Blueprint
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 19
October 2018
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
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99.1
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Third
Quarter Trading Update dated 19 October 2018
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Exhibit
No: 99.1
This announcement contains inside information
19 October 2018
InterContinental Hotels Group PLC
2018 Third Quarter Trading Update
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5.1% YOY net system size growth, up 4.6% excluding Regent Hotels & Resorts and
the UK portfolio deal
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27k rooms signed, 19k rooms opened (up 70% YOY) strongest Q3 pace
for each in 10 years
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Global Q3 comparable RevPAR1 up
1.0%, with Q3 YTD RevPAR up 2.7%
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Roll out of GRS and IHG Concerto now substantially
complete
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150 avid hotels signed into the Americas pipeline, the first
property is now open, and last week the brand was launched in
Germany
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Regent Hotels & Resorts' first signing since acquisition, and
voco on track for >15 signings by year end
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$500m to be returned to shareholders by means of special dividend
with share consolidation
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Keith Barr, Chief Executive of InterContinental Hotels Group PLC,
said:
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"We delivered a good third quarter performance. Our strategic focus
on improving our rooms growth yielded strong results, driving net
system size up 5.1% and our best performance for signings and
openings in a decade. Global RevPAR grew 1.0%, with
performance in the US impacted by strong prior year demand from the
2017 hurricanes.
We continue to make good progress against the series of new
strategic initiatives we outlined in February. The international
expansion of Kimpton Hotels & Restaurants is accelerating, with
presence secured in 14 countries, voco is on track for more than 15
signings by year end, ahead of our initial expectations, and just
this week we announced the first signing for our recently
relaunched Regent Hotels & Resorts brand. Our first avid hotel
is now open and owner demand continues to be strong, with 150
hotels signed across the Americas and the recent launch of the
brand in Europe.
The roll-out of IHG Concerto, featuring our innovative new Guest
Reservation System, is substantially complete, with over 95% of our
global estate operational on the new system, and the remaining
hotels due to be migrated over the coming weeks.
Reflecting this rapid implementation of our strategic initiatives
and in line with our well-established strategy of returning surplus
cash to shareholders, we are today announcing a $500m special
dividend with share consolidation, to be paid in early
2019.
The fundamentals for our industry remain strong. We are confident
in the outlook for the remainder of the year and in our ability to
deliver industry-leading net rooms growth over the medium
term."
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Third Quarter RevPAR performance
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Americas
RevPAR was flat in Q3 and up 2.0% Q3 YTD. In the US, rate was up
1.1% and occupancy down 1.2%pts driven by a mid-single digit
occupancy decline in markets which benefited from the
hurricane-related demand which commenced in Q3 2017. As a result,
US RevPAR was down 0.5% in Q3 2018 but up 1.5% Q3 YTD, in line with
the performance of the industry upper-midscale segment. Elsewhere
in the region, Canada was up 2.4%, benefitting from continued
strength in urban markets, whilst Latin America and the Caribbean
were up 6.5%, with strong demand in Colombia and Brazil. In
Mexico RevPAR was up 5.4%, aided by soft prior year comparables
from the earthquake in the Mexico City area.
Europe, Middle East, Asia & Africa
RevPAR was up 2.5% in Q3 and 2.7% Q3 YTD. Continental Europe RevPAR
was up 4.3% with France up 9.8% as the market recovery continues,
and Germany up 2.4% due to a more favourable trade fair calendar.
Russia saw double digit growth, benefitting from the FIFA World
Cup. In the UK, RevPAR was up 1.1% (London up 3.6%, Provinces
down 0.4%), with strong demand in London from leisure guests and
the biennial air show, offsetting softer occupancy in the
Provinces. Elsewhere, there was a low single digit RevPAR
decline in the Middle East and Australia, with both markets
impacted by new supply, whilst Japan, up 2.5%, benefitted from rate
growth in key cities.
Greater China
RevPAR was up 4.8% in Q3 and 8.2% Q3 YTD. Mainland China
growth of 4.5% was driven by continued transient and corporate
demand, but as expected was lower than H1 levels, due to the strong
comparables which commenced in Q3 2017. There was mid-single digit
RevPAR growth in tier 1 and tier 2 cities and a slight decline in
tier 3 and tier 4 cities which was driven by new supply in Sanya
and difficult trading conditions in Changbaishan; excluding these
locations, tier 3 and tier 4 cities also saw mid-single digit
RevPAR growth. Hong Kong SAR was up 5.2% and Macau SAR up 3.8%,
both driven by gains in rate.
1 RevPAR
growth is at constant exchange rates (CER) unless otherwise
stated
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Update on strategic initiatives
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Build and leverage scale
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Net
system size up 5.1% year on year to 826k rooms (5,518 hotels), up
4.6% excluding Regent Hotels & Resorts and the UK portfolio
deal.
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19k
rooms opened in the quarter, up 70% on the prior year, and our best
Q3 performance in 10 years. This includes the rooms
associated with Regent Hotels & Resorts (2.0k rooms) and the UK
portfolio deal (1.7k rooms, with a further 0.5k to be added), which
completed in the quarter. Our portfolio in Greater China continues
to expand at pace, with 17% net system size growth year on
year.
