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 20
October 2023
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
EXHIBIT
INDEX
|
99.1
|
2023
Third Quarter Trading Update dated 20 October 2023
|
Exhibit
No: 99.1
20
October 2023
InterContinental
Hotels Group PLC
2023
Third Quarter Trading Update
Highlights
|
●
|
Q3
group RevPAR +10.5% vs 2022, with Americas +4.1%, EMEAA +15.9% and
Greater China +43.2%
|
|
●
|
Q3
group RevPAR +12.8% vs 2019, with Americas +13.8%, EMEAA +17.5% and
Greater China +9.3%
|
|
●
|
Average
daily rate +4.1% vs 2022, +14.8% vs 2019; occupancy +4.1%pts vs
2022, (1.3)%pts vs 2019
|
|
●
|
Gross
system size growth +6.2% YOY, +3.1% YTD; opened 7.7k rooms (50
hotels) in Q3, similar to 2022
|
|
●
|
Net
system size growth +4.7% YOY, +2.0% YTD; excluding Iberostar, +2.9%
YOY, +1.6% YTD
|
|
●
|
Global
system of 930k rooms (6,261 hotels); 67% across midscale segments,
33% across upscale and luxury
|
|
●
|
Signed
16.8k rooms (123 hotels) in Q3, +27% vs 2022; global pipeline of
292k rooms (1,978 hotels), +5.1% YOY
|
|
●
|
On
track to have returned $1.0bn to shareholders in 2023 through share
buybacks and dividend payments
|
Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts,
said:
“Travel
demand remained very healthy during the quarter, and I would like
to thank all our teams for supporting another strong trading
period. Q3 RevPAR increased 10% versus 2022 and 13% versus 2019,
representing the fifth quarter of sequential improvement exceeding
pre-pandemic highs. Greater China continued its excellent rebound
with RevPAR now above 2019, which the Americas achieved in the
second quarter of last year and EMEAA in the fourth quarter.
Group-wide occupancy was 72%, just one percentage point behind 2019
which further confirms the near-complete return to pre-Covid levels
of demand. Pricing remained very robust. As well as year-on-year
RevPAR growth in each of our three regions, it was also pleasing to
see rooms revenue growth for each of leisure, business and group
travel.
We
opened nearly eight thousand rooms across 50 hotels in the quarter,
and added 17 thousand rooms to our pipeline across 123 properties.
Year to date, signings are up by 16%. Reflecting the breadth and
attractiveness of our portfolio, ‘quicker to market’
conversions have increased this year to be over one-third of
openings and signings. This will soon be further boosted by our new
midscale conversion brand, Garner, which became franchise-ready in
September. There was good development progress across all our
categories, and our six Luxury & Lifestyle brands continue to
represent a growing proportion of IHG with over 800 open and
pipeline hotels in that category.
As IHG
powers forward to provide industry-leading advantages for our
guests and hotels owners across our brand portfolio, loyalty
programme and entire enterprise platform, we expect to close-out
2023 with very strong financial performance. Looking further ahead,
whilst there are macro-economic uncertainties and some short-term
financing challenges holding back new hotel development, I am
excited about the future for IHG and the attractive, long-term
demand drivers for our markets. As such, we’re confident in
the strengths of IHG’s business model, scale and in our
strategic priorities to capture sustainable, profitable
growth.”
Regional performance
Americas
Q3
RevPAR was up +4.1% vs 2022 (up +13.8% vs 2019), with US RevPAR up
+3.1% (up +11.8% vs 2019). Occupancy was 72%, up +0.7%pts on last
year (down (0.6)%pts vs 2019), whilst rate was up +3.1% (up +14.8%
vs 2019). Leisure rooms revenue in Q3 for the total estate was +3%
higher than last year, and up +22% on 2019 levels, driven by
another strong summer vacation period.
Gross
system size growth was +3.9% YOY, with 2.0k rooms (18 hotels)
opened in the quarter.
