reportable segments reached $1,019 million, up 23% from 2022[30]. - Net cash from operating activities was $893 million, compared to $646 million in 2022, with adjusted free cash flow of $819 million, up from $565 million[30]. - Adjusted earnings per share (EPS) grew by 33% to 375.74 cents[30]. - IHG's fee revenue for 2023 was $2,164 million, with a significant portion derived from franchised hotels[105]. - The System Fund, which supports marketing and loyalty programs, generated $2,460 million in 2023[107]. - RevPAR reached record levels in 2023, with figures of $92.9, up from $73.9 in 2022[89]. Growth and Expansion - The company surpassed 6,300 open hotels, achieving a 3.8% net system size growth[30]. - Signings increased by 26% year-over-year, with conversions representing 37% of openings and signings combined[30]. - IHG opened 275 hotels and signed 556 properties, resulting in a net system size growth of 3.8% and a total pipeline of 2,016 hotels, representing 32% of the current system size[60]. - The company launched the Garner brand in the midscale segment, which is valued at $14 billion in the US, with two openings and seven signings achieved shortly after launch[66]. - The development pipeline has grown to more than 2,000 hotels, equivalent to 32% of today's system size, setting the stage for sustainable growth[169]. Sustainability Initiatives - The company achieved a 3.8% reduction in carbon emissions per occupied room since 2019, with new energy conservation measures introduced[32]. - IHG is progressing towards its Science-Based Target (SBT) by enhancing energy efficiency and facilitating access to renewable energy opportunities[138]. - The company made significant progress in sustainable initiatives, including expanding access to renewable energy through the Community Solar initiative[188]. - IHG's commitment to sustainability includes tools and programs to reduce energy, waste, and water consumption for hotel owners[197]. Customer Engagement and Loyalty - Loyalty program membership grew to over 130 million, with a 20% increase in Reward Nights compared to 2022[31]. - IHG One Rewards members booked over 55% of room nights globally, with the program growing to more than 130 million members[67]. - There was a record increase in loyalty enrollments year-on-year, with loyalty penetration now responsible for a significant portion of room nights globally[198]. - Enhanced loyalty benefits and digital products are expected to create richer guest experiences in 2024[192]. Technology and Innovation - The mobile app generated 38% more revenue in 2023 and saw a 60% increase in downloads year-on-year[67]. - The company is leveraging technology to enhance guest experiences, including the launch of a next-generation mobile app and IHG Wi-Fi Auto Connect[138]. - The company introduced a next-generation payments system at over 3,800 hotels in the US and Canada, improving check-in efficiency and reducing fees for owners[181]. - IHG is investing in technology platforms, data analytics, and partnerships to improve guest experiences and drive commercial performance[199]. Market Outlook - Oxford Economics forecasts a 4.0% annual growth in global hotel room nights consumed from 2023 to 2033, indicating strong long-term industry prospects[69]. - The global hotel industry is projected to grow at a CAGR of 2.4% from 2013 to 2023, with similar growth expected in the next five years[77]. - The hotel industry is valued at $700 billion, driven by factors such as population growth and an expanding middle class in emerging markets[75]. - In the Americas, room nights are expected to increase from 2.3 billion to 3.0 billion by 2033, while Greater China forecasts an additional 660 million room nights over the same period[70].

