Intercontinental Hotels : Investor pack

February 24, 2021 at 08:15 am EST

voco Hangzhou Binjiang Minghao, Greater China

Investor Presentation

February 2021

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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.

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

Our Purpose

Our Priorities

True Hospitality for Good

Our Ambition

To deliver industry-leading net rooms growth

Build loved and trusted brands

Customer centric in all we do

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.

Create digital advantage

Care for our people, communities and planet

Strong portfolio of preferred brands, geographically diverse and asset light

514K 58%

High quality fee stream

103k 38%

~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

IHG is well positioned to benefit from strong industry fundamentals

Industry

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.

Why owners choose to partner with IHG

Global Sales organisation

• Developed a leading global sales enterprise to drive higher quality, lower cost revenue to our hotels
• Drives ~25% of Group gross revenue

Technology Leadership

• Roll out of cloud-based IHG Concerto including Guest Reservation System
• Revenue management for hire tools
• IHG Connect and IHG Studio enhance guest experience
Investment in hotel lifecycle management and operations
• Accelerating hotel signings into openings and maximising owner ROI
• Faster ramp up of new hotel openings
• Extensive infrastructure for franchise support

Trust and track record

Strength of brands

• Breadth and depth of brand portfolio
• Includes Holiday Inn Brand Family, the largest global hotel brand and InterContinental, the largest luxury hotel brand
• Deliver RevPAR premiums
• Strong owner ROI

Strong loyalty and enterprise contribution

• Normally ~50% loyalty contribution 1
• >100m IHG Rewards Club members

• Significant portion of room revenue booked through IHG's direct channels

Procurement

• Programs for hotel operating goods and services
• IHG Marketplace - hotel procurement buying programme / platform

1 Loyalty contribution on a room revenue

Strong competitive position in an industry where branded players are gaining market share

Global share of top 5 branded players

Share of global room supply (%)Marriott

IHG share of global rooms and active pipeline (%)

24.7%

IHG is largely asset-light and weighted towards mainstream select service

~40% of IHG pipeline under construction

2015

2019

Strong conversion opportunity potential to drive further share gains

Source: STR

Progress on system size quality and pipeline for future growth

12020 excludes the removal of 16.7k rooms relating to the termination of a portfolio of hotels owned by SVC

IHG's System Fund supports our brand marketing and our revenue delivery system

Brands

Sources of Income

Marketing & Reservations

Assessment ~3.0% of gross rooms revenueIHG Rewards Club Point Sales ~4.75% IHG Rewards Club bill

Other fees for value add services e.g. pay for performance programmes

Sources of SpendIHG Rewards ClubAdvertising & MarketingDistribution (Reservation & Channels)Systems & Technology

Our mix places us well to benefit from the expected shape of demand recovery

US rooms distribution

US demand mix

US rooms distribution

2020 US guest stays

78%

Midscale/

Upper Midscale

International

UpscaleLuxury

1Non-urban regions includes hotels located in small metro towns, suburban districts, interstate, airport and resort locations

LeisureGroups

The Upper Midscale segment, which accounts for ~70% of our rooms in the US, has historically recovered faster than other segments

US RevPAR Performance 2008 - 2015 (12m rolling)

US Industry Chain Scale RevPAR Change (12m rolling)

30%

20%

10%

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

-10%

-20%

-30%

Luxury Chains

Upper Upscale ChainsUpper Midscale ChainsTotal Industry

Midscale Chains

Source: STR

A strong platform in the US from which to drive growth

US estate heavily weighted towards midscale segments…

US rooms by chain scale

78%Midscale/ Upper Midscale

…where we have continued to outperform

Q4 2020 US RevPAR change - IHG vs industry (%)

Upscale

-52.2% Total US

IHG Weighted

Luxury

SegmentsHoliday Inn Express / Upper Midscale segment

IHG1

Industry2

~30% of hotels have over 50% occupancy…

December 2020 US occupancy distribution by brand segment (% of estate)

Total

Midscale/ Upper MidscaleOcc: >50%

Occ: 30% - 50%

Occ: <30%Upscale

Luxury

1 Includes the adverse impact of hotels temporarily closed as a result of Covid-19. 2 Industry data per STR, on a total room inventory basis

…driven by exposure to essential business travel

US demand mix

2019

Business transientLeisureGroups

2020

Europe, Middle East, Asia & Africa

A clear strategy for growth: building scale in key markets

A wide geographic footprint….

