IHG(US:IHG)2024-02-28 16:00Financial 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].