Blueprint
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 04
May 2018
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 whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes
No
If
"Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): Not
applicable
EXHIBIT
INDEX
99.1
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1st
Quarter Results dated 04 May 2018
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Exhibit
No: 99.1
4 May
2018
InterContinental Hotels Group PLC
2018
First Quarter Trading Update
Highlights
● Global Q1 comparable
RevPAR[1]
up
3.5%
● 4.3% YOY net system size growth
to 800k rooms, 8k rooms opened (up 16% YOY)
● 20k rooms signed, strongest Q1
pace for 11 years, led by avid hotels
● Good progress against new
strategic growth initiatives, particularly in expanding our luxury
footprint
● Efficiency programme underway;
on track to deliver $125m p.a. in savings to reinvest to drive
growth
Keith Barr, Chief Executive of InterContinental Hotels Group PLC,
said:
"In the
first quarter we delivered RevPAR growth of 3.5%, net system size
growth of 4.3% and our best signings pace for eleven years.
This strong performance reflects our focus on driving industry
leading net rooms growth over the medium term, underpinned by our
new strategic initiatives.
There
continues to be strong momentum across the business. We have made
excellent progress against our initiative to expand our footprint
in the $60 billion luxury segment, announcing the acquisition of a
51% stake in Regent Hotels & Resorts in March. In
addition, this week we entered into an agreement to rebrand and
operate a high-quality portfolio of 13 hotels in the UK. This will
establish IHG as the leading luxury operator in this market, launch
our luxury boutique brand Kimpton Hotels & Restaurants in the
UK, and establish a position for our new upscale brand, principally
focused on conversion opportunities. Signings for our new
mainstream brand, avid hotels, continue to exceed our expectations,
and now total more than 100 hotels, one every other day since
launch.
Our
roll out of IHG Concerto, incorporating our new Guest Reservation
System, continues at pace, with more than 1,000 hotels now using
the platform, and we are on-track to complete roll-out by the end
of 2018 / early 2019.
The
fundamentals for our industry remain strong, we have the right
strategy, and we are confident in the outlook for the year
ahead."
First Quarter RevPAR performance
Group
RevPAR
was up 3.5%, with rate up 1.9% and occupancy up 1.0%pt. The
earlier timing of the Easter weekend, which in 2018 was split
evenly between March and April, had a negative impact on RevPAR
growth in the Americas and Europe.
Americas
RevPAR
was up 2.9%, with the US up 2.2%. Trading in the US was
impacted by a number of both positive and negative factors; we
estimate that underlying growth was approximately 2.5%.
Elsewhere in the region, Canada was up 7%, benefitting from a
robust convention calendar, whilst Latin America and the Caribbean
were up 16%, aided by reduced industry supply following hurricane
activity in late 2017. In Mexico RevPAR was flat, adversely
impacted by the strengthening of the Mexican peso against the US
dollar.
Europe, Middle East, Asia & Africa
RevPAR
was up 2.9% in Q1. Continental Europe RevPAR was up 6% with
continued recovery in terror impacted markets (France and Belgium
both up high single digits, Turkey up double digits) offset partly
by an adverse trade fair calendar in Germany (down 2%). In
the UK, RevPAR was down 1% (London down 3%, provinces up 1%) due to
strong prior year comparables and the shift in the timing of
Easter. Elsewhere, Middle East RevPAR was down 6% due to high
supply growth, Australia was up
4% with strong corporate demand in key cities, whilst Japan, up 3%,
benefitted from strong transient demand related to the Chinese New
Year.
In February, IHG received liquidated damages totalling $15m
relating to the termination of a portfolio of 13 open hotels (2k
rooms) and 6 pipeline hotels (1k rooms) in Germany, which will
remain in IHG's system until 2020. Under IFRS 15, the $15m will be
recognised over the period until they exit (H1 2018: $2.8m, FY
2018: $6.7m, FY 2019: $7.7m, H1 2020: $1.0m).
Greater China
RevPAR
was up 11.0% in Q1, with 10% growth in mainland China, which
benefitted from an extended build up to Chinese New Year in
February. Double digit RevPAR growth in tier 1 and tier 2
cities was driven by strong transient, corporate and meetings
demand. Tier 3 and tier 4 cities continued to see mid-single
digit growth, aided by the ongoing ramp-up of our hotels. In
Hong Kong, RevPAR was up 15%, with mainland China inbound demand
boosted by the strengthening of the Chinese renminbi against the
Hong Kong dollar. Macau RevPAR was up 25%, reflecting
the ongoing improvement in market conditions.
The
acceleration in Q1 RevPAR and rooms growth in Greater China to 11%
and 9% respectively reflects the ongoing benefit of our strong
strategic focus on this important market.
