How we win - InterContinental Hotels Group PLC · Our business model and revenue delivery systems and How we win 11. Brands Bigger, better and stronger brands. ... Hotel Indigo London-Tower

How we win

At IHG, we’re focussed on winning through our strong portfolio of nine hotel Brands, our talented People who deliver our brand promise and bring our Brands to life for our guests, and our best-in-class Delivery systems that enable us to leverage our scale. At the heart of our culture is a commitment to act responsibly in everything we do.

Hotel Indigo atlanta midtown, us

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Our business model and revenue delivery systems and How we win 11

Brands

Bigger, better and stronger brands. Each of our brands needs to deliver a superior and consistent experience to that offered by competitors. Guests value a quality, branded hotel experience and will pay a premium price. Superior and consistent brand experiences deliver a better return on investment to us and to our owners who choose to operate under our brands.

“A brand is a promise. It says: ‘I promise that if you buy this brand, you will get this experience.’ And that is what we have to consistently deliver.”

Larry Light Chief Brands Officer

TopleftHotelIndigoShanghaiontheBund,China

ToprightCrownePlazaChangiAirport,Singapore

BottomrightHotelIndigoLondon-TowerHill,UK

12 IHG Annual Review and Summary Financial Statement 2012

IHG’spriorityisthateachofourbrandsbecomesbigger,betterandstronger.

Bigger

ThemajorengineforasustainablegrowthinprofitshasbeenourSystemsize.Sizematters.

Thereiscompetitiveadvantagetobeingbig.Wehavemoreroomsinmorelocationsandoperationallythereareeconomiesofscale.Itmakesusmoreefficient.Therearealso‘powerofscale’opportunitiestobemoreeffective.Ourbest-in-classDeliverysystemsmeanthatwecantrynewthings.Iftheywork,wecanexpandthem.

Furthermore,sizeenablesustodevelopareasofspecialistexpertise–forexample,wehavesituatedourglobalresortsteaminBangkok,whichisattheheartofagreatresortlocation,tofurtherdevelopourresortsstrategy.

Inordertogeneratemoreeffectiveness,consistencyandefficiencyfromourmarketing,wewillbestreamliningourprocessestoensurebetterintegrationofglobalbrandplansworldwide.

Better

Itisvitalthatwecontinuallyrevieweverythingwedoinordertoimprove–wecanalwaysdobetter.Thisincludesimprovingtheconsistentdeliveryofourguestexperience,differentiatingandinnovatingourBrands,addressingguestcomplaints,managingourtalentedPeopleandrelationshipswithowners,andunderstandingaguest’sneeds,wants,concernsandworries.

Thisisakeyareaoffocus.

OurBrandsregularlywinindustryawardsinguestsatisfaction,andtheseawardsprovideexternalrecognitionthatweunderstandhowtodeliverGreatHotelsGuestsLove.

Stronger

Bystronger,wemeanbrandpreference–amongguestsandowners,investorsandemployees.ItisamajorstrategicpriorityforIHG.

Strongbrandshaveahugeadvantage.Asbrandpreferencegoesup,pricesensitivitygoesdown.Brandenthusiaststhinkitisworthpayingapremiumfortheirfirstchoicebrand.Theirwillingnesstorecommendandtheirbrandloyaltyincreaseaswegivethemreasonstobelieveinourbrandpromise.

Building brand preference

Weareundertakingsomesignificantworktohelpusbuildbrandpreference.Withourgoalofbuildingbigger,betterandstrongerbrands,tokeepthemcontemporaryandrelevant,weareimprovingourknowledgeofourguests.Wewillbedoingthisthroughmarketsegmentation.Classifyingourbrandsinconventionalindustrytermssuchasupperupscalemeansnothingtoguests.Upperupscaleorthenuancebetweenalimited-servicehotelandaselect-servicehotelarecategoriesthatguestsdon’tbuy.

Needsareoccasion-based.Andthesevaryenormously.Doyouhavechildrenwithyou?Areyouplanningawedding?Isthisabusinesstrip?Isitaweekdayortheweekend?We’vecompletedafundamentaloccasion-basedneedssegmentationanalysistogiveusabetterguest’seyeviewandexpectationofthehotelandresortmarket.

Goingforward,wewillusethisworktoinformourbrandstrategies.

Wewillcontinuetoclarifyanddifferentiateourvisionforeachofourbrandstodeliverbetterresultsthroughmoreeffectivecustomisation,localisationandevenpersonalisationofthebrandswithinIHG’sstrongportfolio.

We’vebeenestablishingbrandframeworksforeachofourhotelbrandstofurtherdefinetheirstrategicdirection,brandpromise,guidingprinciples,brandidentity,designandserviceguidelines.

Unlikepackagedgoods,ourbrandedexperiencesarenotmanufacturedinafactory.Ourbrandedexperiencesarebroughttolifeinthehotel.Whatguestsactuallyexperienceistheonlyrelevantreality–andbrandpreferenceiscreatedoneguestatatime,ineachhotel,eachday,face-to-face.ThismeansthattheultimatebrandmanageristhehotelGeneralManager.Therefore,weareinvestingresourcestoensurethatourGeneralManagerscandeliverourbrandpromise.

OurstrongportfolioofpreferredBrandsarekeytoIHG’ssuccess.In2013,wewillcontinuetoinnovateanddevelopourestablishedandnewhotelbrandstomeettheevolvingneedsofourguests,aswellascreatevalueforourownersandshareholders.

InterContinentalHotels&Resorts page14HolidayInnbrandfamily page16CrownePlazaHotels&Resorts page20HotelIndigo page22StaybridgeSuites page24CandlewoodSuites page26HUALUXEHotels&Resorts page28EVENHotels page29

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Brands 13

InterContinentalHotels&Resorts’well-travelled,affluentguestswanttobeconnectedtowhatisspecialaboutadestinationandappreciatethebrand’sunderstatedserviceandstyle.Everyteammembersharestheirknowledgesothatguestscanenjoyauthenticexperiencesandmakethemostoftheirtimewithus.

Opening our doors since 1946

In2012,weopenedsixmoreworld-classpropertiesinkeylocations.Ofthese,wecelebratedthreefantasticadditionstoourresortsportfolio,furthercementingInterContinentalHotels&Resortsasoneoftheworld’smostrespectedluxuryhotelbrands.ThesewereInterContinentalSamuiBaanTalingNgamResortinThailand,InterContinentalDanangSunPeninsulaResortinVietnamandInterContinentalSanctuaryCoveResortinAustralia.ThelatterisIHG’sfirst

InterContinentalResortinAustralia,andjoinsournetworkofInterContinentalhotelsintheAustralasiaregion,includingSydney,Melbourne,Adelaide,WellingtonandFiji.

Addingtoourcityportfolio,weopenedInterContinentalDoha-TheCityandPresidenteInterContinentalSantaFeMexico.WealsoopenedInterContinentalLondon-WestminsterinNovember2012inasuperblyrenovated19thcenturylandmarkbuildingclosetomanyofLondon’smosticonicsites.ThisnewhotelensuresIHG’scontinuedpresenceinoneoftheworld’skeycities.

Wealsoannounced10signingsincludingpropertiesinJakartaandOman.ThesigningoftheInterContinentalPhuketRawaiBeachResortmarksourthirdInterContinentalResortinThailand.

Lookingforwardto2013,wearepreparingtocuttheribbonat12InterContinentalHotels&ResortsincludingInterContinentalDavosResort&SpainSwitzerlandandInterContinentalMarseille-HotelDieuinFrance.

Focus on global brand marketing

In2012,westrengthenedourintegratedglobalmarketingactivity.Firstly,welaunchedanewbrandwebsite.Usersofintercontinental.comcannowexploreInterContinentalHotels&Resortspropertiesviafilterslikelocation,interestorhoteltype.Secondly,welaunchedtwonewglobalbrandadvertisingcampaigns.ThefirsthighlightedournewresortsinAsia,andthesecondpromotedourindustry-leadingConciergeService,featuringourChefConciergesfromkeycityhotelssharingauthenticexperiencesoftheirfavouriteplaces.

InterContinental® Hotels & ResortsInterContinental® Hotels & Resorts is IHG’s most established brand, having been on the international scene for over 60 years. With a presence in over 60 countries, found in most of the world’s key cities and many resort locations, the brand is growing at pace and continues to expand around the globe.


