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 22 October
2024
InterContinental Hotels Group PLC
(Registrant's
name)
1
Windsor Dials, Arthur Road, Windsor, SL4 1RS, 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
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EXHIBIT
INDEX
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99.1
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2024
Third Quarter Trading Update dated 22 October 2024
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Exhibit
No: 99.1
InterContinental Hotels Group PLC
2024 Third Quarter Trading Update
22 October 2024
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RevPAR growth of +1.5%, driven by globally diverse footprint and
Groups and Business demand;
strong development performance, with openings more than double last
year and signings +14% ahead;
on track to meet full year expectations
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Highlights
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Q3 global RevPAR +1.5%, with Americas +1.7%, EMEAA +4.9% and
Greater China -10.3%
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Q3 global rooms revenue on a comparable hotels basis saw Groups
demand +6%, Business +2% and Leisure broadly flat on same quarter
last year
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YTD global RevPAR +2.4%, with Americas +1.8%, EMEAA +6.4% and
Greater China -5.6%
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Average daily rate +1.7% and occupancy -0.1%pts in Q3, +1.9% and
+0.4%pts respectively YTD
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Gross system size growth +5.9% YOY, +3.7% YTD; opened 17.5k rooms
(98 hotels) in Q3, representing another quarter of sequential
improvement and very significantly ahead of the 7.7k in the same
period last year
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Net system size growth +4.1% YOY, +2.3% YTD; global system of 968k
rooms (6,505 hotels)
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Signed 19.2k rooms (129 hotels) in Q3, +14% YOY; global pipeline of
327k rooms (2,218 hotels), +12% YOY
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$614m of 2024's $800m share buyback programme completed to date,
reducing the share count by 3.7%
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On track to return over $1bn to shareholders in 2024 through
dividend payments and share buybacks
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Expect to finish 2024 in line with market expectations and our
growth algorithm
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Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts,
said:
"We are pleased with the latest trading performance and another
strong period of development activity, and we are on track to
finish 2024 in line with market expectations. RevPAR grew +1.5% in
the third quarter of 2024, reflecting the strength of our globally
diverse footprint, healthy business demand and a record period for
Groups bookings. Our EMEAA region again performed strongly, up
+4.9%, and the Americas increased by +1.7%, driven by continued
growth in the US. In Greater China, RevPAR was down -10.3% as we
came up against strong comparatives of resurgent domestic travel
this time last year, and the quarter was still broadly in line with
2019 levels.
Our development performance was particularly notable. We opened
17.5k rooms across 98 hotels, well over double the same period last
year, which was in part due to the next 6.2k rooms of the NOVUM
Hospitality agreement joining IHG's system. A strong signings
performance of 19.2k rooms across 129 properties was +14% more than
2023 and led to a +12% year-on-year increase in our pipeline.
'Quicker to market' conversions represented over 50% of openings
and 40% of Q3 signings, a clear reflection of the strength and
appeal of our brands and wider enterprise to owners, and we've also
seen the advance in new-build signings over the course of the year
as developer confidence continued to improve. In fact, in Greater
China, reflecting the attractive long term demand drivers, our
excellent development momentum should lead to 2024 being one of the
biggest ever years for both hotel openings and signings in this
region.
We have made great progress this year to further strengthen IHG's
enterprise platform, grow our brands and deliver on our growth
algorithm. The power of this algorithm comes from the compounding
nature of growing fee revenues through the combination of RevPAR,
system expansion and ancillary fee streams, which in turn helps to
increase margins and, with our strong cash generation, allows us to
reinvest in our business and return surplus capital to
shareholders. We remain confident in our abilities to capitalise
further on our scale, leading positions and the attractive,
long-term demand drivers for our markets."
Regional performance
Americas
Trading momentum was sustained and broad-based across demand
drivers. Q3 RevPAR was up +1.7%, with the US up +1.2% and growth of
+6.2% in aggregate across Canada, Latin America and the
Caribbean. Occupancy for the region was unchanged at 72.3%, and
rate was up +1.7%. On a comparable hotels basis, Q3 rooms revenue
for Leisure was -1% lower than 2023 levels, Business was up +3% and
Groups was up a strong +7%.
Gross system growth was +2.8% YOY and +2.0% YTD, with 3.5k rooms
(24 hotels) opened in the quarter. Net system size growth was +1.1%
YOY and +0.6% YTD. A further 6.7k rooms (59 hotels) were added to
the pipeline in the quarter, including 19 hotels signed across the
Holiday Inn Brand Family, 17 across our extended stay brands, and 7
across Luxury & Lifestyle; there were also 7 further signings
for our newest brand, Garner.
EMEAA
We saw another period of strong demand for this diverse region as a
whole. Q3 RevPAR was up +4.9%, with occupancy up +0.9%pts to 74.6%
and rate up +3.6%. By major geographic markets within the region,
RevPAR ranged from up +7.1% in Continental Europe, +6.5% in East
Asia & Pacific, and +2.2% in the UK, though RevPAR was -3.2%
lower in the Middle East.