Strategic progress
Good
progress has been made against our new strategic priorities to
drive industry leading net rooms growth over the medium
term.
Build and leverage scale
●
Net system size up 4.3% year on year to 800k rooms
(5,367 hotels).
●
8k rooms (53 hotels) opened in the quarter, up 16% on
the prior year and including our highest ever Q1 openings in
Greater China. 6k rooms (34 hotels) were removed from the
system.
●
20k rooms (146 hotels) signed, our highest Q1 rooms
signings since 2007. Includes our strongest Q1 in the
Americas since 2008, and our best ever Q1 in Greater
China.
●
252k pipeline rooms; ~45% under
construction.
Enhance revenue delivery
●
Roll out of GRS and IHG Concerto continues at
pace, with over 1,000 hotels now migrated to the platform. On
track to complete the roll-out by the end of 2018 / early
2019.
Evolve owner proposition
●
Continued momentum with Holiday Inn Express
Franchise Plus in Greater China, with 11 properties (2k rooms)
signed in Q1. There are now 8 open and 77 pipeline Holiday
Inn Express Franchise Plus properties in the region.
Optimise our preferred portfolio of brands for owners and
guest
●
Luxury - expanding
our portfolio:
-
Acquisition of Regent Hotels & Resorts; expected to close in
mid 2018; 6 open hotels (2.0k rooms) and 3 pipeline hotels (0.9k
rooms); expected to grow to more than 10,000 rooms (40 hotels) over
the long term.
-
Agreement to rebrand a UK portfolio of hotels; establishing IHG as
the leading UK luxury operator; launching Kimpton Hotels &
Restaurants; expanding InterContinental's presence.
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Upscale
- growing our offer:
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UK portfolio deal will also strengthen IHG's upscale presence and
will establish a position for its new upscale brand, principally
focused on conversion opportunities.
●
Mainstream -
continued strong signings pace for our newest
brand:
-
More than 100 avid hotels now signed, including 51 hotels (4.8k
rooms) signed in Q1 2018, two of which were in Canada. This equates
to one new deal signed every other day since launch in September
2017.
Efficiency programme
●
Confident in our
ability to deliver $125m of annual savings by 2020 for reinvestment
to drive growth, with our efficiency programme well
underway.
●
Continue to expect $200m exceptional cash costs to achieve the
savings; $31m in 2017 with majority of the remainder in
2018.
Financial
position and capital allocation
The
financial position of the group remains robust, with an on-going
commitment to an efficient balance sheet and an investment grade
credit rating.
Foreign exchange
The
weakening of the US dollar against many major currencies globally
increased group RevPAR to 6.5% in the quarter, when reported at
actual exchange rates. A breakdown of constant vs. actual
currency RevPAR by region is set out in Appendix 2.
IFRS
15
On 17th
April IHG issued new financial statements for 2016 and 2017
reflecting several reporting changes highlighted at our 2017 full
year results. These include the adoption of IFRS 15 Revenue
from Contracts with Customers, the Group's new regional structure,
and the reporting of Fee Business results. Further detail of
these changes can be found at https://www.ihgplc.com/investors/results-and-presentations.
Appendix 1: First quarter RevPAR movement summary
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Q1 2018
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RevPAR
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Rate
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Occ.
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Group
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3.5%
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1.9%
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1.0%pts
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Americas
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2.9%
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2.0%
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0.6%pts
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EMEAA
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2.9%
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1.7%
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0.8%pts
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G.
China
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11.0%
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3.9%
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3.9%pts
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Appendix 2: RevPAR at constant exchange rates (CER) vs. actual
exchange rates (AER)
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Q1 2018
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CER
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AER
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Difference
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Group
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3.5%
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6.5%
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(3.0)%pts
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Americas
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2.9%
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3.2%
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(0.3)%pts
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EMEAA
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2.9%
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11.3%
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(8.4)%pts
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G.
China
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11.0%
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18.3%
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(7.3)%pts
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Appendix 3: Q1 system & pipeline summary (rooms)
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System
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Pipeline
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Openings
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Removals
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Net
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Total
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YoY%
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Signings
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Total
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Group
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7,920
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(6,072)
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1,848
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799,923
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4.3%
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19,727
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252,451
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Americas
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3,249
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(3,519)
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(270)
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497,190
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2.3%
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9,928
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113,739
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EMEAA
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1,639
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(1,825)
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(186)
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198,890
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6.9%
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2,103
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63,651
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G.
China
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3,032
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(728)
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2,304
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103,843
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9.4%
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7,696
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75,061
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Appendix 4: Definitions
AER: Actual exchange rates used for each respective
period.
CER: Constant exchange
rates.
RevPAR: Revenue per available room.