The scent of luxury

WearedelightedtohavelaunchedourexclusiveglobalcollaborationwithAgraria,America’soldestandlargestluxuryhomefragrancebrand,toprovideguestamenitiestoallofourInterContinentalHotels&Resortsaroundtheworld.AgrariahasasharedheritagewithInterContinentalHotels&Resortsdatingbacktothe1970s,whenitopeneditsfirstboutiqueonNobHillinSanFrancisco,nearInterContinentalMarkHopkinsSanFrancisco,thebrand’sfirsthotelinNorthAmerica.Agrariaproductscannowbefoundatthefinestretailstoresaroundtheworld.

Awards

InterContinentalHotels&Resortscontinuestoberecognisedasoneoftheworld’sleadinghotelbrands.Atthe2012WorldTravelAwards,InterContinentalHotels&ResortswasnamedtheWorld’sLeadingHotelBrandforthefourthconsecutiveyear,aswellastheWorld’sLeadingBusinessHotelBrandforthesecondyearrunning.ThebrandwasalsoawardedBestBusinessHotelBrandintheWorldatthe2012BusinessTravellerAwardsAsia-Pacificforthethirdyearrunning.

intercontinental.com

FarleftInterContinentalDanangSunPeninsulaResort,Vietnam

RightInterContinentalDoha-TheCity,Qatar

TopfarrightInterContinentalLondon-Westminster,UK

BottomfarrightInterContinentalHotels&Resortsadvertisingcampaign

HotelsinRegion Hotels Rooms pipeline

Americas 53 17,756 4

Europe 30 9,394 2

AMEA 65 20,791 20

GreaterChina 22 9,373 22

Total 170 57,314 48

‘ Every team member shares their knowledge so that guests can enjoy authentic experiences and make the most of their time with us.’

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InterContinental Hotels & Resorts 15

EachofthebrandsintheHolidayInnbrandfamilysharethesameDNAastheirpowerfulparentbrand–HolidayInn.However,eachoneisdistinctive,hasitsownidentity,andappealstodifferentguestneedsondifferenttraveloccasions.

TheHolidayInnbrandfamilyhostsover100millionguestnightseachyear.Thatmeanseverysecond,twopeoplecheck-intoaHolidayInnbrandfamilyhotel.

Holiday Inn®

ManyofthethingswenowtakeforgrantedinhotelstodaywererevolutionarywhentheHolidayInnbrandfirstlaunchedthemoverthelast60years.Ourguestsappreciateinnovation,buttheyalsowanttobecomfortable,bothemotionallyandphysically,andthat’swhatmakestheHolidayInnbranddifferent.TheHolidayInnbrandpromiseistodelivercomfortinawaythatisnew,yetfamiliar.

Holiday Inn Express®

Ourhotelsaredesignedwithsavvytravellersinmind.Theywantastraightforward,uncomplicatedexperience,deliveredinanengagingmanner.Ahotelthatprovidesthemwithjustwhattheyneed,enablingthemtomanagetheirmoneywiselyandstaysmart.

Holiday Inn Resort®

TheHolidayInnResortbrandoffersaneffortlesschoiceforarelaxingbreak.Timeawayisimportanttoourguestssotheydon’twanttoworryabouteverylittledetailwhengoingonholiday.Theywanttorelaxinanenvironmentthatissafeandinviting,whereeveryonehasactivitiestheyenjoyandtheydiscoverindulgenttouchesalongtheway.

Holiday Inn Club Vacations®

OurHolidayInnClubVacationsbrandprovidesguestswithallofthebenefitsofavacationhomewithnoneofthehassle.Whilestayingwithustheydon’thavetocompromiseonspaceortheirdailyroutines.

Holiday Inn brand family The Holiday Inn brand family, comprising Holiday Inn®, Holiday Inn Express®, Holiday Inn Resort® and Holiday Inn Club Vacations®, represents the largest number of rooms and fee revenue for IHG. And as part of our 60th anniversary celebration in 2012, we clarified the vision for each of the members of the family – ensuring we make them ever more relevant for today’s and tomorrow’s travellers.


Holiday Inn

Celebrating60yearsaroundtheworld2012markedthe60thanniversaryoftheiconicHolidayInnbrand,coincidingwiththeendofits$1billionglobalbrandrefresh,theresultsofwhichhaveseenthebrand’sperformancegofromstrengthtostrength.Aswellascelebratingbeing60weopenedour60thhotelinGreaterChina.

TheHolidayInnbrandwasalsoranked‘HighestinGuestSatisfactionAmongMidscaleFullServiceHotelChains,TwoYearsinaRow’byJ.D.PowerandAssociates(seepage60).

AwinningyearAsofficialhotelprovidertotheLondon2012OlympicandParalympicGames,thespotlightwasalsoontheHolidayInnbrandthroughouttheyear.

TheJune2012openingofthe188-roomHolidayInnLondon-StratfordCityoverlookingtheOlympicParkwasoneofthebrand’smostnotableopeningsduringtheyear.

IntheOlympicandParalympicVillageitself,morethan90HolidayInnteammembersfromaroundtheworldweregiventheopportunitytohelpdeliverworld-classserviceforathletes.HotelandcorporateofficerepresentativeswereflowninfromChina,thePhilippines,theUS,Australia,Kenya,Serbia,aswellastheUKforthisonce-in-a-lifetimeopportunity.

ThesponsorshipoftheOlympicandParalympicGameshasprovidedexcitingmomentumfortheHolidayInnbrandwithover50percentofHolidayInnguestswhosawthesponsorshipcampaignsayingtheyaremorelikelytostaywithusagain.

holidayinn.com

hiexpress.com

hiclubvacations.com

holidayinnresorts.com

FarleftHolidayInnSaskatoonDowntown,Canada

BelowHolidayInnLondon-StratfordCity,UK

Holiday Inn HotelsinRegion Hotels Rooms pipeline

Americas 793 138,720 134

Europe 285 46,248 20

AMEA 61 14,129 43


Total 1,200 218,981 231

‘ Our guests appreciate innovation, but they also want to be comfortable, both emotionally and physically – and that’s what makes the Holiday Inn brand different.’

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Holiday Inn brand family 17

Holiday Inn Express

GrowingatpaceHolidayInnExpressisoneofthelargestandfastestgrowingbrandsintheindustry,openinghotelsattherateoftwoperweekonaverage.

Thebrandsawtheopeningof114newpropertiesin2012.Therearecurrently2,192HolidayInnExpresshotels(205,631rooms)aroundtheworld.

TheHolidayInnExpressBangkokSiaminThailandlaunchedinJune2012andrepresentsthebrand’sfirstforayintoSoutheastAsia,aregionwithhugepotential.OurexpansionplansincludefurtherpropertiesinThailand,Indonesia,SingaporeandMalaysiaoverthenextfewyears.Indonesiaisaparticularlyimportantgrowthmarketforus.Therearecurrently18hotelsintheHolidayInnExpresspipelinescheduledtoopenoverthenexttwoyearsinSoutheastAsia,ofwhich12willbeinIndonesia.

ThebrandisalsocontinuingtoexpandacrossthebroaderAsiaregion,includinginGreaterChinaandIndia.TheHolidayInnExpressAhmedabadopenedinIndiaasacountryfirstforthebrand.

IntheMiddleEast,thelaunchofHolidayInnExpressBahraininAugust2012markedourdebutintheGulfstate.

DistinctiveserviceAspartofIHG’sdrivetoincreasethedifferentiationbetweentheHolidayInnandHolidayInnExpressbrands,wehavebeendevelopingnewbrand-specificservicebehavioursforHolidayInnExpress.

Anumberofhotelsineachofourregionswereinvolvedinthevalidationprocessforthenewservicebehaviours,anddevelopmentworkbeganontrainingprogrammesthatwillbedeliveredthroughaneLearningplatform.Theseprogrammeswillberolledoutin2013.

Holiday Inn Express HotelsinRegion Hotels Rooms pipeline

Americas 1,931 168,398 345

Europe 212 24,903 43

AMEA 12 2,877 35


Total 2,192 205,631 452


Holiday Inn Resort

MoreplacestorelaxTheguestswhochoosetheHolidayInnResortbrandworkhard,butalsowanttoleadabalancedlife.

Thatiswhywecontinuetogrowandgivethemmoreplacestorelax.