Gross system growth was +8.2% YOY and +5.3% YTD, with 8.6k rooms
(47 hotels) opened in the quarter. Openings included 6.2k rooms
from a further 31 conversions as part of the NOVUM Hospitality
agreement, taking the total converted to date to 7.3k rooms and 37
hotels. Net system size growth was +6.6% YOY and +3.9% YTD. There
were 5.8k rooms (30 hotels) added to the pipeline. Conversions
represented 56% of all room signings and included 2 further Garner
properties as it continues to be developed in the region. There
were also 8 signings for the Vignette Collection, as its rollout
further accelerates.
Greater China
This latest short-term trading performance reflects the unusually
strong comparatives a year ago, and we remain very encouraged by
the longer term demand drivers for the region. Q3 RevPAR was down
-10.3% YOY against comparatives that included resurgent domestic
travel this time last year and which saw RevPAR for Q3 2023 exceed
2019 levels by +9.3%. There were also adverse impacts from shifts
in the timing of public holidays and the typhoons in September.
Occupancy was down -2.1%pts to 64.9% and rate was down -7.4% YOY.
Tier 1 cities saw RevPAR down -6.1% YOY. Tier 2-4 cities were down
-12.2% YOY due to the particularly strong comparatives from
domestic leisure demand this time last year into Tier 4 resort
locations. In contrast in 2024, there has been an expansion of
outbound leisure travel, most notably to elsewhere in East Asia
& Pacific, as seen benefiting demand in our EMEAA
region.
Gross system growth was +11.9% YOY and +6.8% YTD, with 5.5k rooms
(27 hotels) opened in the quarter which is +51% more than the same
quarter last year and +50% ahead year-to-date. Net system size
growth was +9.6% YOY and +5.0% YTD. A further 6.7k rooms (40
hotels) were added to the pipeline as development activity
continues to gain momentum following the extended period of
Covid-related restrictions, with cumulative signings to date in
2024 up by over +20% on last year. For both hotel openings and
signings, 2024 is heading to be one of the biggest ever
years.
Share buyback progress
As announced in February, a $800m share buyback programme is
returning surplus capital to shareholders in 2024. This follows the
$750m programme in 2023 and the $500m programme announced in 2022,
which already reduced the total number of voting rights in the
Company by 6.1% and 5.0%, respectively. The 2024 programme is 77%
complete with $614m (£482m) having been cumulatively spent to
date, repurchasing 6.1 million shares. The 2024 programme to date
has therefore reduced the total number of voting rights in the
Company by a further 3.7% to 159.2 million as at market close on
Monday 21 October 2024.
The $800m share buyback programme together with approximately $255m
of ordinary dividend payments will have returned a total of $1,055m
to shareholders in 2024. This is equivalent to 7.1% of IHG's
$14.9bn (£11.7bn) market capitalisation at the start of 2024,
and 6.0% of IHG's most recent $17.7bn (£13.6bn) market
capitalisation.
Financing update
In September 2024, the Group issued a €750m bond at a coupon
of 3.625%, repayable in September 2031. Currency swaps were
transacted at the same time as issuance in order to convert the
proceeds and interest flows to US Dollars. This fixed the bond debt
at $834m, with interest payable semi-annually of
4.903%.
In October 2024 a €500m bond matured, with future maturities
in August 2025 (£300m), August 2026 (£350m), May 2027
(€500m), October 2028 (£400m), November 2029
(€600m) and September 2031 (€750m). After currency
swaps, the Group now has a total of $3,482m bonds outstanding, with
a blended borrowing cost of approximately 4.1%.
As set out at the time of IHG's half year results in August 2024,
after completing this year's buyback programme to return $800m of
surplus capital to shareholders and based on analyst consensus,
leverage continues to be expected around the lower end of our net
debt:adjusted EBITDA target range of 2.5-3.0x at 31 December
2024.
InterContinental Alliance Resorts - The Venetian Resort Las
Vegas
IHG's license agreement to affiliate The Venetian Resort Las Vegas
and The Palazzo at The Venetian Resort with the InterContinental
Hotels & Resorts brand will come to an end on 1 January 2025
after 15 years. Although the end of this agreement will remove
7,092 rooms or approximately 0.7% from IHG's overall system
size in 2025, the unique nature of the fee structure under this
particular licensing agreement means it contributed less than $1m
or 0.1% of IHG's revenue from fee business in 2023 and a net nil
contribution to operating profit from reportable segments. The
impact on the System Fund is also immaterial. Agreements for the
three other InterContinental Alliance Resorts are
unchanged.
For further information, please contact:
Investor
Relations: Stuart Ford
(+44 (0)7823 828 739); Joe Simpson (+44 (0)7976 862
072)
Media
Relations:
Neil Maidment (+44 (0)7970 668 250); Mike Ward (+44 (0)7795 257
407)
Conference call for analysts and institutional
investors:
Elie Maalouf, Chief Executive Officer, and Michael Glover, Chief
Financial Officer, will host a conference call commencing at 9:30am
(London time) on 22 October. A listen-only audio webcast can be
accessed at www.investis-live.com/ihg/66f155e1265980000e236d26/lapsk or
via www.ihgplc.com/en/investors/results-and-presentations.