…with strong structural growth potential

Rooms by geography ('000 rooms)

India, Middle East & AfricaEuropeSouth East Asia & KoreaAustralasia & Japan

127

Pipeline rooms by geography ('000 rooms)

3-year CAGR

+3.9%

+5.5%

+5.9%

+5.0%

% of current open rooms

20% 25

48%

70%

32%

Europe

1Source: STR Census data

India, Middle East & Africa

EMEAA

Branded hotel penetration1

Greater China

66%AmericasSouth East Asia & KoreaAustralasia & Japan

• Highly attractive structural drivers in numerous emerging markets in the region
• High-value growth opportunities across Luxury & Lifestyle
• Developing and improving brand formats - opened first Holiday Inn & Suites in Japan; signed first all-suites for voco in Qatar; expanded Kimpton to resort destinations

Our leading position in Greater China

Growing in locations with attractive demand drivers…

FY 2020: system and pipeline distribution ('000 rooms)

…with a strong share of the branded pipeline

IHG share of branded market1

110

24%

Tier 1

Tier 2

Tier 3

Pipeline

System Size

Tier 4

Our brands deliver guest preference3

preferred brand in its competitive set

Hong Kong, Macau, Taiwan

1 Market share per Q4 2020 STR data; pipeline data only available for international branded operators
2 Market share includes 5k rooms from InterContinental Alliance Resorts partnership with Sands
3 Based on Serious Consideration as per 2019 Millward Brown brand survey of International brands

Tier 1

Tier 2

Tier 3

Market Share (STR data; includes domestic brands)

Pipeline Share (STR data; international brands only)

Tier 4

Hong Kong, Macau, Taiwan 2

Strong market fundamentals from a growing middle class

China income mix (%)

Source: EIU, Accenture Chinese Consumer Digital Trends Research (n=4060); IMF, UNWTO /Ministry of Tourism, Tourism Economics;

20152030

Cash generative business, driving shareholder returns

• Strong cash flows driving consistent shareholder returns

• Total returns of ~$13.6bn since 2003, ~40% from operations
- • $2.4bn ordinary dividend
- • $11.2bn additional returns
• Strong financial position:
- • $2.90bn Bonds1
- • $1.35bn RCF2
- • $2.1bn PF available liquidity3

Strong free cash flow generation ($m)4

Ordinary dividend progression 2014-2019 (¢ per share)

2014

2015

2016

2017

611

Shareholder returns 2003-19 ($bn)

2018

13.6

Asset disposals

Operational cash flows

2019 5

Total

2014

2015

2016

2017

2018

2019

2020

1 Next bond maturity in November 2022 (£173m); 2 Maturity of the $1.35bn RCF extended by 18 months to September 2023; 3 Consists of $2.9bn total available liquidity as of 31 December 2020 and pro forma for the payment of £600m ($0.8bn) of CCFF maturing in March 2021. 4 2017 and 2018 Free Cash Flow Restated for the adoption of IFRS 16; 5 2019 final dividend recommendation withdrawn in response to Covid-19

Substantial liquidity maintained with optimised bond maturity profile

Liquidity profile

• ~$2.1bn pro forma total available liquidity1, comprising ~$0.8bn of net cash on deposit and undrawn RCF of $1.35bn
• Repayment of £600m commercial paper in March 2021 issued under
UK Government's CCFF scheme

• Secured covenant waivers for $1.35bn RCF up to and including December 20212
• Covenant relaxations secured for June 2022 and December 2022

Bond maturity profile

• Staggered bond maturity with no significant maturity until Q4 2022
• Issued €500m 1.625% bonds and £400m 3.375% bonds maturing in 2024 and 2028 respectively
• Concurrently repaid early £227m of our £400m 3.875% bonds maturing in November 2022

611

618

2022

2023

2024

2025

2026

2027

2028

Bond maturity ($m)

Net debt composition

1 Consists of $2.9bn total available liquidity as of 31 December 2020 and pro forma for the payment of £600m ($0.8bn) of CCFF maturing in March 2021. 2 Our customary interest cover and leverage ratio covenants have been replaced by a $400m minimum liquidity covenant (defined as unrestricted cash and undrawn facilities with a remaining term of 6 months) tested at 30 June 2021 and 31 December 2021. Details of covenant levels and performance against these is provided in note 10 to the Group Financial Statements. 3 Includes value of currency swaps hedging long-term debt.