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27k
rooms signed, our highest Q3 rooms signings since 2008, and with
Greater China on track to have its best ever full year performance
in 2018.
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Pipeline
now stands at 267k rooms.
Optimise our preferred portfolio of brands for owners and
guests
- avid
hotels: first property opened for the brand in Oklahoma City, with
a further 25 hotels (2.4k rooms) signed in Q3, taking the total
Americas pipeline to 150 hotels. Last week we announced the
launch of the brand in Europe, signing a Multiple Development
Agreement with one owner to open 15 hotels in Germany over the next
5 years, the first by 2020.
- voco:
first property expected to open in Australia later this year; with
six signings to date in addition to the four properties that will
rebrand as part of the UK portfolio deal, we are on track for more
than fifteen signings in total for the brand by year end, ahead of
our initial expectations.
- Regent
Hotels & Resorts: 51% acquisition completed in July, adding 6
properties to our system and 2 to our pipeline. A relaunch of the
brand was announced this week together with the first signing since
the acquisition, Regent Kuala Lumpur, with numerous further
sites under discussion.
- Kimpton
Hotels & Restaurants: international expansion continues at
pace, with the Kimpton Fitzroy due to open in London in the coming
weeks, and further signings in Q3, including sites in Bangkok,
Barcelona and Tokyo, taking the brand's global presence to 14
countries.
Enhance revenue delivery
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Roll
out of GRS and IHG Concerto is substantially complete, ahead of
schedule and on budget.
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>95%
of hotels have successfully migrated to the platform with the
remaining hotels scheduled to migrate over the coming
weeks.
Superior returns for shareholders and owners
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$500m
will be returned to shareholders via a special dividend with share
consolidation to be paid in Q1 2019, subject to shareholder
approval*.
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This
will bring the total returns IHG has made to shareholders since
2003 to $13.5bn.
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We
remain on track to deliver ~$125m in annual savings from our
reorganisation plan, including System Fund, by 2020 for
reinvestment to drive growth.
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Exceptional
cash cost to achieve the savings remains unchanged at $200m; $48m
in H1'18 ($31m in 2017), with ~$70m expected in H2'18 and the
remainder in 2019.
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The
financial position of the group remains robust, with an on-going
commitment to an efficient balance sheet and an investment grade
credit rating.
*Further
details regarding the General Meeting required to approve the share
consolidation and the timing of the dividend payment will be
released in due course.
The strengthening of the US dollar against many major currencies
globally decreased group RevPAR to a 0.1% decline in the quarter,
when reported at actual exchange rates. A breakdown of constant vs.
actual currency RevPAR is set out in Appendix 2.
Appendix 1: Third quarter RevPAR movement summary
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Q3 2018
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RevPAR
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Rate
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Occ.
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Group
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1.0%
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1.7%
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(0.7)%
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Americas
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0.0%
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1.4%
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(1.4)%
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EMEAA
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2.5%
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2.2%
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0.3%
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G.
China
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4.8%
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3.6%
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1.2%
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Appendix 2: RevPAR at constant exchange rates (CER) vs. actual
exchange rates (AER)
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Q3 2018
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CER
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AER
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Difference
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Group
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1.0%
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(0.1)%
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(1.2)%pts
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Americas
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0.0%
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(0.7)%
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(0.6)%pts
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EMEAA
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2.5%
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0.2%
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(2.2)%pts
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G.
China
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4.8%
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3.0%
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(1.8)%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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18,648
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(2,791)
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15,857
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825,746
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5.1%
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27,491
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267,235
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Americas
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5,670
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(1,621)
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4,049
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505,325
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2.7%
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10,501
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117,977
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EMEAA
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4,339
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(329)
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4,010
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205,829
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5.5%
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9,938
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72,101
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G.
China
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8,639
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(841)
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7,798
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114,592
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16.6%
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7,052
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77,157
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Appendix 4: Definitions
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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:
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Investor
Relations (Catherine Dolton; Matthew Kay)
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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
19thOctober
and can be accessed at https://www.ihgplc.com/investors/2018-third-quarter-trading-update-teleconference-details.
There will be an opportunity to ask questions:
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UK:
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+44 (0)
203 936 2999
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US:
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+1 845
709 8568
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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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199
747
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A recording of the conference call will be available for 7 days
from 11.30am London time; details are below:
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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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028
707
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Website:
The full release and supplementary data will be available on our
website from 7:00am (London time) on 19th 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 Regent
Hotels & Resorts, InterContinental® Hotels
& Resorts, Kimpton® Hotels
& Restaurants, Hotel
Indigo®, EVEN® Hotels, HUALUXE® Hotels
and Resorts, Crowne
Plaza® Hotels
& Resorts, voco™, Holiday
Inn®, Holiday
Inn Express®, Holiday
Inn Club Vacations®, Holiday
Inn Resort®, avid® hotels, Staybridge
Suites® and Candlewood
Suites®.
IHG franchises, leases, manages or owns more than 5,500 hotels and
approximately 826,000 guest rooms in almost 100 countries, with
more than 1,800 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 375,000 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: www.twitter.com/ihg, www.facebook.com/ihg and www.youtube.com/ihgplc.
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/ 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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19 October 2018
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