Intercontinental Hotels : PDF 2.74MB

voco Hangzhou Binjiang Minghao, Greater China

Investor Presentation

May 2021

C A U T I O N A R Y N O T E R E G A R D I N G F O R W A R D - L O O K I N G S T A T E M E N T S

This presentation may contain projections and forward looking-statements. The words "believe", "expect", "anticipate", "intend" and "plan" and similar expressions identify forward-looking statements. All statements other than statements of

historical facts included in this presentation, including, without limitation, those regarding the Company's financial

position, potential business strategy, potential plans and potential objectives, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Further, certain forward-looking statements are based upon assumptions of future events which may not prove to be accurate. The forward-looking statements in this document speak only as at the date of this presentation and the Company assumes no obligation to update or provide any additional information in relation to such forward-looking statements.

The merits or suitability of investing in any securities previously issued or issued in future by the Company for any investor's particular situation should be independently determined by such investor. Any such determination should

involve, inter alia, an assessment of the legal, tax, accounting, regulatory, financial, credit and other related aspects of the transaction in question.

2

Continued focus on industry-leading net rooms growth, underpinned by our strategic priorities

Our Purpose

True Hospitality for Good

Our Ambition

To deliver industry-leading net rooms growth

Our Strategy

Use our scale and expertise to create the exceptional guest experiences and owner returns needed to grow our brands in the industry's most valuable markets and segments. Delivered through a culture that attracts the best people and has a positive impact on the world around us.

Our Priorities

Build loved

and trusted brands

Customer centric in all we do

Create digital advantage

Care for our people, communities and planet

3

Strong portfolio of preferred brands, geographically diverse and asset light

Suites		Essentials		Premium		Luxury & Lifestyle

Strong portfolio

of brands

Asset light and geographically diverse

	Owned, Leased			Luxury
	146K		10%
	& Managed			Midscale/Upper
Managed	Leases	16%				96k
28%	1%					Midscale	35%	100k
			Total			68%
	Total			Total	Pipeline	37%
	rooms:		rooms:	Upscale	rooms:		rooms:
	227K	22%
	884k	884k	884k		274k
	26%
			510K
	Franchised		58%				78k
						28%
	71%

High quality fee

stream

~95% of profits from fee business

~80% of fee revenue linked to hotel revenues ~10% of fee revenue linked to hotel profits

Americas

EMEAA

Greater China

4

IHG is well positioned to benefit from strong industry fundamentals

Industry

Industry growth

Shift to scale

brands

Upper Midscale

• Midscale strength

Desire to

travel

Technology

Sustainability

• Sector growth outpaced global economy for a decade pre Covid-191
• Branded share2: 53% open rooms, 80% pipeline
• Top 3 share2: 17% open rooms, 43% pipeline
• Contributed ~40% of total branded industry growth over the past four years3
• RevPAR declined less than overall industry4
• Growing populations, desire to travel and experience, inherent need to physically interact
• Integral to the guest journey
• Drives owner value through data and insights
• Increasingly informing guest preferences
• Scale helps owners seeking support

Market share

gains

System

expansion

Strong weighting

in midscale

segments

Enhanced

brand portfolio

Cloud-based

capabilities

Responsible

Business focus

• Accelerated net rooms growth from ~3% to 5.6% in three years pre Covid-19
• Opened 285 hotels in 2020; includes brand launches into new markets
• Pace of conversions increasing
• Represents 68% system and 61% pipeline
• Industry leading share of system and pipeline
• Broadened portfolio to target guest needs
• Five new brands launched or acquired
• Digital-firstapproach enabling seamless guest experiences
• Next phase of GRS on track by end 2021
• Continuous focus on sustainable solutions
• Sustainability credentials facilitate owner needs

1 Source: WTTC and Oxford Economics. 2 Source: 2020 STR census data; based on room share. 3 Source: STR US Upper Midscale and Midscale supply growth 2015-19;4 Source: 2020 STR US Upper Midscale and Midscale vs US total industry.

5