Our strategy for uses of cash remains unchanged

Invest in the	Restore an ordinary	Return surplus
business to	dividend when	funds to
drive growth	responsible to do so	shareholders

Objective of maintaining an investment grade credit rating 2.5x - 3.0x Net Debt : EBITDA1 under normalised conditions

1 On a post IFRS16 basis

Conclusions

- Confident on future growth prospects and our strategic priorities

• Recognition and thanks to all of our colleagues and owners for their efforts in the most challenging conditions and for their dedication to our purpose of True Hospitality for Good
• Delivered outperformance; demonstrated resilience of our business model; launched brands in new markets; continued to invest for future growth
• Long-term confidence reflected in 285 hotel openings and 360 signings
• Industry fundamentals remain strong and IHG is well-placed with preferred brands in attractive markets and segments, together with our strong technology and loyalty platforms
• Clear strategic priorities to achieve our ambition of industry-leading net rooms growth as the market recovers

Holiday Inn - Dubai

Overview of FY 2020 and our strategic objectives

Navigating the Covid-19 crisis effectively, whilst positioning the business for growth

Our response to Covid-19

• Decisive cost action; cash preservation; robust liquidity
• Offering assistance to colleagues and communities
• Providing guests with the confidence to stay through the IHG Clean Promise and flexible booking options
• Supporting owners to help keep hotels open, lower their costs and manage their cash

Results

• (75)% underlying operating profit decline
• $29m free cash flow
• $2.1bn available liquidity2
• No final dividend proposed
• Resilient fee-based business model

Rooms & RevPAR

• +0.3% net growth YoY1 to 886k rooms (5,964 hotels)
• Conversion activity increasing
• (52.5)% Global RevPAR decline; (53.2)% in Q4
• Continued outperformance in key markets

Focusing on growth

• Opened 285 hotels
• Signed 360 hotels; ~25% conversions
• 213 ground breaks
• ~40% of pipeline under construction
• Evolved purpose and strategic priorities

1 +2.2% excluding the impact of SVC portfolio termination; 2 On a pro forma basis for repayment of £600m UK Government CCFF at March 2021 maturity

Weekly RevPAR performance demonstrates the path of recovery for each of our regions

-100%

-80%

IHG 2020 weekly RevPAR performance by region 20%

-20%

-40%

-60%

Jan 20

Feb 20

Mar 20

Apr 20

May 20

Jun 20

Jul 20

Sep 20

Oct 20

Nov 20

Dec 20

AmericasEMEAAGreater China

Group

Cost reductions whilst continued investment in growth

Cost actions

• $150m of temporary Fee Business cost savings in 2020
• Reduction in cost base of owned, leased and managed lease hotels
• Targeting ~$75m to be sustainable into 2021
Continued investment in growth
• Maintained investment in our five newest brands through 2020, which will contribute to future growth as they build scale
• Ongoing deployment of key money

Owner payment profile

Americas invoices paid within 90 days of due date

UnpaidPaid

Jan

FebMarAprMayJunJulAugSept

• We have 2,250+ owners across our ~4,300 Americas hotels
• ~85% of invoices paid within 45 days of due date and ~90% within 75 days of due date

Build loved and trusted brands

- Expanding and enhancing our portfolio to drive growth

2017

• Broadened our brand portfolio with five targeted additions since 2017:
- - High-quality midscale brand avid launched in 2017
- - Acquisition of Regent Hotels & Resorts in March 2018
- - Conversion focussed brand voco launched June 2018
- - Six Senses Hotels Resorts Spas acquired in early 2019
- - New all-suites brand Atwell Suites launched in late 2019
• IHG Hotels & Resorts Masterbrand, IHG Rewards branding, and strengthened positioning of each brand within its segment

2020

Build loved and trusted brands - Scaling up our newest brands

• 89 properties under construction or with plans approved
• 17 openings and 19 signings in the year
• Expansion beyond US with first opening in Mexico and first ground break in Canada
- • Signed nine hotels into our newest all-suites Upper Midscale brand
- • Properties secured in attractive locations such as Denver, Austin and Charlotte
- • Ground broken for first hotel in Miami
- • Brand established in 20+ countries
- • Signed 18 properties; 12 conversions, six new builds
- • Signed and opened first properties in US, including two conversions in New York
• Strongest guest satisfaction across our portfolio in the Americas