Analysts and institutional investors wishing to ask questions
should use the following dial-in details for a Q&A
facility:
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UK:
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0207 3936 2999
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US:
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646 787 9445
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Other international numbers:
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Click here
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Passcode:
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204415
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An archived replay is expected to be available within 24 hours and
will remain available, accessed at www.ihgplc.com/en/investors/results-and-presentations.
Website:
The full release and supplementary data will be available
on www.ihgplc.com/en/investors/results-and-presentations from
7:00am (London time) on 22 October 2024.
About IHG Hotels & Resorts:
IHG Hotels & Resorts (tickers:
LON:IHG for Ordinary Shares; NYSE:IHG for ADRs) is a global
hospitality company, with a purpose to provide True Hospitality for
Good.
With a family of 19 hotel brands and IHG
One Rewards, one of the world's
largest hotel loyalty programmes, IHG has over 6,500 open hotels in
more than 100 countries, and a development pipeline of over 2,200
properties.
-
Luxury & Lifestyle: Six
Senses Hotels Resorts Spas, Regent
Hotels & Resorts, InterContinental
Hotels & Resorts, Vignette
Collection, Kimpton
Hotels & Restaurants, Hotel
Indigo
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Premium: voco
hotels, HUALUXE
Hotels & Resorts, Crowne
Plaza Hotels & Resorts, EVEN
Hotels
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Essentials: Holiday
Inn Hotels & Resorts, Holiday
Inn Express, Garner
hotels, avid
hotels
- Suites: Atwell
Suites, Staybridge
Suites, Holiday
Inn Club Vacations, Candlewood
Suites
- Exclusive
Partners: Iberostar
Beachfront Resorts
InterContinental Hotels Group PLC is the Group's holding company
and is incorporated and registered in England and Wales.
Approximately 375,000 people work across IHG's hotels and corporate
offices globally.
Visit us online for more about our hotels
and reservations and IHG
One Rewards. To
download the IHG One Rewards app, visit the Apple
App or Google
Play stores.
For our latest news, visit our Newsroom and
follow us on LinkedIn.
Appendix 1: RevPARa movement
summary at constant exchange rates (CER)
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Q3 2024 vs 2023
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Q3 YTD 2024 vs 2023
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RevPAR
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ADR
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Occupancy
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RevPAR
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ADR
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Occupancy
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Global
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+1.5%
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+1.7%
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-0.1%pts
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+2.4%
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+1.9%
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+0.4%pts
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Americas
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+1.7%
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+1.7%
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0.0%pts
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+1.8%
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+1.7%
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0.0%pts
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EMEAA
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+4.9%
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+3.6%
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+0.9%pts
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+6.4%
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+3.5%
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+2.0%pts
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Greater China
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-10.3%
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-7.4%
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-2.1%pts
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-5.6%
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-4.2%
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-0.9%pts
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Appendix 2: RevPARa movement
at CER vs actual exchange rates (AER)
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Q3 2024 vs 2023
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Q3 YTD 2024 vs 2023
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CER (as above)
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AER
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Difference
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CER (as above)
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AER
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Difference
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Global
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+1.5%
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+1.2%
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-0.3%pts
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+2.4%
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+1.7%
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-0.7%pts
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Americas
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+1.7%
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+1.0%
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-0.7%pts
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+1.8%
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+1.5%
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-0.3%pts
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EMEAA
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+4.9%
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+4.9%
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0.0%pts
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+6.4%
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+5.3%
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-1.1%pts
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Greater China
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-10.3%
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-9.5%
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+0.8%pts
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-5.6%
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-7.5%
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-1.9%pts
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Appendix 3: System and pipeline summary of Q3 2024 YTD and YOY
growths, and closing positions (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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YTD%
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YOY%
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Signings
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Total
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Global
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35,481
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(13,572)
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21,909
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968,112
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+2.3%
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+4.1%
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76,276
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326,518
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Americas
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10,334
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(7,127)
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3,207
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522,801
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+0.6%
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+1.1%
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16,880
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110,339
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EMEAA
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12,983
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(3,302)
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9,681
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256,948
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+3.9%
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+6.6%
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37,684
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102,607
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Greater China
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12,164
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(3,143)
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9,021
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188,363
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+5.0%
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+9.6%
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21,712
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113,572
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a.
RevPAR (revenue per
available room), ADR (average daily rate) and occupancy are on a
comparable basis, based on comparability as at 30 September 2024
and includes hotels that have traded in all months in both the
current and the prior year. The principal exclusions in deriving
these measures are new openings, properties under major
refurbishments and removals. See 'Use of key performance measures
and non-GAAP measures' in IHG's full year and half year results
announcements for further information on the
definitions.
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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By:
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/s/ C. Lindsay
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Name:
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C.
LINDSAY
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Title:
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SENIOR
ASSISTANT COMPANY SECRETARY
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Date:
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22 October 2024
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