ThebrandhadagreatyearinTheAmericas,supportedbybrand-specificmarketingcampaigns.FourpropertiesopenedinTheAmericasin2012,includingtwoinOregon,bringingthetotalnumberofpropertiesto17.Fivemoreareinthepipeline,includingresortsintheCaymanIslands,MexicoandFlorida,aswellasfurtherexpansionplannedinCalifornia.

WealsosawourthirdHolidayInnResortopeninginGreaterChinawiththeHolidayInnResortChaohuHotSpring.

Intotalin2012,weopenedsevenHolidayInnResortpropertiesaroundtheworld.

Holiday Inn Club Vacations

MorevacationoptionsThetremendousstrengthoftheHolidayInnbrandcontinuestofuelexpansionofHolidayInnClubVacationsinNorthAmerica.

ThenumberofHolidayInnClubVacationspropertieshavemorethandoubledsinceitslaunchyearin2008,expandingtheportfolioin2012to10propertieswiththeopeningofthreenewresorts,includinganew658-roomresortinLasVegas.

FarleftHolidayInnExpressBangkokSiam,ThailandLeftHolidayInnResortKandoomaMaldives

Holiday Inn Resort HotelsinRegion Hotels Rooms pipeline

Americas 17 4,240 5

Europe 3 362 0

AMEA 14 3,311 4

GreaterChina 3 893 3

Total 37 8,806 12

Holiday Inn Club Vacations HotelsinRegion Hotels Rooms pipeline

Americas 10 3,701 0

Europe 0 0 0

AMEA 0 0 0

GreaterChina 0 0 0

Total 10 3,701 0

‘ Our expansion plans include further properties in Thailand, Indonesia, Singapore and Malaysia over the next few years. Indonesia is a particularly important growth market for us.’

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Holiday Inn brand family 19

Strengthening the brand

Havingdoubleditssizeinadecadetonearly400hotels.IHGisnowensuringthateachCrownePlazahotelmeetsourstandardsandourguests’highexpectations.

TherepositioningremainsatoppriorityforIHGandtheIHGOwnersAssociation,andmomentumcontinuestobuild.TherepositioningoftheCrownePlazabrandisathree-phase,multi-yearrepositioningprogramme.

Aspartofthe‘FreshenUp’phase,ownershaveinvestedinnewprogrammes,includinganewbrand-specificservicetrainingprogrammethatensuresourguestsreceivethesamequalityserviceandattentionateveryCrownePlazahotelworldwide.BringingthebrandtolifethroughourPeopleandbeingonestepaheadiswhattrulysetsusapartfromourcompetitors.The‘OneStepAhead’programmeenablesemployeestoanticipatetheneedsofguestsandprovidesqualityacrossallofourhotels.

Inaddition,qualityauditshavebeencarriedoutatalmostallCrownePlazahotelsinTheAmericasandEurope.Wheredeficiencieshavebeenidentified,actionisbeingtakentorectifythemandsub-standardhotelsareexitingfromourSystem.

Nextcomesthe‘MoveUp’phase,wherethefocuswillbeonensuringconsistencyandevolutionoftheguestexperience,anddrivingbrandperformancethroughmarketingandsales.

The‘Shine’phasewillintroducenewbrandhallmarks,whichwillsettheCrownePlazabrandapartfromourcompetitors.Thisphaseisnotsomethingwe’llstartandstop;wemustcontinuetoinnovateanddifferentiatetheguestexperienceinordertomakethebrandshineeachandeveryday.

Growing in China

In2012,theopeningofeightnewCrownePlazahotelsinGreaterChinabroughtourtotalto60.Withexisting

locationsinmajorurbancentres,gatewaycitiesandresortdestinations,theCrownePlazabrandisnowGreaterChina’slargestupscaleinternationalhotelbrand.

Morethanhalfofthebrand’sglobaldevelopmentpipeline(52hotels)willopeninGreaterChinainthenextthreetofiveyears,furtherproofthatthebrandisgrowingbiggerinthisregion.

InSeptember2012,weopenedHongKong’ssecondCrownePlazahotel,CrownePlazaHongKongKowloonEast,whichisattheheartoftheemergingcommercialandresidentialTseungKwanOtowncentre.

IntheAMEAregion,weopenedtworesortsin2012:theCrownePlazaPhuketPanwaBeachResortinThailandandtheCrownePlazaJordanDeadSeaResort&Spa.

Crowne Plaza® Hotels & ResortsThe Crowne Plaza® brand is the fourth largest full-service hotel brand in the upper segments, with nearly 400 hotels and resorts in 66 countries. It continues to succeed with business travellers who are high achievers that strive to be successful in everything they do. The Crowne Plaza brand provides the facilities and service they need to help them on their upward journey.


Americas 183 48,730 16

Europe 84 19,566 12

AMEA 65 18,559 18


Total 392 108,307 98


Checking-in to sustainability

TheCrownePlazabrandisdeliveringabetterandmoresustainablefuturethankstoIHG’sGreenEngageprogramme.

During2012,GreenEngagewasrolledouttotheCrownePlazabrand.Theprogrammenotonlyhelpsthehotelrunmoreefficiently–energysavingsofupto25percenthavebeenachieved–butalsomakesthebrandmoreattractivetocorporatecustomerswhoareincreasinglyrequiringhotelstobegreen.

Hotelshavereplacedeverythingfromlightbulbstowaterheaterswithlessenergyintensivealternatives,ensuringthatthebrandstandsoutstronglyamidstcompetitorsinenvironmentally-friendlyefficiency.

GreenEngage,ouronlinesustainabilityplatform,helpshotelstrack,manageandreducetheuseofenergy,carbonandwaterandthemanagementofwasteinhotelproperties,therebyassistinghotelsinsavingmoneyonenergycosts.

crowneplaza.com

FarleftCrownePlazaHongKongKowloonEast

LeftCrownePlazaDublin-Blanchardstown,Ireland

BelowCrownePlazaChangiAirport,Singapore

‘ More than half of the brand’s global development pipeline (52 hotels) will open in Greater China in the next three to five years, further proof that the brand is growing bigger in this region.’

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Crowne Plaza Hotels & Resorts 21

Reaching the 50th hotel milestone

As‘theworld’sfirstglobalboutiquehotelbrand’,IHGopened13newHotelIndigopropertiesduring2012:sixinTheAmericas,fiveinEuropeandtwoinGreaterChina.

InDecember2012,theHotelIndigobrandreachedits50thhotelmilestonesinceitslaunchin2004withtheopeningsofHotelIndigoLondonKensington-Earl’sCourtandHotelIndigoNewOrleansGardenDistrict.

Theroll-outofthebrandinEuropeisgatheringpace,with10newhotelssinceitwasintroducedintheregionin2008.In2012,thefirstHotelIndigopropertyinContinentalEuropelaunchedinKurfuerstendamm,BerlininFebruary,andtheoverallnumberofthehotelsinEuropedoubledtoatotalof10.

Thepipelineincludesplannedopeningsin2013inotherkeyEuropeancities,includingSt.Petersburg,MadridandBarcelona,withBirmingham,ManchesterandHamburgtofollow.

Focusing on quality growth

Withastrongglobalappetiteforthebrand,IHG’sfocusisonqualitygrowthinprioritymarketsandgatewaycities.Thiswillbeachievedtogetherwiththerightownerandpropertythat’ssituatedintherightneighbourhoodwithresidential,commercial,pedestrianandculturalrepresentation.Thepipelinecurrentlystandsat47hotels,withtheestatesettodoubleinsizeto100withinthenextthreetofiveyears.Otherexpectedopeningsin2013and2014includeinRiyadh,TelAviv,HongKong,Bangkok,PhuketandNewYorkCity.

Making the most of the neighbourhood

NotwoHotelIndigohotelsarethesame.Eachisspecificallydesignedtoreflectthevibrantculture,characterandhistoryofitssurroundingneighbourhood,whichincludeslocalfoodanddrinkmenussourcedfromlocalsuppliers.

Closelinkswiththeneighbourhoodarefundamentaltothebrand.Therefore,wehavelaunchedaseriesofinteractive,online‘NeighbourhoodGuides’thatfeatureacollectionofhyper-localrecommendationsofthingstosee,do,taste,drink,hearandbuyneartothehotel.

Hotel Indigo®

IHG has always been clear about who the guests of the Hotel Indigo® brand are, and what they want. They are upscale and well-travelled. They appreciate art and design, the latest fashion and new experiences. They are looking for the individuality and style of a boutique hotel, but also want the reliability and consistency of a big brand company.