• First opening in Greater China

System1	24	-	21
Pipeline1	192	19	30
Chain scale2	Midscale	Upper Midscale	Upscale

1 Hotels. 2 STR classification.

Build loved and trusted brands

- Global roll out of voco continues

voco Hangzhou Binjiang Minghao, Greater China

voco Paris Montparnasse, France

voco The Franklin New York, US

voco Villach, Austria

Build loved and trusted brands

- Holiday Inn Express driving outperformance and strong returns for owners

1 Source: US Holiday Inn Express vs Upper Midscale segment (STR).

• Launched updated Formula Blue 2.0 in Americas with procurement-ready design and delivering >10% cost savings for owners
• 177 hotels with new room designs across Europe, delivering ~5pt premium in guest satisfaction
• Outperformed against the Upper Midscale segment throughout 2020
• Opened 136 hotels, bringing total estate to 2,966
• Signed 132, bringing total pipeline to 683 or >20% of current estate

Build loved and trusted brands

- Continue to invest in and grow across other established brands

• ~60% occupancy and high guest satisfaction through 2020
• New prototype design committed in >80 Candlewood Suites and >100 Staybridge Suites
• Opened 20 Candlewood Suites and 24 Staybridge Suites properties

• Opened three HUALUXE properties, including the rebranding of HUALUXE Shanghai Twelve at Hengshan; signed a further six
• Opened an EVEN Hotel in Greater China, marking the first outside of the Americas

• New build prototype implemented in ~90 hotels across the Americas, delivering 5pt uplift in guest satisfaction
• 'Open Lobby' new public space
already implemented or
committed to in 90% hotels
across Europe

• Renovations delivering uplifts in guest satisfaction
• 10 openings in Greater China to reach portfolio of over 100
• Signed 27 properties, ~25% from conversions

Continued focus on quality and consistency of estates; ~200 hotels (~10-15% of global estate) being reviewed; focused on those that are below where would like them to be in areas such as customer satisfaction and property condition; working closely with owners to help raise overall guest experience, including implementing service or property improvement plans

System1	366	303	12	16	1,248	429
Pipeline1	73	155	25	31	262	89
Chain scale2	Midscale	Upscale	Upscale	Upscale	Upper Midscale	Upscale

1 Hotels. 2 STR classification.

Build loved and trusted brands

- Expanding our Luxury & Lifestyle offering

• Signed seven hotels and opened a property in Turkey in 2020
• New locations include Italy, Japan and Saudi Arabia
• Commitment to community, sustainability and wellness

• Four signings since acquisition taking pipeline to six properties
• Conversion of Regent Shanghai Pudong completed in 45 days
• Regent Hong Kong renovation progressing

• Largest global luxury hotel brand with presence in over 60 countries
• Entering its 75th anniversary year
• Return to Italy and Morocco
• Chiang Mai and Fiji key conversions

• Global presence secured in 15 countries, including new openings in Mexico, Thailand and Japan
• Growth of resort portfolio with signing of Mallorca
• Signed eight hotels, including four in the US

• Opened 10 properties in 2020, including five in the US
• Firsts for the brand in Japan and Cyprus
• Signed entry of the brand in Australia

System1	16	7	205	73	125
Pipeline1	31	6	69	32	104
Chain scale2	Luxury	Luxury	Luxury	Upper Upscale	Upper Upscale

1 Hotels. 2 STR classification.

Build loved and trusted brands

- Continuing to enhance our Luxury & Lifestyle offer to guests and owners

Six Senses Kocatas Mansions, Istanbul

Hotel Indigo Larnaca, Cyprus

Regent Shanghai Pudong, Greater China

InterContinental Chongqing, Greater China

Hotel Indigo Bath, UK

Kimpton Hotel Fontenot, New Orleans, US

Customer centric in all we do

Guests

Owners

Create digital advantage

- Continuing to invest in our digital-first approach

• Attribute pricing initial pilot conducted in each region in 2020; full roll-out expected by end 2021
• Pilots demonstrating to owners the ability to generate maximum value from their hotel's unique attributes

• Digital check-in at >1,000 hotels and receiving strong guest satisfaction scores; targeting 4,500 live hotels by end 2021; digital check-out already in 4,000 hotels
• IHG Studio integrated in-room entertainment and guest service live in ~100 hotels

• Owner portal providing real-time scorecard metrics, allowing owners to rapidly respond
• Hotel Lifecycle System enabling enhanced reporting and maximising owner returns by accelerating signings to openings

