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Ann
ual Repor
t and F
orm 2
0
-
F
20
2
1
T
ru
e
H
o
s
p
it
a
lit
y
fo
r
G
o
o
d
O
ur
p
ur
p
o
s
e
i
s
to
p
rov
i
d
e
T
r
u
e
Hospit
a
lit
y
fo
r
G
o
o
d
.
I
t sha
pes our c
ul
t
ur
e
, br
ing
s
ou
r br
ands t
o l
i
f
e an
d r
epr
esen
ts
a com
mi
t
men
t t
o ma
k
e a
di

er
ence t
o ou
r peopl
e, g
uest
s
an
d com
mu
ni
t
ies, a
nd pr
o
t
ect
t
he w
or
ld ar
ou
nd us
.
List
enin
g a
nd
en
ga
ging
with o
ur
st
ak
eholders, t
oget
her we w
or
k
t
o
w
ar
ds common goals th
a
t
hel
p ensu
r
e we c
r
ea
t
e shar
ed
value f
or
all.
F
ron
t co
ver
middle
image:
Ho
lid
ay Inn E
xpre
ss
® & Suite
s Qu
ee
nstown
, New Ze
ala
nd
Hote
l Ind
igo
® Ade
lai
de Ma
rkets, Au
stral
ia
Strategic Rep
ort
2
20
21 in r
eview
4
Ch
air
’s state
me
nt
6
Chief Executiv
e Oicer’s re
view
8
In
du
st
ry over
vi
ew
10
Ou
r bu
sin
es
s mo
de
l
14
T
ren
ds s
ha
pin
g our i
nd
ust
ry
16
Ou
r str
ateg
y
32
T
as
k Forc
e on cl
ima
te-
re
late
d i
nan
ci
al di
sc
lo
sur
es (
TCFD)
36
How I
HG do
e
s bu
sin
es
s
40
Our r
isk ma
nagement
48
Viability sta
tement
50
Key per
form
an
ce i
ndi
cato
rs (K
PIs)
54 Performance
54
Chief Financ
ial Oice
r’s
review
55 G
roup
63 Americas
66
Euro
pe, M
iddl
e Ea
st, A
sia & Af
ric
a (EM
EA
A)
69
Gre
ater C
hin
a
72 Ce
ntral
73
Key p
er
form
anc
e me
asu
res (in
clu
ding N
on
-
GA
AP)
Gove
rn
an
ce
80
Cha
ir’s over
view
82
Our Bo
ard o
f Dir
ec
tors
86
Ou
r Exec
uti
ve Co
mmi
tte
e
88
G
overna
nc
e str
uct
ure
89
Bo
ard a
ctiv
itie
s
89
M
atte
rs di
sc
uss
ed i
n 202
1 an
d Se
ctio
n 172 St
atem
ent
92
Our sh
areh
ol
der
s and inve
sto
rs
93
Director appointments and induction
94
Bo
ard d
evelo
pme
nt an
d ee
ctive
ne
ss eva
luat
ion
95
Au
dit C
om
mit
tee Re
po
rt
10
0
Res
po
ns
ibl
e Bu
si
ne
ss C
om
mit
tee Re
po
rt
102
Nomination Committ
ee Report
104
Directors’
Remunerati
on Report
126
Stateme
nt of complian
ce
Group Financial Stat
ements
130
Statement of Direc
tors’ Respon
sibilities
131
In
dep
en
de
nt Au
dito
r’s UK Rep
or
t
138
Independent A
udit
or’
s US R
eport
142
Group Financial Statements
149
Accounti
ng policies
157
New accounting
standards
15
8
Note
s to t
he G
rou
p Fin
anc
ial S
tat
em
ent
s
Parent
Company Financial
Statements
208
Parent
Company Financial
Statements
208
Parent
Company stat
ement of
inancial position
20
9
Pare
nt C
omp
any st
ate
me
nt of c
han
ge
s in e
qui
ty
210
Note
s to th
e Par
ent C
om
pa
ny Fina
nc
ial S
tate
me
nt
s
Addition
al Information
218
Oth
er 
in
anc
ial i
nfo
rmat
ion
226
Directors’
Report
231
Group inf
ormation
243
Shareholder
informat
ion
250 Exhibits
251
Forward-looking sta
tements
252
Form 20

F cro
ss
-r
efer
en
ce gu
id
e
255 Glossar
y
257
U
sef
ul inf
orm
atio
n
The S
trate
gic R
ep
or
t on pa
ge
s 2 to 7
7 was a
pprove
d
by the B
oa
rd on 2
1 Febr
uar
y 20
2
2.
Nic
ol
ett
e Hen
frey
, Co
mp
any Se
cret
ar
y
Ou
r pr
e
senc
e
IHG
®
Hot
els & R
esorts is a g
loba
l hospi
ta
li
ty
compan
y
, wit
h 17 ho
t
el brands and one
of t
he indus
t
ry
’
s lar
gest l
o
y
al
ty pr
ogr
ammes
.
W
e hav
e nearl
y 6,000 open hot
els in m
or
e
th
an 100 cou
nt
ries and a f
ur
t
her 1
,800 hot
els
in our de
velopment pi
peline
.
See p
age
s 17 an
d 18
Ou
r f
ocus
W
e focu
s on o
erin
g gues
ts g
r
eat cho
ice
, r
ew
ar
ds
and e
xperi
ences, whil
e cont
inuou
sly de
v
eloping
and inv
esting
in our
pe
op
le, o
perations,
sustaina
bility
,
t
echnolog
y and desi
gn
, in or
der t
o dri
ve dema
nd,
perf
orm
ance a
nd r
etu
rn f
or our hot
el owner
s.
See p
age
s 19 to 3
5
Ou
r busi
ness model
W
e mainl
y fr
anch
ise an
d mana
ge ho
t
els, wh
ich
al
lo
ws us t
o foc
us on in
cr
easing f
ee r
e
v
enues a
nd
f
e
e mar
gins, w
it
h limi
t
ed r
equi
r
ement
s f
or capit
al.
L
ed b
y our s
tr
a
t
egic pr
ior
it
ies, we g
r
ow ou
r busi
ness
b
y ensuri
ng our bra
nds meet consumer demand
and gener
at
e str
ong re
tu
rns f
or hot
el owners.
See p
age
s 10 to 13
Our k
ey stak
eholde
rs
Shareholders
and in
vest
ors
Hot
el ow
ners
Hotel guests
Our
people
Com
munity
Suppliers
See p
age
s 20 to 28
, 39, 9
2, 10
1, 107, 108, 11
2 to 114 for inf
orma
tion a
bou
t how
we have e
nga
ge
d with o
ur st
akeh
old
ers d
urin
g 202
1.
1
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Contents
Tho
ug
h t
he pa
ndem
ic a
ga
in t
est
ed our i
ndus
t
ry
,
ou
r r
esil
ien
t bus
iness m
odel an
d people
’
s desi
r
e
f
or tr
a
vel ha
ve shone st
r
ongly
. Alongside a f
ocus
on o
eri
ng gr
ea
t gues
t ex
p
er
iences and e
xpert
ow
ner suppor
t, we ar
e
bui
lding a st
r
onger
, mor
e
ag
il
e comp
an
y
, i
n
v
est
ing i
n ou
r br
ands
, sus
tai
na
ble
opera
tions and business, and looking t
o fut
ur
e
gr
owth wi
th coni
dence.
Financial performance
G
l
o
b
a
l
Re
v
PA
R
+4
6
.0
%
2020: (52.5)%
Ne
t syste
m siz
e grow
th
-
0.
6
%
2020: +0.3%
Signings (
rooms)
6
8
,
8
70
2020: 56,
146
T
ot
al gross revenue
in IH
G’s Sys
tem
a
$
1
9.
4
bn
2020: $13.5bn
T
ot
al revenue
$
2
,
9
07
m
2020: $2,394m
Rev
e
nue f
rom
reportable segments
a
$
1,
3
9
0
m
2020: $992m
Ope
rating proit/(los
s)
$
4
94
m
2020: $(153)m
Ope
rating proit from
reportable segments
a
$
53
4
m
2020: $219m
Basic EPS
b
14
5
.
4
�
2020: (142.9)
a
U
se of N
on
-
GA
AP m
ea
sure
s: in a
dd
itio
n to pe
r
form
an
ce me
as
ure
s dire
ct
ly ob
se
rv
abl
e in th
e Gro
up Fi
nan
ci
al
St
atem
en
ts (I
FRS m
ea
su
res), ot
her 
in
anc
ial m
ea
su
res (de
sc
rib
ed a
s No
n-
GA
A
P) are pre
se
nte
d tha
t are u
se
d
inte
rna
lly by m
an
age
me
nt as key m
ea
sur
es to a
ss
es
s pe
rf
orm
anc
e. N
on
-
GA
AP me
as
ure
s are e
ithe
r no
t de
in
ed
und
er I
FR
S or are a
dju
ste
d IF
RS 
igu
res
. Fur
the
r exp
lan
atio
n in re
lati
on to t
hes
e me
as
ure
s ca
n be fo
und o
n
pa
ge
s 73 to 7
7 an
d rec
on
cili
ati
ons to I
FR
S i
gure
s, w
her
e they h
ave be
en a
dju
ste
d, ar
e on pa
ge
s 21
8 to 2
23.
b
Adjusted EPS
a
147.0¢ (+370
%); 202
0: 3
1.
3¢
Regional growth (
number of rooms)
Ameri
cas
EMEA
A
Gre
ate
r Chi
na
Openings
1
5
,7
3
9
2020: 16,7
46
Openings
1
0
,1
6
2
2020: 11,288
Openings
1
8
,0
5
7
2020: 11,358
Signings
1
7,
6
4
7
2020: 14,039
Signings
2
0
,
3
76
2020: 13,903
Signings
3
0
,
8
47
2020: 28,204
See p
age 6
3
See p
age 6
6
Se
e pa
ge 6
9
2
021 i
n r
e
v
ie
w
Bui
ldi
ng a st
r
onger busi
ness
Shar
e
holders
and in
v
est
ors
O
ur re
sil
ient b
us
ine
s
s mo
del a
nd
foc
us on ow
ne
rs, c
oup
le
d with
inc
rea
si
ng trave
l dem
an
d, le
d to
imp
roved tr
adi
ng in 2
021
. We have focu
se
d
on ope
rating efi
ciently and s
ustain
ably
,
whil
e inves
ting i
n futu
re grow
th
.
•
Gl
oba
l RevPAR recovere
d to 70% of
201
9 level
s
•
5.0
% gross sy
stem grow
th; ne
t (0.6%) after
highe
r removal
s in par
t du
e to Holi
day Inn
and C
rowne Pla
za revi
ew
•
Sig
nings up 2
3% yea
r
-
o
n-year w
ith
devel
opme
nt acti
vit
y improvin
g
•
Delivered $
75m sustaina
ble costs sa
vings,
while i
nvesting fo
r future grow
th
•
Fee m
argin of 4
9.6%
, rec
overed to 4
.5%
pts
below 2019
•
N
et ca
sh from op
erati
ng acti
vitie
s of
$6
36
m, adju
sted f
ree c
ash 
low
a
of $5
71m
(2020: $29m)
•
Leverage rati
o subs
tanti
ally red
uce
d, with n
et
debt
: adju
sted EB
IT
DA at 3.0x (20
20: 7
.7x)
•
Fin
al divi
den
d of 85
.9
¢ prop
ose
d for 20
21
S
ee inf
orma
tion a
bou
t our s
hare
ho
lde
rs an
d
inves
tor
s on pa
ge 9
2 and o
ur KP
Is o
n pag
es
50 to 5
3.
Our guests
W
e are fo
cu
se
d on en
su
ring
the services, technology and
expe
rie
nce
s we provi
de m
eet
ev
olv
ing e
xpectations,
increase
consumer
pre
fere
nc
e and l
oyalty, and drive b
ook
ing
s.
•
De
livered targeted stay campaigns, loyalty
promot
ions a
nd progr
amme i
mpro
vements
•
Imp
roveme
nt in Gue
st S
atisfa
ction I
ndex
(GSI), ac
hievin
g sco
res of 10
0 or b
et
ter
for ea
ch bra
nd and o
utpe
rfo
rming p
ee
rs
•
C
ontinu
ed execu
tion of I
HG Way of Cl
ean
and I
HG C
lea
n Promis
e in our h
otels
•
Enh
anc
ed M
eet wi
th Co
ni
den
ce oe
r
to su
pport increasing business demand
•
AI te
chno
log
y introduc
ed to an
swer an
d
route cu
stome
r call
s, rais
ing s
atisfa
ction
scores and a
verage daily
rat
es on bookings
•
Ro
om inventor
y as
se
ssm
ent
s comp
lete
d in
5,3
00 h
otels in s
uppo
rt o
f attrib
ute pric
ing
and a m
ore tail
ored b
oo
king exp
erie
nce
•
Up
date
s to gues
t room an
d pub
lic sp
ace
des
igns to e
nhan
ce st
ay experi
enc
e
S
ee inf
orma
tion a
bou
t our g
ues
ts o
n pag
es 1
9
to 2
2 and gu
es
t love K
PI on p
ag
e 52.
Strate
gic Re
po
rt
2
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Our p
eople
A
s our i
ndu
st
ry re
cover
s an
d dail
y
life evolve
s from t
he p
and
em
ic,
we have foc
us
ed o
n how we ca
n
ef
fec
tively s
up
por
t ou
r pe
opl
e and
provi
de th
e right r
es
ourc
es a
nd wo
rking
envir
onm
ent to ke
ep ever
yon
e fee
ling
en
gag
ed a
nd at t
hei
r be
st
.
•
Ove
rall em
ployee e
ngag
eme
nt at 8
5%,
pla
cing I
HG a
s a Kinc
entric G
lob
al
Best Emplo
yer
•
Inclusion Index la
unched to t
rack di
versity
,
equ
ity & in
clus
ion (D
E&I) p
rogres
s
•
C
orpo
rate emp
loyees c
omp
lete
d 10,00
0
hours of
conscious inclusion t
raining
•
Evolved h
ealth, s
afet
y and we
llbe
ing
guid
ance a
t hotel an
d corp
orate leve
ls
•
Sup
po
rte
d emp
loyees w
ith shif
t to
hybrid wor
king thro
ugh guid
anc
e, o
ice
enh
ance
me
nts and fe
ed
back fo
rums
•
Recharge da
ys f
or corpora
te empl
oy
ees
•
Resume
d employee annual salary increa
se
and bonus
•
Emp
loyee Re
sourc
e Group
s (ERG
s)
expan
de
d to help fos
ter our d
ivers
e and
inclusive culture
•
Increased focus on
colleague dev
elopment
and rete
ntion, an
d tal
ent at
tractio
n
S
ee inf
orma
tion a
bou
t our p
eo
ple o
n pa
ge
s
23 to 26
, and o
ur emp
loye
e eng
ag
eme
nt KP
I
on p
age 5
3.
Ho
t
el o
wner
s
O
ur own
ers c
ho
os
e to work wit
h
IHG b
as
ed o
n the t
rus
t they
have in ou
r bra
nd
s and o
ur tr
ack
rec
ord i
n del
iverin
g retu
rns
. We conti
nue
to en
han
ce o
ur of
fer a
cro
ss t
he ho
tel
lifec
ycle,
alongside ex
ploring
new gro
wth
opportunities and collabora
ting w
ith the
industry and gov
e
rnments
to support
a str
ong re
cove
ry fo
r the s
ec
tor
.
•
C
ontinu
ed review a
nd evoluti
on of bra
nd
standards to improv
e operational e
iciency
•
E
xpa
nde
d hotel p
rocure
ment s
oluti
ons
to com
bat sup
ply ch
ain ch
allen
ges a
nd
risin
g cos
ts; la
unch
ed ne
w hiring too
ls
and su
ppo
rt to re
cruit a
nd retai
n tale
nt
•
Increased commercial support thr
ough
promot
ions, t
ools and r
ev
enue
management, alongside i
ncreased
mark
eti
ng as pa
rt of master
brand a
pproach
•
Lower
ing of bui
ld co
sts to en
hanc
e owne
r
returns o
n investm
ent
•
C
ompl
eted revi
ew of Ho
liday Inn a
nd
Crown
e Plaz
a es
tate to protec
t qual
ity
and b
rand p
erce
ption
•
Co
llaboration with gov
ernments and
indu
str
y to supp
or
t rec
over
y
•
E
xpanded p
ort
folio with
launch
of Luxur
y & Life
st
yle b
rand V
ignet
te
Co
llec
tion; s
ix hotel
s alread
y se
cured
Se
e info
rmati
on ab
out o
ur ho
tel own
er
s
on p
age
s 17 to 2
1, and o
ur ne
t room
s sup
ply,
sig
ning
s, gro
ss reve
nue a
nd e
nterp
ris
e
co
ntrib
utio
n KPI
s on p
ag
es 50 a
nd 51.
Plan
et
A
s the wo
rld b
ec
ome
s in
cre
as
ingl
y
aware of t
he th
rea
t of cli
mate
ch
ang
e, it
’s critica
l th
at we ope
rate
responsibly and sustainably
. We
are w
orking
to clear
plans and targets
alongside our
owne
rs to e
ns
ure we gr
ow in a way that
min
imis
e
s our im
pa
ct on t
he worl
d
arou
nd us.
•
Jo
ine
d UN
’s Race to Zero an
d upgr
ade
d
our s
cien
ce
-b
ase
d ta
rget (SBT
) to he
lp limit
glob
al warmin
g to 1.5°
C
•
B
ega
n glob
al rollo
ut of autom
ated c
apture
of hotel u
tilit
y data
•
B
athroom b
ulk am
enitie
s sol
ution
s sec
ured
for all brands and mark
ets, reducing
plastic usage
•
D
evelop
ed H
otel En
ergy Re
ducti
on
Op
por
tuniti
es (H
ERO) tool to he
lp hotel
s
targ
et ene
rgy
, c
arb
on and wate
r redu
ction
s
•
Continued collabora
tion w
ith W
ater
.org,
Allian
ce for Wate
r Stewards
hip and Water
Resilie
nce Co
alition
•
C
ontinu
ed ma
pping r
isks an
d opp
or
tunitie
s
in line w
ith guid
ance o
f T
a
sk Force o
n
Climate-relat
ed Financial Disclosures
S
ee p
age
s 29, 32 to 3
5, 2
2
9 and 2
30 for o
ur
pla
net
, TCFD a
nd gre
en
hou
se g
as em
is
sio
ns
dis
clo
sure
s, a
nd ou
r car
bon fo
otp
rint K
PI
on p
age 5
3.
Our
c
ommunities
and
supplie
rs
W
e’
re pro
ud to b
e a par
t of
thousands of communities
an
d are co
mm
itte
d to en
su
ring
we op
erate a
nd c
oll
abo
rate in ways t
hat
positiv
ely
impact ot
hers, includi
ng w
orking
with s
up
plie
rs t
hat s
har
e our val
ue
s.
•
D
uring Gi
ving for G
oo
d month
, more
than 4
0,00
0 coll
eag
ues d
edic
ated ove
r
260,0
00 ho
urs to ma
king a p
ositi
ve
die
renc
e to more than 3
50,0
00 p
eop
le
•
Sup
po
rte
d chari
ties gl
obal
ly providin
g aid
to thos
e in ne
ed foll
owing na
tural dis
as
ters
•
L
aunc
hed n
ew vir
tual l
earni
ng plat
form
IH
G Skill
s Aca
demy to provid
e pe
opl
e with
free a
cce
ss to s
kills an
d trainin
g
•
Refreshed ou
r responsibl
e procu
rement
criteri
a for pros
pe
ctive su
pplie
rs to sup
por
t
our supply chain integrity
S
ee p
age
s 27, 28 and 39 fo
r info
rmati
on
about our communities and suppliers, and
our I
HG
® Ac
ad
emy K
PI on p
age 5
3.
Inte
rcon
tine
nta
l Mal
dive
s Ma
amu
nag
au Re
sor
t
Inte
rcon
tine
nta
l Mal
dive
s Ma
amu
nag
au Re
sor
t
– Ma
nta Trust an
d Oc
ea
n Co
nse
r
vatio
n Prog
ram
– Ma
nta Trust an
d Oc
ea
n Co
nse
r
vatio
n Prog
ram
Inte
rC
onti
nen
tal
® Ma
ldiv
es M
aam
una
gau Re
so
rt –
Manta T
rus
t and Ocean Conser
vation Pr
ogramme
3
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
202
1 in review
pro
it yet to fully re
cover to pre
-
pand
emic
201
9 level
s. A key factor in th
is improve
d
pe
rfor
manc
e has b
ee
n a hei
ghtene
d
com
mitme
nt to supp
or
t our own
ers
, listen
to their n
ee
ds, an
d work ha
nd in han
d acro
ss
team
s to resp
ond wi
th agilit
y and ex
per
tis
e
to chall
eng
es ran
ging from re
stric
tions
impa
cting d
ema
nd, to the ne
ed to evo
lve
brand standa
rds
and meet staing
and
supply cha
in pr
essures as
demand r
etur
ns.
Wheth
er op
erati
onal o
r com
merci
al, the
se
acti
ons c
an stren
gthe
n both sh
or
t and
lon
g-term p
er
form
anc
e, and as we b
uild
owne
r relatio
nshi
ps and l
ook to a
cce
ler
ate
net ro
oms grow
th, we c
ontinue to inve
st
in strate
gic pri
oritie
s that will s
trength
en
asp
ec
ts of ou
r entire oe
r
. T
hes
e incl
ude
redu
cing c
ost
s to build, o
pen a
nd op
erate
hotel
s acros
s our b
rand
s, del
ivering l
oyalty
and di
gital en
hancements t
hat im
pro
ve t
he
guest experienc
e and drive
per
formance,
and inves
ting in th
e quali
ty
, depth a
nd
brea
dth of ou
r por
t
folio, suc
h as the l
aunc
h
of the V
ignet
te™ Col
lec
tion bra
nd in Aug
ust.
Acc
ele
rated by the p
and
emic, re
cog
nisin
g
that ou
r stakeholders
increasingly
measure
pro
it, grow
th an
d suc
ces
s in rel
ation to how
com
pani
es op
erate re
spo
nsib
ly acro
ss the
environmental, social and governance (ESG)
age
nda, th
e com
mitme
nts se
t out in ou
r
Jou
rney to T
o
morrow p
lan cre
ate a roadm
ap
for po
sitive c
hang
e over the nex
t de
ca
de.
Duri
ng the yea
r
, imp
or
tant p
rogre
ss was m
ade
on seve
ral front
s, incl
uding i
nvestme
nts in
new train
ing and p
rogra
mme
s that sup
por
t
a diver
se and i
nclu
sive cultu
re, thoug
htful
guid
ance a
round a s
hif
t to hybrid work
ing,
clo
se co
llab
oratio
n with ch
aritie
s resp
ondi
ng
to natural di
sa
sters
, and th
e formulati
on of a
strate
gy to mee
t an upg
rade
d sci
enc
e
-ba
se
d
carb
on re
ducti
on ta
rget acro
ss o
ur
hote
l es
tate
.
C
hair
’
s
st
at
e
m
e
nt
H
aving e
nte
red 2
021 o
n the b
ac
k
of th
e toug
he
st ti
me th
e ho
spi
tali
ty
ind
us
tr
y has eve
r know
n, th
is year
ha
s be
en on
e of ho
pe, r
ec
overy, new
challenges and opportunity
. IHG’
s global
sc
ale m
ea
ns we have exp
erie
nc
ed a
nd
le
arne
d from t
he evolv
ing n
ature o
f the
pan
de
mic o
n a dai
ly ba
sis
, ma
rket by
mark
et, and wi
th clarity
and le
xibility
we have st
ayed focu
se
d on t
he st
rate
gic
bu
sin
es
s ne
ed
s re
quir
ed to d
elive
r
long-term
success for all
stakeholders.
Ce
ntral to this i
s having a m
eanin
gful,
relevant p
urpo
se an
d a well
-roun
ded a
nd
ee
ctive str
ategy
, and thi
s year refre
she
d
vers
ions o
f both have b
een e
mbe
dd
ed
into the bu
sine
ss
, promoti
ng greate
r
priori
tisat
ion and
understanding
arou
nd
what i
s coll
ecti
vely req
uired to su
cc
ee
d
in a co
mpeti
tive marketpl
ace
.
Our p
urpo
se of T
rue H
osp
itali
ty for G
oo
d
rec
ogni
ses th
e impo
rt
anc
e of us
ing our
bus
ine
ss to not o
nly ca
re for thos
e we
interac
t with, b
ut als
o to make a pos
itive
die
renc
e to our co
mmuniti
es an
d the
world aro
und us
. Our s
trategy, still ver
y
much c
entre
d on ac
hieving i
ndus
try-
le
ading
net ro
oms grow
th, pl
ace
s a sh
arpe
r focu
s
on our b
rand
s and dig
ital inve
stme
nts,
our gu
est a
nd owne
r oer, and ens
uring
we grow in the rig
ht way for our pe
opl
e,
com
munitie
s and p
lan
et. T
aking a
ll we have
lea
rnt as a co
mpa
ny from the pan
dem
ic,
our b
ehavio
urs su
ppo
rt th
e ways of workin
g
we be
lieve are vit
al to suc
ces
sfu
l ope
ration
s,
repu
tation a
nd cultu
re.
Inves
ting fo
r th
e lon
g term
The
se e
lem
ents – o
ur purp
ose, s
trategy
and b
ehavi
ours – are b
eing a
ppli
ed to an
asset-light, fee-
base
d, largely franchised
business model t
hat has
pro
ven its
resil
ience
during th
e pan
demi
c and all
owed for a
relatively str
ong inanci
al performanc
e
in 202
1, alb
eit wi
th RevPAR and op
erating
Final dividend
8
5.9
¢
Fin
al di
vid
en
d pro
po
se
d for 2
02
1
(2020: no
dividend
was
paid)
Retu
rn of
fun
d
s
$
13
.6
bn
Sinc
e Ma
rch 200
3, the G
roup h
as
returne
d $13
.6 billi
on of fun
ds to
sha
rehol
der
s by way of ordinar
y an
d
spec
ial dividends, capital returns
and shar
e r
epurchase
progra
mmes.
Since 201
4:
•
$
500 m
illion s
pe
cial div
ide
nd pai
d
29 Januar
y 2019
•
$
40
0 millio
n spe
cial d
ivide
nd p
aid
2
2 May 20
17
•
$1
.5 bi
llion s
pec
ial div
iden
d pai
d
23 May 20
16
•
$
500 m
illion s
hare bu
yba
ck
com
plete
d in 20
14
•
$7
50 millio
n sp
ecia
l divid
end p
aid
14 Ju
ly 20
14
Sta
yi
ng
f
o
cus
e
d
on
lo
n
g
-
t
er
m succes
s
Strate
gic Re
po
rt
4
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
With t
he str
ong inancial im
pro
vements
deli
vered in 2
02
1, incl
uding p
roit
abil
ity
rebo
undin
g and a su
bst
antial re
duc
tion
in net d
ebt, th
e Bo
ard is prop
os
ing a i
nal
divid
end o
f 85.
9¢ in re
sp
ect o
f 202
1, an
amount equivalent to the wit
hdrawn inal
payme
nt in res
pe
ct of 20
19. No inte
rim
divid
end wa
s pai
d in resp
ec
t of 202
1.
Goi
ng for
ward, divi
den
d payme
nts will
be re
le
ctive of I
HG
’s prior app
roach to
sustainably
gro
w t
he ord
inary divi
dend
whils
t targ
eting a leve
l of levera
ge that
maintains an investment grad
e credit rating,
and e
nsurin
g care
ful co
nsid
eratio
n of our
resp
on
sibiliti
es to all s
takeho
lde
rs. T
he Bo
ard
will al
so co
ntinue to ac
tively a
ss
es
s the
opp
or
tunit
y for any surp
lus c
apit
al to be
additionally returned through special
divid
end
s or sh
are buy
back
s.
A i
nal per
specti
ve
The I
HG I w
ill dep
ar
t on 31 Au
gust 2
02
2
is muc
h cha
nge
d from the o
ne I join
ed in
Jan
uar
y 201
3 – not le
ast h
aving grown fro
m
4,6
00 to alm
ost 6,0
00 h
otels
, and from
nine to 17 bra
nds
. Havin
g ir
st gon
e on a
cruc
ial jo
urney to es
tabl
ish ou
r bran
ds in
more at
trac
tive markets
, the pa
st alm
ost
ive ye
ars un
der Keith B
arr
’s leade
rsh
ip have
se
en the c
omp
any transfo
rm and re
ady for
a new ch
apter of g
rowth
. IH
G has inves
ted in
its e
ntire enterp
rise, in
clud
ing the qu
alit
y of
the estat
e and
breadt
h of i
ts brand
portfolio,
and a
s an organ
isati
on it ha
s be
com
e more
sop
histi
cate
d and cu
stome
r
-
centri
c, with a
com
mitme
nt to ESG now woven i
nto the
fabric
of t
he business.
The val
ues o
f integrit
y and t
ransp
aren
cy
that I have ad
voc
ated at B
oard leve
l run
de
ep throu
gh the bu
sine
ss a
nd its
lea
der
ship, as i
llustrate
d by the c
are and
thou
ght with whi
ch the
se pa
st t
wo years h
ave
been handl
ed for
IHG’
s di
eren
t stak
eholders.
Keith has a
lso s
et the ton
e from the to
p
on the im
por
t
ance o
f divers
it
y
, e
quit
y and
incl
usio
n, and p
rogres
s co
ntinue
s to be ma
de
agai
nst th
e chan
ges re
quire
d to be a truly
suc
ce
ssf
ul com
pany in this re
gard, wi
th IH
G
rec
ogni
sed fo
r a seventh ye
ar runni
ng as
a ‘B
es
t Plac
e to Work for LGBTQ
+ Equali
ty
’
,
with a 10
0% ra
ting in the C
orp
orate Equ
alit
y
Ind
ex, an
d bein
g Highl
y Com
men
de
d in
the C
omp
any of the Y
ear c
atego
r
y at the
Europe
an D
ivers
ity Awards
.
While t
he pan
dem
ic may her
ald so
me
struc
tural ch
ang
e for our in
dustr
y
, suc
h as
tech
nolo
gy rep
laci
ng ce
rt
ain el
eme
nts of
bus
ine
ss travel, th
ere will b
e opp
or
tunitie
s
too, incl
uding f
acilit
ating a gl
obal s
hif
t to
lexible w
orking.
What r
emains unchanged
thou
gh, are the in
dustr
y
’s long
-term
fund
ame
ntal grow
th drive
rs, su
ch as a
growing p
opul
ation, ri
sing we
alth in e
mergin
g
markets a
nd inc
reas
ing co
nversio
ns from
unbra
nde
d player
s. Th
e streng
th of IH
G’s
business model,
strat
e
gic
inv
estments,
pipeline
, leadership
and passionat
e t
eams
gives m
e great c
on
ide
nce i
n a strong fu
ture.
It ha
s be
en a pri
vile
ge to be a p
art o
f IH
G’s
stor
y for alm
ost a d
ec
ade an
d I would l
ike to
oer my si
nce
re resp
ect a
nd gratitu
de to all
thos
e in our h
otels, o
ic
es a
nd res
er
vation
ce
ntres who h
ave bee
n a par
t of it
. I would
als
o like to thank our ow
ner
s for cho
osi
ng
IH
G and for th
eir c
ontinu
ed lo
ng-te
rm
con
id
enc
e in our b
rand
s and bu
sine
ss
.
Patr
ick Cescau
Chair
Role o
f the B
oa
rd
T
o n
avigate an in
dust
ry re
cover
y
, re
act to
evolvin
g trend
s and at the s
am
e time pu
sh
to streng
then I
HG o
n so ma
ny fronts ha
s
requi
red gre
at ded
icatio
n from our l
ea
ders
hip
and te
ams. T
he rol
e of the B
oard ha
s be
en
to
support and constr
uctiv
ely chal
lenge
the E
xecuti
ve Com
mit
tee aroun
d how we
prio
ritise, m
ana
ge ris
k, grow an
d gen
erate
future valu
e. Th
e ESG ag
end
a and tec
hno
logy
lands
cape, inclu
ding investments in our
enterp
rise a
nd man
agin
g cybe
rse
curit
y ris
ks,
were als
o regu
larly c
ons
idere
d in the ye
ar
,
alon
gsid
e liste
ning to em
ployee s
entim
ent
via e
ngag
eme
nt se
ssi
ons an
d fee
dbac
k.
Par
t of my role a
s Chair h
as b
een to
enc
oura
ge Bo
ard devel
opm
ent an
d
overs
ee ch
ange
s that b
uild an
d add n
ew
expe
rti
se an
d insig
hts in rec
ogni
tion of
the evolv
ing natu
re of our bu
sine
ss a
nd
sta
kehold
er exp
ect
ation
s. T
o this e
nd,
succe
ssion planning was also of signiic
ant
focu
s in 202
1, with b
oth Ann
e Bus
quet a
nd
Dal
e Morr
ison re
tiring af
ter tre
men
dous
ser
vi
ce, an
d Rich
ard And
ers
on unfor
tuna
tely
resig
ning af
ter thre
e mont
hs due to p
ers
onal
reas
ons
. We were del
ighted to wel
com
e
Dan
iela B
aron
e Soa
res as N
on
-E
xec
utive
Dire
ctor an
d Grah
am Alla
n was app
ointe
d
as Se
nior I
nde
pen
dent N
on
-
Exe
cutive
Dire
ctor from 1 J
anua
ry 2
02
2.
In my ninth year a
s Ch
air
, s
ucc
es
sion p
lanni
ng
for my own role wa
s als
o carri
ed out
, with
a thorou
gh and i
ndep
en
dent re
cruitm
ent
proc
es
s lea
ding to the a
ppo
intment o
f
Deanna Oppenheimer as
Chair Designa
te
from 1 Ju
ne 202
2
, be
comi
ng No
n-
E
xecutive
Cha
ir from 1 Se
ptemb
er 20
2
2 upon my
retirem
ent. I lo
ok for
ward to work
ing with
Deanna on a
comprehensiv
e hando
ver
and I
would li
ke to take the opp
or
tunit
y to wish h
er
the b
est in w
hat I am su
re will be a ve
ry
succe
ssful tenure.
Patri
ck C
es
cau
C
hair
5
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Chair
’
s stateme
nt
C
hief E
xec
ut
iv
e
O

ice
r
’
s
r
eview
E
m
e
rg
i
n
g
a
s
a
st
r
ong
er
IH
G
remai
ns tough fo
r our hote
ls, b
ut travel
is co
nsi
stently retu
rning qui
ckly a
s
restri
ction
s lif
t. O
ur appro
ach h
as be
en to
stay fo
cus
ed on o
rganis
ing op
eratio
ns an
d
investm
ents a
round wh
at mat
ters m
ost to
gue
sts an
d owne
rs, an
d ens
uring I
HG c
an
grow at pac
e, in the ri
ght way
.
For co
llea
gue
s, we have improve
d proc
es
ses
and intro
duc
ed ne
w tools to b
oth attr
act an
d
retain t
ale
nt in what i
s a com
petiti
ve jobs
market, a
nd we’ve plac
ed a g
reater e
mpha
sis
on me
ntal h
ealth a
nd wellb
ein
g. Co
rpor
ate
and re
ser
vatio
n team
s have be
en sup
por
ted
with sh
ift
s to hybrid work
ing, inte
ractive
se
ssi
ons have b
rought em
ployee
s clo
ser to
our str
ategy
, and ho
tel team
s have rec
eived
trainin
g and sup
po
rt n
ee
ded to a
dapt to
evolvin
g ope
ration
s and b
rand st
and
ards.
For gue
sts
, we have use
d AI tec
hnol
ogy in
our re
ser
vatio
n centre
s to improve cus
tome
r
ser
vice, enhance
d our awar
d-winning Meet
with C
on
ide
nce p
rogram
me, and o
ere
d
loyalt
y mem
ber
s point ex
pir
y exten
sio
ns
and n
ew promoti
ons
. We saw Reward Ni
ght
bookings largel
y recov
er t
o pre-pandemic
level
s during th
e year an
d welc
ome
d anoth
er
nine mi
llion m
emb
ers to IH
G
® Rewards
.
Working c
los
ely wi
th the IH
G Ow
ners
As
soc
iation a
nd op
erator
s, we have strive
d
to anticip
ate owne
rs’ ne
ed
s, care
fully
focusing on c
osts, and d
elivering training
and a
ction p
lans to a
ddres
s pe
rfo
rman
ce
opp
or
tunitie
s and g
ues
t fee
dbac
k.
Staing and s
upply cha
in chal
lenges ha
ve
be
en me
t with new re
cruitm
ent so
lutio
ns
and in
crea
sed p
rocu
remen
t option
s that
have del
ivered key pro
duct
s at lower c
ost
,
des
pite in
latio
nar
y pre
ssu
res. C
omm
ercia
lly
,
we have incre
as
ed ma
rketing and intro
duc
ed
new too
ls to ide
ntif
y and c
apture de
man
d,
and we c
ontinu
ed our wo
rk with tra
de
bo
dies a
nd govern
ment
s to advoc
ate for
indu
str
y supp
or
t in rec
ogn
ition of th
e vita
l
economic role
hospitality pla
ys g
lobally
.
I
n the p
as
t year, the res
ili
enc
e of ou
r
bu
sin
es
s mo
de
l and e
nd
urin
g imp
or
tan
ce
of trave
l and h
os
pit
alit
y for mi
llio
ns
globally has
shone through str
ongly
.
Crucially
, while demonstrating
our abili
ty
to ef
fec
tively m
an
age t
he im
pa
ct of an
evolvin
g pa
nde
mic
, we have not waver
ed in
our fo
cu
s to bu
ild a
n even str
ong
er IH
G, by
grow
ing our
brands, enhancing our
guest
an
d owne
r offe
r
, sup
po
rti
ng ou
r pe
opl
e and
communities, a
nd prot
ecting our
planet.
While 2
02
1 glob
al RevPAR was at 70% of
pre
-p
ande
mic 20
19 leve
ls and o
pe
rating
pro
it ha
s yet to fully rec
over
, b
oth imp
roved
signi
ic
antly du
ring the ye
ar as vac
cin
ations
increased,
restr
ictions
lifted and
guests
travelled again. Enco
uragingly
, in Q4, alm
ost
half o
f our hote
ls were b
ack to pre
-p
and
emic
RevPAR levels, a
nd our G
ue
st Sati
sfac
tion
Ind
ex contin
ued to im
prove during 20
2
1,
outp
er
formin
g comp
etitor
s as we worked
thou
ghtfu
lly to evolve the s
tay expe
rien
ce
and manage dem
and.
As owne
rs lo
ok to future g
rowth wi
th us,
devel
opme
nt acti
vit
y was als
o well ah
ead
of 202
0, with som
e fant
astic o
pe
nings an
d
signings
, alongside
contin
ued inv
estment
in the qu
alit
y of our exi
sting e
sta
te.
Grow
ing s
en
se of re
cover
y
Loo
king b
ack to the h
eight of th
e pan
demi
c
in 202
0, with many hote
ls clo
se
d and
oc
cupa
ncy at his
toric lows
, reac
hing this
much
-im
proved p
oint ha
s require
d suc
h hard
work
and collabora
tion a
mong our
teams,
owne
rs and p
ar
tner
s. We’ve met ch
allen
ges
in thoughtful and innovat
ive wa
ys, quickly
sei
zed o
ppo
rtun
ities to grow an
d improve,
and wh
ile we kn
ow our ind
ustr
y is no
t yet
bac
k to norm
al, we take co
ni
den
ce from
a growing s
ens
e of rec
over
y
.
We do still have m
arkets whe
re restri
ction
s
are crea
ting cha
llen
ges
, and the p
and
emic’s
impact on
labour a
nd supply
chains
K
ey highlights in 2021
29
1
Hotels
opened
(285 in
2020)
4
37
Hotels
signed
(360
in 2020
)
47
%
Of f
ull
-year s
ign
ing
s wer
e for
ou
r Hol
iday I
nn B
ran
d Famil
y
42
%
Of o
ur pi
pe
lin
e now r
ep
res
en
ted
by up
sc
ale a
nd lu
xur
y br
and
s
Strate
gic Re
po
rt
6
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Keith B
arr
Ch
ief E
xecuti
ve O
ice
r
the pro
gres
s agai
nst ou
r strateg
ic prio
rities
in 202
1 an
d the imp
act thi
s will have on h
ow
we ope
rate and g
row with owne
rs as th
e
industry st
rengt
hens.
Key highlight
s inclu
de the H
olid
ay Inn and
Crown
e Plaz
a qual
ity revi
ew
, whic
h has
driven s
igni
ic
ant owne
r investm
ent in
83 p
rope
rti
es and th
e removal o
f 151 hotel
s.
With exce
llent f
uture grow
th pros
pe
cts,
this work i
s not ju
st critic
al to prote
cting th
e
pe
rfor
manc
e and re
put
ation of th
ese b
rand
s,
but al
so to our a
bilit
y to redu
ce our f
uture
group avera
ge remova
ls rate and h
elp
achi
eve our amb
ition of in
dus
try-
lea
ding
net
roo
ms gro
w
th.
The importance of
our establi
shed brands
was re
le
cted in o
ur Ho
liday Inn
® Bran
d
Family repre
se
nting alm
ost h
alf of all s
igning
s
in 202
1, whi
le the ad
ditio
n of new bra
nds
across more
segments increases our
attra
ctive
nes
s to owne
rs and o
pen
s up fur
the
r
grow
th opp
or
tunitie
s. W
ithin Es
se
ntials
,
avid® h
otels i
s now our s
ec
ond l
arges
t
contr
ibutor to sys
tem size a
nd outp
er
formi
ng
pe
ers in g
ues
t sati
sfac
tion, an
d voco™ hotel
s
has a
lread
y expan
ded to 2
5 countri
es with
in
Premiu
m. In Luxu
ry & L
ifest
yl
e, progre
ss
incl
ude
d Six Se
ns
es® n
ow having grown
its o
pen an
d pip
elin
e est
ate by more tha
n
half s
inc
e acqu
isitio
n in 20
19, and ou
r new
Vign
et
te Coll
ecti
on bra
nd alrea
dy at six
signings and a 
irst openin
g since launch
in Augu
st.
As we us
e our I
HG
® Hote
ls & Res
or
ts
masterbr
and t
o show
case the
breadth
of
our p
or
tfol
io, we contin
ue to enh
ance th
e
enterpr
ise that
supports it. This includes
developi
ng our
next
-generation mobile
app, an
d prepa
ring tho
usa
nds of h
otels
to allow gu
est
s to choo
se s
pec
i
ic room
charact
eristi
cs and add
stay en
hancements
whe
n boo
king w
ith us, an
d in par
allel e
nab
le
our own
ers to ge
ne
rate maxim
um value
from the
ir hotel
’s unique fe
atures
.
T
ra
nsfor
mation
al work al
so too
k pla
ce in loyalt
y
ahe
ad of a rel
aunc
h in 202
2 tha
t will oe
r
mem
ber
s more rewardi
ng tier
s and p
oints
value, p
rovide ric
her b
ene
i
ts and exc
eption
al
choi
ce, an
d attra
ct mo
re next-
gen
eratio
n
travelle
rs. I
n the i
rst yea
r of our 20
30
Journey
to T
omorrow
responsible business
pla
n, key progres
s incl
ude
d upgr
ading o
ur
sci
enc
e-
ba
sed t
arget to h
elp limi
t glob
al
warming to 1
.5°C
, launc
hing ou
r vir
tual I
HG
Skills A
cademy pla
tform, cor
porate
employ
ees
com
pleti
ng more th
an 10,00
0 hou
rs of
cons
cious inclu
sion training, and suppo
rting
cha
rities re
spo
ndin
g to natural di
sas
ters
.
Thank y
ou
I would li
ke to thank the B
oard for th
eir
guid
ance, a
nd ahe
ad of h
is retirem
ent as
Cha
ir
, re
cog
nise th
e invaluab
le co
ntributi
on
Patric
k Ce
sca
u has m
ade in h
is nine ye
ars
with I
HG. H
e is a hug
ely res
pe
cted 
igure
and o
n a per
son
al note I am gra
teful for hi
s
cou
nse
l and su
ppo
rt
. Thou
gh he wil
l be
mis
se
d, we loo
k for
ward to welc
oming
Deann
a Oppenhe
imer
.
On b
ehal
f of the E
xecu
tive Co
mmit
tee,
I would a
lso like to than
k our own
ers for
their p
ar
tner
ship a
nd co
mmitme
nt, an
d our
inspiring co
lleague
s for bringing our brands
and p
urpo
se of T
rue H
osp
itali
ty for G
oo
d
to life, and m
akin
g IH
G a strong
er bu
sine
ss
.
T
o s
ee I
HG a
gain na
med a K
inc
entric G
lob
al
Be
st Emp
loyer in 20
21 wa
s a proud m
ome
nt
and it h
as me
ant a lot to re
conn
ec
t with
col
lea
gues i
n per
son th
is year
, as well a
s
our own
ers, k
nowin
g that tog
ether we l
ook
to the future w
ith con
id
enc
e.
Ke
it
h
B
ar
r
Chie
f Exe
cutive O
i
cer
Streng
thened perf
orma
nce
Our a
ction
s, alo
ngsi
de our b
usin
es
s bei
ng
princ
ipall
y dom
estic fo
cus
ed in key mar
kets
suc
h as the U
S, le
d to improved tra
ding
through
out 20
21
. On top of g
oo
d es
senti
al
business demand, domesti
c leisur
e bookings
at time
s hit 20
19 oc
cup
ancy an
d rate levels
in seve
ral markets
, with sig
ns of mo
re
dis
cretion
ar
y bus
ines
s travel, grou
p boo
king
s
and inte
rnatio
nal trip
s be
ginning to retu
rn.
Op
eratin
g pro
it of $4
94
m improve
d from
a los
s of $1
53
m in 202
0. Our ab
ilit
y to
cap
ture dem
and throu
gh our s
trong bra
nds,
enterp
rise a
nd sc
ale, c
oupl
ed wi
th caref
ul
co
st co
ntrol, le
d to ope
rating pro
it from
repo
rt
abl
e se
gment
s more th
an doub
ling
to $5
34
m versu
s 202
0, with sus
tain
able
savings
successfully achie
ved al
ongside
conti
nue
d investm
ent to supp
or
t grow
th.
Stron
g cas
h gen
eratio
n led to a re
duc
tion
in net d
ebt of al
most $
6
50m ye
ar
-
on-ye
ar
.
While a h
ighe
r
-
than
-avera
ge rem
ovals
rate, linked in p
ar
t to our H
oliday In
n® and
Crown
e Plaz
a® H
otel & Res
or
ts qu
alit
y review,
me
ant our ne
t system s
ize de
cline
d slig
htly
,
the op
enin
g of 29
1 hotel
s, inc
luding o
ur
3,00
0t
h for Ho
liday Inn E
xp
res
s®
, repre
sente
d
5.0% gro
ss grow
th an
d unde
rline
s the
lon
g-term c
on
id
enc
e owner
s have in IH
G
and o
ur bran
ds. We als
o add
ed 4
37 hote
ls to
our pi
peli
ne, with th
e almo
st 24,00
0 roo
ms
sign
ed in Q
4 much c
los
er to the leve
ls se
en
in 20
19. In total, o
ur glo
bal pip
eli
ne of alm
ost
1,80
0 hote
ls rep
rese
nts mo
re than 3
0% of
our cu
rrent syste
m size, wit
h more tha
n 40
%
under construct
ion.
Focu
s on g
rowt
h
Our fo
cus in re
ce
nt years h
as be
en to
improve the q
ualit
y of our ex
istin
g hotels fo
r
guests and
the r
etur
ns our
brands
generat
e
for owne
rs, an
d in par
allel i
ncrea
se th
e sca
le
of tho
se bra
nds, th
e brea
dth of our p
or
t
folio,
and th
e value of o
ur tech
nolo
gy an
d loyalty
oer. In spite of a p
ande
mic, I am p
roud of
7
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Chie
f Exe
cutive O
i
cer
’s review
0
2,500
5,
000
7,
5
0
0
10,0
00
12,500
15,
000
1
7,
5
0
0
2000
2001
2002
2003
2004
2005
2006
20
07
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
0
5
10
15
20
25
30
Low an
d lower mi
ddl
e inc
ome
Forecast
Up
pe
r midd
le inc
om
e
Forecast
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022E
2024
E
0,00
0
2,
000,
000
4,
000,
000
6,
000,
000
8,
000,
000
10,0
00,0
0 0
12,
000,000
14
,000
,000
2005
2006
20
07
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021E
2022E
2023E
2024
E
2025E
T
he $360 bill
ion hot
el industry
has compelling structural
growth
driv
ers, underpinned b
y factors
including
consumers’
inherent
desire
to travel
, pop
ul
ation g
row
th, a
nd an
expa
ndi
ng mi
ddl
e cla
ss i
n em
erg
ing
mark
ets wit
h in
creasing
disposable
inc
om
es
. Whil
e th
e pan
de
mic s
upp
re
ss
ed
de
man
d duri
ng 20
20 a
nd 20
21, d
em
and
ha
s retur
ned r
api
dly in d
ome
st
ic ma
rkets
as g
overnm
ent re
st
ricti
ons h
ave lif
ted a
nd
vacc
ina
tion r
ates i
nc
rea
se
d. Thi
s de
ma
nd
ha
s pre
do
mina
ntly b
ee
n in m
arkets n
ot
expo
se
d to cro
s
s-b
ord
er t
rips a
nd
across essential
business tra
vel,
though
discretionary corpora
te tr
av
el and grou
p
event
s have be
gun to r
eturn
.
Cos
t remains a signii
cant barrier to building
a sc
ale p
ositio
n in the in
dust
ry
, wheth
er
that
’s due to the invest
ment re
quired to
buil
d and ma
intain h
otels, e
st
ablis
h a stron
g
loyalt
y progra
mme o
r to market bran
ds in
a com
petiti
ve marketpl
ace. A
s suc
h, the
indu
str
y remai
ns frag
mente
d, with 5
4%
of room
s a
iliate
d with a glo
bal or
regional ch
ain.
Branded hot
el penet
rati
on has st
eadily
incre
ase
d as a l
ong
-term tren
d and is
expe
cted to c
ontinu
e to grow as co
nsum
ers
loo
k to truste
d bran
ds to me
et thei
r evolvin
g
expe
cta
tions
, par
ticul
arly wh
en it c
ome
s
to state
-
of-the
-a
rt te
chno
log
y and th
e skill
s,
sc
ale an
d reso
urce
s to provide mo
re
sustainable
stays.
Owners aili
ated w
ith
a bran
d tend to ge
nera
te highe
r returns
.
For the in
dustr
y as a w
hol
e, it is not yet c
lea
r
what im
pac
t there wi
ll be on d
ema
nd from
struc
tural ch
ang
es brou
ght ab
out by the
pandemic, such
as technology r
eplacing
ele
ment
s of bu
sine
ss travel
. However
, this
may be o
se
t by a greater u
se of hote
ls to
facilitate a global shif
t to increasingly 
lexible
workin
g arrang
eme
nts
. In add
ition, th
ere is
sc
ope fo
r ‘blei
sure’ de
man
d, where 
lexib
le
workin
g create
s pote
ntial for le
isure d
ema
nd
to be co
mbin
ed wit
h busi
nes
s st
ays.
It is li
kely that l
uctu
ating C
ovid-19
restri
ction
s will c
ontinue to c
reate a volati
le
dem
and e
nvironme
nt in the s
hor
t term.
However, we anticipate the at
trac
tive ind
ustr
y
fund
ame
ntals to b
e fully re
store
d in the
lon
ger term
. For examp
le, STR fo
reca
st that
US in
dustr
y Rev
P
AR will return to 20
19 leve
ls
by the en
d of 202
3.
Indu
str
y ov
e
r
view
W
e oper
at
e in a
n i
ndu
st
r
y wi
th h
ig
h gr
owt
h pot
ent
ial
,
underpi
nne
d b
y st
r
ong long-t
erm fundamen
tal
s
t
ha
t r
ema
ined r
esil
ien
t du
r
in
g t
he pa
ndem
ic
.
The hot
el indust
ry has attractiv
e t
ail
winds…
Di
spo
s
abl
e pe
rso
nal i
nc
ome i
n the U
S from 2
00
0 to 20
20
(in bi
llion
US dollars
)
A growi
ng mi
ddl
e cla
ss i
n em
erg
ing m
arkets w
ith a de
si
re to trave
l
Wealth s
hare in em
ergin
g eco
nomi
es (%)
Res
ilie
nc
e in ro
om nig
ht st
ays, wit
h fur
the
r grow
th exp
ec
ted
Glo
bal h
otel roo
m night st
ays
So
urce
: Cre
di
t Sui
ss
e
Source
: Sta
tista
Source: O
xford E
conomics
Strate
gic Re
po
rt
8
IH
G
|
Annua
l Repo
rt a
nd Form 20