Award-winning

Wecontinuetowinawards–HotelIndigoShanghaiontheBundwasnamedBestBoutiqueHotelinAsia-Pacificatthe2012BusinessTravellerAsia-PacificAwards,arealachievement,andHotelIndigoSanDiegoGaslampQuarterfeaturedasoneoftheTop25HotelsinSouthernCaliforniaintheCondéNast2012Readers’ChoiceAwards.

hotelindigo.com

FarleftHotelIndigoLondonKensington-Earl’sCourt,UK

BelowleftHotelIndigoSanDiegoDelMar,US

BelowrightHotelIndigoTianjinHaihe,China


Americas 37 4,307 23

Europe 10 949 13

AMEA 0 0 6

GreaterChina 3 405 5

Total 50 5,661 47

‘ In 2012, the first Hotel Indigo property in Continental Europe launched in Kurfuerstendamm, Berlin in February, and the overall number of the hotels in Europe doubled to a total of 10.’

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Hotel Indigo 23

Staybridge Suites®

An extended time away from home for business, relocation or holiday should provide travellers with a warm and welcoming environment and the modern comforts of home-like surroundings. This is why travellers choose the Staybridge Suites® brand.

AtStaybridgeSuiteshotels,IHGprovidesupscaletravellerswiththebestofhomeandhotel,allinacomfortableenvironmentwithspaciousstudiosandtwo-bedroomsuites.

With11openingsduring2012,therearenow189StaybridgeSuiteshotelsinTheAmericas,EuropeandAMEAwithanother71inthepipeline.

NotableopeningsfortheStaybridgeSuitesbrandduringtheyearincludedinStratfordCity,LondonintheUK,Hamilton,OntarioinCanadaandNorthBrunswick,NewJerseyintheUS.

Colour and conviviality

Aspartofamulti-milliondollarrenovationprogrammewithownerHospitalityPropertiesTrust,17StaybridgeSuiteshotelsmanagedbyIHGwereextensivelyrenovatedduring2012,withrenovationsattwomorehotelstocome.Usingdistinctiverangesofcolours,patternsandtextures,theenvironmentofthesepropertiesismoreappealingthanever.

Includedintherenovationswereallareasofthehotel,fromthesuitestothepublicspacesandoutdoorareas.Renovationsinsocialareas,suchastheGreatRoom,encompassedtheadditionsoftheGatheringTableandmorecomfortableseating,whicharecentraltothebrand’sconceptofprovidingspaceswhereguestscansocialisewitheachother,especiallyduringbreakfastandTheSocialeveningreception.

TheOutdoorLivingRoom,anotherStaybridgeSuitesfeature,wasalsorenovatedwithall-weatherfurnitureandfirepits,enhancingthecommunityfeelofeachhotel.

Afurtherenhancementin2012wasthelaunchoftheStaybridgeSuitesBeddingCollectionforallpropertiesinNorthAmerica.Thenewbeddingoffersamoremodernisedlook,anelevatedguestperceptionandincreasedcomfort.


staybridgesuites.com

FromfarlefttorightStaybridgeSuitesReno,Nevada,US

StaybridgeSuitesNewcastle,UK

TheSocial,theeveningreceptionatStaybridgeSuites

TheGreatRoomatStaybridgeSuitesTylerUniversityArea,Texas,US


Americas 183 19,787 64

Europe 4 605 1

AMEA 2 304 6

GreaterChina 0 0 0

Total 189 20,696 71

Socialising at Staybridge Suites hotels

WhilegueststendtotheirownschedulesduringanextendedstayatStaybridgeSuiteshotels,therearetimeswhentheywanttoleavetheirsuitesandsocialisewiththeircolleaguesorotherguests.Tofacilitatethis,thebrandhasaneveningreception,TheSocial,whichisheldineveryhotelthreetimesaweekandprovidescomplimentaryfoodanddrinkinthepublicareas–insideandout.Guestscanrelaxinsettingsthatincorporatestackedstonefireplaces,high-definitiontelevisionsandlandscapedgardens,whilemeetingotherStaybridgeSuitesguests.In2012,theStaybridgeSuitesbrandenhancedTheSocialwithnewfoodandbeverageofferingsincludinghealthier,customisableoptions.TheseenhancementswerelaunchedatallhotelsinNorthAmerica.Asaresultguestparticipationandoverallsatisfactionhaveincreasedacrossthebrand.

Engaging through social media

Guestsstayinginhotelsforweeksorevenmonthsatatimeoftenfacechallengeswhileawayfromhome.Inanefforttohelpmakethiseasierforourguests,theStaybridgeSuitesbrandlaunchedacampaignin2012toprovideusefultips,tricksandhintssoguestscouldmaster‘TheArtofTravelingSolo’.Theglobalcampaign,whichfeaturedcelebritychefandtelevisionpersonalityG.Garvin,includedaninteractiveFacebookapplicationwithvideosandhelpfulsuggestions.ConsumersengagedwiththecampaignduringliveFacebookandTwitterchats,sharingtheirowntipsontopicsincludinghowtomakeaquick,tastymealinahotelsuitekitchenandhowtopackforanextendedtrip.

Gold standard

InJune2012–wellintimefortheLondon2012OlympicandParalympicGames–weopenedStaybridgeSuitesLondon-StratfordCity.StepsawayfromtheOlympicPark,thehotelisalsoatthecoreofEurope’slargesturbanshoppingcentre.

It’salocationwithimmediateappealforbusinessandleisuretravellers.PublictransportlinksconnectStratfordtotheCityofLondonandalloftheattractionsofLondon’sWestEndinamatterofminutes.

Co-locatedwiththenewHolidayInnLondon-StratfordCity,thisnewStaybridgeSuiteshoteltakesroomsforthebrandto422intheUK.

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Staybridge Suites 25

CandlewoodSuiteshotels’fully-equippedstudiosandone-bedroomsuitesoffermorespaceforgueststostretchoutandrelaxandprovideindependenceandprivacy,withon-siteamenitiesandservicesalwaysavailableasneeded.

Higher guest satisfaction, higher returns

In2012weopened12newhotels,includingtheCandlewoodSuitesinNorthLittleRock,Arkansas;SanDiego,California;andFredericksburg,Virginia.Thereforewenowhavenearly300CandlewoodSuiteshotelsinTheAmericaswith78inthepipeline.Aspartofamulti-milliondollarrenovationprogrammewithowner,HospitalityPropertiesTrust,59CandlewoodSuiteshotelsmanagedbyIHGwereextensivelyrenovatedduring2012,withtwomorehotelstocompleterenovationsin2013.

TheimprovementsincludednewkitchenandbathroomdesignscreatedinconjunctionwithgraduatestudentsatoneofNorthAmerica’stopinteriordesignschools.ThethemethroughoutisbasedontheconceptofaCandlewoodSuiteshotelasa‘haven’.

Withattractivelighting,naturalcolourpalettes,strikingartwork,flatscreentelevisionsandstorageprovisions,therenovatedsuites,aswellastherenovatedlobbyareasandfacades,aremoreappealingthanevertoguestswhomightspendweeksorevenmonthswithus.

Duringtheyearwealsorefreshedandmodernisedthebrand’sComfortsofHome™BeddingCollection.Thisisdrivingsatisfactionwithourguestsandcontributingtoamorecomfortable,home-likestay.

Withthesenewinitiatives,webelieveoverallsatisfactionwillincreaseandthebrandiswell-positionedtoachieveupliftinaveragedailyratesandRevPAR.

Where the heart is

Greathostshaveprideandpassionintheirpremisesandtheserviceandexperiencetheyoffer.AtCandlewoodSuiteshotels,whereguestsmaystayformonthsatatime,theguestexperienceiscrucialtooursuccess.ThatiswhyweinitiatedtheBrandHeartedServiceTrainingprogrammeinAugust2012.

ThisongoingprogrammeprovidesservicetrainingtohelptoenableteammembersateverylevelofthehoteltobringthebrandtolifeandconsistentlydeliveraBrandHeartedguestexperiencetosetusapartfromourcompetitors.

Successwillbemeasuredintermsofimprovementstoguestsatisfaction,marketshareandrevenue.