Care for our people, communities and planet

- 2030 Responsible Business ambitions and commitments

Champion a diverse culture where everyone can thrive

Improve the lives of 30 million people in our communities around the world

Reduce our energy use and carbon emissions in line with climate science

Pioneer the transformation to a minimal waste hospitality industryConserve water and help secure water access in those areas at greatest risk

• Drive gender balance and a doubling of under- represented groups across our leadership
• Cultivate an inclusive culture for our colleagues, owners and suppliers
• Support all colleagues to prioritise their wellbeing and the wellbeing of others

• Drive respect for and advance human rights

• Drive economic and social change through skills training and innovation
• Support our communities when natural disasters strike
• Collaborate to aid those facing food poverty

• Implement a 2030 science based target that delivers:
- - 15% absolute reduction in our direct operations
- - 46% per m2 reduction in franchise operations
• Target 100% new build hotels to operate at very low / zero carbon emissions by 2030
• Maximise / optimise the role of renewable energy

• Eliminate single use items, or move to reusable or recyclable alternatives across the guest stay
• Minimise food going to waste through a "prevent, donate, divert" plan
• Collaborate to achieve circular solutions for major hotel commodity items

• Implement tools to reduce the water footprint of our hotels
• Mitigate water risk through stakeholder collaboration to deliver water stewardship at basin level

• Collaborate to ensure adequate water, sanitation, and hygiene (WASH) conditions for our operating communities

voco Hangzhou Binjiang Minghao, Greater China

Appendices

Financial performance

Results from reportable segments1	Reported	Underlying2
$ million	FY 2020	FY 2019	% Change	FY 2020
Revenue3	$992m	$2,083m	(52)%	(52)%
Operating profit	$219m	$865m	(75)%	(75)%
Revenue from fee business	$823m	$1,510m	(45)%	(45)%
Operating profit from fee business	$278m	$813m	(66)%	(65)%
Fee margin4	34.1%	54.1%	(20.0)%pts
Adjusted interest5	$130m	$133m	(2)%
Reported tax rate6	38%	24%	14%pts
Adjusted EPS7	31.3¢	303.3¢	(90)%
Total dividend	-	39.9¢	(100)%

1 Reportable segments excludes System Fund results, hotel cost reimbursements and exceptional items. 2 Reportable segment results excluding significant liquidated damages, current year disposals and stated at constant 2020 exchange rates (CER).

3 Comprises the Group's fee business and owned, leased and managed lease hotels. 4 Excludes owned, leased and managed lease hotels, significant liquidated damages and the results of the Group's captive insurance company. 5 Adjusted interest adds back $4m of interest charges in relation to the System Fund and excludes exceptional items. 6 The Group's reported effective tax rate, before exceptional items and the System Fund results. 7 Calculated using results from Reportable Segments and Adjusted interest, and excluding changes in fair value of contingent purchase consideration.

Fee-based business model shows relative resilience in spite of RevPAR downturn

FY 2020 fee revenue: $823m, down 45%1 and 45% underlying2

RevPAR

Rooms

FY 2020 Group comparable RevPAR growth

FY 2020 system growth (%YoY)

4.5%

• 39k rooms opened
-17.0%
• 37k3 rooms removed

Royalty Rate

-29.5%pts

ADROccupancy

0.3%

-52.5%

Gross

Net

RevPAR

(52.7)% Total RevPAR growth4

+3.6% Growth in available rooms4

¹ Growth stated at AER. ² Underlying fee revenue excludes owned, leased and managed lease hotels, significant liquidated damages, current year disposals and stated at constant 2020 exchange rates (CER). 3 Removals include 2.1k rooms relating to a previously flagged hotel portfolio in Germany and 16.7k rooms relating to the termination of a portfolio of hotels owned by SVC. 4 Growth stated for underlying fee business.