[Full Year 2023 Results Overview](index=1&type=section&id=Full%20Year%202023%20Results%20Overview) IHG delivered strong financial results in 2023, with significant growth in revenue, profit, and system size, alongside increased shareholder returns [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) IHG achieved robust financial growth in 2023, with reportable segment revenue up 17% to $2.16 billion and operating profit exceeding $1 billion for the first time 2023 Full Year Financial Highlights | Metric | 2023 | 2022 | % Change | Underlying % Change | | :--- | :--- | :--- | :--- | :--- | | **Reportable Segments** | | | | | | Revenue ($ million) | 2,164 | 1,843 | +17% | +19% | | Operating Profit ($ million) | 1,019 | 828 | +23% | +25% | | Fee Margin | 59.3% | 55.9% | +3.4%pts | | | Adjusted EPS (cents) | 375.7 | 282.3 | +33% | | | **Group Results** | | | | | | Total Revenue ($ million) | 4,624 | 3,892 | +19% | | | Operating Profit ($ million) | 1,066 | 628 | +70% | | | Basic EPS (cents) | 443.8 | 207.2 | +114% | | | Total Dividend per Share (cents) | 152.3 | 138.4 | +10% | | - Global RevPAR (Revenue Per Available Room) increased by **16.1% year-over-year** and was **10.9% ahead of 2019 pre-pandemic levels**, indicating a strong recovery in travel demand across all markets[6](index=6&type=chunk)[9](index=9&type=chunk) - The company announced an **$800 million share buyback program**, which, combined with ordinary dividends, is expected to return **over $1 billion to shareholders in 2024**[6](index=6&type=chunk)[9](index=9&type=chunk) [System Size and Pipeline Progress](index=3&type=section&id=System%20Size%20and%20Pipeline%20Progress) IHG's global system size grew 3.8% to 946,000 rooms, driven by strong development momentum and a record 79,200 room signings System and Pipeline Movements in 2023 (Rooms) | Region | Openings (Rooms) | Removals (Rooms) | Net Growth (Rooms) | Total System (Rooms) | System YoY% | Signings (Rooms) | Total Pipeline (Rooms) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Group** | **47,919** | **(13,343)** | **34,576** | **946,203** | **+3.8%** | **79,220** | **296,954** | | Americas | 10,405 | (6,307) | 4,098 | 519,594 | +0.8% | 28,297 | 109,164 | | EMEAA | 21,174 | (3,571) | 17,603 | 247,267 | +7.7% | 24,787 | 82,226 | | Greater China | 16,340 | (3,465) | 12,875 | 179,342 | +7.7% | 26,136 | 105,564 | - Net system size grew by **3.8%**, with gross growth of **5.3%**; the global pipeline expanded by **5.5%** and now represents **31% of the current system size**[19](index=19&type=chunk)[24](index=24&type=chunk) - Signings increased by **26% year-over-year** (excluding Iberostar), with conversions doubling from **96 hotels in 2022 to 191 in 2023**[24](index=24&type=chunk) [Strategic Priorities and Outlook](index=4&type=section&id=Strategic%20Priorities%20and%20Outlook) IHG's evolved strategy focuses on growth, brand strength, and commercial engine, supported by a clear framework for long-term value creation and disciplined capital allocation [Update on Strategic Priorities](index=4&type=section&id=Update%20on%20Strategic%20Priorities) IHG's evolved strategy focuses on growth, beloved brands, a leading commercial engine, and social responsibility, with key initiatives like the Garner brand launch - The company's evolved strategy is built on four pillars: **Relentless Focus on Growth**, **Brands Guests and Owners Love**, **Leading Commercial Engine**, and **Care for our People, Communities and Planet**[23](index=23&type=chunk)[25](index=25&type=chunk) - The new midscale conversion brand, **Garner**, was launched and became franchise-ready in the US, with plans for expansion in Mexico and Japan[28](index=28&type=chunk) - The IHG One Rewards loyalty program grew to **over 130 million members**, with record enrolments in 2023; loyalty members now account for **over 55% of global room nights** and spend approximately **20% more than non-members**[30](index=30&type=chunk) - The percentage of room revenue booked through IHG-managed channels has increased to **almost 80%**, up from **72% three years ago**, indicating the growing strength of the commercial engine[30](index=30&type=chunk) [Outlook and Growth Framework](index=7&type=section&id=Outlook%20and%20Growth%20Framework) IHG anticipates continued growth from resilient travel demand, targeting high single-digit fee revenue growth and 12-15% adjusted EPS CAGR medium to long term - The hotel industry has demonstrated resilience, with revenue outpacing global economic