# Interco. Hotels Group delivering best signings performance for a decade

- Link: https://www.directorstalkinterviews.com/interco-hotels-group-delivering-best-signings-performance-decade/412756360
- Published: 2018-08-07T07:36:37+01:00
- Author: Charlotte Edwards

**Interco. Hotels Group** (LON:IHG), today announced 6 months results to 30 June
2018

**Highlights**

· H1 Comparable RevPAR: Americas = 3.2% (US = 2.7%); EMEAA = 3.0%, Greater China
= 10.1%.

· 22k room additions, up 11% excluding 3.5k rooms added in Makkah, Saudi Arabia 
in H1 2017. 10k rooms removed.

· Regent Hotels & Resorts and UK portfolio deals agreed in H1 will complete in Q3,
adding 4.2k rooms (1.1k pipeline).

· Highest signings for 10 years; including 16.8k rooms in Greater China, up 71% 
YOY and our best ever performance.

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Reported

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Underlying^(3)

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2018

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2017

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% Change

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2018

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2017

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% Change

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REPORTABLE SEGMENTS^(1)

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Revenue

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$900m

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$838m

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7%

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$875m

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$838m

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4%

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Revenue from fee business

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$719m

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$664m

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8%

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$699m

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$664m

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5%

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Operating profit

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$406m

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$370m

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10%

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$398m

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$370m

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8%

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Fee margin^(2)

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53.5%

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52.7%

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0.8%pts

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54.4%

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52.7%

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1.7%pts

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Adjusted EPS

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145.8¢

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113.8¢

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28%

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142.1¢

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113.8¢

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25%

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GROUP RESULTS^(4)

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Total revenue

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$2,113m

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$1,964m

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8%

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KEY METRICS

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Operating profit

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$394m

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$395m

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–

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· $13.3bn total gross revenue (up 9%)

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Basic EPS

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123.2¢

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126.5¢

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(3)%

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· 3.7% global H1 RevPAR (Q2 = 3.7%)

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Interim dividend per share

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36.3¢

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33.0¢

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10%

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· 4.1% net system growth to 810k rooms

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Net debt

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$1,802m

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$2,056m

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(12)%

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· 46k signings; 262k pipeline rooms

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> K**eith Barr, Chief Executive Officer, IHG, said:**
> “We’ve had a strong first half, delivering our best signings performance for a
> decade. RevPAR grew at 3.7%, which together with 4.1% net system size growth, 
> drove underlying operating profit up 8% and underlying EPS up 25%. This underpins
> our decision to raise the interim dividend by 10%.
> Each of our regions continue to deliver strong momentum. This is led by Greater
> China, where double digit growth in both RevPAR and net system size, as well as
> record signings, reflects the ongoing benefits of our long term strategic focus
> on this important market. Demand for our unique Chinese owner proposition “Franchise
> Plus” continues to be excellent and we now have more than 100 Holiday Inn Express
> hotels for this model either in the pipeline or open.
> In February, we set out a series of new initiatives, funded by a comprehensive
> efficiency programme, that build on our well-established strategy to drive an 
> acceleration in net rooms growth. Our new organisational structure has enabled
> us to move at pace; we’ve added three new brands in the last year, avid hotels
> last September, for which we’ve now signed 130 hotels, voco in June and Regent
> Hotels & Resorts in July. Our existing brands continue to strengthen, as demonstrated
> by the continued global expansion of Kimpton Hotels & Restaurants, with flagship
> hotels secured for four UK locations, including London, as part of a portfolio
> deal to rebrand and operate 12 high quality hotels in the UK.
> Our plans to enhance revenue delivery are on track, with IHG Concerto featuring
> our innovative new Guest Reservation System now in over half of the estate, with
> complete roll-out by the end of 2018 / beginning of 2019.
> The fundamentals for our industry are strong, we are confident in the outlook 
> for the balance of the year and in our ability to deliver industry-leading net
> rooms growth over the medium term.”

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