XML 369 R13.htm IDEA: XBRL DOCUMENT
v3.20.4

Revenue | 12 Months Ended
--- | ---
Dec. 31, 2020
Text block [abstract] |
Revenue | 3. Revenue Disaggregation of revenue The following table presents Group revenue disaggregated by type of revenue stream and by reportable segment:
Year ended 31 December 2020 |  | Americas $m |  |  | EMEAA $m |  |  | Greater China $m |  |  | Central $m |  |  | Group $m |
Franchise and base management fees |  |  | 452 |  |  |  | 93 |  |  |  | 61 |  |  |  | — |  |  |  | 606 |
Incentive management fees |  |  | 5 |  |  |  | 14 |  |  |  | 16 |  |  |  | — |  |  |  | 35 |
Central revenue |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 182 |  |  |  | 182 |
Revenue from fee business |  |  | 457 |  |  |  | 107 |  |  |  | 77 |  |  |  | 182 |  |  |  | 823 |
Revenue from owned, leased and managed lease hotels |  |  | 55 |  |  |  | 114 |  |  |  | — |  |  |  | — |  |  |  | 169 |
|  |  | 512 |  |  |  | 221 |  |  |  | 77 |  |  |  | 182 |  |  |  | 992 |
System Fund revenues (note 33) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 765 |
Reimbursement of costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 637 |
Total revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,394 |
Following communication with the IHG Owners Association, fees and expenses associated with the InterContinental Ambassador programme (the InterContinental Hotels & Resorts paid-for loyalty programme) previously reported within Central revenue have been moved into the System Fund to align with the treatment of IHG’s other brand loyalty programmes. Revenue arising from the licence of intellectual property under co-brand credit card agreements previously recorded within the System Fund is now recorded within Central revenue (see page 139). This change is effective from 1 January 2020. For the year ended 31 December 2020, this change resulted in an increase of $20m to Central revenue and $21m to operating profit from reportable segments, and an equivalent reduction to System Fund revenues and increase to System Fund operating loss. Had this arrangement existed in the prior year, Central revenue and operating profit in 2019 would have been $18m and $22m higher respectively (2018: $15m and $20m respectively); System Fund revenues would have reduced and System Fund operating loss would have increased by the same amounts.
Year ended 31 December 2019 |  | Americas $m |  |  | EMEAA $m |  |  | Greater China $m |  |  | Central $m |  |  | Group $m |
Franchise and base management fees |  |  | 840 |  |  |  | 247 |  |  |  | 87 |  |  |  | — |  |  |  | 1,174 |
Incentive management fees |  |  | 13 |  |  |  | 90 |  |  |  | 48 |  |  |  | — |  |  |  | 151 |
Central revenue |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 185 |  |  |  | 185 |
Revenue from fee business |  |  | 853 |  |  |  | 337 |  |  |  | 135 |  |  |  | 185 |  |  |  | 1,510 |
Revenue from owned, leased and managed lease hotels |  |  | 187 |  |  |  | 386 |  |  |  | — |  |  |  | — |  |  |  | 573 |
|  |  | 1,040 |  |  |  | 723 |  |  |  | 135 |  |  |  | 185 |  |  |  | 2,083 |
System Fund revenues (note 33) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,373 |
Reimbursement of costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,171 |
Total revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,627 |
Year ended 31 December 2018 |  | Americas $m |  |  | EMEAA $m |  |  | Greater China $m |  |  | Central $m |  |  | Group $m |
Franchise and base management fees |  |  | 835 |  |  |  | 227 |  |  |  | 94 |  |  |  | — |  |  |  | 1,156 |
Incentive management fees |  |  | 18 |  |  |  | 93 |  |  |  | 49 |  |  |  | — |  |  |  | 160 |
Central revenue |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 170 |  |  |  | 170 |
Revenue from fee business |  |  | 853 |  |  |  | 320 |  |  |  | 143 |  |  |  | 170 |  |  |  | 1,486 |
Revenue from owned, leased and managed lease hotels |  |  | 198 |  |  |  | 249 |  |  |  | — |  |  |  | — |  |  |  | 447 |
|  |  | 1,051 |  |  |  | 569 |  |  |  | 143 |  |  |  | 170 |  |  |  | 1,933 |
System Fund revenues (note 33) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,233 |
Reimbursement of costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,171 |
Total revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,337 |
Contract balances
|  | 2020 $m |  |  | 2019 $m |
Trade receivables (note 18) |  |  | 309 |  |  |  | 515 |
Contract assets |  |  | 336 |  |  |  | 334 |
Deferred revenue |  |  | (1,569 | ) |  |  | (1,564 | )
A trade receivable is recorded when the Group has an unconditional right to receive payment. In respect of franchise fees, base and incentive management fees, Central revenue and revenues from owned, leased and managed lease hotels, the invoice is typically issued as the related performance obligations are satisfied, as described on page 138. Contract assets Contract assets are recorded in respect of key money payments; the difference, if any, between the initial face and market value of loans made to owners; and the value of payments under performance guarantees.
