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 18
October 2019
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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Third
Quarter Trading Update dated 18 October 2019
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|
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Exhibit
No: 99.1
18 October 2019
InterContinental Hotels Group PLC
2019 Third Quarter Trading Update
●
4.7%
YOY net system size growth to 865k rooms; on track to exceed 5% for
full year 2019
●
13k
rooms opened, taking the total to 42k rooms YTD
●
Signed 25k rooms in the
quarter, 73k rooms YTD
●
Group
Q3 comparable RevPAR1 down
0.8%, flat for Q3 YTD
Keith Barr, Chief Executive Officer, InterContinental Hotels Group
PLC, said:
|
"Our continued strategic focus on driving net rooms growth enabled
us to deliver a 4.7% increase in net system size despite a strong
comparable. This will accelerate in the coming quarter and we are
on track to deliver industry leading net system growth over the
medium term. Third quarter Group RevPAR was down 0.8%, impacted by
tougher trading conditions in the US and China, and ongoing unrest
in the Hong Kong SAR.
We have made further progress executing against our strategic
initiatives, with the first franchise applications already received
for Atwell Suites, our new upper midscale brand which was launched
for franchise sales at the end of the quarter. We also strengthened
our loyalty offer through an exclusive partnership with
world-renowned travel club and boutique hotel specialists, Mr &
Mrs Smith. This will more than double our luxury and boutique
offering to IHG Rewards Club members in new and iconic locations
and enhance the loyalty member value proposition.
Despite the weaker RevPAR environment, and the challenges some of
our markets are currently experiencing, we remain confident in our
financial outcome for the rest of the year. Our broad geographical
spread combined with the resilience of our asset-light, cash
generative model, our disciplined approach to cost management and
the continued execution against our strategic initiatives,
positions us well for the future."
Third Quarter performance
|
Americas
RevPAR was down 0.6% in Q3 and flat Q3 YTD. In the US, RevPAR was
down 0.6% in the third quarter, impacted by renovation activity and
lower group business. Our Q3 YTD performance of flat RevPAR in the
US was in line with the segments in which we compete. Canada was
down 2% due to softness in Ontario and Alberta. Elsewhere in the
region, Latin America and the Caribbean were up 6% and Mexico was
down 2%.
We opened 6.0k rooms (58 hotels) in the quarter, our highest level
in seven years. As we continue to focus on enhancing the quality of
our estate, we removed 2.8k rooms (20 hotels), resulting in a 2.5%
increase in our net system size. We signed 8.0k rooms (77 hotels)
in the quarter, including the Six Senses Galápagos
Islands.
Europe, Middle East, Asia & Africa
RevPAR was up 0.2% in Q3 and up 0.3% in Q3 YTD. Third quarter
RevPAR was up 1% in the UK, with London up 3% driven by
international inbound demand and the Provinces flat. Continental
Europe RevPAR was up 1%, with France up 1%, and Germany down 7% due
to a less favourable trade fair calendar. Elsewhere, the Middle
East was down 1%, with the adverse impact of supply growth and
political unrest partly offset by timing of the Hajj pilgrimage.
Australia and Japan were both down 1%.
We opened 2.6k rooms (16 hotels), driving net rooms growth of 5.4%.
We signed 10.0k rooms (34 hotels) in the quarter, our highest ever
performance, with five voco hotels (5.6k rooms) including a 4k room
property in Makkah.
Greater China
Third quarter RevPAR in Greater China was impacted by ongoing
unrest in the Hong Kong SAR where RevPAR was down 36%. We continue
to outperform the market in Mainland China, where our Q3 RevPAR
declined 2%, due to lower corporate and meetings business partly
offset by domestic leisure demand. RevPAR in Tier 1 and 2 cities
declined 2%, and Tier 3 and 4 cities fell 3%.
We opened 4.1k rooms (22 hotels) in the quarter, driving net rooms
growth of 13.4%. Signings totalled 7.1k rooms (37 hotels) including
20 Holiday Inn Express Franchise Plus hotels, and a further two
franchise Holiday Inn properties.
1 RevPAR
growth is at constant exchange rates (CER) unless otherwise
stated
Update on strategic initiatives
|
We continue to make good progress against our strategic initiatives
to drive industry leading net rooms growth over the medium
term.
Build and leverage scale
●
Net system
size up 4.7% year on year to 865k rooms (5,795 hotels), impacted by
the later phasing of openings compared to Q3 2018, when 19k rooms
opened. Remain on track to exceed 5% net system size growth in full
year 2019.
●
13k rooms
opened in the quarter, including our 400th Candlewood
Suites property, and our best performance for Holiday Inn Express
openings in over a decade.
●
Signed 25k rooms in the
quarter, including our highest InterContinental Hotels &
Resorts signings since 2014.
●
Pipeline now stands at
289k rooms.
Optimise our preferred portfolio of brands for owners and
guests
●
Mainstream
- avid
hotels: Over 200 hotels
(19k rooms) signed since launch (11 hotels, (1.0k rooms) in the
third quarter). With almost 80 hotels under construction or
planning approved, including the brand's first ground break in
Mexico, we are on track to have ~10 properties open by the end of
the year.
-
Atwell
Suites: Following the
registration of franchise documents in September, we have received
10 applications for our new all-suites upper midscale brand. We
expect the first Atwell Suites locations to begin construction in
early 2020 and open in 2021.