F 202
1
70%
0%
-7
5
%
2020
2021
1992
1990
1994
1996
1998
2000
2004
2006
2010
2012
2016
2018
2002
2008
2014
Lux
ur
y and uppe
r ups
cal
e
Upscale
Total Mid
sc
ale
Economy
66%
55%
35%
55%
Branded
share
of glo
bal
room
supply
Branded
share
of glo
bal
ac
tive pip
eli
ne
77%
54%
1.4x
Branded hot
el business models
The
re are two p
rincip
al bu
sine
ss m
ode
ls:
•
A fee
-
bas
ed, a
ss
et-light mo
del:
–
F
ranc
hise
d: owne
d and o
pe
rated by
par
tie
s distin
ct from th
e bran
d, who
pay fee
s to the hote
l com
pany for us
e
of its
brand.
–
Man
age
d: ope
rated by a p
ar
ty di
stinc
t
from the h
otel owne
r
. T
he own
er pays
man
age
ment fe
es an
d, if the ho
tel
use
s a third
-pa
rt
y bran
d nam
e, fee
s
to that third
-pa
rt
y
, to
o.
•
An own
er-op
erate
d, ass
et-he
avy m
ode
l:
–
Owne
d: op
erate
d and b
rande
d by
the own
er who b
en
e
its from al
l
the inc
om
e.
–
Lea
sed: s
imila
r to owned, exc
ept
the own
er-op
erator do
es n
ot have
outrig
ht owner
ship of th
e hotel b
ut
lea
se
s it from the u
ltimate own
er
.
As
set-he
avy m
ode
ls ge
ner
ate returns on th
e real e
sta
te and ce
ntralis
e con
trol over
ope
ration
s. As
set-li
ght mod
els t
ypi
call
y enab
le
s faste
r growth a
nd ge
nerate hi
gher
returns
. This m
ode
l tend
s to pres
ent lowe
r risk to l
uctu
ations i
n the ec
ono
my
.
and a tr
ack r
ecord of g
ro
w
th
Ind
us
tr
y RevP
AR ha
s se
en a l
ong
-term t
rac
k rec
ord o
f grow
th;
the m
os
t rec
ent r
ec
overy h
as b
ee
n driven by d
ome
st
ic le
isu
re de
ma
nd
US In
dus
try Rev
P
AR grow
th, mon
thly year-on
-year
Global industry Re
vP
AR
($)
RevPAR moveme
nts are illu
strative
of lo
dging d
eman
d
2018
8
0.8
2017
78.9
2016
76.
2
2019
8
0.6
2020
3
7.
0
2021
5
3
.7
So
urce
: ST
R
Gl
oba
l roo
ms s
upp
ly
(m r
o
o
m
s)
Supply g
rowth
relects the
attract
iveness
of the ho
tel indu
str
y
2018
19.0
2017
18.5
2016
1
8
.1
2019
19.
5
2020
1
9.7
2021
2
0.1
So
urce
: ST
R
with signiic
ant barriers
to entr
y
…
The to
p ive h
otel g
roup
s
a
have
inc
rea
se
d th
eir m
arket s
hare
Sha
re of top ive b
rand
ed hote
l group
s
as % of gl
obal ro
oms s
uppl
y
2018
23
.4%
2017
2
2.
5%
2016
21.
9%
2019
23.9
%
2020
23.9
%
2021
24.3%
Consumers
val
ue lo
yalty
membership
whi
ch re
qui
res a l
arg
e sc
ale e
nterp
ris
e
to d
el
iver
57
%
Of c
on
su
me
rs sp
en
d mo
re on b
ran
ds
to wh
ich t
hey ar
e loyal
Source
: Acce
ntur
e
84
%
Of l
oyalt
y pro
gra
mm
e me
mb
er
s have ma
de
a redempti
on fr
om the
programme
So
urce
: Bo
nd, i
n pa
rtn
er
shi
p wit
h Vis
a
Wit
h sha
re exp
ecte
d to fu
rth
er exp
an
d
Bran
de
d share of g
lob
al indu
str
y
supply a
nd shar
e of g
lobal i
ndustry
active p
ipe
line
a
Includes IHG,
Marriott Int
ernational
, Inc.,
Hilton
World
wide Holdings
Inc.,
Wy
ndh
am H
otel
s & Re
sor
t
s Inc
., Acc
or S
.
A.
So
urce
: ST
R
So
urce
: ST
R
So
urce
: ST
R
9
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Industr
y ov
er
view
F
ranchised
71%
28%
1%
Manage
d
Own
ed
, leas
ed
and ma
nag
ed
lease
Americas
57%
25%
18%
EME
AA
Gre
ater Ch
ina
Luxur
y
&
L
ife
st
yle
13%
15%
63%
9%
Premium
Essential
s
Suites
F
ranchised
58%
42%
Manage
d
36%
34%
30%
Americas
EME
AA
Gre
ater Ch
ina
Luxur
y
&
L
ife
st
yle
19%
17%
54%
10%
Premium
Essential
s
Suites
T
he gr
owt
h of ou
r bus
in
es
s rel
ies
on t
wo fund
am
ent
al grow
th
driv
ers: re
venue
per av
ailable r
oom
(RevP
AR) an
d inc
rea
si
ng th
e num
be
r of
roo
ms a
cro
ss o
ur es
tate
. RevPAR indic
ate
s
the va
lue g
ue
sts a
sc
ribe t
o a given h
otel
,
bra
nd or m
arket a
nd gr
ows whe
n th
ey
stay m
ore of
ten o
r pay hig
he
r rate
s.
Room
supply r
elects ho
w attr
activ
e the
hote
l ind
us
tr
y is as a
n inves
tme
nt fro
m
an ow
ner’
s perspective.
T
o dr
ive growt
h, we have a por
t
folio of
17 bran
ds acro
ss mo
re than 10
0 c
ountrie
s
in the Su
ites, E
ss
ential
s, Prem
ium and
Luxur
y & Life
st
yle c
atego
ries
. Supp
or
ted by
a lea
ding l
oyalty pro
gramm
e and p
ower
ful
tech
nolo
gy
, our bra
nds me
et cl
ear g
ues
t
ne
eds a
nd ge
nerate s
trong return
s for our
owne
rs, whi
ch in turn at
trac
ts fur
the
r hotel
investm
ent an
d grows our e
state
.
IH
G is an a
sse
t-light bus
ine
ss an
d our
focu
s is on growi
ng fee reven
ues a
nd fee
margin
s, whic
h we can d
o with limi
ted
cap
ital re
quire
ment
s. Thi
s ena
ble
s us
to grow and inves
t in our b
usin
es
s while
gen
eratin
g high return
s on investe
d ca
pita
l
and s
trong ca
sh 
low.
We gene
rally fra
nchi
se or m
anag
e hotel
s,
with the decision largely driven by
market
maturit
y
, owner p
refere
nce an
d, in ce
rt
ain
ca
ses
, the pa
rtic
ular b
rand. H
otels i
n the
Es
senti
als c
atego
ry te
nd to be fra
nchi
se
d,
while L
uxur
y & Lifes
ty
le hotel
s are
predominantly manage
d.
Our br
oad geographi
c spread
and
weightin
g towards es
se
ntial bu
sine
ss a
nd
dom
esti
c leis
ure travel ha
s driven re
silie
nce
relati
ve to the wide
r indu
str
y during th
e
pan
demi
c. We are weighte
d towards
non-
urban markets which
are less reliant
on intern
ation
al inb
ound trave
l and le
ss
expo
se
d to large grou
p mee
tings an
d
events
. A com
binati
on of the
se fa
ctors
,
alon
g with our e
nterpri
se c
apab
ilit
y
, ha
s
allowe
d IH
G to outpe
r
form the wi
der
indu
str
y in RevPAR growth
.
Our a
ss
et-light bu
sine
ss m
ode
l
me
ans we do n
ot emp
loy coll
eag
ues
in fran
chis
e hotels
, nor d
o we control
their da
y-to-
day
operati
ons, policies
or pro
ce
dures
. That b
eing s
aid, I
HG
and o
ur franc
hise h
otels are c
ommi
tte
d
to deli
vering a c
ons
istent b
rand
experi
ence, conduct
ing busi
ness
responsibly
and sustai
nably so
that
we deli
ver our p
urpo
se of p
roviding
T
ru
e Ho
spit
alit
y for G
ood
.
Ho
lid
ay Inn E
xpre
ss
® & Suite
s Jo
hor B
ah
ru, Ma
lays
ia
T
otal dev
e
lopment pipeline
2
70,
9
6
0
r
ooms
T
ot
al sys
tem si
ze
8
8
0,
3
2
7
roo
ms
Composition of r
ooms
Composition of r
ooms
Ou
r busi
ness model
W
e
pr
edominan
t
ly fr
anchise our br
ands and manage hot
els
on beha
l
f o
f t
hi
r
d-pa
r
ty hot
el ow
ners a
nd ha
v
e a w
ei
gh
ti
ng
t
o mor
e r
esi
l
ien
t domes
t
ic no
n-ur
ban ma
r
k
et
s.
Strate
gic Re
po
rt
10
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
F
ranchi
sed hot
els
We rece
ive a ixe
d perc
enta
ge of ro
oms
revenue w
hen a gu
es
t stays at on
e
of our h
otels
. This i
s our fee reve
nue.
Own
ed
, lea
se
d an
d man
ag
ed l
eas
e hote
ls
For hotel
s which we ow
n or le
ase, we re
co
rd the entire reven
ue and p
roit o
f the
hotel in o
ur i
nanc
ial st
ateme
nts. O
ur own
ed, le
as
ed an
d mana
ge
d lea
se hote
ls
have redu
ce
d from over 18
0 hotel
s 20 year
s ago, to 19 hote
ls at 31 D
ec
emb
er 20
21
.
Managed hot
els
Fr
om ou
r mana
ge
d hotels
, we gen
erate
revenue th
rough a 
ixed p
erce
ntag
e of
the tota
l hotel reven
ue and a p
ropo
rtio
n
of hot
el proit.
H
ow we
g
en
er
ate
reven
ue
S
ys
t
e
m Fu
n
d
IH
G man
age
s a Syste
m Fund for the
be
ne
it of hote
ls withi
n the IH
G syste
m
and th
eir third
-pa
rt
y owne
rs, w
ho pay
contr
ibutio
ns into it. T
his inc
lude
s a
marketing a
nd res
er
vation a
ss
es
sme
nt
and a loyal
ty as
se
ss
ment
.
The S
ystem Fund al
so be
ne
it
s from
proc
ee
ds from th
e sal
e of IH
G
® Rewards
points unde
r third-par
ty c
o-
branding
arr
angements.
Give
n the sign
ii
cant s
cal
e of the
Syste
m Fund, IH
G can m
ake subs
tantia
l
investm
ents in m
arketing b
rands
,
creati
ng a le
ading l
oyalty p
rogramm
e
and p
ower
ful tec
hnol
ogy
, incl
uding
re
venue
managemen
t s
ystem
s, t
hereb
y
streng
thenin
g the IH
G enterp
rise.
Thir
d-
par
ty h
otel ow
ne
rs pay:
IHG re
venue f
rom r
eportable segments
ª
202
1: $1,
39
0 milli
on
Revenu
e attrib
uta
ble to IH
G co
mpri
ses:
•
Fee b
usin
es
s revenue fro
m repo
rt
able s
egm
ent
s:
–
F
ranchise f
ees
–
Managemen
t fees
–
Ce
ntral revenue (
prin
cipa
lly tech
nolo
gy fe
e inco
me)
•
All reven
ue from own
ed, l
eas
ed an
d man
age
d lea
se ho
tels.
See page 72
for
more in
format
ion.
Fee
s
to I
HG in re
latio
n to the lice
nsi
ng of our b
rand
s and,
if applicable, hotel managem
ent serv
ices.
Assessments and
contr
ibut
ions
which are co
llec
ted by I
HG
for sp
eci
ic u
se with
in the Sys
tem Fund.
Sys
tem Fund reve
nue
s
202
1: $9
28 milli
on
The S
ystem Fund is n
ot man
age
d to a pro
it or lo
ss for I
HG
over the lo
nge
r term, bu
t for the b
ene
it o
f hotel
s in the
IH
G system
, and co
mpri
ses
:
•
As
se
ss
ment
s and co
ntribu
tions p
aid by hote
ls
•
Reven
ue rec
ogni
se
d on co
nsump
tion of I
HG Rewa
rds
loya
lt
y p
oin
ts
See page 56
for mor
e in
format
ion.
IH
G fee re
venu
e
System
Fu
nd
Hote
l own
er
F
ranchised
RevP
AR
X
Rooms
X
Royal
ty r
ate
Managed
Fixe
d % of tot
al hot
el
rev
enue a
s a ma
nagement
fee a
nd t
ypi
cal
ly a sh
are
of hot
el gro
ss o
per
ating
proit a
fter deduction
of mana
gement f
ees
Guests
Hote
l
a
Exc
lud
es S
yst
em Fun
d and h
otel c
os
t rei
mbu
rs
eme
nt
s.
11
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Our business model
Our b
usi
ness model
co
nti
nu
e
d
Our a
ss
et-light bu
sine
ss m
ode
l is
highly c
as
h gen
erative thro
ugh the cycl
e
and e
nabl
es us to inve
st in our b
rand
s
and s
trength
en our e
nterpri
se. We have
a dis
ciplin
ed ap
proa
ch to cap
ital
allo
catio
n, whic
h ens
ures that th
e
business is ap
propria
tely
in
vested
in,
whilst maintainin
g an eicie
nt and
conse
rvative balance sheet
.
Beyon
d this, we l
ook to return s
urplu
s
ca
sh to sha
rehol
der
s through o
rdinar
y
and speci
al dividends and share
buyb
acks
, with our o
bje
ctive to maint
ain
an invest
ment-g
rade c
redit rati
ng. On
e of
the me
asu
res we us
e to monito
r this is n
et
debt
: adju
sted EB
IT
DA and we aim for
a ratio of 2.
5
3.0x.
Liquidity through the r
ecovery
As o
ccu
pan
cie
s have re
cove
red, t
he
stren
gth of our c
as
h gen
eration b
ec
ame
evide
nt with ad
juste
d free c
as
h low
a
gen
eratio
n of $5
71m in 2
02
1.
Discipl
ined appr
oach t
o capital al
locati
on and manag
ing l
iqui
dity
Rec
overing d
eman
d during 2
02
1 and s
trong
co
st co
ntrol resu
lted in rap
id de
levera
ging.
As su
ch, our n
et deb
t: adju
sted E
BIT
DA ratio
was 3.0
x at 31 De
ce
mbe
r 202
1 (
7
.7x as at
31 D
ec
emb
er 202
0).
Duri
ng the yea
r
, we rep
aid £6
0
0m of
com
merci
al pap
er i
ssu
ed un
der th
e UK
Gove
rnm
ent
’s Cov
id C
orp
or
ate Fin
an
cing
Facilit
y (CC
FF). Foll
owing th
e iss
uanc
e
and re
payme
nt of bon
ds in 20
20, our n
ext
bon
d maturi
ty is £
173m i
n Novemb
er 20
2
2,
with no f
urth
er b
ond m
aturitie
s until
Oc
tobe
r 2024. A
s at 31 D
ec
emb
er 202
1,
IH
G had avail
able l
iquidi
ty of $
2.7bn.
Our $
1.3
5b
n syndic
ated a
nd bil
ateral
revolvin
g credi
t facili
ties (RC
F) h
ave
coven
ant rela
xation
s in pla
ce for 20
2
2
(see pa
ge 59). O
ur coven
ant levera
ge was
3.0x at 3
1 De
cem
ber 2
02
1 (202
0: 8.7x).
Loo
king for
ward, o
ur app
roach to c
apit
al
allo
catio
n remai
ns unc
hang
ed. A
s the
bus
ine
ss rec
overs
, our prio
ritie
s for
the us
es of c
as
h are con
sis
tent: en
sure
the busi
ness is appr
opriat
ely inv
ested
in to drive grow
th; targ
et sus
tain
abl
e
grow
th in the ordi
nar
y divi
dend; a
nd
return surp
lus fu
nds to sh
areho
lde
rs,
while at th
e sa
me time c
ons
ide
ring our
sta
ted aim of a l
everag
e ratio of 2.
53
.0x,
and o
ur obje
ctive of m
ainta
ining an
investm
ent-gr
ade cre
dit ratin
g.
Bon
d maturity pro
ile
($
m)
2022
2023
2024
202 5
20
26
202
7
20
28
233
0
565
408
473
570
537
Our a
ss
et-light bu
sine
ss m
ode
l requi
res
a limite
d incre
ase i
n IH
G’s own ope
rating
expe
nditure to su
ppo
rt o
ur revenue
grow
th, which d
elive
rs op
eratin
g pro
it
and fe
e margin g
rowth
.
The b
ene
i
t of ope
ration
al e
ici
enci
es,
along with brands and markets becoming
more m
ature, has s
upp
or
ted fee m
argin
expan
sion o
n averag
e by over 100
bp
s
a year b
etwe
en 20
0
920
19.
a
U
se of N
on
-
GA
AP m
ea
sure
s: I
n add
itio
n to p
er
form
an
ce m
eas
ure
s dir
ect
ly ob
se
rv
abl
e in th
e Gro
up Fi
nan
ci
al St
ate
me
nts (I
FR
S me
asu
res), a
ddi
tio
nal 
in
anc
ial m
ea
sur
es
(des
cri
be
d as N
on
-
GA
AP) are p
re
sen
ted t
hat a
re us
ed in
tern
all
y by ma
nag
em
ent a
s key me
as
ures t
o as
se
ss p
er
for
man
ce
. No
n-
GA
AP m
ea
sur
es ar
e eith
er n
ot de
i
ne
d und
er
IF
RS or a
re ad
jus
ted I
FR
S ig
ure
s. Fur
th
er ex
pla
nat
ion i
n rela
tio
n to the
se m
ea
sur
es c
an be f
oun
d on p
age 7
3 to 7
7 and r
ec
onc
ili
atio
ns to I
FR
S ig
ure
s, wh
ere t
hey h
ave be
en
adj
us
ted, a
re on p
ag
es 2
18 to 2
23
.
For franc
his
ed hote
ls, the 
low throu
gh of
revenue to o
perati
ng pro
it is hi
gher th
an it
is at ma
nage
d hote
ls, give
n our wel
l-inve
sted
sc
ale pl
atfo
rm whe
re limited re
sou
rces are
requi
red to sup
por
t the a
dditio
n of an
incre
ment
al hote
l. This i
s mos
t evide
nt in
our Am
eric
as re
gion, wh
ere fee m
argins a
re
the high
es
t, re
lec
ting our s
cal
e and aro
und
90
% of our h
otels o
per
ating und
er our
franchised model.
Acros
s our m
anag
ed h
otels, th
e low
through o
f revenue to pro
it c
an be l
ower
,
given hi
gher o
per
ating exp
enditu
re on
ope
ration
s team
s supp
or
ting th
e
hotel net
work.
How w
e dri
ve oper
at
ing pr
oit
Fee
ma
rg
in
a
by re
gi
on
Ameri
cas
F
Y
2018
74
.
8
%
F
Y
2019
7
7.
7
%
F
Y
202
0
70
.7
%
F
Y
202
1
82.
2%
EMEA
A
F
Y
2018
62.3%
F
Y
2019
58.6%
F
Y
202
0
-
1
7.
9
%
F
Y
20
21
21
.5%
Gre
ate
r Chi
na
F
Y
2018
4
6
.7
%
F
Y
2019
5
4
.1
%
F
Y
202
0
4
5.
5%
F
Y
202
1
4
7.
3
%
T
otal IHG
F
Y
2018
53.3%
F
Y
2019
5
4
.1
%
F
Y
202
0
3
4
.1
%
F
Y
202
1
49.6
%
a
Fee m
argi
n exclu
de
s own
ed, l
ea
se
d an
d man
ag
ed l
eas
e ho
tel
s, si
gni
ic
an
t liqu
id
ated d
am
age
s an
d the re
su
lts o
f the G
rou
p’s cap
tive in
su
ran
ce c
omp
any an
d is s
tate
d at A
ER
.
Our ow
ned, l
eas
ed a
nd man
age
d le
ase h
otels ten
d to have signi
ic
antly lowe
r margin
s than o
ur fee b
usin
es
s. Thi
s is be
cau
se we no
t
only re
cord th
e entire revenu
e of the h
otel, but a
lso th
e entire co
st ba
se, wh
ich inc
lude
s st
a and m
ainten
ance o
f the hote
l.
Strate
gic Re
po
rt
12
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Consisten
t uses
of
cash
Our p
rioriti
es for th
e use
s of ca
sh are
con
sis
tent with p
revious ye
ars an
d
comprise th
ree pil
lars:
1
Inves
t in th
e bu
sin
es
s
to dr
ive
growth
We look to s
trategic
ally
drive grow
th, whil
e
maintaining strict c
ontrol
on inves
tment
s and ou
r
day-
to
-
d
ay c
ap
it
al
exp
end
iture
s.
2
T
arget sustainable gro
wth
in th
e ord
ina
ry di
vide
nd
IH
G has a d
ivide
nd p
olicy
whe
re we would lo
ok to
grow the ordi
nar
y divi
dend
each year
, while balancing
all our s
takeh
olde
r intere
sts
and e
nsurin
g our lo
ng-
term
success.
3
Retur
n surplus funds
to shareholders
The G
roup ha
s a
strong tr
ack rec
ord of
returnin
g surplu
s ca
sh to
shareholders. Since 2003,
including the ordinar
y
divid
end, th
e Grou
p
has re
turned
$13.6bn.
Sha
rehold
er returns (20
0319)
(
$bn
)
Sou
rce of return
s
7.
8
13.6
5.8
As
set
dispo
sals
Operational
ca
sh flow
s
To
t
a
l
Capit
al expend
iture
Spe
nd in
curred by I
HG c
an be s
umma
rise
d as foll
ows:
Ty
p
e
Wh
at is i
t?
Recent e
xamples
Mainte
nanc
e capita
l expenditure
an
d key m
on
ey
Mai
ntenan
ce c
apit
al expe
nditure i
s devoted
to the mai
ntenan
ce of ou
r system
s and
cor
porate o
ic
es, a
long w
ith our own
ed,
lea
se
d and m
anag
ed le
as
e hotels
.
Key money is exp
en
diture us
ed to ac
ce
ss
strate
gic opp
or
tuniti
es, p
arti
cula
rly in
high
-q
ualit
y and s
oug
ht-afte
r loc
ation
s,
when returns are
inancially and/or
strategically attractive.
E
xampl
es of m
aintena
nce s
pen
d incl
ude
mainte
nanc
e of our o
ic
es, s
uch a
s
reform
attin
g in light of th
e pand
emic
.
Acros
s our own
ed, l
eas
ed an
d man
age
d
lea
se ho
tels we inves
t in refurb
ishm
ent
of pub
lic sp
ace
s and g
ues
t room
s.
E
xampl
es of key mon
ey inclu
de
inves
tme
nts to s
ec
ure rep
res
ent
ation
for our b
rand
s in prim
e loc
ation
s.
Recycl
ab
le inves
tme
nts t
o drive th
e
grow
th of o
ur b
rand
s an
d our ex
pan
sio
n
in pri
orit
y ma
rkets
Recycla
ble inves
tme
nts are ca
pita
l use
d to
acq
uire real e
st
ate or investm
ent throu
gh joint
venture
s or eq
uity c
api
tal. T
his exp
enditu
re
is strate
gic to he
lp buil
d bran
d pres
enc
e.
We would lo
ok to dive
st the
se inves
tment
s
at an app
ropri
ate time and re
invest th
e
proc
ee
ds ac
ross th
ebus
ine
ss.
Examples of r
e
cy
clable i
nv
estments
in prio
r years i
nclu
de our E
VE
N® H
otels
bran
d, whe
re we use
d our c
apit
al to
devel
op three h
otel pro
per
tie
s in the U
S
to showc
ase th
e bran
d. The
se h
otels
have now be
en s
old a
nd op
erate und
er
a franch
ise agreement.
System F
und capital in
vestments f
or
strategic i
nv
estment to dr
ive
growth
at hote
l leve
l
The d
evelop
ment o
f tool
s and syste
ms that
hotel
s use to dri
ve per
form
anc
e. This i
s
cha
rged b
ack to the S
ystem Fund over
the life of th
e as
set.
We continu
e to develo
p our cl
oud
-b
ase
d
Gue
st Re
se
rvatio
n Sys
tem (GRS) and
IH
G Co
nce
rto™. Othe
r exampl
es in
clud
e
redeve
lop
ment of th
e IH
G mob
ile app
ahe
ad of la
unch in 2
02
2.
Dividen
d policy
The B
oard c
ons
isten
tly reviews th
e
Group’s appro
ach to c
apit
al allo
cati
on
and s
eek
s to mainta
in an e
icie
nt bal
anc
e
she
et an
d investm
ent-gra
de cre
dit rating
.
IH
G has a
n excelle
nt track re
cord o
f
returnin
g funds to s
hareh
old
ers thro
ugh
ordinary and spe
cial dividends, and share
buyb
acks
. The o
rdinar
y div
ide
nd pai
d to
sha
rehol
der
s incre
ase
d at an 11% CAGR
bet
wee
n 20
04 an
d 2019.
Whe
n reviewin
g divid
end re
com
men
dation
s,
the Di
rector
s take into ac
coun
t the lon
g-te
rm
con
se
que
nce
s. Th
e Bo
ard loo
ks to ensu
re
that any rec
omm
end
ation do
es n
ot harm th
e
sus
tain
able s
ucc
es
s of the C
omp
any and tha
t
there a
re su
icie
nt distri
buta
ble re
ser
ves to
pay any rec
omme
nde
d divi
den
d. The B
oard
as
ses
se
s the G
roup’s ability to p
ay a divide
nd
be
aring in mi
nd its re
sp
onsi
bilitie
s to its
sta
kehold
ers a
nd its o
bje
ctive of ma
intain
ing
an invest
ment-g
rade c
redit rati
ng.
The B
oard i
s therefo
re prop
osin
g a in
al
divid
end o
f 85.
9¢ in re
sp
ect o
f 202
1, an
amount equivalent to the wit
hdrawn inal
payme
nt in res
pe
ct of 20
19.
S
ee p
age
s 92
, 107
, 113 and 1
14 for
info
rmati
on ab
out h
ow we have e
ng
age
d
with s
hare
ho
lde
rs an
d inves
tor
s durin
g 20
21.
13
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Our business model
T
r
ends
shaping our ind
ust
r
y
1
La
bo
ur
and
sup
p
ly
c
h
a
i
n
p
re
s
s
u
re
s
Gover
nment-m
andate
d hote
l clos
ures in 2
020 s
aw many pe
opl
e
in hos
pit
alit
y switch c
aree
rs, an
d as de
man
d returns, va
can
cies a
re
at rec
ord high
s in som
e markets
, with the Worl
d T
ravel & Tourism
Co
uncil p
redic
ting em
ploym
ent in the s
ec
tor will ris
e 18% in 2
02
2
to 324 millio
n availabl
e jobs
. The i
ndus
try m
ust wo
rk togeth
er with
governm
ents to a
ddres
s the
se st
a sh
or
tag
es, i
nclu
ding throu
gh
facil
itatin
g greater l
abo
ur mob
ilit
y acros
s bo
rders
, shif
ting to rem
ote
workin
g, upskil
ling t
he wor
kforce,
promot
ing educat
ion and
app
rentice
ship
s, an
d creatin
g fair
, s
afe role
s.
As ma
rkets pivot towards g
rowth, s
uppl
y chain
s have als
o be
en
disr
upted. W
ith the l
ack of avail
able p
roduc
ts la
rgely d
ue to inpu
t
sho
rt
age
s, bu
sine
ss
es wi
th comp
lex sup
ply ch
ains a
re ind
ing thing
s
par
ticu
larly c
halle
nging
. For hotel
s, this h
as le
d to shor
t
age
s in key
area
s, from lin
en for gu
est s
tays to timb
er for c
ons
tructi
on proje
ct
s.
The pandemi
c has
acceler
at
ed a
nu
mber o
f
pre-
existing
tr
en
ds
within
the ho
t
el indust
ry
, includ
ing
digitalisation and
cust
ome
r
c
entri
cit
y
,
alo
n
g
with
greater
demand f
or
sust
ai
nable
br
anded e
xper
iences. I
n t
he
nea
r t
erm
, ne
w fa
ct
ors h
av
e
also emer
ge
d, incl
uding
managing
labo
ur and
supply shortages.
D
urin
g the p
an
dem
ic, th
e nat
ure of h
otel
stay
s changed signiicantly
. As guests
retu
rne
d to travel fo
llowi
ng th
e lif
ting o
f
res
tric
tio
ns an
d reo
pe
nin
g of hote
ls
, the
re wa
s a
signiicant f
ocus on cleanliness, with
the industry
collaborati
ng with
leading e
xperts in
this ield.
The vo
latil
e nat
ure of in
fec
tion r
ates a
lso s
aw
guests welcome le
xible cancellat
ion policies
an
d the ex
ten
sio
n of loyalt
y pro
gra
mme s
tatu
s.
As vac
cine
s have rolle
d out a
nd res
trictio
ns ea
se
d
or lif
ted, w
hat
’s bec
ome cl
ear i
s that the p
and
emic
was a ‘deman
d supp
ress
ion’ event fo
r the indu
str
y
,
with travel s
ubse
que
ntly bo
uncin
g bac
k
signi
ic
antly. This has b
ee
n quic
kest in do
mes
tic
lei
sure, whil
st es
se
ntial bu
sine
ss d
ema
nd ha
s
proven rel
atively re
silie
nt, pa
rtic
ularly i
n exten
de
d
stay ch
ains a
nd in the e
co
nomy and mi
dsc
ale
cate
gorie
s. D
isc
retiona
ry b
usin
es
s travel, group
bo
okin
gs and in
ternatio
nal trip
s have als
o shown
encouraging si
gns of r
ecovery
.
T
e
chn
olo
gy and di
gitali
satio
n co
ntinue to pl
ay a k
ey
role ac
ross t
he entire gu
est j
ourney. This inc
lude
s
digit
al bo
okin
g, greate
r levels o
f per
son
alis
ation an
d
the abi
lity to c
hoo
se roo
m attri
butes
, and se
r
vice
deli
ver
y during a g
ues
t stay
.
Our r
esponse
•
Op
timisi
ng op
erating m
ode
ls at hote
ls to imp
rove eic
iency
and cre
ate savin
gs to he
lp os
et high
er st
a co
sts
•
Worki
ng with rec
ruitm
ent age
nci
es to provid
e traine
d st
a
on de
man
d when re
quire
d
•
Provid
ed n
ew hiring re
sourc
es, d
ee
pen
ed rel
ation
ship
s with
job p
latfo
rms, an
d incre
as
ed awaren
es
s of vac
anci
es throu
gh
social media
•
In Au
stralia
, our myFlex in
itiative ha
s given h
otel co
lle
ague
s
the l
exibili
ty to work a
cros
s any of our hote
ls in the c
ountr
y
’s
man
age
d est
ate, sup
por
ting b
oth st
a
ing level
s and
work
-
life balance
•
Us
ing our I
HG
® Ac
ade
my
t
o prep
are young p
eo
ple for a c
aree
r
in hos
pit
alit
y
, su
ppo
rte
d by a new vir
tua
l lear
ning pl
atfo
rm
•
Enh
ancin
g our gl
obal p
rocure
ment o
er
, with our te
ams
in
ding m
ore ways to leverag
e cen
tral purch
asin
g and s
eek
co
st-e
ecti
ve soluti
ons fo
r owner
s. D
uring 20
21, I
HG
proc
ureme
nt deli
vered a gre
ater th
an 10% c
ost re
duc
tion
on $1
.3
bn of sp
end a
cros
s IH
G’s hotel an
d corp
orate s
upply
chains sp
anning 15 countries
S
ee p
age
s 19 to 28
, and 3
9 for m
ore info
rma
tion
.
Strate
gic Re
po
rt
14
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
3
2
Sustain
abi
li
t
y
considera
tions
De
mand f
or
br
anded
ho
t
el e
x
per
i
ences
Gue
st
s are paying c
los
er at
tention to a c
omp
any’s comm
itment to
loo
k af
ter the worl
d aroun
d us. A gl
obal s
tudy c
ommi
ssi
one
d by IH
G
indic
ated th
at more th
an 80
% of co
nsum
ers n
oted th
e impo
rt
anc
e
of cho
osi
ng a hotel b
rand th
at op
erates re
sp
onsi
bly
, with gue
sts
willin
g to spe
nd on avera
ge 31% m
ore on ac
com
mod
ation th
at mee
ts
this ne
ed
. Bus
ine
ss cu
stom
ers are al
so in
creas
ingly re
que
sting
inform
ation ab
out su
st
ainab
le ac
comm
od
ation an
d mee
ting opti
ons
to help m
ake progre
ss ag
ains
t their ow
n targe
ts.
With s
takeho
lde
rs now exp
ec
ting bu
sine
ss
es to op
erate an
d grow
resp
on
sibly, a rapidly growin
g numb
er of org
anis
ation
s are maki
ng
exte
rnal c
ommitm
ents to dri
ve environm
enta
l and s
ocia
l chan
ge,
incl
uding j
oining th
e UN
’s Race to Zero by up
gradin
g their c
arb
on
emissio
ns targets.
Gue
st
s are incre
asin
gly se
ek
ing the re
ass
uranc
e of a high
-
quali
ty
,
safe b
rande
d st
ay as the in
dustr
y re
covers f
rom the pa
nde
mic.
At the sa
me time, i
nde
pen
dent h
otels are re
co
gnisi
ng the ad
vanta
ges
of be
ing at
tac
hed to a b
rande
d syste
m, incl
uding l
ower dis
tributi
on
co
sts, m
arketing at s
cal
e and a powe
r
ful loyalt
y oer th
at ca
n drive
repe
at gue
st s
tays.
While m
any inde
pe
nde
nt hotel
s remain
ed cl
ose
d durin
g the
pandemic and experien
ced numerous ixed co
sts, many branded
prop
er
ties we
re more ab
le to me
et dem
and fro
m quara
ntine st
ays,
key workers and a gl
oba
l sal
es net
work a
dept a
t capturi
ng the return
of travel. As s
uch, ow
ner
s are incre
asin
gly lo
okin
g at conver
sion
s
to join a bra
nde
d system w
ith limite
d cha
nge
s to their pro
per
tie
s,
par
ticu
larly in th
e ups
cal
e and luxu
ry s
egm
ents
.
Our r
esponse
•
L
aunc
hing an au
tomate
d utilit
y data c
oll
ecti
on tool a
cros
s
all our h
otels gl
oba
lly to inform ste
ps to op
erate su
stai
nabl
y
•
D
evelop
ing our H
otel En
ergy Re
duc
tion Op
po
rtun
ities (H
ERO)
tool, w
hich will b
e key to helpin
g our hote
ls ta
rget en
ergy an
d
carbon reduc
tions
•
C
ommit
ting to a 1.
5°C s
cien
ce
-b
as
ed ta
rget (SBT
), whi
ch put
s
IH
G on a traje
ctor
y to ach
ieve net ze
ro by 2050. I
n addi
tion,
we have join
ed Ra
ce to Zero – the U
N
-
end
orse
d c
ampai
gn
to rally le
ade
rsh
ip and su
ppo
rt fro
m citie
s, bu
sine
ss
es an
d
investor
s for a gre
ene
r
, mo
re resili
ent, n
et zero c
arbo
n future
•
On t
rack to eli
minate si
ngle
-u
se min
iature bath
room am
eniti
es
from our h
otels d
uring 20
2
2
•
Est
ablishing an Envir
onmental Sus
tainability Co
mmittee with
the I
HG Ow
ner
s Ass
oci
ation, w
hich will c
olla
bor
ate with IH
G
on en
ergy re
ducti
on in hote
l ope
ration
s
•
Par
tne
ring wi
th supp
lier
s to help e
nsure th
ey share th
e sam
e
resp
on
sible b
usi
nes
s co
mmitme
nts as we d
o
•
Worki
ng with a la
rge numb
er of g
overnme
nt and in
dustr
y
sta
kehold
ers to h
elp provi
de sup
por
t for o
ur owne
rs throu
gh
pol
icie
s and in
centive
s, su
ch as gre
en 
inan
cing
S
ee p
age
s 29 to 3
5 and 2
2
9 to 23
0 for mo
re info
rmati
on.
Our r
esponse
•
C
ontinu
ed to stren
gthe
n our ente
rpris
e with en
hanc
em
ents
to our revenu
e deli
ver
y system
s, tech
nolo
gy o
er and
ope
ration
al exp
er
tise
•
Enri
che
d our loyalt
y oe
r with dy
namic p
ricing fo
r Reward
nights
, with fur
the
r enh
anc
eme
nts in 20
22 ex
pe
cted to
str
engthen
member en
gagement
•
Eng
aging w
ith owne
rs of in
dep
end
ent hote
ls on p
otential
conversion
s while maintaining brand st
andards
•
Su
cce
ss
ful la
unch of up
sc
ale c
onvers
ion bra
nd voc
o, which
has fewe
r bran
d requi
reme
nts, bu
t all the ha
llmarks o
f a
high-
quality and safe guest experienc
e
•
L
aunc
h of Vign
ette C
oll
ecti
on, whic
h allows ow
ner
s of
high
-q
ualit
y ups
ca
le and lu
xur
y hotels to m
ainta
in the dis
tinct
ide
ntity o
f their p
rope
rti
es whil
e enjoyin
g the be
ne
it
s of
a bran
ded sy
stem
•
Gi
ving gu
est
s as
suran
ce throu
ghout th
eir s
tays with ou
r
IH
G® C
le
an Promi
se, wh
ere high s
tand
ards of hygien
e have
be
en deve
lop
ed with C
level
and C
linic, Ec
olab a
nd Dive
rsey
S
ee p
age
s 17 to 2
2 for mo
re info
rmat
ion
.
Six S
en
se
s Zighy B
ay
, Oma
n
Six S
en
se
s Zighy B
ay
, Oma
n
Six S
en
se
s Zighy B
ay
, Oma
n
15
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
T
rends shapi
ng our
industry
O
ur am
biti
on to d
elive
r hig
h-
qu
alit
y
,
industry-leading net
rooms
grow
th i
n the c
omi
ng yea
rs is
und
erp
inn
ed by st
rate
gic inve
stm
ent i
n our
bra
nd
s, pe
op
le, sys
tem
s and s
ca
le to dri
ve
grow
th a
cro
ss o
ur p
ort
foli
o in hi
gh-val
ue
ma
rkets an
d se
gme
nts
.
Over th
e lon
g term, with di
scip
line
d
ex
ecution
, th
is appr
oach supports sustai
ned
grow
th in ca
sh l
ows and p
roit
s, whic
h can
be rei
nvested i
n our bu
sine
ss an
d returne
d
to share
hol
der
s. In the s
hor
ter te
rm, with
volatili
ty rem
ainin
g a factor a
s market
s
resp
ond to a
nd rec
over from the p
and
emic,
we conti
nue to foc
us on reb
uildin
g revenue
and p
roit b
ack to pr
ior leve
ls, whil
e still
investin
g in grow
th.
Our fo
ur strate
gic prio
rities h
ave bee
n
des
igne
d to put th
e expan
ded b
rand p
or
tfo
lio
we have built i
n rece
nt year
s at the he
ar
t of
our bu
sin
ess
, and ou
r owner
s and gu
est
s at
the he
ar
t of our thi
nking
. They rec
ogn
ise th
e
cruc
ial rol
e of a sop
histi
cate
d, well-
investe
d
digit
al app
roach
, and en
sure we me
et ou
r
growing re
spo
nsib
ilit
y to care for a
nd invest
in our p
eop
le, an
d to make a pos
itive
die
renc
e to our co
mmuniti
es an
d plan
et.
Combined, t
he pro
jects and
program
mes
that su
ppo
rt th
es
e four pill
ars ea
ch yea
r
are de
signe
d to improve p
er
forma
nce an
d
stimul
ate grow
th by helpi
ng us cre
ate
com
petiti
ve advant
age, b
uild ric
her gu
est
and o
wner rela
tionsh
ips, opera
te su
stainably
and re
spo
nsib
ly
, a
nd enh
anc
e a culture th
at
bring
s the b
est o
ut of our te
ams
.
Our p
lans a
nd the
ir executio
n are sh
ape
d
by what we have le
arnt thro
ugho
ut the
pan
demi
c, as well a
s the curre
nt ec
ono
mic
and s
oci
al environm
ent, a
nd ind
ustr
y tren
ds
and ch
alle
nge
s as ma
rkets rec
over
.
Our s
ucc
es
s and rep
utati
on are de
pe
nde
nt
on our c
omm
itment to o
ur purp
ose o
f
T
ru
e Ho
spit
alit
y for G
ood, u
nde
rpinn
ed by
our work
pla
ce cul
ture and c
ommitm
ent to
ope
rating in a re
sp
ons
ible an
d ethic
al man
ner.
T
o
geth
er
, th
es
e ele
ment
s ens
ure we buil
d
trust w
ith all our s
takeh
old
ers an
d work
within a c
ulture of res
pe
ct, re
spo
nsib
ilit
y and
inclusivity
, alongside clear
engagement with
our str
ategy an
d the ways in whi
ch we aim
to create a st
ronge
r busi
nes
s for ever
yon
e.
S
ee ho
w the B
oard c
on
sid
ere
d strat
egi
c and
op
erati
on
al mat
ter
s on p
age
s 9
0 to 91.
S
ee ho
w IH
G doe
s bu
sin
es
s on p
age
s 36 to 3
9.
Ou
r st
r
a
t
egy
BEHA
V
IOU
RS
M
ove
fa
st
Solut
ions
f
ocused
Think
return
Buil
d
o
ne
te
a
m
PRIORITIES
Build lo
ved and
tr
usted br
ands
C
u
s
to
m
e
r
ce
ntri
c i
n
all w
e do
Create digital
a
dva
nt
a
g
e
C
a
re
fo
r
our peop
le,
c
om
mu
niti
e
s
andp
lanet
OUR A
MBITION
To
d
e
l
i
v
e
r
indu
s
tr
y-l
e
adin
g
n
e
t
ro
o
m
s
g
row
t
h
O
U
R
S
T
R
AT
E
G
Y
Use our s
cale a
nd e
xperti
se t
o cr
eat
e the
e
x
cepti
ona
l gues
t e
xper
iences and o
wner
r
etu
rn
s needed t
o gr
ow our br
ands i
n
the i
ndust
ry’
s most v
alua
ble mark
ets and
se
gme
nts. D
elivered through
a cu
ltur
e
th
at r
etai
ns and a
ttr
ac
ts t
he best peopl
e
and embr
ac
es oppor
t
uni
ties t
o positi
v
ely
impac
t the w
orld ar
ound us.
OUR PUR
POSE
T
rue
H
o
s
p
ita
lit
y
f
or Good
Strate
gic Re
po
rt
16
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
2011
2021
Lux
ur
y
& Lif
e
style
Premium
E
s
s
enti
al
s
S
ui
te
s
C
ent
ral to o
ur su
cc
es
s is t
he love
an
d trus
t our g
ue
sts a
nd own
er
s
fee
l for ou
r bra
nd
s. We foc
us o
n
inves
ting i
n a por
tf
olio t
hat of
fe
rs gu
es
ts
excep
tion
al qu
alit
y an
d expe
rie
nce
s, a
nd
one t
hat r
epr
es
ent
s a lea
din
g ch
oic
e for
owne
rs
, buil
t on a c
omm
itm
ent to in
du
str
y
out
per
form
anc
e, effe
ctive h
otel life
cycle
management and strong r
eturns.
Key to our strateg
y is havin
g a family of
diverse and attractive brands capable
of me
eting th
e nee
ds of a ra
nge of g
ues
ts
and own
ers
. In the p
ast d
ec
ade, we h
ave
trans
forme
d our p
or
tfo
lio, addin
g six
new br
ands in th
e pa
st four yea
rs alo
ne.
This includ
es signi
icantly strengthening
our Luxu
ry & L
ifest
yl
e oer fo
r gues
ts an
d
owne
rs, an
d our abi
lity to t
ake advant
age
of an inc
reas
ing num
ber o
f conver
sion
opp
or
tunitie
s in wh
at is a fragm
ente
d
market. A
long
side th
is, we have c
ontinue
d
to invest si
gni
ica
ntly in the qu
alit
y
, d
esig
n,
ser
vi
ce an
d techn
olo
gy that un
derp
ins
our e
xisti
ng wel
l-est
ablished br
ands.
Supp
or
ted by I
HG Rewa
rds, on
e of the
indu
str
y’s bigg
es
t loyalty p
rogram
mes
, we
now have a tota
l of 17 bran
ds – so
me of the
m
world-fa
mous and i
ndustry-leading,
others
gaini
ng greate
r atte
ntion, an
d newer o
nes
sta
rtin
g out wi
th exciting grow
th
prospects ahead.
As the in
dus
try re
cover
s and deve
lop
ment
activ
ity i
ncrea
se
s, we are foc
use
d on
expan
ding all o
f them at p
ace
.
PRIORIT
Y
:
Bu
i
ld l
o
v
ed and t
r
ust
ed br
a
nds
40
%+
Proportion
of our
global pipeli
ne
under construction
9
Brands launched
or acquir
ed
in th
e pa
st d
ec
ad
e
34
%
In
cre
as
e in op
en h
ote
ls
(2011
2021)
34
%
In
cre
as
e in op
en r
oom
s
(2011
2021)
A decade of pr
ogr
e
ss
Gra
nd H
otel W
ien
, Aust
ria –
sig
ned a
s a Vi
gnet
te™ C
olle
cti
on ho
tel
17
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ou
r strate
gy
Our s
t
ra
t
egy
c
o
nti
nu
e
d
Bui
ld lo
ved a
nd t
ru
st
ed br
a
nds
co
nti
nu
e
d
What w
e achi
ev
ed in 2021
We cele
brate
d the op
enin
g of 29
1 hotel
s
during 2
02
1, incl
uding o
ur 3,00
0
th for
Holiday Inn E
xp
res
s an
d mo
re impre
s
sive
hotel
s for our I
nterC
ontin
enta
l® H
otels &
Res
or
ts bra
nd in its 7
5th ann
ivers
ar
y year
.
A fur
ther 4
37 h
otels we
re adde
d to our
glob
al pip
elin
e, with alm
ost h
alf be
lon
ging
to our powe
rhou
se H
olid
ay Inn and H
olid
ay
Inn Expres
s brands.
In orde
r to drive future g
rowth, we c
ontinu
e
to bala
nce inve
sting in o
ur existi
ng es
tab
lish
ed
brands to further enhanc
e performan
ce
and p
erce
ption, a
long
side a
cc
ele
rating the
expan
sion o
f newer b
rand
s in key markets.
T
o un
der
pin this
, we have investe
d in our
hotel d
evelop
ment te
ams to a
cce
lerate
signi
ngs an
d put mo
re emph
asi
s on
supp
or
ting fu
nctio
ns to fac
ilitate grow
th,
such as investment analysis and legal.
Critic
al work t
his year h
as inc
lude
d a review
of our H
olid
ay Inn and C
rowne Pl
az
a est
ates,
focu
se
d on qual
ity of s
er
vic
e and p
rope
rt
y
con
ditio
n. The
se p
ower
ful bra
nds are key
to future grow
th, whic
h relie
s on en
surin
g
con
sis
tency an
d quali
ty leve
ls me
et the
expe
cta
tions of o
ur owne
rs an
d gue
sts
.
Re
lec
ting sig
ni
icant i
nvestme
nt by our
owne
rs, 8
3 hotel
s have com
mitte
d to
improvem
ent pl
ans o
r sco
pe
s of work
that will s
upp
or
t improve
d per
form
anc
e
and rai
se gu
est s
atis
factio
n sc
ores
.
In ad
dition, 1
51 hotel
s were remove
d from
the e
state. T
hrough th
e outc
ome
s of the
review, togethe
r with othe
r prop
er
ty
improvem
ents a
nd new o
pen
ings over th
e
pas
t four yea
rs, in th
e Ameri
ca
s two
-third
s
of the H
olid
ay Inn es
tate and th
ree
-
quar
ter
s of
the Crow
ne Pla
za e
state h
ave bee
n upd
ated.
E
xcelle
nt prog
ress w
ith newe
r brand
s
conti
nue
d, with avid alre
ady th
e se
con
d
large
st c
ontribu
tor to system grow
th, vo
co
now glo
bally e
st
abli
she
d with a pre
sen
ce in
25 co
untrie
s, and S
ix Sen
se
s having in
crea
se
d
its sys
tem size a
nd pip
elin
e by more tha
n
half s
inc
e acqu
isitio
n in 20
19. Followin
g
its la
unch in Au
gus
t, our Lu
xury & L
ifes
tyl
e
collection
brand,
Vignette
Collection,
has
alrea
dy se
cure
d six prop
er
tie
s, with the 
irs
t
ope
n by the en
d of the yea
r
. T
his new b
rand
pro
vides high-quality independent
hotels
acc
es
s to the be
ne
it
s of IH
G’s enterp
rise,
while a
llowing u
s to oer gu
es
ts more
disti
nctive an
d uniqu
e prop
er
ties th
at would
other
wi
se not 
it with
in our exis
ting br
ands
.
The
re are aroun
d 1.5 mil
lion in
dep
end
ently
run roo
ms in the m
arket se
gme
nts we are
targ
eting, an
d we expe
ct to at
tract m
ore
than 10
0 hote
ls withi
n 10 year
s.
T
o in
crea
se c
onsu
mer p
erce
ption an
d
awarene
ss o
f our full f
amily of b
rands a
cros
s
Luxur
y & Life
st
yle, Pre
mium, E
ss
ential
s and
Suite
s, we ado
pted a n
ew IH
G Hotel
s & Res
or
ts
masterbr
and mar
ke
ting
approach
, which
dr
ove
impro
ved brand a
war
eness and pr
eference
during th
e year. Lo
yalt
y promo
tions in key
markets a
nd travel hub
s were al
so inc
reas
ed,
unde
rpinn
ed by travel 
low dat
a.
In D
ece
mbe
r
, we we
re proud to win fo
ur
awards at the 2
8th World Tra
vel Awards,
including World’s Leading Bu
sines
s Hotel
Bran
d 202
1 an
d World’s Lea
ding H
otel Bra
nd
202
1 (Inter
C
ontine
ntal
); World
’
s Lea
ding
Premiu
m Hotel B
rand 2
02
1 (voco); and
World
’
s Lea
ding B
udg
et Hote
l Bran
d 202
1
(Hol
iday Inn E
xp
ress).
What’
s to come
Followin
g the co
nclu
sion o
f our Ho
liday In
n
and C
rowne Pla
za revi
ew in 202
1, we exp
ect
our avera
ge group re
movals rate to re
duce a
nd
for net sy
stem si
ze grow
th to subs
equ
ently
acc
ele
rate, re
lec
ting hun
dred
s of plan
ne
d
ope
ning
s and in
creas
ing deve
lop
ment
activ
ity a
s market
s contin
ue to recove
r
.
With a p
ipel
ine of alm
ost 1,
80
0 hotel
s,
repre
senti
ng more th
an 30
% of our c
urrent
est
ate, and a m
ore roun
ded p
or
tfo
lio of
attra
ctive br
ands
, we are con
id
ent in o
ur
abilit
y to de
liver in
dustr
y-
lea
ding ne
t system
size grow
th in th
e comi
ng year
s through
the co
ntinue
d expa
nsio
n of our e
sta
blis
hed
bran
ds and s
ca
ling of ne
wer add
ition
s.
Not
able o
pe
nings in 2
02
2 inc
lude o
ur ir
st
Atwe
ll Suite
s™ prope
rtie
s, K
impton® H
otels
& Res
taura
nts mak
ing it
s deb
ut in main
land
Chin
a, and a 
lag
ship Re
gent
® hote
l in
Hong Kong.
Key factors i
n delive
ring ou
r expe
cted grow
th
include capita
lising on
more con
version
opp
or
tunitie
s within th
e Luxur
y & Life
st
yle
spa
ce. Togethe
r
, th
e upsc
ale a
nd luxur
y
se
gment
s now rep
rese
nt 32
% of our sys
tem
size an
d 42
% of our pip
eli
ne.
25
%
Of o
pe
nin
gs i
n 202
1 wer
e co
nvers
io
ns
voc
o Bo
nnin
gton D
uba
i, UAE
HUALUXE® N
anj
ing Yangt
ze Rive
r
, Chin
a
Strate
gic Re
po
rt
18
IH
G
|
Annua
l Repo
rt a
nd Form 20

F 202
1
man
age
d est
ate, sup
por
ting b
oth st
a
ing
level
s and work-life b
alanc
e.
We also l
aunch
ed o
ur Jou
rney to GM t
ale
nt
acc
ele
ration p
rogra
mme to sup
por
t tho
se
mak
ing the tra
nsitio
n into Ge
nera
l Man
age
r
role
s, and s
trength
ene
d how we id
entif
y an
d
devel
op future t
alen
t as our e
sta
te expand
s.
As de
man
d incre
ase
s in our h
otels, we a
re
providin
g our own
ers an
d team
s with cl
ear
acti
on pla
ns, train
ing and s
upp
or
t for evolvi
ng
brand standards and proce
dures to meet
changing
guest e
xpectations.
Rising
costs
due to in
latio
n in som
e market
s have be
en
met wi
th ope
ration
al e
icie
ncy changes and
an expa
nde
d proc
ureme
nt oer, wit
h o
ur
sc
ale an
d exper
tis
e he
lping d
eliver n
ew
sol
ution
s that res
ulted in n
et year-o
n-year
savin
gs of mo
re than 10
% for own
ers ac
ross
the $
1.3
bn of sp
end m
ana
ged by I
HG.
Thousands of o
wners and
operators
also
join
ed our we
bin
ars durin
g the yea
r on
topic
s inc
luding v
irtu
al sa
les c
alls
, evolvin
g
foo
d and beve
rage, a
nd the I
HG
® Way
of Cl
ean p
rogramm
e. In l
ate 202
1, we
collabo
rated with
the Professional Convention
Man
age
ment A
ss
ocia
tion to oe
r hotel
team
s a new Hy
brid Events for H
otels &
Venues I
ntro Ce
rti
ic
ate Co
urse, to h
elp
them succe
ssfully par
tner with planners
to hos
t corp
orate an
d soc
ial hybri
d events
.
We have capture
d de
mand th
rough t
ailore
d
marketing c
amp
aigns a
nd prom
otion
s,
supp
or
ted by re
sourc
es su
ch as P
R toolk
its
and n
ew ser
vi
ces w
ithin IH
G’s Revenu
e
Man
age
ment fo
r Hire pro
gramm
e, which
help
s hotel
s ide
ntif
y and ac
t on revenu
e
opp
or
tunitie
s usi
ng bus
ine
ss inte
lligen
ce
and d
ata.
T
o e
nsure o
ur co
rporate te
ams are th
inking
like our owne
rs, we a
lso invite
d owne
rs and
Ge
nera
l Man
age
rs (GM
s) t
o sp
eak at re
gion
al
townhal
ls and s
hare the
ir pe
rsp
ecti
ves
during 2
02
1.
For
our guests
, as m
ore pe
opl
e return to travel,
we are focu
se
d on en
suring th
e se
rvi
ce
s,
tech
nolo
gy an
d experi
enc
es we cre
ate me
et
evolvin
g expe
ctati
ons
.
Cleanline
ss and safety stan
dards have
remaine
d very impo
rta
nt, underpinne
d
by our IH
G Way of Cle
an pro
gramm
e and
IH
G Cle
an Prom
ise. T
he st
ay experi
enc
e
has c
ontinu
ed to evolve, i
nclu
ding the
rein
tr
oduction
of buet
breakfasts a
nd social
hour
s for bra
nds in c
er
tain m
arkets, a
nd we
oer c
lea
r gue
st co
mmunic
atio
n on what
to expe
ct durin
g their h
otel st
ay at this time
.
Duri
ng 202
1, we introd
uce
d mo
re loyalty
oer
s for IH
G Reward
s memb
er
s, exte
nde
d
the pa
use o
n point
s expirati
on and inte
grate
d
sel
ec
t Six Se
nse
s res
or
ts into the p
rogram
me.
W
e know t
hat to s
tay su
cc
es
sfu
l
we ne
ed to p
ut ou
rse
lves i
n
the s
ho
es o
f our l
eis
ure g
ue
sts
,
bu
sin
es
s cu
sto
mer
s an
d owne
rs in a
ll we
do. Th
is is h
ow we cre
ate un
rivall
ed s
er
vic
e
an
d tail
ore
d expe
rie
nce
s in o
ur hot
els
, an
d
attrac
tive in
vestme
nt oppor
tunitie
s with
str
ong re
turn
s for ou
r owne
rs
.
Our re
spo
nse to th
e pan
demi
c has ill
ustrate
d
more th
an ever our d
es
ire to go the ex
tra
mile t
hrough
fast, though
tful and eectiv
e
sol
ution
s, built o
n liste
ning to wh
at’s ne
ede
d.
Wheth
er it
’s food an
d bever
age, cl
ean
line
ss,
hybrid m
eetin
gs or loyalt
y en
hanc
em
ents
for g
uests, or mor
e eicient opera
tions,
recru
itmen
t supp
or
t or pro
curem
ent
sol
ution
s for our own
ers
, we’
re working w
ith
a cus
tomer-c
entric mi
nds
et to ens
ure IH
G
and o
ur bran
ds st
and ou
t as a prefe
rred
choi
ce in th
e market.
What w
e achi
ev
ed in 2021
Many of o
ur
hotel
owners
repre
se
nt sm
all,
individ
ual busi
nesses and as t
he reco
very
stren
gthen
s, we’re providing the o
per
ationa
l
and c
omm
ercial s
upp
or
t they ne
ed to drive
performance, alongsi
de seeking opportunit
ies
to grow fur
ther w
ith them
.
On
e of the big c
halle
nge
s of the p
and
emic
for our industry is rec
ruiting and retaining
tal
ent to me
et returnin
g gue
st de
mand
.
IH
G has p
rovide
d a numb
er of too
ls an
d
sol
ution
s for hotel
s, inc
luding n
ew hirin
g
reso
urce
s, de
epe
r relati
ons
hips wi
th job
plat
form
s, and t
argete
d so
cial m
edia
cam
paign
s. In Au
strali
a, our myFl
ex initiative
has g
iven hote
l coll
eag
ues th
e lexi
bilit
y to
work ac
ross a
ny of our hotel
s in the c
ountr
y
’
s
PRIORIT
Y
:
Cus
t
omer ce
n
t
r
i
c i
n al
l w
e do
19
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ou
r strate
gy
Guest engag
ement
Our a
bilit
y to oer a ra
nge of di
erenti
ated an
d attra
ctive bra
nds wi
th rich st
ay expe
rienc
es, g
reat valu
e, lexi
bilit
y and s
trong
loyalt
y rewards are key to attra
cting gu
est
s to IH
G bran
ded h
otels an
d drivin
g com
merci
al pe
rfo
rmanc
e and reve
nue.
What i
mpacted them
in 2021
Engagement
Outc
omes
•
Book
ing
, can
ce
llati
on an
d loyal
ty 
lexi
bilit
y a
s
a res
ult of l
oc
al pa
nde
mic tr
avel re
stri
ctio
ns
•
Covid
-19 rel
ate
d hea
lth an
d saf
ety p
rotoc
ol
s
•
E
volvin
g corporate meeting requireme
nts
ble
nd
ed wi
th hybr
id work
ing a
nd le
isu
re
•
Quali
ty o
f the gu
es
t stay a
nd bo
ok
ing
experienc
e, including increase
d digitalisation
•
Locat
ion of h
otel
s and f
aci
litie
s oe
red
•
Prefere
nce f
or hote
ls wi
th tru
ste
d soc
iet
al
and g
ree
n cre
dent
ial
s
•
Guest
surveys
•
Nine c
ont
act c
entre
s su
ppo
r
ting gu
es
ts in
seve
n co
untrie
s, w
ith 2,700 s
al
es an
d se
rv
ice
agents speaking
12 lang
uages
•
Soci
al media
engagement
•
Pr
ogramme of targeted sta
y campaigns,
loyal
ty p
romot
ion
s and awa
ren
es
s of st
ay
experi
ence impr
ov
ements
•
Board
and Executive Committee reviews
of gu
est p
rop
os
ition a
nd loya
lt
y oe
r as pa
rt
of the B
oa
rd’s co
nsi
de
ratio
n of str
ateg
ic
and operat
ional matt
ers
•
Consumer
surveys
focused on a
ttitudes
to be
ing m
ore env
ironm
ent
all
y and s
oci
ally
co
nsc
iou
s whe
n trave
lling
, and th
e
pan
de
mic’s imp
ac
t on ap
peti
te to travel
•
Ext
end
ed p
oint
s expi
ry fo
r loyal
ty m
emb
er
s,
and incr
eased master
brand mar
ke
ting
and
st
ay prom
otio
ns, l
ead
ing to up
lif
t in b
rand
awaren
es
s
•
Contin
uati
on of I
HG Way of C
le
an pro
gra
mme
and ev
olut
ion of M
e
et with C
on
i
den
ce
pro
gram
me for c
orp
ora
te clie
nts
•
Enhan
ce
d cus
tome
r se
rv
ic
e supp
or
t,
inc
ludi
ng au
tomat
ion to s
pe
ed up r
esp
on
se
time a
nd di
rec
tion to th
e righ
t team
•
Guest
exper
ience enhan
cements, i
ncludin
g
renov
ations
, new
designs a
nd simpler
roo
m rates
•
Open
ing of 2
9
1 hotel
s an
d laun
ch of o
ur
17th
brand,
Vignette
Collection
•
Cont
inued impr
ov
ement in
Guest Satisfact
ion
Ind
ex, w
ith sc
ore
s of 10
0 or b
et
ter fo
r ea
ch
bra
nd an
d outp
er
for
ming p
ee
rs
•
Laun
ch of J
ourn
ey to T
omo
rrow 10
-ye
ar
responsible
business plan
S
ee ou
r gue
st lo
ve KPI o
n pa
ge 52 an
d how th
e Bo
ard ha
d reg
ard for g
ues
ts a
s par
t of th
eir c
on
sid
erat
ion of s
trate
gic a
nd op
era
tion
al ma
tte
rs
on p
age
s 90 to 9
1.
Suc
h step
s have dee
pe
ned g
ues
t
relati
onsh
ips, wi
th Reward Nig
ht book
ings
large
ly rec
overing to pre
-
pan
demi
c leve
ls
and p
ar
ticipa
tion rates o
f our high
er tie
red
mem
ber
s excee
ding 2
019 l
evels. A f
ur
ther
nine mi
llion m
emb
ers al
so join
ed th
e
progr
amme, w
ith reco
rd enrol
ment
s
on our we
b and m
obil
e chann
els
.
For co
rporate g
ues
ts, ‘
Welc
ome B
ac
k to
Bu
sine
ss’ c
amp
aigns we
re launc
he
d, with
our S
ME p
rogramm
e, IH
G Bu
sine
ss Ed
ge,
incre
asin
g its ac
co
unts by 4
4% in the yea
r
.
Our M
ee
t with Co
n
iden
ce pro
gramm
e
for busi
ness customers w
as also e
xpanded
to inclu
de new ra
pid on
-
site testi
ng for
large eve
nts at ou
r US hote
ls, whil
e a new
Point
s + Perks oe
r makes b
oo
king
s even
more
rewardin
g. In N
ovem
be
r
, I
HG re
ce
ive
d
the Ste
lla Award gol
d me
dal for B
es
t Hotel
Cha
in for the exce
ption
al me
eting
expe
rien
ce provid
ed thro
ugh the p
rogram
me.
Re
lec
ting our o
ngoi
ng cus
tomer-c
entric
app
roach, o
ur Gu
est S
atisf
actio
n Ind
ex
conti
nue
d to improve, achi
eving s
core
s
of 10
0 or be
tte
r for eac
h bran
d and
outperfor
ming
peers.
T
o c
ontinu
e improvin
g gue
st sati
sfac
tion
sc
ores an
d drive revenu
e for our own
ers
,
upd
ated gu
est ro
om and p
ubli
c spa
ce
des
ign pro
gramm
es are on
goin
g acros
s
many of ou
r brand
s, inc
ludin
g our Formul
a
Blu
e con
cep
t at Holi
day Inn E
xpre
ss a
nd
next
-generation designs
for Holi
day
Inn,
Can
dlewo
od Su
ites® a
nd St
aybridg
e Suite
s®.
What’
s to come
Our I
HG Rewa
rds loyalt
y prog
ramme i
s
critic
al to our b
usin
es
s and ou
r future grow
th.
Our m
emb
ers dr
ive around h
alf of all ro
om
nights g
lob
ally ea
ch year a
nd sp
end 2
0%
more in o
ur hotel
s than n
on-
mem
ber
s.
They are al
so nin
e time
s more likel
y to
bo
ok dire
ct, whi
ch is mo
re pro
itab
le
to our own
ers
.
T
o d
ee
pen re
lation
ship
s with new a
nd
existi
ng mem
ber
s, and d
rive more re
peat
bus
ine
ss for o
ur owne
rs, we will tra
nsfo
rm
our loyalt
y oe
ring in 2
02
2. In J
anua
ry 2
02
2,
we anno
unc
ed a 
irst p
has
e of new tie
rs an
d
bon
us-
po
int earni
ng stru
cture that w
ill allow
our me
mb
ers to ea
rn more p
oints
, more
quick
ly than eve
r befo
re. La
ter in the ye
ar
,
det
ails of th
e full pro
gramm
e will co
mme
nce,
incl
uding n
ew and e
nhan
ce
d ben
e
its, m
ore
expe
rien
ces a
nd more re
dem
ption o
ptions
,
all powe
red by our n
ew IH
G mob
ile ap
p,
whic
h goe
s live in 20
22
.
As the n
ew prog
ramme ro
lls out
, we’
re
tak
ing ste
ps to ea
se the p
res
sure and
disr
uption o
n our bu
sy hotel te
ams by
providing training and resource
s, alongsid
e
care
fully ma
nagin
g co
sts for ow
ner
s.
He
lping o
ur owne
rs man
age c
ost
s to build,
ope
n and o
per
ate is a top prio
rit
y
, so we
conti
nue to work c
los
ely with th
em on
sol
ution
s to increa
se reven
ue alo
ngsi
de
delivering more eicient and sust
ainable
ope
ration
s. Key ele
ment
s to this inc
lude a
conti
nue
d focus o
n our c
entral p
rocure
ment
services and
reduci
ng ener
gy cost
s.
As we foc
us on ac
ce
lerati
ng grow
th, we
will al
so proa
ctive
ly man
age ou
r glob
al
devel
opme
nt pip
elin
e and he
lp sup
por
t our
owners
to ensu
re t
hey
can progr
e
ss pro
jects
as qui
ckly a
s pos
sib
le.
Our s
t
ra
t
egy
c
o
nti
nu
e
d
Cust
omer cen
tr
ic i
n a
l
l w
e do
co
nti
nu
e
d
Strate
gic Re
po
rt
20
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Hot
el o
wner en
gagement
IH
G’s succ
es
s relie
s on ho
tel owne
rs inves
ting in our b
rand
s. T
o remain a
ttra
ctive, we foc
us on th
e brea
dth of our b
rand
por
t
folio an
d ee
ctive
nes
s of our l
oyalty p
rogram
me, ente
rpris
e contri
butio
n, tech
nolo
gy
, procure
ment a
nd s
ales o
erin
g.
What i
mpacted them
in 2021
Engagement
Outc
omes
•
Abilit
y to ca
pture a
nd dri
ve dem
an
d
to the
ir hote
ls
•
E
volving brand standards
•
Labour shortages, supply
chain and
continued
budgeting
constrain
ts caused
by the p
and
emi
c
•
Exp
and
ed b
rand p
or
t
folio w
ith la
unc
h
of Vi
gne
tte C
oll
ec
tion
•
Direc
t me
etin
gs wit
h CEO an
d regi
ona
l CEO
s
•
IHG Owners
Association
collaboration
•
Portfolio and individual hotel r
eviews
coveri
ng operat
ional,
strat
egic and
industry
tr
end u
pdat
es
•
W
ebinars, regular newsletters and bulletins
•
Hotel li
fecyc
le an
d in
anc
e tea
m sup
po
rt
•
Collabora
tion
with
govern
ments and
industry
to sup
po
rt re
cove
r
y
•
T
ailored
mark
eting
and pr
omotions,
supported
by new d
ata
-
drive
n res
ourc
es a
nd se
r
vic
es
that h
elp h
otel
s qui
ckly i
de
ntif
y an
d act o
n
revenue op
por
tuniti
es
•
Brand s
ta
nda
rds evol
ved o
r rem
oved to
cre
ate mo
re e
ici
ent an
d ee
cti
ve op
erati
on
s
•
Net yea
r
-
on
-year p
rocu
rem
ent s
aving
s of ove
r
10
% for own
er
s acro
ss $
1.
3bn s
pe
nd ma
na
ged
by IH
G
•
Increased training, guidanc
e and recruitment
sup
po
rt fo
r hote
l tea
ms
•
Ne
xt-gen f
ormats
and r
efur
bishments
being
app
lie
d to hote
ls un
de
r bran
ds in
clu
ding
Ho
liday I
nn E
xpr
es
s, Ho
lid
ay Inn, C
an
dlewo
od
Sui
tes an
d St
aybri
dge S
uite
s
•
83 hote
ls c
ommi
tte
d to imp
rovem
ent p
lan
s as
a res
ult of th
e Ho
lid
ay Inn an
d Crow
ne Pl
az
a
revie
w, and 151 ho
tels ex
ited t
he e
sta
te
Se
e ou
r net ro
oms s
upp
ly, signin
gs, gro
ss re
venu
e and e
nterp
ris
e co
ntrib
utio
n KP
Is on p
ag
es 50 a
nd 51 an
d how th
e Bo
ard ha
d reg
ard for h
otel
own
ers a
s par
t of th
eir c
on
sid
era
tion o
f strate
gic a
nd op
er
ation
al ma
tte
rs on p
ag
es 9
0 to 91
.
Visit
ww
w.owne
rs.o
rg
for fu
rth
er i
nform
atio
n abo
ut th
e IH
G Own
er
s Ass
oc
iati
on.
Hote
l owner
s cho
ose to wo
rk with IH
G be
ca
use of th
e trust th
ey have in our b
rand
s
and o
ur track re
cord in d
elive
ring stro
ng returns
.
Why hote
l owne
rs c
hoo
se to wo
rk
with I
HG
Strength of
brands
The b
rea
dth an
d de
pth of o
ur bra
nd
portfolio delivers
str
ong owner
ROIs
Strong lo
yalty progr
amme
and enterpris
e contribution
7
4% of revenu
es d
elive
red
to hote
ls by I
HG
’s enterp
ris
e
Digital
adv
antage
Our c
lou
d-
ba
se
d IH
G Co
nc
er
to
platform,
including
a new
G
uest
Reservation Sy
stem,
provides
a str
ong in
terface for
guests
and owners
Inve
stm
en
t in ho
tel li
fecyc
le
management
and
operat
ions
We have inve
ste
d in ex
tens
ive te
chn
olo
gy
,
syste
ms a
nd pro
ce
ss
es to s
upp
or
t
performance, increase eiciencies a
nd
drive re
turn
s for ou
r owne
rs
Procure
ment
We use o
ur sc
al
e to redu
ce c
os
ts
for
owners
with
procur
ement
prog
ramm
es f
or h
otel
goods,
services and constructi
on
Sustainability tools
& e
xpertise
We have deve
lo
pe
d too
ls, tra
inin
g
and p
rogr
amm
es to s
upp
or
t
hote
ls an
d provi
de b
ett
er dat
a
and i
nsi
ghts to e
nab
le th
em to
red
uce t
hei
r ene
rgy, waste an
d
wat
er consumpti
on
Global sales organisat
ion
We have deve
lo
pe
d a le
adin
g
glo
bal s
al
es en
terp
ris
e to
drive h
ighe
r qu
alit
y
, lowe
r
co
st reve
nue to o
ur hote
ls
21
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ou
r strate
gy
O
u
r
s
trate
g
y
c
o
ntin
u
e
d
se
amle
ssl
y sel
ect ro
om ch
arac
teristi
cs to
tail
or the
ir stays wh
en b
ook
ing with u
s, with
pric
es ad
justin
g bas
ed o
n the at
tribute
s
chosen. In parallel
, the
technology enables
owne
rs to gen
erate ma
ximum val
ue from
their h
otel
’
s uniqu
e feature
s.
This wo
rk forms a key el
eme
nt of a
multi
-year co
mmitme
nt to trans
form the
bo
okin
g and st
ay exper
ienc
e. In 20
21, we
made signi
icant prog
ress in streamlining
and c
larif
yin
g the rate optio
ns availa
ble
to custo
mer
s acros
s our b
rand
s, in favour
of a simp
ler a
nd fas
ter bo
oki
ng proc
es
s
that is c
apa
ble of a
cc
ommo
dating
value-
added experien
ces.
T
o fur
ther enhance the digital experience
for our g
ues
ts, we are c
ontinui
ng to move
dat
a and ap
plic
ations to th
e clou
d, and
we are usi
ng con
sum
er ana
lysis o
f thos
e
se
arching fo
r stays an
d travelling w
ith us to
create highly personal and targeted guest
promotions. Data
-driven analysis is also
bei
ng app
lied to gu
es
t fee
dbac
k so that i
t
inform
s our de
cis
ion ma
king an
d ens
ures
we’
re focu
sed o
n area
s mos
t likely to
improve s
atisfa
ction s
co
res.
T
o e
nhan
ce ou
r custo
mer s
er
vic
e, arti
i
cial
intellig
enc
e (AI) voic
e
-ac
tivated p
latfo
rms
are answe
ring an
d routing c
ustom
er c
alls
to the mo
st app
ropria
te supp
or
t area, wh
ich
is inc
reas
ing s
atisfa
ction s
core
s and l
ead
ing
to highe
r average d
aily rate
s on bo
oki
ngs.
A digit
al co
ncie
rge chatb
ot ha
s als
o bee
n
introdu
ce
d on ihg.c
om an
d the IH
G mob
ile
app to fur
the
r as
sis
t custo
mer b
ook
ings
and communication.
In light o
f the cha
llen
ges of th
e pan
dem
ic,
IH
G has a
lso tra
nsform
ed it
s tech
nolo
gy
to help a
round 70% o
f spe
cial
ists i
n our
Philip
pine
s co
ntac
t centre
s work rem
otely
,
and tra
nsitio
n all op
eratio
ns at ou
r Mexic
o
Cit
y co
ntac
t centre to rem
ote workin
g.
What’
s to come
We’ve design
ed a c
lear ro
adm
ap of
inv
e
stments
and enha
ncements needed
over the c
oming ye
ars to de
liver an
eo
rtl
ess
ly sm
ooth, exce
ption
al gue
st
expe
rien
ce at ever
y touc
hpo
int – pre
-s
tay
,
during
-s
tay and p
os
t-stay – with th
e aim of
keepi
ng IH
G hotel
s ir
st ch
oice fo
r gues
ts.
Havin
g com
plete
d impo
rt
ant foun
datio
nal
work in 20
21, we w
ill laun
ch the n
ext
gen
eratio
n of our I
HG m
obile a
pp in 20
2
2
to fur
ther s
trength
en our m
obil
e pres
enc
e
and e
nhan
ce our l
oyalty o
er
. Usin
g data
insi
ghts an
d new de
sign
s, it will p
rovide a
rich
er expe
rien
ce an
d introdu
ce lot
s of new
feature
s, fas
t.
For gue
sts
, the app ke
eps th
e mana
gem
ent
of st
ay reque
sts a
nd feature
s in on
e plac
e,
create
s a sp
ace to rec
eive p
ers
ona
l and
time
ly marketing o
ers a
nd will e
nabl
e new
be
ne
its a
s par
t of a tran
sform
ed loyalt
y oe
r
.
For owne
rs, a ric
her gu
es
t use
r expe
rienc
e is
expe
cted to dr
ive revenue thro
ugh inc
reas
ed
direc
t bo
okin
gs to our hote
ls, hig
her l
oyalty
engagemen
t and
incr
emental
spend
during stays.
In 20
22
, we will als
o co
mple
te room inventor
y
as
ses
sm
ents o
n the rem
aining h
otels in o
ur
est
ate in sup
por
t of ro
lling ou
t attrib
ute
prici
ng on ou
r direc
t chann
els
.
I
n a world w
her
e we all exp
ec
t sea
ml
es
s
expe
rie
nce
s, o
ur di
gita
l ca
pab
iliti
es fo
rm
cru
cia
l as
pe
cts o
f our of
fe
r for gu
es
ts an
d
owners. F
or guests, our
brand proposition
is a
s muc
h ab
out o
ur bo
oki
ng exp
erie
nc
e,
mark
eting and
mobile app f
unctionality
,
as it i
s ab
out t
he hot
el de
sti
nati
on an
d ou
r
bra
nd h
allm
arks
. For owne
rs
, our of
fe
r is
as m
uch a
bo
ut ou
r abil
ity to c
rea
te revenu
e
advantages thr
ough data and
technology
,
as it i
s ab
out o
ur sc
ale a
nd exp
er
tis
e.
We und
ers
tan
d th
is an
d are inve
stin
g in
the technology
, tools
and solutions
that
ma
ke the bi
gge
st d
iff
ere
nce t
o our g
ue
sts
,
own
ers a
nd t
eams.
Our c
loud
-b
ase
d pl
atform
, IH
G Con
ce
rto,
is criti
cal to th
e work we’r
e doin
g in this
spa
ce, s
er
ving a
s the foun
dation fo
r much
of how we’re creating di
gital a
dvant
age by
ble
nding c
ore hote
l app
licati
ons into on
e
se
amle
ss, p
ower
ful p
latfo
rm cap
abl
e of
enh
ancin
g the gue
st, ow
ner a
nd co
llea
gue
expe
rien
ce. It g
ives I
HG the a
bilit
y to add
regul
ar rele
as
es with n
ew func
tion
alit
y at
pac
e and s
cal
e, and e
nsure
s we conti
nue
to evolve how we en
rich th
e gues
t stay an
d
me
et new exp
ect
ation
s, alo
ngsi
de driv
ing
strong
er return
s for our ow
ner
s.
What w
e achi
ev
ed in 2021
Wor
king collabora
tiv
ely wit
h our
owners
in rec
ogniti
on of the evo
lving tra
ding an
d
ope
ration
al pre
ssu
res fac
ed du
ring the
pan
demi
c, we mad
e critic
al prog
res
s on
severa
l fronts in 2
02
1 to enric
h the gue
st
experience and drive per
formance for
our hot
els.
Duri
ng the yea
r
, 5,3
0
0 hotels c
omp
lete
d
det
aile
d room invento
ry a
ss
es
sme
nts to
prep
are for at
tribute p
ricing p
owere
d by our
industry-leadi
ng Guest Reservat
ion Sy
stem
(GRS). Co
mbin
ed with o
ther b
ook
ing l
ow
improvem
ents
, this is th
e impo
rt
ant
ground
work req
uired to all
ow gue
sts to
PRIORIT
Y
:
Cr
ea
t
e di
gi
ta
l ad
v
an
tage
5,
3
0
0
Hotels
completed r
oom in
ven
tory assessments
in 20
21 a
he
ad of r
oll
ing o
ut at
trib
ute p
ric
ing
on our
direct channels
22
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Strate
gic Re
po
rt
C
aring
for our
people,
communities and
planet has
always b
ee
n at the h
ea
rt of h
ow
we work
, but t
he na
ture of a
n ever-
evolvin
g
social and en
vironmental landscape means
we con
tinu
ally ex
plo
re how we c
an ma
ke
a po
siti
ve dif
fere
nc
e as we op
era
te and
gro
w ou
r busi
ness.
The Board’
s Responsible Business
Co
mmit
tee revie
ws IH
G’s resp
ons
ible
business objecti
ves and
stra
tegy
and advises
the B
oard on o
ur app
roach to di
versi
ty
,
equ
ity & in
clus
ion (D
E&I), ou
r impa
ct on lo
ca
l
com
munitie
s, res
po
nsib
le proc
ureme
nt in
our su
pply c
hain, p
rogram
mes o
n human
rights a
nd mo
dern s
laver
y
, o
ur
env
iron
mental
impact,
and
our eng
agement
with
employees.
T
o g
uide ou
r actio
ns an
d drive prog
ress
,
in 202
1 we la
unch
ed our 2
03
0 Jou
rney
to T
o
morrow pl
an, a se
ries of a
mbitio
us
com
mitme
nts to cre
ate pos
itive cha
nge
for our p
eo
ple, c
ommun
ities a
nd pla
net,
align
ed to our p
urpo
se of True Hos
pita
lity
for Go
od a
nd to the U
N Sus
tain
able
Deve
lopm
ent G
oals
.
We know the a
ction
s we take aroun
d the
environ
ment
, our pe
opl
e and s
ocie
ty are
clo
sel
y followe
d by our investo
rs and oth
er
sta
kehold
ers a
nd are the
refore criti
cal to ou
r
repu
tation a
nd grow
th, and we h
ave focus
ed
our e
or
ts on th
e area
s where we fe
el we
can m
ake the greate
st imp
act
. Re
lec
ting the
cha
nging wor
ld aroun
d us, e
ach c
ommitm
ent
is de
sign
ed to en
sure IH
G grows re
spo
nsib
ly
and in ways th
at ens
ure travel ha
s a bea
utiful
future for eve
ryo
ne.
Se
e key mat
ter
s dis
cus
se
d by th
e Bo
ard
on p
age 9
1 an
d the Re
sp
ons
ibl
e Bu
sin
es
s
Co
mmi
tte
e Rep
or
t on p
age
s 10
0 an
d 101
.
Se
e our Re
sp
on
sib
le Bu
sin
es
s Rep
or
t at
www.ihgplc.
com/
responsible-business
PRIORIT
Y
:
Ca
r
e f
or ou
r people
,
co
mmuni
t
ie
s
and
plan
et
Our 1
0
-
y
ear r
e
sponsi
ble busi
nes
s pla
n
Our g
oal is to h
elp sh
ape th
e future of re
spo
nsib
le travel tog
ethe
r with tho
se wh
o stay
, work and
par
tne
r with us
. We will sup
por
t our p
eo
ple an
d make a po
sitive di
eren
ce to lo
cal c
ommu
nities
,
while p
rese
r
ving ou
r plan
et
’s beaut
y and di
versi
ty… not just tod
ay but lo
ng into the futu
re.
Champion a
dive
rse
cultu
re
whe
re ever
yon
e
can thrive
Imp
rove the li
ves
of 30 mi
llion
pe
opl
e in our
communities
aroun
d the world
Redu
ce ou
r ene
rgy
use a
nd ca
rbon
emi
ssio
ns in lin
e
with cli
mate sci
enc
e
Pionee
r the
transformation
to a minima
l waste
hospit
ality industr
y
Conserve wa
ter
and h
elp se
cure
water ac
ce
ss in
thos
e area
s at
greates
t risk
EM
POW
ER OU
R PEO
PLE TO HE
LP S
HAP
E THE F
UT
UR
E OF R
ES
PO
NS
IB
LE T
R
A
VEL
23
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ou
r strate
gy
Our s
t
ra
t
egy
c
o
nti
nu
e
d
Car
e f
or ou
r pe
opl
e
, com
mu
ni
t
ies and pl
ane
t
c
o
ntin
u
e
d
What w
e achi
ev
ed in 2021
People
engagemen
t
We have a numbe
r of forum
s availab
le for
emp
loyees to s
hare the
ir thou
ghts, in
clud
ing
emp
loyee res
ource g
roups, a d
es
ignate
d
non
-
exec
utive di
rec
tor for wo
rk
forc
e
engagemen
t, and
our
emplo
yee en
gagement
survey
, known as Colleague HeartBeat,
whic
h allows p
eop
le to expre
ss the
ir view
s
on key asp
ect
s of work
ing at IH
G.
In our 2
02
1 sur
vey
, ou
r overall em
ployee
eng
age
ment s
tood at 8
5%
, whic
h saw IH
G
agai
n acc
redite
d as a Ki
nce
ntric Gl
obal B
es
t
Empl
oyer
. T
he sur
vey highl
ighted are
as tha
t
we can s
trength
en fur
th
er
, in
clud
ing the
impo
r
tanc
e of 
illing jo
b vaca
ncie
s and
advo
catin
g e
icient a
nd e
ective ways of
workin
g. Actio
ns were t
aken in b
oth thes
e
area
s, incl
uding n
ew hiring to
ols a
nd a
conti
nue
d focus o
n improvi
ng proc
es
se
s,
acc
ount
abilit
y an
d integrati
on amo
ng team
s.
The
se are
as will re
main a p
riorit
y for 20
2
2.
Attracti
ng, de
veloping
and re
taining ta
lent
T
o a
chieve ou
r ambiti
ons, we k
now we ne
ed
to attra
ct, d
evelop a
nd retai
n a divers
e and
tal
ented wo
rkfo
rce. Th
is relie
s on ou
r abilit
y
to develo
p an op
en and i
nclu
sive cultu
re that
prom
otes ca
reer d
evelo
pme
nt and e
qual
opp
or
tunit
y
, a
nd rec
ogni
ses t
he imp
or
tan
ce
of wellb
ein
g in the work
plac
e.
T
o a
ddres
s the c
halle
nge
s in at
tractin
g
tal
ent, we h
ave develop
ed n
ew hiring
reso
urce
s and up
date
d our po
licie
s to spe
e
d
up the tim
e it take
s to proce
ss a
pplic
atio
ns,
work
e
d wit
h jobs pla
tforms, schools
and
NG
Os to un
ear
th fres
h tal
ent, an
d run
recru
itmen
t days and fai
rs. O
ur Ea
rly Care
er
s
and I
HG
® Ac
ade
my program
mes al
so provi
de
work exp
erie
nce, inte
rnsh
ips an
d gradu
ate
opp
or
tunitie
s to thos
e se
ekin
g a care
er
in hospitalit
y
.
We are irml
y com
mitte
d to investin
g in our
emp
loyees a
nd this ye
ar at a co
rpor
ate level
we emb
ed
ded re
gular t
ale
nt pla
nning an
d
devel
opme
nt co
nversati
ons to e
nsure we
are buil
ding a stro
ng pip
elin
e for the fu
ture
to deli
ver our am
bition
s. Pe
opl
e man
ager
s
have con
tinue
d to hold q
uar
terly ch
ec
k
-ins
with the
ir team
s to disc
uss p
er
form
anc
e
and p
ers
ona
l develo
pme
nt, sup
por
te
d by
an ups
killin
g of HR p
ar
tner
s through b
es
poke
tal
ent ma
stercl
ass
es
. The
re is als
o a strong
focu
s on reward, with o
ur robu
st govern
anc
e
app
roach ai
med a
t having fai
r and co
nsi
stent
reward and re
co
gnition p
racti
ce
s acros
s our
employ
ee populati
on.
In our h
otels
, actio
ns in 20
21 in
clud
ed
enh
ance
me
nts to our le
arnin
g and
devel
opme
nt prog
ramme fo
r existin
g
GM
s, the l
aunc
h of a new J
ourney to G
M
tal
ent ac
cel
eratio
n progr
amme, a
nd the
impl
eme
ntatio
n of a new h
otel tal
ent
People
Champion a div
e
rse cultu
re
whe
re ever
yone c
an t
hrive
Our 2030 commitments
•
Ach
ieve gen
der b
alan
ce and a d
oubl
ing
of u
nder
-represent
e
d gr
oups across
our lead
ership
•
Cu
ltivate a culture o
f inclu
sion fo
r
colleagues, owners
and suppl
iers
•
Sup
po
rt all c
oll
eagu
es to pri
oritis
e
their ow
n wellb
eing an
d the we
llbei
ng
of othe
rs
•
Dr
ive resp
ec
t for and a
dvanc
e
human rights
Our p
eo
ple are fu
ndam
enta
l to IH
G achiev
ing
its p
urpo
se and s
trategi
c goal
s. I
HG
’
s bus
ine
ss
mod
el me
ans th
at we do not e
mpl
oy all
col
lea
gues
. We directl
y emp
loy indiv
idual
s
in our c
orp
orate o
ice
s, res
er
vation c
entre
s,
and managed,
owned,
leased and managed
lea
se ho
tels. H
owever
, not all in
divid
uals in
managed, o
wned, leased and
managed lease
hotel
s are direc
tly emp
loyed, an
d we do not
emp
loy any indivi
dual
s in franc
hise
d hote
ls
(nor do we co
ntrol the
ir day-to
-d
ay
ope
ration
s, po
licie
s or pro
ce
dures).
People
engagemen
t
De
liver
y of our p
urpo
se to provi
de T
rue Ho
spit
alit
y for G
oo
d and the s
trategi
c priori
ties th
at drive future s
ucc
es
s relie
s on our
pe
opl
e and our a
bilit
y to maint
ain and evo
lve an en
gage
d, dive
rse an
d incl
usive cu
lture whe
re care
ers c
an grow.
What i
mpacted them
in 2021
Engagement
Outc
omes
•
Attrac
tive
nes
s of wo
rkin
g in th
e hos
pit
alit
y
ind
ustr
y d
uring t
he pa
nde
mic
•
Sta
ing l
evel
s and a
bili
ty to at
tra
ct an
d
retain talent
•
IHG
’s strate
gy an
d app
roac
h to grow
th an
d
fut
ure
success
•
IHG
’s appro
ach to D
E&
I
•
IHG
’s appro
ach to hy
brid wo
rki
ng
and w
ellb
ein
g
•
IHG
’s appro
ach to c
lim
ate cha
nge a
nd wi
der
envi
ronmen
tal issues
•
E
mploy
ee engagemen
t su
rvey
•
CEO and re
gio
nal l
ead
er
ship c
all
s with Q
&
A
•
V
o
ice o
f the Em
ploye
e fe
edb
ack s
es
si
ons
•
Employ
ee communic
ations including
intranet st
ories, newsletters, blogs, videos,
podcasts and in
teract
ive
sessions on
strategic pri
orities
•
ERGs re
pre
sen
ting et
hnic m
ino
ritie
s, ge
nd
er
,
LGBTQ
+, disa
bili
ties a
nd oth
er e
mpl
oyee
s
•
Quart
erly perfor
mance,
devel
opment a
nd
wellbeing che
ck-ins
•
Collabora
tive
sessions including hacka
thons
•
Incre
ase
d fo
cus o
n rec
ruitm
ent a
nd ta
len
t
deve
lop
me
nt at hote
l an
d cor
por
ate leve
ls
•
Cont
inuati
on of
employ
ee engagement
in co
mp
any prio
riti
es an
d cul
ture
•
P
rogress aga
inst and
continued
priorit
isation
of D
E&I c
omm
itme
nts
, inc
ludi
ng co
ns
cio
us
inclusio
n training and r
efreshe
d DE&I policy
•
Contin
ue
d and i
ncre
as
ed fo
cus o
n em
ploye
e
well
be
ing, in
clu
din
g enh
anc
ed p
aren
tal l
eave
po
lici
es in s
om
e market
s an
d upd
ated G
lo
bal
Flexible Working Guidelin
es
•
R
einstatement
of bonus
and ann
ual salary
inc
rea
se for o
ur c
orp
orate e
mpl
oyee
s
•
IHG n
ame
d a Ki
nc
entri
c Glo
ba
l Be
st Em
ploye
r
,
with
85% empl
oy
ee engagement
Se
e ou
r emp
loyee e
ng
age
men
t KPI o
n pa
ge 5
3, how th
e Bo
ard h
ad reg
ard fo
r pe
opl
e in the
ir bo
ard a
nd rem
une
ratio
n de
cis
ion
s on p
age
s 91, 9
2,
107
, 10
8, 112 an
d 114, Voic
e of the E
mpl
oyee di
sc
los
ure on p
age 1
01, a
nd st
ate
men
t on em
ploye
e en
gag
eme
nt on p
ag
e 22
7
.
Visit
www.ihgplc.
com/
responsible-business
for fur
th
er info
rma
tion a
bou
t our p
eo
ple c
om
mitm
ent
s.
Strate
gic Re
po
rt
24
IH
G
|
Annua
l Repo
rt a
nd Form 20