Candlewood Suites®

North American-based Candlewood Suites® brand is IHG’s midscale extended stay brand, where guests turn for all the comforts and conveniences of home when, for whatever reasons, home is temporarily left behind.


Americas 299 28,675 78

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Total 299 28,675 78


Encouraging guests to feel free

AtrustsystemhasalwaysprevailedatCandlewoodSuiteshotels.

TheCandlewoodCupboard®haslongbeenaconvenientplaceforgueststofeelfreetostockuponessentialsaswellastreats.Asanintegralpartofourhome-likehotel,allsnacks,easytopreparemeals,beveragesandnon-fooditemsareavailablearoundtheclockonthehonoursystem.

Infactourguestsappreciatethisnotionoftrustsomuch,itwillextendintothenewlylaunchedLendingLocker.There,guestscanborrowitemstheymightusefrequentlyathome,suchascoffeegrinders,ricecookersandblenders.WearegraduallyintroducingthenewLendingLockertoallofourCandlewoodSuiteshotels.

candlewoodsuites.com

FarLeftCandlewoodSuitesNorthLittleRock,Arkansas,US

LeftCandlewoodSuitesSt.Joseph,Missouri,US

BelowThenewLendingLockeratCandlewoodSuites

‘ Great hosts have pride and passion in their premises and the service and experience they offer. At Candlewood Suites hotels, where guests may stay for months at a time, the guest experience is crucial to our success.’

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Candlewood Suites 27

HUALUXE™ Hotels & ResortsIHG launched the HUALUXE™ Hotels & Resorts brand in March 2012, the first-ever upscale international brand designed specifically for Chinese guests focussing on the unique aspects of Chinese etiquette, the importance of rejuvenation, status recognition and enabling spaces that reflect local customs and heritage.

HUALUXEHotels&ResortstakesthebestaspectsofrenownedChinesehospitalityandappliesIHG’sinternationalscale,powerfulsystemsandunparalleledinsightsintotheChinesemarkettoconsistentlydeliverwhatconsumersexpectinChinatoday.

HUALUXEHotels&ResortsisabrandcreatedbyourteaminChinaspecificallyforChineseguestswhowantabrandthathasinternationalstaturebutyetrespondstotheircustoms,traditionsandtastes.

ThegrowthopportunitypresentedbyHUALUXEHotels&Resortsisbothinternalandexternal.Thehotelindustryisprojectedtohavecontinuedstronggrowth,withtourismofficiallynotedasoneofthestrategicpillarindustriesintheGovernment’s12thfive-yearplan,increasedurbanisation,andemergingmiddleclasswithmorespendingpower;whileoutboundtripsfromChinaareprojectedtogrowfrom10millionayeartomorethan100millioninthenext10to15years.

IHGisthelargestinternationalhoteloperatorinGreaterChina,withmorethan180hotelsacross60citiesandafurther160hotelsinourpipeline.With15hotelsalreadyinthepipeline,theHUALUXEHotels&ResortsbrandwillnotonlyenableustocontinuetoexpandinChina’skeygatewaycities,butalsodrivegrowthinsecondarycitieswhereaspecificallyChineseofferisparticularlyappealing.

AndweexpecttobeabletoopenhotelsinmajorcitieselsewhereintheworldsothatChinesetravellerscanenjoytheHUALUXEHotels&Resortsexperienceabroad.

‘ HUALUXE Hotels & Resorts is a brand created by our team in China specifically for Chinese guests, who want a brand that has international stature but yet responds to their customs, traditions and tastes.’


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AboveleftHUALUXEHotels&Resortsteahouse,artistimpression

AboverightHUALUXEHotels&Resortsguestroom,artistimpression


EVEN™ HotelsIHG designed the EVEN™ Hotels brand to uniquely provide solutions for all aspects of both business and leisure travellers’ holistic wellness needs. Our guests want to maintain their balance and well-being on the road and we’re here to help them.

LaunchedinFebruary2012,EVENHotelsspecificallyrespondstoextensivecustomerresearchthattellsusguestsarefrustratedwithstayinginhotelsthatdonotmeettheirwellnesslifestyleneeds.WithEVENHotelswe’renotcreatinganewhotelsegment,butratherstakingourclaimonthewellnessspacewithinthemainstreamlifestylecategory.Anyhotelbrandcanaddayoghurtparfaittotheirmenu,butthat’sfarfromdeliveringaholisticwellnessexperienceandserviceculturethatputsguestsateaseandallowsthemtorest,eat,exerciseandworkontheirownterms–whichisexactlywhatEVENHotelswilldo.

Thecontinuedinterestinwellnessacrossindustriesfurthervalidatesanddemonstratestheneedforthebrand,andreinforcesourconfidenceinlaunchingEVENHotels.Initially,EVENHotelswillopenhotelsintheUS,butwewillcontinuetodevelopthebrandfurtherovertimeinordertogrowwhereverourcustomerisandtoreachaglobalmarket.

ThebrandsigneditsfirstpropertyinOctober2012.LocatedintheheartofmidtownManhattan,itwillbeaflagshippropertyforEVENHotels.Weexpecttosign100EVENHotelsintheUSinthenextfiveyearsinkeymarketsincludingNewYork,WashingtonD.C.andSanFrancisco.


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evenhotels.com

‘ EVEN Hotels specifically responds to extensive customer research that tells us guests are frustrated from staying in hotels that do not meet their wellness lifestyle needs.’

AboveleftAnEVENHotelsproperty,artistimpression

AboverightEVENHotelsexterior,artistimpression

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HUALUXE Hotels & Resorts and EVEN Hotels 29

People

The strength of our Brands relies on us having talented and passionate People. So for us to deliver on our brand promises we need to hire and inspire talented people to service our guests and bring our brands to life.

AttheheartofouremployerbrandareourWinningWays

Being BrandHearted

OurVisiontobecomeoneofthegreatcompaniesintheworldrequiresustomakeourBrandsbigger,betterandstrongerthaneverbefore.ThismeansgrowingourbusinessbymakingourBrandsthefirstchoiceforourguestsandowners.OurPeopleplayakeyrolebydeliveringourbrandpromisesdayin,dayout.ToachieveourVisionweneedtoattracttheverybestpeople,harnesstheirpassionandequipthemwiththerightskillstogiveourguestsatrulygreatexperience.

Ourleadersarecentraltooursuccess,theyneedtoinspiretheirteamstoputourBrandsatthecentreofeveryconversation,everyideaandeverydecisiontheymake.In2012,weintroducedtheLeadershipFramework,whichisournewglobalapproachtoleadershipatIHG.ThismakesiteasyforourPeopletounderstandwhatgreatleadershiplookslikeandwhatskills

andexperiencestheyneedtomovetothenextlevelintheircareers.Additionally,wecontinuetosupportourleaderseverydaythroughouraward-winningLeadersLounge,acontemporarywayofsharinglearningwithourleadersonline.

An employer of choice

Becominganemployerofchoiceisdependentonushavingastrongemployerbrand.Thisiswhyweinvesttimeinsupportingourownerstomeetthechallengeoffinding,developingandretainingtheverybestpeople.

WeofferPeopleToolstoourhotels.Theseareasuiteofpracticaltoolstohelphotelshire,train,involveandrecognisetheiremployees.Sofar96percentofourGeneralManagersusingthemwouldrecommendthemtoothers.Webelievethisisapointofdifferentiationcomparedtoourcompetitors.

AswellascontinuingtodriveawarenessaroundourPeopleTools,wehavealsoworkedtomakeiteasierforhotelstoaccessthem.In2012,welaunchedHotelSolutionswhichprovideshotelswithasinglegatewaytoaccessthefullsuiteofPeopleTools.HotelSolutionsalsoencouragescollaboration.ThroughourSystemweareabletoharnessthecollectiveknowledgeacrossallofourhotelsaroundtheworld,anotherexampleofusleveragingourSystemsizeforthebenefitofourhotels.Sinceitslaunch,71percentofhotelshavebeenusingitregularly,withGeneralManagerssavinganestimatedthreetofourhourseachmonthonadministrativetasks.HotelsusingHotelSolutionshavealsoseenimprovementsinguestsatisfactionscores.