growth in **19 of the last 24 years**, and is supported by tailwinds such as the ongoing post-pandemic recovery and constrained new supply[35](index=35&type=chunk) Medium to Long-Term Growth Targets | Metric | Target (Annual Average) | | :--- | :--- | | Fee Revenue Growth | High-single digit % | | Fee Margin Expansion | 100-150 bps | | Adjusted Earnings to Adjusted Free Cash Flow Conversion | ~100% | | Adjusted EPS Compound Annual Growth | 12-15% | [Capital Allocation and Shareholder Returns](index=8&type=section&id=Capital%20Allocation%20and%20Shareholder%20Returns) IHG's capital allocation prioritizes growth investment, sustainable dividends, and shareholder returns, targeting a 2.5-3.0x leverage ratio and launching an $800 million share buyback - The company's capital allocation priorities are: **investing in the business**, **funding a sustainably growing dividend**, and **returning surplus capital**, while maintaining an investment-grade credit rating[40](index=40&type=chunk)[41](index=41&type=chunk) - A new **$800 million share buyback program** will commence immediately, following the completion of a **$750 million program in 2023**, which returned **$1.0 billion to shareholders** when combined with dividends[44](index=44&type=chunk)[45](index=45&type=chunk) - The Board proposed a **10% increase in the final dividend to 104.0 cents**, bringing the total 2023 dividend to **152.3 cents**, a **10% increase over 2022**[42](index=42&type=chunk)[71](index=71&type=chunk) [Financial Performance Review](index=9&type=section&id=Financial%20Performance%20Review) IHG's 2023 financial performance showed substantial growth in revenue and profit, strong cash generation, and a disciplined approach to net debt and liquidity [Summary of Financial Performance (Income Statement)](index=9&type=section&id=Summary%20of%20Financial%20Performance%20(Income%20Statement)) IHG's total revenue grew 18.8% to $4.62 billion, with operating profit surging 69.7% to $1.07 billion and adjusted EPS increasing 33.1% to 375.7 cents Income Statement Summary (in $ million, except per share data) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue ($ million) | 4,624 | 3,892 | +18.8% | | Operating Profit from Reportable Segments ($ million) | 1,019 | 828 | +23.1% | | **Operating Profit ($ million)** | **1,066** | **628** | **+69.7%** | | Profit Before Tax ($ million) | 1,010 | 540 | +87.0% | | **Profit for the Year ($ million)** | **750** | **376** | **+99.5%** | | Adjusted Earnings ($ million) | 635 | 511 | +24.3% | | Basic EPS (cents) | 443.8 | 207.2 | +114.2% | | Adjusted EPS (cents) | 375.7 | 282.3 | +33.1% | - Operating profit from reportable segments increased by **$191 million (23.1%) to $1,019 million**, driven by a **$187 million increase in fee business operating profit**[54](index=54&type=chunk) - Fee margin increased by **3.4 percentage points to 59.3%**, benefiting from trading improvement, particularly in EMEAA and Greater China[4](index=4&type=chunk)[56](index=56&type=chunk) [Cash Flow, Net Debt, and Balance Sheet](index=12&type=section&id=Cash%20Flow,%20Net%20Debt,%20and%20Balance%20Sheet) IHG generated strong cash flow, with adjusted free cash flow rising to $819 million, while net debt increased to $2.27 billion due to shareholder returns Cash Flow and Net Debt Summary (in $ million) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Adjusted EBITDA ($ million) | 1,086 | 896 | | Cash Flow from Operations ($ million) | 1,219 | 961 | | **Adjusted Free Cash Flow ($ million)** | **819** | **565** | | Net Cash Flow before other net debt movements ($ million) | (318) | (184) | | **Net Debt at end of year ($ million)** | **(2,272)** | **(1,851)** | - Adjusted free cash flow increased by **$254 million to $819 million**, driven by higher Adjusted EBITDA and an improved System Fund result[78](index=78&type=chunk) - Net debt increased by **$421 million**, reflecting **$1,035 million in payments for dividends and share buybacks**, partially offset by strong cash flow[80](index=80&type=chunk) - As of December 31, 2023, the Group had total liquidity of **$2,572 million**, comprising **$1,350 million of undrawn bank facilities** and **$1,222 million of cash and cash equivalents**[86](index=86&type=chunk) [Detailed Performance Analysis](index=15&type=section&id=Detailed%20Performance%20Analysis) IHG achieved robust system-wide revenue growth and strong RevPAR recovery across all regions, driven by strategic brand performance and pipeline expansion [Additional