F 202
1
system i
n cer
ta
in markets
, which m
atche
s
on
-prop
er
t
y tale
nt to the mo
st rel
evant
opp
or
tunitie
s acro
ss ou
r est
ate.
S
ee ou
r GM t
ale
nt ac
ce
ler
atio
n prog
ramm
e
on p
age 1
9, work
pla
ce e
nviron
men
t on pa
ge 37
and wor
kforce r
emunerat
ion considerat
ions
on p
age
s 107
, 10
8, 112 an
d 114.
Wellbeing
In rec
ogni
tion of a s
hif
t to hybrid work
ing as
a resul
t of the p
ande
mic, we have provi
ded
emp
loyees w
ith guid
anc
e and res
ource
s to
help t
hem a
dopt a b
alanc
e of rem
ote and
o
ice work
ing tha
t supp
or
ts in
dividu
als an
d
the de
liver
y of I
HG
’
s key prioriti
es. E
mployee
sur
veys have als
o be
en run to un
der
stan
d
expe
cta
tions a
nd he
lp inform ou
r appro
ach.
In 20
21, we up
date
d our G
loba
l Flexib
le
Wor
king Guideli
nes with
hybr
id w
orking
princ
iple
s, refre
she
d our U
K Flexi
ble Worki
ng
Policy and highlighted lexible workin
g
opp
or
tunitie
s within j
obs
. We’ve also ta
ken
step
s to ensu
re a bes
t prac
tice a
pproa
ch
to mana
ging t
alent a
nd pe
rfo
rman
ce in
a hybrid e
nvironme
nt.
Duri
ng the yea
r
, we provi
ded e
mploye
es
with ac
ce
ss to me
ntal h
ealth a
nd wellb
ein
g
guid
eline
s and we
bina
rs, an
d contin
ued
Rec
harge d
ays and Focu
s Fridays, whe
re
we tr
y to avoid st
andin
g mee
tings wh
ere
pos
sible to cre
ate som
e undis
turbe
d time
for em
ployee
s. Pare
ntal l
eave po
licie
s were
als
o evaluate
d acros
s a numb
er of l
oc
ations
and si
gni
ica
nt enh
ance
ment
s were ma
de to
our U
K pater
nity l
eave po
licy and U
S pare
ntal
leave p
olicy. W
e will co
ntinue to evalu
ate and
review ou
r poli
cies to e
nsure th
ey supp
or
t
pe
opl
e to be at the
ir be
st.
For
hotel
teams, mon
thly
newsletters
with well
bein
g guid
ance we
re sha
red, an
d
loc
al initi
atives we
re also e
st
ablis
he
d in
some markets.
Dive
rsi
ty
, eq
uit
y & inc
lus
ion (D
E&I)
As a glo
bal c
omp
any
, it
’s impor
ta
nt to us that
our busi
ness relects our
people, our
guests
and th
e nation
alitie
s, cul
tures, eth
nicitie
s,
sexua
l orient
ation
s, ba
ckgrounds a
nd be
lief
s
that they re
pres
ent. T
his co
mmitm
ent is
emphasised throughout
our global
hiring
guid
eline
s and i
nitiative
s, suc
h as our
conscious inclusion t
rainin
g, and is
backed
up by our G
lob
al Dive
rsit
y
, Eq
uit
y
, In
clus
ion
and Equ
al Op
por
tuni
ties Po
licy
, which
was refre
she
d in 20
21 an
d set
s for
th our
com
mitme
nt to promoti
ng an inc
lusi
ve
envir
onment that v
alues and
considers
diver
se at
tribute
s, pe
rsp
ec
tives, c
ultures
and experience
s.
Rec
ogni
sing th
at we still have p
rogres
s to
make as a b
usin
es
s, our G
lob
al DE
&I Bo
ard
and re
gion
al DE
&I co
uncil
s work toge
ther
to mon
itor
progr
ess against commit
ments,
dis
cus
s eme
rging tren
ds and fe
ed
bac
k, an
d
ide
ntif
y future foc
us area
s. O
ur work in thi
s
spa
ce revolve
s aroun
d a DE
&I frame
work
spa
nning th
ree co
re areas
: streng
theni
ng a
culture of i
nclu
sion; in
crea
sing th
e divers
it
y
of our l
ead
ers
hip and t
ale
nt; an
d put
ting the
right de
cis
ion
-ma
king p
roce
ss
es arou
nd
our ac
tion
s.
Str
eng
the
nin
g a cul
ture of i
ncl
us
ion
In 20
21, c
orpo
rate emp
loyee
s comp
lete
d
more th
an 10,00
0 hou
rs of co
nsc
ious
inclusio
n training, promoting education
and awareness, and sparking impor
tant
team con
versat
ions.
As pa
rt of o
ur emp
loyee en
gag
eme
nt
sur
vey
, we al
so imp
lem
ented a
n inclu
sio
n
index i
n 202
1 to track p
erce
ption
s of culture
and b
ehavi
our
. The in
dex showe
d that
nine o
ut of 10 c
orpo
rate, res
er
vation an
d
man
age
d hotel e
mploye
es fee
l IH
G has a
n
incl
usive cu
lture, altho
ugh p
erce
ptions we
re
les
s po
sitive am
ong s
ome e
thnic min
orit
y
group
s. Thi
s is so
methin
g we reco
gnis
e and
is re
lec
ted in o
ur com
mitme
nt to inclu
sion
and a
chievin
g more dive
rse re
pres
ent
ation
at all leve
ls of our b
usin
es
s.
Ce
ntral to the c
onvers
ation aro
und D
E&I
and o
ur progre
ss
ion as a b
usin
es
s are
our Em
ployee Re
sou
rce Grou
ps (ERG
s),
whic
h contin
ue to expan
d and now h
ave
1,3
00 m
emb
ers gl
oball
y
. T
hes
e group
s
repre
sent e
thnic min
oritie
s (BE
RG US,
EMb
race E
ME
A
A), ge
nde
r (Lean I
n)
, LGBTQ+
(Out and O
pe
n, US an
d UK
), dis
abil
ities
(DA
WN U
S and U
K), an
d Ea
rly Care
er
s
(HY
PE Gre
ater Chi
na, US a
nd U
K) an
d have
be
en ins
trume
ntal i
n driving e
mpl
oyee
eng
age
ment an
d ce
leb
rating key events,
incl
uding I
nternatio
nal Wom
en’s Day
,
Glo
bal I
nclu
sion & Well
bein
g Week
,
and Pride.
Ou
r Diver
sit
y
, Equi
ty an
d In
clu
sio
n Poli
cy
IH
G is co
mmit
ted to pro
moting a c
ulture
of inc
lusio
n whe
re ever
yone fee
ls s
afe,
resp
ec
ted an
d value
d. Our p
olic
y appli
es to
anyone wh
o is direc
tly emp
loyed by IH
G an
d
col
lea
gues w
ho work in m
ana
ged h
otels
.
Be
low is a su
mmar
y of ou
r com
mitme
nts:
•
Acti
vely sup
po
rt di
versi
ty an
d inclu
sio
n to
ens
ure that all o
ur emp
loyee
s are value
d
and tre
ated with d
ignit
y and re
spe
ct.
•
Stri
ve contin
ually to provi
de pe
opl
e with
a workin
g environ
ment th
at is free f
rom
racism, har
assment and discrim
ination.
•
Fost
er an
env
iron
ment
where
our
emp
loyees c
an work to
geth
er to maint
ain
an inc
lusive wo
rking e
nvironm
ent whe
re
ever
yone’s unique c
ontrib
ution i
s value
d.
•
Ens
ure that all d
eci
sion
s ae
cting an
emp
loyee’s employm
ent are m
ade fai
rly
and are based on an individual’s ability
and per
formance.
•
Provi
de all e
mployee
s with th
e opp
or
tunit
y
to join our E
mploye
e Reso
urce G
roups
.
•
Provid
e emp
loyees w
ith dis
abiliti
es the
appropr
iat
e support wher
e reasonable
and p
ractic
abl
e to do so an
d in
accordanc
e with local requirements.
•
Ens
ure our re
cruitm
ent, d
evelop
ment a
nd
reward pra
ctice
s, an
d our ap
proac
h to
workin
g arrang
eme
nts, a
re desi
gne
d to
attra
ct, d
evelop, an
d retai
n divers
e tal
ent.
•
Work to ed
uca
te our emp
loyee
s abou
t
the b
ene
it
s that dive
rsit
y and i
nclu
sion
bring
s to our bu
sine
ss a
nd sup
por
t
inter
ventio
ns that im
prove diver
sit
y and
incl
usio
n in our pl
ace
s of work
.
•
Ens
ure all em
ployee
s are aware of thi
s
pol
icy and c
omp
lete any relevan
t training
in relati
on to diver
sit
y and in
clus
ion.
•
Ens
ure our cu
stom
ers exp
erie
nce a
n
incl
usive we
lco
me and s
tay provid
ed
by our em
ployee
s.
IH
G’s Glo
bal D
E&I B
oard, ch
aired by o
ur
CEO, and reg
iona
l DE&
I coun
cils fe
ature
repre
sent
atives f
rom acro
ss our C
om
pany
who o
er a bre
adth of exp
erie
nce f
rom
die
rent cultu
res, in
dustri
es an
d
organisat
ions. The
y wor
k with
stak
eholders
to ens
ure we contin
ue to hon
our ou
r DE&
I
com
mitme
nts an
d strive for b
est p
racti
ce.
It is o
ur pol
icy to com
ply with i
nternatio
nal,
national and local regulator
y requirements
and, wh
ere req
uired, a
ny airm
ative
acti
on as sti
pulate
d by loc
al laws
. We set
me
asura
ble ob
jec
tives for a
chievi
ng
diver
sit
y and in
clus
ion for I
HG an
d we review
our pro
gres
s aga
inst th
em ea
ch year.
Se
e our D
E&
I Poli
cy at
www.ihgplc.
com/
responsible-business
25
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ou
r strate
gy
Inc
rea
si
ng th
e diver
sit
y of ou
r
leadership talent
We continu
e to deli
ver tal
ent initi
atives,
suc
h as our s
ucc
es
sful R
ise p
rogramm
e,
whic
h is focu
se
d on inc
reas
ing the nu
mbe
r
of wome
n in G
M and op
eratio
ns rol
es.
Duri
ng 202
1, mo
re than 10
0 wom
en join
ed
to take adva
ntag
e of mento
ring se
ss
ions
,
care
er d
evelop
ment wo
rksho
ps, hig
h-i
mpac
t
lea
rning mo
dul
es and e
mpowe
ring
conver
sati
ons de
sign
ed to fur
th
er ca
reer
s.
In the A
meric
as
, we launc
hed A
sc
end,
a be
spo
ke program
me to devel
op Bl
ack
lea
der
ship t
ale
nt and bu
ild stron
g relatio
nsh
ips
with org
anis
ation
s dedi
cate
d to supp
or
ting
Bla
ck em
ployee
s, whil
e in the U
K, we h
ave
worked wi
th Women in H
os
pita
lity a
nd
Leis
ure (W
iH
TL) to provid
e opp
or
tunitie
s for
our eth
nic mino
rity t
ale
nt on a de
dic
ated
talent programme. An ethnicity disclo
sure
cam
paign wa
s als
o carri
ed ou
t in the U
K
to fur
ther un
der
sta
nd our p
opu
lation a
nd
help i
nform futu
re soluti
ons an
d acti
ons
to supp
or
t our eth
nic mino
rit
y empl
oyees
.
IH
G proud
ly co
ntinue
s to be rec
ogni
se
d for its
eo
rt
s, with C
EO Keith Barr ra
nked i
rst in th
e
202
1 H
ERoe
s Advoc
ates li
st, wh
ich ce
leb
rates
the top 3
5 executi
ves or s
enio
r lea
der
s who
active
ly ca
mpaig
n for diver
sit
y
, in
clus
ion an
d
gen
der b
alan
ce in th
e workp
lac
e. IH
G als
o
rec
eived a H
ighly C
omm
en
ded award in
the C
omp
any of the Y
ear c
atego
r
y at the
Europe
an D
ivers
ity Awards
, with the e
or
ts
of se
veral
employ
ees being acknowledged
across
dier
ent
catego
ries.
Putting
the ri
ght decision-making
pro
ce
ss
es a
rou
nd ou
r act
ion
s
We unde
rst
and that a d
ivers
e and in
clus
ive
environ
ment c
reates a s
ens
e of be
long
ing
amo
ng emp
loyees a
nd bui
lds tru
st in our
culture an
d value
s as a c
ompa
ny
. In 2
02
1, we
mad
e progre
ss o
n multip
le fronts
, inclu
ding
our work to m
ainta
in a hea
lthy gend
er
bal
ance a
s par
t of o
ur suc
ce
ssio
n pla
nning
and o
ur work with re
cruitm
ent pa
rtn
ers
to ens
ure that ta
lent s
hor
tlis
ts are as di
vers
e
as po
ss
ible
. We also work w
ith organ
isati
ons
that encourage
female senior
leader
devel
opme
nt, an
d interna
lly run in
-
depth
tal
ent review
s with our C
EO and C
HRO to
creat
e r
obust plans
and pat
hw
ays
arou
nd
devel
oping f
uture le
ade
rs.
A new me
mbe
r was al
so ap
pointe
d to our
Glo
bal D
E&I B
oard to re
pres
ent the voi
ce
of the N
ext G
en
eration a
nd he
lp sha
pe how
we buil
d an incl
usive cu
lture whe
re all
colleagu
es can thrive.
In 20
21, we fu
rth
ered o
ur intent to cul
tivate
inclusion wi
thin ou
r supply chai
n. This w
ork
include
d IHG joinin
g leading supp
lier diversit
y
cou
ncils to h
elp bro
ade
n our ne
twork o
f
diver
se lo
cal s
uppli
ers
. In ad
dition, a n
ew
anal
ysis to
ol was id
enti
ie
d for hotel a
nd
cor
porate s
pen
d that wil
l allow us to cre
ate
a more info
rme
d glob
al pic
ture and id
entif
y
opp
or
tunitie
s to incre
ase wo
rk with sm
all
and di
verse b
usi
nes
se
s. In s
uppo
rt o
f this,
we have st
arte
d the pro
ce
ss of d
etail
ing
and c
ommun
icatin
g our su
pplie
r diver
sit
y
progr
amme to he
lp de
mon
strate our
com
mitme
nt to the pe
opl
e and c
ommun
ities
that we imp
act
.
As at 3
1 De
ce
mb
er 2
02
1
Male
Female
To
t
a
l
Directors
7
5
12
Executive Co
mmittee
7
3
10
Executive Co
mmittee
direct re
port
s
33
22
55
Senior
managers
(including
subsidiar
y directors)
81
29
110
All emplo
yees
(w
hose costs
wer
e
bo
rne by th
e Gro
up
or th
e Sys
tem Fund
)
4
,679
6,482
11
,1
6
1
Hum
an rig
hts a
nd m
ode
rn sl
aver
y
An integ
ral par
t of o
ur glob
al co
mmitm
ent
to resp
ons
ible b
usin
es
s is res
pe
cting hu
man
rights i
n acc
ordan
ce with i
nternatio
nally
recognis
ed standards.
We unde
rst
and the i
mpo
rt
anc
e of huma
n
rights i
n relatio
n to our co
llea
gue
s, gue
sts
and c
ommun
ities a
nd we en
coura
ge tho
se
with wh
om we do bu
sine
ss – i
nclu
ding
our su
pplie
rs, own
ers a
nd fran
chis
ee
s –
to prevent, m
itigate an
d addre
ss a
dvers
e
impa
cts o
n huma
n rights, in
clud
ing mo
dern
slaver
y
. We see
k to advan
ce hum
an right
s
through o
ur bu
sine
ss a
ctiviti
es and by
workin
g togeth
er wit
h other
s to identif
y
chal
leng
es an
d ee
ctive so
lutio
ns.
Key focus are
as in 20
21 i
nclu
ded: th
e
devel
opme
nt and p
ilot of min
imum
requi
reme
nts rela
ting to migrant wo
rker
risks i
n our ho
tels, incl
uding r
esponsible
recruitment and onb
oarding, sta
 living
acc
omm
odati
on and wo
rker voice
; and
a conti
nue
d risk a
sse
ss
ment o
f our sup
ply
chai
n, alon
g with ana
lysis o
f our ap
proac
h
to due dilig
enc
e of sup
plie
rs.
Fin
dings fro
m our 20
19/20 Om
an market-leve
l
lab
our as
se
ss
ment c
ontinu
e to be ad
dres
se
d
and ap
plie
d to other c
ountri
es in the I
ME
A
regio
n, and we h
ave star
ted a s
imilar
as
ses
sm
ent in the U
K
. More b
roadl
y
, we have
collaborat
ed with
the Sustai
nable Hospitality
Allian
ce (SH
A) and I
nternatio
nal O
rgani
satio
n
for Migrati
on (IO
M) on p
ro
je
ct
s fo
cu
s
ed
on
ethical recruitme
nt in our industry.
S
ee ou
r Co
de of C
on
duc
t dis
clo
sur
e on pa
ge
s
37 to 38
, Res
po
nsi
ble B
us
ine
ss a
nd N
omin
atio
n
Co
mmi
tte
e Rep
or
ts o
n pag
es 1
00 to 1
03 an
d
st
atem
ent o
n dis
abil
it
y on pa
ge 2
27.
Se
e our M
od
ern S
laver
y S
tate
me
nt at
www.ihgplc.com/
modernslavery
We do not req
uire emp
loyee
s to
repor
t ethnicity and are dependent
on self
-disclosure. W
e encourage
employ
ees to consider disclosur
e,
whic
h will provid
e strong
er rep
or
ting
in the fu
ture.
IH
G is a me
mbe
r of the U
nited N
ation
s
Glo
bal C
omp
act (U
N
GC) and i
s
com
mit
ted to align
ment of I
HG
’s
ope
ration
s, cultu
re and stra
tegie
s with
the U
NG
C
’
s 10 unive
rsa
lly ac
cepte
d
princ
iple
s in rel
ation to hum
an rights
,
environ
ment an
d anti-
c
orruptio
n.
Our s
t
ra
t
egy
c
o
nti
nu
e
d
Car
e f
or ou
r pe
opl
e
, com
mu
ni
t
ies and pl
ane
t
c
o
ntin
u
e
d
Strate
gic Re
po
rt
26
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
C
o
m
mu
n
iti
e
s
Imp
rove the l
ives of 3
0 mill
ion
people in our
communities
aro
und t
he worl
d
Our 2030 commitments
•
Drive econ
omic and social change
through s
kill
s training a
nd inn
ovation
•
Sup
po
rt o
ur com
munitie
s whe
n natura
l
disasters
strik
e
•
C
ollab
orate to aid th
os
e facin
g
food
pov
er
ty
We rely on th
e comm
unitie
s in whic
h we
ope
rate and a
re proud to us
e our gl
obal
sc
ale, tim
e, skill
s and re
sourc
es to en
sure
that ou
r growth c
ontrib
utes p
ositi
vely
to thos
e around u
s.
As we work toward
s our ta
rgets
, it’s
impo
r
tant we un
der
stan
d the imp
act o
f our
inv
estments, which ma
kes integrit
y of d
ata
key to our appro
ach. T
his yea
r
, we joi
ned
Bu
sine
ss for S
oci
etal I
mpa
ct (B
4S
I) – the
glob
al st
anda
rd in man
aging c
orp
orate
com
munit
y investm
ent – s
o that we c
an
me
asure ou
r input
, outp
ut and im
pac
t
of our
proj
ects.
What w
e achi
ev
ed in 2021
Skills training and innovation
We’
re p
as
sion
ate abo
ut our in
dustr
y an
d
ins
piring in
divid
uals to exp
lore ju
st how
rewarding a c
aree
r in ho
spit
alit
y can b
e.
Sinc
e 20
04, o
ur IH
G Aca
demy pro
gramm
e
has b
ee
n help
ing youn
g peo
ple a
round th
e
world g
ain valua
ble e
mploym
ent an
d life
skil
ls throug
h work expe
rien
ce, inte
rnshi
ps
and ap
prenti
ces
hips a
long
side s
ome o
f the
world
’s best h
otelie
rs.
In the p
ast e
ight year
s, work
ing with lo
ca
l
education pr
oviders
and commun
ity
organisat
ions, mor
e tha
n 80,
000 people
have be
en train
ed an
d mento
red throu
gh
the I
HG Ac
ade
my
, oe
ring tho
se from
all ba
ckground
s a rich varie
ty of fre
e
progr
amme
s to help th
em ga
in a job in
hos
pit
alit
y or othe
r indu
strie
s, as pa
rt o
f
our pro
mise to p
rovide T
rue H
osp
itali
ty
for Go
od o
n a glob
al sc
ale.
T
o f
urth
er it
s reach
, we evolved th
e IH
G
Aca
demy in 20
21 w
ith the la
unch of th
e
IH
G Skill
s Aca
demy – a b
est-in
-
clas
s onli
ne
lea
rning p
latfo
rm that provi
des a s
pac
e for
IHG and lik
e
-minded collaborat
ors t
o oer
free o
nline e
duc
ation, c
our
ses a
nd
opportunities f
or t
housands more
people
loo
king to b
uild the
ir co
ni
den
ce and g
et
emp
loyme
nt-ready. This work ha
s be
en
unde
r
taken in c
olla
borati
on with c
haritie
s
and oth
er IH
G sup
plie
rs and l
aunc
hed i
n
Oc
tobe
r with more th
an 50
0 initia
l piec
es
of Engli
sh co
ntent availa
ble.
We continu
e to advan
ce othe
r ski
lls-
buil
ding
progr
amme
s, too, inc
ludin
g workin
g with
glob
al NG
O Jun
ior Ach
ieveme
nt Worldwi
de
to give young p
eop
le a he
ads
tar
t in th
e
world of wo
rk, a
nd in 20
21 we h
oste
d our
Glo
bal I
nnovation C
hall
eng
e to help
high-school students
learn v
aluable ski
lls.
We have also s
et up the O
pe
n Sourc
e
Curriculum with the Sustainabl
e Hospit
ality
Allian
ce, wh
ich will p
rovide fre
e onlin
e
teac
hing to he
lp par
tici
pant
s to ind j
obs
in hos
pit
alit
y or othe
r indu
strie
s.
In Gre
ater C
hina, we form
ed a s
trategic
partne
rship with W
uxi Special Educ
ation
Scho
ol to provide training, in
ternships an
d
emp
loyme
nt for mute an
d deaf c
hildre
n,
with a num
ber o
f hotels i
n diere
nt citie
s
now ta
king p
ar
t. We also we
lco
me
d 149
Future Lead
er As
pire par
tic
ipant
s into our
Future Lead
ers p
rogramm
e.
Givi
ng for G
oo
d mo
nth
Duri
ng Se
ptemb
er 202
1, mo
re than 4
0,000
colleagues supported communi
ty projects
as pa
rt of o
ur annu
al Giv
ing for G
oo
d month,
mak
ing a po
sitive di
eren
ce to mo
re than
350,000 people.
Over 2
60,00
0 volunte
erin
g hour
s were
col
lec
tively de
dic
ated to su
ppo
rtin
g
com
munitie
s, c
ause
s and c
hariti
es, wi
th
col
lea
gue ac
tivitie
s rangi
ng from ho
sting
free p
op
-up g
roce
ry s
tores in th
e US an
d
cha
rity wal
ks in the U
K, to p
lanting tre
es
in Sau
di Arab
ia.
Supporting our communities
whe
n nat
ural d
is
aste
rs s
trike
We continu
e to work with a ra
nge of s
kille
d
humanitarian aid organisations to support
critic
al reli
ef eo
rt
s and he
lp our c
ommu
nitie
s
in time
s of ne
ed, wh
ethe
r that involve
s
dea
ling with th
e imp
act of th
e pand
emic
or the e
ec
ts of na
tural dis
aste
rs.
In 20
21, we s
uppo
rte
d relie
f eor
ts a
round
the glo
be thro
ugh do
nation
s to chari
ties
incl
uding th
e Intern
ationa
l Fede
ration
of Red C
ros
s and Re
d Cres
ce
nt Soc
ietie
s
followi
ng the 
loo
ds in Wes
tern Europ
e, while
als
o supp
or
ting it
s resp
ons
e to the pa
nde
mic
in co
untries s
uch a
s Indi
a and Br
azil.
27
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ou
r strate
gy
We donate
d to the Bri
tish Re
d Cros
s, wh
o
supp
or
ted th
e UK va
ccin
ation pro
gramm
e,
and wor
ked with CAR
E Intern
ation
al
following typh
oons in the Philippin
es.
IH
G has wo
rked with th
e Ameri
can Re
d
Cros
s (ARC) o
n disa
ster re
lief for a l
ong tim
e,
and we c
ontinu
ed sup
po
rtin
g its in
credib
le
work in 20
21, i
nclu
ding he
lping th
e many
US c
ommun
ities a
ecte
d by wild
ire
s,
torna
dos an
d Hurri
can
e Ida, a
long w
ith the
rese
ttl
eme
nt of Afghan re
fuge
es
. As well a
s
many of ou
r hotels p
roviding fo
od, toil
etrie
s
and qu
arantin
e facili
ties, I
HG wa
s amo
ng
one of t
he i
rst c
ompa
nies to jo
in the T
ent
Par
tne
rship – a p
le
dge to he
lp Afghan
refug
ee
s rese
ttle i
n the US by provi
ding
trainin
g, job op
por
tuni
ties an
d guid
ance fo
r
our ho
tels to sup
por
t e
or
ts to hire the
m.
We ass
ist ou
r coll
eag
ues u
sing th
e IH
G
Colleague Disaster Relief
Assistance Fund.
Duri
ng 202
1, we sup
por
te
d corp
orate
emp
loyees
, hotel te
ams an
d their f
amilie
s
impa
cted by hu
rrica
nes a
nd seve
re weathe
r
in the U
S, and oth
ers d
eali
ng with a
wors
enin
g situatio
n in Ind
ia as a re
sult
of the p
ande
mic.
Co
lla
bor
ate to aid t
ho
se fa
cin
g food p
over
ty
We have supp
or
ted foo
d ban
k and
foo
d provisi
on cha
rities i
n 44 c
ountri
es.
Our d
onatio
ns have he
lpe
d the
se provi
ders
acc
es
s the fun
ds, tra
ining an
d reso
urce
s
requi
red to oe
r bas
ic provis
ions to s
ocie
ty
’s
most vul
nerable.
We are workin
g with orga
nisa
tions s
uch
as N
o Kid H
ungr
y in the U
S and th
e T
ru
ss
ell
T
ru
st in th
e UK
, whil
e supp
or
ting the
Europe
an Fed
eratio
n of Food B
anks (F
EBA)
and T
he Gl
obal Fo
odB
ank
ing Ne
twor
k (GFN).
We also wo
rk clos
ely w
ith organ
isati
ons in
die
rent par
t
s of the worl
d to diver
t foo
d
from our h
otels to th
ose in n
ee
d.
Communities engagement
The c
ommu
nitie
s we are a par
t of bo
th supp
or
t and b
ene
i
t from our re
spo
nsib
le bu
sine
ss a
pproa
ch and th
e co
mmitme
nts
we have mad
e to achieve a b
et
ter and m
ore sus
tain
abl
e future for ever
yon
e through o
ur Jo
urney to T
omorrow p
rogram
me.
What i
mpacted them
in 2021
Engagement
Outc
omes
•
Natura
l dis
aste
rs
, suc
h as t
yph
oo
ns in th
e
Phil
ipp
ine
s, l
oo
ds in We
ster
n Europ
e an
d
torn
ado
s in th
e US
•
Soci
eta
l and e
co
nom
ic imp
act o
f the
pandemic,
includi
ng unemplo
yment and
foo
d pover
t
y
•
Mode
rn sl
aver
y an
d huma
n right
s is
su
es
•
Acce
ss to b
usi
nes
s sk
ill
s devel
op
men
t and
local emplo
yment
•
Climat
e cha
nge an
d oth
er wi
der
envi
ronmen
tal chal
lenges
•
Cont
inued close
collaboration
with
int
ernationa
l and
local chari
ties a
nd
NG
Os
, suc
h as C
are Inte
rna
tion
al
and B
riti
sh Re
d Cro
ss
•
Ind
ustry collaborat
ion on
human r
ights a
nd
lab
our c
on
diti
ons i
n spe
ci
ic m
arket
s
•
Givin
g for G
oo
d mont
h prog
ramm
e of
act
iviti
es a
nd em
ploye
e volu
ntee
ring d
ays
•
Collabora
tion
with
local education
providers and community organisations,
as p
ar
t of our fo
cu
s on o
erin
g ski
lls b
uild
ing
and training oppor
tunities
•
Supp
or
t for re
lief e
or
ts a
roun
d the gl
ob
e
and fo
r our c
oll
ea
gue
s and t
hei
r famil
ies
through
our Colleague Disaster
Relief
Assistance Fu
nd
•
Supp
or
t for fo
od b
ank an
d foo
d provi
sio
n
cha
ritie
s in 4
4 c
ountr
ies
•
Human r
ight
s ass
es
sm
ent
s in IM
E
A an
d UK
•
Laun
ch of n
ew vir
tua
l le
arnin
g pl
atfo
rm
IHG Skills A
cademy
•
Set up Op
en S
ourc
e Cu
rric
ulum w
ith SH
A
•
Over 26
0,00
0 ho
urs o
f emp
loyee vo
lunte
er
ing
de
dic
ated to s
upp
or
tin
g com
mun
itie
s
S
ee o
ur IH
G Ac
ade
my KPI o
n pa
ge 5
3, an
d Res
po
nsib
le B
usi
ne
ss C
omm
it
tee Re
po
rt o
n pag
es 1
00 a
nd 10
1.
Visit
www.ihgplc.
com/
responsible-business
for f
ur
ther i
nform
atio
n on o
ur co
mmun
it
y com
mitm
ent
s.
voc
o Kirk
ton Pa
rk Hu
nter Valley, Australi
a – from it
s sol
ar farm t
hat p
owers l
ight
s, eg
gs th
at co
me from t
he
Kirk
ton P
ark ch
icken
s, h
oney
be
e farm th
at po
llin
ates cro
ps an
d provid
es f
resh h
on
ey
, a
nd rec
ycle
d water th
at
fee
ds th
e lus
h veg
etab
le ga
rden
s, th
ey are on tra
ck to creat
ing an e
nviron
me
ntall
y frie
ndl
y hotel
. Kid
s als
o love
tak
ing th
e foo
d-
scra
p buc
kets to the p
ig pe
n, wh
ich i
s one w
ay the hote
l limi
ts was
te.
35
0
,
000
+
People supported b
y colleagues participating
in
IH
G’s ann
ual G
ivi
ng fo
r Go
od m
ont
h in Se
pte
mb
er
8
0
,
000
+
Peo
pl
e have b
ee
n tra
ine
d an
d me
nto
red t
hro
ug
h
our IHG
Academy
p
rogramme
since 201
3
Our s
t
ra
t
egy
c
o
nti
nu
e
d
Car
e f
or ou
r pe
opl
e
, com
mu
ni
t
ies and pl
ane
t
c
o
ntin
u
e
d
Strate
gic Re
po
rt
28
IH
G
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Se
e Waste fo
r more d
et
ail on
[
p
a
ge
3
0]
Plan
et
With h
otels in m
ore than 1
00 c
ountrie
s and
ambi
tious grow
th pl
ans fo
r our bra
nds, it i
s
impo
r
tant to us th
at we ope
rate sus
tain
ably
and h
elp pre
ser
ve ou
r plan
et for all
gen
eratio
ns to travel an
d explo
re.
So tha
t we contin
ue to create m
ore
sustainable
guest sta
ys and
support our
hotel
s to reduc
e ca
rbon e
mis
sion
s, man
age
waste
, and
conserve and pr
eserve nat
ural
reso
urce
s, we are work
ing with o
ur hotel
owners,
suppliers,
indust
ry and go
vernmen
ts.
Remaining mindful of the ch
allenge
s owners
fac
e in the curre
nt tradin
g environm
ent,
we als
o set up a G
lob
al Environm
ent
al
Sus
tain
abilit
y C
ommit
tee w
ith the I
HG Ow
ner
s
As
soc
iation in 2
02
1 to help u
s develo
p
achiev
able milestones a
nd reach our
shared
goa
ls over the n
ext d
ec
ade.
Se
e ou
r TCFD, Re
sp
ons
ibl
e Bu
sine
s
s
Co
mmi
tte
e Rep
or
t an
d gree
nho
us
e gas
emi
ss
ion
s dis
clo
sure
s on p
age
s 32 to 3
5,
10
0, 101 a
nd 2
29 to 2
30.
Se
e our Re
sp
on
sib
le Bu
sin
es
s Rep
or
t at
www.ihgplc.
com/
responsible-business
Energy
Red
uc
e our e
ne
rgy u
se an
d
ca
rbon e
mi
ss
ion
s in lin
e with
climat
e science
Our 2030 commitments
•
Imp
lem
ent a 20
30 1.
5°C s
cien
ce
-b
as
ed
target that delivers
–
46
% abs
olute re
ducti
on in CO
2
from
our fra
nchised, managed, ow
ned,
lea
se
d and m
anag
ed le
as
e hotels
•
T
arget 10
0
% new buil
d hotel
s to
ope
rate at ver
y low/zero carb
on
emi
ssio
ns by 20
30
•
M
aximis
e/optimise th
e role
of r
enewable
energy
With th
e hotel s
ecto
r acc
ountin
g for aroun
d
1% of glo
bal c
arbo
n emis
sio
ns, we kn
ow it
’s
impo
r
tant tha
t we play our p
ar
t in protec
ting
our pl
anet fo
r the futu
re. In 202
1, we jo
ined
the U
N’s Rac
e to Zero and up
grad
ed our
carb
on e
mis
sion
s targe
t to align with th
e mos
t
ambi
tious g
oals o
f the Pari
s Agree
ment to
keep gl
obal wa
rming wi
thin 1.
5°C.
As we own le
ss th
an 1% of ou
r hotels
,
ever
y
thing we do to m
ake a long
-term
cha
nge mu
st be a
chieve
d in coll
abo
ration
with our ow
ner
s, par
tne
rs an
d coll
eag
ues
.
Car
bon re
ducti
on is a p
riorit
y we have
be
en work
ing cl
ose
ly on, in
cludi
ng set
ting
a sci
enc
e-
ba
sed t
arget (S
BT
) in 202
0 that
was initi
ally alig
ned w
ith limitin
g glob
al
warming to b
elow 2
°
C, and f
urth
er
stren
gthen
ed thi
s year to alig
n with 1.
5°C.
What w
e achi
ev
ed in 2021
T
o m
eet o
ur new up
grad
ed S
BT
, wo
rk was
unde
r
taken thi
s year to en
sure ever
y IH
G
hotel h
as its ow
n ene
rgy redu
ctio
n target fo
r
202
2, a
nd as a b
usin
es
s we are focu
se
d on
three b
road are
as: a
ction p
lans a
nd traini
ng
to develo
p cle
arly de
i
ned p
athways that
improve the e
nerg
y e
icie
ncy of our exi
sting
hotel e
st
ate; help
ing owne
rs s
ource re
newabl
e
ene
rgy; and deve
lopin
g our str
ategy to en
sure
our ne
w-b
uild hote
ls op
erate at ver
y low o
r
zero c
arbo
n in the future
.
In 20
21, key step
s incl
ude
d introdu
cing
a new sys
tem to allow hote
ls to have the
ir
ene
rgy dat
a autom
atical
ly captu
red for
track
ing, whi
ch in turn all
ows for mo
re
targ
eted ac
tion
s and rec
omm
end
ation
s to
redu
ce en
ergy c
ons
umption
. We have also
switch
ed ou
r UK o
ic
es an
d mana
ged h
otels
to a renewab
le en
ergy t
ari an
d conti
nue
to map ren
ewabl
e ene
rgy opp
or
tunitie
s
globally
, alongside w
orking w
ith a
number
of hotel
s on on
-s
ite renewa
ble e
nergy.
Rec
ogni
sing th
e value of c
olla
bora
tion
in sp
ee
ding up p
rogres
s, we b
ec
ame the
ir
st hote
l com
pany to sign up to th
e UK’s
Zero Ca
rbon For
um, whic
h alon
g with our
IHG a
t COP
2
6
IH
G played a l
ead
ing role fo
r the
hos
pit
alit
y indus
tr
y at the U
N’s 26th
Co
nferen
ce of the P
ar
ties (CO
P
26) in
Gla
sgow i
n Novemb
er 20
21, w
hich
focu
se
d on how gove
rnmen
ts,
bus
ine
sse
s and c
ivil so
ciet
y c
an work
toget
her to 
ind the u
rgent s
olutio
ns
neede
d t
o tackle clima
te change.
Our C
hief S
ust
ainab
ilit
y O
ice
r and
EVP
, Global Corporat
e Aai
rs spoke
at a se
ries of hi
gh-
pro
ile event
s over
the co
urs
e of the t
wo-
wee
k summit
,
where
they
discussed the
facts t
he
indu
str
y ne
eds to fa
ce up to, the
impo
r
tanc
e of co
llab
oratio
n in bring
ing
me
aningf
ul chan
ge and o
utlin
ed the
innovative s
tride
s IH
G is mak
ing to he
lp
sha
pe the f
uture of res
pon
sibl
e travel.
As tr
ustees of
the Susta
inable
Ho
spit
alit
y Allia
nce, th
ey also h
elp
ed
laun
ch the G
las
gow De
cla
ration:
A Co
mmitme
nt to a De
ca
de of
Clim
ate Actio
n in T
o
urism
.
Duri
ng the for
tnight
, CEO Keith B
arr
als
o atten
de
d the Elys
ée Pa
lac
e in
Paris fo
r a rece
ption a
nd work
ing
session with t
he F
rench P
resident,
Emma
nuel M
ac
ron, on how we c
an
ac
ce
ler
ate rec
over
y a
nd m
ove toward
s
a more s
ust
ainab
le travel an
d
tour
is
m se
cto
r
.
The te
am at C
rowne Pl
aza C
op
en
hag
en T
ower
s in De
nm
ark is d
ed
ica
ted to runn
ing a f
ully s
usta
ina
ble h
otel.
Its fa
cad
e is li
ne
d with s
ola
r pan
el
s so th
at a renewa
bl
e ene
rgy so
urce c
an he
lp p
ower th
e bu
ildi
ng an
d
a state
-
of-the
-ar
t gro
und
water-bas
ed sy
stem kee
ps it c
oo
l duri
ng su
mme
r an
d warm du
rin
g winter.
Autom
atic inte
llig
ent l
ight
, water
, and w
aste
-s
aving m
ea
sure
s are ins
tall
ed th
rough
ou
t the p
rope
rt
y
,
whil
e a stun
nin
g atrium (
pic
tured
) is i
lle
d with a
ir-puri
fy
ing p
lant
s.
29
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ou
r strate
gy
202
1 to put a ra
nge of p
roduc
t sol
ution
s in
pla
ce for all o
f our bra
nds a
cros
s all regi
ons.
Redu
cing o
ur pla
stic u
sag
e by an esti
mated
85
0 tonne
s in the Am
eric
as re
gion al
one,
the
se bulk p
rodu
cts wil
l also p
rovide ho
tels
with sig
ni
icant c
os
t saving
s.
We have also e
nga
ged w
ith expe
rt
s from
T
ravel W
itho
ut Pla
stic to pro
duce a b
es
poke
Singl
e Us
e Items Toolkit to h
elp gui
de hote
ls
on be
st p
ractic
e whe
n it co
mes to re
duci
ng,
replacing
and r
ecycli
ng common pr
oducts.
The to
olkit p
romis
es to b
e a valuab
le
edu
catio
nal re
sourc
e for our h
otel tea
ms,
whic
h will have a po
sitive im
pac
t on our
ope
ration
s and th
e environm
ent.
Food wa
ste is a p
arti
cular
ly big pro
ble
m
glob
ally
, with a st
agg
ering $
1 trillio
n los
t
or was
ted ever
y yea
r acros
s the p
lane
t –
acc
ountin
g for rough
ly one th
ird of the
world
’s food. We have sp
ent tim
e this year
devel
oping ex
isting c
oll
abor
ations a
nd
formin
g new on
es with exp
er
t orga
nis
ations
across our r
egions t
o tackle the
issue.
Duri
ng 202
1, we co
mme
nce
d the
devel
opme
nt of a glo
bal fo
od was
te training
mod
ule for al
l of our hote
l food te
ams to
enc
oura
ge the
m to mea
sure and m
ana
ge
their fo
od wa
ste, ahe
ad of rol
lout in 2
02
2.
In the U
S, we are work
ing with G
oo
dr to
deli
ver lef
tover fo
od from o
ur hotel
s to loc
al
cha
rities
, and in Europ
e many of o
ur hotel
s
use th
e T
o
o Go
od To Go app to oe
r peo
ple
the s
ame op
por
tuni
ty.
In Aus
tralia, o
ur suc
ce
ssf
ul work with fo
od
cha
rity O
zHa
rve
st ente
red it
s third year
, as
we conti
nue
d to diver
t foo
d waste to lo
cal
com
munitie
s via a n
etwo
rk of cha
rities
, and
in the M
iddle E
as
t, we are us
ing AI te
chno
logy
mem
ber
ship of o
ther o
rganis
ation
s,
incl
uding th
e World T
ravel and Tourism
Co
uncil, th
e Sus
tain
able H
os
pita
lity A
llianc
e
and th
e Amer
ican L
odgin
g & Ho
spit
alit
y
As
soc
iation, s
aw us wor
k coll
ecti
vely on ways
to dec
arb
onis
e the ind
ustr
y
. Working w
ith
expe
rt
s Arup, Gl
ee
ds an
d Schn
eid
er Ele
ctric,
we have explo
red ste
ps to he
lp our exi
siting
hotel
s ope
rate at net ze
ro carb
on.
Was
te
Pioneer the tr
ansformati
on to
a mi
nimal
wast
e hosp
ital
ity
industry
Our 2030 commitments
•
Eliminate single
-us
e items, or move
to reus
able o
r recycl
able al
ternative
s
acro
ss the g
ues
t stay
•
Min
imis
e food g
oing to was
te through
a ‘prevent, don
ate, diver
t
’ pla
n
•
C
ollab
orate to ac
hieve circul
ar so
lution
s
for maj
or hotel c
omm
odit
y item
s
What w
e achi
ev
ed in 2021
With o
nly 9% o
f pla
stic curre
ntly be
ing
recycle
d an
d around o
ne third of fo
od
prod
uce
d be
ing was
ted acro
ss th
e glob
e,
we’
re pas
sio
nate ab
out provi
ding our g
ues
ts
with a mo
re sust
aina
ble s
tay
. We’re working
to elimin
ate singl
e
-us
e item
s in our hote
ls,
adopt mor
e reusable
or recy
clable
alternatives, and establish a three-
part pl
an
to ‘prevent, don
ate and dive
rt
’ fo
od was
te.
While f
ul
illing o
ur com
mitme
nt to move all
hotel
s to bulk-size b
athroo
m amen
ities h
as
be
en ha
mpe
red by the p
ande
mic, we ma
de
impo
r
tant pro
gres
s with s
everal sup
plie
rs in
so ou
r hotels c
an tra
ck and m
eas
ure foo
d
waste, p
roviding c
hefs w
ith real
-time
inform
ation for p
lanni
ng and p
repar
ation.
We also c
olla
borate
d with th
e World Wil
dlife
Fund, Gre
enview an
d indu
str
y pe
ers o
n the
Hote
l Waste Me
asu
reme
nt Meth
odo
logy,
whic
h is de
signe
d to provid
e a com
mon
indu
str
y app
roach to c
olle
cting d
ata, an
d
me
asurin
g and rep
or
ting wa
ste.
We continu
e to loo
k for ways to exten
d the life
of prod
uct
s that le
ave our hote
ls and o
ic
es
.
Our indust
ry has tr
aditi
onally
seen product
con
sumpti
on at vario
us st
age
s of the gu
es
t
expe
rien
ce and s
o our lo
nge
r
-term aim i
s
to achieve c
irculari
ty
, whe
re reso
urces
can b
e recycl
ed or re
use
d on a l
arge sc
ale.
This m
ight inc
lude th
e inco
rpo
ration of
recycle
d co
ntent in the m
anuf
acturin
g
of new p
roduc
ts, o
r makin
g sure item
s are
put to go
od u
se el
sewh
ere onc
e they le
ave
our ho
tels, s
uch as d
onatin
g com
puter
s or
furnitu
re to charit
y
, o
r oeri
ng surp
lus foo
d
to thos
e who ne
ed i
t. We have com
mitte
d
to coll
abo
rate and work w
ith othe
rs to hel
p
us ac
hieve this a
s par
t of our J
ourn
ey to
T
omorrow
commitments.
Wate
r
Co
ns
er
ve water a
nd he
lp
se
cur
e water a
cc
es
s in th
os
e
are
as at g
reat
est ri
sk
Our 2030 commitments
•
Imp
lem
ent too
ls to redu
ce th
e water
footpr
int of our h
otels
•
Mi
tigate water ri
sk throu
gh sta
kehold
er
collaborat
ion t
o deliv
er wat
er
stewards
hip at ba
sin leve
l
•
Collaborate t
o ensure adequat
e wa
ter
,
san
itatio
n and hygien
e (WASH)
con
ditio
ns for ou
r ope
rating c
ommun
ities
De
mand fo
r water of
ten exce
ed
s supp
ly
in many pa
rt
s of the worl
d, with th
e UN
pred
icting th
is de
mand to in
crea
se be
twe
en
20
30
% by 205
0. It
’s therefore neve
r be
en
more im
por
ta
nt for us to 
ind ways to redu
ce
our us
ag
e and work w
ith othe
rs towards
sus
tain
able s
oluti
ons th
at create wate
r
acc
es
s for all. We are im
ple
mentin
g tool
s
to reduc
e water c
ons
umption a
cros
s all our
hotel
s, payin
g par
ticul
ar atte
ntion to tho
se
in water-sc
arce are
as. I
n our co
mmuni
ties,
we are als
o workin
g with othe
rs to es
tab
lish
ade
quate wate
r
, s
anit
ation an
d hygiene
(WA
SH) condit
ions and
help ensu
re s
upply
is ma
nage
d mo
re sust
aina
bly at a lo
cal l
evel.
Our s
t
ra
t
egy
c
o
nti
nu
e
d
Car
e f
or ou
r pe
opl
e
, com
mu
ni
t
ies and pl
ane
t
c
o
ntin
u
e
d
Strate
gic Re
po
rt
30
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Wh
a
t
’
s t
o come
What w
e achi
ev
ed in 2021
Ea
ch of our h
otels h
as be
en gi
ven a water
redu
ction t
arget a
long w
ith acc
es
s to
sus
tain
able s
oluti
ons to imp
rove ei
cien
cie
s
through t
he IH
G Gre
en Eng
age
TM
system,
suc
h as low-
low 
ix
tures an
d it
ting
s.
Own
ers are a
lso ab
le to ac
ces
s inc
reas
ingly
acc
urate dat
a on us
age in th
eir h
otels vi
a
an autom
ated d
ata entr
y too
l.
Havin
g identi
i
ed the ri
sks to water qu
alit
y
and qu
antit
y in our o
pen a
nd pip
elin
e
hotel
s in 201
9, we unde
rto
ok six wate
r
stew
ardsh
ip pr
ojects ar
ound t
he w
orld
as pa
rt of o
ur me
mbe
rshi
p of the Alli
ance
for Water Stewa
rdship (AWS), progre
ss
ing
on the 
ina
l two in Sh
enz
hen i
n China a
nd
on H
ayman Is
lan
d in Austra
lia this ye
ar
.
Applying
the A
WS Standard
to
our pr
ojects
has p
rovide
d a cle
ar pathway to redu
ce
water us
age, w
hile all
owing us to s
hare
ide
as with oth
er gl
obal m
emb
er
organ
isati
ons an
d with hote
ls acro
ss
our e
state to m
aximis
e e
icie
ncy
.
Co
llab
oratio
n is vit
al to mea
ningfu
l progre
ss
and a
s a memb
er of th
e Water Res
ilien
ce
Co
alitio
n, a CEO
-l
ed c
oaliti
on of the U
N
Glo
bal C
omp
act C
EO Water Man
date,
IH
G is work
ing with oth
er org
anis
ation
s to
col
lec
tively a
dvanc
e water steward
ship an
d
pres
er
ve the worl
d’s fresh wate
r
. T
his ha
s
inform
ed our wo
rk to ide
ntif
y and ma
nage
risks a
round wate
r supp
ly
, wh
ile als
o redu
cing
co
sts for o
ur hotel
s as they c
los
ely mo
nitor
their u
sa
ge. In 2
02
1, we also c
oll
abor
ated
with Water
.org as p
art o
f a pilot to he
lp de
liver
WASH con
dition
s for 15,0
00 p
eo
ple in I
ndia,
Indonesia and
Mexico
.
People
It is im
per
ative that we en
sure the ri
ght
cap
abili
ties, to
ols an
d res
ource
s are the
re
to supp
or
t our p
eop
le if we are to drive
the grow
th of ou
r busi
nes
s and b
uild an
incl
usive an
d high
-p
er
forman
ce cul
ture.
Key focus are
as in 20
2
2 inclu
de
investm
ent in an H
R tec
hnol
ogy pl
atfo
rm
that will i
mprove the us
er exp
erie
nce fo
r
cor
porate c
olle
agu
es an
d hotel te
ams
throug
h increased aut
omation
, mobile
functionality and se
amless se
lf-servic
e.
We will als
o contin
ue the wo
rk done i
n
202
1 to stren
gthe
n our G
ene
ral Ma
nage
r
pip
eline, w
ith a par
tic
ular foc
us on
Luxur
y & Life
st
yle in s
uppo
rt o
f our grow
th
asp
iration
s in that s
egm
ent. O
ur stron
g
focu
s on DE
&I will b
e maint
aine
d,
including c
elebrating key ev
ents, building
further e
ducation with conscious inclus
ion
training, and esta
blishing new programm
es
with pro
mine
nt organi
satio
ns that
champion equ
ality within wider society.
We will als
o invest in b
uildin
g our ta
lent
attra
ctio
n cap
abiliti
es, in
crea
se our fo
cus
on ta
lent m
anag
eme
nt to build l
ea
ders
for the fu
ture, and s
tep up a multi
-year
investm
ent in a ne
w IH
G Univer
sit
y
framew
ork desig
ned to s
upport colleague
devel
opme
nt at die
rent leve
ls of
the busi
ness.
Mo
re broadl
y
, we will c
ontinu
e to pla
ce
a cle
ar foc
us on em
ployee e
nga
gem
ent
with our s
trateg
y and how we c
ontinu
e to
invest in o
ur cultu
re and ways of work
ing.
Communities
For our c
ommun
ities
, we will co
ntinue to
work with c
hariti
es to sup
por
t tho
se in m
ost
ne
ed arou
nd the wor
ld, and th
e rollou
t
of our I
HG S
kills Ac
ad
emy will co
ntinue
in local languag
es across markets globally
,
with the a
dditio
n of new l
oc
al coll
abo
ration
s.
Plane
t
Buil
ding a su
sta
inab
le future i
s not simp
ly
a goa
l for our in
dustr
y b
ut impe
rative
for our p
lane
t, and a
s one o
f the world
’s
lea
ding h
otel group
s, we rec
ogni
se ou
r
resp
on
sibilit
y to ta
ke decis
ive, pra
ctic
al
acti
on to redu
ce c
arbon e
mis
sio
ns in
ever
y par
t of ou
r bus
ines
s.
Fr
om 20
2
2, tie
d to our new s
cien
ce
-b
ase
d
targ
et and Ra
ce to Zero pl
ed
ge, we will
incre
ase t
he sup
por
t we provi
de our
owne
rs in imp
roving the e
nergy e
i
cien
cy
of the
ir hotel
s, with e
ach rec
eiv
ing an
ene
rgy targ
et tai
lored to th
eir pro
per
t
y
,
alon
g with ac
ce
ss to so
lution
s and
col
lea
gue traini
ng to drive en
ergy
con
se
rvatio
n. Thi
s will b
e supp
or
ted by
our ne
w HERO (H
otel En
ergy Re
duc
tion
Op
por
tuniti
es) tool, whi
ch will an
alys
e
ene
rgy co
nsum
ption an
d help h
otels 
ind
the me
asu
res sp
eci
ic to th
eir pro
per
t
y
that
repr
esent the
most cost
-eective
way to reduc
e ene
rgy us
age.
More r
enewabl
e energy
contr
acts wil
l
als
o be roll
ed ou
t in die
rent market
s,
and wor
k will be
gin on a
n update to
our I
HG G
reen E
ngag
e system a
nd the
devel
opme
nt of our s
trategy to e
nsure
our ne
w-b
uild hote
ls op
erate at ver
y
low or ze
ro carb
on in th
e future.
31
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ou
r strate
gy
D
e
li
veri
n
g
o
n
th
e
r
e
commendat
ions
of T
CFD
W
ith h
otel
s in th
ous
an
ds of c
om
mun
itie
s all over
the wo
rld, o
ur bu
si
ne
ss a
nd br
and
s tou
ch th
e live
s
of mil
lion
s of p
eop
le ever
y day. W
e un
der
sta
nd t
hat
in ou
r role a
s a ma
jor g
lob
al ho
sp
ita
lity c
om
pany we h
ave an
imp
or
tan
t par
t to pl
ay in ad
dre
ss
ing t
he im
pac
ts of c
lim
ate
ch
ang
e. Th
e suc
ce
s
s of IHG ove
r the l
ong
-term d
ep
en
ds o
n
the env
ironmental and
social sustainability o
f our operat
ions,
the r
es
ilie
nc
e of our s
up
ply c
hai
n and o
ur ab
ilit
y to ma
nag
e
the p
ote
ntia
l imp
act o
f clim
ate c
han
ge on o
ur b
usi
ne
ss m
od
el
and performance.
We have upgra
ded to a 1.
5°C s
cie
nce
-
bas
ed t
arget (SB
T), whi
ch put
s
us on a tra
jecto
ry to a
chieve ne
t-
zero e
mis
sion
s by 205
0. In add
ition,
we have join
ed the U
N
’s Race to Zero – the gl
oba
l camp
aign to rall
y
lea
der
ship an
d sup
por
t from b
usin
es
ses
, citie
s and inves
tors for
a he
althy
, res
ilient
, zero
-
carb
on fu
ture.
While we h
ave an as
set-light b
usin
es
s mod
el, with th
e majo
rity
of IH
G hotel
s owne
d by a third-
par
t
y
, ou
r comm
itmen
ts cover th
e
ope
ration
s of all ou
r hotels g
lob
ally
, w
hethe
r fran
chis
ed, ma
nag
ed,
owne
d, le
ase
d or ma
nage
d le
ase h
otels
.
La
st yea
r
, we ma
de a form
al com
mitme
nt to supp
or
t the
rec
omme
ndati
ons of th
e TCFD. The fo
llowing s
umma
ry s
ets o
ut
our ali
gnme
nt, and n
otes wh
ere in this A
nnual R
epo
rt we h
ave
made further climat
e-related inancial d
isclosures consistent
with
the rec
omm
end
ation
s. In th
e rest of thi
s se
ction
, fur
ther re
levant
dis
clos
ures are in
dic
ated as a
pplic
abl
e. We note that o
ur dis
clos
ures
are co
nsis
tent with th
e TCFD’s rec
omme
ndati
ons for 2
02
1 and
have outlin
ed wh
at acti
ons we wi
ll take to fur
ther s
trengt
hen ou
r
clim
ate-
relate
d i
nanc
ial dis
clo
sures in ‘
Future acti
ons’
.
TCFD recomme
ndation
Sum
ma
ry of o
ur a
lig
nm
ent w
ith TC
FD
Gove
rn
anc
e
– Se
tti
ng ou
t our g
overn
anc
e arou
nd cl
imate
-
rel
ated ri
sks a
nd op
po
rtu
niti
es.
a.
De
sc
rib
e the B
oard
’s overs
ight
of cl
imate
-
rela
ted ri
sks a
nd
opp
or
tunities
.
The I
H
G Bo
ard ha
s co
lle
ctive re
sp
on
sibi
lit
y for ove
rse
ei
ng an
d ens
urin
g the m
ana
gem
ent o
f clim
ate
-re
late
d ris
ks
and o
pp
or
tuni
ties a
nd is a
dvi
se
d by the Re
sp
on
sib
le Bu
sin
es
s Co
mmi
tte
e on I
HG
’s appro
ach i
n this a
rea
. Se
e more
details on
page 33.
b.
Describe ma
nagement’
s r
ole
in asse
ssing and managin
g
climate
-rel
ated risks and
opp
or
tunities
.
The E
xe
cuti
ve Co
mmit
te
e is re
spo
ns
ibl
e for ma
nag
ing cl
imat
e-
rel
ated r
isks a
nd op
po
rt
uniti
es
. The C
hie
f Fin
anc
ial
O
ic
er an
d Gro
up H
ead o
f Stra
tegy (C
FO) is th
e overal
l sp
ons
or fo
r dec
arb
on
isa
tion w
ithin t
he bu
sin
es
s, an
d we have
form
ed a TC
FD Ste
er
ing G
roup of S
en
ior Le
ad
ers f
rom ac
ros
s di
eren
t func
tio
ns of th
e bus
ine
ss w
ho h
ave led t
he
work
, su
ppo
r
ted by th
e TCFD Wo
rkin
g Gro
up, to en
sure we a
ss
es
s and m
ana
ge c
lima
te-
rel
ated r
isks a
nd o
ppo
r
tuniti
es,
emb
ed
din
g the re
sult
s of th
e clim
ate sc
en
ario a
nal
ysi
s into lo
ng-
ran
ge bu
sin
es
s pl
anni
ng. S
ee m
ore de
tail
s on
pa
ge 33
.
Strategy
– Th
e ac
tual a
nd po
tenti
al imp
ac
ts of c
lima
te-
rel
ated r
isks a
nd o
ppo
r
tuniti
es o
n our b
usi
nes
s, s
trate
gy an
d in
anc
ial p
lan
ning
, whe
re mate
rial
.
a.
De
sc
rib
e the cl
imate
-
rel
ated ri
sks
and opportunit
ies the
organisat
ion
ha
s fac
ed ove
r the s
hor
t, m
ed
ium
and long-term.
Wit
h exte
rna
l expe
r
tise
, we co
mpl
eted a r
isk a
nd op
po
rtu
nit
y revie
w acro
ss o
ur val
ue ch
ain an
d ide
nti
ie
d the m
os
t
mate
rial p
ote
ntial i
mpa
cts a
ss
oc
iate
d with o
ur bu
sin
es
s. S
ee o
ur cli
mate
-r
elat
ed ri
sks t
abl
e on pa
ge 3
4 and
clim
ate
-re
late
d op
po
rtu
niti
es t
abl
e on pa
ge 3
5.
Our i
mpa
ct
s are ca
tego
ris
ed ove
r the fo
llow
ing ti
mes
ca
le
s: (a) shor
t: 1
5 yea
rs to hig
hlig
ht imm
edi
ate ris
ks or
opp
or
tun
itie
s; (b) me
diu
m: 10
15 yea
rs to ali
gn to ou
r Grou
p stra
tegi
c pla
nnin
g cycle
s; (c) long
-ter
m: 30 ye
ars to a
lign
to TCFD re
qu
irem
ent
s.
b.
D
es
cri
be th
e imp
act o
f clim
ate
-
rel
ated ri
sks a
nd op
po
rtu
niti
es
on the
organisat
ion’
s businesses,
strategy
, and inancial planning.
Cli
mate
-
rela
ted s
cen
ari
os are b
ein
g emb
ed
de
d into ou
r lon
g-
rang
e pl
anni
ng an
d future B
oa
rd stra
tegy d
is
cus
sio
ns
.
Work is u
nde
r
way to imp
rove dat
a and m
od
elli
ng arou
nd m
ajor r
isks i
den
ti
ie
d and TC
FD i
ndi
ngs a
re now
co
nsi
dere
d as p
ar
t of th
e strate
gic p
la
nnin
g proc
es
s. We h
ave outl
ine
d the m
ost m
ater
ial of o
ur im
pac
ts in o
ur
clim
ate
-re
late
d ris
ks ta
bl
e on pa
ge 3
4. S
ee p
age
s 29 to 3
1 for de
tai
ls of th
e envi
ronm
ent
al ini
tiati
ves al
read
y
und
er
way an
d pag
es 14
9, 172 a
nd 176 for t
he co
nsi
de
ratio
n of cli
mate ri
sks i
n the 
ina
nci
al st
atem
ent
s to sup
por
t
co
ncl
usi
ons o
n goin
g co
nce
rn, d
efer
red t
ax as
se
ts an
d go
odw
ill res
pe
cti
vely.
c.
D
e
scr
ibe th
e res
ilie
nc
e of the
organisat
ion’
s strat
egy
, taking
into
c
onsiderati
on dier
ent
climate
-rel
ated sce
narios,
inc
ludi
ng a 2
°C o
r lowe
r sc
en
ario.
We ana
lyse
d th
e resi
lien
ce o
f IH
G’s stra
tegy u
nde
r bot
h 2°
C an
d 4°C c
lim
ate ch
ang
e sce
na
rios
. Th
e resu
lts s
howe
d
that
, give
n IH
G’s as
set-
light b
us
ine
ss m
ode
l, tra
nsit
ion ri
sks a
re more l
ikely to h
ave a mate
rial i
mpa
ct on o
ur bu
sin
es
s,
co
mpa
red wi
th phys
ica
l ris
ks.
For mo
re det
ail o
n how we a
re mitig
atin
g our c
limat
e-
rel
ated r
isks to e
ns
ure bu
sin
es
s res
ilie
nce
, se
e our c
lima
te-
rel
ated
ris
ks ta
ble o
n pag
e 34 a
nd se
e p
age
s 29 to 3
1 for de
tai
ls of ou
r envi
ronm
ent
al po
lic
ies a
nd ini
tiati
ves
.
Future actions
We’
re c
ommi
tte
d to contin
ued im
proveme
nt on cli
mate ris
k
man
age
ment a
s we delive
r on the s
trategi
c intent of the TC
FD.
In ad
dition to s
pec
i
ic clim
ate risk miti
gation a
ctio
ns ide
nti
ied
in the foll
owing p
age
s, over the n
ext 12 m
onths we w
ill deli
ver
the foll
owing key actio
ns:
•
C
ontinu
e the integ
ration of c
limate co
nsi
derati
ons into o
ur
Group r
isk ma
nag
eme
nt framewo
rk. Th
is allows u
s to con
sid
er the
interac
tion
s bet
wee
n clim
ate and othe
r strate
gic ris
ks, as wel
l as
impl
eme
nting miti
gation
s through b
usin
es
s-
as
-us
ual pro
ce
ss
es.
•
C
ontinu
e to monitor tre
nds in p
otentia
lly mate
rial clim
ate
-rel
ated
risks a
nd op
por
tuniti
es, wi
th improved d
ata c
apture. T
his will
incl
ude fur
th
er emb
ed
ding cl
imate imp
act
s into our ris
k
assessments and long-t
erm ina
ncial pla
ns and Gr
oup st
rat
egy
,
with deve
lopm
ent of f
urth
er me
trics w
here ne
e
ded
.
•
We will ta
ke steps to ali
gn to new rec
omm
end
ations a
nd
disclosur
e requ
iremen
ts under t
he In
terna
tional
Sus
tain
abil
ity
St
anda
rds Bo
ard (IS
SB), TCFD an
d UK G
ree
n Fina
nce S
trategy.
•
Un
der
ta
ke a carb
on pric
e expo
sure as
se
ss
ment o
n how cha
nge
s
to carb
on pri
cing p
olicy c
ould im
pac
t our bu
sine
ss
, and to inform
the bu
sine
ss c
as
es for d
ec
arbo
nisa
tion ac
tions
.
•
Enh
anc
e the qua
lity o
f data c
apture o
n thos
e risks th
at have
be
en id
enti
ied a
s mos
t materi
al and p
rovide fu
rth
er qua
ntii
catio
n
of the p
otential i
mpac
ts.
•
D
evelop a G
roup
-wi
de clim
ate trans
ition p
lan to co
ordina
te
dec
arb
onis
ation i
nitiative
s and inves
tment
s tak
ing pl
ace a
cros
s
our bu
sin
ess
. Thi
s plan wi
ll align wi
th our 1.
5°C S
BT com
mitme
nt.
Strate
gic Re
po
rt
32
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
G
overn
an
c
e
Bo
ard c
ons
id
erati
on of c
lim
ate ris
k and o
pp
or
tunit
ie
s
IH
G’s appro
ach to govern
anc
e has b
ee
n abo
ut add
ress
ing
our e
nvironme
ntal an
d so
ciet
al impa
cts a
s well as o
ur i
nanc
ial
pe
rfor
manc
e for ma
ny years. O
ur govern
anc
e frame
work is he
ad
ed
by the Bo
ard, whic
h incl
ude
s coll
ecti
ve resp
ons
ibilit
y for en
surin
g
the ma
nag
eme
nt of clim
ate-
relate
d risks a
nd op
por
tuniti
es
.
The B
oard i
s advi
se
d by the Res
pon
sibl
e Bus
ine
ss C
ommit
tee
(the Com
mit
tee) on the G
roup’s corpo
rate resp
on
sibilit
y str
ategy
,
incl
uding o
ur app
roach to c
limate
-re
lated im
pac
ts. T
he C
ommit
tee
me
ets thre
e time
s a year an
d ass
es
se
s the Gro
up’s e
xpo
sure to
pote
ntial lon
g-te
rm clim
ate-
relate
d risks a
nd op
por
tuniti
es. T
his yea
r
,
the C
ommit
tee e
st
abli
she
d TCFD rep
or
ting p
roce
dures a
nd pro
ce
sse
s
for overs
ee
ing the m
onitori
ng and m
anag
eme
nt of the c
limate
cha
nge ris
ks ide
ntii
ed thro
ugh the s
cen
ario an
alysi
s. TCFD i
s als
o
con
sid
ered by b
oth the Aud
it and Re
mune
ration C
ommi
tte
es with
in
the
ir res
pe
cti
ve remit
s.
Bo
ard trainin
g on ESG c
ons
ide
ration
s is provid
ed as n
ee
de
d. In 20
21,
our up
dates fo
cus
ed o
n our de
car
boni
satio
n strate
gy
, a
s well as
sp
eci
ic p
rioritie
s for TCF
D work in 20
22
.
TCFD recomme
ndation
Sum
ma
ry of o
ur a
lig
nm
ent w
ith TC
FD
Risk
management
– How we i
den
tif
y
, as
ses
s an
d man
age c
lim
ate
-re
late
d ris
ks.
a.
De
sc
rib
e the org
ani
sati
on’s
pro
ce
ss
es fo
r ide
ntif
yin
g and
ass
ess
ing climate
-rel
ated risks.
Our TC
FD S
tee
ring G
roup h
as l
ed a de
tai
le
d sce
na
rio an
alys
is of c
lima
te
-rel
ate
d imp
act
s acro
ss th
e IH
G val
ue ch
ain.
Ou
tcom
es o
f this ri
sk a
ss
es
sme
nt pro
ce
ss we
re pre
se
nted to E
xe
cuti
ve Co
mmit
te
e mem
be
rs, S
eni
or Le
ad
ers
hip an
d
the B
oa
rd for revi
ew an
d use
d to info
rm our c
lim
ate ch
ang
e acti
on pl
ans
. Th
e mon
itori
ng an
d man
age
me
nt of the c
lim
ate
ris
ks ide
nti
ie
d by our i
niti
al as
se
ss
men
t (supp
or
ted by ex
te
rnal ex
pe
rti
se) wil
l now b
e integ
rate
d into ou
r exis
ting
ris
k man
age
me
nt pro
ce
ss
es – in
clu
ding s
ce
nar
io pl
anni
ng, cr
isi
s man
age
me
nt an
d anal
ysi
s of lo
nge
r
-te
rm tren
ds
.
For mo
re info
rmati
on on o
ur s
cen
ario a
nal
ysi
s of cli
mate
-
rela
ted ri
sks, s
ee t
he Cl
imate
-
rel
ated ri
sk m
ana
gem
ent a
nd
stra
tegy s
ec
tio
n on pa
ge 3
4.
b.
D
es
cri
be th
e orga
nis
atio
n’s
processes
fo
r man
agin
g
climate
-rel
ated risks.
We have hi
stori
ca
lly ta
ken a num
be
r of ste
ps to m
ana
ge cli
mate ri
sk
, inc
lud
ing ac
tiv
itie
s suc
h as e
nga
ging w
ith
cus
tom
ers a
nd th
e rest o
f the in
dus
tr
y on de
ma
nd for g
ree
ner t
ravel an
d ho
spi
tal
ity s
er
vi
ce
s. For s
evera
l year
s, we h
ave
als
o ha
d car
bon re
du
ctio
n ta
rget
s at bot
h a Grou
p and h
otel l
evel, a
nd in e
arly 2
020 a
nno
unc
ed a S
BT to re
duc
e
gre
enh
ous
e ga
s emi
ssi
ons
, whi
ch we up
gra
ded a
t the e
nd of 2
02
1.
We con
tinu
e to col
lec
t info
rmati
on to su
pp
or
t the m
onito
ring o
f the
se ri
sks an
d deve
lop m
itig
atio
n res
pon
se
s as re
quire
d.
Wit
h overs
ight f
rom ou
r Ris
k and A
ss
uran
ce an
d Co
rpo
rate Re
sp
ons
ibi
lit
y team
s, ou
r as
se
ss
men
t of tran
siti
on ri
sks are
con
tinual
ly reviewe
d by relev
ant tea
ms a
cros
s IH
G. O
ur phys
ica
l ris
k as
se
ssm
ent w
ill b
e review
ed eve
ry t
hree ye
ar
s,
or mo
re fre
que
ntly if r
equ
ired
.
Se
e the C
lim
ate
-re
late
d ris
k man
age
me
nt and s
trate
gy s
ect
ion o
n pag
e 34
.
c.
Describe ho
w processes
for
ide
ntif
yi
ng, a
ss
es
sing a
nd
man
agi
ng cli
mate
-
rela
ted ri
sks ar
e
inte
grate
d into th
e orga
nis
atio
n’s
over
all
risk ma
nagement.
We con
sid
er c
lima
te cha
nge w
ithin t
he co
ntex
t of env
ironm
ent
al an
d so
cia
l meg
atre
nds a
s on
e of our p
rinc
ipa
l ris
ks.
As p
ar
t of our 2
02
1 revie
w of pri
nci
pal ri
sks w
ith the B
oa
rd, we al
so de
sc
rib
ed h
ow clim
ate ch
ang
e pote
ntia
lly im
pac
ts
othe
r exis
tin
g prin
cip
al ris
ks an
d are em
be
ddin
g cli
mate ch
ang
e res
ilie
nc
e into exi
stin
g ‘bu
sin
es
s as us
ual
’ pro
ce
ss
es
.
For mo
re info
rmati
on on I
H
G gover
nan
ce an
d man
ag
eme
nt of p
rinc
ipal r
isk
s, se
e pa
ges 4
0 to 47
.
Me
tric
s an
d ta
rge
ts
– Th
e met
ric
s and t
arge
ts us
ed to a
ss
es
s an
d man
age re
leva
nt cli
mate
-re
late
d ri
sks an
d opp
or
tun
itie
s.
a.
Di
scl
os
e the m
etric
s us
ed by th
e
org
anis
atio
n to as
se
ss c
lima
te-
rel
ated ri
sks a
nd op
po
rtu
niti
es
in lin
e with i
ts st
rateg
y and r
isk
management
process.
On
e of our s
trate
gic p
rio
ritie
s is to ‘care fo
r our p
eo
pl
e, co
mmun
itie
s and p
lan
et
’ and to g
uid
e our a
ctio
ns an
d drive
pro
gres
s, in 2
02
1 we la
unc
hed J
ou
rney to Tomorro
w, an actio
n pla
n of co
mmi
tme
nts we’ve m
ade to c
reat
e pos
itive c
han
ge
by 20
30. As p
ar
t of thi
s ac
tion p
lan
, we have se
t our
se
lves a
n ambi
tiou
s SB
T
, a
lign
ed to 1
.5°
C, whi
ch is d
rivi
ng ac
tion a
cros
s
the
busin
es
s. M
ore d
etai
l on ou
r SBT i
s inc
lud
ed in t
he str
ateg
ic miti
gati
ons i
n our cl
imate
-
rel
ated r
isks t
ab
le pa
ge 3
4.
Ene
rgy re
duc
tion t
arg
ets a
re inc
orp
orate
d into h
otel
-l
evel m
etric
s, a
s well a
s at the E
xe
cuti
ve Co
mmit
te
e. ES
G
crite
ria
, incl
udi
ng ann
ual e
ne
rgy red
uct
ion, fo
rm pa
rt o
f the A
nnua
l Per
for
man
ce Pl
an (A
PP) stru
ctu
re for E
xec
utive
Dire
cto
rs an
d eli
gibl
e emp
loye
es
. Thi
s form
s par
t of a ra
nge o
f KPI
s an
d review o
f pe
rfo
rma
nce a
gai
nst I
HG
’s Glo
bal
Me
tric
s. We have c
onti
nue
d our wo
rk thi
s year to d
evel
op ES
G met
ric
s with a vi
ew to in
cor
por
ating i
nto our l
ong
-te
rm
inc
enti
ve pla
n and c
onti
nue to d
evel
op the q
ual
ity o
f our e
nviro
nme
ntal d
ata i
n orde
r to en
abl
e this
. Se
e mo
re on ou
r
met
rics o
n pa
ge 3
5.
b.
D
is
clo
se s
cop
e 1, s
cop
e 2,
and
, if app
rop
riate, s
co
pe 3
gre
en
ho
us
e g
as (G
H
G)
emi
ss
ion
s, an
d the re
late
d ris
ks.
Our 2
01
920
21 s
co
pe 1, 2 a
nd 3 em
is
sio
ns dat
a an
d meth
od
olo
gy c
an be fo
und o
n pa
ges 2
2
9 and 2
30. We h
ave
dis
clo
se
d the c
ate
gori
es of s
co
pe 3 e
mis
sio
ns
, whic
h are cov
ere
d by our 1.
5°C a
lign
ed S
BT.
c.
D
e
scr
ibe th
e ta
rget
s use
d by the
org
anis
atio
n to man
ag
e clim
ate
-
rel
ated ri
sks a
nd op
po
rtu
niti
es
and performance aga
inst tar
gets.
Our e
xist
ing t
arge
ts have b
ee
n app
roved by t
he Sc
ien
ce B
as
ed Target
s initi
ative (S
BTi
) as 1.
5°C a
lign
ed a
nd we are
als
o aimi
ng for o
ur ne
w-b
uil
d hote
ls to op
era
te at ver
y low o
r zero c
arb
on by 20
30
. Our s
co
pe 1, 2 an
d 3 em
iss
ion
s
dat
a will p
rovid
e us wi
th an on
goi
ng und
er
st
andi
ng of h
ow we are pro
gre
ss
ing o
n our de
c
arbo
nis
ati
on jou
rney.
Management
ownership
of
clima
te-rela
ted
risk
s a
nd opport
unit
ies
Op
eratio
nal ma
tter
s, routin
e bus
ines
s and i
nformati
on dis
clo
sure
proc
edu
res are de
leg
ated by the B
oa
rd to Mana
gem
ent C
ommit
tee
s.
Our inte
rnal TCF
D Ste
ering G
roup is re
spo
nsib
le for d
eliver
ing on th
e
TCFD re
comm
end
ation
s and id
entif
yin
g and as
se
ss
ing any pote
ntially
materi
al clim
ate impa
cts an
d during 2
02
1 it met fo
ur time
s. Th
e Chie
f
Sustainabili
ty Oicer is responsible for
monit
oring
progress aga
inst
our c
arbo
n redu
ction t
arget
, which i
s repo
rte
d exte
rnally o
n an
annual basis.
A TCFD Work
ing Gro
up has ove
rse
en an inte
grated c
limate s
cen
ario
anal
ysis for I
HG
’s global b
usin
es
s. Th
is Grou
p, with oversi
ght from
the Ste
erin
g Group, will c
ontin
ue to ope
rate throug
h 202
2 to drive
ado
ption of TC
FD
-re
lated a
ction p
lans a
cros
s the bu
sine
ss
. The TC
FD
Working G
roup re
gularl
y repo
rt
s into the TCFD S
tee
ring Gro
up and
als
o provide
s pe
riodi
c upd
ates on it
s key indin
gs from th
e sce
nari
o
anal
ysis an
d clim
ate-
risk i
denti
ic
ation p
roce
ss
. Se
e the foll
owing
se
ction fo
r more de
tail
s of our sc
en
ario ana
lysis p
roc
es
s.
S
ee fu
rth
er in
form
atio
n abo
ut Di
rec
tor deve
lo
pme
nt on p
age 9
4, a
nd
Audi
t, Re
sp
ons
ibl
e Bu
sin
es
s and Re
mun
era
tion C
om
mit
tee Re
po
rt
s
on p
age
s 95 to 1
01, a
nd 10
4 to 125
.
33
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
De
liverin
g on the re
com
men
dation
s of TCFD
D
e
li
ve
rin
g
o
n
th
e
r
e
commendat
ions of T
C
FD
c
onti
nu
e
d
The m
ost p
otentia
lly materi
al clim
ate-
rela
ted ris
ks and op
por
tuni
ties we id
enti
ie
d through s
ce
nario a
nalys
is, as we
ll as th
e mitigatio
ns se
t
out in o
ur acti
on pla
n, are de
scrib
ed in th
e tab
le be
low. As we contin
ue to gathe
r more d
ata to en
able u
s to unde
rst
and th
e impa
ct on I
HG,
we will al
so as
se
ss the a
ggre
gate impa
ct of th
ese o
n our wi
der s
takeho
lde
rs, in
cludin
g our ho
tel owne
rs.
Clima
te-rela
ted r
isks
Su
mm
ar
y of ris
k
Impact
Mitigation and strate
gy resilienc
e
Abi
lit
y to me
et
stakeholder
expectations
around
IH
G’s role i
n the
energy
transi
tion
Med
ium-te
rm
(1015
years
)
Potentially
materia
l impact
Wit
h clim
ate ch
ang
e bei
ng th
e bigg
es
t thre
at fac
ing
hum
anit
y
, we all h
ave a sig
ni
ic
ant an
d imm
edi
ate
role to p
lay in c
urbi
ng glo
ba
l car
bon e
mis
si
ons a
nd
keep
ing te
mp
eratu
re ris
e with
in 1.
5°C ab
ove
pre-indust
rial
lev
els.
Ke
y stak
eholders – i
ncluding
guests, in
vestors
and g
overn
men
ts – are i
ncre
as
ingl
y loo
kin
g for
bu
sine
s
ses to n
ot on
ly se
t the rig
ht go
als
, but al
so
demonstrat
e their
commitmen
t in
the act
ions the
y
take to
day.
We rec
ogn
ise th
at no
t del
iveri
ng on i
ncre
as
ed
st
akeho
ld
er exp
ec
tati
ons c
oul
d res
ult in a
rep
uta
tion
al ris
k for th
e Gro
up, es
pe
cia
lly in a
sc
ena
rio wh
ere o
ur pe
er
s me
et or exc
ee
d our o
wn
decarbonisation pla
ns. Continuo
us progr
ess against
our t
arge
ts c
an cre
ate si
gni
ic
ant o
pe
ratio
nal a
nd
commercial
opportunities.
We have not q
uan
ti
ied t
his im
pac
t, b
ut we are
monitor
ing it
alongside
wider reputa
tional
risks.
Be
ing a re
sp
ons
ibl
e bu
sine
s
s is at th
e hea
rt o
f IH
G’s str
ateg
y and
inc
lud
es a s
trong fo
cu
s on re
duci
ng th
e car
bon fo
otp
rint of o
pe
ratio
ns,
as we
ll as th
os
e of our f
ranc
his
ee
s.
We have up
gra
de
d ou
r em
is
sio
ns r
edu
ct
ion t
arg
et to a
lig
n to 1.
5°C,
an
d are p
rog
re
ss
ing d
ec
arb
on
is
atio
n pl
an
s acr
os
s th
e es
tate
Our t
arg
et is to re
duc
e em
iss
ion
s from o
ur ma
nag
ed
, owne
d, le
as
ed
and m
ana
ge
d le
ase h
otel
s by 46
% by 20
30, fro
m a 20
19 ba
se
line
, and
to do th
e sam
e with e
mis
si
ons f
rom ou
r fran
chi
se
d hotel
s, wh
ich p
uts
us on a t
raje
cto
ry to a
chie
ve net-zero em
iss
ion
s by 20
50. I
n 202
2, w
e
will u
pda
te our tr
ans
itio
n risk a
ss
es
sm
ent to a
lign wi
th thi
s new t
arge
t.
The
se a
re cha
lle
ngin
g ta
rget
s give
n IH
G’s pre
dom
inan
tly fra
nch
ise
d
bu
sine
s
s mod
el an
d amb
itio
us grow
th s
trate
gie
s.
We are d
evel
opi
ng a G
rou
p-w
id
e cli
mate t
ran
si
tio
n pla
n
Thi
s will h
elp u
s ens
ure we m
eet s
ta
keho
lde
r expe
ct
atio
ns aro
und t
he
tran
siti
on an
d del
iver o
n our ow
n amb
itio
us ta
rget
s on c
arb
on re
duc
tion
.
Ove
r the n
ext 12 m
onth
s, we w
ill be d
evel
opi
ng a de
tail
ed c
lim
ate
tran
siti
on pl
an, in l
ine w
ith rec
ent s
upp
le
men
tar
y gu
ida
nce a
nno
unc
ed
by the TC
FD. Thi
s pla
n will c
oo
rdin
ate a ran
ge of d
ec
arb
onis
ati
on
init
iative
s on
goin
g acro
ss o
ur bu
sin
es
s and f
ocu
se
s on thre
e key leve
rs:
driv
ing e
nerg
y e
ici
enc
y in our ex
ist
ing e
sta
te; fac
ilit
atin
g a shi
ft to
ren
ewab
le en
ergy w
he
rever p
os
sib
le; an
d ta
rgeti
ng 10
0% o
f new-
bu
ild
hote
ls to op
er
ate at ver
y lo
w or zero c
arb
on by 2
03
0.
S
ee ou
r pla
net s
ec
tion o
n pa
ges 2
9 to 31 to l
ear
n more a
bo
ut our
work
on decarbonisation.
Reducti
on in aviation
passenger nu
mbers
expected
to
impact
hotel
demand
me
diu
m to lo
ng
-ter
m
(10