Net system size growth was +2.9% YOY. A further
5.1k rooms (55 hotels) were added to the pipeline. Signings
included eight avid hotels, 16 hotels across the Holiday Inn
Brand Family, and a further 26 across our extended stay
brands.
EMEAA
Q3
RevPAR was up +15.9% vs 2022 (up +17.5% vs 2019). Occupancy was
73%, up +4.7%pts on last year (and down (4.0)%pts vs 2019), whilst
rate was up +8.6% (up +23.9% vs 2019). By major geographic markets
within the region, Q3 RevPAR vs 2019 ranged from up +31% in
Continental Europe, +18% in the UK, and +16% in Australia, to down
just (1)% in the Middle East and (4)% in Japan.
Gross
system size growth was +10.0% YOY, with 2.0k rooms (11 hotels)
opened in the quarter. Net system size growth was +8.4% YOY (+5.2%
excluding Iberostar). There were 4.8k rooms (31 hotels) added to
the pipeline, with conversions representing around 40% of these.
Luxury & Lifestyle brands performed strongly, also representing
40% of all signings.
Greater
China
Q3
RevPAR was up +43.2% vs 2022 (up +9.3% vs 2019). Occupancy was 67%,
up +14.1%pts (and up +2.3%pts vs 2019), whilst rate was up +13.0%
(up +5.6% vs 2019). Tier 1 cities saw RevPAR vs 2019 down (3)%,
reflecting the more gradual return of international travel; the
performance was stronger across Tier 2-4 cities which were up
+13%.
Gross
system size growth was +8.1% YOY, with 3.6k rooms (21 hotels)
opened in the quarter. Net system size growth was +5.5% YOY. A
further 6.9k rooms (37 hotels) were added to the pipeline. As
development activity continues to improve following the extended
period last year of Covid-related restrictions in the region, this
was the highest quarterly signings performance since
2021.
Share buyback and capital allocation update
As
announced in February 2023, a $750m share buyback programme is
returning surplus capital to shareholders. This follows the $500m
programme announced in 2022 which already reduced the total number
of voting rights in the Company by 5.0%. The current 2023 programme
is 94% complete with $704.7m (£561.2m) having been
cumulatively spent to date, repurchasing 10.1 million shares at an
average price of £55.76 per share. The 2023 programme to date
has therefore reduced the total number of voting rights in the
Company by a further 5.7% to 165.3 million as at market close on
Thursday 19 October 2023.
IHG’s
2023 share buyback programme, together with ordinary dividend
payments, will have returned $1.0bn to shareholders during the
year. This is equivalent to 10% of IHG’s $10.0bn
(£8.3bn) market capitalisation at the start of 2023, and more
than 8% of IHG’s most recent $12.4bn (£10.2bn) market
capitalisation.
IHG’s
perspectives on the uses of cash generated by the business remain
unchanged: ensuring the business is investing to optimise growth
that will drive long-term shareholder value creation, funding a
sustainably growing dividend, and then returning surplus capital to
shareholders, whilst targeting our leverage ratio within a range of
2.5-3.0x net debt:adjusted EBITDA to maintain an investment grade
credit rating. Having already returned $500m of surplus capital via
the 2022 programme and $750m which is being returned over the
course of 2023, the highly cash generative nature of our business
model means we expect to have significant ongoing capacity to
return further surplus capital to shareholders, both in the
ordinary course and as we look to move leverage into our target
range over time. The Board’s next assessment in relation to
the amounts, mechanisms and timings of future capital returns will
be carried out in early 2024, taking into account macro-economic
conditions and the trading outlook at that time. Our next capital
allocation update will therefore be communicated as part of the
2023 Full Year Results to be announced on Tuesday 20 February
2024.