Revenue and System Analysis](index=15&type=section&id=Additional%20Revenue%20and%20System%20Analysis) IHG's total gross revenue grew 22.6% to $31.6 billion, with robust RevPAR growth and system expansion to 6,363 hotels and a pipeline of 297,000 rooms Total Gross Revenue in IHG's System (in $ billion) | Category | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | **By Ownership Type** | | | | | Franchised ($ billion) | 20.0 | 16.7 | +19.6% | | Managed ($ billion) | 11.1 | 8.7 | +28.4% | | Owned, leased and managed lease ($ billion) | 0.5 | 0.4 | +18.8% | | **Total ($ billion)** | **31.6** | **25.8** | **+22.6%** | Full Year 2023 RevPAR Growth (Constant Currency) | Region | vs 2022 | vs 2019 | | :--- | :--- | :--- | | **Group** | **+16.1%** | **+10.9%** | | Americas | +7.0% | +13.0% | | EMEAA | +23.7% | +15.4% | | Greater China | +71.7% | +0.7% | - The global system ended the year with **6,363 hotels (946,203 rooms)**, a net increase of **199 hotels and 34,576 rooms over 2022**[100](index=100&type=chunk) - The global pipeline grew to **2,016 hotels (296,954 rooms)**, with the Holiday Inn Brand Family and Luxury & Lifestyle brands showing strong development activity[101](index=101&type=chunk)[103](index=103&type=chunk) [Regional Performance Reviews](index=18&type=section&id=Regional%20Performance%20Reviews) All regions contributed to strong 2023 results, with Americas RevPAR up 7.0%, EMEAA up 23.7%, and Greater China surging 71.7% post-restrictions [Americas](index=18&type=section&id=Americas) Americas comparable RevPAR increased 7.0% year-over-year, driving a 7.1% rise in operating profit to $815 million, with net system growth of 0.8% Americas Financial Results (in $ million) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenue from Reportable Segment ($ million) | 1,105 | 1,005 | +10.0% | | Operating Profit from Reportable Segment ($ million) | 815 | 761 | +7.1% | - Comparable RevPAR increased by **7.0% versus 2022**, with a **4.6% rise in average daily rate (ADR)** and a **1.5 percentage point increase in occupancy**[108](index=108&type=chunk) - The region achieved net system growth of **+0.8%**, ending the year with **4,414 hotels (519.6 thousand rooms)**; the pipeline stands at **1,040 hotels (109.2 thousand rooms)**[115](index=115&type=chunk)[120](index=120&type=chunk)[122](index=122&type=chunk) [EMEAA](index=21&type=section&id=EMEAA) EMEAA comparable RevPAR rose 23.7% year-over-year, leading to a 41.4% increase in operating profit to $215 million and robust 7.7% system growth EMEAA Financial Results (in $ million) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenue from Reportable Segment ($ million) | 677 | 552 | +22.6% | | Operating Profit from Reportable Segment ($ million) | 215 | 152 | +41.4% | - Comparable RevPAR grew **23.7% versus 2022**, driven by a **7.9 percentage point increase in occupancy** and a **9.8% rise in ADR**[126](index=126&type=chunk) - Net system size grew by **7.7%**, reaching **1,237 hotels (247.3 thousand rooms)**; the pipeline contains **469 hotels (82.2 thousand rooms)**[131](index=131&type=chunk)[136](index=136&type=chunk)[138](index=138&type=chunk) [Greater China](index=23&type=section&id=Greater%20China) Greater China RevPAR surged 71.7% year-over-year, driving operating profit up 317.4% to $96 million, with strong 7.7% net system growth Greater China Financial Results (in $ million) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenue from Reportable Segment ($ million) | 161 | 87 | +85.1% | | Operating Profit from Reportable Segment ($ million) | 96 | 23 | +317.4% | - Comparable RevPAR increased by **71.7% versus 2022**, driven by a **19.1 percentage point surge in occupancy** and an **18.0% increase in ADR**[142](index=142&type=chunk) - Net system size grew by **7.7%**, ending the year with **712 hotels (179.3 thousand rooms)**; the pipeline is very strong, with **507 hotels (105.6 thousand rooms)**, representing **59% of the current system size**[146](index=146&type=chunk)[147](index=147&type=chunk)[149](index=149&type=chunk) [Central](index=26&type=section&id=Central) Central revenue increased 11.1% to $221 million, with gross costs up 6.8%, resulting in a narrowed operating loss of $107 million Central Results (in $ million) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenue ($ million) | 221 | 199 | +11.1% | | Gross Costs ($ million) | (328) | (307) | +6.8% | | **Operating Loss ($ million)** | **(107)** | **(108)** | **(0.9)%** | [Financial Statements and