30 ye
ar
s)
Potentially
materia
l impact
T
oday
’s aviati
on trave
l, in p
ar
ticu
lar in
tern
ation
al
travel
, has a s
igni
i
can
t car
bon fo
otp
rint. U
nd
er a 2
°C
sc
ena
rio, avi
atio
n travel c
oul
d redu
ce s
igni
i
can
tly
as trave
l pat
te
rns al
ign to a low
-
car
bon e
co
no
my
.
Thi
s cou
ld p
otenti
ally re
du
ce th
e abil
it
y of gue
st
s
to vis
it ou
r hote
ls.
Give
n our d
iver
se p
or
tf
olio o
f hote
ls ca
terin
g to bot
h dom
es
tic an
d
inte
rnati
ona
l travel
ler
s, su
ch a sh
if
t in trave
l pat
tern
s co
uld p
rovid
e
bot
h down
sid
es an
d up
sid
es to ou
r bus
ine
ss
, if for ex
amp
le, mo
re
gue
st
s opt to tr
avel do
me
stic
all
y utili
sin
g gree
ne
r tran
sp
or
t mod
es
such as high-
spee
d trains in China.
We are i
mpr
ovin
g dat
a co
lle
cti
on to u
nde
rs
ta
nd ou
r cu
sto
me
rs’
tra
vel
patt
erns
The i
mpa
ct o
n travel i
s bei
ng cl
os
ely m
onito
red p
os
t Cov
id
-19.
T
o ena
ble u
s to ca
lcul
ate th
e pote
ntial i
mpa
ct of t
his s
hif
t in trave
l on
our d
ie
rent re
gio
ns an
d bran
ds, w
e are pl
anni
ng ch
ang
es to o
ur gue
st
sur
vey to c
oll
ate fur
the
r dat
a on th
e mo
de
s of tran
sp
or
t us
ed.
Clima
te-rela
ted r
isk management a
nd str
at
egy
We cons
ide
r clima
te chang
e within th
e contex
t of enviro
nme
ntal
and s
oci
al meg
atrend
s as on
e of our p
rincip
al ris
ks. Du
ring 20
21,
we unde
r
took s
cen
ario an
alysi
s work to as
ses
s in mo
re det
ail IH
G’s
pote
ntial expo
sure to bo
th physic
al and tra
nsiti
on imp
act over th
e
sho
rt
, med
ium and l
ong
-term. We s
ele
cted 2
°
C and 4°
C sc
ena
rios
to mod
el a high p
hysica
l impa
ct sc
ena
rio and o
ne with gre
ater
trans
ition im
pac
ts. T
his was al
igne
d with the 2
°
C align
ed S
BT that we
had s
et. In 2
02
1, we upgr
ade
d to a 1.5°
C aligne
d SB
T and the
refore
intend to ref
resh o
ur sc
enari
o analy
sis in 20
2
2 to align to this n
ewly
revise
d ta
rget.
Our a
nalys
is covere
d our fu
ll value c
hain an
d inclu
de
d acute an
d
chroni
c physic
al ris
ks, incl
uding d
roughts o
r lo
od
s, water stre
ss
,
wild
ire
s and ri
sing s
ea leve
ls, as we
ll as tran
sitio
n risks, s
uch a
s
cha
nges i
n sta
kehold
er exp
ect
ation
s, travel pat
tern
s, clim
ate pol
icy
and re
gulatio
n. Physic
al ris
ks were as
se
ss
ed us
ing the
Intergove
rnme
ntal Pa
nel o
n Clim
ate Chan
ge’s (IPC
C’s) 2°
C-
and
4°C
-
align
ed Rep
res
entati
ve Con
centr
ation Pathways (RC
Ps) 4.
5
and 8
.5 res
pe
ctivel
y
. We inte
grated I
HG
’s busine
ss p
lan as
sum
ption
s
on reg
ional g
rowth i
nto the sc
enari
o analy
sis pro
ce
ss, to e
nsure
risk a
nd opp
or
tunit
y qua
nti
icatio
ns re
le
cted I
HG
’s growth strate
gy
.
The ri
sks were th
en as
se
ss
ed us
ing de
in
ed m
ateriali
ty thre
sho
lds
alon
g with revenu
e esti
mates fro
m the bu
sine
ss p
lan ac
ross
timef
rame
s. In th
e climate
-
relate
d risks t
abl
e (be
low) we outline o
ur
mitiga
tion and s
trateg
y resili
enc
e, bas
ed o
n the sc
ena
rio anal
ysis
.
We have beg
un to quantif
y th
ese c
limate
-re
lated i
mpac
ts, b
ase
d on
glob
al emi
ss
ions an
d clim
ate mod
ellin
g data, a
s well as i
nput
s from
IH
G’s busi
nes
s pla
nning an
d risk m
ana
gem
ent pro
ces
se
s. In 2
02
2,
we will b
e advanc
ing thi
s work by enh
ancin
g the qua
lity o
f data
cap
ture on tho
se ris
ks that have b
een i
denti
ie
d as mo
st ma
terial
and p
rovide fur
the
r quanti
ic
atio
n of the po
tential im
pac
ts.
Strate
gic Re
po
rt
34
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Su
mm
ar
y of ris
k
Impact
Mitigation and strate
gy resilienc
e
Increased desire
for
‘gree
n ho
tel
s’ co
uld
have a m
ater
ial i
mpa
ct
on IH
G reve
nu
es
Me
diu
m to lo
ng
-ter
m
(10

