Intercontinental Hotels Group Plc · LSE:IHG

Intercontinental Hotels — FY2007 Earnings Presentation

21 slides from Intercontinental Hotels's earnings presentation, February 2008

  1. Slide 1: Supplementary Information

    Supplementary Information 31 December 2007 1

  2. Slide 2: Index

    Index RevPAR – 3 Months to 31 December 2007 RevPAR – 12 Months to 31 December 2007 2007 Current Trading – RevPAR, Occupancy & ADR Hotel & Room Count – at 31 December 2007 Pipeline – at 31 December 2007 Room Count & Pipeline Growth Drivers Continuing Revenues & Operating Profit by Quarter Cash Flow –

  3. Slide 3: Explanatory Notes

    Explanatory Notes We have disclosed owned, leased, managed and franchised RevPAR, occupancy and ADR on a comparable basis. Owned and leased comparable RevPAR, occupancy and ADR reflects performance this year compared to the same period last year for owned and leased hotels that have traded in both y

  4. Slide 4: Comparable RevPAR – 3 Months to 31 December 2007 Owned & Leased and Managed

    Comparable RevPAR – 3 Months to 31 December 2007 Owned & Leased and Managed Constant US$ Owned & Leased Comparable M anaged Comparable Hotels Occ % ADR RevPAR Hotels Occ % ADR RevPAR 2007 Pts 2007 Grow th 2007 Grow th 2007 Pts 2007 Grow th 2007 Grow th InterContinental 3 85.2% 5.4% 299.51 6.3% 255.2

  5. Slide 5: Comparable RevPAR – 3 Months to 31 December 2007 Franchised and Total

    Comparable RevPAR – 3 Months to 31 December 2007 Franchised and Total Constant US$ Franchised Comparable T otal Comparable Hotels Occ % ADR RevPAR Occ % ADR RevPAR 2007 Pts 2007 Grow th 2007 Grow th 2007 Pts 2007 Grow th 2007 Grow th InterContinental 16 65.2% 3.4% 125.94 8.3% 82.15 14.4% 69.6% 2.2%

  6. Slide 6: Comparable RevPAR – 12 Months to 31 December 2007 Owned & Leased and Managed

    Comparable RevPAR – 12 Months to 31 December 2007 Owned & Leased and Managed Constant US$ Owned & Leased Comparable M anaged Comparable Hotels Occ % ADR RevPAR Hotels Occ % ADR RevPAR 2007 Pts 2007 Grow th 2007 Grow th 2007 Pts 2007 Grow th 2007 Grow th InterContinental 3 83.6% 1.9% 260.63 8.1% 217.

  7. Slide 7: Comparable RevPAR – 12 Months to 31 December 2007 Franchised and Total

    Comparable RevPAR – 12 Months to 31 December 2007 Franchised and Total Constant US$ Franchised Comparable T otal Comparable Hotels Occ % ADR RevPAR Occ % ADR RevPAR 2007 Pts 2007 Grow th 2007 Grow th 2007 Pts 2007 Grow th 2007 Grow th InterContinental 16 64.7% (0.2%) 126.53 8.6% 81.87 8.2% 70.0% 1.6

  8. Slide 8: 2007 Current Trading – Comparable RevPAR Growth

    2007 Current Trading – Comparable RevPAR Growth Constant US$ Qtr1 Qtr2 Qtr3 Oct Nov Dec Qtr4 Full Yr US - InterContinental 13.9% 8.1% 8.9% 12.7% 10.0% 8.2% 10.6% 10.3% US - Crowne Plaza 6.6% 6.9% 7.5% 10.8% 6.6% 4.4% 7.7% 7.2% US - Holiday Inn 4.9% 5.6% 4.6% 7.4% 3.3% 1.1% 4.3% 4.8% US - Express 8.4

  9. Slide 9: 2007 Current Trading – Comparable Occupancy Growth (%age pts)

    2007 Current Trading – Comparable Occupancy Growth (%age pts) %age Points Qtr1 Qtr2 Qtr3 Oct Nov Dec Qtr4 Full Yr US - InterContinental 3.6% 0.1% 1.6% 0.8% 2.1% 1.9% 1.6% 1.7% US - Crowne Plaza 0.6% 0.7% 1.2% 2.1% (0.6%) (0.2%) 0.5% 0.7% US - Holiday Inn (0.3%) 0.2% (0.5%) 0.5% (1.4%) (1.7%) (0.9%)

  10. Slide 10: 2007 Current Trading – Comparable ADR Growth

    2007 Current Trading – Comparable ADR Growth Constant US$ Qtr1 Qtr2 Qtr3 Oct Nov Dec Qtr4 Full Yr US - InterContinental 8.5% 7.9% 6.7% 11.6% 7.0% 4.9% 8.1% 7.8% US - Crowne Plaza 5.6% 5.8% 5.7% 7.6% 7.6% 4.8% 6.9% 6.0% US - Holiday Inn 5.3% 5.3% 5.4% 6.7% 5.9% 4.8% 6.0% 5.5% US - Express 8.0% 8.0% 7

  11. Slide 11: Hotel & Room Count at 31 December 2007

    Hotel & Room Count at 31 December 2007 Ow ned & Le ased Managed Fra nchised Tota l Hote ls Room s Hotels Room s Hotels Rooms Hotels Rooms InterContinental 4 1,914 23 8,313 23 6,397 50 16,624 Crowne Plaza - - 19 6,620 153 41,273 172 47,893 Holiday Inn 5 1,882 29 9,654 918 166,463 952 177,999 Express

  12. Slide 12: Pipeline at 31 December 2007

    Pipeline at 31 December 2007 Ma na ge d Fra nchise d Tota l Hote ls Room s Hote ls Room s Hote ls Room s InterContinental 6 2,959 2 763 8 3,722 Crowne Plaza 1 200 36 8,836 37 9,036 Holiday Inn 4 635 261 32,394 265 33,029 Express 1 120 613 54,159 614 54,279 Staybridge 5 579 142 15,342 147 15,921 Cand

  13. Slide 13: Americas Future Growth Drivers

    Americas Future Growth Drivers Crowne Holiday Inn Staybridge Candlewood Hotel Total InterContinental Holiday Inn Plaza Express Suites Suites Indigo Room Count 1 January 2007 394,909 16,525 42,604 186,067 123,718 10,953 14,149 893 Openings 31,744 686 4,610 6,657 13,908 2,515 2,760 608 Brand Conversio

  14. Slide 14: EMEA Future Growth Drivers

    EMEA Future Growth Drivers Crowne Express by Staybridge Total InterContinental Holiday Inn Other Plaza Holiday Inn Suites Room Count 1 January 2007 106,600 21,423 16,440 50,628 18,109 - - Openings 7,956 255 1,637 4,217 1,847 - - Brand Conversions 0 (364) 464 (100) - - - Exits (4,996) (1,302) (1,215)

  15. Slide 15: Asia Pacific Future Growth Drivers

    Asia Pacific Future Growth Drivers Express by Total InterContinental Crowne Plaza Holiday Inn Other Holiday Inn Room Count 1 January 2007 54,737 11,651 16,588 23,775 1,755 968 Openings 13,146 2,489 1,740 2,655 1,750 4,512 Brand Conversions 0 - - - (900) 900 Exits (1,208) (14) (377) (572) (5) (240) 3

  16. Slide 16: Continuing Revenue & Operating Profit

    Continuing Revenue & Operating Profit Continuing operations are classified under IFRS at 31 December 2007. This classification can change over time. Continuing operations excludes all owned and leased hotels assets sold or on the market at 31 December 2007. 16

  17. Slide 17: 2007 Continuing Revenue & Operating Profit

    2007 Continuing Revenue & Operating Profit £m Revenue Operating Profit Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Owned & Leased 29 33 31 35 128 2 6 5 7 20 Managed 19 21 19 19 78 6 7 4 4 21 Franchised 54 68 66 56 244 48 58 59 47 212 102 122 116 110 450 56 71 68 58 253 Regional Overhead - - - - - (8

  18. Slide 18: 2006 Continuing Revenue & Operating Profit

    2006 Continuing Revenue & Operating Profit £m Revenue Operating Profit Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Owned & Leased 25 27 24 28 104 2 5 3 2 12 Managed 20 20 18 19 77 6 9 7 5 27 Franchised 55 63 66 57 241 49 54 57 48 208 100 110 108 104 422 57 68 67 55 247 Regional Overhead - - - - - (8

  19. Slide 19: 2005 Continuing Revenue & Operating Profit

    2005 Continuing Revenue & Operating Profit £m Revenue Operating Profit Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Owned & Leased 22 25 24 27 98 3 4 3 4 14 Managed 13 18 16 18 65 4 6 4 6 20 Franchised 45 54 60 54 213 39 47 55 45 186 80 97 100 99 376 46 57 62 55 220 Regional Overhead - - - - - (8) (7

  20. Slide 20: Cash Flow – 3 Months to 31 December 2007

    Cash Flow – 3 Months to 31 December 2007 £m 3 Months to 3 Months to 31 December 2007 31 December 2006 Operating Profit* 61 42 Depreciation & Amortisation 14 17 Working Capital 19 7 Pension Obligations (1) (1) Other 9 5 Cash Flow from Operations 102 70 Net Debt at 31 December 825 134 *Excludes except

  21. Slide 21: Ordinary Shares at 31 December 2007

    Ordinary Shares at 31 December 2007 Number of Shares At 31 December 2007 At 31 December 2006 Opening Balance at 1 January 356.1 432.9 Share Buyback (7.7) (28.4) Share Consolidation (57.3) (52.9) Option Exercise 3.5 4.5 Closing Balance at 31 December 294.6 356.1 Basic Weighted Average Shares 320.1 38

InterContinental Hotels Group — FY2007 Earnings Presentation on 6ix