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For further information, please contact:
Investor
Relations (Catherine Dolton; Tom Yates; Matthew Kay):
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+44
(0)1895 512176
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+44
(0)7527 419431
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Media
Relations (Yasmin Diamond; Zoe Bird; Mark Debenham):
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+44
(0)1895 512097
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+44
(0)7527 424046
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Conference call for Analysts and Shareholders:
A
conference call with Paul Edgecliffe-Johnson (Chief Financial
Officer) will commence at 9.00am London time on 4 May and can be
accessed on https://www.ihgplc.com/investors/2018-first-quarter-trading-update.
There will be an opportunity to ask questions.
International
dial-in
UK
dial-in
US
dial-in
Passcode
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+44 203
936 2999
+44 (0)
203 936 2999
+1 845
213 3398
09 64
60
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A
replay of the 9.00am conference call will be available for 7 days
from 11:30am London time - details are below:
International
dial-in
UK
dial-in
US
dial-in
Replay
pin
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+44 203
936 3001
+44 (0)
203 936 3001
+1 845
709 8569
70 95
40
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US conference call and Q&A:
There will also be a conference call, primarily for US investors
and analysts, at 9.00am New York (2pm London) Time on 4 May with
Paul Edgecliffe-Johnson (Chief Financial Officer). There will be an
opportunity to ask questions.
International
dial-in
US
dial-in
UK
dial-in
Passcode
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+44 203
936 2999
+ 1 845
213 3398
+44 (0)
203 936 2999
29 22
26
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A
replay of the 2.00pm conference call will be available for 7 days
from 5pm London time - details are below:
International
dial-in
US
dial-in
UK
dial-in
Passcode
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+44 203
936 3001
+ 1 845
709 8569
+44 (0)
203 936 3001
20 16
82
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Website:
The
full release and supplementary data will be available on our
website from 7.00am (London time) on 4 May. The web address is
www.ihgplc.com/investors/results-and-presentations.
Notes to Editors:
IHG®
(InterContinental
Hotels Group) [LON:IHG,
NYSE:IHG (ADRs)] is a global organisation with a broad portfolio of
hotel brands, including InterContinental®
Hotels
& Resorts,
Kimpton®
Hotels
& Restaurants,
Hotel
Indigo®,
EVEN®
Hotels,
HUALUXE®
Hotels
and Resorts,
Crowne
Plaza®
Hotels
& Resorts,
Holiday
Inn®,
Holiday
Inn Express®,
Holiday
Inn Club Vacations®,
Holiday
Inn Resort®,
avid™
hotels, Staybridge
Suites®
and Candlewood
Suites®.
IHG franchises, leases, manages or owns nearly 5,400 hotels and
800,000 guest rooms in almost 100 countries, with more than 1,700
hotels in its development pipeline. IHG also manages
IHG®
Rewards
Club, our global loyalty
programme, which has more than 100 million enrolled
members.
InterContinental Hotels Group PLC is the Group's holding company and is
incorporated in Great Britain and registered in England and Wales.
More than 375,000 people work across IHG's hotels and corporate
offices globally.
Visit www.ihg.com
for hotel information and
reservations and www.ihgrewardsclub.com
for more on IHG Rewards Club. For our
latest news, visit: www.ihgplc.com/media
and follow us on social media
at: www.twitter.com/ihg,
www.facebook.com/ihg
and www.youtube.com/ihgplc.
Cautionary note regarding forward-looking statements:
This
announcement contains certain forward-looking statements as defined
under United States law (Section 21E of the Securities Exchange Act
of 1934) and otherwise. These forward-looking statements can
be identified by the fact that they do not relate only to
historical or current facts. Forward-looking statements often
use words such as 'anticipate', 'target', 'expect', 'estimate',
'intend', 'plan', 'goal', 'believe' or other words of similar
meaning. These statements are based on assumptions and
assessments made by InterContinental Hotels Group PLC's management
in light of their experience and their perception of historical
trends, current conditions, expected future developments and other
factors they believe to be appropriate. By their nature,
forward-looking statements are inherently predictive, speculative
and involve risk and uncertainty. There are a number of
factors that could cause actual results and developments to differ
materially from those expressed in or implied by, such
forward-looking statements. The main factors that could
affect the business and the financial results are described in the
'Risk Factors' section in the current InterContinental Hotels Group
PLC's Annual report and Form 20-F filed with the United States
Securities and Exchange Commission.
[1] RevPAR growth is at constant exchange rates (CER) unless
otherwise
stated.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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InterContinental Hotels Group PLC
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(Registrant)
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By:
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/s/ F.
Cuttell
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Name:
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F.
CUTTELL
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Title:
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ASSISTANT
COMPANY SECRETARY
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Date:
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04 May 2018
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