30 ye
ar
s)
Potentially
materia
l impact
Gre
en h
otel
s will p
lay an im
po
rt
ant p
ar
t of our f
uture
und
er al
l sc
ena
rios
. Att
itud
es an
d be
lie
fs aro
und
clim
ate ch
ang
e have c
hang
ed s
igni
i
ca
ntly
, with 6
0%
of 9,0
00 a
dult
s sur
veye
d by IH
G acro
ss t
he US
, U
K,
Ge
rma
ny
, G
reat
er Ch
ina, t
he UAE a
nd Aus
tral
ia
agre
ei
ng tha
t they wan
t to be mo
re envi
ronm
ent
ally
and s
oc
iall
y con
sc
iou
s on th
eir trave
ls
.
The c
han
ge
s in the
se a
tti
tude
s an
d bel
ief
s have st
ar
ted
to now im
pac
t co
nsu
me
r beh
avio
ur
, both f
or bu
sin
es
s
and l
eis
ure trave
l, as g
ree
n cred
ent
ials a
re fac
torin
g
into cu
sto
mer
s’ bu
ying d
ec
isi
ons
. We rec
ogn
ise t
hat
the
se c
han
ging c
on
sum
er be
havi
our
s oe
r both a
n
opp
or
tun
it
y and a ri
sk fo
r IH
G, dep
en
ding o
n how
fas
t the gr
een h
otel m
arket ex
pan
ds an
d how m
uch
of thi
s new m
arket we c
aptu
re sha
re of. Und
er a 2
°C
sc
ena
rio, we d
o expe
ct a s
igni
ic
ant i
mpa
ct ove
r time
– eith
er a ri
sk o
r opp
or
tuni
ty d
ep
end
ing o
n our ab
ilit
y
to demonst
rate
our g
reen cr
edentials.
We have deve
lo
pe
d a be
sp
oke too
l to hel
p our h
otel
s ide
ntif
y an
d
pri
oriti
se e
nerg
y e
ici
enc
y sol
utio
ns b
ase
d on key b
uildi
ng ch
ara
cter
isti
cs
,
inc
ludi
ng retu
rn on inve
stm
ent i
nform
atio
n and p
roc
urem
ent s
upp
or
t
as fe
asi
ble
. Ca
lle
d the H
otel E
nerg
y Red
uct
ion O
pp
or
tunit
ies Tool
(HE
RO Tool), i
t will h
elp e
nha
nce th
e hote
l’s env
ironm
ent
al cr
ede
ntia
ls.
In th
e UK
, all o
ur ma
nag
ed l
ea
se ho
tels a
re now o
n rene
wabl
e en
ergy
contracts
, and
we ha
ve
started activ
ely pr
omoti
ng r
enewable
energy
so
lutio
ns to ow
ner
s in key mar
kets
.
We are i
mpr
ovin
g dat
a co
lle
cti
on to u
nde
rs
ta
nd c
ons
um
er
sentim
ent towards greene
r trav
el
Give
n the p
ote
ntial m
ater
iali
ty of t
his exp
os
ure, we a
re work
ing to
leve
rag
e exis
ting c
ons
ume
r se
ntim
ent d
ata in t
his are
a, su
ch a
s a
so
cia
l mon
itorin
g pl
atfo
rm to gat
her d
ata f
rom gu
es
ts’ s
oci
al po
st
s
(soc
ial m
edi
a, revi
ew site
s) and d
evelo
pin
g a meth
od
olo
gy to g
athe
r
,
trac
k and m
ea
sure th
e imp
ac
t of ac
tual (rath
er th
an cl
aim
ed
)
guest behaviour.
Lo
ss of f
ran
chi
se
royalt
y fe
es fo
llow
ing
natural dis
asters
Long t
erm
(1530 y
e
ars)
Potentially minor imp
act
Un
der b
oth a 2
°
C and 4°
C sc
en
ario, th
e fre
que
ncy of
natu
ral di
sa
ster
s is exp
ec
ted to c
ont
inue to i
ncre
as
e
up to 20
50 a
nd beyo
nd.
The r
esu
lting b
us
ine
ss in
terru
ptio
n red
uce
s the
amo
unt of f
ranc
his
e royalt
y fee
s we wi
ll rec
eive f
rom
the s
pe
ci
ic h
otel
s impa
cte
d, how
ever thi
s do
es no
t
take in
to acc
ou
nt the p
otent
ial fo
r incre
as
ed d
em
and
from a
ny ongo
ing re
cove
r
y eo
rt
s.
We are t
rac
kin
g phys
ic
al cl
ima
te imp
ac
ts a
cro
ss o
ur p
or
tfo
lio
We have pre
viou
sly a
ss
es
se
d the p
hysic
al ri
sks o
f clim
ate eve
nts on
our h
otel
s, an
d we are now u
pgr
adin
g syst
ems to tr
ack t
he phys
ic
al
imp
act
s of cl
imate c
han
ge ac
ros
s our p
or
t
foli
o and h
ow muc
h add
itio
nal
bu
sine
s
s is dri
ven into o
ur hote
ls fro
m rec
over
y e
or
ts
. Thi
s will a
llow
us to ad
apt to th
es
e ha
zar
ds mo
re ee
cti
vely a
nd as
se
ss t
he imp
ac
t
on ou
r bus
ine
ss a
nd ow
ner
s.
Som
e of the p
otential
ly materi
al clim
ate-
relate
d ris
ks we have identi
i
ed co
uld al
so pre
sent o
ppo
r
tunitie
s to IHG, wh
ich are sh
own in the
tab
le be
low. Our co
ntinue
d progre
ss a
gains
t our d
eca
rbon
isati
on ta
rgets an
d strate
gic res
pon
se pl
annin
g will stren
gthe
n our abi
lity to
reali
se the
se p
otential o
ppo
rtu
nitie
s.
Clima
te-re
lated op
portu
nities
Summary of opportuni
ty
Actions being
t
aken
Supporting hot
el
own
ers t
o me
et ne
w
customer
demand
for
sustainable trav
e
l
We have co
mm
itt
ed to d
eli
ver n
ew-b
uil
d hot
el
s tha
t op
era
te at ver
y low o
r ze
ro ca
rbo
n by 203
0
We rec
ogn
ise o
ur cu
stom
er
s are inc
rea
sin
gly exp
ec
ting h
igh s
tan
dard
s of su
st
aina
bili
ty in t
hei
r lei
sure a
nd trave
l purc
has
es
.
Our c
om
mitm
ent to d
elive
r new
-b
uild h
otel
s that o
pe
rate at ve
ry l
ow or ze
ro ca
rbo
n sig
nal
s our int
ent to fu
rth
er h
elp o
ur hote
l
own
ers m
ee
t pote
ntial f
uture d
em
and fo
r gree
n trave
l, and to i
mprove o
ur co
mp
etiti
ve po
sitio
n over
all. T
his wi
ll be s
upp
or
ted
by enh
anc
ed e
ng
age
me
nt with c
usto
me
rs an
d dat
a reg
ardin
g cus
tome
r de
man
d to he
lp us de
live
r on c
usto
mer p
rio
ritie
s for
sust
ainability an
d climate.
Supporting ho
tel o
wners
to decarbonise
their
assets coul
d incr
ease
comm
ercial attra
ctivenes
s
We are c
ont
inu
ing to i
nves
t in ways to s
up
por
t h
otel
s be
co
me m
ore e
ne
rgy e
i
cie
nt an
d de
ca
rbo
ni
se a
ss
ets
Whil
e red
uci
ng em
iss
ion
s ca
n req
uire inve
stm
ent
, we are leve
rag
ing o
ur Gre
en E
nga
ge sys
tem to e
nsu
re we inves
t in en
erg
y
e
ici
enc
y impro
veme
nts th
at have t
he gre
ates
t pote
ntia
l to red
uce c
os
ts ove
r the lo
ng
-ter
m. Thi
s will b
e su
ppo
r
ted by ou
r
HE
RO too
l, fur
th
er de
tail
s of wh
ich ar
e availa
ble i
n our 20
2
1 Res
po
nsib
le B
usi
ne
ss Re
po
rt (se
e lin
k be
low).
Increased domestic
tou
ris
m drive
n by
changes in long-haul
tra
vel
patt
erns
We are i
mpr
ovin
g dat
a co
lle
cti
on to u
nde
rs
ta
nd ou
r cu
sto
me
rs’ p
refe
ren
ce
s on s
us
ta
ina
bil
ity
Ch
angi
ng trave
l pat
ter
ns rep
res
ent b
oth a p
otenti
al ri
sk an
d opp
or
tun
ity to o
ur bu
sin
es
s. We have a l
arge d
om
est
ic cu
stom
er
ba
se, an
d the
re may b
e a fur
the
r po
siti
ve imp
act to t
his m
arket dri
ven by fu
ture ch
ang
es to tr
avel pa
tte
rns, a
s so
me cu
sto
mer
s
move to s
hor
ter-h
aul an
d le
ss c
arb
on inte
ns
ive mo
de
s of trave
l. Ga
ther
ing fu
rt
her d
ata w
ill he
lp us u
nde
rs
tan
d this t
rend f
ur
the
r
and e
ns
ure we c
an me
et th
e nee
ds o
f any cha
ngi
ng cu
stom
er b
ase
.
Metrics
and targets
Our m
etric
s and t
argets a
llow us to mo
nitor the d
elive
ry of o
ur strate
gy
and lo
ng-
term su
cce
ss
. T
o e
nsure o
ur trans
ition i
s bas
ed o
n the be
st
availab
le sci
enc
e, we have now up
grade
d our s
cie
nce
-
bas
ed t
arget
(SBT
) to align to the m
ost a
mbitio
us ta
rget of the P
aris Agre
eme
nt to
limit gl
obal wa
rming to 1.
5°C. T
his t
arget ha
s be
en ap
proved by SB
Ti
and c
ommit
s us to red
ucing o
ur abs
olute c
arb
on footp
rint by 46
%
from our f
ranch
ise
d, man
age
d, owne
d, lea
se
d and m
anag
ed le
as
e
hotel
s by 203
0 (ba
se
d on our 2
019 c
arbo
n footp
rint).
S
ee ou
r car
bo
n footp
rint K
PI on p
ag
e 53
.
A core p
ar
t of del
ivering f
urth
er em
iss
ion
s reduc
tion
s again
st this
targ
et will be d
ec
arbo
nisi
ng our ho
tel op
eratio
ns acro
ss ou
r por
t
folio.
T
o h
elp drive th
is, we are al
so ta
rgeting 1
00
% of new-
buil
d hotel
s to
ope
rate at ver
y low or z
ero car
bon by 20
30 o
nwards.
We continu
e to track gl
obal e
nvironm
enta
l impa
cts thro
ugh our
IH
G Gre
en Eng
age sys
tem. All I
HG h
otels a
re require
d to use thi
s
system to tra
ck the
ir environ
ment
al imp
act, w
ith dat
a coll
ecte
d
on be
nch
marki
ng inform
ation, gre
en b
uildin
g solu
tions a
nd
opp
or
tunitie
s to improve e
ici
ency a
cros
s carb
on, e
nergy, water
and wa
ste metri
cs. D
ata fro
m this sys
tem will c
ontinue to un
derp
in
our ES
G and cl
imate met
rics an
d will he
lp us id
entif
y op
por
tuni
ties
for inves
tment a
s par
t of our w
ide
r climate tra
nsiti
on pla
n. We will
work with o
ur intern
al audi
t team an
d extern
al sp
eci
alist
s to provide
assurance ov
er this
data.
As we fur
the
r devel
op our 
inan
cial im
pac
t as
ses
sm
ent of cli
mate
-
relate
d risks a
nd op
por
tuniti
es, thi
s will inform t
he devel
opm
ent
of any
additional metrics and targets around the manageme
nt and
mitiga
tion of ris
ks and th
e streng
theni
ng of IH
G’s bus
ine
ss res
ilien
ce
against clim
ate-rel
ated impacts
.
Our R
es
pon
sib
le B
usi
nes
s Re
por
t a
nd ES
G Dat
abo
ok a
re availa
ble a
t
www.ihgplc.
com/
responsible-business
35
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
De
liverin
g on the re
com
men
dation
s of TCFD
Ho
w IHG does bus
i
ness
A
num
be
r of lin
ked fa
ctor
s imp
act
IHG’
s long-ter
m success, including
the resil
ience of
our business model,
our p
urp
os
e, an
d the e
ffe
ctive
ne
ss of
our s
trate
gy. Unde
rpin
nin
g all of t
he
se is
our wo
rkpl
ac
e cul
ture, w
hic
h is drive
n by
our r
epu
tati
on a
s a well
-g
overne
d, tru
ste
d
and ethical
company
.
Key factors th
at drive ou
r over
-arch
ing
culture an
d app
roach to b
usin
es
s inclu
de
our str
ucture an
d govern
anc
e, risk ap
petite,
contr
ols and s
ystems,
workplace en
vironment,
be
haviour
s, C
ode of C
on
duct
, incl
uding o
ur
value
s and re
lated p
olic
ies, a
ll of whic
h shou
ld
be re
ad in co
njunc
tion with o
ur strate
gy
, r
isk
man
age
ment
, KPI
s and G
overnan
ce s
ectio
ns
in this Re
por
t.
Ou
r stru
ctu
re and g
overna
nc
e
IH
G’s Boa
rd has overa
ll resp
ons
ibilit
y for
ens
uring th
at the way we work an
d our cul
ture
are align
ed wi
th our pur
pos
e and dri
ve our
strate
gy
. At e
ach m
eeti
ng, the B
oard an
d
its C
ommi
tte
es review m
etric
s, rep
or
ts and
sc
orec
ards, an
d rec
eive pre
sent
ation
s on
key busin
es
s factor
s, inc
ludin
g in relatio
n to
culture an
d govern
anc
e. They c
halle
nge an
d
supp
or
t Se
nior Le
ad
ers, p
ar
ticula
rly whe
re
there i
s a nee
d to ada
pt pol
icie
s and ini
tiatives
,
ens
uring th
e contin
ued a
lignme
nt of strate
gy
and cu
lture.
The Board delega
tes da
y-t
o-
day
resp
on
sibilit
y for s
etti
ng and e
mbe
ddin
g
Co
mpany cul
ture to the CEO wh
o, togethe
r
with the E
xec
utive C
ommit
tee, l
ead
s from
the front a
nd role m
ode
ls at
titude
s and
be
haviour
s to create an o
pen a
nd ho
nes
t
wor
kplace en
vir
onment, empo
weri
ng
emp
loyees to gi
ve fee
dbac
k and fre
ely as
k
que
stion
s abo
ut mat
ters th
at co
nce
rn them,
suc
h as durin
g the C
EO’
s quar
terl
y
, glo
bal
all-
e
mployee c
alls
. The E
xec
utive C
ommit
tee
is res
pon
sibl
e for execu
ting the G
roup’s
strate
gy
, an
d keep
ing the B
oard info
rme
d
of the o
perati
on of the b
usin
es
s and
workp
lac
e culture.
IH
G’s hotel deve
lop
ment an
d op
eration
s
are orga
nise
d on a reg
iona
l bas
is (Ame
ric
as,
EME
A
A an
d Gre
ater Chi
na) and are sup
por
ted
by glob
al func
tion
s in the key areas o
f
Mar
keting, Co
mme
rcial & T
ech
nolo
gy
,
Fin
ance, H
uman R
eso
urce
s, Co
rpor
ate Aairs
,
and B
usin
es
s Repu
tatio
n and Re
spo
nsib
ilit
y
.
Man
age
ment o
f the regi
onal a
nd glo
bal
team
s is orga
nise
d into le
ade
rship te
ams
,
who are re
spo
nsib
le for exec
uting o
n IH
G’s
strate
gic prio
ritie
s in a mann
er that a
ligns
with the G
roup’s culture and va
lues
.
De
cis
ions o
n hotel d
evelop
ment
s and c
apit
al
expe
nditure g
o through th
e appro
priate de
al
app
roval and exp
enditu
re comm
itte
es
.
Our pu
rpose o
f pr
ov
idi
ng T
rue Hosp
it
ali
t
y
f
or Good is un
der
pinned b
y our comm
it
men
t
t
o a cu
lt
ur
e o
f oper
at
ing i
n a r
espons
ib
le an
d
et
hica
l manner
. Our cu
lt
ur
e sets t
he t
one f
or
how w
e do business.
Stak
eholder
engagemen
t
IH
G eng
age
s with its s
takeh
old
ers at all l
evels of th
e bus
ine
ss, fro
m the Bo
ard,
through t
he E
xecutive C
omm
itte
e, Se
nior Le
ade
rshi
p and c
orpo
rate func
tions
,
to front-line o
pera
tions
. A variet
y of me
thod
s are use
d ba
sed o
n expe
rien
ce
and d
evelop
ing be
st pr
actic
e, incl
uding f
ace
-to
-fa
ce me
eting
s, fee
dba
ck and
pe
rfor
manc
e reviews
, empl
oyee forum
s and trai
ning. We adju
st ou
r enga
gem
ent
meth
ods a
s require
d to ens
ure they rem
ain ee
ctive for b
oth our s
takeh
old
ers
and I
HG. For exam
ple, a
doptin
g glob
al CEO vi
deo c
alls w
ith Q&
A ha
s ensu
red
emp
loyees a
re kept informe
d and h
ave an opp
or
tunit
y to rais
e topic
s that
mat
ter to the
m.
The e
ec
tivene
ss o
f our en
gage
men
t metho
ds is m
eas
ured th
rough a ran
ge of
metric
s, in
cludi
ng our K
PIs (suc
h as sig
nings an
d pip
elin
e), per
forman
ce, ab
ility
to attra
ct and re
tain t
alent
, emp
loyee en
gage
me
nt sur
vey result
s, adh
eren
ce
to the po
licie
s covere
d by our C
ode o
f Con
duc
t and AGM re
sult
s.
The v
iews and i
nteres
ts of othe
r st
akehol
der
s, suc
h as regu
lators a
nd indu
str
y
bo
dies
, are als
o taken into c
onsi
derati
on. Th
ey help p
rovide a fra
mework a
gain
st
whic
h we mea
sure our
sel
ves, prote
ct ou
r reput
ation an
d devel
op our c
omm
ercial
and social awareness
.
S
ee inf
orma
tion o
n our e
nga
ge
men
t with key st
akeh
old
er
s, ap
proa
ch to th
e pla
net o
n
pa
ges 2
0 to 39, 9
2, 10
1, 107, 108, 11
2114, and S
ec
tion 17
2 st
atem
ent on p
ag
es 9
0 and 9
1.
Stak
eholder
engagemen
t
Wor
kplace
env
iron
ment
Co
de of
Conduct
and
rela
ted
policies
Our
struct
ure
and
gover
nance
Val
u
e
s
Ris
k app
etite,
contr
ols and
syste
ms
Approach t
o
communit
y
and the
planet
B
eh
avio
ur
s
How
we
do business
Strate
gic Re
po
rt
36
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
The G
roup op
erate
s a Glo
bal D
ele
gatio
n
of Autho
rity P
olicy
, which s
ets o
ut i
nanc
ial
com
mitme
nt and exp
end
iture app
roval
contro
ls. C
ommitm
ents over c
er
tain
thres
hold
s or t
ype o
f propo
sa
l require
app
roval from the G
roup’s Capit
al
Co
mmit
tee, wh
ich rep
or
ts into the
Executive Committee.
The G
roup’s lega
l owner
ship s
tructure
comprises around
390 subsidiaries
worldw
ide. T
hes
e entiti
es provi
de the
leg
al fram
ework req
uired to su
ppo
rt
the G
roup in mak
ing in
dividu
al co
ntract
s
and c
ommitm
ents
.
In
form
ation o
n the B
oa
rd’s mo
nitor
ing an
d
as
se
ss
men
t of our c
ultu
re is inc
lud
ed o
n
pa
ge 91
.
Risk appetit
e, contr
ols and s
ystems
Our ri
sk app
etite an
d toler
ance i
s
conti
nually rev
iewed by th
e Boa
rd in its
purs
uit of st
rategic a
nd bus
ine
ss ob
jec
tives
.
While our
strat
egy does not consciously
expo
se any of our a
ss
ets to sig
ni
ican
tly
heig
htene
d risk
, the c
hoic
es we ma
ke aim
to bala
nce p
rioriti
es and re
so
urces to e
ither
active
ly expl
oit curre
nt advant
age
s or
addre
ss c
urrent di
sad
vantag
es ver
sus a
rang
e of com
petito
rs, an
d mee
t stakeh
old
er
expe
cta
tions
. The B
oard c
ons
ide
rs the
por
t
folio of ri
sks we fa
ce and w
hethe
r
our all
oc
ation of re
sourc
es an
d pac
e of
initiati
ves to buil
d enterp
rise c
apa
bilit
y
,
create
s any imba
lanc
e or exp
ose
s othe
r
risk a
reas a
s the ind
ustr
y em
erge
s from
the pa
nde
mic. O
ur risk ap
peti
te is ca
sca
de
d
through o
ur valu
es and b
eh
aviours
, our
goa
ls and t
arget
s, our C
od
e of Co
nduc
t,
De
leg
ation of Au
thorit
y and o
ther gl
obal
pol
icie
s, and i
s fur
ther re
inforce
d by
frequent
leadership commun
ications
to guide b
eh
aviours a
nd set p
riori
ties
.
We are comm
itte
d to a framewo
rk of
moni
toring an
d as
suranc
e pro
ces
se
s
in relati
on to our ini
tiatives a
nd po
licie
s,
reviewin
g wheth
er they h
ave opera
ted withi
n
acc
ept
abl
e risk tol
eran
ces w
here p
rioritie
s
have shif
te
d, or whe
re addi
tiona
l actio
ns
were req
uired. B
oa
rd and C
ommit
tee
age
nda top
ics a
llow the B
oard to id
entif
y
and di
scu
ss the n
ature and ex
tent of
princ
ipal (and e
mergi
ng) risks an
d how ris
k
managem
ent arrangements have adapted
whe
re req
uire
d.
S
ee O
ur ris
k man
age
me
nt on p
age
s 40 to 47
and G
over
nan
ce p
age
s 89 a
nd 9
6 to 97
.
Wor
kplace envi
ronment
The pandemic
has usher
ed in f
undamental
cha
nges to th
e workp
lac
e, inclu
ding hyb
rid
and re
mote worki
ng. We conti
nually revi
ew
our ways of wor
king as n
ew pra
ctis
es
eme
rge in lin
e with lo
cal re
stric
tions a
nd
workin
g culture
s. Alth
ough e
ach re
gion
has e
mbra
ce
d this di
erently
, with o
ic
es
at die
rent st
age
s of re
-o
pe
ning, wh
at
has e
merg
ed is a n
ew ty
pe of c
onne
ctiv
ity
bet
wee
n emp
loyee
s, in par
tic
ular with t
he
ado
ption of v
ide
o mee
tings, a fo
cus o
n
work-life bal
anc
e and wel
lbein
g, and a l
es
s
forma
l appro
ach. A
s an examp
le, the D
enh
am
he
ad o
ice in th
e UK h
as em
brac
ed a 
lexibl
e,
hot-d
esk
ing envi
ronme
nt, with E
xecu
tive
Committee members wor
king alon
gside
team m
emb
ers in a
n ope
n-
plan wo
rkspa
ce.
We are mindfu
l that as a re
sult of c
hang
es
in the wor
kpla
ce an
d incre
ase
d digit
alis
ation
,
we ne
ed to be v
igilant re
gardin
g the se
curit
y
of Co
mpa
ny informatio
n and dat
a. In 2
02
1,
we ran a se
ries o
f glob
al cybe
rs
ecuri
ty
teaching
sessions that included t
opics such
as phi
shin
g, keepi
ng inform
ation s
afe and
se
cure whil
st work
ing remo
tely
, s
oc
ial
engi
nee
ring, an
d se
curing a
nd safe
ly
trans
ferring d
ata. We al
so inc
reas
ed c
ontrol
s
aroun
d IH
G
-ap
proved too
ls an
d system
s,
and refre
sh
ed an
d relaun
che
d our s
ecuri
ty
pol
icie
s at the be
ginni
ng of 20
22
.
S
ee ou
r pe
opl
e dis
clo
sur
es on p
ag
es 23 to 2
6,
and key m
atte
rs di
sc
uss
ed by t
he B
oard
on p
age 9
1.
Our behaviours
Our M
ove fast
, Solu
tions fo
cus
ed, T
hink return
and B
uild on
e team b
ehavi
ours e
mpowe
r
and in
spire o
ur emp
loyees to wo
rk in a way
that
supports our pu
rpose and st
rat
egic
prio
rities
. The
se are un
derp
inne
d by our
Code of Conduct a
nd responsible
business
app
roach, a
nd tog
ether i
nlu
enc
e how
we interac
t with ou
r sta
kehold
ers
. By role
modelling o
ur behavi
ours, IHG’
s leaders
create a
n environm
ent that e
nc
ourag
es
rapid d
eci
sion m
akin
g that sup
po
rt
s our
grow
th asp
iration
s, within a fr
amewor
k
of due di
ligen
ce an
d ass
uranc
e pro
ces
se
s.
Empl
oyees h
ave shown c
ontinue
d
ada
ptabi
lity a
nd res
ilien
ce in the f
ace of
the pa
nde
mic, whil
e dem
ons
trating our
be
haviour
s. D
uring the ye
ar
, a s
erie
s of N
ext
T
a
lk events we
re led by E
xecu
tive Co
mmit
tee
mem
ber
s acro
ss the o
rganis
atio
n, to de
ep
e
n
unde
rst
and
ing of the li
nk bet
wee
n our
be
haviour
s and s
trategy. More than 2
,00
0
emp
loyees j
oine
d the se
ss
ion
s, with p
ositive
fee
dba
ck from the
m.
Co
de of C
on
duc
t an
d rel
ated p
oli
cie
s
IH
G’s Co
de of C
ondu
ct (Co
de) is the
frame
work for how we d
o bus
ines
s at IH
G,
and un
derp
ins ou
r strateg
y and c
ommitm
ent
to providin
g T
ru
e Hos
pit
alit
y for Go
od.
Our key prin
cipl
es an
d poli
cies a
re inclu
ded
in the C
od
e, which e
nab
les e
mploye
es and
colleagues wor
king in
IHG corporate
oices,
rese
r
vation c
entres, m
ana
ged, ow
ne
d,
lea
se
d, and m
anag
ed le
as
e hotel
s to make
the right d
eci
sion
s, in co
mpli
anc
e with the
law and IHG’s ethical standards.
Inc
lude
d in the C
od
e is an over
view o
f
our valu
es, re
por
ting c
on
cern
s framewo
rk
and G
roup po
licie
s, inc
ludin
g huma
n rights,
resp
ec
t in the work
pla
ce, dive
rsit
y
, equit
y
,
incl
usio
n and e
qual o
ppo
rtun
ities
, acc
urate
repo
rti
ng, inform
ation s
ecu
rity
, anti-
brib
er
y
and c
orrupti
on, and th
e environ
ment
. It als
o
provid
es gui
danc
e on wh
ere to go if c
olle
ague
s
have a con
ce
rn and ne
ed f
ur
ther h
elp.
The B
oard, E
xec
utive Co
mmit
tee an
d all
colleagues wor
king in
IHG corporate
oices,
rese
r
vation c
entres, m
ana
ged, ow
ne
d,
lea
se
d, and m
anag
ed le
as
e hotel
s must
com
ply with t
he Co
de. We exp
ect th
ose we
do business with
, including
our fr
anchisees,
to
uphold sim
ilar
principles
and standar
ds
.
The C
od
e is reviewe
d and a
pproved by th
e
Bo
ard on an an
nual b
asis
, and is s
upp
or
ted
by annual e-learning requirements
. In 2022,
we will co
ntinue to evol
ve our C
ode tra
ining,
engagement a
nd measuremen
t appr
oaches,
incl
uding d
evelop
ing an
d launc
hing a n
ew
37
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
How I
HG do
es b
usin
es
s
Ho
w IHG does busi
ness
c
o
ntin
u
e
d
Co
de e
-l
earni
ng mo
dule to sup
por
t an
d
provid
e additi
onal g
uidan
ce. I
n additi
on to
our C
ode e
-
lea
rning
s, we moni
tor and a
sse
ss
other a
sp
ect
s of our c
ulture throug
h a variet
y
of methods, in
cluding direct eng
ageme
nt,
emp
loyee en
gage
me
nt sur
veys, trac
king of
e
-le
arning c
omp
letio
n and ou
r con
id
ential
repo
rti
ng hotlin
e.
The fo
llowing p
olic
ies an
d prin
ciple
s
form so
me of th
e key areas of the C
od
e.
Oth
er are
as of the C
od
e, suc
h as our D
E&I
pol
icy
, an
d huma
n rights an
d mo
dern
slaver
y c
ommitm
ents
, are outlin
ed o
n
pag
es 25 a
nd 26. I
nitiative
s to resp
ond to
legal, regulatory and ethical comp
liance
risks a
re on pag
e 46
.
I
HG
’s Co
de of C
on
duc
t is avail
abl
e in
10 la
ngu
age
s on th
e Co
mpa
ny’s intr
ane
t and
www.ihgplc.
com/
responsible-business
Ou
r val
ue
s
Led by th
e Boa
rd and E
xecu
tive Com
mit
tee
and o
ur value
s unde
rpin o
ur be
haviour
s and
bus
ine
ss ethi
cs, gu
ide how we d
elive
r our
strate
gy
, m
ake deci
sion
s and li
ve our purp
os
e.
Spea
king up
Ce
ntral to our p
eop
le cul
ture is res
pe
ct
in the wor
kpla
ce, wh
ethe
r it be rel
ating to
a col
lea
gue, gu
est o
r anyone el
se. I
HG ha
s
zero
-tole
ranc
e to any form of dis
crimi
nation,
hara
ss
ment o
r bullyi
ng in line w
ith our
Res
pec
t in the Work
pla
ce Pol
icy
. W
hilst we
upho
ld our re
sp
ons
ibilit
y to be
have ethic
ally
and p
rotect I
HG
’
s repu
tatio
n, it is p
oss
ible
that a few c
olle
ague
s may ac
t in a way which
con
lic
ts with th
e princ
iple
s set o
ut in the
Co
de. G
uida
nce i
s given to rep
or
t con
cer
ns
direc
tly to line m
anag
ers
, supe
rv
iso
rs or
loc
al Hu
man Re
sourc
es re
pres
entati
ves.
For ins
tanc
es w
here it i
s more ap
propri
ate,
a con
id
entia
l repo
rtin
g hotlin
e and on
line
repo
rti
ng faci
lity i
s availabl
e and gl
obal
ly
adve
rti
sed
. The H
ea
d of Ris
k and As
sura
nce
and G
ene
ral C
ouns
el an
d Co
mpany
Se
creta
ry are a
lso avail
able to b
e cont
acte
d.
Rep
or
ts are routi
nely revi
ewed by the B
oa
rd,
who e
nsure arr
ange
ment
s are in pl
ace for
investig
ation
s and foll
ow-up a
ctio
ns.
Do th
e right thing
Show we c
are
Aim higher
Celebrat
e di
eren
ce
Work bet
ter to
gethe
r
Safe
ty a
nd se
cu
rity
IH
G is co
mmit
ted to provi
ding a s
afe,
se
cure and h
ealthy e
nvironme
nt for all ou
r
colleagues, guests and
visit
ors. All
operations
must comply with all applicable he
alth,
safet
y an
d sec
urit
y laws. B
eyond c
omp
lianc
e
with the l
aw
, IH
G works to ide
ntif
y fur
ther
improvem
ents to th
e way we mana
ge safe
ty
and s
ecur
ity ri
sk and h
as ma
ndator
y B
rand
Safet
y St
and
ards in pl
ace fo
r all hotel
s
glob
ally to drive c
ons
isten
cy in this a
rea.
Initia
tives to res
pon
d to safet
y and s
ec
urity
risks a
re on pag
e 47
.
Bribery and corr
uption
IH
G is co
mmit
ted to op
eratin
g with inte
grity.
Brib
er
y and a
ny form of in
anci
al crim
e,
including improp
er payments, m
oney
laun
derin
g and t
ax evasi
on or th
e facili
tatio
n
of ta
x evasio
n, are not p
ermit
ted un
der a
ny
circum
sta
nce
s. Th
is als
o appl
ies to any
agents,
consultants
and ot
her service
provid
ers wh
o do work o
n our be
half.
Our A
nti-
Brib
er
y Poli
cy set
s out our ze
ro
-
tolerance approach and is applic
able to all
Directors, Executive Committee membe
rs,
emp
loyees a
nd co
llea
gue
s in man
age
d,
owne
d, le
ase
d, and m
anag
ed l
eas
e hotel
s.
It is a
cco
mpa
nied by a m
andato
ry
Anti-
B
ribe
ry e
-
lear
ning mo
dule
. Our G
ift
s
and Entertainment Policy and guidance
fur
ther s
upp
or
ts our a
pproa
ch in thi
s area.
T
o c
ontinu
e to enha
nce o
ur anti-
brib
er
y
progr
amme a
nd in line w
ith be
st pra
ctic
e,
in 202
1 we un
der
too
k a Group
-w
ide bri
ber
y
and c
orrupti
on ris
k ass
es
sme
nt with the
assistance of specialist exter
nal counsel.
The o
bjec
tive was to en
sure tha
t IH
G’s
key bribe
ry ri
sks co
ntinue to b
e addre
ss
ed
and are
as of im
proveme
nt are ide
nti
ied.
The a
ss
es
sme
nt has re
centl
y con
clud
ed,
and th
e in
dings w
ill be in
corp
orate
d and
addressed throughou
t the business
unde
r the le
ad
ers
hip of the Ethic
s and
Co
mplia
nce te
am. In
itiative
s to resp
ond
to legal, regulatory and ethical compliance
risks a
re on pag
e 46
.
IH
G is a me
mbe
r of T
r
ansp
aren
cy
Intern
ation
al UK’s Bus
ine
ss Inte
grit
y
Forum and participates in its annual
Co
rpor
ate Anti-
C
orrupti
on B
ench
mark
.
Ea
ch year
, the res
ults fro
m this
be
nchm
ark he
lp to mea
sure the
ee
ctiven
es
s of our a
nti-b
ribe
ry a
nd
cor
ruption p
rogram
me and i
denti
fy
area
s for co
ntinuou
s improvem
ent.
Handling inf
ormation
responsibly
We are comm
itte
d to ens
uring tha
t gues
ts,
mem
ber
s of our l
oyalty p
rogramm
es,
colleagues, shar
eholders, owners
and
other s
takeh
old
ers tru
st the way we ma
nag
e
dat
a. As pa
rt of o
ur priva
cy and info
rmatio
n
se
curit
y prog
ramme
s, we have st
and
ards,
pol
icie
s and pro
ce
dures in p
lac
e to man
age
how pe
rso
nal d
ata c
an be us
ed a
nd prote
cted.
Our e
-lea
rning training for employees
on ha
ndling i
nformati
on res
pon
sibly i
s a
mandatory annual requirement, and covers
topic
s suc
h as pa
sswo
rd and em
ail se
curit
y
,
usin
g per
son
al dat
a in ac
corda
nce w
ith our
pol
icie
s and pri
vacy co
mmitm
ents, h
ow
to work with ve
ndor
s and tran
sfer
ring
d
a
t
a
s
e
c
u
r
e
l
y.
In ad
dition to th
e cybe
rse
curit
y awaren
es
s
lea
rning
s mentio
ne
d on the prev
ious p
age,
we held t
abl
etop exercis
es to pra
ctis
e our
abilit
y to dete
ct an
d resp
ond to p
otential
se
curit
y events
, such a
s rans
omware an
d
supp
ly ch
ain att
acks
. We contin
ue to develo
p
our pr
ivacy and s
ec
urit
y progra
mme
s to
addre
ss evo
lving re
quirem
ents a
nd ta
ke
acc
ount of d
evelo
ping b
est p
racti
ce.
The B
oard re
gards cy
ber
se
curit
y as a
critic
al bu
sine
ss di
sci
pline a
nd it reg
ularly
rece
ives
updat
es.
S
ee ini
tiati
ves to re
sp
ond to c
ybe
rs
ecu
rit
y
and i
nform
atio
n gove
rnan
ce ri
sks o
n pag
e 4
4.
Sec
tion 172 statement
Det
ails o
f how the D
irector
s have
had re
gard to the m
atte
rs set fo
rth i
n
Se
ction 17
2(1)(a
) to (f) of th
e Co
mpani
es
Act 20
0
6 is provid
ed in th
e Se
ction 17
2
sta
tement o
n pag
es 9
0 to 91.
Furthe
r det
ails c
an be fou
nd throu
ghout
the Str
ategic an
d Gover
nanc
e Rep
or
ts,
including
in our
ke
y stak
eholder
engagement disclosures on
pages 20
to 28, 39, 9
2, 10
1, 107
, 10
8, 112 to 114,
2
27 and 2
28
.
Non-inancial inf
ormation
statement
Non
-ina
ncial information, including
a des
cripti
on of po
licie
s, du
e dilige
nce
proc
es
se
s, outc
ome
s and ris
ks and
opp
or
tunitie
s ca
n be foun
d as se
t
out b
elow. Interna
l veri
icati
on and
dis
clos
ure contro
ls app
ly to all the
inform
ation c
overed in th
ese a
reas
.
•
Imp
act o
f the C
ompa
ny’s activi
ties
on the e
nvironm
ent on p
age
s 29 to 35
,
and 2
29 a
nd 23
0
•
So
cial m
atte
rs on p
age
s 27 an
d 28
•
Anti
-c
orrup
tion an
d anti-
bribe
r
y
mat
ters o
n pag
e 38
•
Emp
loyee mat
ter
s on pa
ges 24 to 26,
101, 1
07
, 10
8, 112, 114 and 2
2
7
•
Re
spe
ct for h
uman righ
ts on p
age 26
•
A de
scri
ption of th
e Group’s bus
ines
s
mod
el on p
age
s 10 to 13
•
Th
e Group’s princ
ipal ri
sks on p
age
s
42 to 47
•
Th
e Group’s KPI
s on pa
ges 5
0 to 53
Se
e ou
r relev
ant po
lic
ies a
t
www.ihgplc.
com/
responsible-business
Strate
gic Re
po
rt
38
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
R
esponsi
ble pr
ocur
emen
t
G
rowin
g our b
us
ine
s
s in an
innov
ativ
e and sustainable wa
y
,
whil
st wo
rking to t
he hi
ghe
st
standards of business conduct, play
s
a key role b
oth in o
ur su
pp
lie
r sel
ec
tion
proc
es
s and h
ow we cont
inu
e to work
with o
ur exi
stin
g sup
pli
er
s. We are
co
mmit
ted t
o workin
g with s
up
plie
rs
who m
ee
t our m
inim
um et
hic
al st
and
ard
s
an
d sha
re th
e value
s of o
ur re
sp
ons
ib
le
bu
sin
es
s pl
an – Jo
urn
ey to T
om
orrow.
Wha
t we do alr
ea
dy
Our s
uppl
y chain a
ctiviti
es are s
plit
bet
wee
n co
rporate a
nd hotel s
upp
ly chai
ns.
Hote
l purcha
sing p
redo
mina
ntly oc
curs at
a loc
al hote
l level, a
s our hote
ls are larg
ely
owne
d by inde
pen
dent t
hird-
par
ty ow
ner
s
who are re
spo
nsib
le for m
anag
ing the
ir
own sup
ply ch
ains
. In so
me key markets,
IHG has pur
chasing pr
o
gram
mes in place
for es
se
ntial go
od
s and se
r
vice
s requ
ired
for op
enin
g, renovating a
nd op
eratin
g a
hotel, w
hich hote
ls have the o
ppo
rtu
nity
to buy
. Our c
orp
orate sup
ply ch
ain
cover
s marketing, te
chn
olo
gy and
professional se
rvice
s.
T
o h
elp ma
nag
e and mo
nitor ou
r corp
orate
supp
ly ch
ain, an auto
mated p
rocure
ment
system i
s use
d acro
ss m
any of our larg
e
o
ice
s. Seve
ral strate
gic sup
plie
rs als
o
rec
eive han
ds
-o
n supp
or
t in the fo
rm of
bus
ine
ss pe
r
forman
ce review
s to mitigate
risk a
nd prom
ote value re
alis
ation.
T
o e
nsure th
at supp
lier
s act w
ith the
sam
e integri
ty an
d resp
ec
t as we do, new
cor
porate s
uppli
ers are re
quire
d to con
irm
their a
cc
ept
ance o
f the IH
G Sup
plie
r Co
de
of Conduct (
or demonstrat
e the
y ha
ve
equ
ivalen
t poli
cies i
n plac
e), when th
ey
are onb
oard
ed, in a
dditio
n to it bein
g a
contract
ual r
equirement.
Recommended
guid
ance i
s als
o provide
d to our
managed hotels.
Wha
t we ach
ieved i
n 202
1
In 20
21, we fo
cus
ed on o
ur sup
ply ch
ain risk
as
suran
ce pro
gramm
e, IH
G’s Gree
n Supp
lier
program
me, ongoi
ng collabora
tion w
ith
diverse
suppliers
and i
mpro
ving
employ
ee
awa
reness of
responsible pr
o
cur
ement.
Som
e proc
ureme
nt acti
vitie
s were
redu
ce
d due to sup
ply ch
ain dis
ruptio
n,
including lo
nger shippin
g times, which
impa
cted o
ur abili
ty to s
ource p
roduc
ts.
However, other acti
vitie
s did co
ntinue an
d
the B
oard reviewe
d initi
atives to leve
rage
our sys
tem-
wide b
uying p
ower an
d
simp
lif
y the pro
curem
ent pro
gramm
e to
lower c
ost
s for owne
rs. S
ee p
age 9
1 for
more i
nfor
mation.
We refre
she
d ou
r res
po
nsib
le p
rocu
rem
ent
criteri
a for pros
pe
ctive su
pplie
rs.
The p
re-
c
ontrac
t as
ses
sm
ent is p
art o
f
IH
G’s tende
ring pro
ce
ss an
d inclu
de
s
due dil
igen
ce que
stio
ns ab
out su
pplie
rs’
governance, labour and environmental
prac
tice
s releva
nt to suppl
iers’ ow
n
operati
ons and s
upply cha
ins.
IH
G com
plie
s with it
s statu
tory re
por
tin
g
dutie
s on paym
ent pr
actic
es an
d
pe
rfor
manc
e and i
s a volunta
ry s
ignato
ry
of the U
K Prompt P
ayment C
od
e. In 20
21,
we upd
ated ou
r proc
es
ses to e
nsure th
at
supp
lier
s with le
ss th
an 50 em
ployee
s
were pa
id within 3
0 days whe
re ce
ntrally
acc
ounte
d for acro
ss o
ur UK c
orpo
rate and
managed, o
wned, leased,
and managed
lease hot
el supply
chains.
With o
ur hotel
s and res
or
ts at th
e hea
rt
of lo
cal c
ommun
ities
, we supp
or
ted m
any
progr
amme
s aroun
d the worl
d during 20
21,
includ
ing
in
the UK
, whe
re we don
ated
unus
ed PP
E to St Jo
hn Amb
ulan
ce.
Reco
gnising the environmenta
l impact
textil
es have ac
ross th
e entire valu
e chai
n,
we conti
nue
d to coll
abor
ate with E
xeter
Unive
rsit
y (U
K) to c
arr
y out a re
sea
rch
as
ses
sm
ent of the e
nvironm
enta
l and
in
anci
al co
nsid
eratio
ns whe
n so
urcing
textil
es. We al
so co
ntinue
d worki
ng with
CARE I
nternati
onal U
K and c
arrie
d out
a workp
lac
e gen
der an
alys
is in fac
torie
s
usin
g inter
views a
nd foc
us group
s, whic
h
will infor
m our work in 2
02
2.
Wha
t’s to com
e
We will co
ntinue ou
r goal to in
crea
se the
con
sid
eratio
n of sus
tain
able, d
ivers
e and
risk re
silie
nt supp
lier
s. Thi
s ena
ble
s the
right co
nvers
ations to b
e had a
cros
s
the busi
ness and incr
e
ase the
amoun
t
of bu
sine
ss award
ed to the
m. T
o that en
d,
we are in the p
roce
ss of evo
lving th
e digit
al
system
s that su
ppo
rt o
ur res
pon
sibl
e
proc
ureme
nt proc
es
se
s, incl
uding th
e
evaluati
on of sup
plie
rs’ ris
k, di
versi
ty
and sustai
nabili
ty attribu
tes.
Co
rpor
ate and hote
l supp
ly acti
vitie
s
are driven by o
ur Procu
reme
nt
func
tion an
d guide
d by our
responsible
business agenda, w
ith
oversi
ght from the B
oard
’s Resp
onsi
ble
Busine
ss Co
mmittee.
S
ee ou
r sup
ply c
hain d
isc
lo
sure o
n pag
e 26,
and c
om
mitm
ent to mi
nimi
se wa
ste on
pa
ge 30.
Suppli
er engagemen
t
Res
pon
sibl
e supp
lier re
lation
ship
s are vit
al for IH
G in driv
ing e
ici
ency an
d ee
ctiven
es
s throug
hout b
oth hotel a
nd
corporate
oice lifecy
cles.
What i
mpacted them
in 2021
Engagement
Outc
omes
•
P
aymen
t pract
ices and
performance
•
Supply chain integrity
•
En
vironmental co
ncerns, inclu
ding waste
•
Communications with suppliers about
paymen
t ter
ms
•
W
ork
ing w
ith sup
pli
ers a
s pa
rt o
f our
ten
der
ing pro
ce
ss
es
, to und
ers
ta
nd th
eir
responsible
business activ
ities
•
Collabora
tion
with
suppliers r
egarding
bulk
amenit
y solutions
•
Revise
d pay
men
t proc
es
se
s for s
mal
l
co
mpa
nie
s that s
upp
ly IH
G in th
e UK
•
Incr
eased collaborat
ion wit
h sustainable
sup
pli
ers a
nd ali
gnm
ent wi
th our J
our
ney
to T
omorrow amb
itions
•
Sustai
nable bulk
ameniti
es solutions
are
be
ing d
epl
oyed ac
ros
s our e
st
ate glo
ba
lly
Furt
her i
nform
atio
n ab
out ho
w the B
oard c
on
sid
ere
d sup
ply c
hain a
nd p
rocu
reme
nt is o
n pa
ges 9
1 an
d 10
1, and o
ur bu
sin
es
s rel
ation
shi
ps,
inc
ludi
ng ou
r sta
teme
nt of b
usi
ne
ss re
latio
ns
hips w
ith su
ppl
ier
s, cu
stom
er
s and ot
her
s, is o
n pa
ge 2
28.
Visit
www.ihgpl
c.com/
respon
sible-business
for fur
the
r info
rmati
on ab
ou
t our re
sp
ons
ibl
e pro
cure
ment a
pp
roac
h.
39
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
How I
HG do
es b
usin
es
s
Risks
identiied
within
irst
-line decisions
Ma
nag
em
ent te
ams h
ave day-to
-
day re
sp
ons
ibi
lit
y
for id
enti
f
ying a
nd ma
nag
ing ri
sk wi
thin key de
ci
sio
ns,
program
mes and t
ransactions
and escala
ting
where
appropri
ate.
Ris
ks id
en
ti
ied a
nd m
on
itor
ed by s
ec
ond
-l
ine
management
funct
ions
Specialist fun
ctions pr
ovide
expertise, su
pport, monitori
ng
and c
hal
len
ge to de
ci
sio
n maker
s on ri
sk-rel
ate
d mat
ter
s.
Risks
considered at
Executive Co
mmittee
Ongoing dynamic review
of ris
ks as p
ar
t of de
ci
sio
n-
mak
ing a
nd str
ateg
y set
tin
g,
including
considerati
on of
longer
-term trends
which
co
uld im
pac
t futu
re grow
th,
com
petitive
nes
s
or reputa
tion.
Ou
r r
isk ma
na
gemen
t
Attit
ude
s to ris
k wit
hin key de
cis
ion
s
We have ass
es
se
d risks an
d con
sid
ered
risk a
ppeti
te acros
s our s
trategic c
hoic
es
and, wh
ile we are not ex
pos
ed to gre
ater
risk ove
rall acro
ss th
e strateg
y
, we
conti
nue to mo
nitor ris
ks to executing
agai
nst ou
r plan a
nd inh
erent ri
sks from
the trad
e
-o
s we h
ave made. T
here are
als
o several e
me
rging ris
ks which a
re likely
to be dyn
amic th
rougho
ut the de
liver
y of
our str
ategy
, incl
uding c
ons
umer d
ema
nd
shif
ts; d
igita
l disru
ption; p
eop
le an
d
workforce changes; environmental, social
and gove
rnan
ce (ESG) exp
ec
tation
s; and
a complex
geopolitical a
nd regula
tory
environ
ment
. We desc
ribe th
e Bo
ard’s
app
roach to ri
sk app
etite on p
age 37 a
nd
our at
titud
e is of
ten le
ss ab
out d
ownsi
de
risk m
itigatio
n and mo
re abo
ut po
sition
ing
ours
elve
s to resp
ond to un
cer
t
ainty i
n an
agile w
ay
.
Bo
ard and C
ommi
tte
e disc
uss
ion
s during
202
1 have allowe
d for c
ons
ider
ation of
eme
rging an
d evolvin
g risks a
cros
s a wide
rang
e of topic
s and tim
efram
es, in
clud
ing:
•
co
mpe
titor and m
acro
eco
nomi
c risk
facto
rs within t
he Bo
ard’s disc
us
sion
of strate
gy and p
rese
ntati
ons from
managem
ent (
e.g. brand and lo
yalty
strategies, commercial and technolo
gy
developmen
ts, indust
ry cybersecurity
risks,
supply
chain
and pr
ocurement
stra
tegi
es
, lon
g-
term 
in
anc
ial s
trate
gy
,
regul
ator
y develo
pme
nts an
d the
impe
rative to drive own
er return
s);
•
work
forc
e
-rel
ated ris
ks at the Re
mune
ration
and N
omin
ation C
ommi
tte
es, in
cludi
ng
prep
aratio
n for the inte
gration of a
n ESG
ele
ment i
nto target
s for future l
onge
r
-term
inc
entive cycle, re
tention an
d suc
ce
ssi
on
arrang
eme
nts; an
d risks re
lating to th
e
com
petiti
vene
ss of re
mune
ration;
•
regulatory and 
inancial governance risks
at the Aud
it Co
mmit
tee (e.g. tax ri
sks
relatin
g to digit
al bus
ines
se
s, trea
sur
y
and li
quidit
y ris
ks linked to vol
atilit
y and
senti
ment in th
e cap
ital m
arkets,
cor
porate g
overnan
ce reform
, potenti
al
risks f
rom litigati
on and 
ina
ncial c
ontrol
risks i
n a cos
t-co
nstrai
ned e
nvironm
ent);
•
wid
er cul
tural ris
ks at the Re
spo
nsib
le
Busin
ess C
ommitte
e, including
emp
loyee well
bein
g and the i
mpac
t of
lexible
worki
ng arr
angements; gender
and eth
nicit
y rep
or
ting; c
ommun
ity
impact
; sustain
ability; human rights;
and evol
ving su
pply c
hain ri
sks; and
•
ris
ks relatin
g to the imp
act of c
limate
cha
nge on I
HG h
ave continu
ed to
rec
eive clo
se at
tentio
n in Bo
ard and
Respon
sibl
e Bus
iness
Commi
ttees,
incl
uding o
ur com
mitme
nts to the TCF
D
rec
omme
ndati
ons an
d an exte
rnal
brie
in
g on CO
P
26 focu
s area
s.
Proc
ed
ure
s for i
den
tif
ying
, dis
cu
ss
ing
and escalating
emerging r
isks
We reco
gnis
e that we are t
argeting
indu
str
y-le
adin
g grow
th with an alre
ady
dyna
mic ris
k pro
ile; with c
omp
etitive
chal
leng
es in key market
s; and with s
ome
area
s of IH
G cha
lleng
ed by em
ergin
g risks
as we have evolve
d to the new o
pe
rating
norm
s resul
ting from C
ovid
-19. Som
e of
the
se em
erging ri
sk are
as – inc
luding
con
straint
s on own
er 
inanc
es o
r availabil
ity
of tal
ent – may no
t be quic
k to overcom
e.
The m
anag
eme
nt team i
s aware of the
chal
leng
es thi
s contex
t crea
tes and o
ur
strate
gic prio
ritie
s are reviewed re
gula
rly at
E
xecutive C
ommi
tte
e me
etings
, con
side
ring
emerging r
isks t
hrough
open roundtable
dis
cus
sion w
ithin the a
gen
da, and c
er
tai
n
eme
rging th
eme
s are con
sid
ered th
rough de
ep
dives with a smaller audience. Our inan
cial
pla
nning al
so inc
lude
s ide
ntif
ying l
evers
whic
h coul
d be pu
lled to e
nabl
e lexi
bilit
y
and a
dapt
abilit
y to cha
nge
s to our i
nanc
ial
as
sumptio
ns an
d circum
stan
ce
s and overa
ll
viabilit
y and sust
ainabilit
y
. M
ore detail
on the to
pics c
overed by th
e Bo
ard and
Co
mmit
tee
s is availab
le in the G
overn
ance
Rep
or
t, pa
ges 8
0 to 127
.
Su
pp
or
ted by t
he Ri
sk a
nd As
su
ran
ce t
eam
The R
is
k and A
ssu
ran
ce te
am work
s with G
roup S
trate
gy an
d othe
r i
rst- an
d se
con
d-
lin
e team
s to mai
nta
in and e
volve th
eir r
isk p
ro
ile
s, prov
ide
inte
llige
nc
e, tra
ck ea
rly war
ning i
ndi
cato
rs an
d any pote
ntia
l cha
nge
s to ris
k tol
eran
ce an
d ap
peti
te. Th
ey upd
ate th
e Bo
ard on a
ny chan
ge
s to the
prin
cip
al ri
sks bu
t als
o exp
lore o
pp
or
tunit
ies to c
on
sid
er ri
sk co
ntinu
ou
sly th
roug
hou
t the yea
r and to i
nl
uen
ce a
nd info
rm key de
cis
ion
s.
The t
hird
-lin
e Inte
rna
l Audi
t team wo
rks th
rough
out t
he yea
r with th
e Aud
it Co
mmi
tte
e to co
nsi
der w
he
re add
itio
nal c
on
id
enc
e may b
e ne
ed
ed in
rel
ation to s
trate
gic p
rogr
amm
e and o
pe
ratio
nal d
eli
ver
y
, inc
ludi
ng the e
sc
al
ation o
f eme
rgin
g ris
ks by man
ag
eme
nt, th
e res
ilie
nc
e of key proc
es
se
s
and c
ontro
ls (i
ncl
udin
g third
-p
ar
ty re
lat
ion
ship
s and t
ech
nol
ogy i
nnova
tion) an
d the in
tegri
ty a
nd gove
rna
nce o
f dat
a. Th
e tea
m als
o mon
itor th
e
co
n
ide
ntial d
isc
lo
sure ch
ann
el to i
dent
if
y any em
ergin
g tren
ds re
quir
ing m
ana
gem
ent a
nd/or Bo
ard in
ter
venti
on.
Oversight
by
Board and Committees
The B
oa
rd is re
sp
ons
ibl
e for c
arr
yin
g out a ro
bus
t
assessment of
the Compan
y
’
s emer
ging
risks
and
over
se
es th
e cultu
re acro
ss t
he Gro
up thro
ugh w
hic
h
emp
loye
es are e
nc
oura
ge
d to le
arn an
d work at p
ac
e,
foc
us on s
olu
tion
s and t
ake th
e right ri
sks to g
et ah
ead
of the m
arket
.
The B
oa
rd and C
om
mit
tee
s rec
ei
ve pre
sen
tati
ons f
rom
management t
eams, second-line
functi
ons, Risk
and
Assurance and e
xternal parties t
hroughout
the y
ear
.
Ongoing escalation
of
emerging risks
,
deined as:
•
New ris
ks, or e
xist
ing ri
sks in a n
ew co
ntex
t, wh
en th
e natu
re and va
lue of t
he imp
ac
t is no
t yet full
y kno
wn or un
de
rsto
od
•
F
acto
rs wi
th an in
cre
asin
g imp
act a
nd p
roba
bili
ty ove
r a lon
ge
r time h
oriz
on (i.e
. beyo
nd 
ive yea
rs)
The B
oa
rd’s role i
n risk m
an
age
me
nt
– foc
us
ed on I
HG
’
s res
ilie
nc
e
The B
oard i
s ultimate
ly ac
count
abl
e for
est
abl
ishin
g a framewo
rk of pru
dent an
d
ee
ctive c
ontrols
, which e
nabl
e risk to b
e
as
ses
se
d and m
anag
ed, a
nd is su
ppo
rte
d by
the Audi
t Co
mmit
tee, E
xecu
tive Com
mit
tee
and d
ele
gated c
ommi
tte
es. O
ur gove
rnanc
e
frame
work
and Committ
ee agendas establish
proc
edu
res for B
oard m
emb
ers to rec
eive
inform
ation on ri
sk from th
e Exe
cutive
Co
mmit
tee an
d Sen
ior Le
ade
rs and a ra
nge
of othe
r interna
l and ex
ternal s
ourc
es.
Our B
oard a
nd man
age
ment
, supp
or
ted by
the Ri
sk and A
ssu
ranc
e team, c
ontinu
e to
focu
s on the l
evels of ri
sk in the b
usin
es
s
(either in
divid
ually o
r in total
), inclu
ding the
app
ropriate b
alan
cing of o
ppo
rtu
nities fo
r
strate
gic adva
ntag
e or e
icie
ncy wit
h the
ne
ed to buil
d in res
ilien
ce in the s
hor
t
and lo
nge
r term. D
elive
ring at p
ace a
cros
s
our str
ategi
c pilla
rs places demands on
our c
apab
ilitie
s and c
apa
citie
s and the
com
plexiti
es of th
e hos
pita
lity i
ndus
try
requi
re us to con
sid
er em
erging tre
nds
(see pa
ge
s 14 and 15) ac
ross a w
ide ran
ge
of subj
ect
s given th
e of
ten lon
g lea
d time
s
to ee
ct cha
nge wi
th our es
tate of h
otels
.
Strate
gic Re
po
rt
40
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
IH
G’s resili
enc
e remain
s an ong
oing,
cros
s-f
uncti
onal, fo
cus to id
entif
y
opp
or
tunitie
s to improve e
ici
ency
,
ee
ctiven
es
s and c
on
ide
nce
. We are
app
lying re
silie
nce p
rincip
les a
s we emb
ed
prep
aredn
es
s for clim
ate cha
nge into
existi
ng proc
es
se
s followin
g the TCFD
proje
ct. T
his inc
lude
s tran
slatin
g the key
clim
ate-
relate
d sc
ena
rios into as
sum
ptions
that c
an be e
mbe
dde
d in our l
ong
-ran
ge
planning; co
nside
ring climate sentiment
indic
ators re
lating to gu
es
ts, own
ers an
d
investor
s and oth
er strate
gic ini
tiatives
over time; a
nd co
nsi
derin
g sce
nari
os as
an integ
rated p
art o
f future Bo
ard Stra
tegy
ses
sions and horizon-
scanning discus
sions.
We des
cribe th
e Bo
ard’s appro
ach to ris
k
app
etite on p
age 37 an
d more d
etail o
n
forma
l risk ap
petite a
nd tole
ranc
e is provid
ed
els
ewhe
re in this rep
or
t. For exam
ple, o
ur
app
etite for 
inan
cial ri
sk is de
sc
ribe
d in
note 24 to the G
roup Fin
anci
al Sta
teme
nts
(see pa
ge
s 188 to 19
2), and our a
ppro
ach
to taxati
on on p
age 57
.
Thi
s se
ctio
n sh
ould b
e re
ad tog
eth
er wit
h the
res
t of the S
trate
gic R
epo
r
t, Go
vern
anc
e on
pa
ges 8
0 to 12
7
, th
e goi
ng co
nc
ern s
tate
me
nt
on p
age 2
30, an
d Ris
k Facto
rs on p
age
s 23
1
to 23
6.
procedures; and cross
-function
collaborat
ion on k
ey risks
(includ
ing
thir
d-part
y due
diligence
, personal data,
fraud p
revention, re
sp
ons
ible b
usin
es
s); and
•
how we h
ave adapte
d
monitor
ing and
repo
rting
of ri
sks foll
owing ne
ce
ss
ar
y
adjustmen
ts dur
ing t
he pandemi
c,
incl
uding th
e formati
on in 20
21 of n
ew
govern
ance c
omm
itte
es for key ris
k topic
s,
sp
eci
ic ex
terna
l ben
chma
rking s
uch a
s
anti-
brib
er
y and c
orrupti
on, pri
vacy and
TCFD mo
de
lling, an
d the deve
lopm
ent of
me
dium-
term strate
gic me
trics to m
onitor
strate
gic executi
on, whi
ch are anc
hore
d
com
petiti
vely wh
ere po
ssi
ble.
The R
isk an
d Ass
uranc
e team h
ave repor
te
d
to the Audit C
om
mitte
e on d
evelop
ment
s
in executi
ve and se
nior l
ead
ers
hip overs
ight
of ris
k mana
gem
ent an
d also th
ose o
f key
func
tions w
ithin IH
G (info
rmatio
n sec
urit
y
,
procurement, ethics and complianc
e,
privac
y)
, includ
ing tr
ade-
os and choices
mad
e to maint
ain an ap
propri
ate bala
nce
acro
ss the p
or
tfo
lio of ris
ks and a
ctive
consideration o
f acceptable risk t
olerances.
This i
s contri
buting to a
n ongo
ing evalua
tion
of the s
ource
s of as
suran
ce availa
ble to the
Board
, complemen
ted
by
the i
ndependent
intern
al audit p
lan. T
his ha
s incl
ude
d focu
s
on as
sura
nce o
n data inte
grit
y in rela
tion to
ke
y non-
inancial metrics which will continue
in 202
2
.
Co
ntin
ue
d evoluti
on of o
ur ris
k
management, internal
control and
ass
uranc
e arrangem
ents
The B
oard h
ave recei
ved reg
ular up
date
s
on the o
ngoin
g evolutio
n of our ri
sk
man
age
ment an
d intern
al contro
l system
.
The
se arr
ange
ment
s are de
signe
d and
ope
rated to s
uppo
rt o
ur res
ilien
ce and
our ab
ilit
y to take advant
age of u
psi
de
opp
or
tunitie
s and re
main fu
lly integr
ated
with the way we run th
e bus
ine
ss, in
clud
ing:
•
how th
e Exe
cutive C
ommi
tte
e has
reinforc
ed key princ
iple
s of
cul
ture and
leadership
(see pa
ge
s 24 to 26), includi
ng
our D
ele
gatio
n of Autho
rity p
olicy;
se
ssi
ons wit
h all col
lea
gues to re
inforce
stra
tegy a
nd leadership
behaviou
rs;
refres
hing s
everal c
orpo
rate pol
icie
s to
ensure they remain appropriate (includin
g
Co
de of C
ond
uct an
d Inform
ation
Securit
y
); reviewing
decisio
n-making
protoc
ols (for examp
le to fur
the
r enh
ance
govern
ance ove
r Syste
m Fund expen
diture
and Comme
rcial and T
echnolo
gy delivery);
and c
ons
ideri
ng risk a
ppe
tite and str
ategic
progr
amme d
elive
ry ri
sk withi
n the Bo
ard
Strate
gy me
eting
s;
•
how we h
ave adapte
d key
pr
ocesses and
controls
as we recover f
rom pan
demi
c
disr
uption
s and ad
apt to remo
te working
suc
h as regu
lar review
s of risk p
roil
es; a
review of in
cide
nt and c
risis m
ana
gem
ent
Prac
tic
al ris
k ma
nag
em
ent l
es
so
ns l
earn
ed fr
om ou
r Covi
d-19 re
spo
ns
e
Re
lec
ting on th
e chall
eng
es we have fa
ce
d during o
ur resp
ons
e to the pa
nde
mic, we have he
ld ‘le
ss
ons le
arne
d
’ disc
uss
ions
acro
ss the b
usin
es
s aroun
d a range of to
pic
s inclu
ding pro
ce
ss, d
eci
sion
-m
akin
g, com
munic
ation an
d future pro
o
ing, am
ong oth
ers
.
Our g
oal is to e
nsure we grow fro
m our exp
erie
nce to date, re
inforce an
d co
ntinue go
od p
ractic
es w
hich were a
lread
y in pla
ce and t
hat
we impl
eme
nt conti
nuou
s improvem
ents to ou
r ways of workin
g going fo
rwa
rd.
Ou
r pra
ct
ice
s in p
la
ce t
hat w
orke
d wel
l
Opportunities identiied
for
future
resilience planning
Implementing opportunit
ies in
practice
We identi
ie
d suc
ce
ss
ful pra
ctice
s
ado
pted by ma
ny IHG te
ams in ou
r
pan
demi
c resp
ons
e to captu
re and
reinforc
e for the fu
ture inclu
ding:
•
glo
bal ali
gnme
nt on termi
nolo
gy an
d
respo
nse proce
dures, highlighting
key acco
untab
ilitie
s and
escalation pr
ot
ocols;
•
proto
col
s to enga
ge dive
rse exp
er
tise
and b
est p
racti
ce ac
ross o
ur func
tion
s
and re
gion
s, usin
g a glob
al ‘hub an
d
sp
oke’ mode
l. Thi
s ens
ured we rem
aine
d
agile
and adap
table in
the fast
-changing
and un
cer
t
ain glob
al enviro
nme
nt; an
d
•
livi
ng our val
ues
, beh
aviour
s and
prio
rities
, emp
owering te
ams to b
e
sol
ution
s-fo
cus
ed an
d move at pac
e
to supp
or
t hotel
s and own
ers a
s well
as c
are for our e
mploye
es an
d gues
ts.
While re
co
gnis
ing what wo
rked well, we
als
o identi
ie
d op
por
tuni
ties to evolve an
d
strengt
hen our crisis
management and
bus
ine
ss co
ntinuit
y pro
gramm
e launc
he
d
prio
r to the pan
demi
c, inclu
ding:
•
wh
ere po
ssi
ble, au
tomatio
n of proc
es
se
s
that all
ow for real tim
e dat
a to be ea
sily
cap
tured, tra
cked, and m
onitore
d; and
•
en
hanc
ed s
tructu
res for stre
amlin
ing
e
icie
ncy in ou
r comm
unic
ation pro
ce
ss
es
up and
downst
ream i
n the
business.
Ea
ch key oppo
rtu
nity i
denti
ie
d in our
les
so
ns le
arne
d review wa
s ass
igne
d
a de
dicate
d worki
ng group to id
entif
y
prac
tica
l and ac
hievabl
e sol
ution
s for
impl
eme
ntatio
n in 202
2 an
d beyon
d.
The
se n
ew ways of workin
g will be
emb
ed
ded into o
ur co
mmon p
ractic
es
and cu
lture, en
suring gre
ater re
silie
nce
and re
adine
ss fo
r future in
cide
nts or c
rise
s
acro
ss a wid
e rang
e of potenti
al indi
vidu
al
and c
onne
cte
d risk top
ics
.
41
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Our ri
sk managemen
t
IHG
’s princi
pal ri
sks a
nd un
ce
rt
ainti
es
The C
ovid
-19 crisi
s did not f
unda
ment
ally
cha
nge the p
rincip
al ris
ks to our bu
sine
ss
and s
trategy; however i
t heighte
ne
d the
unc
er
taint
y we fac
ed in th
e sho
rt te
rm and
als
o create
d the po
tential for l
ong
er
-term
impa
cts b
ase
d on tra
de
-
os th
at were
requi
red to protec
t liqui
dit
y in 2020.
Covi
d-19 was th
erefore n
ot man
age
d as
a sep
arate ris
k, ra
ther a
s par
t of how we
evaluate
d many of ou
r existin
g princ
ipal
risks
, and thi
s appro
ach c
ontinue
d into 20
21,
as sp
ec
ii
c factor
s relatin
g to the safe
ty an
d
se
curit
y of our c
olle
agu
es an
d gue
sts or
constrai
nts on
domestic
and in
terna
tional
travel ea
se
d, but oth
er unc
er
tai
nties – for
exampl
e relatin
g to hotel
-leve
l tale
nt and
supp
ly ch
ains – may h
ave a more rapi
d
impa
ct in an un
ce
rt
ain and l
ow
visibility en
vir
onment.
While o
ur prin
cipa
l risk gri
d is de
libe
rately
broa
d in sc
ope an
d incl
ude
s facto
rs whic
h
may be
com
e incre
asi
ngly imp
or
tan
t over
time, th
e comp
lexitie
s involve
d in the
executio
n of our in
itiative
s mea
n there
is me
rit in mo
re proac
tive co
nsid
eratio
n
of em
erging s
cen
ario
s acros
s multip
le ris
k
topic
s. Th
es
e can a
ct as l
ens
es for u
s to look
at the na
ture or pote
ntial sp
ee
d of imp
act
of many of o
ur ide
ntii
ed ris
ks (as we have
expe
rien
ced w
ith Covi
d-19) and to p
rovide
incre
ase
d ar
ticul
ation to the B
oa
rd of
pote
ntial se
nsiti
vitie
s to, and stres
s-
testin
g
of, strategy execu
tion.
All the ri
sks on th
e grid b
elow me
et the
de
initi
on of ‘princi
pal
’
, however we h
ave
reviewe
d the tren
ds ca
refully to mo
re
acc
urately re
le
ct th
e current b
ehavi
our of
risks re
lative to ea
ch othe
r and th
e por
t
folio
ov
erall.
This incl
udes close considerat
ion
of ris
ks with a more g
radua
l, long
er-term
impa
ct beyo
nd the p
erio
d con
side
red for
inan
cial planning, inclu
ding the potential
impa
cts o
f climate c
hang
e which h
ave bee
n
evaluate
d in our TC
FD proje
ct (see p
age
s 32
to 35) an
d also i
ntegrate
d into other ri
sks
on the g
rid.
The B
oard a
nd E
xecutive C
omm
itte
e have
not note
d any majo
r moveme
nts on t
he grid
com
pare
d to last ye
ar
. In relati
ve terms,
som
e risks re
main d
ynami
c as we move into
202
2 wh
ile othe
rs are mo
re stab
le on 2
02
1
level
s. We will co
ntinue to mo
nitor p
otential
shif
ts i
n 202
2 as a re
sult of th
e exte
rnal
environ
ment
, our bu
sine
ss m
ode
l or a
complex and
highl
y int
e
rdependent
port
folio
of intern
al initia
tives.
By dis
tributi
ng the ris
ks acro
ss the g
rid in this
way
, it all
ows us to co
nsi
der th
e diere
nt
resp
on
ses w
hich may b
e requi
red to indi
vidua
l
facto
rs (for exampl
e, rapid f
actor
s which m
ay
requi
re contin
uity p
lann
ing), or the overa
ll leve
l
of ris
k we are facin
g and wh
at it me
ans for
govern
ance o
f the who
le po
rt
foli
o and futu
re
resil
ienc
e. Th
e princ
ipal ri
sks are co
nsi
dere
d
in the deve
lop
ment of s
pe
ci
ic via
bilit
y
sc
enari
os (see p
age
s 48 a
nd 4
9). Our acti
ons
resul
ting from o
ur TCFD pro
ject w
ill als
o be
use
d as a m
ode
l for othe
r sce
nari
os whic
h
can b
e integ
rated into on
going m
ana
gem
ent
monitoring and dynamic inancial planning,
and wh
ich c
an als
o fee
d into the mo
delli
ng
and s
tress
-te
sting of s
trategic re
silie
nc
e
rec
omme
nde
d by the U
K Govern
ment re
por
t
on corporat
e go
vernance
ref
orm.
Ris
k tre
nd a
nd sp
ee
d of im
pa
ct
We ass
es
s wheth
er the ri
sk are
a is
sta
ble o
r dynam
ic in its i
mpac
t and/or
likeliho
od (i
nhere
nt risk tre
nd), an
d the
rate at whic
h there c
ould b
e a materi
al
impa
ct on I
HG. T
he tren
d and sp
ee
d of
impa
ct are su
mmari
se
d in the dia
gram
with fur
the
r det
ail on ac
tiviti
es to
man
age e
ach of th
es
e risks in th
e
follow
ing pages.
Prin
cip
al ris
ks de
sc
ript
ion
s
Inheren
t r
isk t
rend
Sp
ee
d of po
tenti
al im
pac
t
Stable
More Gradual
Dynamic
Rapid
•
En
vironmental and
social megatr
ends
•
Cha
nnel managemen
t
and technology
•
In
vestment eect
iveness
and eiciency
•
Legal
, regu
lator
y an
d
ethical compliance
•
Fi
nancial
management
and cont
rol s
ystems
•
Safet
y and s
ec
urit
y
•
Macro ex
ter
nal f
acto
rs
•
Preferre
d bran
ds
an
d loyal
ty
•
L
eadership
and talen
t
•
Cyberse
curity and
inform
atio
n govern
anc
e
Prin
cip
al ris
k – as
se
ss
me
nt of tr
end a
nd s
pe
ed of i
mp
act
Inheren
t r
isk t
rend
Dynamic/Rapid
Dynamic/Gradual
Stable/Rapid
Stable/Gradual
Ris
k imp
ac
t – link to o
ur st
rate
gic p
riorit
ies
Build l
oved and tr
uste
d bran
ds
Custo
mer c
entric in a
ll we do
Create digital advantage
Care fo
r our pe
op
le, co
mmuniti
es an
dplan
et
Our r
isk ma
na
gemen
t
c
o
ntin
u
e
d
Strate
gic Re
po
rt
42
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ris
k & tre
nd
Ma
cro ex
tern
al fac
tor
s
Prefe
rre
d bran
ds a
nd l
oyalty
Descript
ion
Ma
cro exte
rnal fac
tors s
uch as p
oliti
cal an
d ec
ono
mic
disr
uption, th
e eme
rging ri
sk of infe
ctiou
s dise
as
es,
actu
al or thre
atene
d act
s of terrori
sm or wa
r
, natu
ral or
man
-m
ade di
sas
ters, a
nd in
latio
nar
y pres
sure
s co
uld
have an imp
act o
n our abi
lity to p
er
form an
d grow
,
including dis
rupting hotel supply chains an
d increasing
co
sts for o
ur owne
rs.
Failure to deli
ver prefe
rred bra
nds an
d loyalt
y coul
d impa
ct
our c
omp
etitive po
sitio
ning, ou
r grow
th ambitio
ns an
d our
repu
tation w
ith gue
sts a
nd owne
rs.
Co
mpeti
tion from oth
er hote
l bran
ds and th
ird-
par
ty
interm
edia
ries c
reate inhe
rent ris
ks and o
ppo
rtu
nities to th
e
lon
ger-term value an
d attr
active
nes
s of IH
G
’
s franc
hise
d
and m
anag
ed pro
pos
ition fo
r our bra
nds
.
Lin
k to
strategy
Tr
e
n
d
s
ob
se
rve
d
in 2021
Sec
ondar
y impact
s and continuing unce
rt
ainty in
relati
on to the rec
over
y traje
ctor
y from the p
and
emic
will co
ntinue to exa
cerb
ate the
se fac
tors ac
ross s
everal
markets
. In
latio
nar
y force
s on la
bour a
nd en
ergy co
uld
create s
igni
ic
ant pres
sure
s to hotel an
d owne
r in
ancia
l
po
sition
s and I
HG o
pera
ting co
sts
.
In ad
dition to e
pide
mic
s and pa
nde
mics
, the ris
k of
natura
l disa
ster
s and ex
treme we
athe
r events may p
ose
an inc
reas
ing threa
t to IHG o
per
ations i
n the future
. Loc
al
and inte
rnatio
nal po
litic
al tens
ion
s also c
ontinu
e to create
unc
er
taint
y for op
erati
ons in key market
s.
In an un
cer
t
ain dem
and e
nvironme
nt, an
d with co
nstra
ints
on lab
our
, sup
ply ch
ain and i
nvestme
nt cap
acit
y in m
any
markets
, our hote
ls and ow
ner
s contin
ue to fac
e dyna
mic
risks to d
eliver
y of g
ues
t expe
ctati
ons of exp
erie
nc
e.
Covi
d-19 inc
reas
ed s
hor
t-term pre
ssure
s on availa
bilit
y of
in
anci
ng for deve
lopm
ent, a
nd the
re may also b
e slow
ing
of the p
ace of c
ons
truc
tion an
d ope
nings d
ue to lab
our an
d
supply cha
in const
rain
ts and
wider inla
tionary pr
essures.
Initiatives
to re
sp
on
d
IH
G’s resili
enc
e remain
s an ong
oing, c
ross
-fun
ctio
nal,
focu
s. Th
e launc
h of a refre
she
d inci
dent an
d cris
is
man
age
ment p
rogramm
e and e
nga
gem
ent of key
lea
der
ship te
ams in s
ce
nario trai
ning pri
or to the
pan
demi
c has p
roved ver
y valua
ble in e
sta
blis
hing a
common language
and headline
roles a
nd responsibil
ities.
We have contin
ued to mo
nitor inte
llige
nce fro
m a range
of exte
rnal an
d intern
al sou
rces (e.g. governm
ent h
ealth
and travel a
dvic
e), to evolve guidan
ce for th
e safe
ope
ration o
f hotel an
d corp
orate o
ic
es
.
Lea
der
ship te
ams ac
ross I
HG h
ave also revi
ewed le
ss
ons
lea
rne
d from the p
ande
mic an
d how they c
an be ap
plie
d
to future cri
ses
. As an exam
ple th
e EME
A
A le
ade
rsh
ip
team regularly re
view global, regional, and busines
s
unit ris
ks, work
ing with B
usi
nes
s Rep
utatio
n and
Res
pon
sibili
ty exp
er
ts to train te
ams o
n resili
enc
e,
continui
ty
, and crisis planni
ng. Crisis
management teams
have refres
he
d busi
nes
s co
ntinuit
y arran
gem
ents fo
r
the reo
pe
ning of c
orpo
rate o
ice
s (e.g. busin
es
s ser
vic
e
ce
ntres, res
er
vatio
n oi
ces a
nd co
rpor
ate loc
ation
s) and
conti
nue
d to monitor c
ontinu
ity a
pproa
che
s for key
supplier
relat
ionships.
We mainta
in a rang
e of intellig
enc
e sou
rces to ho
rizon
-
sc
an for em
erging t
hreats
, provide i
nsight to l
ead
ers
hip
on inc
ide
nts that im
pac
t ope
ration
s, and a
nalys
e future
sc
enari
os to inform th
e bus
ine
ss pl
anning cyc
le,
incl
uding at th
e Bo
ard and E
xecu
tive Co
mmit
tee leve
l.
Our in
itiative
s to focus o
n owner re
turns are de
sc
ribe
d
within th
e ‘Pre
ferred b
rand
s and loyalt
y
’ and ‘
Inves
tment
ee
ctiven
es
s and e
ic
ien
cy’ ri
sks and w
ithin our p
riori
ty
to be cu
stome
r ce
ntric in all we do (se
e pag
es 19 to 2
1).
In rec
ent yea
rs, we have fo
cuse
d on s
trength
ening
our br
ands, addr
essing qua
lity
, build
ing ou
r master
brand
and enhancing our data and technolo
gy capabilities.
The
se inves
tment
s have be
en e
ss
ential to ou
r multi-ye
ar
journ
ey towards cus
tome
r centri
cit
y and have he
lpe
d
est
abl
ish a stro
ng foun
dation fro
m which to b
uild cu
stome
r
loyalt
y (see pa
ges 1
9 to 21). We have adde
d the c
apab
ilitie
s
to launc
h and m
anag
e new bra
nds, i
nclu
ding st
and
ardis
ed
des
ign, ma
ndate
d sp
eci
ic
ation
s, new p
rocure
ment
capabilities, continuous produc
t innova
tion, and
strengt
hened franchise li
cences.
It will b
e critic
al to us
e our loyalt
y pro
gramm
e to drive
bus
ine
ss to our h
otels an
d take sh
are from our c
omp
etitor
s.
We are also i
nvesting in i
ndivi
dual h
otel-
level m
arketing to
drive revenu
e per
form
anc
e of new b
rand ho
tel op
ening
s
and im
ple
mentin
g actio
ns to enh
anc
e returns for o
ur
owne
rs by dec
reas
ing c
ost
s to build an
d ope
rate hotel
s,
for examp
le by evolvi
ng our br
and st
and
ards. We are
co
ordinati
ng the op
erati
onal im
pac
t on hote
ls in the n
ear
term as o
ngoin
g disr
uption
s mea
n there wil
l be co
nstra
ints
on our a
bilit
y to train hote
l coll
eag
ues
. Our re
gion
al team
s
als
o use d
ata to prio
ritis
e atte
ntion an
d reso
urces to
drive p
er
fo
rman
ce.
We track hote
l-
level dat
a in rel
ation to the s
ust
ainab
ilit
y
of our b
rand
s in order to re
sp
ond to an in
crea
sing tren
d
of requ
es
ts from c
orpo
rate clie
nts for thi
s informa
tion.
Severa
l IH
G team
s have also p
rogre
sse
d an ag
ree
d set of
bathro
om bul
k produ
ct oe
rings fo
r all our b
rands i
n all our
regio
ns, n
ot only to bu
ild on ou
r sus
tain
abilit
y cre
dentia
ls
but to imp
rove gues
t expe
rienc
e throu
gh the pro
duct
s
that will b
ec
ome avail
able i
n our hote
ls.
43
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Our ri
sk managemen
t
Our r
isk ma
na
gemen
t
c
o
ntin
u
e
d
Ris
k & tre
nd
Leadership and talent
Cybersecurity and inf
ormation
gov
ernance
Descript
ion
Failure to attra
ct, d
evelop a
nd retai
n lea
der
ship an
d tal
ent
cou
ld imp
act ou
r abilit
y to achi
eve growth a
mbitio
ns an
d
execu
te ee
cti
vely.
Ris
ks relatin
g to peo
ple un
derp
in the ma
jorit
y of
proc
es
se
s and c
ontrols a
cros
s IH
G, and our a
bilit
y to
devel
op tal
ent is c
ritic
al to delive
ring valu
e to our bra
nds
and h
otels in th
e glob
al market
s where we o
per
ate and
com
pete. S
ee p
age
s 24 to 26 for fur
the
r deta
il on the
impo
r
tanc
e of our p
eo
ple to our p
urpo
se an
d
strategic goals.
Inhe
rent thre
ats to cyb
ers
ecu
rity a
nd inform
ation
govern
ance re
main s
igni
ic
ant and we are re
spo
nsi
ble for
a rang
e of high
-value a
sse
ts (critica
l system
s and e
mployee,
gue
st and o
ther s
ens
itive dat
a) which may be t
argete
d by
vari
ous ‘thr
eat act
ors’ (
including
organ
ised crimina
ls,
third-par
ties and colleague
s
).
Our p
lans to tra
nsfor
m how we use o
ur co
mme
rcial an
d
marketing d
ata to imp
rove the cus
tome
r experi
enc
e, grow
market sh
are and reve
nue, an
d emp
ower our ow
ners to
make bet
ter d
eci
sion
s als
o pres
ent inh
erent ri
sks to how
we man
age info
rmatio
n acros
s IH
G.
Lin
k to
strategy
Tr
e
n
d
s
ob
se
rve
d
in 2021
Our a
bilit
y to attra
ct and re
tain t
alent re
main
s a chall
eng
e
in an unc
er
ta
in ec
onom
ic and hig
hly co
mpe
titive
environ
ment
. F
ur
therm
ore, our g
rowth am
bitio
ns inc
reas
e
the ne
ed fo
r hotel t
alent
, par
ticu
larly fo
r Gen
eral M
ana
ger
s
in our Lu
xury & L
ifes
tyl
e est
ate.
We face dy
nami
c trends i
n our abi
lity to ret
ain an
d attra
ct
key and diver
se ta
lent
, to delive
r lear
ning at pa
ce an
d to
transition to hybrid wa
ys of working while maintaining
productivity and co
llaboration.
Dyn
amic an
d exte
rnal at
tac
ks agai
nst th
e hos
pita
lity
indu
str
y have con
tinue
d in 202
1, with ra
nso
mware att
acks
in par
tic
ular tren
ding a
gains
t tech
nolo
gy provi
ders
,
nationa
l in
frastr
uctur
e and
supply cha
in. Th
is has t
he
pote
ntial to impa
ct b
oth IH
G and ou
r third-
par
t
y provide
rs.
Rapi
d soc
ieta
l, leg
al and re
gulator
y an
d me
dia sc
rutiny
of priva
cy arrang
eme
nts, th
e trans
ition to mo
re perm
ane
nt
hybrid wor
king c
ondi
tions fo
r our em
ployee
s and su
ppli
ers,
and a
dvanc
es in at
ta
ck so
phis
ticatio
n als
o heig
hten
inhe
rent inform
ation s
ecu
rity ri
sks.
Initiatives
to re
sp
on
d
The E
xec
utive Co
mmit
tee re
gularl
y disc
uss
es t
ale
nt
attra
ctio
n and retenti
on ris
ks, and e
ach fu
nctio
nal
and re
gion
al lea
der
ship te
am has a c
lea
r tal
ent pl
an.
We have expand
ed p
rogram
mes to su
ppo
rt th
e
devel
opme
nt of dive
rse t
alen
t, incre
as
ed our c
on
scio
us
incl
usio
n edu
catio
n and c
ontinuo
usly rev
iew and a
dapt
our pr
actic
es to b
e more inc
lusi
ve. Our e
mploye
e
reso
urce gro
ups, wh
o are key in helpi
ng us bu
ild a cultu
re
of inc
lusio
n, have grown ac
ross a
ll our glo
bal m
arkets.
We are providin
g active su
ppo
rt to o
ur coll
ea
gues a
s they
trans
ition to hybri
d workin
g and are t
aking o
ppo
r
tunitie
s
to re-
e
nergis
e the wor
kfo
rce. Re
gular al
l-
emp
loyee c
alls
are hel
d with the C
hief E
xec
utive O
ic
er an
d there are
ong
oing le
ade
rsh
ip com
munic
ation
s and vir
tua
l team
me
etings at re
gion
al and f
uncti
onal l
evels
.
The H
uman Re
so
urces o
rgani
satio
n have develo
pe
d
a ser
ies of l
ead
ers
hip tool
s and l
earni
ng to ens
ure our
lea
der
s are eq
uipp
ed to le
ad in a hybri
d world an
d can
foste
r a per
form
anc
e-
dr
iven cultu
re bas
ed on tr
ust.
We are creatin
g oi
ce sp
ace
s that a
re desi
gne
d for
collaborat
ion and connect
ion.
We have est
abli
she
d a Glo
bal Le
arnin
g Stee
ring
Co
mmit
tee with a fo
cus o
n supp
or
ting o
ur owne
r nee
ds,
reviewin
g our le
arnin
g oerin
g and util
ising te
chn
olo
gy
to provide a v
irtu
al and s
ust
ainab
le le
arnin
g environm
ent.
IH
G has th
e abilit
y to man
age t
ale
nt and reten
tion ris
ks
direc
tly in rel
ation to IH
G emp
loyee
s but rel
ies on ow
ner
s
and third
-p
ar
ty su
ppli
ers to ma
nage th
es
e risks w
ithin
their ow
n bus
ines
se
s. O
ur Proc
ureme
nt, Le
gal an
d Risk
team
s also c
on
side
r more in
direc
t work
force ris
ks relati
ng
to our third
-pa
rt
y rel
ations
hips
.
The Re
mune
ration C
om
mitte
e is res
po
nsib
le for
deter
mining E
xec
utive Bo
ard and E
xec
utive Co
mmit
tee
remun
eratio
n and revie
ws wide
r work
force re
mune
ration,
align
ed with th
e intere
sts of s
hareh
old
ers an
d the U
K
corporate
gover
nance envir
o
nment.
Our I
nformati
on Se
curit
y team c
ontinu
es to imp
lem
ent new
sol
ution
s and co
ntrols to ad
dres
s pote
ntial vuln
erab
ilitie
s,
and to foc
us res
ource
s on th
ose o
pera
tiona
l tas
ks that be
st
protec
t our se
nsi
tive data s
ets a
nd syste
ms and d
etec
t and
resp
ond to p
otentia
lly mali
ciou
s events in a
n approp
riate
way
. In 2
02
1 we built a ra
nso
mware resp
ons
e prog
ramme,
conduc
ted tabletop ex
ercises and clari
ied decis
ion rights
to enha
nce in
cid
ent prep
ared
nes
s. We als
o mature
d our
oversi
ght of third
-pa
rt
y provid
ers th
rough us
e of se
curit
y
que
stion
naire
s and an in
dep
end
ent cyb
er
sec
urit
y
rati
ngs platfor
m.
We work with ou
r spe
ciali
st tec
hnol
ogy p
rovide
rs to
conti
nuou
sly imp
rove ke
y op
eratio
nal se
curit
y pro
ce
ss
es
and c
apa
bilitie
s suc
h as Id
entit
y and Ac
ce
ss M
anag
eme
nt,
Se
curit
y Mo
nitoring, I
ncid
ent Re
spo
nse
, and the s
upp
or
t
and m
aintena
nce of te
chni
cal s
olutio
ns arch
itectu
re.
As 
inanc
es re
main at a p
remium for h
otel own
ers, o
ur
Inform
ation S
ecur
ity an
d T
e
chn
olo
gy team
s conti
nue to
col
labo
rate to provide re
liab
le, sc
alab
le and c
os
t-ee
ctive
sol
ution
s, targ
eted at are
as of gre
atest o
pp
or
tunit
y for
future at
ta
cks.
Our in
formatio
n se
curit
y strate
gy and p
rogram
me is
overs
een by an E
xec
utive Se
curit
y C
ompl
ianc
e Co
mmit
tee
and su
ppo
rte
d and revi
ewed by inter
nal an
d extern
al
as
suran
ce ac
tivitie
s, inc
ludin
g PC
I ass
es
sme
nts
.
An ex
tensi
ve sec
urity m
etric
s pac
k is pro
duce
d mo
nthly
to track ri
sk tren
ds, op
eratio
nal e
ec
tivene
ss an
d
mitiga
tion ac
tivitie
s.
T
o m
itigate sp
ec
ii
c risks in re
lation to o
ur Gre
ater Chi
na
regio
n, our lo
ca
l team ha
s co
nduc
ted intern
al as
se
ss
ment
s
of se
curit
y co
mplia
nce a
nd reme
diate
d gap
s, sup
por
ted
by IH
G’s Glob
al Infor
mation S
ec
urity te
am.
Se
e also p
age 3
8 for d
etail of o
ur app
roac
h to handli
ng
inform
ation res
po
nsib
ly in ac
cord
ance w
ith our p
olici
es
and p
rivacy co
mmitm
ents
, inclu
ding work
ing with ve
ndo
rs.
Strate
gic Re
po
rt
44
IH
G
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ris
k & tre
nd
Channel management and technology
Inv
e
stment e
ectiv
eness and eici
ency
Descript
ion
Failure to cap
itali
se on in
novation in b
oo
king te
chno
log
y
and to ma
intain a
nd enh
anc
e the fun
ction
alit
y and
resilience o
f our channel
management and t
echnology
plat
form
s (incl
uding th
ose o
f third-
par
tie
s, on whi
ch we
rely dire
ctly o
r indire
ctly), and to res
pon
d to chan
ging
gue
st and ow
ner n
ee
ds rem
ains a pr
incip
al risk to I
HG
’s
revenue
s and grow
th am
bition
s.
The im
por
t
ance o
f our inves
tment e
ec
tivene
ss a
nd
e
icie
ncy will b
e critic
al to ba
lanc
e sho
rt- and lo
nge
r
-term
strate
gic ne
ed
s (
e.g. devel
opin
g infras
tructu
re, incre
asin
g
grow
th of our sys
tem, en
hanc
ing digit
al c
apab
ilitie
s)
.
Failure to mana
ge ris
ks as
soc
iated wi
th investm
ents m
ay
impa
ct co
mme
rcial p
er
forma
nce, l
ead to 
inan
cial l
oss a
nd
undermine
stakeholder
conidence.
Lin
k to
strategy
Tr
e
n
d
s
ob
se
rve
d
in 2021
Unc
er
tai
n dem
and as th
e indu
str
y rec
overs cre
ates
dyna
mic and r
apid tre
nds to how we s
er
vic
e dem
and
through var
ious channel
s and meet increasing gues
t and
owne
r expe
ctati
ons, i
nclu
ding how we u
se dat
a to
pers
onalise experience
s and build loyalty
.
The p
ace o
f innovatio
n in digit
al be
haviou
rs in the
hos
pit
alit
y indus
tr
y and wid
er s
ocie
ty c
ontinue
s to
acc
ele
rate, with fa
st-movin
g glob
al and l
oc
al com
petito
rs,
and te
chno
log
y repla
cing c
er
tain e
lem
ents o
f bus
ines
s
travel, and I
HG m
ust evol
ve to eec
tively grow an
d
com
pete in th
e marketpl
ace
.
Additi
onal ri
sk co
me
s from the cu
rrent co
ntext, in
clud
ing
in
anci
al and in
lati
onar
y pre
ss
ures on ow
ner
s who rel
y
on us fo
r their s
cal
e, cap
abili
ties an
d enterp
rise s
trength
,
and c
ons
traints an
d risks i
n the hirin
g and retenti
on of
top tal
ent in th
e hos
pita
lity i
ndus
try.
We are highly d
epe
nde
nt on sig
ni
icant c
api
tal inves
tment
to renovate our exi
sting e
st
ate, sign ne
w hotels a
nd bui
ld
IH
G’s pipe
line an
d the cur
rent op
erating e
nvironm
ent
has c
reated a
dditi
onal c
halle
nge
s for own
ers, i
nclu
ding
in
anci
ng co
nstrai
nts, co
mmo
dit
y and raw ma
terial p
rice
inlat
ion, su
pply chai
n constr
aints
, labour
and general
prod
uct sh
or
tag
es, s
hif
ting gu
est ex
pec
tatio
ns an
d volatile
dem
and p
atte
rns. A
s such, i
t is par
tic
ularly i
mpo
rt
ant that
our e
nterpris
e ca
pabil
ity i
s strong to all
ow owne
rs to deli
ver
con
sis
tently sup
eri
or returns th
at ca
n attra
ct this c
apit
al.
We are also i
ncrea
sing o
ur interde
pe
nde
ncie
s with
third-
par
tie
s to deli
ver our C
omm
ercia
l and T
ech
nolo
gy
strate
gy
, p
laci
ng emp
has
is on ris
k owne
rshi
p within
ong
oing ma
nag
eme
nt of contr
act rel
ation
ship
s and the
resil
ienc
e of, and due dilig
enc
e in rel
ation to, key suppli
ers
.
Initiatives
to re
sp
on
d
While t
he pan
dem
ic has b
ee
n limitin
g due to de
crea
se
d
availabi
lity o
f capi
tal, c
apa
cit
y and c
apab
ilitie
s, we
be
ne
ited f
rom prio
r progre
ss we ha
d mad
e in our
organ
isati
ons to ma
nage r
isks, by si
mplif
yin
g our work
,
se
quen
cing it m
ore e
ective
ly and re
moving o
bst
acl
es
and lim
itatio
ns with
in eac
h core are
a. As s
uch, we are
able to re
sp
ond rap
idly to shi
ft
s and o
ppo
rtun
ities in
the ma
rketplac
e and c
an drive in
crem
enta
l revenue
by focus
ing on th
e bas
ics o
f pricin
g, inventor
y and
booking-low opt
imisati
on.
Our M
arketing an
d Co
mme
rcial an
d T
e
chno
log
y teams
work in p
artn
ers
hip to prio
ritis
e eor
ts a
nd as
so
ciate
d
investm
ents in d
riving e
nhan
ce
d cus
tomer-c
entrici
ty
,
by develo
ping an
d iteratin
g a roadm
ap for key initiati
ves,
their p
ac
e, se
quen
ce an
d intend
ed foc
us for te
chno
log
y-
ena
ble
d trans
formati
on over the n
ext thre
e year
s and
beyon
d (see pa
ge 2
2 for mo
re detai
ls). W
e have als
o
est
abl
ishe
d a ce
ntral pro
gramm
e oversig
ht func
tion
des
igne
d to supp
or
t and m
onitor p
rogre
ss, c
halle
nge
app
roach
es an
d reso
lve is
sue
s relatin
g to execution
.
We will als
o contin
ue to focu
s on deve
lopi
ng our
cap
abili
ties an
d ens
uring th
at we have the ta
lent n
ee
ded
.
While we h
ave see
n the ad
dition o
f top se
nior le
ad
ersh
ip
tal
ent to our te
ams, it w
ill be key to prior
itise di
gital
capabilities to drive our
channel
s, actively e
xpanding the
brea
dth and d
epth of o
ur digit
al rela
tions
hips wi
th current
and new
guests.
T
o m
itigate sp
ec
ii
c risks for l
oc
al market
s, we have
devel
ope
d a Chin
a Digi
tal roa
dmap a
nd inves
tment to
stren
gthen o
ur lo
cally re
levant dig
ital a
nd loyalt
y oer
ing.
Our F
inan
ce tea
ms regu
larly revi
ew and evolve o
ur
gov
ernance and con
trol
frame
work
s, includ
ing delegat
ed
app
roval authori
ties an
d proc
es
se
s, to ena
ble de
cis
ions
on inves
tment
s to be ma
de quic
kly an
d e
icie
ntly with
con
sid
eratio
n of the ris
ks involved
. The E
xecu
tive Co
mmit
tee
dis
cus
ses o
ur strate
gic pri
oritie
s and c
apab
ilitie
s to
deliver
them.
Our gl
oba
l and reg
iona
l Ope
ration
s team
s maint
ain a glo
bal
proje
ct trac
ker which a
llows us to h
ave visibi
lity a
nd review
any risks an
d opp
or
tunitie
s to any in-
light o
r pen
ding
proje
ct with i
mpac
t on hote
ls.
With l
earni
ngs from th
e pan
demi
c and c
onsi
derin
g the new
ope
rating c
ontex
t, we es
tabl
ish
ed a new s
trategi
c priori
ty
in be
ing cu
stome
r centr
ic in all we do to fu
rth
er stre
ngthe
n
owne
r return on inves
tment a
nd to ac
cel
erate our n
et
system s
ize grow
th in the re
cover
y
.
We are instill
ing sp
eci
ic retu
rn on inves
tment di
scip
line
s
through o
ur ‘
Think re
turn’ beh
aviour an
d are app
lying
enh
ance
d de
sign an
d proc
ureme
nt proc
es
se
s to reduc
e
the co
st, a
lleviate l
abo
ur pres
sure
s and m
aintain th
e qual
ity
of our b
rand
s in new bra
nd protot
ype
s. We have als
o
simp
li
ied g
overnan
ce with a s
enio
r executive s
teeri
ng
com
mit
tee provid
ing overs
ight of key glob
al works
treams
.
We are strateg
icall
y plan
ning our s
ourci
ng acti
vities a
round
know
n or antici
pated c
os
t and sup
ply ch
alle
nge
s for our
owne
rs. M
any goo
ds an
d ser
vic
es in th
es
e area
s are also
intrins
ica
lly linked to ou
r resp
ons
ible p
rocure
ment p
lan
to
deliver
sustainable
, div
erse and
risk
-managed supplies
to our hote
ls. S
ee p
age 3
9 for more d
etai
l.
45
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Our ri
sk managemen
t
Our r
isk ma
na
gemen
t
c
o
ntin
u
e
d
Ris
k & tre
nd
Leg
al, r
egu
lato
ry a
nd et
hic
al co
mp
lian
ce
Financial management and cont
rol s
ystems
Descript
ion
As we op
erate in m
ore than 1
00 c
ountrie
s we are expo
se
d
to many die
rent co
mpli
ance, re
gulato
ry a
nd litig
ation
and re
puta
tion ris
ks. Sig
ni
icant 
ine
s ca
n be imp
os
ed
for regu
lator
y non
-
co
mplia
nce, I
HG m
ay be expo
se
d to
litigati
on ris
k and st
akeho
lde
rs (inc
luding c
orp
orate s
ales
clie
nts) and inves
tors foc
us on I
HG
’
s pe
rfo
rmanc
e in
upholding ethical and social expe
ctations.
A materi
al bre
akdown in i
nanc
ial ma
nage
ment a
nd co
ntrol
system
s would l
ead to in
crea
se
d publi
c scru
tiny
, reg
ulator
y
investig
ation an
d litiga
tion. M
ateria
l weakn
es
se
s may als
o
impa
ct co
n
iden
ce in I
HG fro
m our sh
areho
lde
rs and w
ider
stakeholders
includin
g suppliers,
debt holders,
hotel
owners
and emplo
yees.
Lin
k to
strategy
Tr
e
n
d
s
ob
se
rve
d
in 2021
The global
business regula
tory and cont
ractual
environment and societal expect
ations have
continued
to evolve throu
ghout 2
02
1, with le
gisl
ative cha
nge
s in
many lo
catio
ns we op
erate in o
n topic
s suc
h as dat
a
priva
cy
. M
any cou
ntries are intro
duc
ing le
gisl
ation
or le
gisl
ative prop
os
als rel
ated to ES
G age
ndas a
nd
a focu
s on sa
nctio
ns as a fo
reign p
olicy too
l conti
nue
s
to i
ncrease.
E
xpe
ctati
ons are al
so in
crea
sing for I
HG to m
anag
e and
driv
e r
esponsible business t
hroug
h our
supply cha
ins and
across our w
ider business including
with ou
r franch
isees.
We expec
t mon
itoring an
d scru
tiny of corp
orate hu
man
rights p
er
form
ance to c
ontinu
e to incre
ase a
s a direc
t
resul
t of the C
ovid-19 c
risi
s and with h
igh pro
ile up
com
ing
events in
clud
ing the FI
F
A World Cup Q
ata
r 202
2.
Ris
k levels h
ave remain
ed rel
atively s
tab
le, with c
ontinui
ng
moni
toring re
quired i
n relatio
n to owner c
redit ri
sks an
d
pote
ntial co
mme
rcial dis
pute
s while th
e pan
demi
c
rec
overy p
rogre
sse
s. We have ma
de so
me revis
ion
s to our
contro
l testin
g which a
lign with th
e app
roach of o
ur new
audito
rs, P
wC, a
nd the
re were no ma
jor new a
cc
ounting
sta
ndard
s with a mate
rial imp
act e
ec
tive this ye
ar
. We are
monitor
ing t
he UK Gov
ernment consu
ltation
on corporat
e
gover
nan
ce refo
rm.
Initiatives
to re
sp
on
d
Our Ethi
cs an
d Com
plian
ce te
am focu
ses o
n ens
uring
IH
G has a gl
oba
lly co
ordina
ted app
roac
h to materia
l
ethical and complianc
e risks. The ov
erarching framework
is the I
HG C
od
e of Co
ndu
ct (see p
age
s 37 and 3
8) and
e
-le
arning i
s provid
ed to co
rpor
ate and res
er
vation
emp
loyees a
nd man
age
d hote
ls on an an
nual b
asi
s.
Our Ethi
cs an
d Com
plian
ce te
am moni
tor e
-le
arning
training comple
tion, gifts and e
ntertainm
ent repor
ting
and th
e owner d
ue dilig
enc
e proc
es
s. Th
e team al
so
rec
eive inform
al que
ries a
nd/or esc
alatio
n of is
sue
s
direc
tly from c
olle
ague
s and v
ia an Ethic
s and
Co
mplia
nce e
mail c
hann
el whic
h is pub
lici
sed i
n training
and awareness materials. The Bo
ard r
eceives regular
repo
rt
s on the C
on
id
ential R
epo
rtin
g Cha
nnel
. We also
conti
nue to par
tic
ipate in T
rans
pare
ncy Inter
nation
al UK’s
Co
rpor
ate Anti-
C
orrupti
on B
ench
mark
.
We monitor a
nd ad
vise in
ternal s
takeh
olde
rs on ri
sks
acro
ss a ran
ge of reg
ulator
y is
sue
s, inc
ludin
g safet
y
,
emp
loyme
nt, co
ntract
, privacy, anti-brib
er
y an
d anti-tru
st,
as well a
s co
ntinuing to id
entif
y an
d addre
ss le
gal a
nd
regul
ator
y iss
ues th
at have em
erge
d in relati
on
to C
ov
i
d-1
9.
We also m
onitor a
nd as
se
ss deve
lopm
ents i
n relatio
n to
regul
ation
s, pote
ntial sa
nctio
ns or di
rective
s imp
ose
d by
governm
ents
, and ou
r owner l
ega
l due dili
gen
ce pro
ces
s
incl
ude
s scre
enin
g again
st s
anctio
ns lis
ts. Eth
ics an
d
com
plian
ce c
ountr
y-leve
l due dil
igen
ce is un
der
t
aken
for new c
ountr
y entr
y as
se
ss
ment
s and we c
ontinu
e
to develo
p our su
pplie
r due dil
igen
ce pro
ce
ss.
We are comm
itte
d to ongo
ing as
se
ss
ment an
d work on
huma
n rights ri
sks as an i
ntegral p
ar
t of our J
ourney to
T
omorrow
commitments
(
see page 26
).
The im
pac
t of Covi
d-19 on o
ur in
anc
ial rep
or
ting an
d
contro
l environm
ent h
as be
en si
gni
ica
nt and pre
se
nted
severa
l chall
eng
es. T
here h
ave however als
o be
en
opp
or
tunitie
s to evolve our a
ppro
ach in c
er
tain a
reas,
and th
e Fina
nce l
ead
ers
hip team h
as co
ntinue
d to review
controls
and implement
enhancements including
increased
use o
f remote tes
ting, rob
otic pro
ce
ss au
tomatio
n and
dat
a analy
tic
s. We have al
so es
tab
lish
ed a c
ommit
tee w
ith
resp
on
sibilit
y for c
entral c
o
-o
rdinatio
n of co
ntrol acti
vit
y
whic
h bring
s togeth
er Se
nior Le
ad
ers in th
e organi
sati
on
resp
on
sible fo
r as
suran
ce ac
tivitie
s to review st
atus an
d
sc
ope, eval
uate co
ntrol in
ding
s, and c
ons
ide
r eme
rging
regulat
or
y dev
elopments.
We continu
e to review our b
usin
es
s conti
nuit
y
arrang
eme
nts, i
nclu
ding for ou
r Indi
a-
bas
ed G
lob
al
Bu
sine
ss S
er
vice C
entre, g
iven the o
per
ationa
l impo
rt
anc
e
of proc
es
se
s loc
ated th
ere su
ch as ac
co
unts payab
le,
billin
g and c
ash c
olle
ctio
n, and 
inan
cial re
por
ting fo
r both
corporat
e and ho
tels.
We have contin
ued to op
erate a
n est
abli
she
d in
anci
al
contro
l system, w
hich i
s veri
ied th
rough te
sting rel
ating to
our S
arban
es
-
Oxley c
omp
lianc
e resp
on
sibiliti
es. S
ee p
age
s
57
, 1
56, 16
9 to 173 for det
ails o
f our app
roac
h to taxatio
n,
pag
es 9
6 to 97 for det
ails of o
ur app
roac
h to internal
in
anci
al co
ntrol, and p
age
s 188 to 19
2 for sp
ec
ii
c det
ails
on inancial risk mana
gement policie
s.
IH
G’s mana
gem
ent of fra
ud risk i
s an integ
ral par
t of o
ur
broa
der ri
sk man
age
ment sy
stem, in
clud
ing inhe
rent ris
ks
to travel indu
str
y loyalt
y progr
amme
s. Th
e man
age
ment
of frau
d is the re
spo
nsib
ilit
y of man
agem
ent te
ams with
in
regio
ns an
d functi
ons an
d is sup
po
rte
d by exper
tis
e from
Ris
k and As
sura
nce an
d Glo
bal F
inan
ce who a
lso tra
ck a
rang
e of indic
ators a
nd rep
or
t per
iodic
ally to th
e Audit
Co
mmit
tee on f
raud ris
k man
age
ment p
roce
dure
s,
including 
inancial and no
n-
inancial fac
tors.
Our G
roup in
suran
ce pro
gramm
es are al
so mai
ntain
ed
to supp
or
t in
anci
al st
abilit
y
.
Strate
gic Re
po
rt
46
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ris
k & tre
nd
Sa
fety a
nd s
ec
urit
y
Env
ironmen
tal
and socia
l megatr
ends
Descript
ion
The m
anne
r in whic
h IH
G resp
ond
s to ope
ration
al risk
and th
e step
s taken to sa
fegua
rd the safe
ty an
d se
curit
y
of co
llea
gue
s and gu
est
s will co
ntinue to re
ceive s
crutiny
,
par
ticu
larly in li
ght of the p
ande
mic, an
d coul
d resul
t in
avoidab
le harm to I
HG
’s reputati
on for hig
h stan
dards
of bu
sine
ss c
ondu
ct, re
sult in 
ina
ncial d
ama
ge, cla
ims
agai
nst I
HG an
d unde
rmine c
on
id
enc
e in our br
ands
.
As a glo
bal b
usin
es
s, IH
G fac
es unc
er
ta
inties re
lating to
evolvin
g environm
ent
al and s
oci
al me
gatrend
s and o
ur
resp
on
se to the
se ha
s the pote
ntial to imp
act p
er
forma
nce
and grow
th in key markets a
nd is s
ubje
ct to scru
tiny from
a wide
range of
stak
eholders, includ
ing r
egulators
and
investor g
roups, c
orp
orate cli
ents
, gues
ts an
d coll
eag
ues
.
Lin
k to
strategy
Tr
e
n
d
s
ob
se
rve
d
in 2021
The s
crutiny of o
ur ope
ration
s in relati
on to our C
ovid
-19
resp
on
se co
ntinue
d in 202
1 ac
ross a
ll markets
. The ri
sks
above rel
ate both to ou
r direct o
pe
ration
s in hotel
s and
other l
oc
ation
s where we h
ave mana
gem
ent res
pon
sibil
ity
,
and al
so to out
sou
rced a
ctiviti
es an
d other
s with who
m
we col
labo
rate and tra
de, inc
ludin
g the owne
rs of o
ur
franc
hise
d hote
ls whic
h ope
rate as in
dep
end
ent bu
sine
ss
es
.
The fo
cus o
n comp
anie
s acti
ng resp
on
sibly a
nd be
ing
true to the
ir purp
os
e has b
ee
n heighte
ne
d by the pan
demi
c
and wil
l contin
ue into the fu
ture. Thi
s inclu
des i
nvestor
focu
s, whic
h is re
lec
ted by the in
crea
sing re
quirem
ents fo
r
targ
ets an
d deta
iled d
ata from r
atings an
d res
earch p
rovider
s.
The d
etail o
f our TCFD ri
sk as
se
ss
ment i
s inclu
de
d on
pa
ge
s
32 to 35, h
ighlightin
g four mo
st po
tentially m
ateria
l
medium- to long
er-term risks, a
nd we will c
ontinu
e to
as
ses
s the a
ggreg
ate impa
ct of cli
mate cha
nge on o
ur
wide
r st
akehol
ders i
nclu
ding ou
r third-
par
t
y hotel own
ers
.
Short-t
erm climat
e
-related fact
ors are
also incr
easingly
bei
ng co
nsid
ered w
ithin othe
r risk
s, incl
uding gu
es
t
expe
cta
tions of t
he sus
tain
abilit
y of o
ur bran
ds and m
acro
exte
rnal fa
ctors in
clud
ing extre
me we
ather eve
nts.
Initiatives
to re
sp
on
d
Our B
usi
nes
s Rep
utatio
n and Re
sp
onsi
bilit
y team
coordinat
es and mon
itors
IHG’s g
lobal safe
ty management
system
, which i
s des
igne
d to anticip
ate and id
entif
y s
afety
and s
ecur
ity ri
sks in an evol
ving la
nds
cap
e and p
rovide
app
ropriate l
evels of c
ontrol ne
ce
ss
ar
y to mitigate a
gain
st
signi
ic
ant in
cide
nts, wh
ethe
r in hotel
s or co
rpor
ate
o
ice
s. Re
giona
l and glo
bal s
ubje
ct mat
ter s
pec
ialis
ts in
safet
y an
d sec
urit
y work regu
larly wi
th hotel
s, ope
ration
s
lea
der
s, and o
pe
rations s
upp
or
t team
s such a
s De
sign an
d
Engin
ee
ring, Foo
d and B
everag
e and H
uman Re
sou
rces
, to
review an
d set op
erati
onal s
afet
y and s
ecuri
ty p
olic
ies an
d
proc
edu
res. T
his work
ing rel
ations
hip ha
s be
en pa
rtic
ularl
y
impo
r
tant dur
ing the p
ande
mic whi
le gue
st an
d coll
eag
ue
safet
y ha
s be
en I
HG
’
s core p
riorit
y
.
Subj
ect m
atte
r spe
cial
ists h
ave also c
ontinu
ed to mo
nitor
loc
al law an
d pub
lic he
alth gui
danc
e and ex
terna
l trend
s
that may im
pac
t the safe o
pe
ration of h
otels, c
ustom
er
expe
cta
tions
, and deve
lopm
ent op
po
rtun
ities (e.g. i
re
safet
y
, food a
llerge
ns, o
per
ationa
l sec
urit
y threat
s and
natura
l cat
astrop
hes), and we c
ontinu
e to review our
relevant s
tan
dards a
nd guid
anc
e as the
se is
su
es evolve
and n
ew regul
ator
y require
ment
s and b
est p
racti
ce
s
are published. Our sp
ecialists regularly advise region
al
Deve
lopm
ent an
d Op
eratio
ns team
s abo
ut pote
ntial
se
curit
y and thre
at ris
ks in relatio
n to new co
untr
y entrie
s
and new
hot
el pro
jects.
Our s
pe
ciali
sts al
so mo
nitor a ran
ge of intern
al ind
icator
s
relatin
g to safet
y and s
ecu
rity to c
on
irm that o
ur app
roach
to mitigatin
g safet
y ris
ks acro
ss our b
usi
nes
s is b
eing
active
ly ad
opted in a
ll regio
ns, an
d produ
ce
s expe
cted
outc
ome
s. D
esp
ite our be
st e
or
ts, in
cide
nts will o
cc
ur
acro
ss our g
lob
al hotel o
pera
tions a
nd co
rpora
te oic
es;
we use th
es
e incid
ents a
s an op
por
tunit
y to le
arn, es
ca
lating
the mo
st se
riou
s for se
nior m
anag
eme
nt atte
ntion.
The B
oard re
cei
ves and rev
iews reg
ular s
afet
y repo
rt
s and
monitor
s safety performance.
Throug
h this
monit
oring,
IH
G can d
etermin
e whe
re additi
onal s
tan
dards o
r guid
ance
may be n
ece
ss
ar
y or wh
ethe
r existin
g contro
ls may ne
ed
to be ad
juste
d.
Our C
orp
orate Re
spo
nsib
ilit
y team have re
in
ed our
app
roach a
nd enh
anc
ed ou
r disc
losu
res to me
et the
expe
cta
tions of o
ur investo
rs and th
e requ
ireme
nts of thi
s
evolvin
g regul
ator
y environm
ent. We al
so work to
gethe
r
with gove
rnment
s and in
dus
try a
ss
ociati
ons to e
nsure ou
r
voice i
s hea
rd amon
g key stakeho
lde
rs, as we
ll as b
eing
able to a
dvoc
ate for our in
dus
try a
nd our own
ers
.
Our p
repare
dne
ss a
nd resi
lienc
e to clim
ate chan
ge is
bei
ng emb
ed
ded i
nto existing ‘
busi
nes
s as u
sual
’ proc
es
se
s
followi
ng our p
rojec
t to supp
or
t the TCFD re
com
men
datio
ns.
T
o re
duc
e our c
arbo
n footpri
nt overall we have up
grad
ed
our s
cien
ce
-b
ase
d ta
rget and c
reated a ro
adm
ap with
intern
al targe
ts to trac
k and rep
or
t prog
ress a
gain
st this
com
mitme
nt. Key elem
ent
s of our roa
dmap i
nclud
e
supp
or
ting o
ur hotel
s to dec
arbo
nis
e through im
proved
ene
rgy e
icie
ncy an
d switchin
g to renewab
le en
ergy.
Se
e pag
es 29 to 3
5 for de
tail
s of our envi
ronme
ntal p
olici
es
and ini
tiatives a
nd the m
eas
ures we wil
l use to trac
k and
repo
rt p
rogre
ss ag
ains
t our new c
omm
itment
s.
Duri
ng 202
1 seve
ral IH
G team
s worked toward
s an agre
ed
set of b
athroo
m bulk p
roduc
t oeri
ngs, a
s par
t of our
strate
gy to redu
ce sin
gle us
e pla
stic
s. We are als
o fur
ther
investin
g to provide tra
ining an
d tool
s to increa
se
proc
ureme
nt cap
abili
ties in s
ourcin
g and imp
lem
enting
supplier div
ersity
, sustainability and
risk management.
Our l
ong
-st
andi
ng co
mmitme
nt to ope
rating o
ur bus
ines
s
resp
on
sibly h
as un
derpi
nne
d the ac
tions we a
re takin
g in
our lo
ca
l comm
unitie
s (see pa
ges 2
7 and 28), for exa
mple
through j
ob cre
ation, up
skil
ling an
d our sup
por
t for
vuln
erabl
e pe
opl
e during th
e pand
emic
. We also m
aintain
ed
our fo
cus on wo
rking a
nd livin
g con
dition
s for migr
ant
workers a
s well as to
pic
s such a
s resp
ons
ible re
cruitm
ent
and c
ontinu
e to enga
ge on in
dustr
y c
ollab
orati
on initia
tives
whic
h are addre
ss
ing the
se ris
ks.
Our val
ues a
nd be
haviou
rs, pro
moted by ou
r Co
de
of Co
ndu
ct, info
rm our de
cis
ion
-ma
king at al
l levels
.
Our P
rocurem
ent, L
ega
l and Ri
sk team
s als
o moni
tor supp
ly
chai
n and la
bour p
racti
ces r
isks (see p
age
s 26 an
d 39).
47
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Our ri
sk managemen
t
Vi
ab
ilit
y
s
t
at
e
m
e
nt
D
urin
g 202
1 th
e hos
pit
alit
y in
dus
tr
y co
ntinu
ed to b
e
imp
ac
ted by th
e ong
oin
g pan
de
mic
. T
ra
din
g did h
owever
rec
over si
gni
ic
ant
ly duri
ng th
e year, with RevPAR up
46
% on 20
20 an
d retu
rnin
g to 70% of 20
19’s pre
-p
an
dem
ic leve
ls.
The re
si
lie
nce o
f the G
rou
p’
s fee
-b
as
ed m
od
el an
d wid
e ge
ogra
ph
ic
sp
rea
d res
ulte
d in G
rou
p adj
uste
d fre
e ca
sh l
ow
a
of $57
1 mil
lion
duri
ng 20
21 an
d ne
t deb
t red
uc
ed by $6
48 m
illi
on. O
ur we
ight
ing
toward
s up
pe
r mid
sc
ale h
otel
s in no
n-
urba
n lo
cati
ons w
ith l
ower
reliance on
discretionary corporat
e and i
nternat
ional tra
vel has
sup
po
rte
d IH
G’s per
form
anc
e. Th
e Gro
up’s busi
ne
ss m
od
el is
dis
cu
ss
ed i
n mor
e det
ail on p
ag
es 10 t
o 13.
Loo
king for
ward, th
e Dire
ctors h
ave determin
ed th
at the thre
e-ye
ar
pe
riod to 31 D
ec
emb
er 20
24 is an ap
propri
ate per
iod to be c
overed
by the viability statement. The Group’
s annual 
inancial planning
proc
es
s buil
ds a thre
e-yea
r plan
. This d
etai
led p
lan t
akes into
Prin
cip
al ris
ks
The re
lative stre
ngth an
d resili
enc
e of the I
HG bu
sine
ss m
ode
l to
severe s
hoc
ks has b
ee
n proven by pe
rfo
rmanc
e throu
gh the C
ovid-19
pan
demi
c with po
sitive c
ash 
lows b
eing g
ene
rated thro
ugh on
e of
the mo
st ch
alle
nging p
erio
ds of tra
ding in th
e histor
y of th
e indu
str
y
.
In as
se
ssi
ng the vi
abilit
y of the G
roup, the D
irec
tors have co
nsi
dere
d
the imp
act o
f the prin
cipa
l risks a
s outlin
ed on p
age
s 42 to 47
.
The di
scu
ssi
on on th
ose p
age
s incl
ude
s a des
criptio
n of the tre
nds
obs
er
ved d
uring 20
21 an
d how the G
roup cre
ates re
silie
nce to an
d
man
age
s the ris
ks.
We have con
side
red whi
ch prin
cipa
l risks c
ould h
ave the mos
t
signi
ic
ant an
d direc
t impa
ct to the vi
abilit
y of the G
roup dur
ing
the thre
e
-year pe
riod of a
ss
es
sme
nt and th
ey are shown b
elow,
alon
gsid
e the s
cen
ario that i
s use
d to mod
el tho
se ri
sks. T
he imp
act
of clim
ate risks a
nd co
sts to ad
dres
s them h
ave also b
ee
n as
ses
se
d
but are n
ot con
sid
ered m
aterial ove
r the pe
riod o
f ass
es
sme
nt.
Scenarios
modelled
Rel
ate
d to p
rin
cip
al ri
sks
Ch
an
ge
s in RevPAR
Dow
nsi
de C
ase a
nd S
evere D
own
sid
e Ca
se
The
se s
ce
nar
ios m
od
el a pro
lon
ge
d de
crea
se in R
evPAR, w
hic
h may
be dr
iven by ex
ter
nal o
r inter
nal f
acto
rs.
Ma
cro ex
tern
al fa
ctor
s
Prefe
rre
d bran
ds a
nd loyal
ty
Leadership
and ta
lent
Safe
ty a
nd se
cu
rit
y
Financial
management and
contr
ol sy
stems
One-o events
Thi
s sc
ena
rio mo
de
ls th
e imp
act o
f a spe
ci
i
c mate
rial in
cid
ent
, whic
h
co
uld re
late to cy
be
r sec
urit
y or a
n alte
rnati
ve mate
ria
l impa
ct o
n the
cash low
stat
ement.
Cy
be
rse
cu
rit
y and in
form
atio
n gover
nan
ce
Leg
al, re
gul
ator
y an
d ethic
al c
omp
lia
nce
a
U
se of N
on
-
GA
AP m
ea
sure
s: I
n add
itio
n to p
er
form
an
ce m
eas
ure
s dir
ect
ly ob
se
rv
abl
e in th
e Gro
up Fi
nan
ci
al St
ate
me
nts (I
FR
S me
asu
res), a
ddi
tio
nal 
in
anc
ial m
ea
sur
es
(des
cri
be
d as N
on
-
GA
AP) are p
re
sen
ted t
hat a
re us
ed in
tern
all
y by ma
nag
em
ent a
s key me
as
ures t
o as
se
ss p
er
for
man
ce
. No
n-
GA
AP m
ea
sur
es ar
e eith
er n
ot de
i
ne
d und
er I
FR
S
or ar
e adj
ust
ed I
FRS 
ig
ures
. Fur
the
r exp
lan
ati
on in re
lat
ion to t
he
se m
eas
ure
s ca
n be fo
und o
n pa
ge
s 73 to 7
7 an
d rec
on
cil
iati
ons t
o IFR
S i
gure
s, w
he
re they h
ave b
ee
n adj
uste
d,
are o
n pag
es 2
18 to 2
2
3.
con
sid
eratio
n the prin
cipa
l risks, th
e Grou
p’
s strateg
y and cu
rrent
and e
mergin
g market co
nditi
ons
. The pl
an the
n forms th
e bas
is for
strate
gic acti
ons t
aken acro
ss th
e busi
nes
s and i
s use
d for lo
nger-
rang
e plan
ning. Th
e pla
n is reviewe
d annu
ally by the D
irecto
rs.
Onc
e app
roved, the p
lan is th
en c
asc
ade
d to the bu
sine
ss a
nd us
ed
to set p
er
forman
ce m
etrics a
nd obj
ecti
ves. P
er
forman
ce ag
ains
t
thos
e metri
cs an
d obje
ctive
s is regu
larly revie
wed by the D
irecto
rs.
The
re contin
ues to b
e an ong
oing l
evel of mar
ket volatilit
y and ri
sks
of fur
the
r travel restr
ictio
ns in ce
rt
ain ma
rkets. T
here are a wi
de
rang
e of pos
sib
le pl
anning s
ce
nario
s over the thre
e
-year pe
riod
con
sid
ered in th
is review. In as
ses
sin
g the via
bilit
y of the G
roup, the
Dire
ctors h
ave reviewed a nu
mbe
r of sc
enari
os, we
ighting dow
nsid
e
risks th
at would th
reaten th
e bus
ines
s mo
del, f
uture pe
rfo
rmanc
e,
sol
vency an
d liqui
dity o
f the Gro
up more h
eavily th
an opp
or
tunitie
s.
Viability scenarios
and assumptions
In pe
r
forming th
e viabi
lity a
nalys
is, the D
irec
tors have c
ons
idere
d
a ‘B
as
e Cas
e’ whic
h is ba
sed o
n a co
ntinue
d improvem
ent in
dem
and wi
th RevPAR expec
ted to rea
ch 10
0% of 20
19 l
evels
by 2024. T
he as
sum
ptions a
ppli
ed in th
e viabil
ity a
ss
es
sme
nt
are co
nsis
tent with th
ose u
se
d for Grou
p plan
ning pu
rpos
es,
the go
ing co
nce
rn as
ses
sm
ent, for i
mpair
ment te
sting an
d for
reviewin
g recove
rabilit
y of d
eferre
d tax a
sse
ts (see fu
rth
er de
tail
on pa
ge 149).
The D
irec
tors have als
o co
nsid
ere
d a ‘D
ownsi
de Ca
se’
, w
hich
as
sume
s that Rev
P
AR grow
th is red
uce
d by 8% co
mpare
d to
the B
ase C
as
e in 202
2, fo
llowed by s
imilar g
rowth rate
s to the
Ba
se C
ase in 2
023 an
d 2024
. This h
as be
en b
uilt us
ing exte
rnal
market fore
ca
sts for a p
os
sibl
e down
side s
cen
ario.
The D
irec
tors have als
o co
nsid
ere
d a ‘Seve
re Down
side C
as
e’
,
whic
h ass
ume
s no rec
over
y in RevPAR during 20
2
2, with th
e
rec
overy p
roi
le del
ayed by one ye
ar
. T
his woul
d as
sume th
at
the vol
atilit
y and dive
rgenc
e of ma
rket appro
ache
s to man
aging
Covi
d-19 co
ntinue
s durin
g 202
2.
The key as
sumpti
ons in
clud
ed in th
e three
-year p
lan rel
ate
to RevPAR growth a
s explain
ed ab
ove.
Percenta
ge poin
t decr
ease in
RevPAR c
om
par
ed t
o Ba
se C
as
e
In
dex (to 2
019)
2022
2023
2024
Downside
Case
5
5
5
Seve
re Dow
nsi
de C
as
e
15
8
7
Strate
gic Re
po
rt
48
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
We have also c
ons
ide
red the p
rincip
al ris
ks that may imp
act
the via
bilit
y of the G
roup over a l
onge
r
-term p
erio
d, for examp
le,
environmental and social meg
atrends. The physical and transition
clim
ate risks to whi
ch IH
G is mo
st exp
ose
d are dis
cus
se
d in the
TCFD st
atem
ent on p
age
s 32 to 35
. Physic
al risks a
re not co
nsid
ered
materi
al to the lo
ng-te
rm viab
ilit
y of the G
roup, and tran
sitio
n risks
pres
ent b
oth opp
or
tunitie
s and ri
sks.
Fu
n
di
n
g
The exi
sting c
ovenant
s on the G
roup’s syndic
ated an
d bilate
ral
revolvin
g credi
t facili
ties (‘th
e bank f
aciliti
es’
) have be
en ame
nde
d
until D
ece
mbe
r 202
2
. See n
ote 24 for fur
the
r deta
ils. T
he othe
r
as
sumptio
ns rel
ating to de
bt maturiti
es are as fo
llows:
•
Th
e $1.
35 b
illion b
ank fac
ilitie
s mature in S
eptem
ber 2
023
. It ha
s
be
en as
sum
ed th
at thes
e facil
ities a
re renewe
d as they m
ature.
•
£
173 million o
f bon
ds due i
n Novemb
er 20
2
2 are repa
id on
maturit
y
.
•
€
50
0 million o
f bon
ds due i
n Octo
ber 2
024 are rep
aid on m
aturit
y
.
No oth
er new o
r addi
tiona
l in
ancin
g has b
ee
n ass
ume
d in the
analysis per
formed.
Conclusion
The D
irec
tors have as
se
ss
ed the v
iabil
ity of th
e Grou
p over a
three
-yea
r peri
od to 31 D
ec
emb
er 20
24 taki
ng acc
ount of th
e
Group’s current p
os
ition, th
e Group’s strateg
y and the p
rinci
pal ris
ks
doc
ume
nted in the S
trategi
c Repo
r
t. Ba
se
d on this a
ss
ess
me
nt, the
Dire
ctors h
ave a reas
onab
le expe
ct
ation th
at the Gro
up will be a
ble
to contin
ue in op
eratio
n and m
eet it
s liab
ilities a
s they fall d
ue over
the p
erio
d to 31 De
ce
mbe
r 2024.
S
ee al
so ou
r bus
ine
s
s mod
el o
n pag
es 1
0 to 13, th
e goin
g co
nce
rn
as
se
ss
men
t on pa
ge 14
9, and t
he imp
ac
t of the p
rinc
ipa
l ris
ks on
pa
ges 4
2 to 47
.
Viabi
lity
assessment
At 31 De
ce
mbe
r 202
1 the G
roup ha
d ca
sh and c
as
h equi
valent
s
of $1,
30
5 millio
n plus u
ndrawn fa
cilitie
s of $1
,35
0 millio
n.
Und
er the B
as
e Ca
se, Dow
nsid
e Ca
se an
d Severe D
ownsi
de
Ca
se, the G
roup is fo
rec
ast to ge
nerate p
osi
tive ca
sh l
ows over
the 20
2
2
2024 pe
riod a
nd the b
ank fac
ilitie
s remai
n undrawn
.
The p
rincip
al ris
ks which c
oul
d be app
lic
able h
ave bee
n con
sid
ered
and are a
ble to be a
bso
rbe
d within th
e coven
ant requi
reme
nts.
If the
re were ad
dition
al tradi
ng down
side
s to the as
sump
tions
use
d, the
n addi
tiona
l actio
ns co
uld be t
aken in o
rder to mitig
ate
this ris
k suc
h as red
uctio
ns in di
scretio
nar
y sp
end
.
In the S
evere Dow
nsid
e Ca
se, the G
roup stil
l has su
bst
antial l
evels
of exis
ting ca
sh res
er
ves avail
able a
nd is no
t expe
cted to draw
on the b
ank fa
cilitie
s. Th
e Dire
ctors revi
ewed a rever
se stre
ss te
st
sc
enari
o to determi
ne how mu
ch ad
dition
al RevPAR downs
ide
cou
ld be ab
so
rbe
d before u
tilis
ation of th
e bank fa
cilitie
s woul
d
be re
quired
. The D
irecto
rs co
nclu
ded th
at the ou
tcom
e of the
revers
e stres
s test s
howe
d it was ver
y unl
ikely the b
ank fac
ilities
would n
ee
d to be drawn a
nd the
refore the G
roup do
es not n
ee
d
to rely on th
e addi
tiona
l liquid
ity p
rovide
d by the ban
k facili
ties
.
This m
ean
s that in th
e event the c
ovenant te
st was f
aile
d, the ban
k
facil
ities c
ould b
e ca
nce
lle
d by the len
der
s but woul
d not trig
ger
a repaym
ent de
man
d which th
reaten
ed the v
iabili
ty of th
e Group.
In the eve
nt that a fur
the
r coven
ant ame
ndm
ent was re
quire
d,
the Di
rector
s be
lieve it is re
aso
nabl
e to expec
t that su
ch an
ame
ndme
nt co
uld be o
btain
ed b
ase
d on th
eir prio
r expe
rien
ce
in relati
on to ne
gotiatin
g the 202
0 ame
ndme
nts. A
s note
d
above it h
as be
en a
ssu
med th
at the b
ank fac
ilitie
s are renewe
d
as they m
ature. Howeve
r
, a
s explain
ed ab
ove the via
bilit
y of the
group is n
ot dep
en
dent o
n the ban
k facili
ties an
d there
fore not
rel
ia
nt
on
the
s
e a
s
sum
pt
ion
s
. Th
e Grou
p also h
as alte
rnative
optio
ns to man
age thi
s risk in
clud
ing ra
is
in
g a
dd
iti
on
al
fu
nd
ing
in
the c
apit
al markets
. We contin
ue to pla
n to mainta
in an investm
ent
grad
e credi
t rating.
In the eve
nt of add
itiona
l or multi
ple pri
ncip
al risks o
cc
urring
during th
e pe
riod of revi
ew e.g. co
ntinue
d dep
res
sed R
evP
AR
and a wi
des
prea
d cybe
rse
curit
y in
cide
nt, it is exp
ec
ted that t
hes
e
risks c
ould b
e ab
sorb
ed wi
thin the liq
uidit
y he
adroo
m availab
le
witho
ut relyi
ng on the a
dditi
onal li
quidit
y provi
ded by th
e
bank facilities.
49
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Viabilit
y statem
ent
A guide t
o this KPI secti
on
K
e
y
pe
r
f
ormance indi
cat
ors (KP
Is
)
O
ur KPI
s are c
are
fully s
el
ect
ed to al
low us t
o mon
itor
the d
eli
ver
y of our s
trate
gy a
nd lo
ng
-term s
ucc
es
s
.
They ar
e org
ani
se
d aro
und o
ur st
rate
gy
, w
hic
h
ar
ticu
late
s ou
r purp
os
e, am
biti
on an
d prio
ritie
s, (se
e pa
ge 16).
Se
nio
r man
ag
em
ent revi
ew our K
PIs a
nnu
ally to e
ns
ure c
onti
nue
d
alig
nm
ent to o
ur st
rate
gy an
d are in
clu
de
d in inte
rna
l rep
or
ting
and regularl
y monit
ored.
Me
asure
s incl
ude
d are tho
se co
nsid
ere
d mos
t relevant in a
ss
es
sing
the p
er
forman
ce of th
e bus
ines
s and re
late to our grow
th ag
end
a
and c
ommitm
ent to our key st
akehol
der
s incl
uding own
ers
, gue
sts,
emp
loyees
, share
hol
der
s and the c
omm
unitie
s in which we wo
rk.
KPI
s sho
uld b
e read in c
onjun
ctio
n with the oth
er se
ctio
ns of the
Strate
gic Rep
or
t, an
d where a
pplic
abl
e, refere
nce
s to spe
ci
ic
relevant to
pic
s are noted a
gain
st ea
ch KP
I.
KPIs
20
21 s
tat
us an
d 20
2
2 pri
orit
ie
s
Ne
t roo
ms s
upp
ly
Ne
t total n
umb
er of ro
om
s in the
IHG System.
Increasing our
rooms supply
pro
vides
sig
ni
ic
ant ad
vant
age
s of s
cal
e,
including
increasing t
he val
ue of ou
r
loyal
ty p
rogra
mme
. Thi
s me
asu
re is
a key indi
cato
r of ac
hieve
me
nt of ou
r
grow
th ag
en
da (se
e pag
e 16).
A
LT
2021 stat
us
Gro
ss sy
stem g
row
th of 5.0
%; n
et sys
tem si
ze de
clin
e of 0.6
% af
ter 4
9,6
67
roo
ms rem
oved
, inc
lud
ed 3
4,3
4
5 roo
ms fro
m Ho
lid
ay Inn an
d Crow
ne Pl
az
a,
as we c
onc
lud
ed o
ur qu
alit
y revi
ew, takin
g tota
l sup
ply to 8
80,
327 ro
om
s.
Sig
ning
s of 68
,870 ro
om
s (437 ho
tels) re
pre
sen
ted 23
% grow
th on t
he pr
ior
year, but wa
s bel
ow pre
-
pan
de
mic le
vels
, as C
ovid
-19 rel
ate
d cha
llen
ge
s
rem
aine
d in p
lac
e in a num
be
r of ma
rkets
. T
otal p
ip
elin
e of 270,
96
0 roo
ms,
with m
ore th
an 40
% un
der c
on
stru
cti
on, de
cl
ine
d 0.4% c
omp
are
d to 202
0 as
sig
ning
s were o
s
et by 4
3,9
58 ro
om o
pen
ing
s and a n
orm
al leve
l of at
triti
on.
Ove
rall p
er
for
man
ce wa
s drive
n by:
•
Contin
ue
d stre
ngth o
f the H
oli
day Inn B
ran
d Family w
ith 25
,766 roo
ms
op
ene
d an
d 31,16
9 room
s sig
ne
d, rep
res
entin
g alm
ost h
alf o
f all si
gnin
gs.
•
Conver
sio
ns, re
pre
se
nting 2
5% of o
pen
ing
s and 2
2
% of all s
igni
ngs
.
•
Luxur
y & Life
st
yle b
ran
ds ga
inin
g mom
entu
m with 2
8 hote
ls op
en
ed an
d
a fur
the
r 75 p
rop
er
tie
s sig
ned
.
•
F
urt
her g
row
th of ou
r rec
entl
y laun
che
d br
and
s with:
–
avi
d hote
ls, o
ur se
co
nd la
rge
st co
ntrib
uto
r to syste
m grow
th, d
oubl
ing
the nu
mb
er of o
pen p
rop
er
tie
s, t
akin
g the tot
al e
sta
te to 48 h
otel
s, an
d
a fur
the
r 16
4 in th
e pip
eli
ne.
–
th
e fur
the
r glo
bal ex
pan
sio
n of vo
co ho
tels to 6
9 op
en a
nd si
gne
d hote
ls
since launch
in 2018,
across 25 coun
tries.
–
c
ontin
ue
d sign
ing
s pac
e for At
wel
l Suite
s re
sulti
ng in 2
3 pip
elin
e hote
ls
.
–
th
e lau
nch of V
ign
et
te Co
lle
ctio
n, wi
th six p
rop
er
tie
s se
cure
d in the ye
ar
and o
ur 
irs
t hote
l alre
ady o
pen
.
202
2 pri
oritie
s
•
F
oc
us on o
ur am
bitio
n to de
live
r sus
tai
nab
le in
dus
try
-le
ad
ing ne
t syste
m
siz
e grow
th, wi
th le
adin
g bra
nds i
n the la
rge
st ma
rkets a
nd se
gm
ents
.
•
Contin
ue
d foc
us on th
e qua
lit
y of ou
r est
ate, w
ith lowe
r anti
cip
ated f
uture
overa
ll rem
oval rate t
han hi
sto
ric leve
ls
.
•
F
urt
her ro
llo
ut of avi
d hote
ls an
d Atwe
ll Su
ites i
n the U
S, an
d
voc
o hote
ls gl
oba
lly.
•
Exp
and o
ur Luxu
ry & L
ife
st
yle o
er th
roug
h acq
uire
d bra
nds Re
ge
nt,
Six S
en
se
s and K
impto
n, an
d our re
ce
ntly la
unc
he
d Vig
net
te C
olle
cti
on.
Signings
Gro
ss tot
al nu
mbe
r of ro
oms a
dde
d
to the I
HG p
ipe
lin
e.
Co
ntinu
ed s
igni
ngs s
ec
ure the f
uture
grow
th of o
ur Sys
tem a
nd co
ntin
ued
eic
iencies of sc
ale. Signings indicate
our a
bili
ty to d
elive
r su
sta
ine
d grow
th
(see p
ag
e 16).
A
2018
8
36,
541
2017
79
8
,075
2019
88
3,563
2020
886
,
036
2021
88
0,3
27
2018
9
8,8
14
2017
83,4
81
2019
9
7,
7
5
4
2020
56
,14
6
2021
6
8,
870
Lin
k bet
we
en KP
Is an
d Di
rec
tor r
em
une
rat
ion
Whil
st p
er
form
an
ce co
ntin
ued to b
e imp
ac
ted
by Cov
id-1
9 in 20
21, o
ur lo
ng
-term fo
cu
s
rem
aine
d to de
live
r high
-
qua
lit
y grow
th an
d,
as in p
rio
r year
s, Di
rec
tors’ re
mun
era
tion fo
r
202
1 wa
s dire
ctly re
late
d to key as
pe
cts o
f
our s
trate
gy. The foll
owin
g indi
cat
es wh
ich
KP
Is have i
mpa
cte
d Dire
cto
rs’ re
mun
erati
on:
For mor
e inf
ormati
on on Dir
ectors’
remu
ne
ratio
n se
e pag
es 1
04 to 12
5.
A
The Annual
Performance P
lan
•
70% was lin
ked to op
er
ating p
ro
it from
reportable segmen
ts
•
15% was lin
ked to st
rateg
ic fo
cus o
n net sy
stem
siz
e grow
th thro
ugh o
pen
ing
s
•
15% was lin
ked to st
rateg
ic fo
cus o
n future n
et
syste
m si
ze grow
th thro
ugh s
igni
ngs
LT
The L
ong Term In
ce
ntive Pl
an
•
40% wa
s linke
d to T
otal S
har
eho
lde
r Retu
rn
•
20% was l
inked to a
bs
olute n
et sys
tem
siz
e grow
th
•
20% was l
inked to to
tal g
ros
s revenu
e grow
th
•
20% was l
inked to c
as
h l
ow gen
era
tion
Lin
k to ou
r str
ateg
y
Our s
trate
gic p
rio
ritie
s, ref
res
he
d in 20
20, are
co
re to our s
ucc
es
s. O
ur fo
ur stra
tegi
c prio
riti
es
are rep
rese
nted a
s follo
ws:
Customer cent
ric
in all we d
o
Bui
ld love
d an
d
trusted
brands
Create digital
advant
age
Ca
re for ou
r pe
opl
e,
communities and
planet
Strate
gic Re
po
rt
50
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
KPIs
20
21 s
tat
us an
d 20
2
2 pri
orit
ie
s
G
l
o
b
a
l
Re
v
PA
R
b
grow
th
Reven
ue p
er avail
abl
e roo
m:
roo
ms reve
nue di
vid
ed by th
e num
ber
of roo
m nig
hts th
at are avail
ab
le.
RevPAR grow
th i
ndic
ate
s the
inc
rea
se
d valu
e gue
sts a
sc
rib
e to
our b
ran
ds in th
e mar
kets in wh
ich we
op
erate a
nd is a key m
ea
sure wi
de
ly
us
ed in o
ur in
dus
try (s
ee p
age 8).
2021 stat
us
•
RevPAR improve
d in 20
2
1 follo
wing a
n unp
rec
ede
nte
d dec
lin
e in 20
20,
and re
cove
re
d to 70% of 2
019 l
evel
s. Th
e imp
rovem
ent wa
s larg
ely d
rive
n
by d
omestic leisur
e demand,
particularl
y duri
ng holida
y periods,
once
vac
cin
ation r
ates a
llowe
d for re
str
icti
ons to b
e lif
te
d in ma
rkets in
clu
ding
the U
S and U
K
.
•
Throug
h the c
ontin
ue
d cha
lle
nge
s of the p
an
dem
ic we have re
mai
ne
d
co
mmit
te
d to sup
por
tin
g our ow
ne
rs to ma
ximi
se reve
nue
s thro
ugh:
–
En
han
ce
d reven
ue ma
nag
em
ent sys
tem
s to quic
kly i
de
ntif
y and a
ct
on re
venue
opportunities usi
ng business in
telli
gence and da
ta.
–
Im
prove
d rate n
ego
tiati
ons o
n be
half o
f our ow
ne
rs us
ing I
HG
’s
award
-win
nin
g cen
trali
se
d RFP p
roc
es
se
s (CR
FP), wit
h 2,
20
0 hote
ls
now u
sing t
he se
r
vic
e.
–
Re
al
-tim
e targ
ete
d cam
pai
gns an
d pro
moti
ons a
ime
d at key
de
mog
raph
ic
s of retur
ning l
eis
ure an
d bus
ine
ss d
em
and
.
–
Continued i
mplementat
ion o
f mobil
e-
enabled i
mpro
vements
includ
ing
the d
evel
opm
ent an
d pil
otin
g of a nex
t ge
ner
atio
n IH
G mob
ile a
pp,
en
abli
ng a ric
her c
us
tome
r exp
erie
nc
e whic
h is exp
ec
ted to i
ncre
as
e
dire
ct b
ook
ing
s and i
ncre
me
ntal s
pe
nd du
ring s
tays
.
–
C
on
duc
ted d
etai
le
d room i
nvento
ry a
ss
es
sm
ents a
cro
ss 5,
30
0 hot
els by
en
d of 20
21, i
n prep
arat
ion fo
r att
ribu
te pric
ing w
hich w
ill en
ab
le own
ers
to ge
ner
ate max
imum v
alue f
rom the
ir ho
tel
’s uniqu
e attr
ibu
tes.
•
Enterpr
ise c
ontr
ibu
tion im
prove
d to 74% in 202
1, drive
n by digi
tal a
nd
onl
ine trave
l ag
ent (OT
A
) grow
th fro
m stron
g lei
sure d
em
and i
n the su
mme
r
mon
ths, e
sp
ec
iall
y in the U
S. T
his wa
s par
tl
y os
et by c
ontin
ue
d weak
ne
ss
in Gl
ob
al Di
stri
buti
on Se
r
vic
es (G
DS) as c
orp
ora
te dem
and re
ma
ine
d wea
k.
Rewar
d night b
oo
kin
gs la
rgel
y rec
overe
d to pre
-
pan
dem
ic leve
ls
, with
par
ti
cip
ation r
ates o
f our hi
ghe
r tiere
d me
mb
ers
, and p
ar
tic
ular
ly le
isure
customers,
exceeding
2019 lev
els.
•
Laun
ch
ed ou
r ‘
Welc
ome B
ac
k to Bu
sin
es
s’ ca
mpa
ign, a
nd IH
G B
usi
nes
s Edg
e,
our aw
ard-
winn
ing de
di
cate
d SM
E pro
gra
mme, w
hich i
ncre
as
ed i
ts ac
co
unts
by 4
4% to over 57,000, g
aini
ng sh
are.
•
F
urt
her d
evel
opm
ent o
f IH
G Rewar
ds pro
po
siti
on thro
ugh gro
wt
h in Rewa
rd
Nig
ht Dyn
ami
c Pric
ing an
d the ex
te
nsi
on of th
e pau
se o
n poi
nts exp
irati
on
and membersh
ip t
iers.
•
New mar
keting c
amp
aig
ns to str
eng
then o
ur I
HG H
otel
s & Res
or
ts
ma
ster
bran
d to be
tte
r prom
ote ou
r bran
ds
.
202
2 pri
oritie
s
•
Contin
ue to ap
ply t
arg
eted d
ata a
nal
yt
ics a
nd ma
rketin
g to ide
ntif
y an
d
yie
ld reve
nue e
nha
nci
ng op
por
tu
nitie
s.
•
Conti
nue to d
evelo
p our d
igit
al
-
irs
t app
roac
h by leve
ragi
ng our c
lou
d-
ba
se
d
IH
G Co
nc
er
to
TM
platform.
•
Comp
lete i
nventor
y wo
rk on th
e rem
ainin
g hote
ls in o
ur es
tat
e, in sup
po
rt
of the ro
llo
ut of at
tri
bute p
rici
ng via o
ur dir
ect c
han
ne
ls.
•
F
ull roll
-
out o
f the n
ext g
ene
rati
on IH
G mo
bil
e app, o
eri
ng up
grad
ed
ana
ly
tic
s and p
er
son
al m
arketin
g as p
ar
t of our tr
ans
form
ed l
oyalt
y oe
r
.
•
F
urt
her e
nh
anc
e our l
oyalt
y oe
r throu
gh the r
ela
unc
h of IH
G Rewa
rds,
to provi
de m
emb
ers w
ith ri
che
r be
ne
it
s and i
ncre
as
e enro
lme
nt.
•
Maint
ain ou
r foc
us on i
ncre
asi
ng c
ontri
buti
on fro
m IH
G Reward
s me
mbe
rs
and t
hroug
h dire
ct b
ook
ing
s via o
ur web
sit
e or ca
ll ce
ntre
s.
Gr
owt
h in un
de
rlyi
ng
fee r
even
ue
s
a
Gro
up reven
ue fro
m rep
or
tab
le
se
gme
nts exc
ludi
ng reve
nue fro
m
owned,
leased and managed
lease
hotels,
signiicant
liquidat
ed damages
and c
urre
nt year a
cq
uisi
tion
s, s
tate
d
at co
ns
tant c
urre
ncy.
Un
derl
yin
g fee reve
nue g
row
th
demonstrat
es the
continued
at
trac
tiven
es
s to own
ers a
nd gu
es
ts
of IH
G
’s franch
ise
d an
d man
age
d
bu
sine
s
s (see p
age 11).
T
ot
al gross revenue from hotel
s
in IH
G’s Sys
tem
a
T
ota
l room
s reven
ue fro
m
fran
chi
se
d hote
ls an
d tota
l hote
l
reven
ue fro
m man
age
d, own
ed
,
le
ase
d an
d man
age
d le
as
e hote
ls.
Oth
er th
an fo
r owne
d, le
as
ed a
nd
man
ag
ed le
as
e hote
ls, i
t is no
t
reven
ue wh
olly a
ttri
but
ab
le to IH
G,
as it i
s mai
nly de
rive
d from h
otel
s
own
ed by thi
rd par
tie
s.
The g
row
th in gro
ss reve
nue f
rom
IHG’s Sy
stem i
llustra
tes t
he value
of ou
r overal
l Sys
tem to ou
r owne
rs
(see p
ag
e 11).
A
LT
Enterpr
ise contr
ibution
to r
evenue
The p
erc
ent
ag
e of roo
m reven
ue
bo
oked t
hrou
gh IH
G ma
nag
ed
cha
nne
ls an
d so
urce
s: di
rect v
ia
our we
bs
ites
, app
s and c
all c
ent
res;
throu
gh ou
r inter
fa
ce
s with G
lo
bal
Distribut
ion Syst
ems (
GDS) and
agre
em
ent
s with O
nli
ne T
ravel
Age
nci
es (OT
A
s); othe
r dis
trib
utio
n
par
tn
ers d
irec
tly c
onn
ec
ted to o
ur
res
er
vati
on sys
tem; an
d Gl
ob
al Sa
les
O
ic
e bu
sin
es
s or IH
G Rew
ard
me
mbe
rs th
at bo
ok di
rec
tly at a ho
tel.
Ente
rpri
se c
ontri
buti
on is o
ne
ind
ica
tor of I
HG va
lue
-
add a
nd th
e
suc
ce
ss o
f our te
chn
olo
gy p
lat
form
s
and o
ur ma
rketin
g, sa
les a
nd loya
lt
y
dis
trib
utio
n cha
nne
ls (se
e pag
e 11).
a
U
se of N
on
-
GA
AP m
ea
sure
s: I
n add
itio
n to p
er
form
an
ce m
eas
ure
s dir
ect
ly ob
se
rv
abl
e in th
e Gro
up Fi
nan
ci
al St
ate
me
nts (I
FR
S me
asu
res), a
ddi
tio
nal 
in
anc
ial m
ea
sur
es (de
sc
rib
ed
as N
on
-
GA
AP) are p
res
en
ted th
at ar
e use
d int
ern
all
y by man
ag
em
ent a
s key me
asu
res to a
ss
es
s p
er
form
an
ce. N
on
-
GA
AP m
ea
sure
s are e
ith
er n
ot de
i
ne
d und
er I
FRS o
r are a
dju
ste
d
IF
RS 
igur
es
. Furt
her e
xpl
ana
tio
n in rel
ati
on to th
es
e me
asu
res c
an b
e fou
nd on p
ag
es 7
3 to 7
7 and re
c
onc
ili
atio
ns to I
FRS 
ig
ure
s, wh
ere th
ey hav
e be
en a
dju
ste
d, are o
n pa
ge
s 21
8 to 22
3.
A rec
on
cil
iati
on of to
tal g
ros
s reve
nu
e to own
ed, l
ea
se
d and m
an
age
d le
as
e reve
nue a
s re
cor
de
d in the G
rou
p Fin
an
cia
l St
atem
ent
s ca
n be fo
un
d on pa
ge 6
0.
b
C
o
mpa
rab
le Rev
PAR inc
lu
des t
he im
pa
ct of h
ote
ls tem
po
rar
ily c
los
ed a
s a res
ult o
f Cov
id
-19.
2018
2.5%
2017
2
.7
%
2019
-
0.3
%
2020
-
52.
5%
2021
46
.0%
2018
6.4%
2019
2
.0%
2020
-4
5
.0%
2021
3
7.
7
%
2018
$27
.4bn
2017
$25.7bn
2019
$
2
7.
9
b
n
2020
$13.5bn
2021
$19.4bn
2018
78%
2017
76
%
2019
76
%
2020
72%
2021
74%
51
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Key per
forma
nce in
dic
ators (K
PIs)
K
e
y per
f
or
ma
nce i
ndi
ca
t
ors (
KPIs
)
c
o
ntin
u
e
d
KPIs
20
21 s
tat
us an
d 20
2
2 pri
orit
ie
s
Gu
es
t Love
IHG’s g
uest satisfact
ion
measuremen
t indi
cator
.
Gu
est s
ati
sfa
ctio
n is fu
nda
men
tal to
our c
onti
nue
d su
cce
s
s and i
s a key
me
asu
re to mon
itor th
e ris
k of fai
ling
to de
liver p
refe
rred b
ran
ds th
at me
et
gue
st
s’ exp
ec
tati
ons (se
e pa
ge 4
3
for de
tails
).
A
2021 stat
us
•
Gues
t sa
tisf
acti
on of 78
.9
% drop
pe
d sli
ghtly c
omp
are
d to 20
20 re
le
ctin
g
lab
our s
ho
rt
ag
es as w
e eme
rge fro
m the p
and
emi
c. E
xte
rna
lly me
as
ure
d
Gu
est S
ati
sfa
ctio
n Ind
ex (GS
I) ach
ieve
d sc
ores o
f 10
0 or b
ette
r for e
ac
h
bra
nd in 20
2
1, outp
er
fo
rmin
g our p
ee
rs, a s
ucc
es
sf
ul outc
om
e give
n the
evolv
ing gu
est re
quire
men
ts res
ultin
g from Cov
id-1
9.
•
Reviewe
d our H
oli
day In
n and C
rowne P
laz
a e
sta
te, rem
oving 3
4,
34
5 ro
om
s
to foc
us on p
rotec
ting t
he qu
alit
y an
d con
si
sten
cy of th
e bran
d. A fu
rt
her
83 h
otel
s in the A
me
ric
as an
d EME
A
A re
gio
ns have c
om
mit
ted to
imp
rovem
ent pl
ans o
r sc
op
es of wo
rk.
•
Contin
ue
d to co
mmit to c
le
anlin
es
s-
sp
ec
i
ic pro
ce
dure
s, wi
th our I
H
G Way
of Cl
ea
n prog
ramm
e and I
H
G Cle
an Pro
mis
e, to prov
ide c
on
id
en
ce an
d
prote
cti
on to ou
r frontl
ine h
otel c
oll
eag
ue
s and e
nab
le th
em in tu
rn to
de
liver c
le
an an
d safe h
otel
s for al
l our gu
es
ts
.
•
F
urt
her te
ch
nol
ogy e
nha
nc
eme
nts i
ncl
udin
g the p
ilot of a n
ex
t gen
erat
ion
IH
G mo
bile a
pp an
d the ex
pan
sio
n of dig
ita
l arriv
als, o
er
ing gu
es
ts the
abi
lit
y to so
cial
ly dis
ta
nce
.
•
Provide
d fur
th
er tra
inin
g and s
upp
or
t for evo
lvin
g bra
nd st
an
dard
s and
pro
ce
dure
s, to me
et c
han
ging g
ues
t exp
ect
ati
ons
.
•
Contin
ue
d to upd
ate gu
est ro
om a
nd pu
blic s
pa
ce d
esi
gns to f
urt
her
enh
anc
e the g
ue
st exp
eri
enc
e.
202
2 pri
oritie
s
•
Contin
ue to inve
st in b
ran
d inno
vatio
n, inc
ludi
ng roo
m de
sig
n and fo
od
& beve
rag
e enh
anc
em
ent
s to me
et evol
ving g
ue
st ne
ed
s.
•
Maint
ain a hi
gh leve
l of gu
est s
ati
sfa
ctio
n acro
ss o
ur en
tire po
r
tfo
lio
and fo
cu
s on qu
alit
y an
d cle
anl
ine
ss s
tan
dard
s.
•
Contin
ue to inve
st b
ehi
nd dig
ita
lis
atio
n of the g
ues
t jou
rney a
nd imp
rove
on
-p
rope
r
ty p
roc
es
se
s to improv
e gue
st s
atis
fac
tion a
nd str
eam
line
hotel
operations.
Fee m
ar
gi
n
a
Op
era
ting p
roi
t as a p
erc
ent
age
of reve
nue, exc
ludi
ng Sy
stem Fun
d,
reim
bur
se
ment o
f co
sts
, reven
ue an
d
op
erati
ng pro
i
t from ow
ned
, lea
se
d
and m
ana
ge
d le
ase h
otel
s, si
gni
ic
ant
liqu
ida
ted d
ama
ges
, the re
sul
ts of th
e
Group’
s captive
insurance company
and e
xcept
ional
items.
Our f
ee m
argin p
rogre
ss
ion i
ndi
cate
s
the p
ro
ita
bilit
y of o
ur fe
e revenu
e
grow
th an
d be
ne
it o
f our a
ss
et-lig
ht
bu
sine
s
s mod
el (se
e pa
ge 10).
A
2021 stat
us
•
Growt
h in fee r
evenu
e of over 4
0
%, c
oup
le
d with di
sc
ipli
ne
d cos
t
man
ag
eme
nt ta
ken ac
ros
s the bu
sin
es
s, re
sul
ted in a fe
e ma
rgin of 4
9.6
%
,
4.5ppts belo
w 2019
lev
els.
•
Achieve
d sus
ta
inab
le fe
e bu
sin
es
s co
st sav
ing
s of $7
5m co
mp
ared to 2
01
9,
whil
st c
ontin
uing to i
nves
t for grow
th
.
202
2 pri
oritie
s
•
Continue to
invest in growth initiatives, whilst maintaining our strong
cost f
ocus.
•
Contin
ue to lo
ok fo
r fur
the
r op
era
tion
al e
ic
ien
cie
s throu
gh gre
ater
app
lic
atio
n of tec
hno
lo
gy.
Adj
us
ted fr
ee c
as
h lo
w
a
Ca
sh 
low fro
m ope
rati
ng ac
tivit
ies
exclu
ding p
ayme
nts o
f con
ting
ent
purchase
considerat
ion, less
purchase
of sh
are
s by emp
loyee s
ha
re trus
ts,
maintenance c
apital expenditure
and lease pa
yments.
Adju
ste
d fre
e cas
h l
ow provi
de
s
fun
ds to inve
st in th
e bu
sin
es
s,
sustainably
gro
w the
dividend
and
retur
n any surp
lus to s
har
eho
lde
rs
(see p
ag
e 13). It is a key c
omp
on
ent
in me
as
urin
g the on
goi
ng via
bili
ty
of ou
r bus
ine
ss (se
e pa
ge 4
8).
LT
2021 stat
us
•
Adjuste
d fre
e ca
sh 
low of $
57
1m was u
p $5
42m ye
ar-on
-ye
ar drive
n by
an im
provem
ent i
n ope
rati
ng pro
it f
rom rep
or
t
abl
e seg
me
nts
a
and wor
king
ca
pit
al an
d othe
r adju
stm
ent
s. C
los
ing li
qui
dit
y was $
2,6
55
m.
202
2 pri
oritie
s
•
Prioritise in
vestment be
hind growth with further cos
t focus, maintaining
cha
lle
nge a
roun
d all are
as of d
is
creti
ona
ry s
pe
nd.
•
Contro
l cap
it
al de
ploy
ment i
n lin
e with b
usin
es
s pri
ori
ties
.
a
U
se of N
on
-
GA
AP m
ea
sure
s: I
n add
itio
n to p
er
form
an
ce m
eas
ure
s dir
ect
ly ob
se
rv
abl
e in th
e Gro
up Fi
nan
ci
al St
ate
me
nts (I
FR
S me
asu
res), a
ddi
tio
nal 
in
anc
ial m
ea
sur
es (de
sc
rib
ed
as N
on
-
GA
AP) are p
res
en
ted th
at ar
e use
d int
ern
all
y by man
ag
em
ent a
s key me
asu
res to a
ss
es
s p
er
form
an
ce. N
on
-
GA
AP m
ea
sure
s are e
ith
er n
ot de
i
ne
d und
er I
FRS o
r are a
dju
ste
d
IF
RS 
igur
es
. Furt
her e
xpl
ana
tio
n in rel
ati
on to th
es
e me
asu
res c
an b
e fou
nd on p
ag
es 7
3 to 7
7 and re
c
onc
ili
atio
ns to I
FRS 
ig
ure
s, wh
ere th
ey hav
e be
en a
dju
ste
d, are o
n pa
ge
s 21
8 to 22
3.
2018
8
1.7
%
2017
8
0.9
%
2019
82.4%
2020
8
1.6%
2021
78.
9%
2018
53.3%
2017
5
3.4%
2019
54
.1
%
2020
34
.1
%
2021
4
9.6%
2018
$
611m
2017
$516
m
2019
$50
9m
2020
$29m
2021
$571
m
Strate
gic Re
po
rt
52
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
KPIs
20
21 s
tat
us an
d 20
2
2 pri
orit
ie
s
Employ
ee engagement
surve
y scor
es
a
Colleague HeartBe
at su
rvey
,
co
mpl
eted by I
H
G emp
loyee
s or
tho
se c
olle
ag
ues w
ho are e
mp
loyed
at ma
nag
ed o
r man
age
d le
as
ed
hote
ls (exclu
ding o
ur joi
nt vent
ures).
We
measure
emplo
yee eng
agement
to mon
itor ri
sks re
lati
ng to ta
len
t
(see p
ag
e 44) an
d to he
lp us
und
er
sta
nd th
e iss
ue
s that a
re
rel
evant to o
ur pe
op
le as we b
uil
d
a dive
rse a
nd in
clu
sive c
ulture
(see p
ag
e 24).
A
2021 stat
us
•
The 20
21 s
co
re of 85
% was 8% h
igh
er th
an ext
erna
l be
nch
mark
s.
•
Rolle
d out a hyb
rid wo
rki
ng mo
del a
cro
ss c
orp
orate o
i
ce
s to enc
our
age
l
exibi
lit
y and wo
rk-life b
ala
nce
, provi
ding re
so
urce
s an
d guid
eli
ne
s to
sup
po
rt evo
lvi
ng ways of wo
rki
ng.
•
Priorit
ise
d su
ppo
r
t for em
ploye
e he
alth a
nd we
llbe
ing i
nclu
din
g:
–
Pu
bli
she
d gui
de
line
s an
d lea
rnin
g ser
ies to f
acil
ita
te wellb
ei
ng
conversat
ions.
–
El
evate
d Emp
loyee R
es
ourc
e Grou
ps (E
RGs) to ch
amp
ion a
nd dri
ve
our d
iver
se an
d inc
lus
ive cul
ture.
–
Pro
mote
d lo
ca
l initi
ative
s, su
ch as m
ent
al h
eal
th ir
st ai
d.
–
In
trodu
ce
d Re
cha
rge D
ays and Fo
cus Frid
ays for c
orp
ora
te emp
loyee
s.
•
Deliv
ere
d con
sc
iou
s incl
usi
on tra
inin
g to cor
por
ate em
ploye
es
.
•
Laun
che
d ta
lent p
rog
ramm
es s
uch a
s As
cen
d and W
iH
TL (
Wome
n in
Ho
spi
tal
ity Travel & Le
isu
re) to supp
or
t Bl
ac
k and Eth
nic Mi
nor
ity Tale
nt.
•
Refres
he
d our G
M deve
lop
me
nt and o
nb
oard
ing p
rogra
mme
s, in
clu
ding
the l
aunc
h of ne
w as
se
ssm
ent
s to deve
lop t
al
ent.
2022 prior
ities
•
Maint
ain ou
r foc
us on t
ale
nt ma
nag
em
ent an
d pur
po
sef
ully d
evelo
p
our C
orp
or
ate Se
nior L
ea
der
s and G
en
era
l Ma
nag
ers to e
na
ble o
ur
future grow
th.
•
Build o
ur ta
len
t attr
act
ion c
apa
bili
tie
s via a c
omp
ell
ing e
mploye
r valu
e
prop
os
itio
n, tha
t ena
ble
s us to re
tai
n and re
-
att
ract t
al
ent to th
e indu
str
y.
•
Build o
ur fut
ure le
arni
ng oe
r to rem
ain a l
ead
ing e
mpl
oyer wit
hin th
e
ind
ustr
y a
nd he
lp sup
po
rt o
ur re
cove
ry s
trate
gy an
d hote
l pe
rfo
rma
nce
.
•
Contin
ue to b
uild a
n incl
usi
ve cul
ture an
d main
tain a s
tron
g foc
us
on in
cre
asi
ng the d
iver
sit
y of ou
r le
ade
rs
hip an
d tal
ent p
ipe
lin
es.
IHG® Academ
y
Num
be
r of pe
op
le pa
rt
icip
atin
g
in IH
G Ac
ad
emy pro
gram
me
s.
Sustain
ed par
ticipation in the
IH
G Ac
ade
my indi
cate
s th
e stren
gth
of ou
r prog
res
s in cre
atin
g ca
ree
r
building oppo
rtunities and
engagement
with
the
communit
ies
in whi
ch we o
per
ate (see p
ag
e 27
).
2021 stat
us
•
Incre
ase
d th
e numb
er of i
ntern
shi
ps an
d work ex
pe
rien
ce
s thro
ugh
IH
G Ac
ade
my com
par
ed to 20
20.
•
Glob
al roll o
ut of I
HG S
kil
ls Ac
ade
my
, a vir
tua
l lea
rnin
g plat
fo
rm, wit
h a
pha
se
d rel
ea
se of b
oth th
e lea
rnin
g syste
m and c
ont
ent avai
lab
le in mu
ltip
le
lan
gua
ge
s. Th
is en
sure
s we c
an make a t
ang
ibl
e impa
ct o
n a broa
de
r sc
ale
for p
eo
ple of a
ll ba
ckgrou
nds
, with a v
iew to c
onver
t pa
rt
icip
ant
s into
IHG emplo
yees.
2022 prior
ities
•
F
urt
her ro
ll-
o
ut of I
HG S
kill
s Aca
de
my with p
has
ed wo
rld
wide r
ele
as
e
of the p
lat
for
m, oe
ring b
oth th
e le
arni
ng sys
tem an
d co
ntent in
multi
ple languages.
•
Contin
ue to in
cre
ase t
he num
be
r of inte
rns
hip
s and wo
rk exp
erie
nc
e
placements across hot
els and cor
porate f
unctions, ut
ilising
both in-house
experience
s and virtual solutions.
Ab
sol
ute c
arb
on fo
otp
rint
We work wi
th our h
otel
s to drive
en
ergy e
i
cie
ncy an
d ca
rbo
n
red
ucti
ons a
cro
ss o
ur es
tate
. In 20
21
,
we up
grad
ed o
ur sc
ien
ce
-
bas
ed
tar
get to b
e in lin
e with th
e Par
is
Agre
em
ent to lim
it war
ming to 1
.5°
C.
Thi
s will i
nvolve re
duc
ing o
ur
abs
olu
te ca
rbo
n foot
print by 4
6
%
in en
erg
y use
d by our f
ranc
his
ed
,
managed, o
wned, leased a
nd
man
ag
ed le
as
e hote
ls by 20
30,
ba
se
d on ou
r 201
9 ca
rbo
n footp
rint
(see p
ag
e 29). We have up
da
ted
our K
PI to re
le
ct th
e ch
ang
e from
an inte
ns
ity m
etri
c to an ab
sol
ute
carbon target.
A
2021 stat
us
•
At the end o
f 202
1, o
ur abs
ol
ute ca
rbo
n foot
print re
du
ce
d by 12
%
aga
ins
t our 2
019 b
as
eli
ne, dri
ven by t
arge
ted e
or
ts to m
inimi
se e
ne
rgy
co
nsu
mptio
n duri
ng hot
el cl
osu
res, m
axi
mis
e en
ergy e
i
cie
ncy at
re
-o
pe
ning a
nd th
e ong
oing e
o
rt
s to imp
lem
ent e
ne
rgy e
ic
ien
cy
measures across ou
r hot
el estate.
202
2 pri
oritie
s
•
Contin
ue to rol
l out o
ur de
ca
rbo
nis
atio
n roa
dmap fo
cu
sin
g on en
ergy
e
ici
enc
y mea
sur
es in th
e exis
ting e
st
ate, tra
nsi
tion
ing to re
newa
ble
en
ergy a
nd op
era
ting ve
ry l
ow/zero c
arb
on new
-b
uild h
otel
s.
•
Enhan
ce ou
r enviro
nm
ent
al rep
or
tin
g syste
ms, to c
onti
nue b
uild
ing m
ore
robust a
nd complete
datasets, a
nd pro
vide mor
e detailed
performance
ins
ight
s and g
uid
anc
e for ou
r hote
ls to su
ppo
r
t con
tinuo
us im
prove
men
t.
a
I
n 202
0, du
e to the c
omp
lex
it
y of su
rve
y adm
ini
stra
tio
n in ho
tels d
uri
ng th
e pan
de
mic, o
nly e
mp
loye
es i
n cor
po
rate o
i
ce
s and re
se
r
vati
on ce
ntre
s, a
nd ma
na
ge
d hote
l ge
ner
al
man
ag
er
s (exclu
ding o
ur jo
int ve
ntu
res), we
re inv
ite
d to par
ti
cip
ate. R
es
ult
s for 2
017 to 2
01
9 are b
ase
d on a
ggr
eg
ate re
sul
ts fro
m the t
wo s
ur
veys c
ond
uc
ted a
mon
g the e
ntir
e
IH
G em
ploy
ee p
opu
lat
ion e
ac
h year.
2018
8
6.0
%
2017
8
5.0%
2019
8
7.
0
%
2020
79.0
%
2021
85
.0
%
2018
13,5
31
2017
13,633
2019
1
5,08
1
2020
3,277
2021
5,815
2019
5.
8m tC
O
2
e
2020
4.4m tC
O
2
e
2021
5.1
m
tC
O
2
e
53
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Key per
forma
nce in
dic
ators (K
PIs)
Gre
ater Chi
na rec
overed in th
e se
con
d
quar
ter a
lthou
gh the se
co
nd hal
f of the yea
r
saw re
stricti
ons rei
mpo
sed a
nd inc
reas
ed
trading volatilit
y
.
System gr
owth
Gros
s syste
m grow
th of 5.0% wa
s ahe
ad
of 202
0, althou
gh remai
ned b
elow
pre
-
pan
dem
ic leve
ls
.
Net sy
stem si
ze dec
line
d by 0.6% as o
ur focu
s
on the l
ong
-term he
alth an
d quali
ty of o
ur
established brands
resul
ted in
the
remov
al
of 49,6
67 room
s, 70% of w
hich rel
ated to our
review of th
e Holi
day Inn an
d Crowne P
laz
a
est
ate. We antici
pate a lower ove
rall rem
oval
rate goin
g for
wards, su
ppo
rtin
g our amb
ition
to achieve in
dus
try-
lea
ding n
et room
s grow
th.
Focused
cost mana
gement
We
deliv
ered sustai
nable f
ee business cost
savin
gs of $7
5m co
mpare
d to 201
9. At the
sam
e time, we m
aintai
ned o
ur investm
ent in
grow
th opp
or
tunitie
s, su
ch as the l
aunc
h of
our ne
west b
rand, th
e Vign
ette C
oll
ecti
on.
Op
eratin
g pro
it of $4
94
m improve
d from
an op
eratin
g los
s of $(1
53)m i
n 2020.
Op
eratin
g pro
it from rep
or
tab
le se
gme
nts
a
rec
overe
d to $5
3
4m.
The re
cove
r
y in
revenue c
omb
ine
d with our s
ust
ainab
le co
st
man
age
ment an
d a de
creas
e in co
rpo
rate
trade re
ce
ivable
s, re
sulted i
n fee ma
rgin
a
improvin
g to 49.6
%, 4
.5
ppts b
elow 2
019.
Cash gene
ration
and liquidity
The re
silie
nce o
f our bu
sine
ss m
ode
l was
dem
ons
trated thro
ugho
ut the yea
r
. O
ur stron
g
ca
sh co
nversio
n, co
mbine
d with o
ur ongo
ing
focu
s on co
st s
avings, h
as he
lpe
d gen
erate
net c
ash f
rom ope
rating a
ctiviti
es of $
63
6m
and $
57
1m of adju
sted f
ree ca
sh l
ow
a
.
This h
as co
ntribu
ted to sub
sta
ntial pro
gres
s
in returnin
g levera
ge level
s mea
sure
d as a
ratio of n
et debt
: adjus
ted EB
IT
DA to 3.0x and
within the 2.53
.0x range we aim to
maintain,
supp
or
ting th
e Bo
ard’s deci
sion to p
ropo
se
a in
al divi
den
d of 85
.9
¢ in resp
ec
t of 202
1.
a
U
se of N
on
-
GA
AP m
ea
sure
s: I
n add
itio
n to p
er
form
an
ce m
eas
ure
s dir
ect
ly ob
se
rv
abl
e in th
e Gro
up Fi
nan
ci
al St
ate
me
nts (I
FR
S me
asu
res), a
ddi
tio
nal 
in
anc
ial m
ea
sur
es (de
sc
rib
ed
as N
on
-
GA
AP) are p
res
en
ted th
at ar
e use
d int
ern
all
y by man
ag
em
ent a
s key me
asu
res to a
ss
es
s p
er
form
an
ce. N
on
-
GA
AP m
ea
sure
s are e
ith
er n
ot de
i
ne
d und
er I
FRS o
r are a
dju
ste
d
IF
RS 
igur
es
. Furt
her e
xpl
ana
tio
n in rel
ati
on to th
es
e me
asu
res c
an b
e fou
nd on p
ag
es 7
3 to 7
7 and re
c
onc
ili
atio
ns to I
FRS 
ig
ure
s, wh
ere th
ey hav
e be
en a
dju
ste
d, are o
n pa
ge
s 21
8 to 22
3.
T
rad
ing re
cover
ed s
igni
ic
ant
ly in
202
1, wit
h RevPAR ahe
ad of 20
20,
and tr
ending cl
oser to
pre-pandemic
level
s by the fo
ur
th qu
art
er
. We saw
de
man
d retu
rn at pa
ce in m
arket
s whe
re
Covi
d-19 re
stric
tio
ns we
re lif
ted
, driven
prim
aril
y by dom
est
ic le
isu
re an
d es
se
ntia
l
bu
sin
es
s trave
l. The s
tro
ng re
cover
y
in trading de
mons
trates the att
ractive
long-t
erm f
undamentals
that
underpi
n
our industry
, including t
he inheren
t desire
for tr
avel an
d new exp
erie
nc
es
.
T
rading performance
Throu
gh the ch
alle
nge
s of the pa
nde
mic,
we remai
ned c
omm
itte
d to take acti
ons
to drive de
mand to o
ur hotel
s and sup
po
rt
our own
ers by ma
ximis
ing the
ir revenue
s.
This
, com
bine
d with ou
r weighting towa
rds
es
senti
al bus
ine
ss an
d dom
esti
c leis
ure
demand, par
ticularly in the midscale
se
gment
s, res
ulted in Rev
P
AR rec
overing
to 70% of 20
19 leve
ls.
Enc
ourag
ingly in th
e four
th quar
ter
, rate
was alm
ost in l
ine with 2
019 an
d oc
cupa
ncy
aroun
d 85% of 2
019 l
evels. T
here we
re also
sign
s of more di
screti
onar
y bu
sine
ss tr
avel,
and gro
up bo
okin
gs and inte
rnatio
nal trip
s
sta
rtin
g to return.
Regi
onal p
er
form
ance wa
s subj
ect to lo
ca
l
Covi
d-19 rel
ated res
trictio
ns. T
he rec
over
y
was stro
nge
st in the A
meric
as
, driven by
our wei
ghting towards n
on-
urb
an markets
that are l
ess re
liant o
n internati
onal
inbo
und travel a
nd larg
e groups a
nd event
s.
The re
cover
y in th
e US was b
oo
sted by stro
ng
dom
esti
c leis
ure dem
and an
d resi
lient
es
senti
al bus
ine
ss de
man
d.
T
ra
ding in E
ME
A
A was le
d by Europ
e, which
is le
ss re
liant on inte
rnatio
nal travel, a
nd the
Mid
dle E
ast, w
ith both m
arkets b
ene
it
ting
from the li
ftin
g of res
trictio
ns.
Our u
ses o
f cas
h rema
in unch
ange
d: en
suring
the busi
ness is appr
opriat
ely inv
ested in
to optimi
se grow
th; fund
ing a su
stain
ably
growing di
vide
nd; and th
en return
ing exces
s
funds t
o shar
eholders.
Future gr
owt
h and 2
02
2 pri
oritie
s
Loo
king to the f
uture, we are en
cour
age
d by
the sig
ns of rec
over
y
, al
thoug
h tradin
g in som
e
markets re
main
s volatil
e. The a
cce
ler
ation
in devel
opm
ent ac
tivit
y through 2
02
1
contr
ibute
d to a pipe
line th
at is over 30
% of
our exi
sting sys
tem size, a
nd will s
uppo
rt o
ur
ambi
tion to return to ind
ustr
y-l
ead
ing level
s
of net sys
tem si
ze growth
.
Imp
or
tantly, we have continue
d to
prio
ritise i
nvestme
nt to supp
or
t lon
g-ter
m
sus
tain
able g
rowth
. Many of the
se are
multi
-year in natu
re with fur
the
r investme
nts
pla
nne
d for 202
2 b
ehin
d our bra
nd po
rt
folio,
loyalty programme and digital channels.
We remain fo
cus
ed on i
mproving retu
rns
for owne
rs throu
gh investm
ent
s in revenue
managem
ent, operational e
iciencies
and pr
ocuremen
t progr
ammes.
Our a
ss
et-light bu
sine
ss m
ode
l is proven
to be high
ly ca
sh ge
nerati
ve. As we lo
ok
to future grow
th, with at
trac
tive indu
str
y
RevPAR chara
cteris
tics a
nd a sub
st
antial
pip
eline o
f hotels to o
pen
, we will focu
s on
growing o
ur fee reven
ues an
d fee m
argins
.
With li
mited re
quirem
ents fo
r cap
ital, thi
s
will en
abl
e us to grow the bu
sine
ss w
hilst
gen
eratin
g high return
s on investe
d ca
pita
l.
Paul Edgeclie-
J
ohnson
Chief Financial O
icer
& Group H
ea
d of Strate
gy
Chief
Financ
ial O