|  | 2020 $m |  |  | 2019 $m |
At 1 January |  |  | 334 |  |  |  | 290 |
Costs paid |  |  | 74 |  |  |  | 64 |
Recognised as a deduction to revenue |  |  | (25 | ) |  |  | (22 | )
Impairment charges |  |  | (53 | ) |  |  | — |
Repayments |  |  | — |  |  |  | (1 | )
Exchange and other adjustments |  |  | 6 |  |  |  | 3 |
At 31 December |  |  | 336 |  |  |  | 334 |
Analysed as: |  |  |  |  |  |  |  |
Current |  |  | 25 |  |  |  | 23 |
Non-current |  |  | 311 |  |  |  | 311 |
|  |  | 336 |  |  |  | 334 |
Key money is recognised as a contract asset when the trigger event for payment is met and payment becomes unconditional. The Group also has future commitments for key money payments which are contingent upon future events and may reverse. At 31 December 2020, the amount of performance guarantees included within trade and other payables was $1m (2019: $2m) and the maximum payout remaining under such guarantees was $72m (2019: $85m). In estimating amounts due under performance guarantees, the Group has considered ‘force majeure’ provisions within its management agreements. Impairment of contract assets relates primarily to deposits made to SVC of $33m (see page 137). The remaining impairment of $20m relates to key money and performance guarantee payments on individual properties which are supported by future franchise and management fees. As a result of the expected impact of Covid-19 and the subsequent recovery period on trading, all significant contract assets were tested for impairment using cash flow projections which reflect the five-year RevPAR recovery period outlined on page 135. The key assumptions are the RevPAR growth forecasts and the pre-tax discount rates used, which were 8.4%-9.3% for Americas, 9.5%-10.4% for Europe, 14.1% for other EMEAA and 13.3% for Greater China. Of the total impairment including SVC balances, $42m relates to the Americas region and $11m relates to the EMEAA region. Deferred revenue Deferred revenue is recognised when payment is received before the related performance obligation is satisfied. The main categories of deferred revenue relate to the loyalty programme, co-branding agreements and franchise application and re-licensing fees.
|  | Loyalty programme $m |  |  | Other co-brand fees $m |  |  | Application & re-licensing fees $m |  |  | Other $m |  |  | Total $m |
At 1 January 2019 |  |  | 1,181 |  |  |  | 77 |  |  |  | 175 |  |  |  | 73 |  |  |  | 1,506 |
Acquisition of businesses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | 2 |
Increase in deferred revenue |  |  | 533 |  |  |  | — |  |  |  | 26 |  |  |  | 64 |  |  |  | 623 |
Recognised as revenue |  |  | (481 | ) |  |  | (11 | ) |  |  | (25 | ) |  |  | (49 | ) |  |  | (566 | )
Exchange and other adjustments |  |  | — |  |  |  | — |  |  |  | (4 | ) |  |  | 3 |  |  |  | (1 | )
At 31 December 2019 |  |  | 1,233 |  |  |  | 66 |  |  |  | 172 |  |  |  | 93 |  |  |  | 1,564 |
Increase in deferred revenue |  |  | 344 |  |  |  | — |  |  |  | 14 |  |  |  | 45 |  |  |  | 403 |
Recognised as revenue |  |  | (332 | ) |  |  | (11 | ) |  |  | (20 | ) |  |  | (39 | ) |  |  | (402 | )
Exchange and other adjustments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | 4 |
At 31 December 2020 |  |  | 1,245 |  |  |  | 55 |  |  |  | 166 |  |  |  | 103 |  |  |  | 1,569 |
Analysed as: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 376 |  |  |  | 11 |  |  |  | 22 |  |  |  | 43 |  |  |  | 452 |
Non-current |  |  | 869 |  |  |  | 44 |  |  |  | 144 |  |  |  | 60 |  |  |  | 1,117 |
|  |  | 1,245 |  |  |  | 55 |  |  |  | 166 |  |  |  | 103 |  |  |  | 1,569 |
At 31 December 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 476 |  |  |  | 11 |  |  |  | 25 |  |  |  | 43 |  |  |  | 555 |