Americas

US RevPAR outperformance in the segments in which we compete

• RevPAR down 48.5%; US down 46.9%
• Q4 US RevPAR down 47.4%
- Franchised estate down 43% and Managed estate down 79%
- Midscale/Upper Midscale and Extended Stay most resilient segments
• YoY net rooms growth (2.0)% (gross: +3.2%)
- Net rooms growth +1.1% (before 16.7k rooms from SVC termination)
- Development continued with 136 ground breaks, 24 in Q4

• Underlying fee revenue1 down 46% ($391m), underlying fee operating profit2 down 51% ($336m):

Impact from lower demand across Managed estate resulting in $8m lower incentive management fees largely offset by fee business cost savings, an $8m payroll tax credit benefit and a $4m litigation settlement benefit

• Owned, leased and managed lease profit down $64m to a loss of $27m, impacted by the temporary closure of a number of hotels
• Pipeline: 103k rooms; 14k signed
• Signings include 50 Holiday Inn Express, 19 avid, 9 Atwell Suites and 3 voco hotels

FY 2020 growth in fee revenue drivers1

-2.0%

-46.1%
-48.5%
RevPAR	Net rooms	Fee revenue

FY 2020 net rooms growth ('000s)

525

FY 2019

514

Exits

Openings

FY 2020

1 Underlying fee revenue excludes owned, leased and managed lease hotels, significant liquidated damages, current year disposals and stated at constant 2020 exchange rates (CER). 2 Underlying fee operating profit excludes owned, leased and managed lease hotels, significant liquidated damages and current year disposals at CER.

Europe, Middle East, Asia & Africa

Difficult trading conditions with closures and travel restrictions

• RevPAR down 64.8% (Q4 down 70.5%)
• Q4: Impacted by lockdown measures, particularly UK (down 74%) and Continental Europe (down 86%); Middle East down 56%; Australasia & Japan down 53%
• 83% of the estate open as of the end of January

• YoY net rooms growth +2.0% (gross: +5.1%)
• Removals include 2.1k rooms relating to a previously flagged hotel portfolio in Germany
FY 2020 growth in fee revenue drivers1
2.0%
-64.8%
-67.5%
RevPAR
Net rooms
Fee revenue1
• Underlying fee revenue1 down 67% ($220m) and underlying fee operating profit2 down $211m to a loss of $19m, impacted by $76m lower incentive management fee income

• Owned, leased and managed lease loss of $32m; hotel closures partially offset by: significant cost reduction measures; rent reductions; $3m of disposal gains
• Rental payments relating to UK and German leased hotels now fully variable through the income statement; no lease liability or right-of-use asset on the balance sheet
• Pipeline: 76k rooms; 14k signed
• Signings include 5 Six Senses, 1 Regent, 10 Hotel Indigo and 10 voco hotels

FY 2020 net rooms growth ('000s)

228

223 11

FY 2019

ExitsOpeningsFY 2020

Greater China

Occupancy levels recovered to ~60% in Q4

• RevPAR down 40.5% (Q4 down 18.2%)
- • Mainland China down 37% (Q4 down 15%)
  - • Tier 1 RevPAR down 48% (Q4 down 28%)
  - • Tier 2-4 RevPAR down 31% (Q4 down 8%)
- • Hong Kong SAR down 78% (Q4 down 52%)
• YoY net rooms growth 6.4% (gross: up 8.4%)
• Underlying fee revenue1 down 44% ($60m) and operating profit2 down $38m to $35m, driven by $32m lower incentive management fee income
• Pipeline: 93k rooms; 28k rooms signed
- • 85 franchise agreements signed across Crowne Plaza, Holiday Inn and Holiday Inn Express
- • Opened first voco hotel with two further signings

FY 2020 growth in fee revenue drivers1

6.4%

-40.5%
-43.8%
RevPAR	Net rooms	Fee revenue1

FY 2020 net rooms growth ('000s)

144

FY 2019

11 136

(3)

ExitsOpeningsFY 2020

Growth rate analysis

RevPAR growth % Net rooms growth % FY 2020 ComparableTotal2 YoY Available2 Underlying Fee Revenue1 Growth %	Comments
Hotels that have traded in all months being compared (i.e. steady state)All hotels that were open in FY 2020 and FY 2019 (incl hotels that are ramping up) 30 December 2020 vs 2019 Aggregate number of rooms available for sale in FY 2020 vs FY 2019
Americas (48.5)%	(48.0)%	(2.0)%	2.1%	(46.1)%	• Fee revenue growth impacted by lower levels of incentive management fee income
EMEAA (64.8)%	(65.0)%	2.0%	3.1%	(67.5)%
Greater China (40.5)%	(44.0)%	6.4%	10.7%	(43.8)%
Total (52.5)%	(52.7)%	0.3%	3.6%	(45.0)%

1 Underlying fee revenue and excludes owned, leased and managed lease hotels, significant liquidated damages, current year disposals, System Fund results and hotel cost reimbursements at constant 2020 exchange rates (CER).
2 Underlying fee business Total RevPAR and available rooms.