ice
r
’
s
r
ev
iew
Paul Edgeclie-
J
ohnson
Chief F
inan
cial O

icer & G
roup H
ea
d of Strate
gy
“
S
tro
n
g
tra
d
i
n
g
re
c
ove
r
y
i
n
2
0
2
1
de
monst
r
at
ing
at
tra
c
ti
ve
in
d
u
s
tr
y
f
unda
me
n
tals
.
”
Strate
gic Re
po
rt
54
IH
G
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Group
Income S
tatemen
t summary
12 mo
nths end
ed 31
December
2021
$m
2020
$m
2021 vs 2020
% ch
ang
e
2019
$m
2020 vs 2019
% ch
ang
e
Reven
ue
a
Americas
7
74
512
51.
2
1,0
40
(
50.
8)
EME
AA
303
221
3
7.1
723
(6
9.
4)
Greater China
116
77
50.
6
135
(4
3.
0)
Ce
ntral
197
182
8.2
185
(1.6)
Rev
enue f
rom
reportable segmen
ts
b
1,390
992
4
0.1
2,08
3
(5
2.4)
System
Fu
nd re
venues
928
765
2
1.3
1,373
(4
4
.
3)
Reimbursement
of costs
589
637
(
7.
5
)
1,1
7
1
(4
5
.
6)
T
ot
al revenue
2,9
07
2,394
21.4
4,627
(4
8
.
3)
Ope
rating proit
a
Americas
559
296
88.9
70
0
(
5
7.
7
)
EME
AA
5
(
50)
NM
c
217
NM
c
Greater China
58
35
6
5.7
73
(5
2
.1)
Ce
ntral
(88)
(62)
41
.9
(125)
(5
0.4)
Op
era
ting p
roi
t from re
po
rt
abl
e se
gme
nts
b
534
219
14
3
.8
865
(
74
.
7
)
Analyse
d as:
Fee B
usi
ne
ss excl
udin
g ce
ntral
658
340
93.
5
938
(6
3.
8)
Owned, leased and
managed lease
(36)
(59)
(39
.0)
52
NM
c
Ce
ntral
(88)
(62)
41
.9
(125)
(5
0.4)
Sys
tem Fund re
sul
t
(11)
(10
2)
(89.
2)
(4
9)
108.
2
Op
era
ting p
roi
t be
fore exce
ptio
nal i
tem
s
523
117
3
4
7.
0
816
(8
5
.7
)
Operati
ng ex
ceptional it
ems
(2
9)
(2
70)
(8
9.3)
(
186)
45.
2
Ope
rating proit/(los
s)
494
(15
3)
NM
c
630
NM
c
Net inancial expens
es
(13
9)
(14
0)
(0
.7
)
(115)
21
.7
Analyse
d as:
Adjust
ed int
erest ex
pense
b
(142)
(
130)
9.
2
(1
33)
(2.
3)
System
Fu
nd int
erest
3
4
(2
5.0)
18
(
7
7.
8
)
Exceptional inan
cial expenses
–
(14)
–
–
–
Fair v
alue gains on continge
nt
purchase
considerat
ion
6
13
(5
3.
8)
27
(51.
9)
Proit/(los
s) before tax
361
(
28
0)
NM
c
542
NM
c
Ta
x
(96)
20
NM
c
(156
)
NM
c
Analyse
d as:
T
ax be
fore exc
epti
ona
l item
s and S
yste
m Fund
b
(12
5)
(32)
29
0.6
(176)
(8
1.
8)
T
ax on exc
ept
ion
al item
s
3
52
(9
4.
2)
20
16
0.0
Exceptional tax
26
–
–
–
–
Proit/(los
s)
265
(
26
0)
NM
c
386
NM
c
Adjust
ed earnings
d
269
57
371.9
555
(8
9.7
)
Ba
sic we
ighte
d aver
age n
umb
er of o
rdina
r
y
shares (millions)
183
182
0.5
183
(0.5
)
Earni
ngs/
(loss)
per ord
inary sha
re
Basic
145.4¢
(142.
9)
¢
NM
c
21
0.4¢
NM
c
Adjusted
b
1
4
7.
0
¢
31.3¢
369.6
303.3¢
(8
9
.7
)
Dividend
per share
85.9¢
–
NM
c
29
6.
2¢
NM
c
Avera
ge US d
oll
ar to s
ter
lin
g excha
ng
e rate
$1: £
0.73
$
1: £
0.7
8
(6.
4)
$
1
: £
0.78
–
a
A
mer
ic
as an
d EM
EA
A i
ncl
ude r
even
ue an
d op
era
tin
g pro
it b
efo
re exce
pti
on
al ite
ms fr
om bo
th fe
e bus
in
es
s and o
wne
d, l
eas
ed a
nd m
ana
ge
d le
as
e hote
ls
. Gre
ate
r Chi
na in
clu
de
s
reve
nue a
nd op
er
atin
g pro
i
t bef
ore exc
ept
ion
al it
ems f
rom fe
e bu
sin
es
s.
b
D
e
in
iti
ons fo
r No
n-
GA
A
P me
asu
res c
an b
e fou
nd on p
ag
es 73 t
o 7
7
. Rec
on
cil
iati
ons o
f the
se m
ea
sur
es to th
e mo
st di
rec
tly c
om
par
abl
e lin
e ite
ms wi
thin t
he G
roup F
ina
nc
ial
St
atem
en
ts c
an be f
oun
d on p
age
s 2
18 to 2
23
.
c
Pe
rce
nta
ge c
han
ge c
ons
id
ere
d not m
ea
nin
gful
, suc
h as w
her
e a po
siti
ve ba
lan
ce i
n the l
ates
t pe
rio
d is c
omp
ar
abl
e to a ne
gat
ive or z
ero b
ala
nc
e in the p
rio
r pe
rio
d.
d
A
dju
ste
d ea
rnin
gs a
s us
ed wi
th ad
jus
ted e
ar
ning
s pe
r sh
are, a n
on
-
GA
AP me
as
ure
.
P
e
r
fo
r
m
a
n
c
e
G
ro
u
p
55
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Per
fo
rman
ce
Perfor
mance
co
nti
nu
e
d
G
ro
u
p
c
o
ntin
u
e
d
Hig
hlig
hts fo
r the ye
ar e
nde
d
31 De
ce
mb
er 2
021
T
rading imp
roved signiicantly during
the yea
r
, with G
roup c
ompa
rabl
e RevPAR
a
getting c
los
er to pre
-p
ande
mic leve
ls.
Mo
re travel dem
and return
ed a
s vacci
nes
rolled out,
gov
ernment
-mandated
restri
ction
s ea
sed a
nd ec
ono
mic ac
tivit
y
sta
rte
d to rebuil
d. Thro
ugh the s
umme
r
month
s, many ma
rkets, inc
ludin
g the US
and U
K
, saw sig
ni
icant i
mproveme
nts,
driven by do
me
stic le
isure travel
. Whils
t the
abilit
y of travel
lers to fre
ely m
ove bet
wee
n
and wi
thin co
untries c
ontinu
ed to var
y
signi
ic
antly
, the s
eco
nd ha
lf of the yea
r
saw a gra
dual f
urth
er imp
roveme
nt in
overall tra
ding c
onditi
ons
.
Reve
nu
e
Over
all, whe
n com
parin
g to 2020, Gro
up
comparable Re
vP
AR
a
dec
line
d 34% in th
e
ir
st qua
rte
r
, the
n grew 151% in th
e sec
ond
quar
ter
, 66
% in the th
ird quar
ter
, 71% in
the four
th qu
ar
ter and 4
6% i
n the full ye
ar
.
Whe
n com
pare
d to the pre
-p
ande
mic
level
s of 201
9, Group c
omp
arabl
e RevPAR
a
dec
line
d 51% in the 
irst q
uar
ter
, 36
% in
the se
co
nd qua
rte
r
, 2
1% in the third q
uar
ter
,
17% in th
e four
th qua
rte
r and 30
% in the
full year
.
Our oth
er key driver of reve
nue, ne
t system
size, d
ecre
ase
d by 0.6% ye
ar
-
on-yea
r
to 88
0,327 ro
oms, i
mpac
ted by 3
4.3
k
Hol
iday Inn a
nd Crown
e Plaz
a rem
ovals
as
we
con
clud
ed ou
r qualit
y review o
f
these bra
nds.
Duri
ng the yea
r end
ed 31 D
ec
emb
er 20
21,
total reven
ue inc
reas
ed by $
513m (2
1.4%)
to $2,9
07m inclu
ding a $
48
m redu
ction i
n
co
st reimb
urs
eme
nt revenue. R
evenue fro
m
reportable segments
b
incre
ase
d by $3
98
m
(40.
1%) to $1,39
0
m, driven by im
proved
tradin
g con
dition
s. Un
der
lying reven
ue
b
incre
ase
d by $3
87m to $1,37
3m, with
unde
rlyin
g fee revenu
e
b
increasing b
y $3
14m.
Own
ed, le
as
ed an
d man
age
d lea
se revenu
e
incre
ase
d by $6
8m
.
Op
era
ting p
ro
it an
d mar
gin
Op
eratin
g pro
it improve
d by $647m
from a lo
ss of $
15
3m to a pro
it of $
49
4m,
incl
uding a $
241m net redu
ctio
n in ope
rating
exceptio
nal ite
ms, a $
91m im
proveme
nt in
the Sys
tem Fund res
ult, from a $
102
m de
icit
to an $11m de
i
cit, an
d a $3
6m d
ecre
ase in
the ch
arge for exp
ec
ted cre
dit lo
ss
es on
corporat
e trade
receivables.
Op
eratin
g pro
it from rep
or
tab
le se
gme
nts
b
incre
ase
d by $3
15m (14
3.
8%) to $5
34m
,
driven by im
proved de
man
d and the d
elive
ry
of sustai
nable f
ee business cost sa
vings.
Und
erlyi
ng op
erating p
roi
t
b
increased
$3
08
m to $5
31m.
Fee margin
b
incre
ase
d by 15.
5p
pts to 49.6
%
,
be
ne
it
ting from th
e improvem
ent in tra
ding
and fo
cus
ed co
st ma
nag
eme
nt.
S
ys
t
e
m Fu
n
d
The G
roup op
erate
s a Syste
m Fund to colle
ct
and adm
inist
er cash assessments fr
om hot
el
owne
rs for the s
pe
ci
ic purp
os
e of us
e in
marketing
, rese
rvati
ons, a
nd the h
otel loyalt
y
progr
amme, I
HG Rew
ards. T
he Sys
tem Fund
als
o ben
e
its from p
roce
e
ds from the s
ale o
f
loyalty points und
er third-par
ty c
o-
branding
arrang
eme
nts
. The Fund is n
ot man
age
d
to gen
erate a pro
it or l
os
s for IH
G over the
lon
ger term
, althou
gh an in
-year sur
plus o
r
de
ici
t can ari
se, b
ut is ma
nage
d for the
be
ne
it of hote
ls in the I
HG S
ystem w
ith the
obje
ctive of d
riving reve
nues fo
r the hote
ls.
In the ye
ar to 31 D
ece
mbe
r 202
1, Sys
tem
Fund revenue
s incre
ase
d $1
63
m (2
1%) to
$9
28m, p
rimaril
y driven by the re
cover
y
in trav
el dem
and yielding highe
r
assessment r
ev
enues.
The S
ystem Fund in
com
e state
ment
de
ici
t reduc
ed by $
91m to $
11m, prima
rily
due to the re
bou
nd in travel de
man
d and
as
soc
iated a
ss
es
sme
nt inco
me, pa
rti
ally
os
et by the rever
sal o
f tempo
rar
y savin
gs
real
ise
d in 2
020.
Reimbu
rsement o
f costs
Cost rei
mbursemen
t r
ev
enue r
epresen
ts
reim
bur
sem
ent
s of exp
en
se
s inc
urre
d
on be
hal
f of man
age
d and fran
chis
ed
prop
er
ties a
nd relate
s, pre
domi
nantly
, to
payroll c
ost
s at man
age
d prop
er
ties w
here
we are the e
mployer. As we record c
ost
reimbu
rsements based upon
costs incur
red
with no a
dde
d mark u
p, this revenue a
nd
relate
d expe
nse
s have no imp
act o
n eith
er
our op
erati
ng pro
it or n
et pro
it for the ye
ar
.
In the ye
ar to 31 D
ece
mbe
r 202
1,
reimb
urs
able reve
nue de
crea
se
d by $4
8m
(7.5%) t
o $5
89
m. Th
e redu
ction re
le
cts th
e
impa
ct of th
e prior ye
ar termin
ation of th
e
SVC por
tfo
lio in the A
meric
as e
st
ate, mean
ing
the overal
l sca
le of reim
burs
eme
nts fel
l.
Ope
rating exceptional item
s
E
xceptio
nal ite
ms are id
enti
ied by vi
rtu
e
of the
ir size, n
ature, or inc
ide
nce an
d are
exclude
d from th
e calc
ulatio
n of adju
sted
earn
ings p
er ordin
ar
y sha
re as well a
s other
Non
-
GA
AP me
asu
res (see U
se of N
on
-
GAA
P
me
asure
s, pa
ges 2
18 to 2
23) in orde
r
to provide a m
ore me
aning
ful co
mpari
son
of pe
rfo
rman
ce and c
an in
clud
e, but are
not res
tricte
d to, gains an
d los
se
s on the
disp
os
al of as
se
ts, imp
airme
nt cha
rges an
d
reversals, the costs of individually signiic
ant
leg
al ca
se
s or co
mme
rcial dis
pute
s and
reorgan
isation
costs.
Op
eratin
g exceptio
nal item
s totall
ed $2
9m,
comprising t
he $25m pro
visionally
agreed
co
sts to se
ttle t
wo co
mme
rcial di
spute
s in
the Am
eric
as an
d EME
A
A
, and th
e revers
al
of a $4
m fair valu
e gain re
cord
ed in 20
20
on the p
ut optio
n over pa
rt of th
e Group’s
investme
nt in the Inte
rC
ontine
ntal B
arclay
hotel
. F
ur
ther in
formatio
n on excep
tiona
l
items c
an b
e found in n
ote 6 to the Gro
up
Financi
al Sta
temen
ts.
Net 
ina
nc
ial exp
en
se
s
Net 
ina
ncial ex
pen
se
s dec
reas
ed by $
1m to
$139m.
Adjus
ted
int
eres
t
b
, as rec
onc
ile
d on
pag
e 2
23, and w
hich exclu
des exce
ption
al
in
anc
e expe
nse
s, and a
dds b
ack inte
rest
relatin
g to the Sys
tem Fund, incre
as
ed by
$12m to an ex
pen
se of $
142m. Th
e incre
ase
in adj
usted i
nter
est
b
was prim
arily driven
by incre
ase
d averag
e bon
d debt
.
Fin
ancia
l expe
nse
s inclu
de $
91m (2
020
: $6
9m
excluding e
xceptional inancial expens
es)
of total i
nterest c
os
ts on p
ublic b
ond
s, whic
h
are i
xed rate deb
t. Intere
st exp
ens
e on le
ase
liabi
lities wa
s $29
m (20
20: $
37m).
a
Comparable RevP
AR incl
udes the i
mpact of ho
tels
tem
po
rari
ly cl
os
ed a
s a res
ult of C
ov
id-1
9.
b
D
e
in
iti
ons fo
r No
n-
GA
A
P reve
nue a
nd op
er
atin
g
pro
i
t mea
su
res c
an b
e foun
d on p
ag
es 73 to 7
7.
Rec
on
cil
iati
on
s of th
es
e mea
su
res to t
he mo
st d
irec
tly
co
mpa
rab
le li
ne it
ems w
ith
in the G
rou
p Fin
an
cia
l
St
atem
en
ts c
an be f
oun
d on p
age
s 2
18 to 2
23
.
Strate
gic Re
po
rt
56
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Fair valu
e gai
ns on c
ont
ing
ent
purchase
considera
tion
Co
ntinge
nt purch
ase c
ons
ide
ration aro
se
on the a
cqui
sitio
ns of Re
gent, t
he UK
por
t
folio an
d Six S
ens
es (see n
ote 25 to the
Group F
inan
cial S
tatem
ent
s)
. The n
et gain
of $6
m (20
20: $
13m) prima
rily aris
es fro
m
the co
nditi
ons rel
ated to the S
ix Se
nse
s
conti
ngen
t purcha
se c
onsi
dera
tion no
lon
ger b
eing m
et. Th
e total c
onting
ent
purch
ase c
ons
ide
ration li
abilit
y at
31 D
ec
emb
er 202
1 is $7
3m (20
20: $
79m).
T
axation
The e
ec
tive rate of ta
x on pro
it be
fore
exceptio
nal ite
ms an
d Syste
m F
und
a
was
31% (2
020
: 38%); this wa
s lower th
an 20
20
large
ly due to th
e improved p
roi
t bas
e.
In M
ay 202
1, a chan
ge to the U
K rate of
Co
rpor
ation T
ax was e
nac
ted whi
ch le
d
to a $3
0m cre
dit
; $26m wa
s rec
ode
d as
an excepti
onal c
redit w
ithin the I
nco
me
Statem
ent a
nd $4m wi
thi
n th
e Stat
ement
of Oth
er C
omp
rehe
nsive In
com
e. A ne
t
cred
it of $3
m aros
e on othe
r acc
ountin
g
exceptio
nal ite
ms (20
20: $
52m). F
urth
er
inform
ation on t
ax with
in exceptio
nal ite
ms
can b
e foun
d in note 6 to the Gro
up Fin
ancia
l
St
ateme
nts. N
et ta
x paid in 2
02
1 totall
ed
$8
6m (2
020
: $41m), and inc
lude
d refun
ds
in the U
S of $1
5m (20
20: $
24m). No more
signiic
ant refunds ar
e expected.
IH
G purs
ue
s an app
roach to t
ax that i
s
consistent
wit
h its bus
iness stra
tegy a
nd
its o
vera
ll business cond
uct prin
ciples.
The a
pproa
ch se
eks to en
sure full c
omp
lianc
e
with all t
ax 
iling, p
ayment an
d repo
rti
ng
obli
gation
s on the b
asi
s of co
mmunic
ative
and tra
nsp
arent rel
ations
hips w
ith tax
autho
ritie
s. The I
HG Au
dit C
ommit
tee
reviews IHG’s appr
oach to tax annually
,
incl
uding c
ons
ide
ration of th
e Group’s
current t
ax pro
ile
. Furthe
r inform
ation on
tax c
an b
e found in n
ote 8 to the Grou
p
Financi
al Sta
temen
ts.
IH
G’s Ap
proa
ch to Tax pol
icy is ava
ilab
le at
www.ihgplc.
com/
responsible-business
under policies
Earnings per or
dinary share
The G
roup’s basic e
arnin
gs pe
r ordin
ary
sha
re is 145
.4
¢ (202
0: ba
sic lo
ss p
er
ordin
ary s
hare: 142
.9
¢). Adjusted e
arnin
gs
pe
r ordinar
y s
hare
a
inc
rea
se
d by 115.7¢
t
o
1
4
7.
0
¢
.
Dividends
The B
oard i
s prop
osin
g a in
al divid
end
of 85
.9
¢ in resp
ec
t of 202
1, an am
ount
equ
ivalen
t to the withd
rawn in
al paym
ent
in res
pec
t of 20
19. No inte
rim divi
den
d
was pa
id in res
pe
ct of 20
21. G
oin
g forwa
rd,
divid
end p
ayment
s will b
e rel
ecti
ve of
IHG’s
prior a
pproach
to sus
tainably
gro
w
the ordi
nar
y divid
end
, whils
t targe
ting a level
of lever
age that m
aint
ains an inve
stme
nt
grad
e credi
t rating an
d ens
uring c
areful
con
sid
eratio
n of our res
po
nsib
ilitie
s to all
stakeholders.
The Board w
ill a
lso contin
ue
to active
ly as
ses
s the o
ppo
rtu
nity fo
r
any surpl
us ca
pita
l to be add
ition
ally
returne
d throug
h spe
cial d
ivid
ends
or sh
are buy
back
s.
Share price
and mark
et capitalisation
The I
HG s
hare pri
ce cl
ose
d at £
47
.8
1 on
31 D
ec
emb
er 202
1, up fro
m £4
6.
90 o
n
31 D
ece
mb
er 202
0. The m
arket cap
itali
satio
n
of the G
roup at the ye
ar
-
end wa
s £8.
8bn
.
For dis
cus
sion o
f 2020 re
sult
s, and th
e
cha
nges c
omp
ared to 20
19, refe
r to the
202
0 Annua
l Repo
rt a
nd Form 20

F
.
www.ihgplc.com/i
nv
estors
under
Annual Repor
t
a
D
e
ini
tio
ns fo
r No
n-
GA
AP r
even
ue an
d op
era
ting p
ro
it
me
asu
res c
an b
e fou
nd o
n pag
es 7
3 to 7
7
.
Rec
on
cil
iati
on
s of th
es
e mea
su
res to t
he mo
st d
irec
tly
co
mpa
rab
le li
ne it
ems w
ith
in the G
rou
p Fin
an
cia
l
St
atem
en
ts c
an be f
oun
d on p
age
s 2
18 to 2
23
.
Accounting principle
s
The
Grou
p res
ults a
re pre
pare
d
unde
r Intern
ation
al Fin
anci
al Rep
or
ting
St
anda
rds (IFR
S). The app
licati
on of
IFR
S require
s man
age
ment to m
ake
judg
eme
nts, e
stim
ates and a
ss
umption
s,
and th
ose c
ons
idere
d criti
cal to the
prep
aratio
n of the Gro
up resu
lts are
set o
ut on pa
ge 15
0 of the G
roup
Financi
al Sta
temen
ts.
The G
roup di
sclo
se
s cer
t
ain in
anc
ial
information both including an
d ex
cluding
exceptio
nal ite
ms. For c
omp
arabi
lity
of the p
erio
ds pre
sente
d, so
me of
the p
er
forman
ce in
dicato
rs in this
pe
rfor
manc
e review are c
alcu
lated
af
ter elim
inating th
es
e exceptio
nal
items
. An an
alysi
s of exceptio
nal ite
ms
is inc
lude
d in note 6 o
n pag
e 165 o
f the
Group
Finan
cial
Statemen
ts.
57
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Per
fo
rman
ce
Perfor
mance
co
nti
nu
e
d
G
ro
u
p
c
o
ntin
u
e
d
Gro
up C
as
h Flow su
mm
ary
12 mo
nths end
ed 31
December
2021
$m
2020
$m
2021 vs 2020
$m change
2019
$m
2020 vs 2019
$m change
GAAP
cash l
ow
summary
Ne
t cas
h from o
pe
ratin
g act
iviti
es
636
137
499
653
(5
16)
Ne
t cas
h from i
nves
ting a
ctiv
itie
s
(12)
(6
1)
49
(4
9
3)
4
32
Ne
t cas
h from 
in
anc
ing a
ctiv
itie
s
(860
)
1,3
54
(2,
214)
(6
6
0)
2,0
14
Net mo
vement i
n cash
and
cash equi
valen
ts
in th
e yea
r
(2
36)
1,4
30
(
1,
666
)
(5
00)
1,9
30
12 mo
nths end
ed 31
December
2021
$m
2020
$m
2021 vs 2020
$m change
2019
$m
2020 vs 2019
$m change
Su
mma
ry o
f ca
sh 
low an
d ne
t de
bt
Op
era
ting p
roi
t from re
po
rt
abl
e se
gme
nts
534
219
865
Depreciation
and amortisat
ion
98
110
116
Adjusted EBIT
DA
a
632
32
9
303
981
(6
52)
Work
ing c
apit
al an
d oth
er ad
jus
tme
nts
110
(27
)
(77)
Imp
airm
ent l
os
s on 
ina
nci
al as
set
s
–
40
8
Oth
er n
on
-c
as
h adj
ustm
ent
s to op
erat
ing
proit/loss
b
71
60
54
Sys
tem Fund re
sul
t
(11)
(10
2)
(4
9)
System
Fu
nd depreciat
ion and
amortisation
94
62
54
Oth
er n
on
-c
as
h adj
ustm
ent
s to Sys
tem Fund r
esu
lt
6
97
52
Ca
pit
al exp
end
iture
: con
trac
t ac
quis
itio
n co
sts
(key mo
ney) ne
t of rep
ayme
nts
(42
)
(6
4)
(6
1)
Capit
al expenditure: maintenance
(33)
(4
3)
(8
6)
Ca
sh 
lows re
lati
ng to exce
ptio
nal i
tems
(12)
(87)
(5
5)
Ne
t intere
st p
aid
(12
6)
(13
0)
(107
)
Ta
x
p
a
i
d
(86)
(41)
(141)
Princi
pal elemen
t of
lease pa
yments
(32)
(6
5)
(59)
Purc
has
e of s
hare
s
–
–
(5)
Adj
us
ted fr
ee c
as
h lo
w
a
571
29
542
509
(4
8
0
)
Ca
pit
al exp
end
iture
: gros
s rec
yclab
le inve
stm
ent
s
(5)
(6)
(19)
Capital expen
diture: gr
oss System
Fund c
apit
al inve
stm
ent
s
(19)
(3
5)
(98)
Acq
uis
itio
ns of b
usi
nes
se
s, n
et of c
ash a
cq
uire
d
–
–
(2
92)
De
ferre
d an
d con
ting
ent pu
rcha
se
consideration
paid
(13)
–
(8)
Disposals and
repa
yments,
includ
ing o
ther
inancial
assets
58
18
4
Di
strib
utio
ns fro
m as
so
ciat
es an
d join
t ventu
res
–
5
–
Other it
ems
–
3
–
Dividends and
shareholder r
etur
ns
–
–
(
723)
Ne
t ca
sh l
ow be
fore o
the
r ne
t de
bt move
me
nts
592
14
578
(62
7)
6
41
Add b
ack p
rin
cip
al el
eme
nt of l
eas
e rep
ayme
nts
32
65
59
Exchange a
nd ot
her non-cash adjustmen
ts
24
57
(132)
De
cre
a
se in n
et de
bt
648
136
512
(
70
0)
836
Ne
t deb
t at the b
egi
nnin
g of the ye
ar
(2
,5
29)
(2,665)
(1,9
65)
Ne
t deb
t at th
e en
d of th
e yea
r
(1,881)
(
2,52
9)
648
(2,665)
136
a
D
e
ini
tio
ns fo
r No
n-
GA
AP m
ea
sur
es c
an be f
oun
d on p
age
s 73 to 7
7. Rec
on
cili
atio
ns o
f the
se m
ea
sure
s to th
e mo
st di
rec
tly c
omp
ara
bl
e line i
tem
s wit
hin th
e Gro
up F
ina
nci
al
St
atem
en
ts c
an be f
oun
d on p
age
s 2
18 to 2
23
.
b
2
02
0 Exc
lu
des $
4
8m re
lat
ed to tr
ade d
ep
os
its a
nd l
oan
s whi
ch we
re re
co
gnis
e
d as exc
epti
on
al ite
ms
.
Strate
gic Re
po
rt
58
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Cas
h from operating ac
tivities
For the yea
r end
ed 31 D
ec
emb
er 20
21 n
et
ca
sh from op
erati
ng acti
vitie
s totalle
d $6
3
6m,
an inc
reas
e of $4
9
9m on th
e previo
us year,
prim
arily re
lec
ting th
e incre
ase in o
per
ating
pro
it and i
mproveme
nt in work
ing ca
pita
l
and ot
her adj
ustments.
Ca
sh l
ow from op
eratio
ns is the p
rinci
pal
sou
rce of ca
sh us
ed to fu
nd the on
goin
g
ope
rating exp
en
ses
, interes
t payme
nts,
maintenance capit
al expenditure and normal
divid
end p
ayment
s of the G
roup.
The G
roup b
elieve
s that the re
quirem
ents
of its exi
sting b
usin
es
s and fu
ture investm
ent
can b
e met fro
m ca
sh ge
nerate
d intern
ally
,
disp
os
ition of a
ss
ets, an
d exte
rnal 
inan
ce
expe
cted to b
e availab
le to it.
Ca
sh fro
m inves
ting a
ctiv
itie
s
Net c
as
h out
low
s from investi
ng acti
vitie
s
dec
reas
ed by $
49
m to $12m, d
riven by
$4
4
m net pro
ce
eds fro
m the s
ale of thre
e
hotel
s in the Am
eric
as reg
ion. T
here wa
s
an overall d
ecre
as
e in purch
ase
s of prop
er
t
y
,
plant
and equipmen
t and
intang
ible assets
of $24m
. Defe
rred c
ons
ider
ation p
aid of
$13
m relate
d to the ac
quis
ition of th
e Rege
nt
bran
d (202
0: $n
il). The G
roup h
ad co
mmit
ted
contr
actua
l cap
ital exp
en
diture of $
17m
at 31 D
ec
emb
er 20
21 (2
020
: $19
m).
Ca
sh u
se
d in i
nan
cin
g act
iviti
es
Net c
as
h out
low
s from i
nanc
ing ac
tivitie
s
totall
ed $
86
0m (2
020
: $1,3
5
4m in
low).
This wa
s prim
arily du
e to the repaym
ent of
the £6
0
0m co
mme
rcial p
ape
r unde
r the U
K
Covi
d Co
rpora
te Finan
cing Facil
ity (CC
FF
).
Adju
ste
d fre
e ca
sh l
ow
Adjus
ted fre
e cas
h low
a
was an in
low
of $5
71m, a
n incre
ase of $
5
42m on 20
20,
driven by an i
mproveme
nt in op
eratin
g
pro
it from rep
or
ta
ble s
egme
nts
a
partially
os
et by relate
d ta
x payme
nts, c
oupl
ed with
a $137m imp
rovement i
n workin
g cap
ital
as ex
plained belo
w
. Except
ional cash
costs
of $12m d
ec
reas
ed by $7
5m due to lowe
r
restr
ucturin
g expe
nse
s and th
e timing of
litigati
on paym
ents
.
Wor
king capital
On th
e Group s
tatem
ent of 
inan
cial p
osi
tion,
trade a
nd othe
r rec
eivabl
es in
crea
sed by
$6
0m, fro
m $514m to $
57
4m, pri
marily d
ue
to the sign
ii
cant in
crea
se in Rev
P
AR in the
four
th quar
ter c
omp
ared to 20
20. T
rade
and othe
r payable
s incre
as
ed by $1
08
m,
from $
560
m to $6
68
m, prim
arily du
e to
an inc
reas
e in bo
nus ac
crua
ls co
mpare
d to
prio
r year
. Defe
rred reven
ue inc
reas
ed by
$4
4
m, from $1,
56
9m to $
1,613
m, rel
ecti
ng
an inc
reas
e in the futu
re rede
ema
ble p
oints
bal
ance re
lated to th
e loyalt
y progra
mme.
a
D
e
ini
tio
ns fo
r No
n-
GA
AP m
ea
sur
es c
an be f
oun
d on
pa
ge
s 73 to 7
7. Reco
nci
lia
tion
s of th
es
e me
as
ure
s to the
mo
st di
rec
tly c
omp
ara
bl
e lin
e item
s wit
hin th
e Gro
up
Fin
an
cia
l St
atem
ent
s ca
n be fo
un
d on pa
ge
s 21
8 to 2
23.
Sources of liquidity
As at 31 D
ec
emb
er 20
21 th
e Grou
p had tot
al
liqui
dity o
f $2,6
55
m (31 De
cem
ber 2
020
:
$2,
925
m), compri
sing $
1,3
50m of u
ndrawn
bank f
aciliti
es an
d $1,3
0
5m of ca
sh an
d cas
h
equivalents (net of
overdrafts and restricted
ca
sh). The redu
ctio
n in total liq
uidit
y from
De
ce
mbe
r 2020 i
s due to the re
payme
nt
of the £
60
0m C
CFF i
n March 2
02
1, large
ly
os
et by the n
et ca
sh low b
efore oth
er ne
t
debt m
oveme
nts of $
592m
.
The G
roup cur
rently ha
s $2,786
m of sterlin
g
and eur
o bonds ou
tstanding.
The cur
ren
t
bon
ds ma
ture in Novem
ber 2
02
2 (£173
m),
Oc
tobe
r 2024 (€50
0m), Augu
st 202
5
(£3
0
0m), August 2
026 (£
3
50m), May 20
27
(€50
0m) and O
ctob
er 202
8 (£4
0
0m).
The
re are curren
cy swaps i
n plac
e on b
oth
the eu
ro bond
s, 
ixing th
e Octo
ber 2
024
bon
d at £
45
4m an
d the M
ay 2027 b
ond
at £
43
6m
.
The G
roup cur
rently ha
s a sen
ior uns
ec
ured
lon
g-term c
redit r
ating of B
BB
- fro
m
St
anda
rd and Poo
r’s. In th
e event this ra
ting
was dow
ngrad
ed b
elow B
BB
- th
ere woul
d
be an a
dditio
nal s
tep
-up of 1
25bp
s payabl
e
on the b
ond
s whic
h would re
sult in an
additi
onal in
ter
est cost of
appro
ximately
$3
5m p
er year.
The $
1,2
75
m revolving sy
ndic
ated b
ank
facil
ity (the Sy
ndic
ated Facil
ity) and th
e $75
m
revolving bilateral facilit
y (the Bilateral Facility)
mature in S
eptem
ber 2
023
. The fa
cilitie
s
were und
rawn at 31 D
ec
emb
er 20
21.
The S
yndic
ated a
nd Bil
ateral Faci
lities
cont
ain the s
am
e terms an
d two 
inan
cial
coven
ants: inte
rest c
over and a l
everag
e
ratio. C
ovenant
s are moni
tored on a ‘
frozen
GAA
P
’ ba
sis exclud
ing the im
pac
t of IFR
S 16
and are te
sted at h
alf yea
r and full ye
ar on
a trailin
g 12-month b
asi
s. Th
e interes
t cover
coven
ant requ
ires a ratio o
f Coven
ant
EBI
TDA to Coven
ant intere
st payab
le
above 3
.5:1 and the l
everag
e ratio req
uires
Cove
nant ne
t debt to C
ovenant E
BIT
DA of
be
low 3.
5:1. Covena
nt EBI
TDA is c
alcul
ated
(on a frozen GAAP b
asi
s) as ope
rating pro
it
befo
re exceptio
nal item
s, de
prec
iation a
nd
amo
rti
satio
n and Sys
tem Fund revenu
es
and exp
ens
es
. Se
e note 24 to the Gro
up
Fin
ancia
l State
ment
s for fur
the
r inform
ation.
The
se c
ovenant
s have be
en am
end
ed for
test d
ates in 20
2
2. A mini
mum liqui
dit
y
coven
ant of $
40
0m h
as be
en intro
duc
ed
whic
h will be te
sted at e
ach te
st date
up to and in
cludi
ng 31 D
ec
emb
er 20
22
.
The a
men
ded l
everag
e ratio and i
nterest
cover c
ovenant te
st leve
ls for th
e facili
ties
are as
follow
s:
June 2022
December 2022
Lever
age
ratio
Less t
han 7.5x
L
es
s tha
n 6.
5x
Inte
rest
cove
r
Gre
ater th
an 1.
5x
Gre
ater t
han 2
.0x
At 31 De
ce
mbe
r 202
1 the l
everag
e ratio was
3.0x an
d the intere
st c
over ratio was 4
.5x.
Se
e note 24 to the Gro
up Fin
ancia
l
St
ateme
nts for fur
the
r inform
ation.
The G
roup is in c
omp
lian
ce with al
l of the
applicabl
e inancial covenants in its loan
doc
ume
nts, no
ne of whi
ch are exp
ecte
d to
pres
ent a m
aterial re
stric
tion on fu
nding i
n
the ne
ar futu
re.
In the G
roup’s opinio
n, the availab
le fac
ilitie
s
are su
ici
ent for th
e Group’s pres
ent liqu
idit
y
requi
reme
nts. H
owever
, th
e Grou
p contin
ues
to ass
es
s its li
quidit
y po
sitio
n and 
inan
cing
optio
ns and w
ill take fur
the
r acti
ons
as necessary
.
The G
roup ha
s taken c
er
tai
n actio
ns durin
g
202
1 reg
arding th
e disc
ontinu
ation of L
IB
OR
.
The G
roup’s main expo
sure to LI
BO
R is the
unde
rlyin
g referen
ce rate in th
e Synd
icate
d
and B
ilatera
l Facilitie
s. Th
e terms of th
es
e
agre
eme
nts will n
ee
d to be ren
egoti
ated
to addre
ss th
e disc
ontinu
ation of L
IB
OR
.
The re
plac
em
ent of LI
BO
R with alte
rnative
referen
ce rate
s is not exp
ec
ted to have a
materi
al imp
act on th
e Grou
p at this st
age
.
The G
roup ha
d net li
abiliti
es of $
1,47
4
m
at 31 D
ec
emb
er 20
21 ($1,
84
9m at
31 D
ec
emb
er 202
0).
Net d
ebt
Net d
ebt of $
1,8
81m (20
20: $
2,52
9m) is
anal
yse
d by currency a
s follow
s:
2021
$m
2020
$m
Borrow
ings
Ste
rlin
g*
2,860
3,7
16
US dollar
431
416
Euros
5
20
Othe
r
35
52
Cash and
cash
equivalents
Ste
rling
(53
2)
(1,3
05)
US dollar
(756)
(2
61)
Euros
(18)
(12)
Canadian dollar
(7)
(8)
Chines
e renminbi
(10
5)
(60)
Othe
r
(32)
(2
9)
Ne
t deb
t
1,881
2,529
Avera
ge ne
t de
bt leve
l
2,33
4
2,5
54
*
In
clu
din
g the im
pa
ct of c
urre
ncy s
wap
s.
Ca
sh and c
as
h equi
valent
s incl
ude
s $7
7m
(20
20: $
4
4m) that is not avail
abl
e for use
by the Gro
up due to lo
cal exch
ange c
ontrol
s
and $
9m (2
020
: $5m) whic
h is res
tricte
d
for us
e on ca
pita
l expe
nditure un
der h
otel
lease agr
e
ements.
Inform
ation o
n the maturi
ty p
roil
e
and inte
rest s
tructu
re of borrowi
ngs is
incl
ude
d in notes 2
2 a
nd 24 to the Gro
up
Financi
al Sta
temen
ts.
59
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Per
fo
rman
ce
Perfor
mance
co
nti
nu
e
d
G
ro
u
p
c
o
ntin
u
e
d
Bo
rrowings in
clud
ed b
ank overdraf
ts o
f
$5
9m (2
020
: $51m), which were m
atche
d
by an equ
ivale
nt amount o
f cas
h and c
ash
equ
ivalen
ts und
er the G
roup’s cash p
oo
ling
arr
angements.
Under t
hese ar
rang
ements,
eac
h po
ol co
ntain
s a numb
er of b
ank
acc
ount
s with the s
ame 
ina
ncial i
nstitu
tion,
and th
e Group p
ays interes
t on net ove
rdraf
t
bal
ance
s withi
n eac
h poo
l. The c
as
h po
ols
are us
ed for d
ay-to-
day c
ash m
anag
eme
nt
purp
ose
s and a
re mana
ged d
aily a
s clos
ely
as po
ss
ible to a ze
ro bala
nce o
n a net ba
sis
for ea
ch po
ol. O
vers
eas s
ubs
idiari
es are
ty
pic
ally in a c
ash
-p
ositi
ve pos
ition, wi
th
the mo
st sig
ni
icant b
alan
ce
s in the U
S,
and th
e matchin
g overdraf
ts are h
eld by the
Group’s cent
ral treas
ur
y com
pany in the U
K
.
Inform
ation o
n the Gro
up’
s app
roach to
allo
catio
n of ca
pita
l reso
urces c
an b
e found
on pa
ges 1
2 and 13
.
O-balance sheet arr
angements
At 31 De
ce
mbe
r 202
1, the G
roup ha
d no
o-balanc
e sheet arrangements that have,
or are rea
so
nabl
y likely to have, a curre
nt
or futu
re materia
l ee
ct on the G
roup’s
in
anci
al co
nditio
n, revenue
s or exp
ens
es,
resul
ts of op
erati
ons, li
quidit
y
, cap
ital
expe
nditure
s or c
apit
al res
ource
s.
Contin
gent liabiliti
es
Co
ntinge
nt liabi
lities i
nclu
de guar
antee
s
over lo
ans ma
de to fac
ilitate third
-p
ar
ty
owne
rship o
f hotel
s of up to $6
9m an
d
out
stan
ding l
ette
rs of cre
dit of $
45
m.
The G
roup may al
so be ex
pos
ed to ad
ditio
nal
liabi
lities re
sultin
g from litig
ation an
d
se
curit
y inci
dent
s. Se
e note 3
1 to the Group
Financi
al Sta
temen
ts f
or fu
rther deta
ils.
Future cash req
uireme
nts from
contra
ctual oblig
ations
The G
roup’s future ca
sh l
ows arisi
ng from
contr
actua
l com
mitme
nts rel
ating to lon
g
term de
bt obl
igation
s (inc
ludin
g interes
t
payabl
e), derivative
s, lea
se lia
bilitie
s and
other inancial liabilities are analysed in
note 24 to the G
roup Fin
anci
al Sta
teme
nts.
Oth
er c
ash re
quirem
ents re
late to future
pe
nsio
n sch
eme c
ontrib
ution
s (see note 2
7
to the Gro
up Fina
ncia
l State
ment
s) and
cap
ital c
ommi
tment
s (see note 3
0 to the
Group
Finan
cial
Statemen
ts
).
The G
roup al
so ha
s future co
mmitm
ents fo
r
key money paym
ents w
hich are c
onting
ent
upo
n future event
s and m
ay reverse.
T
ot
al gr
os
s revenu
e
a
in IH
G’s Syste
m
12 mo
nths end
ed 31
December
2021
$bn
2020
$bn
%
change
b
Analysed
by
brand
InterC
ontin
ental
2
.7
2.0
31.6
Kim
pton
0.7
0.4
83.9
HUA
LUXE
0.1
0
.1
36.5
Crowne
Plaza
2.3
1.
8
25.7
Hotel Indigo
0.4
0.
3
73.9
EV
EN H
otel
s
0.1
0.0
1
2
7.
0
Holiday
Inn
4.0
2.8
42
.7
Ho
liday I
nn E
xpr
es
s
6.5
4.
2
54.2
Staybridge Suites
1.0
0
.7
38.
2
Candle
wood
Sui
tes
0.7
0
.7
11.
5
Othe
r
0.9
0.
5
51.9
To
t
a
l
1
9.4
13.5
42.8
An
alys
ed by ow
ne
rsh
ip t
ype
Fee busi
ness
19.
2
13.3
42.8
Owned, leased and
managed lease
0.2
0.
2
40.3
To
t
a
l
1
9.4
13.5
42
.8
a
D
e
ini
tio
ns fo
r No
n-
GA
AP m
ea
sur
es c
an be f
oun
d on p
age
s 73 to 7
7. Rec
on
cili
atio
ns o
f the
se m
ea
sure
s to th
e mo
st
dire
ct
ly co
mp
arab
le l
ine i
tem
s with
in th
e Gro
up Fi
nan
cia
l St
ate
men
ts c
an be f
oun
d on p
age
s 2
18 to 2
23
.
b
Yea
r-on
-ye
ar pe
rce
nt
age m
ove
men
t cal
cul
ate
d fro
m sou
rce 
ig
ures
, to pro
vid
e bet
te
r illu
str
atio
n of re
lat
ive im
pac
t
of C
ovid
-19 o
n bra
nd
s and o
n fee b
us
ine
ss a
nd ow
ne
d, le
as
ed a
nd ma
na
ge
d lea
se h
ote
ls.
T
ot
al gros
s revenu
e in IH
G’s System i
ncrea
se
d by 42.8
% (40.5% inc
reas
e at co
nst
ant
curren
cy) to $19.4b
n (70
% of 20
19 level
s), driven by the improve
ment in tra
ding c
ondi
tions
in many ma
rkets, pa
rtic
ularl
y through th
e sec
on
d half of 2
02
1.
Strate
gic Re
po
rt
60
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Duri
ng 202
1, the gl
oba
l IH
G Syste
m
(the numb
er of hote
ls and ro
oms w
hich
are f
ranchised, managed, o
wned, leased
or ma
nage
d le
ase) inc
reas
ed by 27 h
otels
(decre
ase
d by 5,7
09 ro
oms) to 5,9
91 ho
tels
(880
,327 r
ooms
).
Op
ening
s of 29
1 hotel
s (43,9
58 ro
oms)
was 11.6
% high
er than i
n 2020. 1
51 hotels
(15,739 roo
ms) were ope
ne
d in the
Ame
rica
s, inc
ludin
g 85 hote
ls (9,016 roo
ms)
in the H
olid
ay Inn Bra
nd Family
. 52 hotels
(10,
162 ro
oms) were op
ene
d in EM
E
AA
,
with the G
reate
r Chin
a regio
n contrib
uting
ope
ning
s of 88 h
otels (18
,057 roo
ms).
26
4 hotels (49,6
67 roo
ms) lef
t the I
HG
Syste
m in 202
1, in
cludin
g 151 Ho
liday Inn
and C
rowne Pla
za h
otels (34
,3
4
5 room
s)
as we co
nclu
de
d our review o
f thes
e bran
ds.
In 20
20, 224 h
otels (36
,91
9 room
s) left
the I
HG Sys
tem, of w
hich 10
2 hotel
s
(16,6
55 ro
oms) relate
d to the termin
ation
of the SVC po
rt
folio in t
he Ame
rica
s es
tate.
a
Includes 41 Holi
day In
n Resort properties
(10,
454 rooms)
and 2
8 Ho
lid
ay Inn C
lu
b Vacat
ion
s pro
pe
rt
ies
(8,6
79 ro
oms) (
20
20: 47 H
ol
iday I
nn Re
so
rt p
rop
er
ti
es
(11,
44
6 ro
oms) a
nd 28 H
oli
day I
nn Cl
ub Vac
ati
ons
properties (
8,679 r
ooms)
).
b
I
nc
lud
es th
ree o
pe
n hot
els t
hat w
ill b
e re
-b
ran
ded
to voc
o an
d on
e hote
l tha
t will b
e re
-b
ran
de
d to
Vignette Collection
.
T
ota
l num
be
r of ho
tel
s
5,9
9
1
T
ota
l num
be
r of ro
om
s
8
8
0,
3
2
7
Gro
up ho
tel an
d roo
m co
unt
Hotel
s
Rooms
At
31 December
2021
Change
over 202
0
2021
Change
over 202
0
Analysed
by
brand
Six
Senses
21
5
1,412
283
Rege
nt
7
–
2
,1
9
0
–
InterC
ontin
ental
204
(1)
69,4
02
(5
39)
Vignette Colle
ction
1
1
146
14
6
Kim
pton
75
2
13,283
198
HUA
LUXE
16
4
4,603
1,1
7
0
Crowne
Plaza
404
(
25)
111,178
(
7,
7
0
1
)
Hotel Indigo
130
5
16,343
739
EV
EN H
otel
s
21
5
2,9
94
584
voc
o
31
13
7,
4
4
5
2,368
Holiday
Inn
a
1,218
(58)
2
24
,68
4
(11,
870)
Ho
liday I
nn E
xpr
es
s
3,0
16
50
31
7
,329
7,
8
4
2
avid
hote
ls
48
24
4,280
2
,12
4
Staybridge Suites
315
12
34,306
1,411
Candle
wood
Sui
tes
361
(5)
3
2
,0
25
(41
0)
Othe
r
b
123
(5)
3
8
,70
7
(2,054)
To
t
a
l
5,99
1
27
88
0,3
27
(5,709)
An
alys
ed by ow
ne
rsh
ip t
ype
F
ranchised
5,0
3
3
28
6
2
6
,1
1
5
(1,
23
3)
Manag
ed
939
3
2
4
9,59
1
(3
,6
97
)
Owned, leased and
managed lease
19
(4)
4,6
21
(7
79)
To
t
a
l
5,99
1
27
88
0,3
27
(5,709)
61
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Per
fo
rman
ce
At the en
d of 202
1, the gl
oba
l pipe
line
totall
ed 1,797 hotel
s (270,9
60 ro
oms), a
dec
reas
e of 18 ho
tels (1,097 ro
oms), as the
incre
ase i
n signin
gs to 68
,870 room
s was
more th
an o
set by stron
g ope
ning
s pac
e
out of th
e pipe
line a
nd a nor
mal leve
l of
termin
ation
s from the pi
peli
ne.
The I
HG p
ipe
line rep
rese
nts hote
ls wh
ere
a contr
act h
as be
en si
gne
d and the
appropr
iat
e fees pai
d.
Group s
ignin
gs inc
reas
ed from 3
60 h
otels
in 202
0 to 437 h
otels
, and roo
ms inc
reas
ed
from 56,146 in 20
20 to 68
,870 room
s.
Signin
gs in 20
21 i
nclu
ded 2
05 hote
ls
(31,
16
9 room
s) signed fo
r the Ho
liday In
n
Bran
d Family
, a
lmos
t half o
f which we
re
contr
ibute
d by Greate
r Chin
a (89 hotel
s,
16,260 rooms
). Conversions
represent
ed
22
% of Group signings in 202
1, including six
for our n
ewes
t brand, V
ign
ette C
olle
ctio
n.
Active m
anag
eme
nt of the pi
peli
ne to
remove de
als th
at have be
com
e dorm
ant
or no l
onge
r viab
le red
uce
d the pip
elin
e
by 164 h
otels (
26,00
9 roo
ms), comp
ared
to 178 hotels (
27
,7
40 roo
ms) in 2020.
a
Includes 35 Holiday
Inn R
esort properties (8
,219 rooms)
(20
20
: 34 H
ol
iday I
nn Re
so
rt p
rop
er
ti
es (
7
,2
51 ro
oms)).
b
Include
s f
our Vignette
Collection pipeline
hotels.
T
ota
l num
be
r of ho
tel
s in th
e pi
pe
lin
e
1
,7
9
7
T
ota
l num
be
r of ro
om
s in th
e pip
el
ine
2
70,
9
6
0
Group pipelin
e
Hotel
s
Rooms
At
31 December
2021
Change
over 202
0
2021
Change
over 202
0
Analysed
by
brand
Six
Senses
33
2
2,42
4
185
Rege
nt
8
2
1,938
403
InterC
ontin
ental
79
10
19,6
79
1,90
5
Kim
pton
35
3
6,852
587
HUA
LUXE
23
(2)
6,0
4
5
(86
2)
Crowne
Plaza
96
7
25,2
61
1,0
33
Hotel Indigo
114
10
18,452
2
,74
8
EV
EN H
otel
s
29
(2)
4,907
(13
9)
voc
o
38
9
10,0
9
0
1,9
11
Holiday
Inn
a
244
(18)
4
8,07
8
(3,0
8
5)
Ho
liday I
nn E
xpr
es
s
645
(38
)
83,026
(4
,1
26
)
avid
hote
ls
164
(28)
14,4
95
(3,0
3
1)
Staybridge Suites
156
1
16,84
3
(64
7)
Candle
wood
Sui
tes
93
20
7,7
6
5
1,39
6
Atwe
ll Su
ites
23
4
2,275
426
Othe
r
b
17
2
2,83
0
199
To
t
a
l
1,7
9
7
(18)
270
,960
(1,097
)
An
alys
ed by ow
ne
rsh
ip t
ype
F
ranchised
1,290
(2
0)
157
,832
(1,
23
6)
Manag
ed
506
2
112
,973
139
Owned, leased and
managed lease
1
–
155
–
To
t
a
l
1,7
9
7
(18)
270
,960
(1,097
)
Perfor
mance
co
nti
nu
e
d
G
ro
u
p
c
o
ntin
u
e
d
Strate
gic Re
po
rt
62
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
56%
Ame
ric
as revenu
e 2021
($
7
74
m)
57%
Ame
ric
as num
be
r of
roo
ms
(
49
9,0
8
9)
Comparable Re
vP
AR
a
mov
ement
on p
reviou
s yea
r
(12 month
s end
ed 3
1 De
cem
ber 2
02
1)
Fee
business
InterC
ontin
ental
73.0
%
Kim
pton
9
0.1
%
Crowne
Plaza
54
.
4%
Hotel Indigo
82
.
4%
EV
EN H
otel
s
112
.
4%
Holiday
Inn
56.8%
Ho
liday I
nn E
xpr
es
s
53.3%
avid
hote
ls
11
5.
4%
Staybridge Suites
40
.4%
Candle
wood
Sui
tes
30.
5%
All brands
53.8%
Owned, leased and
managed lease
All brands
91.6
%
Industry performance in 2021
Indu
str
y RevPAR in the Am
eric
as inc
reas
ed
by 63
.4% com
pare
d to 2020 (dec
line
d by
20.7% ag
ainst 2
019), dri
ven by a 19.5%
incre
ase i
n average d
aily rate an
d a 14.6p
pt
incre
ase i
n occ
upan
cy
. M
any market
s acros
s
the Am
eric
as st
ar
ted to rec
over durin
g 202
1,
le
d by improving o
ccu
pancy l
evels, a
lthou
gh
remai
ned b
ehin
d pre
-p
ande
mic leve
ls.
Over
all dem
and for h
otel roo
ms inc
reas
ed
by 38.
4% and su
pply in
crea
se
d by 1.2
%
.
The U
S lod
ging in
dustr
y s
howed th
e
earl
iest a
nd stron
ges
t rec
overy i
n the regi
on,
com
pare
d again
st pre
-
pan
demi
c levels
.
US in
dustr
y Rev
P
AR incre
as
ed by 63
.9
%
com
pare
d to 2020 (dec
line
d by 18.
2
%
agai
nst 20
19), drive
n by increa
se
s in both
oc
cupa
ncy and aver
age da
ily rate. RevPAR
in the U
S upp
er mid
sca
le ch
ain sc
ale, wh
ere
the H
oliday In
n and H
olid
ay Inn E
xpres
s
bran
ds op
erate, in
creas
ed by 5
9.3%
.
Indu
str
y RevPAR incre
ase
d by 46
.9% i
n
Can
ada a
nd 81.
3% in M
exic
o, driven by
incre
ase
s in b
oth occ
upan
cy and avera
ge
daily rate.
IHG
’s regio
nal p
er
form
anc
e in 2
021
IH
G’s comp
arab
le RevPAR
a
in the Am
eric
as
incre
ase
d by 54
.0% c
ompa
red to 202
0
(declin
ed by 19.
8% aga
inst 2
019), drive
n
by a 15.9
ppt i
ncrea
se in o
ccu
pancy
cou
ple
d with a 12.
2
% incre
as
e in average
daily r
ate. The re
gion i
s pred
omina
ntly
repre
sente
d by the US
, whe
re comp
arab
le
RevP
AR
a
incre
ase
d by 54
.4% co
mpare
d
to 2020 (de
cline
d by 17
.0% a
gain
st 20
19),
and wh
ere we are mo
st rep
rese
nted by
our up
per m
idsc
ale b
rand
s Hol
iday Inn
and H
olid
ay Inn E
xpres
s. U
S RevPAR
a
for
the H
oliday In
n bran
d incre
ase
d by 58.
2
%
whils
t the H
oliday In
n Ex
pres
s bran
d
incre
ase
d by 53
.5%
.
RevP
AR
a
in Ca
nad
a incre
ase
d by 46
.0%
,
whils
t Mexi
co inc
reas
ed by 5
5.
2%
.
a
Comparable RevP
AR and
occupancy incl
ude the
imp
ac
t of ho
tel
s temp
or
aril
y clo
se
d as a r
esu
lt
of Covi
d-19.
“
In 2021 as we w
elcomed guests back, we met t
heir
ev
olving needs, suppor
t
e
d our ow
ners as t
he pace of
r
ecov
e
ry incr
eased and ex
ecuted our s
tr
ateg
y t
o dr
iv
e
gr
ow
th f
or the y
ears t
o come. We
’v
e cont
inued t
o se
e
conidence in our esta
blished bra
nds and r
eached new
gr
ow
th m
ilest
ones for our ne
west br
ands: a
vid® hot
els,
Atw
ell Sui
t
es
™
, and v
oco
™
.
”
Eli
e Maa
lou
f
Chie
f E
xecutive O