●
Upscale
- Crowne
Plaza: Achieved our best
signings performance in the first nine months of the year in over a
decade. Opened the first Crowne Plaza Accelerate flagship property
in Ravinia.
-
Hotel
Indigo: Record number of
signings year to date; now have deals signed into the pipeline that
will take Hotel Indigo to 17 new countries.
- voco: Twenty-three
hotels (9k rooms in total) signed to date, including our fourth
signing in Saudi Arabia. On track to grow the voco portfolio to ~30
signed hotels by the end of the year.
●
Luxury
- InterContinental
Hotels & Resorts: Signed
five hotels, and opened three in the quarter, including the
Maldives, taking our total pipeline and system size for the brand
to over 270 properties.
-
Six Senses Hotels
Resorts Spas: Seven
signings since February 2019 acquisition, three deals in the
quarter, including the Galápagos Islands.
Strengthen loyalty programme
●
Exclusive partnership with Mr &
Mrs Smith, the world-renowned travel club and boutique hotel
specialists, more than doubling our luxury and boutique offering to
IHG Rewards Club members in new and iconic
locations.
The strengthening of the US dollar against many major currencies
globally decreased Group RevPAR to a 1.9% decline in the quarter,
when reported at actual exchange rates. A breakdown of constant vs.
actual currency RevPAR is set out in Appendix 2.
In addition to items previously disclosed, full year 2019 is
expected to be impacted by the following:
●
~$5m adverse impact from the fee
income loss from trading conditions in the Hong Kong
SAR
●
~$10m favourable impact from
non-recurring items including significant liquidated damages and
accounting treatment relating to IFRS 16.
Appendix 1: Third quarter RevPAR movement summary
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Q3 2019
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Q3 YTD 2019
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RevPAR
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Rate
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Occ.
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RevPAR
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Rate
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Occ.
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Group
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(0.8)%
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(0.8)%
|
0.0%pts
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0.0%
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0.0%
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0.0%pts
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Americas
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(0.6)%
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(0.3)%
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(0.2)%pts
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0.0%
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0.4%
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(0.3)%pts
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EMEAA
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0.2%
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(1.0)%
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0.9%pts
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0.3%
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(0.6)%
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0.7%pts
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G.
China
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(6.1)%
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(5.5)%
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(0.4)%pts
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(2.3)%
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(2.3)%
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0.0%pts
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Appendix 2: RevPAR at constant exchange rates (CER) vs. actual
exchange rates (AER)
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Q3 2019
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Q3 YTD 2019
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CER
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AER
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Difference
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CER
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AER
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Difference
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Group
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(0.8)%
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(1.9)%
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1.1%pts
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0.0%
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(1.8)%
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1.8%pts
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Americas
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(0.6)%
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(1.0)%
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0.4%pts
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0.0%
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(0.4)%
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0.4%pts
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EMEAA
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0.2%
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(2.4)%
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2.6%pts
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0.3%
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(3.8)%
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4.1%pts
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G.
China
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(6.1)%
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(8.5)%
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2.4%pts
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(2.3)%
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(6.5)%
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4.2%pts
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Appendix 3: Q3 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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12,735
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(3,951)
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8,784
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864,699
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4.7%
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25,145
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289,135
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Americas
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6,023
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(2,823)
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3,200
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517,909
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2.5%
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8,040
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118,280
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EMEAA
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2,567
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(738)
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1,829
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216,847
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5.4%
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10,025
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84,209
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G.
China
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4,145
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(390)
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3,755
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129,943
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13.4%
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7,080
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86,646
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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 (Heather Wood; Sonya Ghobrial)
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+44
(0)1895 512 176
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+44
(0)7527 419 431
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Media
Relations (Yasmin Diamond; Mark Debenham)
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+44
(0)1895 512 097
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+44
(0)7527 424 046
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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
18th October
and can be accessed at https://www.ihgplc.com/en/investors/results-and-presentations.
There will be an opportunity to ask questions:
UK:
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+44 (0)
203 936 2999
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US:
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+1 646
664 1960
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All
other locations:
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+44 (0)
203 936 2999
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Participant
Access Code:
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363
921
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A recording of the conference call will be available for 7 days
from 11.30am London time; details are below:
UK:
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+44 (0)
203 936 3001
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US:
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+1 845
709 8569
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All
other locations:
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+44
(0)203 936 3001
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Participant
Access Code:
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075
975
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Website:
The full release and supplementary data will be available on our
website from 7:00am (London time) on 18th October.
The web address is https://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 Six
Senses Hotels Resorts Spas, Regent
Hotels & Resorts, InterContinental® Hotels
& Resorts, Kimpton® Hotels
& Restaurants, Hotel
Indigo®, EVEN® Hotels, HUALUXE® Hotels
and Resorts, Crowne
Plaza® Hotels
& Resorts, voco™, Holiday
Inn® Hotels
& Resorts , Holiday
Inn Express®, Holiday
Inn Club Vacations®, avid™
hotels, Staybridge
Suites®, Atwell
Suites™,
and Candlewood
Suites®.
IHG franchises, leases, manages or owns nearly 5,800 hotels and
approximately 865,000 guest rooms in more than 100 countries, with
over 1,900 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 400,000 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: https://twitter.com/ihgcorporate, www.facebook.com/ihgcorporate and www.linkedin.com/company/intercontinental-hotels-group.
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.
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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|
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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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18
October 2019
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