Annual Report and Form 20-F 2023
From the Chair
This has been another important year of progress for IHG Hotels & Resorts, characterised not only by excellent financial performance underpinned by strong guest demand and further growth with our owners, but also a smooth evolution of leadership and strategy that positions the business for an exciting next chapter.
From the CEO
Testament to the strength and scale of our brands and wider enterprise platform, I am proud to say we delivered an excellent financial performance alongside strong system size and pipeline growth. IHG has enormous growth potential and I’m inspired by the passion of our teams and the power of their collaboration to drive returns.
Demand continued to grow during 2023 as people’s appetite for travel shone through. Significant investments in our enterprise platform, including our brands, loyalty, digital offer and sustainability initiatives, saw us enrich the guest experience, grow our estate and drive returns.
2023 in reviewFinancial Performance
Global RevPAR
Net SYSTEM SIZE GROWTHa
Signings (Rooms)
Total gross revenue in IHG’s Systemb
Revenue from reportable segmentsc
Operating profit from reportable segmentsc
Total revenue
Basic EPS
Operating profitd
Adjusted EPSc
FINAL DIVIDEND
PER SHARE
152.3¢
Share buyback completede
$750M
a 2022 number is adjusted for removals related to ceasing operations in Russia in 2022; unadjusted net system size growth of 3.6%.
b Definitions for key performance measures can be found in the use of key performance measures and non-GAAP measures section, which can be found on pages 84 to 88 of the Annual Report (see below).
c Use of Non-GAAP measures: In addition to performance measures directly observable in the Group Financial Statements (IFRS measures), additional financial measures (described as Non-GAAP) are presented that are used internally by management as key measures to assess performance. Non-GAAP measures are either not defined under IFRS or are adjusted IFRS figures. Further explanation in relation to these measures can be found on pages 84 to 88 of the Annual Report (see below), and reconciliations to IFRS figures, where they have been adjusted, are on pages 226 to 231 of the Annual Report (see below).
d 2023 operating profit shown after $19m System Fund and reimbursable reported profit and $28m net exceptional gain. See page 154 of the Annual Report (see below) for details.
e 2023 share buyback completed in December 2023.
Regional Growth (Rooms)
Americas
EMEAA
Greater China
MICHAEL GLOVER
Chief Financial Officer
From the CFO
Robust trading drove RevPAR and profitability to exceed pre-pandemic highs in 2023, demonstrating the strength of our business model.
Chief Financial Officer’s Review and Performance
Industry Overview
We operate in an industry with high growth potential, underpinned by strong long-term fundamentals. The global hotel industry continued to strengthen in 2023, benefitting from further consumer appetite for leisure stays and a robust return of business demand, which together drove record RevPAR levels.
Our Business Model
We are a global hospitality company with 19 hotel brands and one of the industry’s largest loyalty programmes, with over 6,300 open hotels and a further 2,000 hotels in our development pipeline. Operating in more than 100 countries, we predominantly franchise our brands and manage hotels on behalf of third-party hotel owners. As an asset-light business, we focus on growing our fee revenues and fee margins, with limited requirements for capital.
Open Rooms
Pipeline Rooms
* Includes Iberostar Beachfront Resorts, which joined IHG's system and pipeline as part of a long-term commercial agreement
Our Brands
- Lifestyle & Luxury
- Premium
- Essentials
- Suites
- Exclusive Partners
Our Strategy
In 2023, to further strengthen our ability to drive future growth, we evolved key elements of our strategy, including our ambition, strategic pillars and growth behaviours.
These changes build on the investments we have made to transform our business in recent years, where we have expanded our portfolio from 11 to 19 brands and significantly strengthened our enterprise. This includes a transformed IHG One Rewards loyalty programme, refreshed masterbrand, new partnerships and an enhanced web and mobile offer, as well as embarking on our Journey to Tomorrow to invest in our people, deliver more sustainable hotels and bring positive change in our communities.
Relentless focus on Growth
Brands guests and owners love
Leading commercial engine
CARE FOR OUR PEOPLE, COMMUNITIES AND PLANET
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