icer, Americ
as
Amer
icas
voc
o™ St. J
ame
s Hote
l, New O
rle
an
s, US
63
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Per
fo
rman
ce
E
xcluding th
e resu
lts of thre
e owne
d E
VEN
hotel
s which we
re disp
os
ed an
d retain
ed
unde
r fran
chis
e contra
cts in N
ovemb
er 20
21,
and th
e impa
ct of on
e lea
se
d hotel th
at
exited in D
ec
emb
er 2
020, revenu
e incre
ase
d
by $3
4m an
d ope
rating pro
it im
proved
by $14
m.
For dis
cus
sion o
f 2020 re
sult
s, and th
e
cha
nges c
omp
ared to 20
19, refe
r to
the 20
20 Annu
al Rep
or
t and Form 2
0
F
.
www.ihgplc.com/i
nv
estors
under
Annual Repor
t
a
D
e
ini
tio
ns fo
r No
n-
GA
AP r
even
ue an
d op
era
ting
pro
i
t mea
su
res c
an b
e foun
d on p
ag
es 73 to 7
7.
Rec
on
cil
iati
on
s of th
es
e mea
su
res to t
he mo
st d
irec
tly
co
mpa
rab
le li
ne it
ems w
ith
in the G
rou
p Fin
an
cia
l
St
atem
en
ts c
an be f
oun
d on p
age
s 2
18 to 2
23
.
b
C
omparable Re
vP
AR and
occupancy include
the im
pact
of ho
tel
s tem
por
ari
ly cl
os
ed as a r
es
ult of C
ovi
d-1
9.
c
Pe
rce
nta
ge c
han
ge c
ons
id
ere
d not m
ea
nin
gful
, suc
h as
whe
re a p
osi
tive b
al
anc
e in th
e late
st p
er
iod i
s co
mpa
rab
le
to a ne
gat
ive or z
ero b
ala
nc
e in th
e prio
r pe
rio
d.
Review of t
he yea
r en
de
d
31
December 20
21
With 4
,26
8 hote
ls (499,08
9 roo
ms), the
Ame
rica
s repre
sent
s 57
% of the G
roup’s
room c
ount. T
he key pro
it-ge
nerati
ng regi
on
is the U
S, and th
e Grou
p is als
o repre
sente
d
in L
atin Ame
rica, C
ana
da, M
exico a
nd the
Cari
bbe
an. 9
2% of ro
oms i
n the regi
on are
ope
rated u
nde
r the fran
chis
e busi
nes
s
mod
el, pri
marily u
nde
r our bra
nds in th
e
mids
cal
e se
gment
s (inc
luding t
he Ho
liday
Inn Brand Family
). In the upscale market
se
gment
, Crowne P
laz
a is pre
dom
inantly
franc
hise
d whe
rea
s, in the lu
xury m
arket
se
gment
, Inter
Co
ntinent
al bra
nde
d hotel
s
are op
erated u
nde
r both fra
nchis
e and
managemen
t agr
eements,
whi
lst Kim
pto
n
is pre
domi
nantly m
anag
ed. 14 of th
e
Group’s 17 hotel b
rands a
re repre
sente
d
in the Am
eric
as
.
The im
pac
t of travel res
trictio
ns co
ntinue
d
to impa
ct the 
irs
t two mo
nths of 20
21,
befo
re we saw a not
abl
e pick-up in de
man
d
in Ma
rch, be
ne
it
ting from d
ome
stic le
isure
trips aro
und the s
pring b
reak p
erio
d.
As the s
ec
ond qu
ar
ter pro
gres
sed, d
ema
nd
conti
nue
d to grow par
ticul
arly in no
n-
urban
and re
sor
t de
stin
ations
. Over th
e summ
er
mon
ths, l
eis
ure de
ma
nd re
cove
red ra
pidl
y
.
De
mand f
rom es
sen
tial bu
sine
ss travell
ers
remai
ned re
silie
nt and we s
aw sign
s of
cor
porate d
ema
nd and gro
up me
etings s
tar
t
to return. By th
e end o
f the se
co
nd qua
rter,
13 st
ates in the U
S saw Rev
P
AR
b
ahead of
201
9 level
s and a fur
the
r 17 were at le
ast
90
% of 20
19 RevPAR
b
.
The re
cover
y co
ntinue
d into the thi
rd quar
ter
,
le
d by the US fra
nchis
ed e
st
ate, which
be
ne
its fro
m a weightin
g towards hotel
s
in the mi
dsc
ale s
egm
ents
. Leis
ure dem
and
remai
ned s
trong, dri
ving rate. We al
so s
aw
an inc
reas
e in dis
cretion
ar
y bus
ines
s travel
dem
and an
d group de
man
d.
The re
cover
y co
ntinue
d into the fou
rth
quar
ter
, with o
ccup
ancy of 6
0% (down
5ppt
s com
pare
d to 201
9 with rate 1% high
er
tha
n 2
019
).
Ame
rica
s com
parab
le RevPAR
b
declin
ed
28% in th
e ir
st qua
rte
r
, the
n grew 15
4% in
the se
co
nd qua
rte
r
, 76% i
n the third qu
arte
r
,
80
% in the four
th qu
ar
ter and 5
4% in the
full yea
r
, all wh
en c
ompa
red to 20
20.
Whe
n com
parin
g to 2019, p
rior to the
pandemic, Americ
as comparable RevP
AR
b
dec
line
d 4
3% in the 
irs
t quar
ter
, 26
% in the
se
con
d quar
ter
, 10% i
n the third qu
arte
r
, 6
%
in the fou
rth qu
ar
ter and 2
0% in th
e full year.
Revenu
e from the rep
or
ta
ble se
gme
nt
a
incre
ase
d by $26
2m (51%) to $774m,
(a decre
ase of $
266
m co
mpare
d to 201
9).
Op
eratin
g pro
it incre
ase
d by $3
59
m to
$5
37m driven by the in
crea
se in reven
ue
and a $
96
m de
creas
e in op
eratin
g
exceptio
nal c
harge
s. O
perati
ng pro
it
from the re
por
t
able s
egm
ent
a
increased
by $26
3m (89
%) to $55
9m (a dec
reas
e of
$141m co
mpare
d to 201
9). On an un
derly
ing
a
bas
is, reven
ue inc
reas
ed by $26
8m (5
4%),
whilst unde
rlying
a
proit incr
eased by
$257m
(84
%)
.
Revenu
e and op
eratin
g pro
it from the
reportable
segment
a
are further analysed
by fee bu
sine
ss a
nd owne
d, le
ase
d and
managed lease hotels.
Fee bu
sine
ss reve
nue
a
incre
ase
d by $23
4m
(51%) to $69
1m. Fee bu
sine
ss o
pe
rating
pro
it
a
incre
ase
d by $24
5m (
76%) to $56
8m,
be
ne
it
ting from th
e improvem
ent in de
man
d,
alon
g with the d
elive
ry of s
ust
aina
ble fe
e
bus
ine
ss co
st s
avings
. Op
erating p
roi
t from
the rep
or
tab
le se
gme
nt
a
also included
the
be
ne
it of $
11m payroll t
ax cred
its, wh
ich
relate
s to the Gro
up corp
orate o
ic
e
presen
ce in
certain
coun
tr
ies.
Owned, leased and
managed lease
rev
en
u
e in
crea
se
d by $28m to $
83
m, with
comparabl
e RevPAR
b
up 92
% co
mpare
d
to 2020, (down 41% co
mpare
d to 201
9),
lea
ding to an own
ed, l
ea
se
d a
nd m
an
age
d
lea
se op
erati
ng los
s of $
9m co
mpa
red to
a $27m lo
ss in th
e prior ye
ar
.
Ameri
cas results
12 mo
nths end
ed 31
December
2021
$m
2020
$m
20
21 v
s
2020
% ch
ang
e
2019
$m
2020 vs
2019
% ch
ang
e
Reven
ue fr
om th
e re
por
ta
bl
e se
gm
ent
a
Fee busi
ness
691
4
57
51.
2
853
(4
6
.4
)
Owned, leased and
managed lease
83
55
50.9
187
(70
.6)
To
t
a
l
7
74
512
51.
2
1,04
0
(50.
8)
Op
er
atin
g pro
it f
rom t
he re
po
rt
ab
le se
gm
en
t
a
Fee busi
ness
568
323
75.9
663
(51.
3)
Owned, leased and
managed lease
(9)
(2
7)
(6
6
.7
)
37
NM
c
559
296
88.9
700
(
5
7.
7
)
Operati
ng ex
ceptional it
ems
(2
2)
(11
8)
(81
.4)
(62)
90.
3
Ope
rating proit
537
178
20
1
.7
638
(
7
2
.1)
Perfor
mance
co
nti
nu
e
d
Amer
icas
c
o
nti
nu
e
d
Strate
gic Re
po
rt
64
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ame
ric
as ho
tel an
d roo
m co
unt
Hotel
s
Rooms
At
31 December
2021
Change
over 202
0
2021
Change
over 202
0
Analysed
by
brand
Six
Senses
1
1
20
20
InterC
ontin
ental
43
(3)
1
5,6
51
(1
,1
3
8
)
Kim
pton
64
–
11,0
0
8
(8
9)
Crowne
Plaza
112
(24)
2
7,
9
3
0
(
7,
4
7
5
)
Hotel Indigo
66
(1)
8
,
74
5
(4
8)
EV
EN H
otel
s
19
4
2
,74
3
504
voc
o
5
4
469
420
Holiday
Inn
a
716
(
50)
1
20,
8
50
(10,0
9
2)
Ho
liday I
nn E
xpr
es
s
2,4
36
11
221,
727
1,3
85
avid
hote
ls
48
24
4,280
2
,12
4
Staybridge Suites
296
11
31,
097
1,0
40
Candle
wood
Sui
tes
361
(5)
3
2
,02
5
(410
)
Othe
r
b
101
(2)
22,544
(
1,1
6
4)
To
t
a
l
4,268
(3
0)
499,
089
(14
,9
23)
An
alys
ed by ow
ne
rsh
ip t
ype
F
ranchised
4,087
(1
8)
46
0,2
57
(11,5
4
5)
Manag
ed
178
(9)
37
,505
(2,88
6)
Owned, leased and
man
ag
edle
as
e
3
(3)
1,327
(49
2
)
To
t
a
l
4,268
(3
0)
499,
089
(14
,9
23)
a
I
ncl
ude
s 19 H
ol
iday I
nn Re
so
rt p
rop
er
ti
es (5
,3
34 ro
om
s) and 2
8 Hol
ida
y Inn C
lub Vac
ati
on
s pro
per
ti
es (8
,67
9 roo
ms)
(20
20
: 2
2 Ho
lid
ay Inn R
es
or
t pro
pe
rti
es (6
,00
3 roo
ms) an
d 28 H
oli
day In
n Cl
ub Vac
atio
ns p
rop
er
tie
s (8,6
79 ro
om
s)).
b
I
nc
lud
es o
ne op
en h
ote
l tha
t will b
e re
-b
ran
de
d to voc
o.
T
ota
l num
be
r of ho
tel
s
4
,
26
8
T
ota
l num
be
r of ro
om
s
499
,
089
Ame
rica
s system s
ize de
crea
se
d by 30 hotel
s
(14,92
3 room
s) to 4,26
8 hotels
, a redu
ction
of 2.
9% yea
r
-
o
n-year. 151 hotels (15
,
739 ro
oms)
ope
ne
d in the yea
r
, c
ompa
red to 167 h
otels
(16,7
4
6 room
s) in 2020. O
pen
ings in
clud
ed
85 h
otels (9,016 ro
oms) in the H
olid
ay Inn
Bran
d Family
, a f
ur
ther 24 avid h
otels an
d
the voc
o Tim
es S
quare S
outh in N
ew Y
ork.
181 h
otels (30,6
62 roo
ms) were remove
d
from the A
meric
as sys
tem in 20
21, i
nclu
ding
92 H
olid
ay Inn and C
rowne Pla
za h
otels
(20,127 room
s)
, driven by th
e con
clus
ion
of our qu
alit
y review. This c
ompa
res to
176 hotels (
27
,
38
1 room
s) that lef
t the
Ame
rica
s system i
n 2020, of wh
ich 10
2 hotel
s
(16,6
55 ro
oms) relate
d to the termin
ation
of the SVC po
rt
folio in t
he Ame
rica
s es
tate.
T
ota
l num
be
r of ho
tel
s in th
e pi
pe
lin
e
9
26
T
ota
l num
be
r of ro
om
s in th
e pip
el
ine
9
6,6
0
3
At 31 De
ce
mbe
r 202
1, the A
meric
as
pip
eline tot
alle
d 926 h
otels (9
6,60
3 room
s),
repre
senti
ng a de
crea
se of 6
0 hotels
(6,
15
4 rooms) over the p
rior ye
ar
.
Signin
gs of 17
5 hotels (17
,647 roo
ms)
were ah
ead of l
ast ye
ar by 38 ho
tels
(3,60
8 room
s)
. The m
ajorit
y of 20
2
1
signi
ngs were w
ithin our m
idsc
ale a
nd upp
er
mids
cal
e bran
ds inc
ludin
g the Ho
liday In
n
Bran
d Family (
75 hote
ls, 7
,49
3 room
s)
and avid h
otels (13 h
otels
, 892 ro
oms).
Signin
gs in ou
r Suite
s brand
s (Stayb
ridge
Suite
s, Ca
ndlewo
od S
uites an
d Atwel
l Suites)
amou
nted to 6
4 hotels (5
,66
9 room
s).
84 h
otels (8,0
62 roo
ms) were remove
d from
the pip
elin
e in 20
21 c
ompa
red to 10
5 hotel
s
(11,3
98
room
s) in 202
0.
Americas pipe
line
Hotel
s
Rooms
At
31 December
2021
Change
over 202
0
2021
Change
over 202
0
Analysed
by
brand
Six
Senses
6
(1)
471
(4
8
)
InterC
ontin
ental
9
2
2
,2
52
528
Kim
pton
19
(1)
3,431
(
52)
Crowne
Plaza
8
2
1,64
3
393
Hotel Indigo
29
(
2)
4,0
70
(85
)
EV
EN H
otel
s
10
(6)
1
,1
6
6
(80
9)
voc
o
5
3
1,04
5
7
71
Holiday
Inn
c
74
(6)
9,
468
(978)
Ho
liday I
nn E
xpr
es
s
338
(4
8)
3
2
,70
1
(4
,6
5
4
)
avid
hote
ls
164
(27
)
14,49
5
(2,816)
Staybridge Suites
137
2
1
4,0
5
0
(11)
Candle
wood
Sui
tes
93
20
7,
7
6
5
1,3
96
Atwe
ll Su
ites
23
4
2,275
426
Othe
r
11
(2)
1
,7
7
1
(
21
5)
To
t
a
l
926
(60)
96
,60
3
(6,1
5
4)
An
alys
ed by ow
ne
rsh
ip t
ype
F
ranchised
889
(5
5)
9
0,73
2
(
5,7
9
6)
Manag
ed
37
(5)
5,871
(3
58
)
To
t
a
l
926
(60)
96
,60
3
(6,1
5
4)
c
In
clu
de
s one H
ol
iday I
nn Re
so
r
t prop
er
t
y (16
5 ro
oms) (
202
0: th
re
e Hol
iday I
nn Re
so
r
t prop
er
ti
es (4
90 ro
om
s)).
65
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Per
fo
rman
ce
22%
EME
A
A revenu
e 2021
(
$
303m
)
25%
EME
A
A num
ber of roo
ms
(2
24
,2
0
0)
Industry performance in 2021
Indu
str
y RevPAR in EME
A
A in
crea
sed
by 44
.0% c
ompa
red to 20
20 (declin
ed by
49.
9% ag
ains
t 201
9). An occ
upan
cy incre
ase
of 8.
9ppt
s was c
oupl
ed with a 1
0.5%
incre
ase i
n average d
aily rate. I
n Europe,
RevPAR increa
se
d by 64
.7% com
pare
d to
202
0 (
de
cline
d by 49.
2
% agai
nst 20
19)
driven by b
oth oc
cupa
ncy and aver
age
daily r
ate. In the U
K
, indu
str
y RevPAR
incre
ase
d by 9
0.3% c
omp
ared to 20
20
(declin
ed by 4
0.4% again
st 20
19). UK ro
om
dem
and in
crea
se
d by 54.
4% whilst s
upp
ly
grow
th remain
ed s
uppre
ss
ed at 0.8
% par
tly
due t
o construct
ion dela
ys fr
om supply
chain issues. In German
y Re
vP
AR incr
eased
by
9.3%, whil
st RevPAR in France inc
reas
ed
by
6
8
.7
%
.
RevPAR increa
se
d by 61.
5% in the M
iddl
e
Ea
st, dri
ven by both o
ccup
ancy a
nd averag
e
daily r
ates, as re
stric
tions e
as
ed, an
d dem
and
sta
rte
d to return. In
dia s
aw RevPAR increa
se
by 30
.4%
.
Els
ewhere i
n EME
A
A
, RevPAR in Austral
ia
incre
ase
d by 33
.6%
, whi
lst J
apan an
d Tha
iland
dec
line
d by 11.5% a
nd 41.
2% re
spe
ctive
ly
,
driven p
rimaril
y by large re
ducti
ons in
average daily rate.
IHG
’s regio
nal p
er
form
anc
e in 2
021
EME
A
A c
omp
arabl
e RevPAR
a
increased by
35
.0% co
mpare
d to 2020 (de
cline
d 51.8
%
agai
nst 20
19), drive
n by a 9.
1ppt inc
reas
e
in oc
cupa
ncy co
uple
d with a 5
.3% in
crea
se
in averag
e daily rate
. In the U
K, w
here I
HG
has th
e large
st re
giona
l pres
enc
e, RevPAR
a
incre
ase
d by 70.4% com
pare
d to 2020
(declin
ed by 41.0% a
gain
st 20
19), led by
the Provin
ce
s (76.
4%)
, re
lec
ting lowe
r
weightin
g to inbo
und inter
nation
al travel.
Ge
rmany saw a Rev
P
AR
a
incre
ase o
f 1.
2%
and Franc
e incre
ase
d by 55.
2
%
.
RevP
AR
a
in the M
iddle E
as
t incre
ase
d by
34
.9
%, wi
th the four
th qu
arte
r up 10
9.7%
rel
ecti
ng the E
xp
o 2020 d
ema
nd in D
ubai.
Indi
a RevPAR
a
incre
ase
d by 38
.6%
.
Els
ewhere i
n EME
A
A
, RevPAR
a
increas
ed in
Austra
lia by 17
.6
%
, whils
t travel restr
iction
s
resul
ted in o
ccup
ancy l
ed de
clin
es in
Jap
an (9.
1%) and Tha
iland (4
4.7%).
a
Comparable RevP
AR and
occupancy incl
ude the
imp
ac
t of ho
tel
s temp
or
aril
y clo
se
d as a r
esu
lt
of Covi
d-19.
Comparable Re
vP
AR
a
mov
ement
on p
reviou
s yea
r
(12 month
s end
ed 3
1 De
cem
ber 2
02
1)
Fee
business
Six
Senses
32
.7
%
InterC
ontin
ental
26.9%
Kim
pton
(8.4
)%
Crowne
Plaza
34.3%
Hotel Indigo
62
.6%
voc
o
2
4
.1%
Holiday
Inn
34
.
4%
Ho
liday I
nn E
xpr
es
s
46.2%
Staybridge Suites
46.2%
All brands
34.8%
Owned, leased and
managed lease
InterC
ontin
ental
0.1
%
Kim
pton
111.1%
voc
o
136.6%
All brands
46.6
%
“
Alt
hough Cov
id-
19 conti
nued t
o impac
t tr
avel
, our f
ocus
r
emained on supporting our col
leagues, guests and o
wners
, while
lev
eraging ou
r model to su
ppor
t susta
inable long-
t
erm gr
owth.
W
e launched and signed deals f
or our new L
ux
ury & Lif
e
style
brand, Vi
gnet
t
e
TM
Collecti
on, susta
ined str
ong int
eres
t in our
establi
shed brands and made meani
ngful pr
ogr
ess t
o impr
ov
e
the qua
lity of our es
tat
e.
”
K
enneth Macpherson
Chie
f E
xecutive O

icer, EME
A
A
Perfor
mance
co
nti
nu
e
d
EM
E
A
A
Ho
lid
ay Inn D
ubli
n Airp
or
t, I
rela
nd
Strate
gic Re
po
rt
66
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Own
ed, le
as
ed an
d man
age
d lea
se revenu
e
incre
ase
d by $4
0m to $
15
4m, with Rev
P
AR
b
up 47% c
omp
ared to 20
20 (down 69
%
com
pare
d to 2019), l
eadi
ng to an owne
d,
lea
se
d and m
anag
ed le
as
e ope
rating lo
ss
of $2
7m compa
red to a $
32m los
s in the
prio
r year
, as the lif
tin
g of travel res
trictio
ns,
pred
omin
antly in the U
K
, be
gan to ea
se
the trad
ing ch
allen
ges o
n this la
rgely
urb
an-
c
entre
d p
or
tfo
lio.
For dis
cus
sion o
f 2020 re
sult
s, and th
e
cha
nges c
omp
ared to 20
19, refe
r to
the 20
20 Annu
al Rep
or
t and Form 2
0
F
.
www.ihgplc.com/i
nv
estors
under
Annual Repor
t
a
D
e
ini
tio
ns fo
r No
n-
GA
AP r
even
ue an
d op
era
ting
pro
i
t mea
su
res c
an b
e foun
d on p
ag
es 73 to 7
7.
Rec
on
cil
iati
on
s of th
es
e mea
su
res to t
he mo
st d
irec
tly
co
mpa
rab
le li
ne it
ems w
ith
in the G
rou
p Fin
an
cia
l
St
atem
en
ts c
an be f
oun
d on p
age
s 2
18 to 2
23
.
b
C
omparable Re
vP
AR and
occupancy include
the im
pact
of ho
tel
s tem
por
ari
ly cl
os
ed as a r
es
ult of C
ovi
d-1
9.
c
Pe
rce
nta
ge c
han
ge c
ons
id
ere
d not m
ea
nin
gful
, suc
h as
whe
re a p
osi
tive b
al
anc
e in th
e late
st p
er
iod i
s co
mpa
rab
le
to a ne
gat
ive or z
ero b
ala
nc
e in th
e prio
r pe
rio
d.
Review of t
he yea
r en
de
d
31
December 20
21
Co
mpris
ing 1,137 hotels (
2
24,2
00 roo
ms)
at the en
d of 20
21, EM
E
A
A repre
sente
d 25%
of the G
roup’s room cou
nt. Revenu
es are
prim
arily ge
nera
ted from h
otels in th
e UK
and g
ateway cities in c
ontin
enta
l Europe, th
e
Mid
dle E
ast an
d Asia
. The l
arges
t prop
or
tion
of room
s in the U
K and c
ontin
enta
l Europe
are op
erated u
nde
r the fran
chis
e bus
ines
s
mod
el, pri
marily u
nde
r our upp
er mi
dsc
ale
bran
ds (Ho
liday In
n and H
oliday In
n Ex
pres
s).
In the up
sc
ale m
arket seg
ment
, Crowne P
laz
a
is evenl
y prop
or
tione
d bet
we
en the fra
nchi
se
d
and m
anag
ed op
erati
ng mo
dels
, whe
reas in
the luxu
ry m
arket se
gment
, the maj
orit
y of
Inter
Co
ntinent
al bra
nde
d hotel
s are ope
rated
under ma
nagement
agr
eements. T
he maj
ority
of hotel
s in market
s outs
ide of Eu
rope are
operated u
nder the ma
naged business model.
Per
form
ance i
n the regi
on co
ntinue
d to
rel
ec
t the die
ring leve
ls of gove
rnmen
t
-
mandat
ed closur
es and r
estrict
ions.
Per
form
ance i
n the 
irst qu
ar
ter was
impa
cted by travel re
stric
tion
s in a numb
er
of market
s. Th
e sec
ond q
uar
ter s
aw mod
est
improvem
ents i
n tradin
g as the U
K pe
rmit
ted
lei
sure travel towards th
e end o
f May
, w
hilst
gov
ernment
mandat
ed restr
ictions
remai
ned
in muc
h of conti
nent
al Europ
e, and S
outh
Ea
st Asi
a conti
nue
d to be imp
acte
d by lower
level
s of intern
ationa
l dem
and.
Throu
gh the se
co
nd hal
f of the yea
r
, RevPAR
conti
nue
d to improve befo
re restri
ction
s
were rein
state
d in ce
r
tain m
arkets follow
ing
incre
ase
d c
ase
s from the O
micro
n variant
in December
.
Hote
ls co
ntinue
d to reop
en, with o
nly
21 h
otels re
mainin
g temp
orarily c
los
ed at th
e
end o
f the year
, co
mpare
d to 21
5 at the st
ar
t
of the ye
ar
; all 1
6 of the own
ed, le
as
ed an
d
man
age
d lea
se hote
ls were o
pen
.
EME
A
A c
omp
arabl
e RevPAR
b
declined 62%
in the 
irst q
uar
ter
, then grew 17
9% in th
e
se
con
d quar
ter
, 86
% in the third q
uar
ter
, 11
8%
in the fou
rth qu
ar
ter and 3
5% in the f
ull year
whe
n com
parin
g to 2020. Wh
en co
mpa
ring
to 201
9, prior to the p
and
emic, EM
E
A
A
comparable Re
vP
AR
b
dec
line
d 71% i
n the i
rst
quar
ter
, 65% i
n the se
co
nd qua
rter, 43% in
the third qu
ar
ter
, 3
3% in th
e four
th quar
ter
and 52
% in the ful
l year
.
Revenu
e from the rep
or
ta
ble se
gme
nt
a
incre
ase
d by $8
2m (37%) to $30
3m
(a decre
ase of 5
8% c
ompa
red to 20
19).
The o
per
ating lo
ss de
crea
se
d by $176m
to a los
s of $2m, dr
iven by an inc
reas
e in
revenue a
nd a $12
1m de
crea
se in o
pera
ting
exceptio
nal c
harge
s. O
perati
ng pro
it from
the rep
or
tab
le se
gme
nt
a
incre
ase
d by $5
5m
to $5m (a de
cline o
f $2
12m com
pare
d to
201
9). On an un
derly
ing
a
ba
sis
, revenu
e
incre
ase
d by $79
m (35%), whilst u
nde
rlying
a
pro
it inc
reas
ed by $
59m, f
rom a $5
4m lo
ss
to a $5m p
roi
t.
Revenu
e and op
eratin
g pro
it from the
reportable
segment
a
are further analysed
by fee bu
sine
ss a
nd owne
d, le
ase
d and
managed lease hotels.
Fee bu
sine
ss reve
nue
a
incre
ase
d by $4
2m
(39%) to $14
9m
. Fee bus
ine
ss op
erati
ng
pro
it
a
improve
d by $50
m to $32m
,
be
ne
iting fro
m the imp
rovement in t
rading
and the
deliv
ery of sustai
nable f
ee business
co
st savin
gs. Re
sult
s incl
ude
d $29
m of
inc
entive ma
nage
me
nt fees re
co
rded
(20
20: $
14m; 20
19: $
90
m), driven by an
improvement in trading, par
ticularly in
the Midd
le East.
EMEA
A results
12 mo
nths end
ed 31
December
2021
$m
2020
$m
20
21 v
s
2020
% ch
ang
e
2019
$m
2020 vs
2019
% ch
ang
e
Reven
ue fr
om th
e re
por
ta
bl
ese
gm
ent
a
Fee busi
ness
149
107
39.
3
337
(68
.
2)
Owned, leased and
managed lease
154
114
3
5
.1
386
(70
.5)
To
t
a
l
303
221
3
7.
1
723
(6
9.4)
Op
er
atin
g pro
it
/(lo
ss) fro
m th
e rep
or
ta
bl
e se
gme
nt
a
Fee busi
ness
32
(18)
NM
c
202
NM
c
Owned, leased and
managed lease
(27)
(3
2)
(15
.6)
15
NM
c
5
(
50)
NM
c
217
NM
c
Operati
ng ex
ceptional it
ems
(7)
(128)
(94.
5)
(1
09)
1
7.
4
Ope
rating (loss)/
proit
(2)
(178)
(98.9)
108
NM
c
67
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Per
fo
rman
ce
Perfor
mance
co
nti
nu
e
d
E
ME
A
A
c
o
ntin
u
e
d
EME
A
A hot
el an
d roo
m cou
nt
Hotel
s
Rooms
At
31 December
2021
Change
over 202
0
2021
Change
over 202
0
Analysed
by
brand
Six
Senses
19
4
1,
2
70
263
Rege
nt
3
–
771
–
InterC
ontin
ental
108
–
32,561
87
Vignette Colle
ction
1
1
146
14
6
Kim
pton
10
2
2
,1
4
6
287
Crowne
Plaza
182
(6)
44
,828
(1
,69
6)
Hotel Indigo
48
2
5
,1
8
3
117
voc
o
21
5
5,882
1,0
02
Holiday
Inn
a
380
(
2
1)
70,824
(4
,1
6
0)
Ho
liday I
nn E
xpr
es
s
333
4
48,548
1,1
9
2
Staybridge Suites
19
1
3,209
37
1
Othe
r
b
13
(4)
8,8
32
(1,2
58)
To
t
a
l
1,
137
(12)
224,200
(3,
649)
An
alys
ed by ow
ne
rsh
ip t
ype
F
ranchised
767
(7)
12
5
,70
7
(13)
Manag
ed
354
(4)
9
5
,1
9
9
(3,
34
9)
Owned, leased and
man
ag
edle
as
e
16
(1)
3,2
94
(287
)
To
t
a
l
1,
137
(12)
224,200
(3,
649)
a
I
ncl
ude
s 14 H
oli
day In
n Re
sor
t p
rop
er
tie
s (3,
2
29 ro
oms) (
202
0: 17 H
ol
iday I
nn Re
so
r
t prop
er
ti
es (3,
3
30 ro
oms)).
b
I
nc
lud
es t
wo op
en h
ote
ls th
at wil
l be re
-
bra
nde
d to vo
co a
nd Vi
gne
tt
e Co
lle
cti
on.
T
ota
l num
be
r of ho
tel
s
1
,1
3
7
T
ota
l num
be
r of ro
om
s
2
24
,
2
0
0
EME
A
A sys
tem size d
ecre
as
ed by 12 hote
ls
(3,64
9 room
s) to 1,
137 h
otels (
224
,20
0
room
s) during 202
1, a re
ducti
on of 1.6
%
year-on
-year
. 52 hotel
s (10,
162 roo
ms)
ope
ne
d in the yea
r
, c
ompa
red to 61 h
otels
(11,28
8 room
s) in 2020, inc
ludin
g Hotel X
Bris
ban
e For
titude Valley
, Austral
ia, as p
ar
t
of the V
ignet
te C
olle
ction
.
64 h
otels (13,
811 roo
ms) were remove
d
from the E
ME
A
A syste
m in 202
1, inc
ludin
g
48 H
olid
ay Inn and C
rowne Pl
az
a hotels
(10,7
41 room
s), driven by the co
mple
tion
of the qu
alit
y review. This co
mpa
red to
38 h
otels (6,8
09 ro
oms) that le
ft th
e
EME
A
A sys
tem in 20
20.
T
ota
l num
be
r of ho
tel
s in th
e pi
pe
lin
e
41
8
T
ota
l num
be
r of ro
om
s in th
e pip
el
ine
8
0,
9
3
2
At 31 De
ce
mbe
r 202
1, the E
ME
A
A
pip
eline tot
alle
d 418 hote
ls (80,93
2 room
s),
repre
senti
ng an inc
reas
e of 29 h
otels
(4,812 roo
ms) over the pri
or year. Signings o
f
10
9 hotels (
20,376 roo
ms) were ahe
ad of la
st
year by 27 h
otels (6,473 ro
oms), inclu
ding a
multi
-prop
er
t
y dea
l which e
nco
mpa
ss
ed a
new pro
per
t
y for voc
o in Alg
ar
ve, Por
tugal a
nd
three h
otels s
igne
d to the Vig
net
te Coll
ec
tion
in Austr
ia and Po
rtu
gal.
28 hotel
s (5,4
02 roo
ms) were remove
d from
the pip
elin
e in 20
21 c
ompa
red to 36 h
otels
(7
,60
1 room
s) in 2020.
EMEA
A pipeline
Hotel
s
Rooms
At
31 December
2021
Change
over 202
0
2021
Change
over 202
0
Analysed
by
brand
Six
Senses
23
2
1
,72
0
169
Rege
nt
6
1
1,341
86
InterC
ontin
ental
43
10
9,520
2,03
5
Kim
pton
9
3
1
,
6
74
546
Crowne
Plaza
40
5
1
0,4
61
1,360
Hotel Indigo
44
3
7,
0
0
4
957
voc
o
31
5
8,7
5
3
979
Holiday
Inn
a
98
(10)
21
,0
14
(1
,5
40)
Ho
liday I
nn E
xpr
es
s
99
7
15,59
3
360
avid
hote
ls
–
(1)
–
(
21
5)
Staybridge Suites
19
(1)
2
,79
3
(63
6)
Othe
r
b
6
5
1,0
5
9
711
To
t
a
l
418
29
80,
932
4,812
An
alys
ed by ow
ne
rsh
ip t
ype
F
ranchised
175
20
2
7,
0
4
5
1,
393
Manag
ed
242
9
53
,73
2
3,419
Owned, leased and
man
ag
edle
as
e
1
–
155
–
To
t
a
l
418
29
80,
932
4,812
a
I
ncl
ude
s 20 H
ol
iday I
nn Re
so
rt p
rop
er
tie
s (4,
84
9 roo
ms) (2
02
0: 18 H
ol
iday I
nn Re
so
r
t prop
er
ti
es (3,
5
53 ro
om
s)).
b
I
nc
lud
es fo
ur ho
tel
s tha
t will b
e re
-b
ran
de
d to Vi
gne
tte C
ol
le
ctio
n.
Strate
gic Re
po
rt
68
IH
G
|
Annua
l Repo
rt a
nd Form 20

F 202
1
8%
Gre
ate
r Chin
a revenue 20
21
($
11
6
m)
18%
Gre
ate
r Chin
a numb
er of room
s
(157
,03
8)
Comparable Re
vP
AR
a
mov
ement
on p
reviou
s yea
r
(12 month
s end
ed 3
1 De
cem
ber 2
02
1)
Fee
business
Rege
nt
9.6%
InterC
ontin
ental
20.
8%
HUA
LUXE
1
3.1
%
Crowne
Plaza
20.4
%
Hotel Indigo
33.4%
Holiday
Inn
21.8%
Ho
liday I
nn E
xpr
es
s
20.
9%
All brands
20.6
%
Industry performance in 2021
The in
dus
try p
er
form
ance a
cros
s Gre
ater
Chin
a lu
ctuate
d in 202
1, imp
acte
d by the
reintrod
uctio
n of temp
orar
y lo
cal
ise
d
loc
kdowns. I
ndus
tr
y RevPAR in Greate
r
Chin
a incre
ase
d by 27
.8% c
omp
ared to 20
20
(
decreased b
y 26.9% agai
nst 2019
). Su
pply
grew by 3.8
% and d
eman
d by 16.
9%
.
Inc
reas
es in Rev
P
AR were ac
hieved a
cros
s
all of M
ainla
nd Chin
a aga
inst 20
20, however,
citie
s in the up
per ti
ers re
maine
d fur
the
r
be
hind 20
19. RevPAR In Ti
er 1 citie
s
incre
ase
d by 31.
3%
, drive
n by an occ
upan
cy
incre
ase o
f 8.3
ppt
s and avera
ge dail
y rate
grow
th of 12.
5%
. Tie
r 2 citie
s saw a sim
ilar
recovery pr
oile with
RevP
AR increasing b
y
27
.3%
, ag
ain drive
n by both oc
cup
ancy an
d
rate, whil
st grow
th in Tie
r 3 citie
s was mo
re
limite
d at 12.6
%
. Tie
r 4 contin
ued to b
ene
it
from stro
ng dom
esti
c dem
and with R
evP
AR
incre
asin
g by 23.
5%
.
Hon
g Kong SAR in
crea
sed by 5
6.6
%
com
pare
d to 2020 (dec
reas
e of 55
.0%
agai
nst 20
19), with a 17
.4p
pt improvem
ent
in oc
cupa
ncy and a 7.5% incre
ase in
average d
aily rate. M
ac
au SAR im
proved
agai
nst 20
20 by 26.6
% (decre
ase o
f 76.7%
agai
nst 20
19), drive
n by occ
upan
cy
, bu
t
remains signi
icantly be
hind 2019 due
to its reli
anc
e towards travel from
Mainlan
d China.
IHG
’s regio
nal p
er
form
anc
e in 2
021
IH
G’s region
al co
mpar
able Rev
P
AR
a
in
Gre
ater Chi
na inc
reas
ed by 20.6
%
com
pare
d to 2020 (dec
reas
ed by 28
.7%
agai
nst 20
19), drive
n by a 6.9
ppt inc
reas
e
in oc
cupa
ncy and a 3
.6% i
ncre
ase in
average daily rate.
In M
ainlan
d Chin
a, RevPAR
a
increased by
19.7%
, with the g
reates
t incre
ase i
n Tie
r 1
citie
s, up 25
.6%
, whil
st Ti
er 24 citie
s
incre
ase
d by 17
.
3%
.
RevP
AR
a
in Ho
ng Kong SAR in
crea
se
d
by 81.0% w
hilst Rev
P
AR
a
in Ma
cau SA
R
incre
ase
d by 3.
2
%.
a
Comparable RevP
AR and
occupancy incl
ude the
imp
ac
t of ho
tel
s temp
or
aril
y clo
se
d as a r
esu
lt
of Covi
d-19.
“
Domestic tr
av
e
l demand show
ed st
eady reco
very
amidst spor
adic Covid-
19 outbr
eaks and t
r
av
el rest
ri
ct
ions.
W
e deploy
ed an agile business r
ecov
e
ry plan t
o capt
ur
e
our shar
e of demand, dr
iv
e ow
ner r
etu
rns and ensur
e
the sa
f
ety of our guest
s, colleagues and commun
it
ies.
In line w
it
h the gr
owth str
at
e
gy
, our new deal si
gnings
and hot
el openings ex
ce
eded 2019 lev
els.
”
Jolyon
Bulle
y
Chief E
xec
utive O
ic
er
, Greate
r Chin
a
G
r
eater
Chin
a
InterC
ontine
ntal
® Kaohs
iung
, China
69
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Per
fo
rman
ce
Review of t
he yea
r en
de
d
31
December 20
21
Co
mpris
ing 58
6 hote
ls (157
,038 ro
oms)
at 31 D
ec
emb
er 20
21, G
reater C
hina
repre
sente
d app
roximately 1
8% of the
Group’s room c
ount. T
he maj
orit
y of roo
ms
in Gre
ater Ch
ina op
erate un
der th
e mana
ge
d
business model.
Inc
reas
es in C
ovid
-19 cas
es an
d the
reintrod
uctio
n of temp
orar
y res
trictio
ns
impa
cted tr
ading in J
anu
ar
y and Febr
uar
y
,
thou
gh the rec
over
y resu
med i
n March
with de
man
d returning at p
ac
e as
restr
ictions
eased.
The re
cover
y co
ntinue
d into Apri
l and M
ay
befo
re loc
al res
trictio
ns were rei
nst
ated
acro
ss so
uth, ea
st an
d west c
ities i
n June
.
In Ju
ly
, Rev
P
AR
b
was jus
t 6% l
ower than 2
019
level
s, driven by s
trong do
mes
tic lei
sure
demand. The r
eint
roducti
on of t
emporary
restri
ction
s me
ant that Aug
ust we
akene
d
to more tha
n 50% l
ower than 2
019.
The fo
urth q
uar
ter s
aw volatile tr
ading,
impa
cted by th
e reintrod
uctio
n of
temporar
y restrictions.
Gre
ater Chi
na co
mpara
ble Rev
P
AR
b
grew
78% in th
e irs
t quar
ter a
nd 107
% in the
se
con
d quar
ter
, then d
ecl
ine
d 8% in the
third qua
rte
r and 17
% in the four
th qu
ar
ter
.
Full year grow
th was 2
1% whe
n comp
ared
to 2020. W
hen c
omp
aring to 20
19, prio
r to
the pa
nde
mic, Gre
ater Ch
ina co
mpa
rable
RevP
AR
b
dec
line
d 38
% in the 
irst q
uar
ter
,
16
% in the se
co
nd qua
rte
r
, 30
% in the th
ird
quar
ter
, 33
% in the fou
rth qu
ar
ter and 2
9%
in the ful
l year
.
Revenu
e from the rep
or
ta
ble se
gme
nt
a
incre
ase
d by $3
9m (51%) to $116
m
(a decre
ase of 14% c
ompa
red to 20
19).
Op
eratin
g pro
it improve
d by $28m, dri
ven
by the inc
reas
e in revenue a
nd a $5
m
dec
reas
e in op
eratin
g exceptio
nal ch
arge
s.
Op
eratin
g pro
it from the re
por
ta
ble s
egm
ent
a
incre
ase
d by $23
m to $58
m (a decli
ne of
21% c
omp
ared to 20
19). The i
mproveme
nt in
dem
and at o
ur man
age
d hotel
s led to $
25m
rec
ogniti
on of inc
entive m
anag
eme
nt fee
s
com
pare
d to $16
m in 202
0 (20
19: $
48
m).
Revenu
e and op
eratin
g pro
it from the
reportable
segment
a
also included
the
bene
it of a $6m individually signiic
ant
liqui
dated d
amag
es s
ettl
eme
nt.
For dis
cus
sion o
f 2020 re
sult
s, and th
e
cha
nges c
omp
ared to 20
19, refe
r to
the 20
20 Annu
al Rep
or
t and Form 2
0
F
.
www.ihgplc.com/i
nv
estors
under
Annual Repor
t
a
D
e
ini
tio
ns fo
r No
n-
GA
AP r
even
ue an
d op
era
ting
pro
i
t mea
su
res c
an b
e foun
d on p
ag
es 73 to 7
7.
Rec
on
cil
iati
on
s of th
es
e mea
su
res to t
he mo
st d
irec
tly
co
mpa
rab
le li
ne it
ems w
ith
in the G
rou
p Fin
an
cia
l
St
atem
en
ts c
an be f
oun
d on p
age
s 2
18 to 2
23
.
b
C
omparable Re
vP
AR and
occupancy include
the im
pact
of ho
tel
s tem
por
ari
ly cl
os
ed as a r
es
ult of C
ovi
d-1
9.
Great
er China resul
ts
12 mo
nths end
ed 31
December
2021
$m
2020
$m
20
21 v
s
2020
% ch
ang
e
2019
$m
2020 vs
2019
% ch
ang
e
Reven
ue fr
om th
e re
por
ta
bl
e se
gm
ent
a
Fee busi
ness
116
77
50.6
135
(4
3
.0
)
To
t
a
l
116
77
50.6
135
(4
3
.0
)
Op
er
atin
g pro
it f
rom t
he re
po
rt
ab
le se
gm
en
t
a
Fee busi
ness
58
35
6
5.7
73
(5
2
.1)
Operati
ng ex
ceptional it
ems
–
(5)
–
–
–
Ope
rating proit
58
30
93.3
73
(58.9)
Perfor
mance
co
nti
nu
e
d
G
r
eater
Chin
a
c
onti
nu
e
d
Strate
gic Re
po
rt
70
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Gre
ate
r Chi
na ho
tel an
d roo
m co
unt
Hotel
s
Rooms
At
31 December
2021
Change
over 202
0
2021
Change
over 202
0
Analysed
by
brand
Six
Senses
1
–
122
–
Rege
nt
4
–
1,419
–
InterC
ontin
ental
53
2
2
1
,1
9
0
51
2
Kim
pton
1
–
129
–
HUA
LUXE
16
4
4,603
1,1
7
0
Crowne
Plaza
110
5
38,42
0
1,
470
Hotel Indigo
16
4
2
,415
6
70
EV
EN H
otel
s
2
1
251
80
voc
o
5
4
1,0
94
946
Holiday
Inn
a
122
13
3
3
,01
0
2,3
82
Ho
liday I
nn E
xpr
es
s
247
35
47,05
4
5,
265
Othe
r
b
9
1
7
,3
31
368
To
t
a
l
586
69
157
,038
12,86
3
An
alys
ed by ow
ne
rsh
ip t
ype
F
ranchised
179
53
4
0
,1
5
1
10,3
25
Manag
ed
407
16
116,8
87
2,
538
To
t
a
l
586
69
157
,038
12,86
3
a
Includes eight
Holiday
Inn Resort pr
operties (1,891 r
ooms)
(2020: eigh
t Holida
y Inn
Resort properties (2,
113 rooms
)).
b
I
nc
lud
es o
ne op
en h
ote
l tha
t will b
e re
-b
ran
de
d to voc
o.
T
ota
l num
be
r of ho
tel
s
586
T
ota
l num
be
r of ro
om
s
1
5
7,
0
3
8
The G
reater C
hina sy
stem si
ze incre
ase
d
by 69 hote
ls (12,
86
3 room
s) in 2021 to
58
6 hotels (1
57
,03
8 roo
ms), an incre
ase of
8.9
% year-o
n-year. 88 hotel
s (18,057 ro
oms)
ope
ne
d, incl
uding th
e ir
st Inter
C
ontine
ntal
hotel in Taiwan, voc
o Wuhan Xinh
ua and th
e
Crown
e Plaz
a Ch
ongli re
sor
t, c
omp
ared to
57 hote
ls (11,3
58 roo
ms) in 2020.
19 hote
ls (5,194 room
s) were removed in
202
1 co
mpare
d to 10 hote
ls (2,729 ro
oms)
in 2020.
T
ota
l num
be
r of ho
tel
s in th
e pi
pe
lin
e
453
T
ota
l num
be
r of ro
om
s in th
e pip
el
ine
93,425
At 31 De
ce
mbe
r 202
1, the G
reate
r China
pip
eline tot
alle
d 4
53 ho
tels (93,
425 roo
ms),
com
pare
d to 44
0 hotel
s (93,180 roo
ms) at
31 D
ec
emb
er 202
0. Signin
gs of 15
3 hote
ls
(30,847 ro
oms) were ahe
ad of l
ast ye
ar
by 12 hotel
s (2,6
4
3 room
s)
. 89 h
otels
(16,
260 ro
oms) were sig
ned fo
r the
Hol
iday Inn B
rand Famil
y
. O
the
r notab
le
signi
ngs inc
lude
d Re
gent S
anya Hait
ang B
ay
and H
otel In
digo S
anya Hait
ang B
ay as par
t
of a co
mbine
d co
mpl
ex, and th
e
Inter
Conti
nent
al T
ai
pei.
52 hotels (12
,5
4
5 rooms) were rem
oved from
the pip
elin
e in 20
21 c
ompa
red to 37 hote
ls
(8,7
41 room
s) in 2020.
Greater China pipe
line
Hotel
s
Rooms
At
31 December
2021
Change
over 202
0
2021
Change
over 202
0
Analysed
by
brand
Six
Senses
4
1
233
64
Rege
nt
2
1
597
3
17
InterC
ontin
ental
27
(
2)
7,907
(6
5
8)
Kim
pton
7
1
1
,
747
93
HUA
LUXE
23
(2)
6,04
5
(86
2)
Crowne
Plaza
48
–
13
,1
5
7
(
72
0)
Hotel Indigo
41
9
7
,378
1,876
EV
EN H
otel
s
19
4
3
,74
1
6
70
voc
o
2
1
292
161
Holiday
Inn
a
72
(2)
1
7,
5
9
6
(567
)
Ho
liday I
nn E
xpr
es
s
208
3
3
4
,73
2
168
Othe
r
–
(1)
–
(2
97)
To
t
a
l
453
13
93,425
245
An
alys
ed by ow
ne
rsh
ip t
ype
F
ranchised
226
15
40,
055
3,
167
Manag
ed
227
(2)
53,37
0
(2,922)
To
t
a
l
453
13
93,425
245
a
I
ncl
ude
s 14 H
oli
day In
n Re
sor
t p
rop
er
tie
s (3,
20
5 roo
ms) (2
02
0: 12 H
oli
day I
nn Re
so
rt p
rop
er
tie
s (3,
20
8 roo
ms)).
71
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Per
fo
rman
ce
Review of t
he yea
r en
de
d
31
December 20
21
Ce
ntral revenu
e, which m
ainly c
omp
rise
s
tech
nolo
gy fee i
nco
me, inc
reas
ed by $
15m
(8.
2%) to $197m, drive
n by the temp
orar
y
dis
count
s on tec
hnol
ogy fe
es in 2
020
no lo
nger b
ein
g appli
cab
le.
Gros
s co
sts i
ncrea
se
d by $41m (16.
8%)
year-on
-year
, as temp
orar
y c
ost s
aving
me
asure
s were introd
uce
d from the s
ec
ond
quar
ter o
f 2020, whi
ch were no
t repe
ated
in 202
1. W
hen c
omp
aring to 20
19, gros
s
co
sts de
cre
ase
d by 8.1%, whic
h incl
ude
s
sus
tain
able c
ost s
aving
s achi
eved in 20
21.
The o
per
ating lo
ss b
efore excepti
onal i
tems
incre
ase
d by $26
m, a de
crea
se of $
37m
co
mpa
red to 2
019.
C
entral
res
ults
12 mo
nths end
ed 31
December
2021
$m
2020
$m
20
21 v
s
2020
% ch
ang
e
2019
$m
2020 vs
2019
% ch
ang
e
Reven
ue
197
182
8.2
185
(1.6)
Gross costs
(2
85)
(
24
4)
16.8
(31
0)
(2
1.
3)
(88)
(6
2)
41.9
(125)
(5
0.4)
Operati
ng ex
ceptional it
ems
–
(1
9)
–
(15)
26
.7
Ope
rating loss
(88)
(
81)
8.6
(14
0)
(4
2.1
)
Perfor
mance
co
nti
nu
e
d
C
e
ntra
l
Ho
lid
ay Inn Q
ue
ens
town Rem
arka
ble
s Par
k, N
ew Zeal
and
Strate
gic Re
po
rt
72
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Lin
kag
e of pe
rf
orm
anc
e me
as
ur
es to D
ire
cto
rs’ re
mu
ne
rati
on an
d KPI
s
A
The A
nnua
l Per
fo
rman
ce Pl
an
LT
The Lo
ng Term Inc
ent
ive Pla
n
KPI
Key Per
form
anc
e In
dic
ator
s
S
ee p
age
s 104 to 1
25 for
more i
nforma
tion on
Directors
’
remu
ne
ratio
n and p
age
s 50
to 53 fo
r mor
e infor
matio
n
on K
PIs
.
Key per
forma
nc
e me
asu
re
s (inc
ludi
ng N
on-
GA
AP me
as
ure
s) us
ed by ma
nag
em
ent
The A
nnual Re
po
rt an
d Form 20
F p
rese
nts c
er
tain 
ina
ncial m
ea
sures w
hen di
scu
ssi
ng the G
roup’s per
forman
ce whi
ch are not m
eas
ures
of i
nanc
ial pe
rfo
rman
ce or li
quidit
y un
der Inte
rnatio
nal Fi
nanc
ial Rep
or
ting S
tan
dards (I
FRS). In man
age
ment
’s view the
se m
eas
ures provi
de
investor
s and oth
er st
akeho
lder
s with an e
nhan
ce
d unde
rst
andin
g of IH
G’s ope
rating p
er
forma
nce, p
roit
abili
ty
, in
anci
al stren
gth and
fundi
ng requ
ireme
nts. T
hes
e me
asure
s do not h
ave stan
dardis
ed m
eani
ngs un
der I
FRS, a
nd co
mpani
es do n
ot ne
ces
sa
rily ca
lcula
te thes
e
in the s
ame way
. As the
se me
as
ures exclud
e ce
rt
ain item
s (for example i
mpairm
ent an
d the co
sts o
f indiv
iduall
y signi
ic
ant le
gal c
as
es or
com
merci
al dis
putes) the
se 
inan
cial m
eas
ures may b
e materi
ally di
erent to the m
ea
sures p
resc
ribe
d by IFR
S and may res
ult in a mo
re
favourab
le view of p
er
form
anc
e. Acc
ordingl
y
, they s
houl
d be vi
ewed as c
omp
lem
enta
ry to, an
d not as a su
bstitu
te for
, th
e mea
sure
s
pres
crib
ed by IF
RS and a
s incl
ude
d in the G
roup Fin
anci
al St
ateme
nts (see p
age
s 142 to 148).
Measure
Commentary
Global rev
e
nue per a
vai
lable room
(RevP
AR) grow
t
h
KPI
RevPAR, averag
e daily r
ate and
oc
cupa
ncy st
atistic
s are dis
clo
se
d
on pa
ges 2
24 an
d 2
25.
RevPAR is the pri
mar
y metri
c use
d by mana
gem
ent to trac
k hotel p
er
forma
nce a
cros
s regio
ns
and b
rands
. RevPAR is als
o a com
monly u
se
d pe
rfor
manc
e me
asure in th
e hotel in
dus
try.
RevPAR comp
rise
s IH
G’s Syste
m (see Gl
os
sar
y
, page 2
56) room
s revenue d
ivid
ed by the nu
mbe
r
of room n
ights avail
able an
d can b
e de
rived fro
m occ
upan
cy rate multip
lied by avera
ge dail
y
rate (AD
R). ADR i
s room
s revenue di
vide
d by the num
ber o
f room nig
hts so
ld.
Refere
nce
s to RevPAR, oc
cup
ancy an
d ADR a
re pres
ented o
n a com
parab
le ba
sis, c
omp
risin
g
groupi
ngs of h
otels tha
t have trade
d in all mo
nths in b
oth the cu
rrent and p
rior yea
r
. T
he prin
cipa
l
exclusi
ons in d
erivi
ng this me
as
ure are new hote
ls (in
cludin
g thos
e acq
uired
), hotel
s clos
ed fo
r
majo
r refurbi
shm
ent and h
otels s
old in e
ithe
r of the t
wo years
. The
se m
eas
ures in
clud
e the
impa
ct of ho
tels tem
pora
rily clo
se
d as a res
ult of C
ovid-19.
RevPAR and AD
R are quote
d at a co
nst
ant US
$ conve
rsio
n rate, in orde
r to allow a be
tter
unde
rst
and
ing of the c
omp
arabl
e year-on
-year tra
ding p
er
forman
ce exclu
ding dis
tor
tions
create
d by lu
ctuatio
ns in excha
nge rate
s.
T
ot
al gr
os
s revenu
e from h
otel
s
in IH
G’s Syste
m
A
LT
KPI
Owned, leased and
managed lease
revenue a
s rec
orde
d in the Gro
up
Financial Stat
ements is r
econciled
to total gros
s revenu
e on pa
ge 60.
T
ot
al gros
s revenu
e is revenu
e not who
lly at
tribut
able to I
HG, howeve
r
, ma
nag
eme
nt bel
ieves
this me
as
ure is me
aning
ful to investor
s and oth
er st
akehol
der
s as it provi
des a m
ea
sure of
Syste
m pe
rfor
manc
e, givin
g an indi
catio
n of the stre
ngth of I
HG
’s brands an
d the c
ombin
ed
impa
ct of I
HG
’s growth strate
gy and Rev
P
AR pe
r
forman
ce.
T
ot
al gros
s revenu
e refers to reven
ue whic
h IH
G has a rol
e in drivi
ng and fro
m which I
HG
deri
ves an in
com
e strea
m. IH
G’s busi
nes
s mo
del i
s des
crib
ed on p
age
s 10 to 13. Total gros
s
revenu
e co
mpr
ise
s:
•
tota
l room
s revenue from f
ranch
ise
d hotel
s;
•
tota
l hotel reven
ue from ma
nag
ed hote
ls inc
ludin
g food a
nd beve
rage, m
eetin
gs and o
ther
revenue
s and re
le
cts th
e value I
HG d
rives to man
age
d hote
l owner
s by optimis
ing the
pe
rfor
manc
e of the
ir hotel
s; and
•
tota
l hotel reven
ue from own
ed, le
as
ed an
d mana
ge
d lea
se hote
ls.
Oth
er tha
n total hote
l revenue fro
m owne
d, lea
se
d and ma
nag
ed le
as
e hotels
, total gro
ss hote
l
revenue i
s not revenu
e attrib
uta
ble to I
HG as th
es
e mana
ge
d and fran
chis
ed h
otels are own
ed
by third par
tie
s.
Revenue and ope
rating
proit m
eas
ures
The re
con
ciliati
on of the m
ost di
rectly
com
para
ble lin
e item with
in the Gro
up
Fin
ancia
l State
ment
s (i.e. tota
l revenue
and o
perati
ng pro
it, a
cco
rdingly) to
the no
n-
IF
RS revenue a
nd op
eratin
g
proit measures is
included on pages
21
8 to 223
.
Revenu
e and op
eratin
g pro
it from (1) fee bu
sine
ss a
nd (2) own
ed, le
as
ed an
d mana
ge
d lea
se
hotel
s, are de
scrib
ed a
s ‘revenue from rep
or
tab
le se
gme
nts’ an
d ‘
ope
rating p
roit f
rom rep
or
tabl
e
se
gment
s’
, res
pe
ctivel
y
, with
in note 2 to the G
roup Fin
anci
al St
ateme
nts. T
hes
e me
asure
s are
pres
ente
d for ea
ch of the G
roup’s region
s.
Man
age
ment b
eli
eves revenu
e and op
eratin
g pro
it from rep
or
tab
le se
gme
nts is m
eani
ngful
to investor
s and oth
er st
akehol
der
s as it exclud
es th
e followin
g ele
ment
s and re
le
cts h
ow
management moni
tors t
he business:
•
S
ystem Fund – the Fund i
s not man
age
d to gen
erate a pro
it o
r los
s for IH
G over the l
ong
er term,
but i
s mana
ged fo
r the be
ne
it of th
e hotel
s within th
e IH
G Syste
m. As de
sc
ribe
d within th
e
Group’s acc
ountin
g poli
cie
s (pa
ge 149), the S
ystem Fund i
s ope
rated to c
olle
ct and a
dmini
ster
ca
sh as
se
ssm
ents f
rom hotel ow
ner
s for the sp
ec
ii
c purp
ose o
f use in m
arketing, th
e Gue
st
Res
er
vation S
ystem an
d hotel l
oyalty p
rogram
me.
K
e
y p
er
f
ormance mea
sur
e
s
73
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Per
fo
rman
ce
Per
fo
rman
ce
Measure
Commentary
Revenue and ope
rating
proit m
eas
ures
co
ntinue
d
•
Reven
ues re
lated to th
e reimbu
rse
ment of c
os
ts – as de
sc
ribe
d within th
e Group’s acc
ountin
g
pol
icie
s (pa
ge 149), th
ere is a c
ost e
qual to th
ese reve
nue
s so the
re is no pro
it im
pac
t.
Co
st reim
burs
eme
nts are no
t appli
cab
le to all hote
ls and g
rowth in th
es
e revenue
s is not
rel
ec
tive of grow
th in the p
er
forman
ce of th
e Group. A
s such
, mana
gem
ent do n
ot incl
ude
the
se revenu
es in the
ir ana
lysis o
f result
s.
•
E
xcepti
onal i
tems – th
ese a
re identi
ie
d by vir
tue of e
ither th
eir si
ze, nature, or i
ncid
enc
e and
can i
nclu
de, but a
re not res
tricte
d to, gains an
d los
ses o
n the di
spo
sal o
f ass
ets, i
mpairm
ent
cha
rges an
d revers
als, th
e cos
ts of in
divid
ually s
igni
ica
nt leg
al ca
se
s or co
mme
rcial dis
pute
s
and re
organi
satio
n co
sts
. As ea
ch item is d
iere
nt in nature an
d sc
ope, th
ere will b
e lit
tle
conti
nuit
y in the de
taile
d co
mpo
sitio
n and si
ze of the rep
or
ted a
mount
s which a
ec
t
pe
rfor
manc
e in suc
ce
ss
ive per
iods
. Se
parate di
sclo
sure of th
es
e amount
s facil
itate
s the
unde
rst
and
ing of pe
r
forman
ce inc
ludin
g and exclu
ding su
ch item
s. Th
e Group’s acc
ountin
g
pol
icy for excep
tiona
l items an
d fur
the
r deta
il of thos
e item
s pres
ented a
s suc
h are incl
ude
d
in the G
roup Fin
anci
al St
ateme
nts (see p
age
s 152 and 1
65 to 16
7
).
In fur
the
r dis
cus
sing th
e Group’s per
form
anc
e in resp
ec
t of revenue a
nd op
eratin
g pro
it,
addi
tiona
l non
-I
FRS m
eas
ures are u
se
d and expl
aine
d fur
the
r bel
ow:
•
Un
de
rlyin
g reven
ue;
•
Un
derl
ying op
eratin
g pro
it;
•
Un
derl
ying fe
e revenue; a
nd
•
Fee margin.
Op
eratin
g pro
it mea
sure
s are, by their n
ature, befo
re interes
t and t
ax. M
anag
eme
nt be
lieves
suc
h mea
sures a
re use
ful for inves
tors an
d other s
takeh
olde
rs wh
en co
mpari
ng pe
rfo
rmanc
e
acro
ss di
erent c
omp
anies a
s intere
st and t
ax c
an var
y wide
ly acro
ss di
erent i
ndus
tries o
r
amo
ng com
pani
es withi
n the sa
me ind
ustr
y
. For exampl
e, intere
st expe
nse c
an b
e highly
dep
en
dent on a c
omp
any’s cap
ital s
truc
ture, debt l
evels an
d cred
it ratings
. In ad
dition
, the ta
x
po
sition
s of co
mpan
ies c
an var
y be
cau
se of th
eir di
ering ab
ilitie
s to take advant
age o
f tax
be
ne
its an
d be
cau
se of th
e tax p
olici
es of th
e variou
s juris
dictio
ns in whi
ch they op
erate.
Altho
ugh ma
nage
me
nt beli
eves the
se m
eas
ures are u
seful to inve
stors a
nd othe
r sta
kehold
ers
in as
se
ssin
g the Gro
up’s ongoing 
ina
ncial p
er
form
ance a
nd provid
e improve
d com
parab
ilit
y
bet
wee
n pe
riod
s, there a
re limitati
ons in th
eir us
e as c
omp
ared to me
asu
res of 
inanc
ial
pe
rfor
manc
e und
er IF
RS. As s
uch, th
ey shou
ld not b
e con
sid
ered in i
sol
ation o
r viewed a
s a
sub
stitute for I
FRS m
eas
ures
. In add
ition, th
ese m
ea
sures m
ay not ne
ces
sa
rily be c
omp
arabl
e
to other s
imilarl
y title
d mea
sure
s of other c
omp
anie
s due to po
tential in
con
sis
tencie
s in the
meth
ods of c
alc
ulatio
n.
Und
erly
ing reve
nue a
nd u
nde
rlyin
g
ope
rating proit
The
se m
eas
ures ad
just reven
ue from re
por
ta
ble s
egm
ents an
d ope
rating p
roit f
rom rep
or
tabl
e
se
gment
s, res
pe
ctivel
y
, to exclud
e revenue an
d ope
rating p
roit g
ene
rated by own
ed, l
eas
ed
and m
anag
ed le
as
e hotel
s which h
ave bee
n disp
os
ed, an
d signi
ic
ant liq
uidate
d dam
age
s,
whic
h are not co
mpar
able ye
ar
-
on-yea
r and are n
ot indic
ative of the G
roup’s ongoi
ng
pro
itab
ilit
y
. T
he revenu
e and op
erati
ng pro
it of curre
nt year a
cqui
sition
s are als
o exclude
d
as the
se o
bsc
ure unde
rlyin
g busi
nes
s resu
lts an
d trends w
hen c
omp
aring to the p
rior ye
ar
.
In ad
dition, i
n order to re
move the imp
act of 
luc
tuation
s in forei
gn exchang
e, which wo
uld
disto
rt th
e com
parab
ilit
y of the G
roup’s operatin
g per
for
manc
e, prio
r year me
asu
res are
rest
ated at c
ons
tant c
urrency u
sing c
urrent yea
r exchang
e rates.
Man
age
ment b
eli
eves the
se are m
eanin
gful to inves
tors and o
ther s
takeho
lde
rs to bet
ter
understand compar
able y
ear
-
on-y
ear tr
ading a
nd enable assessment o
f the
underly
ing t
rends
in the G
roup’s inan
cial p
er
forma
nce
.
Und
erly
ing fe
e reven
ue grow
t
h
KPI
Und
erlyi
ng fee reven
ue is u
sed to c
alcu
late und
erlyin
g fee reven
ue grow
th. Un
derl
ying fe
e
revenue i
s cal
culate
d on the s
ame b
asi
s as und
erlyi
ng revenu
e as de
scrib
ed a
bove but fo
r the
fee b
usin
es
s only
.
Man
age
ment b
eli
eves und
erlyi
ng fee reven
ue is m
eanin
gful to inves
tors an
d other
sta
kehold
ers a
s an ind
icator o
f IH
G’s abilit
y to grow the co
re fee
-b
ase
d bu
sine
ss, a
ligne
d
to IH
G’s ass
et-light strate
gy
.
Perfor
mance
co
nti
nu
e
d
K
e
y per
f
or
ma
nce meas
u
r
es
c
o
nti
nu
e
d
Strate
gic Re
po
rt
74
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Measure
Commentary
Fee
ma
rg
in
A
KPI
Fee ma
rgin is pre
sente
d at actu
al exchan
ge rates a
nd is a m
eas
ure of the pro
it ar
ising f
rom fee
revenue
. Fee margi
n is cal
culate
d by divid
ing ‘fe
e ope
rating p
roit
’ by ‘fe
e revenu
e’
. Fee reven
ue
and fe
e ope
rating p
roit a
re calc
ulate
d from revenu
e from rep
or
tabl
e se
gment
s and o
per
ating
pro
it from rep
or
ta
ble s
egme
nts, a
s de
ine
d ab
ove, adjus
ted to exclud
e revenue an
d
ope
rating p
roit f
rom the G
roup’s owned, le
as
ed an
d mana
ge
d lea
se hote
ls and s
igni
ic
ant
liquida
ted damages.
In ad
dition, fe
e margi
n is adju
ste
d for the res
ults of th
e Grou
p’
s capti
ve insura
nce c
omp
any
,
whe
re premium
s are inten
ded to m
atch the exp
ec
ted cl
aims over th
e long
er term (se
e pag
e 186
in the G
roup Fin
anci
al St
ateme
nts), and as su
ch the
se am
ounts a
re adjus
ted from t
he fee m
argin
to bet
ter de
pict th
e pro
ita
bilit
y of the fe
e bus
ine
ss.
Man
age
ment b
eli
eves fee m
argin is m
eani
ngful to inves
tors an
d other s
takeh
olde
rs as a
n indic
ator
of the su
st
ainab
le lon
g-te
rm growt
h in the pro
it
abilit
y of I
HG
’
s core fe
e
-b
ase
d bus
ine
ss, a
s the
sc
ale of I
HG
’s operatio
ns inc
reas
es wi
th growth i
n IH
G’s System s
ize.
Adju
ste
d intere
st
Financial incom
e and inancial
expe
nse
s as re
corde
d in the G
roup
Financial Stat
ements is r
econciled
to adjus
ted inte
rest o
n pag
e 22
3.
Adjus
ted inte
rest is p
res
ented b
efore exce
ption
al items a
nd exclud
es the fo
llowing i
tems
of intere
st whic
h are rec
orde
d within th
e Syste
m Fund:
•
IH
G rec
ords a
n interes
t charg
e on the ou
tst
andi
ng ca
sh bal
anc
e relatin
g to the IH
G Rewards
progr
amme
. The
se intere
st paym
ents a
re reco
gnis
ed a
s interes
t inco
me for th
e Fund and
interes
t expe
nse fo
r IH
G.
•
Th
e Syste
m Fund also b
ene
i
ts from th
e capi
tali
satio
n of intere
st relate
d to the deve
lop
ment
of the n
ext-g
ene
ration G
ue
st Res
er
vation S
ystem
.
•
O
ther c
omp
one
nts of Sy
stem Fund intere
st inc
om
e and exp
ens
e, incl
uding l
eas
e intere
st
expe
nse a
nd intere
st inc
ome o
n overdue re
cei
vable
s.
As the Fund is i
nclu
ded o
n the Gro
up inc
ome s
tatem
ent, th
ese a
mount
s are inc
lude
d in the
repo
rte
d net G
roup 
inan
cial exp
ens
es
, reduc
ing the G
roup’s eec
tive interes
t co
st. G
iven res
ults
relate
d to the Sys
tem Fund are exclud
ed from a
djus
ted me
asu
res us
ed by ma
nage
ment
, the
se
are exclud
ed from a
djus
ted intere
st an
d adjus
ted e
arning
s per o
rdinar
y sh
are (see b
elow).
Man
age
ment b
eli
eves adju
sted i
nteres
t is a me
aning
ful me
asure for i
nvestor
s and othe
r
sta
kehold
ers a
s it provid
es an in
dic
ation of th
e com
parab
le year-o
n-year ex
pen
se as
so
ciate
d
with 
inan
cing the b
usi
nes
s incl
uding th
e intere
st on any ba
lanc
e hel
d on be
half o
f the
System
F
und.
T
a
x exclud
ing t
he im
pac
t
of excep
tion
al ite
ms a
nd S
ystem Fun
d
A rec
oncil
iation of th
e tax c
harge
as rec
orde
d in the G
roup Fi
nanc
ial
St
ateme
nts to tax exclu
ding th
e impa
ct
of excepti
onal i
tems an
d Syste
m Fund
can b
e foun
d in note 8 to the G
roup
Fin
ancia
l State
ment
s on pa
ge 16
9.
As outl
ine
d above, excep
tiona
l items c
an var
y year-o
n-year a
nd, whe
re subje
ct to t
ax at a die
rent
rate than th
e Group a
s a who
le, they c
an impa
ct the c
urrent yea
r’s tax ch
arge. T
he Sys
tem Fund
is not m
anag
ed to a pro
it o
r los
s for IH
G over the l
ong
er term an
d is, in g
ene
ral, not s
ubje
ct to
t
a
x
e
i
t
h
e
r.
Man
age
ment b
eli
eves remov
ing the
se provi
des a b
et
ter view of th
e Grou
p’
s unde
rlyin
g tax rate
on ordin
ar
y ope
ration
s and ai
ds co
mpar
abilit
y year-o
n-year, thus providing a m
ore me
aning
ful
unde
rst
and
ing of the G
roup’s ongoin
g tax c
harge.
Adjusted ear
nings per ordinary share
Ba
sic e
arning
s per o
rdinar
y sh
are
as rec
orde
d in the G
roup Fi
nanc
ial
St
ateme
nts is re
con
cile
d to adjus
ted
earn
ings p
er ordin
ar
y sha
re in note 10
to the Gro
up Fina
ncia
l State
ment
s on
p
a
g
e
1
74
.
Adjus
ted e
arning
s per o
rdinar
y sh
are adju
sts th
e pro
it availab
le for e
quit
y hol
der
s use
d in the
cal
culati
on of ba
sic e
arning
s per s
hare to rem
ove System Fund reven
ue and ex
pen
se
s, the item
s
of intere
st rel
ated to the Sy
stem Fund as exclu
de
d in adju
sted inte
rest (above), cha
nge in fai
r
value of c
ontin
gent p
urcha
se co
nsid
eratio
n, excepti
onal ite
ms, an
d the rel
ated t
ax imp
acts
of such
adjustmen
ts.
Man
age
ment b
eli
eves that a
djuste
d ea
rnings p
er s
hare is a m
eanin
gful m
eas
ure for investo
rs
and oth
er st
akehol
der
s as it provi
des a m
ore co
mpar
able e
arnin
gs pe
r share m
ea
sure align
ed
with
how management
monit
ors the
business.
Net d
ebt
Net d
ebt is i
nclu
ded in n
ote 23 to the
Group
Finan
cial
Statemen
ts.
Net d
ebt is u
se
d in the mo
nitorin
g of the Gro
up’s liquidit
y and c
apit
al stru
cture an
d is us
ed by
man
age
ment in th
e cal
culati
on of the key ratio
s att
ache
d to the G
roup’s bank coven
ants a
nd
with the o
bje
ctive of ma
intain
ing an inves
tment g
rade c
redit ratin
g (see pa
ge 12 for f
urth
er
dis
cus
sion). Net d
ebt is u
se
d by investors a
nd othe
r sta
kehold
ers to eval
uate the 
inan
cial
streng
th o
f the
business.
Net d
ebt c
ompri
se
s loan
s and oth
er bo
rrowings
, lea
se lia
bilitie
s, the exch
ange e
lem
ent of th
e
fair valu
e of de
rivatives h
edg
ing de
bt value
s, le
ss c
ash an
d ca
sh e
quivale
nts.
75
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Per
fo
rman
ce
Measure
Commentary
Adjuste
d EBITDA
Op
eratin
g pro
it reco
rded i
n the Gro
up
Fin
ancia
l State
ment
s is rec
onc
ile
d to
adju
sted E
BIT
DA on pag
e 2
23.
On
e of the key mea
sures u
se
d by the Grou
p in moni
toring it
s debt a
nd ca
pita
l struc
ture is
the ne
t debt: a
djus
ted EB
ITDA ratio, wh
ich is m
anag
ed wi
th the obj
ecti
ve of maint
aining a
n
investm
ent gra
de cre
dit rating
. The G
roup ha
s a state
d aim of m
aintain
ing this ra
tio at 2.
53
.0x.
Adjus
ted EB
ITDA is d
e
ine
d as op
eratin
g pro
it, exclud
ing Sys
tem Fund revenue
s and exp
en
ses
,
exceptio
nal ite
ms an
d depre
ciati
on and a
mor
tis
ation.
Adjus
ted EB
ITDA is u
sef
ul to investor
s and othe
r st
akehol
der
s for com
parin
g the pe
r
forman
ce of
die
rent co
mpan
ies as d
epre
ciati
on, amo
rti
satio
n and exce
ption
al item
s are elimin
ated. I
t can a
lso
be us
ed a
s an app
roximation o
f ope
ration
al ca
sh l
ow gen
eratio
n. Thi
s mea
sure is re
levant to the
Group’s bank
ing c
ovenant
s, whic
h have be
en ame
nde
d for tes
t dates i
n 202
2. D
eta
ils of c
ovenant
level
s and p
er
forman
ce ag
ains
t thes
e is provi
ded i
n note 24 to the Grou
p Fina
ncial S
tate
ment
s.
The l
everag
e ratio us
es a C
ovenant E
BIT
DA mea
sure whic
h is ca
lcula
ted on a ‘
frozen GAA
P
’
bas
is, exclu
ding the e
ec
t of IF
RS 16.
Gros
s capit
al expend
iture,
net cap
ital expen
diture,
adj
us
ted fre
e ca
sh 
low
The re
con
ciliati
on of the G
roup’s
sta
tement o
f cas
h low
s (i.e. net c
as
h
from inves
ting ac
tivitie
s, net c
as
h from
ope
rating a
ctiviti
es, a
cco
rdingly) to the
non
-
IFRS c
api
tal exp
end
iture and c
ash
low m
eas
ures are in
clud
ed o
n
page 22
2.
The
se m
eas
ures have lim
itatio
ns as th
ey omit c
er
tain c
omp
one
nts of the ove
rall ca
sh 
low
sta
tement
. They are n
ot intend
ed to rep
rese
nt IH
G’s resid
ual c
ash 
low availab
le for di
screti
onar
y
expe
nditure
s, no
r do they re
lec
t the G
roup’s future capi
tal c
ommitm
ent
s. The
se m
eas
ures are
use
d by many co
mpa
nies, b
ut the
re can b
e die
renc
es in how e
ach c
omp
any de
ine
s the ter
ms,
limitin
g their u
sefu
lnes
s as a c
omp
arative me
asu
re. The
refore, it is i
mpor
t
ant to view the
se
me
asure
s only a
s a com
plem
ent to the G
roup st
atem
ent of c
ash 
lows.
Gros
s capit
al expend
iture
Gros
s ca
pita
l expe
nditure rep
res
ents th
e con
soli
dated c
api
tal exp
endi
ture of IH
G inc
lusive
of Sys
tem Fund cap
ital i
nvestme
nts (see p
age 1
3 for a des
cripti
on of Sys
tem Fund ca
pita
l
inv
e
stments
and r
ecent e
xamples
).
Gros
s ca
pita
l expe
nditure is d
e
ine
d as ne
t cas
h from inves
ting ac
tivitie
s, adju
sted to in
clud
e
contr
act ac
quis
ition c
ost
s (key mon
ey)
. In ord
er to dem
ons
trate the c
apit
al out
l
ow of the G
roup,
ca
sh l
ows arisi
ng from any dis
po
sal
s or dis
tributio
ns from a
ss
ocia
tes and j
oint venture
s are
exclude
d. Th
e me
asure al
so exclud
es any mate
rial inves
tment
s mad
e in ac
quiring b
usin
es
se
s,
incl
uding a
ny subse
que
nt payme
nts of d
eferre
d or co
ntinge
nt purch
ase c
ons
ide
ration in
clud
ed
within inve
sting a
ctiviti
es, wh
ich rep
rese
nt ongo
ing paym
ents fo
r acq
uisiti
ons
.
Gros
s ca
pita
l expe
nditure is re
por
te
d as eith
er ma
intena
nce, re
cyclab
le, or Sy
stem Fund.
This d
isa
ggreg
ation p
rovide
s usef
ul inform
ation as i
t enab
les u
se
rs to disti
nguis
h bet
wee
n:
•
Sys
tem Fund ca
pita
l investme
nts wh
ich are stra
tegic inves
tme
nts to drive grow
th at hote
l level;
•
Re
cyclabl
e investm
ents (suc
h as inves
tment
s in as
soc
iates an
d joint ve
ntures), which are
intend
ed to b
e recove
rable i
n the me
dium term a
nd are to drive the g
rowth o
f the Grou
p’
s
brands and expansion in priority markets; and
•
M
aintena
nce c
apit
al exp
enditu
re (inclu
ding c
ontrac
t acq
uisiti
on co
sts), which re
pres
ent
s
a pe
rmane
nt ca
sh out