Notes](index=26&type=section&id=Financial%20Statements%20and%20Notes) This section provides comprehensive financial statements, key performance definitions, non-GAAP reconciliations, and detailed notes on the Group's financial position and performance [Key Performance and Non-GAAP Measures](index=26&type=section&id=Key%20Performance%20and%20Non-GAAP%20Measures) This section defines key performance indicators and non-GAAP financial measures, including RevPAR, Fee Margin, and Adjusted Free Cash Flow, for assessing IHG's performance - RevPAR (Revenue Per Available Room) is the primary metric used to track hotel performance, calculated on a comparable basis at constant currency[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - Fee Margin is a key profitability measure for the core fee-based business, calculated by dividing fee operating profit by fee revenue[170](index=170&type=chunk)[171](index=171&type=chunk) - Adjusted Free Cash Flow represents the cash available to invest in growth and fund shareholder returns, and is a key measure of the Group's cash-generative model[190](index=190&type=chunk)[191](index=191&type=chunk) [Non-GAAP Reconciliations](index=30&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP measures to IFRS figures, including underlying operating profit, fee margin, and adjusted earnings per share - Provides a reconciliation from reported operating profit of **$828 million in 2022 to underlying operating profit of $818 million** after adjusting for liquidated damages, disposals, and currency impacts[197](index=197&type=chunk) - Details the calculation of the Group's fee margin, showing an increase from **55.9% in 2022 to 59.3% in 2023**[208](index=208&type=chunk)[209](index=209&type=chunk)[213](index=213&type=chunk) - Reconciles profit available to equity holders (**$750 million**) to adjusted earnings (**$635 million**) by removing items such as the System Fund result, exceptional items, and foreign exchange gains[219](index=219&type=chunk) [Consolidated Financial Statements](index=37&type=section&id=Consolidated%20Financial%20Statements) Presents the Group's audited financial statements, showing a $750 million profit for the year, $4.81 billion in total assets, and $893 million in net cash from operating activities Key Financial Statement Figures (in $ million) | Statement | Line Item | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Income Statement | **Profit for the year ($ million)** | **750** | **376** | | Financial Position | Total Assets ($ million) | 4,813 | 4,216 | | Financial Position | **Net Liabilities ($ million)** | **(1,946)** | **(1,608)** | | Cash Flows | **Net cash from operating activities ($ million)** | **893** | **646** | [Notes to the Financial Statements](index=42&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides critical details supporting financial statements, covering basis of preparation, going concern, segmental performance, exceptional items, dividends, and net debt - The going concern assessment, conducted over an 18-month period, concluded that the Group has sufficient resources to continue operating, even under a **'Severe Downside Case' scenario**[246](index=246&type=chunk)[248](index=248&type=chunk)[254](index=254&type=chunk) - Operating exceptional items in 2023 included an **$18 million gain from the reversal of a liability** related to the InterContinental New York Barclay associate and **$10 million in business interruption insurance income**[260](index=260&type=chunk)[264](index=264&type=chunk)[266](index=266&type=chunk) - The Board has proposed a final dividend for 2023 of **104.0 cents per share**, amounting to **$171 million**, for approval at the upcoming AGM[272](index=272&type=chunk) - The Group's **$1.35 billion revolving credit facility was undrawn at year-end**, and the company was in compliance with all financial covenants, with a leverage ratio of **2.14x (covenant limit <4.0x)**[277](index=277&type=chunk)[278](index=278&type=chunk)[279](index=279&type=chunk)

InterContinental Hotels Group PLC (NYSE:IHG) Q2 2023 Earnings Conference Call August 8, 2023 4:30 AM ET Company Participants Stuart Ford - Vice President & Head of Investor Relations Elie Maalouf - Group Chief Executive Officer Michael Glover - Chief Financial Officer Conference Call Participants Jamie Rollo - Morgan Stanle Vicki Stern - Barclays Jaina Mistry - Jefferies Jarrod Castle - UBS Richard Clarke - Bernstein Jaafar Mestari - BNP Paribas Tim Barrett - Numis Leo Carrington - Citi Alex Brignall - Redb ...