For further information, please contact:
Investor
Relations: Stuart Ford (+44 (0)7823 828 739);
Aleksandar Milenkovic (+44 (0)7469 905 720); 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 shareholders:
Elie
Maalouf, Chief Executive Officer, and Michael Glover, Chief
Financial Officer, will host a call commencing at 9:00am (London
time) on 20 October. The live listen-only audio webcast can be
accessed directly at https://www.investis-live.com/ihg/65083b4e6dedf60c006bf2d6/xowlw
or via www.ihgplc.com/en/investors/results-and-presentations.
Analysts
and institutional shareholders wishing to ask questions should use
the following dial-in details for a Q&A facility:
|
UK
local:
|
0207
107 0613
|
|
US
local:
|
631 570
5613
|
|
Other
international numbers:
|
Click
here
|
|
Passcode:
|
42 73
27 07
|
An
audio replay will also be available for 7 days using the following
details:
|
UK
local:
|
0203
608 8021
|
|
US
local:
|
412 317
0088
|
|
Other
locations:
|
+44 203
608 8021
|
|
Passcode:
|
20 23
03 54#
|
Website:
The
full release and supplementary data will be available on our
website from 7:00am (London time) on 20 October. The web address is
www.ihgplc.com/en/investors/results-and-presentations.
About IHG Hotels & Resorts:
IHG Hotels & Resorts [LON:IHG, NYSE:IHG (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 6,200 open hotels in more than 100
countries, and nearly 2,000 in the development
pipeline.
-
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
345,000 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)
|
|
Q3 2023 vs 2022
|
Q3 2023 vs 2019
|
|
|
RevPAR
|
ADR
|
Occupancy
|
RevPAR
|
ADR
|
Occupancy
|
|
Group
|
10.5%
|
4.1%
|
4.1%pts
|
12.8%
|
14.8%
|
(1.3)%pts
|
|
Americas
|
4.1%
|
3.1%
|
0.7%pts
|
13.8%
|
14.8%
|
(0.6)%pts
|
|
EMEAA
|
15.9%
|
8.6%
|
4.7%pts
|
17.5%
|
23.9%
|
(4.0)%pts
|
|
Greater
China
|
43.2%
|
13.0%
|
14.1%pts
|
9.3%
|
5.6%
|
2.3%pts
|
|
|
Q3 YTD 2023 vs 2022
|
Q3 YTD 2023 vs 2019
|
|
|
RevPAR
|
ADR
|
Occupancy
|
RevPAR
|
ADR
|
Occupancy
|
|
Group
|
18.9%
|
6.1%
|
7.4%pts
|
10.2%
|
12.2%
|
(1.3)%pts
|
|
Americas
|
8.7%
|
5.0%
|
2.4%pts
|
12.6%
|
12.7%
|
0.0%pts
|
|
EMEAA
|
31.0%
|
12.8%
|
9.7%pts
|
14.1%
|
20.9%
|
(4.1)%pts
|
|
Greater
China
|
71.3%
|
17.4%
|
19.4%pts
|
0.8%
|
(0.5)%
|
0.8%pts
|
Appendix 2: RevPARa movement at CER vs
actual exchange rates (AER)
|
|
Q3 2023 vs 2022
|
Q3 2023 vs 2019
|
|
|
CER (as above)
|
AER
|
Difference
|
CER (as above)
|
AER
|
Difference
|
|
Group
|
10.5%
|
11.0%
|
0.5%pts
|
12.8%
|
10.3%
|
(2.5)%pts
|
|
Americas
|
4.1%
|
4.4%
|
0.3%pts
|
13.8%
|
13.6%
|
(0.2)%pts
|
