Intercontinental Hotels Group (IHG) is a multinational hospitality company that franchises 12 hotel brands with over 5000 hotels and 744,000 rooms worldwide. IHG operates under a franchise business model, deriving revenue from franchise fees and management contracts. It has major brands like Holiday Inn, Holiday Inn Express, Intercontinental, and Crowne Plaza. IHG aims to achieve sustained high quality growth through targeting attractive markets and segments, making a positive social impact, and strengthening its brands.

1. Intercontinental Hotels
Group
BY ALEX KING, SAFIA BAH, JACK
LAUGHARNE, SOPHIE DAVIS-COOPER
AND CHIDO TANYANYIWA

2. Floor 1, Core Purpose- Mission
Statement
‘Great Hotels Guests Love’

3. Floor 2, Business Model
•Public Limited Company
•Franchises 12 distinct Hotel brands all around the World in almost 100 countries
•Overall franchises over 5000 hotels creating 744,000 rooms as of 2015
•Future plans consist of over 1300 hotels in the development pipeline
•Operate with over 350,000 employees
•Operates under IHG rewards club creating brand loyalty at 99 million members

5. Floor 3, 12 Hotel Brands
Intercontinental Hotels and Resorts- 184 hotels, focus on glamorous international travel
located in over 60 countries
Kimpton Hotels and Restaurants- 61 Hotels, Prides on customer service creating heartfelt
connections with customers
Hotel Indigo- 65 properties, Located in culturally diverse locations
Even Hotels- 3 hotels, focused on wellness when travelling supporting healthy and active
routines
Hualuxe Hotels and Resorts- 3 Hotels, Specific for Chinese guests providing a very upscale
service through focuses in culture and heritage
Holiday Inn Hotels and Resorts- 1163 Hotels, Popular and most well known chain of middle
scale hotels designed for enjoyable experiences to the mass market

6. 12 Hotel Brands
Holiday Inn Express- 2425 Hotels, Simple and smart hotels making travel simple and basics
done well and efficiently
Holiday Inn Club Vacations- 16 Hotels, Creating invaluable family memories with rage of
activities and holiday locations
Holiday Inn Resort- 47 Hotels, signature resorts designed for quality family time with well
designed resorts to encourage family vacations
Staybridge Suites Hotels- 220 Hotels, Home-like environment, business and leisure customers
looking for longer stays
Candlewood Suites Hotels- 341 hotels, US only, relaxed hotels looking to provide rooms
wherever the customer wants them so they can relax on their own schedule
Crowne Plaza Hotels and Resorts- 406 hotels, Designed for business travel open 24/7 and caters
for the business peoples needs

7. Floor 4, Market Position
-57% of the global market are branded hotels which is only rising
-IHG are a large player in the industry – $1.8bn -750,000 rooms
-Hilton Worldwide - $10.5bn- 788,000 rooms
-Marriot Hotels- $14.4bn- 1,200,000 rooms
-Accor Hotel- $5.6bn – 570,000 rooms
-Relative to revenue per room, IHG could be looked at as the worst performing, however
our portfolio of brands are in different valued segments, meaning our product is cheaper
and therefore revenue alone can be a poor indicator.

9. Floor 5, Finances
Gross Revenue in IHG’s System- $1.8bn (+5.3%)
Total Operating Profit before exceptional items and tax- $680m (+4.5%)
Total underlying operating profit growth $67m (+11.5%)
Group revenue- $1803m (-3%)
Full Year Dividend- 85 cents/ 58p (+10%)

10. Floor 6, Financial Analysis
2015 2014
Net Profit Margin =67.89% Net Profit Margin = 21.09%
ROCE =51 % ROCE= 43.16%
Gearing =86.71 % Gearing=140.25%
Current Ratio = 1.17 Current Ratio = 0.99

11. Floor 7, Operations
They run the hotel In three ways
1. Franchised
2. Managed
3. Owned
We used analysis to gather effectiveness of each and how it fits with their business model.

12. Floor 8, Management Team
Analysed the effective of the management team
using Fayol 14 Principles of management as well
as Fayol 6 functions of management.
https://www.ihgplc.com/home/about-us/our-
leadership/our-board
Chairman- Patrick Cescau
CEO Richard Solomons – Non executive director for Marks and Spencer
PLC
CFO Paul Edgclife Johnson
Anne Busquet- Directors at Golden Seals invest company
Ian Dyson
Jo Harlow
Non- Executive Directors

13. Floor 9, Pressures on IHG
Power of Suppliers- Low at 2/5
Power of Buyers- High at 4/5
Threat of New entrants- Average at 3/5
Threat of substitutes- Average at 3/5
Rivalry of competition- High at 4/5
Overall: 16/25

14. Floor 10, Future Strategy
IHG’s Objective = Sustained High Quality Growth
3 Main Tactics:
-Targeting attractive markets and segments
-Making a positive impact
-Building Strong Brands

15. Floor 11,Target Market & Segments
Targeting attractive markets…
- Global cities with high rates of international flows
- Greater China ( 90million long haul holidays 2050 )
Targeting high opportunity segments…
- Focus on mid scale, upscale & luxury segments
- Ageing population ( 800million – 2billion in 2050 )

16. Floor 12, Social Responsibility
- Reducing Carbon Footprint
- Less waste
3.9% per room
4.8% less water
- Building hospitality skills
- Generating Jobs
9,287 people (+39.3%)
- Supporting communities
- Protecting Environment
-Disaster Help
2015- $4.17m (-32%)

17. Floor 13, Building Brands
High Standard Guest Service
- informed by insights and opinions
- motivated by ‘winning’ culture
Loyal Customers
- IHG Rewards Club
- Improving ‘customer journey’
Concentrated Brand building in priority
Markets
- Sales Team
- Adapted service

18. SWOTInternal Strengths
- Strong global presence
- 12 brands operating in 12
segments
Weaknesses
- Operating profit in Americas only (88%)
- High geographic concentration
External Opportunities
- Emerging markets offer
tremendous potential
- Growing demand
Threats
- Government regulations
- Political Instabilities

19. Sources
file:///C:/Users/Alex/Downloads/annual_report_2015.pdf
https://www.ihgplc.com/about-us/industry-and-market-trends
http://www.jgbm.org/page/7%20David%20S.%20Y.pdf – The journal of global business
management volume 9

20. Thank you for listening
Any Questions?