Financial Performance - Revenue for the first half of 2023 reached $2,226 million, a 24% increase compared to $1,794 million in 2022[5] - Adjusted EPS rose by 50% to 182.7 cents, up from 121.7 cents in the previous year[5] - Total revenue increased by $432 million (24.1%) to $2,226 million, driven by improved trading conditions[61] - Revenue from reportable segments rose by $191 million (22.7%) to $1,031 million, with underlying revenue increasing by $220 million[61] - Operating profit improved by $223 million (61.8%) to $584 million, including a $37 million net change in operating exceptional items[62] - Adjusted earnings rose by $92 million (41.1%) to $316 million, with adjusted earnings per share increasing by 50% to 182.7¢[58] - Adjusted EBITDA for the six months ended June 30, 2023, was $513 million, an increase of $100 million compared to $413 million in 2022[82] - Underlying revenue for the reportable segments increased by 27.1% to $1,031 million in 2023, compared to $811 million in 2022[194] - Underlying fee revenue grew by 23.7% to $799 million in 2023, up from $646 million in 2022[197] - Underlying operating profit rose by 29.8% to $479 million in 2023, compared to $369 million in 2022[194] Room Growth and Development - The company opened 21,000 rooms across 108 hotels in H1 2023, a 40% increase from H1 2022, bringing the total global estate to 925,000 rooms[8] - A total of 34,200 rooms were signed across 239 hotels in H1 2023, an 11% increase from the previous year, with a global pipeline of 286,000 rooms[8] - The global system consists of 925,320 rooms across 6,227 hotels, with a gross growth of 6.3% year-over-year, and 21,000 rooms opened in H1 2023, which is a 40% increase compared to the prior year[33] - In H1 2023, IHG signed 34,167 rooms (239 hotels), representing an 11% increase year-over-year, with a total pipeline of 286,228 rooms (1,931 hotels) which is 31% of the current system size[33] - The total number of hotels increased by 63 to 6,227, with total rooms rising by 13,693 to 925,320[101] - The global pipeline includes 1,931 hotels, representing an increase of 72 hotels compared to the previous year, with a total of 286,228 rooms[103] Shareholder Returns and Dividends - The interim dividend per share was raised by 10% to 48.3 cents, with total dividend payments in 2023 expected to return close to $250 million to shareholders[5][23] - The current $750 million share buyback program is 47% complete, with $349.5 million spent repurchasing shares[23] - The Group declared an interim dividend of 48.3¢, representing a 10% increase from the 43.9¢ interim dividend paid in 2022[78] Market Trends and Travel Demand - Leisure travel revenue in the US was up 24% compared to 2019, while business travel was up 1%, and group travel was down 14%[32] - IHG's Q2 group RevPAR increased by 9.9% compared to 2019, with occupancy just 1.5 percentage points behind and ADR up 12%[32] - The expected recovery in business demand is ongoing, with STR forecasting RevPAR to be 13% ahead of 2019 levels in 2023 and 24% ahead by 2025[32] - EMEAA region RevPAR increased by 41.6% (CER) for the first half of 2023 compared to 2022, but decreased by 4.4% when considering actual exchange rates[98] - G. China RevPAR surged by 93.7% (CER) for the first half of 2023 compared to 2022, but showed a decline of 3.8% compared to 2019[98] Digital and Loyalty Programs - The number of IHG mobile app downloads, users, bookings, and revenue all increased by 40-50% compared to 2022 levels[52] - IHG's digital direct channels now contribute approximately 25% of global hotel revenue, with mobile channels accounting for over 50% of all digital bookings[52] - IHG's loyalty program, IHG One Rewards, has over 115 million members, with enrolments up 60% year-over-year and Reward Nights up over 40% compared to 2019 levels[46] Financial Health and Debt Management - Net debt increased by 32% to $2,270 million compared to $1,718 million in 2022, influenced by share buybacks and dividends[5] - The net debt at the end of June 2023 was $2,270 million, an increase of $419 million from December 2022[88] - The leverage ratio at June 30, 2023, was 2.30, with an interest cover ratio of 11.32, indicating strong financial health[91] - The Group's total liquidity as of June 30, 2023, was $1,970 million, down from $2,224 million at the end of 2022[89] Strategic Initiatives - The company is launching a new midscale conversion brand, targeting a market worth $14 billion in the US, with over 100 hotels expressing interest[10] - The new midscale conversion brand aims to reach over 500 hotels in the next 10 years and 1,000 hotels in the next 20 years, targeting a 25% lower cost per key for conversions compared to Holiday Inn Express[38][39] - The integration of Iberostar Beachfront Resorts as an Exclusive Partner brand has added 10 properties to IHG's system in H1 2023, with a total of 43 properties now integrated[45]