Non-current |  |  | 757 |  |  |  | 55 |  |  |  | 147 |  |  |  | 50 |  |  |  | 1,009 |
|  |  | 1,233 |  |  |  | 66 |  |  |  | 172 |  |  |  | 93 |  |  |  | 1,564 |
This table does not include amounts which were received and recognised as revenue in the same year. Amounts recognised as revenue were included in deferred revenue at the beginning of the year. Loyalty programme revenues, shown gross in the table on the previous page, are presented net of the corresponding redemption cost in the Group income statement. Other deferred revenue includes technical service fees and guest deposits received by owned, leased and managed lease hotels. Transaction price allocated to remaining performance obligations The Group has applied the practical expedient in IFRS 15 not to disclose the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied or partially unsatisfied as at the end of the reporting period for all amounts where the Group has a right to consideration in an amount that corresponds directly with the value to the customer of the Group’s performance completed to date (including franchise and management fees). Amounts received and not yet recognised related to performance obligations that were unsatisfied at 31 December 2020 are as follows:
|  | 2020 |  |  | 2019 |
Expected timing of recognition |  | Loyalty and co-brand $m |  |  | Other $m |  |  | Total $m |  |  | Loyalty and co-brand $m |  |  | Other $m |  |  | Total $m |
Less than one year |  |  | 387 |  |  |  | 65 |  |  |  | 452 |  |  |  | 487 |  |  |  | 68 |  |  |  | 555 |
Between one and two years |  |  | 313 |  |  |  | 40 |  |  |  | 353 |  |  |  | 292 |  |  |  | 34 |  |  |  | 326 |
Between two and three years |  |  | 249 |  |  |  | 29 |  |  |  | 278 |  |  |  | 176 |  |  |  | 30 |  |  |  | 206 |
Between three and four years |  |  | 176 |  |  |  | 24 |  |  |  | 200 |  |  |  | 115 |  |  |  | 27 |  |  |  | 142 |
Between four and five years |  |  | 73 |  |  |  | 22 |  |  |  | 95 |  |  |  | 79 |  |  |  | 27 |  |  |  | 106 |
More than five years |  |  | 102 |  |  |  | 89 |  |  |  | 191 |  |  |  | 150 |  |  |  | 79 |  |  |  | 229 |
|  |  | 1,300 |  |  |  | 269 |  |  |  | 1,569 |  |  |  | 1,299 |  |  |  | 265 |  |  |  | 1,564 |
Contract costs Movements in contract costs, typically developer commissions, are as follows:
|  | 2020 $m |  |  | 2019 $m |
At 1 January |  |  | 72 |  |  |  | 60 |
Costs incurred |  |  | 11 |  |  |  | 19 |
Amortisation |  |  | (9 | ) |  |  | (7 | )
Exchange and other adjustments |  |  | 1 |  |  |  | — |
At 31 December |  |  | 75 |  |  |  | 72 |
Analysed as: |  |  |  |  |  |  |  |
Current |  |  | 5 |  |  |  | 5 |
Non-current |  |  | 70 |  |  |  | 67 |
|  |  | 75 |  |  |  | 72 |
Contract costs were tested for impairment during the year. As contract costs typically constitute a very small percentage of deal value, no impairment was identified.

X
- Definition The entire disclosure for revenue from contracts with customers. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 15 -IssueDate 2020-01-01 -Section Presentation -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=15&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IFRS15_g105-109_TI -URIDate 2020-01-01 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 15 -IssueDate 2020-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=15&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IFRS15_g110-129_TI -URIDate 2020-01-01 + Details
Name: | ifrs-full_DisclosureOfRevenueFromContractsWithCustomersExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Text block [abstract] + References No definition available. + Details
Name: | ihg_TextBlockAbstract
Namespace Prefix: | ihg_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration