Intercontinental Hotels Group Plc · LSE:IHG
Intercontinental Hotels — Investor Day (November 2010)
16 slides from Intercontinental Hotels's investor day presentation, Nov 23, 2010
Slide 1: India Prospects
India Prospects Richard Solomons Crowne Plaza Bengaluru Electronics City
Slide 2: India is poised for rapid growth
India is poised for rapid growth Sustained strong GDP growth Large and growing population India GDP growth actual and forecast 148m households to join middle class by 2020 Infrastructure development Total 228m 273m 322m • Air travel per capita one of lowest in Asia house holds: 1% 3% 7% 16% Improvin
Slide 3: Fuelling growth in an undersupplied hotel market
Fuelling growth in an undersupplied hotel market • Strong forecast growth in demand – Travel and tourism: +8.2% per annum to 2019 – Business travel: +7.6% per annum to 2019 • Undersupplied market – c.100,000 branded rooms – one of lowest per capita room rates globally • Rooms set to double – HVS for
Slide 4: IHG is building on a leadership position
IHG is building on a leadership position System: 2,191 rooms (12 hotels) - In final stages of eliminating sub-standard properties - >1,200 rooms (7 hotels) removed Current pipeline: 10,223 rooms (45 hotels) - Second largest international branded pipeline* - 50% under construction 48 years experience
Slide 5: Recent openings driving up quality – Holiday Inn Mumbai International Airport
Recent openings driving up quality – Holiday Inn Mumbai International Airport 5
Slide 6: Recent openings driving up quality – Crowne Plaza New Delhi Okhla
Recent openings driving up quality – Crowne Plaza New Delhi Okhla 6
Slide 7: Future opportunity - up to 150 hotels by 2020
Future opportunity - up to 150 hotels by 2020 Future development - Focus on major cities - Growing opportunity for portfolio deals =1,295 rooms - High demand for midscale Holiday Inn - Holiday Inn Express roll-out accelerating growth - Reducing time and cost to market for all brands =2,798 rooms Res
Slide 8: Pipeline hotels driving quality – Holiday Inn Pune Hinjewadi
Pipeline hotels driving quality – Holiday Inn Pune Hinjewadi 8
Slide 9: Pipeline hotels driving quality – Crowne Plaza New Delhi Rohini
Pipeline hotels driving quality – Crowne Plaza New Delhi Rohini 9
Slide 10: Summary
Summary Richard Solomons InterContinental Resort Jiuzhai Paradise, China
Slide 11: IHG's growth strategy to create sustainable value
IHG’s growth strategy to create sustainable value Making best use of our scale to build and grow preferred hotel brands for guests and owners in high value markets “Where we play” “How we win” Model Powerful and distinct brands Segments Best demand delivery systems Markets Aligned and engaged organi
Slide 12: What drives our leading share of the global pipeline
What drives our leading share of the global pipeline • Long heritage and first mover advantage • Powerful and distinct brands • Industry leading revenue delivery • World’s largest loyalty programme, PCR • Commitment to strong owner relationships • Rigorous site selection and development process • Ta
Slide 13: Using scale to drive growth – our advantages when we enter a new market
Using scale to drive growth – our advantages when we enter a new market Existing processes and systems Transferable skills Globally Established risk, Industry leading Rigorous approach safety & recognised revenue delivery to market planning governance brands expertise Global sales Loyalty Leverage G
Slide 14: Using our capital to drive growth
Using our capital to drive growth • Invest capital to support brand development – inducements and sliver equity – brand defining hotels – secure multi-site deals using JV positions – buy or build brands • Funded through recycling existing capital • Reduce capital intensity over time 14
Slide 15: How will we drive our share in the future
How will we drive our share in the future • Capitalise on brand strength • Focus on the highest opportunity, fastest growth markets • Disciplined approach to development to drive profitable growth • Use efficiencies in scale markets to fuel growth elsewhere • Secure representation in emerging market
Slide 16: Final Q&A
Final Q&A InterContinental Resort Jiuzhai Paradise, China
InterContinental Hotels Group — Investor Day (November 2010) on 6ix