Weareveryproudoftheexternalrecognitionwereceiveacrosstheglobeasanemployerofchoice.Forexample,in

LeftTiffanyChen,JenniferHowardandAbdullaAlRumithi

BelowMorethan4,000hotelsacrosstheglobeparticipatedinCelebrateServiceweek


2012,wefeaturedinTheSundayTimes25BestBigCompaniestoWorkFor;receivedrecognitionforouremployerbrandatthePersonnelTodayAwards2012;wererecognisedasoneofIndia’sBestCompaniestoWorkFor;wontwoawardsrecognisingourgraduatedevelopmentprogrammes;andwererecognisedasbeingoneofthe100BestHumanResourceManagementCompaniesinChina.

Employee engagement

WhenwelistentoourPeopleandrespondtotheirneedswedrivebetterbusinessresults.Thiswasproveninarecentstudywecommissionedthatexaminedthelinkbetweenemployeeengagementandhotelperformance.Thestudyfoundthedifferenceingrossoperatingprofitmarginbetweenhotelswithhighlyengagedpeoplecomparedtothosewithlowerengagementtobeasmuchassevenpercentagepoints.Italsoshowedthatwhenwecomparedhotelswhereengagementhadincreased,againstthosewhereithadnot,wefoundthatforeveryfivepercentagepointincreaseinengagement,therewas,onaverage,70centsofincreasedRevPAR.Thatmeansfora200-bedhotel,theRevPARincreasecouldgenerateanadditional$50,000ofrevenueperannum.

96percentofemployees(thosedirectlyemployedbyIHGandthoseworkinginourmanagedhotels)tookpartinour2012employeeengagementsurvey.Theresultswereimpressivewith94percentofrespondentssayingtheyareproudtoworkforIHG–whichis20percenthigherthanindustrybenchmarks.Ourengagementscorescontinuetoimproveyear-on-yearandwehaveseenan18percentagepointincreaseacrosstheGroupinthelastfiveyears.

Employee recognition

Recognisingachievementisanimportantdriverofemployeeengagementforusandthat’swhyeveryyear,throughCelebrateServiceweek,werecogniseourcolleaguesforthegreatworktheydotogiveourguestsanenjoyablestay.Theweek,whichwasinstigatedbyandruninpartnershipwiththeIHGOwnersAssociation,thisyearsawmorethan4,000hotelsparticipating.

In2012welaunchedBravo!,anonlinepeer-to-peerrecognitiontoolthatgivesourcolleaguesthemeanstopubliclyrecogniseeachother’sworkandefforts.WeprideourselvesonourabilitytorecognisegreatBrandHeartedbehaviourinternally.Todatemorethan25,000Bravos!havebeensent,provingourPeoplereallyvaluetheopportunitytobeabletogiveandreceiverecognitionfromtheirpeers.

Looking ahead

Tomeetourgrowthtargetsandexpandinemergingmarkets,inthenextfewyears,weneedtofindanadditional90,000BrandHeartedcolleagues–peoplewhocanliveandbreatheourBrands,withtherightpersonalitytodelightourguests.

Perhapsoneofthebiggestrecruitmentchallengeswefaceishowweleveragethestrengthofourglobalemployerbrandwhilebeingsensitivetothelocalmarketsinwhichourhotelsoperate.InGreaterChina,wehavecreatedanewrecruitmentsiteinMandarinandhavelaunchedcareerpagesonsocialnetworkingplatformssuchasWeiboandRenren(thenumberonesocialmediaplatformamongstcollegestudentsinGreaterChina).

Asfurtherexplainedonpage35,aspartofourResponsibleBusinesspractices,wecontinuetohaveapositiveimpactonthecommunitiesweservethroughourIHGAcademyprogramme.Thisprovideslocalpeoplewiththeopportunitytobuildanddeveloptheirskillsandimprovetheiremploymentprospects.Withover150IHGAcademyprogrammesin37countriesaroundtheworld,itwillhelpuscreateapipelineofpotentialrecruitsandfuturetalent.

OneofthemostimportantrolesfordrivingthesuccessofourbusinessisourhotelGeneralManagers.ThisiswhywearelaunchingournewGeneralManagerTrainingprogramme–designedtoshiftourmindsetawayfromsimplycreatinggreathotelmanagerstodevelopinggreatBrandmanagers.TohavepreferredBrands,weneedthebestGeneralManagersintheindustry.Therefore,wehaveinvestedheavilyinourapproachtohiring,traininganddevelopingthem.ThishasbeenthefocusofoursharedagendawiththeIHGOwnersAssociationandweareproudtohaveworkedwiththemtodevelopthisprogramme,whichwillberolled-outinitiallytonewHolidayInnandHolidayInnExpressGeneralManagersfromthefirstquarterof2013.

WearealsofurtherstrengtheningIHG’sperformancecultureinourcorporateofficesbybetterlinkingIHG’sperformancetargetsandreward.Startingwithourseniorleaders,wehaveamendedtheperformancemeasuresunderourannualincentiveplantoalignitmorecloselytoourstrategicprioritiesofBrands,PeopleandDelivery.

AtIHG,itisourPeoplethatdelightourguestsandinturnkeepourbrandpromisesandhelptobuildpreferenceforourBrands.In2013,wewillcontinuetobuildcapabilitytohiretheverybestpeopleandequipthemtogivetheirbesteveryday.ThisisanexcitingtimetobeatIHGaswecommittobecomeoneofthegreatcompaniesintheworld.

“Our People are the difference. They bring our Brands to life. That’s why we place so much focus and effort on ensuring they feel truly respected and valued. We know that when our People feel loved they love our guests and our owners see the impact on business results.”

Tracy Robbins Executive Vice President, Human Resources and Group Operations Support

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People 31

Driving profitable revenue

WhenahoteljoinsIHG,itconnectstoapowerfulsystemofrevenueplatforms,programmesandtoolsdesignedtoachieveasingleoutcome:drivingprofitablerevenue.

Profitablerevenuecreatesastrongermarginandgreaterreturnsforourowners.

IHG’spowerfulrevenuesystemsgenerate69percentofroomsrevenuesdirecttoourhotelsglobally.AndallofthissitsonastrongtechnologyfoundationthathelpsIHGsucceedincreatingpreferredBrands,drivingrevenueandenhancingownerreturns.Oursystemincludesourglobalbusiness-to-businesssalesprogrammes,onlinemarketingstrategies,reservationschannels,directtoconsumermarketingcampaigns,revenuemanagementtoolsandstrongloyaltyprogramme.Wedeploythesesystemsandplatformstobettermanageeverystepoftheguestexperience.

Attracting travellers to our brands

Akeypartofourdemandstrategyincludesoursalesteams,whoarecultivatingthoseimportantbusinesstobusinessrelationshipsthatdriveawareness,trialandusageofourbrandsamongsomeofthehighestvolumeguests.Ourgoal?WewantthesecompaniestochooseourBrandseverytimetheytravel.Andwe’reseeingsuccess.In2012,oursalesteamsmanagedmorethan2,000accountsglobally,drivingalmost$5billionintotalhotelrevenue,up12percentcomparedto2011.

Theonlineexperiencehasbeenexpandingexponentially,andIHGisattheforefront.Withastrongfocusonsearchengines,wemanagemorethaneightmillionkeywordsinmultiplelanguagestodirecttravellerstoourbrandswhentheyresearchanupcomingtrip.Ouronlinemarketingprogrammesgeneratedmorethan$1.4billionintotalhotelrevenuein2012.

Addtothistheresultsfromourpowerfulsearchengineoptimisationstrategy,whichdrovemorethan26percentofthetotaltraffictoourwebsitesin2012,andyoucanseethatweareamajorplayeronline.

Ourmobilestrategyhasalsobeenverysuccessful.Injustthreeyears,ourrevenuesfrommobiledeviceshavegrownfrom$2.4millionin2009tomorethan$330millionin2012,helpingtoleadthewayinwhichguestsbook.

Wehavetheresourcesandsystemstodowhatnoonehotelcoulddoonitsown.Withasophisticateddatabaseandanalyticalmarketingapproach,weoffertargetedcampaignsbasedonguestpreferences,marketingtotherightguestattherighttime,withtherightmessagetodrivethemtobookanIHGhotel.

Turning online shoppers into buyers

Onceweattractguestswithoursalesandmarketingefforts,wecompelthemtobook.Today’sonlineshoppingexperienceoffersmanywaystobookandconsumersarecomparingandshoppinglikeneverbefore,sowehaveclearstrategiestoconvertmoreshoppersintobuyersthroughourdirectchannels.