Financial Performance - Total revenue for the first half of 2023 was $2,226 million, a 24% increase compared to $1,794 million in 2022[5] - Adjusted EPS rose by 50% to 182.7¢ from 121.7¢ in the previous year[5] - Operating profit improved by $223 million (61.8%) from $361 million to $584 million, with a significant increase in the System Fund result from $3 million to $87 million[62] - Adjusted earnings increased by $92 million (41.1%) to $316 million, with adjusted earnings per share rising to 182.7¢[58] - Total gross revenue in IHG's system rose by 29.0% to $15.2 billion, with a 31.0% increase at constant currency, driven by improved trading conditions and hotel growth[96] - Underlying revenue for the reportable segments increased by 27.1% to $1,031 million in 2023, compared to $811 million in 2022[194] - Underlying operating profit rose by 29.8% to $479 million in 2023, up from $369 million in 2022[194] Revenue Growth - Total revenue increased by $432 million (24.1%) to $2,226 million, driven by improved trading conditions[61] - Revenue from reportable segments increased by $191 million (22.7%) to $1,031 million, driven by improved trading conditions[61] - System Fund revenues increased by $195 million (35%) to $749 million, reflecting strong travel demand and performance of the IHG One Rewards program[68] - Cost reimbursement revenue rose by $46 million (11.5%) to $446 million, indicating improved trading conditions in the US[70] Room and Hotel Expansion - The company opened 21,000 rooms across 108 hotels in H1 2023, a 40% increase from H1 2022, bringing the total global estate to 925,000 rooms[8] - The company signed 34,200 rooms across 239 hotels in H1 2023, an 11% increase compared to the previous year, with a global pipeline now at 286,000 rooms[8] - IHG's global system reached 925,320 rooms across 6,227 hotels as of June 30, 2023, with a gross growth of 6.3% year-over-year, including 21,000 rooms opened in H1 2023, which is a 40% increase from the prior year[33] - The total number of hotels increased by 63 to 6,227, with total rooms rising by 13,693 to 925,320[101] Market Performance - RevPAR increased by 24% year-on-year in H1 2023, with Q2 RevPAR up 17% compared to the same period last year[8] - Group comparable RevPAR improved by 24.1% in the first half of 2023 compared to the previous year, and by 8.7% compared to pre-pandemic levels in 2019[60] - In the US market, leisure travel revenue was up 24% compared to 2019, while business travel was up 1%, and group travel was down 14%[32] - EMEAA region showed a RevPAR increase of 41.6% (CER) for the first half of 2023 compared to 2022[98] - G. China experienced a significant RevPAR increase of 93.7% (CER) for the first half of 2023 compared to 2022[98] Shareholder Returns - The interim dividend per share was raised by 10% to 48.3¢, with total dividend payments expected to return close to $250 million to shareholders in 2023[5][23] - The current $750 million share buyback program is 47% complete, with $349.5 million spent repurchasing shares[23] Debt and Liquidity - Net debt increased by 32% to $2,270 million from $1,718 million in 2022, influenced by share buybacks and dividends[5] - The Group's total liquidity as of June 30, 2023, was $1,970 million, down from $2,224 million at the end of 2022[89] - The Group's leverage ratio at June 30, 2023, was 2.30, indicating compliance with financial covenants[91] Digital and Loyalty Programs - IHG's loyalty program, IHG One Rewards, has over 115 million members, with enrolments up 60% year-over-year in H1 2023 and Reward Nights up over 40% compared to 2019[46] - IHG's digital-first approach has driven a higher percentage of direct bookings, enhancing revenue management and guest experience[48] - The number of IHG mobile app downloads, users, bookings, and revenue increased by 40-50% compared to 2022 levels[52] - IHG's digital direct channels now contribute approximately 25% of hotel revenue globally, with mobile channels accounting for over 50% of all digital bookings[52] Strategic Initiatives - A new midscale conversion brand is set to launch, targeting a market worth $14 billion in the US, with over 100 hotels already expressing interest[10] - The new midscale conversion brand aims to capture a significant share of the midscale market, targeting over 500 hotels in the next 10 years and 1,000 hotels in 20 years[38] - The integration of Iberostar Beachfront Resorts as an Exclusive Partner brand added 10 properties in H1 2023, bringing the total to 43, with further integration expected[45] - Holiday Inn Express opened 38 hotels and signed 77 more, reaching over 3,100 hotels open and a pipeline of 640, indicating a future system growth of 24%[43]

InterContinental Hotels Group PLC (NYSE:IHG) Q1 2023 Earnings Conference Call May 5, 2023 4:00 AM ET Company Participants Stuart Ford - Vice President and Head of Investor Relations Keith Barr - Group Chief Executive Officer Michael Glover - Chief Financial Officer Conference Call Participants Vicki Stern - Barclays Jamie Rollo - Morgan Stanley Richard Clarke - Bernstein Jaina Mistry - Jefferies Leo Carrington - Citi Tim Barrett - Numis Alex Brignall - Redburn Operator Ladies and gentlemen, hello, and welco ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT O ...