Fee margin1 by region

Americas

Europe, Middle East, Asia and Africa

FY 2020

FY 2019

FY 2020

-17.9%FY 2019

58.6%

Greater China

Total IHG

FY 2020

FY 2019

54.1%

FY 2020

FY 2019

54.1%

1 Fee margin excludes owned, leased and managed lease hotels, significant liquidated damages and the results of the Group's captive insurance company; is stated at AER.

For Americas, consists of fee business revenue and operating profit of $457m (2019: $853m) and $323m (2019: $663m) respectively. For Europe, Middle East, Asia and Africa consists of fee business revenue and operating profit as adjusted for significant liquidated damages of $106m (2019: $326m) and $(19)m (2019: $191m) respectively. For Greater China consists of fee business revenue and operating profit of $77m (2019: $135m) and $35m (2019: $73m) respectively.

Revenue and operating profit 2019-2020

Actual US$

Fee Business

Owned, Leased & Managed Leases Total Americas

Fee Business

Owned, Leased & Managed Leases

Total EMEAA

Fee Business

Total Greater China

Central Results

Total Reportable Segments

Reimbursement of Costs System Fund

Total IHG

Total Revenue

Full Year

2020

2019

457 853

55 187

512

1,040

107 337

114 386

221

723

135

182

185

992

2,083

637 1,171

765 1,373

2,394

4,627

Total Operating Profit

Full Year

2020

2019

323 663

(27) 37

296

700

(18) 202

(32) 15

(50)

217

(62)

(125)

219

865

- (102)

- (49)

117

816

Currency translation

Region1	Reportable Segments Reported FY 2020 vs FY 2019 rates2	Reportable Segments FY 2020 at average Jan 2021 rate vs reported FY 20203
Revenue	EBIT	Revenue	EBIT
Americas	$(1)m	-	$1m	-
EMEAA	$1m	$(1)m	$10m	-
Greater China	$2m	$2m	$4m	$1m
Central Overheads	-	-	$2m	$(3)m
Total IHG	$2m	$1m	$17m	$(2)m

1 Major non USD currency exposure by region (Americas: Canadian Dollar, Mexican Peso; EMEAA: British Pound, Euro, Russian Rouble, Japanese Yen, Singapore Dollar; Greater China: Chinese Renminbi; Central: British Pound). 2 Based on monthly average exchange rates each year. 3 Jan average rates: 0.73 USD:GBP; 0.82 USD:EUR.

2020 notable items

2020 items

Payroll tax credits	Americas	$8m
Litigation settlement in relation to a single hotel	Americas	$4m
Individually significant Liquidated Damages1	EMEAA	$1m
Gain on disposal of Holiday Inn Melbourne Airport	EMEAA	$3m

1 In February 2018, IHG received liquidated damages totalling $15m relating to the termination of a portfolio of 13 open hotels (2k rooms) and 6 pipeline hotels (1k rooms) in Germany, which exited IHG's system in Q1 2020.

Exceptional items

Market Closed - London S.E. Other stock markets 11:35:06 2024-04-24 am EDT			5-day change	1st Jan Change
8,120 ^GBX	+1.53%		+4.56%	+14.53%

Apr. 24	European Equities Traded in the US as American Depositary Receipts Trend Lower in Wednesday Trading	MT
Apr. 21	InterContinental Hotels Group Opens New Property in Abu Dhabi	MT

$m	12 months to 31 Dec 2020	12 months to 31 Dec 2019
Operating profit from reportable segments1	219	865
System Fund result2 Depreciation & amortisation3 System Fund impairment charges Working capital & other movements Loyalty programme deferred revenue net movement Equity-settled share-based cost Retirement benefit contributions, net of cost Purchase of shares by employee share trusts Cash flows relating to exceptional items4 Net interest paid & similar charges Tax paid5 Principal element of lease payments Capital expenditure: key money Capital expenditure: maintenance	(82) 172 41 68 12 32 (3) - (87) (130) (41) (65) (64) (43)	(21) 170 - (82) 52 42 (3) (5) (55) (107) (141) (59) (61) (86)
Free cash flow	29	509
1. Before System Fund result and exceptional items. 2. System Fund result stated before exceptional cost of $20m relating to the Group reorganisation. 2019 includes $28m in relation to efficiency programme. 3. Includes System Fund depreciation & amortisation of $62m (12 months to 31 December 2019 $54m). 4. Includes $45m relating to reorganisation ($15m in relation to the System Fund). 2019 includes $46m in relation to the efficiency programme ($28m in relation to the System Fund). 5. Excludes tax paid on disposals.