Delivery

IHG has a powerful system of tools and programmes, including our brand websites, mobile applications, call centres around the world, award-winning loyalty programme and revenue management and sales processes. All of these are designed to drive growth and profitable revenue into our hotels.

“Technology is playing an even greater role in differentiating our business and our Brands, providing best-in-class products and services to our guests, no matter how and where they shop. As consumers become more connected and socially engaged in the digital world, IHG has recognised technology as a key enabler in delivering on our brand promise.”

Eric Pearson Executive Vice President and Chief Information Officer


Weoffercontent-richbrandwebsitesthatexperiencedmorethan227millionvisitsin2012andgeneratednearly$3.4billionintotalhotelrevenue.

Weworktogetherwithourhotelstoensurethatwehavethebestoffersandcontentonourwebsitestogivetherightinformationneededtoourgueststocompletetheirbooking.WehaveunderscoredthevalueofourbrandwebsiteswiththelaunchofourGuestRatingsandReviewstoolonourwebsites,anintegrationoftravellerreviews,whichgiveguestsadditionalinformationtomakethehotelchoicethatisrightforthem.

Andtoensurethatwearetakingeveryopportunitytoconvertconsumersonline,in2012IHGbecameafoundingpartnerinroomkey.com,aninnovativenewhotelsearchenginethatofferstravellerscomprehensiveinformationandasimplifiedsearchexperiencecreatedbysixoftheworld’sleadinghoteliers.Thisisanadditionalshopwindowforourhotels,makingiteasierforcustomerstobook.

Whenourcustomersprefertospeakwithsomeone,our10callcentresaroundtheworldarestaffedwithtrainedreservationsagentsreadytorespondtocalls,emailsandchats.In2012,ourglobalcallcentresansweredmorethan23millioninboundcontactsanddrovemorethan$1.9billionintotalhotelrevenuetoourhotels.

The right room at the right price

Withover157millionguestnightsinIHGhotelseachyear,itisessentialforustopriceourhotelseffectivelytomaximiseowners’returns.

That’swhywehavedevelopedour‘PriceOptimization’tool,whichsupportshotelstomakethebestpricingdecisionsbasedonavarietyofsophisticatedalgorithmsthatconsiderhistoricaldemandpatterns,competitivepricingandforwardeconomicindicators.

Additionally,in2012wecreatedandpilotedpricingandrevenuemanagementtoolstosupporthotelsacrossotherpiecesoftheirbusinessincludingmeetingsandfoodandbeverage.

Keep guests coming back

AtIHG,loyaltyisledbyouraward-winningPriorityClub®Rewardsprogramme,whichcultivatesourguestsintoloyal,repeatcustomersandadvocatesofourbrands.Ourloyalcustomersareourmostprofitablecustomers–theystaymorefrequentlywithIHGhotels,booktheirstaysvialower-costreservationchannelsandengageinpositivesocialconversationaboutourbrandsandhotels.

PriorityClubRewardsisanaward-winningprogrammeofferingourmembersavastarrayofpointredemptionopportunities.Thiscustomervaluepropositionhastranslatedintostrongcustomerattraction

andengagement.MembershipinourPriorityClubRewardsprogrammegrewtomorethan71million–up13percentover2011.AndPriorityClubRewardscontinuestobeheraldedas‘best’byindustryadvocatesbeingnamedGlobalTravelermagazine’sBestHotelRewardsProgramin2012fortheeighthconsecutiveyearandwinningPremierTravelermagazine’sinauguralawardforBestHotelLoyaltyProgram.

Technology with a purpose

IHGhasbeenaleaderinpioneeringtechnologythatenablesourbusinesstointeractmoreeffectively,moreoftenandinmorewayswithourcustomers.Wefocusoninnovationthatallowsustoleveragetechnologytodeliverasuperiorguestexperiencewhileenhancingownerreturns.

“Our mission is to drive incremental, profitable revenues to our hotels so that our Brands outperform the industry and our owners achieve higher returns.”

Steven Sickel Interim Global Head of Sales and Distribution

Topiqueculinaryinterests,wecreatedaniPadappshowcasingacollectionofrecommendedrecipesfromtopInterContinentalHotels&Resortschefs

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Delivery 33

Responsible Business

With over 4,600 hotels in nearly 100 countries and territories around the world, our commitment to being a Responsible Business is central to our Vision of being one of the great companies in the world. Our People understand how important it is to champion and protect the trusted reputation of IHG and its brands and this is embedded in our culture.

Tourismplaysalargeroleintheworldeconomyandisanimportantsourceofwealthformanycountries,butwemustacknowledgethatourindustry,likemanyothers,facesincreasingpressuretobalanceitseconomicperformancewithitssocialandenvironmentalimpacts.Thatiswhy,forus,ResponsibleBusinessunderpinseachofourthreestrategicprioritiesofpreferredBrands,talentedPeopleandbest-in-classDelivery,whichworktogethertodetermine‘Howwewin’tocreateGreatHotelsGuestsLove.

WebelievethatbeingaResponsibleBusinessisnecessarytoenableustostayaheadofthecompetitionandgrow,creatingvalueforallofourshareholdersandstakeholdersinthelong-term.Amongstotherthings,itoffersusahugeopportunitytoinnovate,createemployment,empowerpeopletoperformattheirbestandfeelgoodaboutwhattheydoanddrivevalueforourbusiness.

Governance and leadership

OurChairmanandtheBoardprovidestrongleadershipandpromoteaResponsibleBusinessculture,bymaintaininghighstandardsincorporategovernance,corporateresponsibility(CR)andinternalcontrolandriskmanagement.SupportingthemisarangeofBoardCommitteesandateamoflawyers,compliancespecialists,charteredsecretaries,internalauditorsandriskmanagers.Theteam,deliberatelynamedBusinessReputationandResponsibility,continuallyworktomonitorchangestolegal,regulatorycomplianceandCRconceptsandimplementtheBoard’sinternalcontrolsandpoliciestoensurethatwe,asabusiness,remainexcellentatbeingresponsible.

Brands

OurBrandsofferapromiseandintegraltothisistrust.Trustedbrandsdeliverasuperiorandconsistentbrandexperience

andtoachievethis,werequireaclearbrandframework.Brandstandardsarethefoundationsofaclearbrandframeworkforallourhotelsandourcomplianceteamsensurethatourhotelsdeliverinaccordancewithourbrandstandards.Ourbrandsafetystandardsarealsodesignedtoassisthotelsinprovidingasafeandsecureenvironmentforourguestsandemployees.Dealingwithrisksrangingfromfireandfoodhygienetoterrorism,ourbrandsafetystandardshavebeenrecognisedasbest-in-class.Ourteamofriskmanagersisdedicatedtoprovidingtrainingandmonitoringtheimplementationofoursafetystandardsforsafeandsecurehotels.

People

AtthecoreofbeingaResponsibleBusinessisensuringthattheactionsofallofouremployeesworkingatourcorporateofficesandhotelsmaintainourtrustedreputation.Operatinganethicalbusinessisvitaltomaintainingandprotectingthistrustedreputationandthereforewecontinuallykeepunderreviewourinternalpolicies,includingourCodeofEthicsandBusinessConduct,Competition,DataPrivacyandAnti-Briberypolicies.TheseareregularlycommunicatedviaeLearningandface-to-facetrainingmodulespromotingaccountabilityandtransparency.

Delivery

HavinginplaceaneffectivesystemofinternalcontrolsandriskmanagementisessentialtobeingaResponsibleBusiness.InmakingkeybusinessdecisionstheBoard,ExecutiveCommitteeandAuditCommitteeworktogethertoidentify,assess,prioritiseandmitigaterisks,includingstrategicandoperationalrisks.SuchCommitteesrelyheavilyonourdynamicriskassessmentandassurancemappingprocessandhighlyconsistentinternalauditmethodologytoprovideanappropriatelevelofassuranceforall

stakeholders.Safetyandsecurityisanabsoluterequirementforanygueststayingatourhotels.Ouraward-winningriskmanagement,safetyandsecuritytrainingcourses,toolkitsandmaterials,suchasourCrisisandIncidentHandlingprogrammes,enableustoworktogethertocreatesafeandsecureenvironmentsatallofourhotelsandcorporateoffices.Thesetools,processesandproceduresensureabusinessbasedonasolidfoundationwithacommitmenttodoingtherightthingforthebenefitofallourstakeholders.