Financial Data and Key Metrics Changes - Revenue for the year reached $1.8 billion, an increase of 33% compared to 2021, while operating profit grew by 55% to $828 million [15][9] - Adjusted EPS nearly doubled to $282.3, with an effective tax rate of 27%, down 4 percentage points from the previous year [16][9] - Adjusted free cash flow was $565 million, demonstrating the company's ability to convert over 100% of adjusted earnings into cash [49] Business Line Data and Key Metrics Changes - Underlying revenue from the fee business increased by 28%, with operating profit rising by 43% [16] - The company opened 269 hotels and signed 467, leading to a 4% year-on-year increase in the pipeline, which now represents 31% of the current system size [8] - The Americas region saw RevPAR increase by 29% compared to 2021, while the EMEAA region's RevPAR was up 93% year-on-year [21][46] Market Data and Key Metrics Changes - The Americas region surpassed 2019 levels in RevPAR by 9% in Q4, while the EMEAA region also achieved a 9% increase in the same quarter [7][46] - Greater China faced challenges due to COVID restrictions, but recent data showed a strong recovery with 300 million trips made during the Chinese New Year, nearing 90% of 2019 levels [7] - The underlying fee revenue in Greater China was down 18% against the prior year, reflecting a decline of 40% compared to 2019 [25] Company Strategy and Development Direction - The company aims to leverage its asset-light, fee-based business model to drive growth and shareholder value, with a focus on expanding its brand portfolio and enhancing technology and loyalty programs [30][31] - The addition of Iberostar Beachfront Resorts is expected to significantly enhance the company's offerings in the all-inclusive segment and drive high-quality fee streams [35][60] - The company is committed to balancing growth investments with operational efficiency, as evidenced by a 6.6 percentage point improvement in group fee margin [47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of international, corporate, and group travel, particularly with the reopening of China as a significant tailwind [51][52] - The company anticipates that macroeconomic uncertainties may impact corporate travel budgets and leisure spending, but believes current industry tailwinds outweigh these headwinds [28][29] - The long-term growth drivers for the industry remain strong, with expectations for U.S. industry RevPAR to be 12% ahead of 2019 levels in 2023 [54] Other Important Information - The company announced a final dividend increase of 10% and a new share buyback program of $750 million to return capital to shareholders [9][50] - Capital expenditure for the year was $161 million, with a focus on long-term health and stability of core business infrastructure [11] - The company has invested over $1 billion annually in its enterprise platform, enhancing its technology and loyalty programs [31][56] Q&A Session Summary Question: What is causing the revenue drop despite RevPAR being up? - Management indicated that the revenue shortfall is due to various factors, including the construction side and pipeline growth being slower as projects ramp up post-restrictions [45] Question: Any slowdown in U.S. RevPAR and thoughts on the outlook? - Management acknowledged some recent softness in U.S. RevPAR but remains optimistic about the overall outlook, citing strong demand and recovery trends [72][73] Question: Is the company still targeting industry-leading net unit growth? - Management confirmed the aspiration for industry-leading growth, aiming for 4% to 5% net unit growth, contingent on market conditions, particularly in China [87][89]

SECURITIES AND EXCHANGE COMMISSION Washington DC 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 AND 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For 21 February 2023 InterContinental Hotels Group PLC (Registrant's name) Broadwater Park, Denham, Buckinghamshire, UB9 5HJ, United Kingdom (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F Form 40-F Indicate by check mark ...

InterContinental Hotels Group PLC (NYSE:IHG) Q3 2022 Earnings Conference Call October 21, 2022 4:00 AM ET Company Participants Stuart Ford - VP and Head of IR Paul Edgecliffe-Johnson - CFO Conference Call Participants Jamie Rollo - Morgan Stanley Vicki Stern - Barclays Jarrod Castle - UBS Leo Carrington - Citi Alex Brignall - Redburn Presentation Operator Good morning, and welcome to today's Third Quarter Trading Update to 30th September 2022. My name is Bailey, and I'll be your moderator for today's call. ...