$m	12 months to 31 Dec 2020	12 months to 31 Dec 2019
Free cash flow	29	509
Capital expenditure: Recyclable investments Capital expenditure: System Fund investment Acquisitions Payment of contingent purchase consideration Distributions from associates and joint ventures Disposal receipts and repayments of other financial assets Ordinary dividend Special dividend Dividends paid to non-controlling interests Currency swap proceeds Transaction costs relating to shareholder returns	(6) (35) - - 5 18 - - - 3 -	(19) (98) (292) (8) - 4 (211) (510) (1) - (1)
Net cash inflow/(outflow)	14	(627)
Exchange, lease repayments & other non-cash items	122	(73)
Opening net debt	(2,665)	(1,965)
Closing net debt	(2,529)	(2,665)

European Equities Traded in the US as American Depositary Receipts Trend Lower in Wednesday Trading	Apr. 24	MT
InterContinental Hotels Group Opens New Property in Abu Dhabi	Apr. 21	MT
Intercontinental Hotels Introduces Apple's AirPlay in North American Hotels	Apr. 18	MT
IHG Hotels & Resorts Launches Apple Airplay in North American Hotels	Apr. 18	CI
Caliber Hospitality Trust Inc. acquired Holiday Inn Newport News from InterContinental Hotels Group PLC.	Apr. 14	CI
Google Deploys Generative AI Technology in Several Collaborations	Apr. 09	MT
IHG Hotels & Resorts Builds a New Travel Planner Powered by Google Cloud AI	Apr. 09	CI
London stocks edge higher with economic data in focus	Apr. 04	RE
London stocks edge higher with economic data in focus	Apr. 04	RE
Sector Update: Consumer Stocks Edge Higher in Late Afternoon Trading	Mar. 13	MT
Intercontinental Hotels Group Shares Fall After Downgrade From Jefferies	Mar. 13	MT
Accor: share price rises, analyst upgrades to buy	Mar. 13	CF
INTERCONTINENTAL HOTELS : Jefferies downgrades its recommendation	Mar. 13	CF
Not a care in the world	Mar. 13
Jefferies Downgrades InterContinental Hotels Group to Hold from Buy, Boosts PT	Mar. 13	MT
Bernstein Downgrades InterContinental Hotels Group to Underperform from Market Perform	Mar. 13	MT
Jefferies Downgrades Intercontinental Hotels Group to Hold From Buy	Mar. 13	MT
ANALYST RECOMMENDATIONS : Broadcom, Tesla, Walmart, Entain, Virgin Money UK	Mar. 13
JPMorgan raises Flutter and cuts Entain	Mar. 13	AN
JPMorgan Raises InterContinental Hotels PT, Affirms at Underweight	Feb. 28	MT
Berenberg Boosts InterContinental Hotels PT, Keeps Hold Rating	Feb. 28	MT
Berenberg, JPMorgan raise price target for IHG	Feb. 28	AN
Reckitt revenue misses; Halfords profit warning	Feb. 28	AN
Barclays Boosts InterContinental Hotels Group PT, Affirms Equalweight Rating	Feb. 23	MT
Barclays raises Breedon but cuts Domino's Pizza	Feb. 23	AN

Intercontinental Hotels Group PLC

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Sector Other Hotels, Motels & Cruise Lines

	1st Jan change	Capi.
INTERCONTINENTAL HOTELS GROUP PLC	+14.53%	16.17B
MARRIOTT INTERNATIONAL, INC.	+8.23%	69.09B
HILTON WORLDWIDE HOLDINGS INC.	+12.42%	49.53B
ACCOR	+21.82%	10.84B
THE INDIAN HOTELS COMPANY LIMITED	+38.81%	10.3B
MINOR INTERNATIONAL	+11.02%	4.99B
HILTON GRAND VACATIONS INC.	+11.47%	4.68B
ASSET WORLD CORP	+21.91%	3.83B
MARRIOTT VACATIONS WORLDWIDE CORPORATION	+21.53%	3.58B
EIH LIMITED	+82.24%	3.51B