|
EMEAA
|
15.9%
|
19.1%
|
3.2%pts
|
17.5%
|
10.4%
|
(7.1)%pts
|
|
Greater
China
|
43.2%
|
35.5%
|
(7.7)%pts
|
9.3%
|
6.1%
|
(3.2)%pts
|
|
|
Q3 YTD 2023 vs 2022
|
Q3 YTD 2023 vs 2019
|
|
|
CER (as above)
|
AER
|
Difference
|
CER (as above)
|
AER
|
Difference
|
|
Group
|
18.9%
|
18.3%
|
(0.6)%pts
|
10.2%
|
7.6%
|
(2.6)%pts
|
|
Americas
|
8.7%
|
8.8%
|
0.1%pts
|
12.6%
|
12.2%
|
(0.4)%pts
|
|
EMEAA
|
31.0%
|
30.0%
|
(1.0)%pts
|
14.1%
|
6.9%
|
(7.2)%pts
|
|
Greater
China
|
71.3%
|
61.9%
|
(9.4)%pts
|
0.8%
|
(1.4)%
|
(2.2)%pts
|
Appendix 3: Monthly RevPARa (CER)
|
2023 vs 2022
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
|
Group
|
40.8%
|
33.5%
|
27.2%
|
21.7%
|
17.0%
|
13.3%
|
9.5%
|
10.4%
|
11.6%
|
|
Americas
|
24.5%
|
18.3%
|
13.8%
|
5.9%
|
6.9%
|
4.7%
|
2.8%
|
3.9%
|
5.7%
|
|
EMEAA
|
84.0%
|
71.9%
|
44.5%
|
36.7%
|
24.2%
|
22.7%
|
16.1%
|
16.1%
|
15.7%
|
|
Greater
China
|
53.3%
|
54.2%
|
125.2%
|
171.4%
|
106.9%
|
68.4%
|
40.5%
|
38.5%
|
54.2%
|
|
2023 vs 2019
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
|
Group
|
4.2%
|
6.7%
|
9.2%
|
9.5%
|
9.3%
|
10.9%
|
12.8%
|
11.1%
|
14.5%
|
|
Americas
|
8.8%
|
11.0%
|
13.1%
|
11.5%
|
11.8%
|
13.0%
|
12.5%
|
10.9%
|
18.2%
|
|
EMEAA
|
8.2%
|
7.7%
|
13.0%
|
12.6%
|
15.6%
|
16.7%
|
19.0%
|
17.0%
|
16.6%
|
|
Greater
China
|
(16.6)%
|
(3.8)%
|
(6.6)%
|
5.0%
|
(6.4)%
|
(0.1)%
|
14.0%
|
9.3%
|
3.3%
|
Appendix 4: System and pipeline summary of Q3 2023 YTD and YOY
growths, and closing positions (rooms)
|
|
System
|
Pipeline
|
|
|
Openings
|
Removals
|
Net
|
Total
|
YTD%
|
YOY%
|
Signings
|
Total
|
|
Group
|
28,688
|
(10,328)
|
18,360
|
929,987
|
+2.0%
|
+4.7%
|
50,940
|
292,467
|
|
Americas
|
6,210
|
(4,744)
|
1,466
|
516,962
|
+0.3%
|
+2.9%
|
18,416
|
106,788
|
|
EMEAA
|
14,372
|
(2,898)
|
11,474
|
241,138
|
+5.0%
|
+8.4%
|
14,766
|
79,256
|
|
Greater
China
|
8,106
|
(2,686)
|
5,420
|
171,887
|
+3.3%
|
+5.5%
|
17,758
|
106,423
|
a.
RevPAR (revenue per
available room), ADR (average daily rate) and occupancy are on a
comparable basis, based on comparability as at 30 September 2023
and includes hotels that have traded in all months in both the
current and the prior year. This same group of hotels is also used
to compare RevPAR performance for 2023 vs 2019. 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.
|
|
|
InterContinental Hotels Group PLC
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
By:
|
/s/ C. Lindsay
|
|
|
Name:
|
C.
LINDSAY
|
|
|
Title:
|
SENIOR
ASSISTANT COMPANY SECRETARY
|
|
|
|
|
|
|
Date:
|
20
October 2023
|
|
|
|
|
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