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 25
November 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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New US
co-brand credit card agreements dated 25 November 2024
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Exhibit
No: 99.1
This announcement contains inside information
25 November 2024
InterContinental Hotels Group PLC
New US co-brand credit card agreements
InterContinental Hotels Group PLC (IHG) has entered into new
agreements with our current issuing and financial services partners
to continue providing co-branded IHG One Rewards credit cards in
the US. The new agreements, including that with JPMorgan Chase
Bank, N.A. (Chase), are effective immediately and have an initial
term running through to 2036.
Co-brand credit cards drive further membership and loyalty to our
IHG One Rewards programme, deepening guest relationships and
delivering more business to our hotels. Co-brand credit card
agreements generate ancillary fee streams for IHG, in consideration
for: providing the co-brand partners with access to our loyalty
programme and customer base, and rights to use our brands;
arranging for the provision of future benefits to members who have
earned points or free night certificates; and performing marketing
services.
Total fees to IHG are expected to significantly increase from the
start of the new agreements and to continue growing over the term.
This growth will be driven by IHG's and our partners' ongoing
commitment to expand the overall US co-brand credit card business,
and the number and usage of card accounts. This will also be
supported by the growth of IHG One Rewards membership and loyalty
penetration, together with the ongoing expansion of IHG's hotel
portfolio. Fees recognised within IHG's operating profit from
reportable segments were $39m in 2023, with these expected to be
double that level in 2025 and to more than triple by 2028, and with
continued growth anticipated in the years beyond. The balance of
fees is recognised within System Fund revenue, and this is also
expected to grow meaningfully over the term of the new
agreements.
As part of the new agreements, upfront cash inflows totalling
$137m, pre-tax, are expected to be received over the coming months
as part of IHG's cash flow, and will be recognised within fee
income over the term of the new agreements.
The IHG One Rewards programme is on track to have approximately 145
million members globally by the end of the year, with enrolments to
date in 2024 having grown by more than 10% year-on-year. Loyalty
members typically spend approximately 20% more in IHG hotels than
non-members and are around ten times more likely to book through
IHG direct channels. In the first half of 2024, Reward Night
redemptions grew by around 15% year-on-year, demonstrating strong
member engagement and driving increased returns for our hotel
owners. Loyalty penetration has also significantly increased, with
members now responsible for over 60% of room nights globally in
2024 and approaching 70% in the Americas, each up more than 10%pts
on the penetration rates prior to the 2022 refresh of the
programme.
IHG One Rewards co-brand credit card holders stay even more
frequently and spend more in IHG hotels. In 2023, following the
update of US card products alongside the relaunch of the loyalty
programme in the prior year, new card accounts reached record
levels and we saw double-digit percentage growth in total card
spend. This has continued in 2024, such that compared to pre
relaunch levels two years earlier, new accounts are up by over 60%
and total card spend is around 30% higher.
Our new agreements build on IHG's strong track record of driving
growth and shareholder returns. In February 2024, IHG set out a
clear framework for future value creation over the medium to long
term. As part of this, we aim to grow ancillary products and fee
streams, including those from co-brand credit cards. The expansion
of ancillary fee streams creates further value in addition to IHG
targeting delivering 100-150bps annual improvement in fee margin
from operational leverage. This is already being achieved in 2024,
with fee revenue growth and margin improvement from loyalty point
sales to consumers that is now being reported within results from
reportable segments, and is followed by today's
announcement.
Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts,
commented: "We
are delighted to continue our partnerships to provide co-brand
credit cards in the US. Following a detailed review of the
opportunities to grow this important ancillary fee stream, the new
agreements will create more opportunities for customers to engage
with IHG and our award-winning loyalty programme, further
strengthen IHG's enterprise and the System Fund for the benefit of
our hotel owners, and will drive significant shareholder value. We
look forward to continuing a close working relationship with our
partners to mutually benefit from the growth of the co-brand
programme in the US, and we continue to assess the potential for
co-brand credit cards in other markets."
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)
For the purposes of the Market Abuse Regulation, the person
responsible for arranging the release of this announcement is
Nicolette Henfrey, EVP, General Counsel & Company
Secretary.
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
-
Premium: voco
hotels, HUALUXE
Hotels & Resorts, Crowne
Plaza Hotels & Resorts, EVEN
Hotels
-
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.
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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25 November 2024
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