Corporate Responsibility (CR)

AbigpartofResponsibleBusinessishowIHGandourhotelsactinourlocalcommunitiesandhowwemanageourenvironmentalimpact,whatwecallCR.WetreatitasastrategicbusinessissueandthereforebelieveCRonlymakessenseifitalignstoourVision.Wealsobelievethatincorporatingsocietalandenvironmentalfactorsintoourbusinessstrategyandoperationswillplayavitalroleinthelong-term,bothforourbusinessandthetravelandtourismsector.Forthatreasonweaimtoharnesstherolehotelsplayinsocietytocreatesharedvalueforourbusiness,ourguestsandthecommunitieswhereweoperate.

WebelievewecanmaketourismresponsiblebyconcentratingourCRactivitiesintwoareas,theenvironmentandthelocalcommunity,wherewecanmakethemostdifference.WeaimtomakeadifferencethroughourthreecoreCRprogrammes:GreenEngage,IHGAcademyandtheIHGShelterinaStormProgramme.Theseprogrammeshavebeendesignedsothattheycanbeimplementedinanyofourhotelsandcorporateofficesinanyregion.


GreenEngageTheenvironmentalimpactofourhotelsismanagedthrougheverystageofthehotel’slifecyclebyGreenEngage,ouronlinesustainabilitymanagementplatform.GreenEngageprovideshoteloperatorswithadviceoneverythingfrompickingthemostappropriatesiteandselectingthemostenergyefficientlightingforthehotelthroughtochoosingresponsiblecleaningmaterialsandprovidingemployeetrainingonenvironmentalsustainability.UseofGreenEngagecansaveupto25percentofenergyusageandistrulybeneficialforourhotels,guestsandtheenvironment.GreenEngagehelpsustrack,manageandreducetheuseofenergy,carbonandwaterandthemanagementofwasteinourproperties.GreenEngagehelpsusfulfilourcommitmenttodobusinessresponsiblyand,inturn,thisstopshotelslosingmoneyonenergycosts.Energyisthesecondbiggestcosttohotels–theaverageIHGhotelspendsover$500,000onenergyusageeachyear.ConductingbusinessresponsiblyalsoboostssalesasGreenEngagehelpsourhotelsattractguestsandcorporateaccountswhoincreasinglywantagreenerhotelstay.Ultimately,weaimtocreatenewandbetterwaystodesign,buildandrunourhotels.Over2,260hotelsnowuseGreenEngageandouraimistohaveourentireestatetracking,managingandreportingitsenvironmentalimpactovertime.

IHGAcademyTheIHGAcademyisacollaborationbetweenindividualIHGhotelsorcorporateofficesandlocaleducationprovidersand/orcommunityorganisationsprovidinglocalpeoplewiththeopportunitytodevelopskillsandimprovetheiremploymentprospects.WithinaconsistentglobalframeworkeachIHGAcademyisuniqueandtailoredtomeettheneedsoflocalcommunitiesandhotelsaroundtheworld.AllIHGAcademyprogrammeshavethreethingsincommon:• theyoperatetogetherwithlocal

communityorganisationsand/oreducationproviders;

• theyincludeaworkexperienceplacement,givingparticipantsskillsandrealexperienceofworkinginahotel;and

• theyincludeperformancefeedbackandarecruitmentdiscussion,givingparticipantsanopportunitytogainrealexperienceofthejobinterviewprocess,therebyimprovingtheirchancesoffindingajobinthehotelsectorandinmanycases,securingajobinanIHGhotel.

ParticipantswhogothroughtheIHGAcademycomefromallwalksoflifeandrangefromuniversitygraduatesthroughtodisadvantagedyoungpeople,reflectingtherangeofcareers,aswellasopportunityforprogression,availableatIHG.Currentlywehavemorethan150IHGAcademyprogrammesin37countriesaroundtheworld,withthe150thopeningrecentlycelebratedinBeijing,ChinainJanuary2013.OurIHGAcademyinNewham,EastLondon,establishedin2012,supportsthelegacyoftheLondon2012OlympicandParalympicGames.OurabilitytobuildskillsandraiseaspirationsacrosshundredsofcommunitiesthroughthisprogrammewillcontinuetodriveourcommitmenttotheIHGAcademyandhelpustransformhospitalityformoresustainablecommunitiesandbetterlives.

www.ihgacademy.com

IHGShelterinaStormProgrammeThroughtheIHGShelterinaStormProgrammeourhotelsreceiveguidanceonwhenandhowbesttorespondwhennaturalorman-madedisastersoccur.OurglobalpartnershipwithCAREallowsustodrawonexpertiseinhumanitarianassistanceandhelpsusfindappropriatepartnersintheareawhendisasterstrikes,directinghelptowhereitisneeded.Whenadisasteroccurs,fundsfromtheIHGShelterFundcanbeallocatedtoenableourhotelstorespondquicklyandeffectivelytosupportourguests,employeesandthelocalcommunitywithfinancialsupport,vitalsuppliesandaccommodation.TheIHGShelterFund,apooloffundscollatedfromfundraisingfromhotelsandcorporateofficesthroughouttheyear,isakeyelementoftheIHGShelterinaStormProgramme,enablingustorespondquicklywhendisasterstrikes,insteadofwaitingtoraisefundsaftertheevent.In2012,$545,000wasraisedfortheIHGShelterinaStormProgramme.During2012,thefundwasputintoactiontosupport10disastersacrosssixcountries,includinginresponsetoseverefloodingandacycloneinFiji,SuperstormSandyontheUSEastCoast,floodinginManilaandtheUK,wildfiresinColoradoandHurricaneIsaacontheUSGulfCoast.OneachoccasionweassessedthedamagetotheIHGhotelsandtheimpactontheiremployeesandcommunities,andallocatedfundsfromtheIHGShelterFundtohelpthoseaffected.

www.ihgshelterinastorm.com

“Being a Responsible Business will enable us to stay ahead of the competition and grow, creating value for all of our shareholders and stakeholders in the long-term. That’s why Responsible Business underpins Brands, People and Delivery.”

George Turner Executive Vice President, General Counsel and Company Secretary

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Responsible Business 35

Responsible Business continued

Stakeholder engagementOurstakeholdersplayakeyroleinhelpingusidentifyandtackleourpriorities,andourstrategyistocreatesharedvalueforourbusinessandstakeholdergroups.Weengagewithallourstakeholders,includingshareholders,throughavarietyofchannels,includingforums,meetings,individualinterviews,surveys,reportsandconferences.FordetailedinformationonourapproachtoCRandourkeyprogrammes,ouronlineCorporateResponsiblyReportcanbeviewedat:

www.ihgplc.com/responsibility

Ournewestchannel,the‘IHGPlanetCR’Facebookpage,hasquicklygrowntoacommunityofover20,000fansandprovidesachannelforustoraiseawarenessofourCRprogrammesdailyandactivelyengageinatwo-waydialoguewithourstakeholders.

www.facebook.com/IHGCorporateResponsibility

External recognitionIn2012,wewere:• awardedtheBestRiskTraining

ProgrammebytheStrategicRiskManagementAwards2012forourriskmanagementprogramme;

• awardedtheBronzeawardatthe2012TrainingJournalAwardsfortheBestUseofTechnologyinLearning;

• namedasoneofthetop10InnovativeLegalDepartmentsbyInsideCounselmagazineintheUS;

• awardedSilverAwardintheBestLawDepartmentcategoryattheInternationalGeneralCounselsAwards;

• awardedtheGlobalBusinessTravelAssociationGoldMedalAwardforSustainability;

• awardedtheHotelOwners’andFranchisees’TransatlanticandEuropeanLeagueOwnerFriendlyInnovationAwardforGreenEngage,recognitionthattheprogrammeisofvaluetoourhotelowners;and

• shortlistedfortheWorldEnvironmentCentreAwardforSustainability,makingittothefinalroundwithGreenEngagecommended.

LeftInterContinentalResortAqabatakespartinResponsibleBusinessweek2012

BelowIHGAcademylaunchinNewham,EastLondon.AttendedbytheUKDeputyPrimeMinister,NickClegg,andRichardSolomons,ChiefExecutive

AboveCelebratingthe150thIHGAcademyopening,Beijing,China


Documents

How we win - InterContinental Hotels Group PLC · Our business model and revenue delivery systems and How we win 11. Brands Bigger, better and stronger brands. ... Hotel Indigo London-Tower