low.
Man
age
ment b
eli
eves gros
s cap
ital ex
pen
diture is a u
sefu
l mea
sure as it i
llustra
tes how th
e
Group c
ontin
ues to inves
t in the b
usin
es
s to drive grow
th. It al
so allow
s for co
mpari
son
yea
r
-
on
-ye
ar
.
Perfor
mance
co
nti
nu
e
d
K
e
y per
f
or
ma
nce meas
u
r
es
c
o
nti
nu
e
d
Strate
gic Re
po
rt
76
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Measure
Commentary
Net cap
ital expen
diture
Net c
apit
al exp
endi
ture provide
s an in
dicato
r of the c
apit
al intens
it
y of IH
G’s busin
es
s mod
el.
Net c
apit
al exp
endi
ture is de
rived fro
m net c
ash from i
nvesting a
ctivi
ties, a
djus
ted to inc
lude
contr
act ac
quis
ition c
ost
s (net of repaym
ent
s) and to exclude any mate
rial inves
tment
s mad
e in
acq
uiring b
usin
es
ses
, inclu
ding any su
bse
que
nt payme
nts of d
eferre
d or co
ntinge
nt purch
ase
con
sid
eratio
n inclu
ded w
ithin inves
ting ac
tivitie
s, whic
h repre
sent o
ngoi
ng payme
nts for
acq
uisiti
ons
. Net c
apit
al exp
enditu
re inclu
des th
e in
lows aris
ing from a
ny dispo
sal re
ce
ipts,
or dis
tributi
ons fro
m ass
oci
ates an
d joint ventu
res.
In ad
dition, S
ystem Fund d
epre
ciatio
n and am
or
tisati
on rel
ating to prop
er
ty, plant and e
quip
ment
and int
angib
le as
set
s, res
pe
ctivel
y
, is a
dde
d bac
k, re
duci
ng the overa
ll cas
h out
l
ow
. This re
le
ct
s
the way in whic
h Syste
m Funded c
apit
al inves
tment
s are rech
arge
d to the Sys
tem Fund, over the
life of the a
ss
et (see p
age 13).
Man
age
ment b
eli
eves net c
apit
al exp
endi
ture is a us
eful me
as
ure as it illu
strates t
he net c
apit
al
investm
ent by IH
G, af
ter tak
ing into ac
cou
nt cap
ital re
cycling thro
ugh as
set d
isp
os
al and th
e
fundi
ng of strate
gic inves
tment
s by the Sys
tem Fund. It p
rovide
s investor
s and oth
er st
akehol
der
s
with vi
sibili
ty of th
e cas
h low
s which a
re alloc
ated to lo
ng-
term inves
tment
s to drive the
Gro
up’s strate
gy.
Adju
ste
d fre
e ca
sh l
ow
LT
KPI
Adjus
ted fre
e cas
h low i
s net c
ash fro
m ope
rating a
ctiviti
es ad
juste
d for
: (1) the in
clus
ion
of the c
ash o
ut
low ari
sing fro
m the purc
has
e of sha
res by emp
loyee sh
are trus
ts re
lec
ting
the req
uirem
ent to sati
sf
y inc
entive sc
hem
es whi
ch are linke
d to ope
rating pe
r
forman
ce;
(2) the in
clus
ion of m
aintena
nce c
apit
al expe
nditu
re (
excludin
g contr
act ac
quis
ition c
ost
s);
(3) the inclu
sion o
f the prin
cipa
l ele
ment of l
eas
e paym
ents; an
d (4
) the exclus
ion of p
ayment
s of
defe
rred or c
onting
ent pu
rchas
e co
nsid
eratio
n inclu
de
d within ne
t cas
h from op
eratin
g activ
ities
.
Man
age
ment b
eli
eves adju
sted f
ree c
ash 
low is a us
eful m
eas
ure for inves
tors an
d other
sta
kehold
ers
, as it rep
rese
nts the c
as
h availabl
e to invest b
ack into the b
usin
es
s to drive future
grow
th and p
ay the ordina
ry di
vide
nd, with a
ny surplu
s bein
g availabl
e for ad
dition
al returns
to sha
reholders.
Th
e per
fo
rman
ce rev
iew s
houl
d be re
ad in c
on
junc
tion w
ith th
e No
n-
GA
AP re
co
nci
liati
ons o
n pag
es 2
18 to 2
23 a
nd th
e Glo
ss
ar
y on p
ag
es 25
5 to 25
6.
77
Strate
gic Repo
rt
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Per
fo
rman
ce
80
C
ha
ir’s overvi
ew
81
Bo
ard and C
ommi
tte
e mem
ber
ship
and at
tend
anc
e in 202
1
82
Ou
r Boa
rd of D
irec
tor
s
86
Ou
r Exec
utive C
om
mit
tee
88
G
overna
nce s
tru
ctur
e
89
B
oa
rd ac
tivit
ies
89
M
at
ters di
scu
sse
d in 20
21
90
K
ey mat
ters di
scu
sse
d in 20
21 a
nd
Se
ction 17
2 state
ment
92
Our shar
eholders and i
nv
estors
93
Director a
ppointmen
ts and
inducti
on
94
B
oard deve
lopm
ent an
d ee
ctiven
es
s evaluati
on
95
Audit Co
mmit
tee Re
por
t
10
0
Res
pon
sibl
e Bus
ine
ss C
ommit
tee R
epo
rt
102
N
omin
ation C
ommi
tte
e Repo
rt
104
Directors
’ Remunerat
ion Report
126
Stateme
nt of compli
ance
G
ove
r
n
a
n
c
e
Kim
pton
® St H
ono
ré, Par
is, Fran
ce
78
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
79
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Gove
rna
nc
e
C
hair
’
s
o
v
e
r
v
iew
IHG f
ace
d on
goi
ng pa
nd
emi
c-
rel
ated c
ha
lle
nge
s in 2
021
de
sp
ite so
me are
as o
f rec
overy. The ap
pe
ara
nce o
f new
Covi
d-19 varia
nts l
ed to fu
rt
her wave
s of infe
cti
on, c
rea
ting
an un
ce
rt
ain e
nviron
me
nt, w
ith tr
avel and o
pe
rati
ng
res
tric
tio
ns co
ntin
uin
g to imp
act t
he in
du
str
y
. Str
etch
ed
sup
ply c
ha
ins
, lab
ou
r sh
ort
ag
es a
nd re
sur
ge
nt in
lati
on pu
t
pre
s
sure o
n grow
th
, whil
e the p
an
de
mic ac
ce
le
rate
d the
ad
opti
on of ne
w tec
hno
log
y and h
igh
ligh
ted t
he ne
ed fo
r
businesses t
o operat
e sus
taina
bly
.
Again
st this b
ackgroun
d, the Bo
ard ha
s contin
ued w
ith the
ada
pted gover
nanc
e, overs
ight pra
ctice
s and n
ew ways of
workin
g est
abli
she
d at the s
tar
t of the p
and
emic. B
oa
rd
me
etings h
ave continu
ed to b
e vir
tual, bu
t there h
as be
en
more fre
que
nt interac
tion an
d coll
abo
ration
. The B
oard h
as
provid
ed bo
th supp
or
t and c
halle
nge to ma
nag
eme
nt within
a cle
ar fram
ework of de
le
gated re
sp
onsi
bilit
y
. I
n addi
tion,
unc
er
tain c
ond
itions re
quire
d an inc
reas
ed at
tentio
n on ris
k
and val
ue at ris
k. Th
e focus o
n long
-term s
trateg
y has b
een
maint
aine
d, with a
ction
s taken re
garding th
e imp
act of n
ew
technology
, succession planning and
business growth.
Loo
king b
ack over my tenu
re as Ch
air
, th
e notio
n of what
con
stitute
s goo
d govern
anc
e has evo
lved su
bst
antially. It is
now as m
uch ab
out ad
dres
sing o
ur enviro
nment
al an
d soc
ieta
l
impa
cts a
s repo
rti
ng on ou
r in
ancia
l per
form
anc
e – and
sha
rehol
der
s frequ
ently u
se the
ir inl
uentia
l role
s to exercise
stewards
hip on b
eha
lf of othe
r sta
kehold
ers a
nd the wi
der
environ
ment
. I am proud to s
ay that this b
road
er app
reci
ation
of the rol
e of bus
ine
ss with
in so
ciet
y has b
ee
n ce
ntral to IH
G’s
app
roach to gove
rnan
ce for m
any years an
d doing b
usin
es
s
resp
on
sibly re
main
s at the he
ar
t of our c
ommitm
ent to T
rue
Ho
spit
alit
y for G
ood a
nd our J
ourn
ey to T
om
orrow.
The G
roup’s relation
s with hote
l owne
rs was a no
tabl
e feature of
Bo
ard activ
ity. The Bo
ard so
ught to und
ers
tand th
e po
sition o
f hotel
owne
rs throug
hout th
e pan
demi
c, reco
gnis
ing the tra
ding di
ic
ultie
s
they exp
erien
ce
d, the availa
bilit
y of ca
pita
l and the i
mpac
t of lab
our
sho
rt
age
s within th
e hos
pit
alit
y indu
str
y
. I
t was als
o aware of the
com
mitme
nt ne
ede
d to maint
ain high s
tan
dards a
nd keep
brands f
resh.
T
e
chn
olo
gy conti
nue
d to be a regu
lar are
a of focu
s, both b
ec
aus
e
of the in
crea
sed c
ybe
rse
curit
y threat
s and ri
sks as
so
ciate
d with
an inc
reas
e in remote wo
rking b
ut als
o in the way that te
chno
log
y
can b
e harn
es
se
d to drive revenue, g
rowth a
nd gue
st s
atisfa
ction
.
Board composition
Suc
ce
ssi
on pl
anning wa
s a majo
r con
side
ration d
uring th
e year
as the B
oard i
s currentl
y going th
rough a p
erio
d of cha
nge in it
s
com
pos
ition
. A key part o
f the refre
shme
nt proc
es
s is to en
sure
that we c
ontinue to h
ave the right mix of s
kill
s, expe
rienc
e and
knowl
ed
ge aroun
d the ta
ble a
s well as th
e gen
der an
d ge
ograp
hica
l
repre
sent
ation th
at add
s value a
s the C
ompa
ny pursu
es it
s
strategic objectives.
Inform
ation o
n the pro
ces
s rela
ting to De
anna O
pp
enh
eime
r’s
app
ointme
nt to suc
ce
ed me a
s Cha
ir from 1 Se
ptemb
er 20
2
2
is se
t out on p
age 9
3.
As pa
rt of N
on
-E
xec
utive Di
rector s
ucc
es
sio
n plann
ing, we
deter
mine
d that the B
oard wo
uld be
ne
it fro
m fur
ther exp
er
tis
e
in tech
nolo
gy an
d innovatio
n, incl
uding in re
latio
n to ESG is
sue
s.
We also s
ought to fu
rth
er drive di
versi
ty on th
e Bo
ard and p
repare
for the retire
ment
s of Ann
e Bus
que
t and Da
le Mo
rriso
n in May an
d
De
ce
mbe
r 202
1 resp
ec
tively. Thes
e obje
ctive
s were suc
ce
ss
fully
fur
there
d whe
n Dan
iela B
aron
e Soa
res join
ed th
e Bo
ard in
Marc
h 202
1 and G
raha
m Allan wa
s app
ointed a
s Sen
ior In
dep
end
ent
Non
-
E
xecutive D
irec
tor from 1 Ja
nuar
y 20
22
. Det
ails o
f Danie
la’s
bio
graphy
, inclu
ding he
r ski
lls and exp
eri
enc
e, are incl
ude
d
on pa
ge 8
4.
The B
oard al
so ap
proved th
e appo
intme
nt of Duri
ya Farooqui to
as
sume re
spo
nsi
bilit
y for its Voice o
f the Emp
loyee en
gage
me
nt
pla
n. Furthe
r det
ails of B
oard s
ucc
es
sion p
lann
ing are inc
lude
d
in the N
omin
ation C
ommit
tee R
epo
rt o
n pag
es 10
2 and 10
3.
Com
mittee ac
tivities
The B
oard d
ele
gates c
er
ta
in resp
ons
ibiliti
es to its C
omm
itte
es to
as
sist i
n ens
uring that e
ec
tive co
rpora
te governan
ce p
er
vade
s
the busi
ness:
•
Th
e Audit C
ommi
tte
e focu
sed o
n the G
roup’s material ac
co
unting
judg
eme
nts an
d estim
ates, ri
sks, inte
rnal c
ontrol
s and bu
sine
ss
conti
nuit
y
, an
d going c
onc
ern a
nd viab
ilit
y (see its re
por
t o
n page
s
95 to 9
9);
•
Th
e Remun
eratio
n Co
mmit
tee foc
use
d on in
centi
ve plan t
arget
s
and p
er
forma
nce an
d review of wo
rkfo
rce remu
nerati
on
con
sid
eratio
ns (see it
s repo
rt o
n pag
es 10
4 to 125);
•
Th
e Resp
on
sibl
e Bus
ine
ss C
ommit
tee fo
cus
ed o
n the de
liver
y
of the G
roup’s 2030 re
spo
nsib
le bu
sine
ss c
ommi
tment
s as well
as the a
nnual o
pe
rationa
l targe
ts (see it
s repo
rt o
n pag
es 10
0
and 10
1); and
•
Th
e Nom
inatio
n Com
mit
tee pro
gres
sed t
he impl
eme
ntatio
n
of Bo
ard refres
hme
nt pla
ns (see it
s repo
rt o
n pag
es 10
2 and 1
03).
A des
cripti
on of the G
roup’s governan
ce str
ucture is g
iven on p
age 8
8.
Focu
s are
as a
nd a
ctivi
tie
s
The B
oard h
ad an ac
tive year in 2
02
1 and a ful
ler de
sc
ription of i
ts
activ
ities i
s given o
n pag
es 8
9 to 91.
A key theme of th
e year wa
s the foc
us on the G
roup’s long
er
-term
strate
gy and grow
th op
po
rtun
ities, g
iven the c
ontinu
ing
improvem
ent of th
e Group’s in
anci
al pos
ition
. This c
an be s
ee
n
in the de
cis
ion to ap
prove the lau
nch of th
e Vign
ette C
olle
ctio
n,
a new c
onversi
on bra
nd in the Lu
xur
y & Lifes
tyl
e se
gment
.
Anoth
er op
por
tunit
y aro
se from th
e new ways of work
ing
acc
ele
rated by th
e pand
emic
. The B
oard too
k the de
cis
ion to ad
opt
lexi
ble wor
king wh
ere po
ss
ible fo
r corp
orate em
ployee
s. It t
as
ked
manag
ement to impleme
nt this while sustaining organi
sational
resil
ienc
e and o
pera
tiona
l e
icien
cy
. T
he B
oard so
ught to en
sure that
IH
G’s value
s and cul
ture were main
taine
d an
d that ta
lent at
trac
tion
and p
rogres
sio
n, as well a
s diver
sit
y and in
clus
ion, we
re enha
nce
d.
The B
oard
’s delib
eration
s were su
ppo
rte
d by its co
ntinuin
g
dialo
gue a
nd eng
age
ment w
ith the G
roup’s workforc
e through
our Voice of th
e Empl
oyee progr
amme
.
Gove
rn
an
c
e
80
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Board performance re
view
Duri
ng the yea
r
, we imp
lem
ented th
e agre
ed ac
tion
s arisin
g from
the 20
20 intern
al Bo
ard and C
omm
itte
e ee
ctive
nes
s evaluati
on
and c
ondu
cted a f
ur
ther inte
rnal evalu
ation p
roce
ss
. I am ple
as
ed
to repo
rt th
at the 20
21 inte
rnal eval
uation c
onc
lude
d that th
e Bo
ard
and it
s Co
mmit
tee
s contin
ue to op
erate ee
ctive
ly
. F
ur
ther d
etail
s
of the eval
uation c
an be fo
und on p
age 9
4. We als
o con
duc
ted
indiv
idua
l Direc
tor fee
dba
ck as
se
ss
ment
s, det
ails of wh
ich c
an
be fou
nd on p
age 94
.
Compliance and our dual
listing
IH
G conti
nue
s to oper
ate as a dual
-li
sted c
omp
any with a pre
mium
listi
ng on the L
ondo
n Stoc
k Exch
ange a
nd a se
co
ndar
y lis
ting on th
e
New York Stock E
xch
ange. U
nde
r the U
K listi
ng rule
s, we are ob
lige
d
to make a sta
temen
t as to how we have app
lie
d the prin
cipl
es of
the U
K Co
rporate G
overn
ance C
od
e (the Co
de) and und
er the N
YSE
listi
ng rule
s, as a fore
ign pri
vate iss
uer
, we are requi
red to dis
clo
se
any signi
ic
ant ways in whi
ch our c
orpo
rate govern
anc
e prac
tice
s
die
r from tho
se of U
S comp
anie
s. T
o ens
ure co
nsis
tency of
inform
ation provi
ded to b
oth UK a
nd US inve
stors
, we produ
ce
a com
bine
d Annu
al Rep
or
t and Form 2
0
F
.
Our S
tatem
ent of C
omp
lian
ce with th
e Co
de is o
n page
s 126 an
d 127
.
A summ
ar
y outlini
ng the di
eren
ces b
et
wee
n the Grou
p’
s UK c
orp
orate
govern
ance p
racti
ce
s and tho
se foll
owed by US c
omp
anie
s c
an
be
found o
n pag
e 246.
Looking f
orward
In 20
22
, the B
oard will c
ontinu
e to ens
ure that a robu
st gove
rnanc
e
frame
work op
erates th
rough
out the G
roup, en
ablin
g IH
G to focus
on the a
chievem
ent of th
e Group’s long
-term s
trategi
c obje
ctive
s
while doing bus
iness res
pons
ibly and remaining mindful of
stak
eholder
int
erests.
Patr
ick Cescau
Cha
ir of the B
oard
21 Feb
ruar
y 20
2
2
Bo
ard an
d Co
mm
itte
e me
mb
ers
hip a
nd at
ten
dan
ce i
n 202
1
Appoint
ment
date
Com
mittee
appoint
ments
Board
Audit
Com
mittee
Responsible
Business
Com
mittee
Nomination
Com
mittee
Remune
ration
Com
mittee
T
ota
l mee
ting
s he
ld
8
5
3
5
5
Chair
Patrick Ce
sc
au
a
01/0
1/1
3
N
8/8
–
–
5/5
–
Ch
ief E
xec
uti
ve O
ice
r
Kei
th B
a
rr
0
1
/0
7/
1
7
8/8
–
–
–
–
Executive Dire
ctors
Paul E
dgeclie-
Johnson
0
1/0
1/14
8/8
–
–
–
–
Elie Maalouf
01/0
1/
18
8/8
–
–
–
–
Senior Independent Non-Executi
ve Di
rector
b
Dale Morrison
b, c
01/0
6/
11
A
N
R
7/8
3/5
–
4/5
3/
5
Non-Executive
D
irectors
Graham Allan
b, d
01/0
9/2
0
A
N
R
8/8
5/5
–
–
4/5
Richard
Anderson
e
01/0
3/2
1
A
R
1/2
0/
1
–
–
1/2
Daniela Barone Soares
f
01/0
3/2
1
R
RB
7/
7
–
2
/2
–
3
/4
Anne Busquet
g
01/0
3/
15
A
RB
3/3
2/2
1/
1
–
–
Ar
thur d
e Ha
ast
0
1/01/
20
R
RB
8/8
–
3/3
–
5/
5
Ian D
ys
on
h
0
1/09/
13
A
N
R
7/8
5/5
–
5/
5
5/
5
Duriya F
arooqui
07/
1
2
/
2
0
A
RB
8/8
5/5
3/3
–
–
Jo H
arl
ow
i
01/0
9/
14
N
R
7/8
–
–
5/5
5/5
Jill McDonald
01/0
6/
13
A
N
RB
8/8
5/5
3/3
5/
5
–
Sharon
Rothst
ein
01/0
6/
20
A
RB
8/8
5/5
3/3
–
–
a
I
n prin
ci
ple t
he Ch
air a
tte
nd
s all C
om
mit
te
e me
etin
gs, a
nd th
e ful
l Bo
ard at
te
nds t
he re
leva
nt se
cti
on
s of th
e Audi
t Co
mmi
tte
e me
eti
ng
s whe
n i
nan
cia
l res
ult
s are c
on
sid
ere
d.
b
D
al
e Mo
rri
son r
etire
d fro
m the B
oa
rd fro
m 31 D
ec
em
ber 2
02
1 an
d Gr
aha
m All
an wa
s app
oin
ted a
s Se
nio
r No
n-
E
xec
utiv
e Dire
cto
r fro
m 1 Jan
ua
ry 2
02
2.
c
Da
le M
orri
so
n was u
nab
le to a
tte
nd a B
oa
rd me
etin
g, an A
udi
t Co
mmi
tte
e me
eti
ng, a N
om
inat
ion C
om
mit
te
e me
etin
g an
d a Rem
une
rati
on C
omm
it
tee m
ee
tin
g due to i
lln
es
s.
He wa
s al
so un
ab
le to at
ten
d an Au
dit C
om
mit
te
e me
etin
g an
d a Rem
une
rati
on C
om
mit
tee m
ee
tin
g due to a p
rio
r en
gag
em
ent
.
d
G
ra
ham A
lla
n was u
nab
le to at
te
nd a Re
mun
era
tio
n Co
mmi
tte
e me
eti
ng du
e to a pr
ior e
nga
ge
me
nt.
e
Ri
cha
rd An
der
so
n was a
pp
oint
ed to th
e Bo
ard o
n 1 Ma
rch 20
2
1 and re
si
gne
d on 2
6 May 2
02
1. Ri
ch
ard wa
s una
bl
e to att
end a B
o
ard me
eti
ng, a
n Aud
it Co
mm
itt
ee m
eet
ing
and a R
emu
ne
rati
on C
omm
it
tee m
ee
ting d
ue to a p
rio
r eng
ag
em
ent
.
f
D
ani
ela B
aro
ne S
oa
res wa
s ap
poi
nte
d to the B
oa
rd fro
m 1 Mar
ch 20
21
. Da
nie
la wa
s una
bl
e to att
end a R
em
une
rati
on C
omm
it
tee m
ee
ting d
ue to a p
rio
r eng
ag
em
ent
.
g
A
nn
e Bu
squ
et ret
ire
d from t
he B
oar
d from 7 M
ay 20
21
.
h
Ian D
ys
on wa
s una
bl
e to att
end a B
o
ard me
eti
ng du
e to a pr
ior e
nga
ge
me
nt.
i
Jo H
ar
low wa
s una
bl
e to att
end a B
o
ard me
eti
ng du
e to a pr
ior e
ng
age
me
nt.
Board
Committ
ee member
ship
ke
y
A
Audit C
ommit
tee m
emb
er
R
Remun
eratio
n Com
mit
tee me
mbe
r
RB
Resp
ons
ible B
usi
nes
s Co
mmit
tee m
emb
er
N
Nomi
nation C
omm
itte
e mem
be
r
Chair of a B
oard C
omm
itte
e
81
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Chair
’
s overview
Patrick Ces
cau
Non
-E
xecutive Chair
N
App
oin
ted to th
e Bo
ard:
1 Jan
uar
y 20
13
Skills
and exper
ience:
From 200
5 to 20
0
8,
Patri
ck wa
s Grou
p Chi
ef E
xecu
tive of U
nil
ever
Gro
up, havi
ng prev
iou
sly b
ee
n Ch
air of U
nil
ever
PLC, V
ice
-
C
hai
r of Uni
leve
r NV an
d Food
s Di
recto
r
,
foll
owin
g a prog
res
sive c
are
er w
ith the c
om
pany,
whi
ch be
ga
n in Franc
e in 1973
. Pri
or to be
ing
app
oin
ted to th
e bo
ard of U
nileve
r PLC an
d
Uni
lever N
V in 19
9
9, as Fi
nan
ce D
irec
tor, he
was C
hai
r of a num
ber o
f the c
omp
any
’s major
operating com
panies and divisio
ns, including in
the U
S, In
don
es
ia an
d Por
tug
al. H
e was fo
rme
rly
a Se
nior I
nd
epe
nd
ent D
irec
tor an
d No
n-
E
xec
utive
Dire
cto
r of Pe
ars
on p
lc, Tesco P
LC and
Inte
rnati
on
al Co
ns
olid
ate
d Airli
ne
s Grou
p S.
A
.,
and a D
ire
ctor a
t IN
SE
AD.
Board contr
ibution:
Patri
ck ha
s he
ld bo
ard
po
siti
ons fo
r mo
re than 2
0 year
s in le
adi
ng gl
oba
l
businesses and br
ings e
xtensive
int
ernat
ional
experience
in st
rat
egy
, brands, consu
mer products
and 
in
anc
e. As C
hai
r
, P
atric
k is re
sp
ons
ibl
e for
le
adin
g the B
oa
rd and e
nsu
ring i
t ope
rate
s in an
eective
manner
, and
promot
ing const
ructiv
e
relati
ons with
s
hareholders
and wider
stakeholders.
As C
hair o
f the N
omin
atio
n Co
mmi
tte
e, he i
s
res
po
nsi
ble fo
r revie
wing a
nd ma
kin
g
recommendations
on the
Group
’
s leadership needs.
Other appointments:
Patri
ck is a P
atron of t
he
St J
ude I
ndi
a Chil
dre
n’s Charit
y an
d a Me
mb
er
of the Tema
se
k Europ
ea
n Advi
so
ry P
ane
l.
Kei
t
h B
a
rr
Chi
ef E
xec
utive O

ice
r (CEO)
App
oin
ted to th
e Bo
ard:
1 Jul
y 20
17
Skills
and exper
ience:
Keith h
as sp
ent m
ore
tha
n 25 yea
rs wor
kin
g in the h
osp
ita
lit
y ind
ust
ry
acro
ss a w
ide r
ang
e of role
s. H
e st
ar
ted h
is
ca
ree
r in hote
l op
erat
ion
s and jo
ine
d IH
G in 2
00
0.
Sin
ce Ap
ril 20
11 he h
as b
ee
n a me
mbe
r of IH
G
’s
E
xecu
tive C
ommi
tte
e. D
irec
tly b
efore b
ei
ng
app
oin
ted C
EO, Keith se
rve
d as C
hie
f Co
mme
rcia
l
O
ic
er fo
r four ye
ars
. In th
is rol
e, he le
d I
HG
’s
glo
bal b
ran
d, loyal
ty, sale
s and m
arketi
ng
fun
ctio
ns, a
nd ove
rsa
w IH
G’s loyalt
y p
rogra
mme
,
IH
G
® Reward
s. Pr
ior to th
is, Kei
th was C
EO of
IH
G’s Gre
ate
r Chin
a bu
sin
es
s for fou
r year
s, s
ett
ing
the fo
und
atio
ns for g
row
th in a key mar
ket and
over
se
eing t
he la
unc
h of the H
UALUX
E® Ho
tels
and Resorts br
and.
Board contr
ibution:
Keith i
s res
pon
sib
le for t
he
execu
tive m
ana
gem
ent o
f the G
roup an
d en
suri
ng
the im
ple
me
nta
tion of B
oa
rd stra
tegy a
nd p
olic
y
.
Other appointments:
Keith is a N
on
-
E
xecu
tive
Dire
cto
r of Yum! Br
and
s. H
e als
o sit
s on th
e Bo
ard
of Wi
HT
L (Wo
men i
n Ho
spi
tali
ty Travel & Le
isur
e),
the Wor
ld Travel & T
ouri
sm C
oun
cil E
xec
utive
Co
mmi
tte
e and t
he Inte
rna
tion
al Adv
iso
r
y Bo
ard
of EH
L. Ke
ith is a g
radu
ate of C
orn
ell U
nive
rsi
ty
’s
Sc
hoo
l of Ho
tel Ad
mini
strat
ion an
d is c
urren
tly
a me
mbe
r of th
e De
an’s Advis
or
y B
oard fo
r
The S
ch
ool o
f Hote
l Adm
inis
trati
on, C
orn
ell S
C
Johnson College of
Business.
Paul E
dgeclie-Johnson
Chi
ef Fi
nan
cia
l O
ic
er (C
FO)
and G
roup H
e
ad of S
trate
gy
App
oin
ted to th
e Bo
ard:
1 Jan
uar
y 20
14
Skills
and exper
ience:
Paul i
s a fell
ow of th
e
Ins
titu
te of Ch
ar
tere
d Acc
oun
tant
s an
d is a
gra
duate o
f the H
ar
vard B
usi
nes
s Sc
ho
ol
Advanced Managem
ent Programme.
He was
prev
iou
sly C
FO of IH
G
’s Europe a
nd As
ia, M
iddl
e
Ea
st an
d Afric
a re
gion
s, a p
osi
tion h
e he
ld si
nce
Se
ptem
ber 2
011
. He jo
ine
d IH
G in Au
gus
t 20
04
and h
as h
eld a n
umb
er of s
eni
or-leve
l in
an
ce
po
siti
ons
, inc
ludi
ng He
ad o
f Inves
tor Re
lati
ons
,
He
ad of G
lo
bal C
orp
or
ate Fin
anc
e an
d Fin
anci
al
Pla
nnin
g & T
ax, a
nd H
ea
d of Hote
l D
evelo
pm
ent,
Europ
e. P
aul al
so ac
ted a
s Inte
rim C
EO of the
Europ
e, M
iddl
e Ea
st an
d Afri
ca re
gion (
pri
or to
the re
co
n
igura
tion o
f our o
pe
rating r
egi
ons).
Board contr
ibution:
Paul i
s res
po
nsi
ble, to
ge
ther
with th
e Bo
ard, fo
r over
se
ein
g the 
ina
ncia
l
op
erati
on
s of the G
roup a
nd for l
ea
ding
Gro
up strate
gy.
Elie Maalouf
Chief Executive Oic
er
, Americ
as
App
oin
ted to th
e Bo
ard:
1 January 2018
Skills
and exper
ience:
Elie wa
s app
oin
ted C
EO,
Ame
ric
as at I
HG i
n Febr
uar
y 20
15 a
nd ha
s more
tha
n 20 yea
rs’ exp
eri
en
ce wor
kin
g in maj
or gl
oba
l
fran
chi
se b
usin
es
se
s. H
e joi
ne
d the G
roup h
aving
sp
ent s
ix yea
rs as P
resi
de
nt and C
EO of H
MS
Ho
st
Co
rpo
ratio
n, wh
ere h
e was al
so a m
emb
er of t
he
bo
ard of di
rec
tors
. Elie b
rin
gs bro
ad exp
eri
en
ce
spanning hotel develop
ment, branding, in
ance,
rea
l est
ate an
d op
erati
on
s man
age
me
nt as we
ll
as fo
od an
d beve
rag
e exp
er
tis
e. Eli
e was S
eni
or
Advi
se
r with M
cK
in
sey & C
omp
any from 2
01
2
to 20
14.
Board contr
ibution:
Elie b
ring
s a de
ep
und
er
sta
ndin
g of th
e glob
al ho
sp
ita
lit
y se
ctor to t
he
Bo
ard. H
e is re
sp
ons
ibl
e for b
usin
es
s deve
lo
pme
nt
and p
er
for
man
ce of a
ll hote
l and re
so
r
t bran
ds an
d
prop
er
ti
es in th
e Ame
ric
as re
gio
n and h
as gl
oba
l
responsibility
for cust
omer dev
elopment, pr
ovidi
ng
over
sigh
t of the G
lob
al S
ale
s org
anis
atio
n, as w
ell
as
our
owner
management
and services st
rat
egy
.
Other appointments:
Elie i
s a mem
be
r of the
Ame
ric
an H
otel & Lo
dg
ing As
so
cia
tion E
xe
cuti
ve
Co
mmi
tte
e of the B
oa
rd, an
d mem
be
r and c
hair
man
of the U
.S. Travel As
so
cia
tion C
EO Rou
ndt
abl
e.
In ad
diti
on, El
ie se
r
ves as a b
oa
rd me
mbe
r of
the Atl
ant
a Co
mmit
te
e for Pro
gre
ss an
d is on t
he
CEO C
oun
cil of t
he G
lob
al Bu
sin
es
s All
ianc
e.
Ou
r Boa
r
d of D
i
r
ect
ors
Board
Committ
ee member
ship
ke
y
A
Audit C
ommit
tee m
emb
er
R
Remun
eratio
n Com
mit
tee me
mbe
r
RB
Resp
ons
ible B
usi
nes
s Co
mmit
tee m
emb
er
N
Nomi
nation C
omm
itte
e mem
be
r
Chair of a B
oard C
omm
itte
e
Gove
rn
an
c
e
82
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Graham Allan
Senior I
ndependent
No
n-
E
xecu
tive D
irec
tor (S
ID)
N
R
A
App
oin
ted to th
e Bo
ard:
1 Sept
ember 2020*
Skills
and exper
ience:
Gra
ham wa
s Gro
up Ch
ief
E
xecu
tive of D
air
y Farm In
tern
ation
al H
old
ing
s
Ltd fro
m 201
2 to 2017, a lead
ing A
sia
n reta
iler
headquartered in
Hong K
ong. He
previousl
y
se
rve
d in s
evera
l se
nior p
os
itio
ns at Pe
ps
ico/
Yum!
Bra
nds f
rom 19
9
2 to 201
2, as
sum
ing th
e role o
f
Pre
sid
ent Yum! Re
st
aura
nts In
tern
ation
al in 2
00
3,
and l
ed th
e deve
lop
me
nt of gl
oba
l bran
ds K
FC,
Piz
z
a Hut a
nd Taco B
ell in m
ore th
an 12
0
inte
rnati
ona
l marke
ts. P
rior to h
is ten
ure at Yum!
Res
ta
urant
s, he wo
rked a
s a co
nsu
lta
nt, in
clu
ding
at Mc
Ki
ns
ey & Co
mpa
ny
.
Board contr
ibution:
Gra
ham b
ring
s to the B
oa
rd
mor
e than 4
0 yea
rs of s
trate
gic, c
omm
erci
al
and bra
nd ex
perience wit
hin
consumer
–focused
businesses
across m
ult
iple
geogr
aphi
es.
Graham w
as appoin
ted as
Senior
Independent
No
n-
E
xecu
tive D
irec
tor fro
m 1 Jan
uar
y 20
2
2.
Other appointments:
Gra
ham i
s Sen
ior
Ind
ep
en
dent N
on
-
E
xecu
tive Di
rec
tor at In
ter
tek
plc a
nd In
de
pe
nde
nt No
n-
E
xec
utive D
ire
ctor of
As
so
ciate
d Br
itis
h Foo
ds pl
c. He a
lso s
er
ve
s as
a dire
ctor o
f pri
vate co
mpa
nie
s as C
hair
man of
Bat
a Foo
twe
ar an
d Dire
cto
r of Am
eric
an
a Foo
ds.
Ian Dyson
Independent
No
n-
E
xecu
tive D
irec
tor
N
R
A
App
oin
ted to th
e Bo
ard:
1 Sept
ember 2013
Skills
and exper
ience:
Ian h
as h
eld a n
umb
er
of se
nio
r execu
tive an
d i
nan
ce rol
es
, inc
ludi
ng
Gro
up Fin
anc
e an
d Op
erat
ion
s Dire
cto
r for M
arks
and S
pe
nc
er Gro
up pl
c for 
ive ye
ars fro
m 20
05
to 20
10, whe
re he ove
rs
aw sig
ni
ic
ant ch
ang
es in
the b
usi
nes
s. I
n ad
ditio
n, Ia
n was C
EO of Pu
nch
T
avern
s plc, F
ina
nc
e Dire
cto
r for the R
ank G
roup
Plc, a
nd G
roup F
inan
cia
l Co
ntroll
er a
nd Fi
nan
ce
Dire
cto
r for th
e hote
ls div
isi
on of H
ilto
n Grou
p plc
.
Mo
re rec
entl
y
, I
an wa
s a No
n-
E
xecu
tive D
irec
tor
of SS
P G
roup p
lc an
d Sen
ior I
nde
pe
nde
nt N
on-
E
xecu
tive Di
rec
tor of Fl
ut
ter Ente
r
tain
me
nt plc
.
Board contr
ibution:
Ian has gaine
d signiicant
exp
erie
nc
e from wo
rkin
g in vari
ous s
en
ior 
ina
nc
e
role
s, p
red
omin
antl
y in the re
tail
, lei
sure a
nd
ho
spit
ali
ty s
ec
tors
. Ia
n be
cam
e Ch
air of th
e
Audi
t Co
mmit
te
e on 1 Ap
ril 20
14, a
nd, as s
uc
h,
is re
sp
ons
ibl
e for le
adi
ng th
e Co
mmit
te
e to ens
ure
eectiv
e in
terna
l cont
rols
and r
isk managemen
t
syste
ms a
re in pl
ace
.
Other appointments:
Ian i
s Ch
air of th
e Bo
ard
of ASO
S pl
c.
Jo Ha
rlow
Independent
No
n-
E
xecu
tive D
irec
tor
N
R
App
oin
ted to th
e Bo
ard:
1 Se
ptem
ber 2
014
Skills
and exper
ience:
Jo mo
st re
ce
ntly h
eld t
he
po
siti
on of C
orp
ora
te Vic
e Pre
sid
ent o
f the Ph
one
s
Bu
sin
es
s Uni
t at Mic
ros
of
t Co
rpo
ratio
n. Sh
e was
prev
iou
sly E
xec
utive V
ic
e Pres
ide
nt of S
mar
t
Dev
ice
s at N
oki
a Co
rpo
ratio
n, fol
lowi
ng a num
be
r
of se
nio
r man
age
me
nt rol
es at N
ok
ia from 2
00
3.
Prio
r to that
, sh
e hel
d mar
keting
, sal
es an
d
management
roles
at R
eebok Int
ernat
ional
Limit
ed
from 1
99
2 to 20
03 a
nd at Pro
cte
r & Gam
ble
Co
mpa
ny from 1
98
4 to 19
92
.
Board contr
ibution:
Jo h
as mo
re tha
n 25 yea
rs’
exp
erie
nc
e work
ing in va
rio
us se
nio
r role
s,
predominan
tly
in t
he branded
and t
echnology
se
ctor
s. J
o be
ca
me Ch
air o
f the Re
mun
erati
on
Co
mmi
tte
e on 1 O
ctob
er 2
017 an
d, as s
uch
, she
le
ads th
e C
ommi
tte
e res
po
nsi
ble fo
r set
tin
g our
remune
ration policy.
Other appointments:
Jo is a N
on
-
Exe
cut
ive
Dire
cto
r and C
hai
r of the R
emun
era
tion C
om
mit
tee
of H
alma p
lc, an
d No
n-
E
xec
utive D
ire
ctor a
nd Ch
air
of the
Corporate
Responsibili
ty and Sustainabi
lity
Co
mmit
te
e of J Sa
ins
bur
y pl
c. Sh
e is al
so a m
emb
er
of the B
oa
rd of Ch
apte
r Zero, th
e Dire
cto
rs’
Climate Forum.
Jill McDonald
Independent
No
n-
E
xecu
tive D
irec
tor
A
N
RB
App
oin
ted to th
e Bo
ard:
1 Jun
e 20
13
Skills
and exper
ience:
Jill i
s curre
ntly C
EO
of C
ost
a C
oe
e. Sh
e st
ar
ted he
r ca
ree
r at
Colgate-Palmolive Compan
y
, spent 16
years w
ith
Bri
tish A
ir
ways Pl
c and h
as he
ld a nu
mbe
r of s
enio
r
mar
keting p
os
itio
ns in th
e UK a
nd over
se
as
. Jill wa
s
CEO U
K and P
res
ide
nt for th
e No
rt
h West Eu
rop
e
divi
sio
n of M
cD
ona
ld
’s, and he
ld a nu
mb
er of
othe
r se
nio
r role
s in th
e com
pany fro
m 20
0
6.
From May 20
15 u
ntil Se
pte
mbe
r 20
17
, J
ill s
er
ved
as C
EO of the H
alfo
rds G
roup p
lc. From 20
17
to 20
19, Jil
l ser
ve
d as M
ana
gin
g Dire
cto
r of
Ma
rks an
d Spe
nc
er C
lothi
ng an
d Hom
e.
Board contr
ibution:
Jill h
as ove
r 30 ye
ars’
experience working with high-proile international
co
nsu
mer-fa
cing b
ran
ds at b
oth ma
rketing a
nd
op
erati
on
al leve
l. As C
hai
r of the R
esp
on
sib
le
Bu
sin
es
s Co
mmit
te
e, sh
e lea
ds th
e Co
mmit
te
e
responsible
for r
esponsible busi
ness objectiv
es
and s
trate
gy an
d revie
wing o
ur ap
proa
ch to
sustainable de
velopment.
Other appointments:
Jill i
s CEO of C
os
ta C
oe
e.
* Gr
aha
m was a m
emb
er o
f the B
oa
rd fro
m 1 Jan
uar
y 2
010 t
o 15 Ju
ne 2
012 p
rio
r to be
ing a
pp
oint
ed a
s Chi
ef O
pe
ratin
g O
i
cer o
f Da
ir
y Farm In
tern
ati
ona
l Ho
ldi
ngs L
imi
ted
83
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Our B
oard of D
irec
tors
Our Boa
r
d o
f Dir
ect
ors
co
ntin
u
e
d
Daniela Barone Soares
Independent
No
n-
E
xecu
tive D
irec
tor
RB
R
App
oin
ted to th
e Bo
ard:
1 Ma
rch 20
21
Skills
and exper
ience:
Dan
iel
a is cu
rrentl
y Chi
ef
E
xecu
tive O
i
cer o
f Snow
bal
l Imp
act M
an
age
me
nt
Ltd. S
he was f
orme
rly C
hie
f Exe
cuti
ve O
ic
er
of 
inan
cia
l adv
iso
r
y and s
trate
gic c
ons
ult
ancy,
Gra
nito G
roup. P
rior to t
his, s
he wa
s Chi
ef
E
xecu
tive O
i
cer a
t Imp
etus
, a pri
vate eq
uit
y
foun
dati
on an
d Exe
cut
ive Ch
air of G
ove.d
igit
al,
a pri
vate tec
hno
log
y bu
sin
es
s work
ing wi
th the
pub
lic s
ec
tor to imp
rove so
cia
l se
rv
ice
s in B
razi
l.
She h
as s
er
ved o
n vari
ous c
om
merc
ial an
d
non
-p
ro
it b
oard
s and a
dvi
sor
y b
oard
s, in
clu
ding
Ha
lma p
lc, Evora S
.A
. i
n Bra
zil an
d the U
K Na
tion
al
Advi
so
ry B
oa
rd to the G
8 So
cia
l Imp
act I
nves
tme
nt
T
ask
fo
rce. S
he al
so s
pe
nt ne
arly 1
5 year
s co
mbin
ed
in rol
es at S
ave the C
hil
dren, B
an
cB
os
ton Ca
pit
al
pri
vate eq
uit
y
, Citi
ban
k and G
old
man S
ac
hs.
Board contr
ibution:
Dan
iel
a brin
gs to th
e IH
G
Bo
ard a cl
ea
r com
mitm
ent to ES
G res
po
nsi
bili
tie
s
and i
n-
de
pth kn
owl
edg
e of th
e role o
f tech
nol
og
y
in dri
ving c
han
ge.
Other appointments:
Dan
iel
a is a D
esi
gnate
d
Me
mbe
r of S
nowb
all Im
pa
ct Inve
stm
ent
s GP L
LP
,
a dive
rsi
i
ed inve
stm
ent f
und fo
cus
ed o
n
ge
ner
ating 
in
anci
al retu
rns w
ith a po
sit
ive so
cia
l
and e
nviro
nme
nta
l imp
act
. She i
s als
o a T
rus
tee of
the H
ad
dad Fo
und
ation
, a Me
mbe
r of th
e Advi
so
ry
Bo
ard of Fo
rwa
rd Ins
titu
te and Truste
e of th
e
Ins
titu
te for th
e Future of Work
.
Ar
thu
r de H
aa
st
Independent
No
n-
E
xecu
tive D
irec
tor
RB
R
App
oin
ted to th
e Bo
ard:
1 Jan
uar
y 20
20
Skills
and exper
ience:
Ar
thur h
as he
ld s
evera
l
se
nior ro
le
s in the J
on
es L
ang L
a
Sall
e (J
LL) gro
up,
inc
ludi
ng Ch
air o
f JL
L
’s Ca
pit
al M
arkets A
dvi
sor
y
Co
unc
il and C
ha
ir and G
lo
bal C
EO of J
LL
’s Hote
ls
and H
os
pit
alit
y G
roup. A
rth
ur is a
lso a fo
rme
r
Ch
air of th
e In
stitu
te of Ho
sp
ita
lit
y
.
Board contr
ibution:
Ar
thur h
as mo
re tha
n
30 ye
ars
’ expe
rie
nce i
n the c
api
tal m
arket
s, hote
ls
and h
os
pit
alit
y se
cto
rs, a
lon
g with s
igni
ic
ant
board-level kno
wledge around
sustainability
.
Other appointments:
Ar
thur i
s Cha
ir of J
LL
’s
Ca
pit
al Ma
rkets A
dvis
or
y C
oun
cil, an I
nd
epe
nd
ent
No
n-
E
xecu
tive D
irec
tor of C
hal
et H
otel
s Limi
ted
and c
hai
r of its R
is
k Man
age
me
nt Co
mmi
tte
e, an
d
a me
mbe
r of th
e Advi
sor
y B
oar
d of the S
cot
tis
h
Business School, University o
f Strat
hclyde,
Glasgow
.
Duriya Farooqui
Independent
No
n-
E
xecu
tive D
irec
tor
RB
A
App
oin
ted to th
e Bo
ard:
7 De
ce
mb
er 20
20
Skills
and exper
ience:
Duri
ya is an I
nd
epe
nd
ent
Dire
cto
r at Inte
rco
ntine
nt
al E
xchan
ge, I
nc. (I
CE
),
a le
adin
g op
erato
r of gl
oba
l excha
nge
s and
clearing
houses, and pr
ovider
of mortgage
tec
hno
log
y
, dat
a and li
stin
gs s
er
vic
es
. Dur
iya was
prev
iou
sly Pre
si
den
t of Sup
ply C
ha
in Inn
ovatio
n
at Georgia-Paciic,
leading an
organisat
ion
responsible for
solving supply
chain chal
lenges
through
digital
technology and
collaboration.
Prio
r to this
, sh
e was E
xec
utive D
ire
ctor o
f Atlant
a
Co
mmi
tte
e for Pro
gre
ss
, a coa
liti
on of ove
r
30 C
EOs p
rovidi
ng le
ad
ers
hip o
n ec
ono
mic
grow
th an
d inc
lus
ion o
ppo
r
tuniti
es in At
lant
a.
Dur
iya ha
s als
o be
en a p
rinc
ipa
l at Ba
in & Co
mpa
ny
and C
hie
f Op
erat
ing O
i
ce
r of the C
it
y of Atla
nta
.
Board contr
ibution:
Dur
iya’s diver
se b
oard a
nd
execu
tive
-l
evel ex
pe
rien
ce b
ring
s valu
abl
e ins
ight
s
and p
er
sp
ect
ives to I
HG
. She c
omb
ine
s mo
re than
two d
ec
ad
es of re
leva
nt exp
er
tis
e in bu
sin
es
s
strat
egy
, transfor
mation
and inno
vat
ion, w
ith
a cle
ar c
omm
itme
nt to dri
ving re
sp
on
sib
le
operations
and div
ersity
.
Other appointments:
Duri
ya is a m
emb
er of
the B
oa
rd of T
rib
e Cap
ita
l Grow
th C
orp I a
nd an
Ind
ep
en
dent D
ire
ctor a
t Inte
rcon
tine
nta
l Exc
han
ge,
Inc
. She s
er
ve
s on the b
oa
rds of N
YSE a
nd I
CE
NGX
, both s
ubs
idi
arie
s of I
CE
, and c
o
-c
hai
rs th
e
NYS
E Bo
ard Ad
vis
or
y Co
unc
il of C
EOs. D
uri
ya is
als
o a T
rus
tee of A
gne
s Sc
ott C
ol
le
ge, a G
overni
ng
Bo
ard me
mb
er of th
e Woo
dru
 Ar
ts C
ente
r
, a
me
mbe
r of th
e Bo
ard of C
oun
cilo
rs of T
he C
ar
ter
Ce
nter a
nd a me
ntor fo
r the E
xC
o Gro
up, LLC
.
Sharo
n Rothstein
Independent
No
n-
E
xecu
tive D
irec
tor
RB
A
App
oin
ted to th
e Bo
ard:
1 Jun
e 20
20
Skills
and exper
ience:
Sha
ron cu
rrentl
y se
rve
s
as O
pe
ratin
g Par
tne
r of St
ripe
s Gro
up, a grow
th
equit
y irm investing in high-growth con
sumer
and S
aa
S (Sof
t
ware a
s a Ser
vi
ce) co
mpa
nie
s.
She p
revi
ous
ly se
r
ved a
s Exe
cuti
ve Vic
e Pre
sid
ent
,
Global Chief Marketing Oice
r
, and subsequ
ently
,
as E
xec
utive V
ic
e Pres
ide
nt, G
lob
al C
hief P
rodu
ct
Oicer for Starbucks
Corporati
on. In add
ition,
Sharon
has held
senior mar
ket
ing a
nd brand
man
ag
eme
nt po
sit
ion
s at Se
pho
ra LLC, G
od
iva
Ch
oc
olat
ier, Inc., St
ar
woo
d Ho
tels & R
es
or
ts
World
wid
e, In
c., Na
bis
co B
isc
uit C
om
pany an
d
Procter & Gamble Company
.
Board contr
ibution:
Sharon
brings e
xtensive
bra
nds
, marke
ting an
d digi
tal e
xpe
rt
ise, h
avin
g
worke
d in se
nio
r po
siti
ons fo
r more t
han 2
5 year
s
at ic
onic g
lob
al c
omp
anie
s. I
n add
itio
n to he
r
kno
wle
dge o
f the h
osp
ita
lit
y ind
ust
ry, Sharo
n has
wid
e
-ran
gin
g boa
rd-
leve
l exp
erie
nc
e in a num
be
r
of consumer
-focused businesses.
Other appointments:
Sha
ron se
r
ves o
n the b
oard
s
of Yelp, Inc
. and B
loc
k, I
nc.
; and al
so fo
r priv
ate
co
mpa
nie
s T
r
ue Foo
d Ki
tche
n, In
c., C
ali
ia Farm
s,
LLC an
d Levai
n Bake
ry, Inc.
Board
Committ
ee member
ship
ke
y
A
Audit C
ommit
tee m
emb
er
R
Remun
eratio
n Com
mit
tee me
mbe
r
RB
Resp
ons
ible B
usi
nes
s Co
mmit
tee m
emb
er
N
Nomi
nation C
omm
itte
e mem
be
r
Chair of a B
oard C
omm
itte
e
Gove
rn
an
c
e
84
IH
G
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ma
le,
7
Femal
e,
5
Board
composition
Ge
nde
r split of Directo
rs
0
–3 year
s,
4
3–
6 yea
rs,
1
6–
9 year
s,
3
9+ ye
ars,
1
a
T
e
nur
e of
Non
-E
xec
utive Dir
ecto
rs
Ch
ang
es to t
he B
oar
d and it
s Co
mmi
tte
es
, and E
xec
utive C
omm
itte
e
Graham Allan
G
rah
am was a
pp
ointe
d as S
eni
or No
n-
E
xec
utive D
ire
ctor a
nd me
mb
er of th
e No
min
ation C
om
mit
tee
from 1 J
anu
ar
y 202
2
Richard
Anderson
Rich
ard wa
s app
ointe
d to th
e Bo
ard from 1 M
arc
h 202
1 an
d res
igne
d on 2
6 May 20
2
1
Daniela Barone Soares
Dan
iel
a was ap
po
inted to t
he B
oard f
rom 1 Ma
rch 20
2
1
Anne Busquet
Ann
e retire
d fro
m the B
oard f
rom 7 M
ay 202
1
Dale Morrison
D
al
e retire
d from t
he Bo
ard fro
m 31 D
ec
em
ber 2
02
1
In ad
dition to th
e above ch
ange
s, in J
anuar
y 20
2
2 the C
ompa
ny announ
ce
d that Patric
k Ce
sc
au will retire a
s Non
-
E
xecutive C
hair of th
e
Bo
ard with e
ect fro
m 31 Augu
st 20
2
2, with D
ean
na Op
pen
heim
er to be a
ppoi
nted to the B
oard a
s Non
-
Exe
cutive D
irecto
r and Ch
air
De
sign
ate ee
ctive 1 Jun
e 202
2
, to succ
ee
d Patric
k Ce
sc
au as N
on-
E
xecu
tive Cha
ir from 1 Se
ptemb
er 20
22 fo
llowin
g his retirem
ent.
a
P
atri
ck C
es
cau h
as s
er
ve
d on th
e Bo
ard fo
r
nin
e yea
rs. A
s no
ted a
bove, P
atr
ick w
ill ret
ire
fro
m the B
oa
rd from 1 S
ep
tem
ber 2
02
2 af
te
r
han
din
g ove
r to De
ann
a Op
pe
nhe
im
er, who
joi
ns th
e Bo
ard fr
om 1 Ju
ne 2
02
2 to su
cc
ee
d
Pat
rick a
s Ch
air.
85
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Our B
oard of D
irec
tors
In a
ddi
tio
n to Keith B
arr, Paul E
dg
ecl
ie
-Jo
hn
son a
nd E
lie M
aa
lou
f, the E
xec
uti
ve Com
mi
tte
e co
mpr
ise
s:
Claire
Bennett
Gl
oba
l Chi
ef Cu
stom
er O

ice
r
App
oin
ted to th
e
Executive Committee:
Oc
tob
er 20
17
(
joi
ne
d the G
roup: 2
017
)
Skills
and exper
ience:
Cla
ire ha
s an in
-
dep
th
kno
wle
dge o
f the h
osp
ita
lit
y ind
ust
ry h
aving s
pe
nt
11 yea
rs at Am
eri
can E
x
pres
s in a ra
nge o
f sen
ior
le
ade
rs
hip rol
es a
cros
s ma
rketing
, con
sum
er tr
avel
and l
oyalt
y
. In h
er ten
ure the
re, C
laire w
as Ge
ne
ral
Ma
nag
er (G
M), Gl
oba
l T
ravel an
d Life
st
yl
e, whe
re
sh
e led a te
am re
sp
ons
ibl
e for d
elive
rin
g luxur
y
life
st
yle s
er
vi
ce
s, an
d she h
eld a
ddi
tion
al rol
es
inc
ludi
ng G
M for C
ons
ume
r Loyal
ty, GM for U
S
Co
nsu
me
r T
r
avel, an
d Se
nio
r Vic
e Pre
sid
ent,
Gl
oba
l Mar
keting a
nd B
rand M
an
age
me
nt. C
laire
ha
s als
o hel
d se
nior m
arketi
ng p
osi
tion
s at De
ll,
as we
ll as 
ina
nc
e and g
ene
ral m
ana
gem
ent
role
s at Pe
ps
iC
o/Qua
ker Oat
s Co
mp
any
, b
uil
ding
signiicant e
xpertise across technology
, retai
l
e
-c
om
merc
e, 
inan
cia
l se
rv
ice
s, an
d trave
l and
hospital
ity secto
rs.
Cl
aire ha
s be
en a
n Exe
cuti
ve Bo
ard M
emb
er o
f the
World Travel an
d T
ouri
sm C
oun
cil (
W
T
TC), se
rve
d
as a B
oard M
em
be
r of T
umi I
nc. an
d par
ti
cip
ated
on mu
ltip
le in
dus
try a
dvi
so
ry b
oa
rds. C
lai
re is
a Ce
r
ti
ied P
ubl
ic Acc
ou
ntan
t and h
old
s an M
BA
from th
e J.
L. Ke
llo
gg Gr
adu
ate Sc
hoo
l of
Management
at North
wester
n Univ
ersity
.
Ke
y resp
onsibi
lities:
These include a
ll aspects
of br
and d
esi
gn an
d com
me
rcial d
eli
ver
y
, loyalt
y,
partner
ships, mark
eting ex
ecution and
data analytic
s.
Jolyon
Bulley
Chi
ef E
xec
utive O

ice
r
, Gre
ater C
hina a
nd
Gro
up T
ran
sfor
matio
n Le
ad, Lu
xur
y & Life
st
yl
e
App
oin
ted to th
e
Executive Committee:
Nove
mbe
r 2017
(
joi
ne
d the G
roup: 2
00
1)
Skills
and exper
ience:
Prio
r to his ap
po
intm
ent as
CEO fo
r Gre
ater C
hin
a, Jo
lyon wa
s Chi
ef O
per
ating
O
ic
er (C
OO) for th
e Am
eric
as
, lea
din
g the re
gio
n’s
op
erati
on
s for fra
nch
ise
d an
d man
age
d hote
ls
, in
addition to cultivating franchisee relations
hips and
enh
anc
ing h
otel o
pe
ratin
g per
fo
rman
ce
. Jol
yon
als
o se
rve
d as C
OO fo
r Gre
ate
r Chin
a for al
mos
t
four ye
ars
, with ove
rs
ight of t
he reg
ion’s hote
l
po
rt
fol
io an
d bran
d pe
rfo
rma
nce
, foo
d and
beve
rag
e bra
nd so
luti
ons
, new h
otel o
pe
ning
s
and ow
ne
r rela
tion
s. In 2
02
1, he w
as ap
poi
nted to
le
ad the L
uxur
y & Li
fes
ty
le T
ran
sfor
mati
on Team.
Jo
lyon jo
ine
d IH
G in 2
00
1, as D
irec
tor of
Op
era
tion
s in Ne
w Sou
th Wale
s, Au
stra
lia, a
nd
then held r
oles of i
ncreasing r
esponsibility across
IH
G’s As
ia-
Pa
ci
ic re
gio
n. H
e be
ca
me Re
gion
al
Dire
cto
r Sal
es a
nd M
arketin
g for Au
stra
lia,
New Z
eal
and a
nd So
uth P
aci
ic i
n 20
03, re
lo
cate
d
to Sin
gap
ore in 2
00
5 an
d hel
d po
siti
ons o
f Vic
e
Pre
sid
ent O
pe
ratio
ns S
outh E
as
t Asi
a and I
ndi
a,
Vic
e Pre
sid
ent R
eso
r
ts, a
nd Vi
ce Pre
si
den
t
Op
era
tion
s, So
uth E
as
t and S
outh We
st As
ia.
Jo
lyon gr
adu
ated f
rom Wi
llia
m Angl
is
s Ins
titute
in M
elb
ourn
e with a c
on
ce
ntratio
n on Touris
m
and Hospit
ality
.
Ke
y resp
onsibi
lities:
These include the
man
ag
eme
nt, gro
wt
h and p
ro
ita
bilit
y of I
HG
’s
fas
tes
t-grow
ing re
gio
n, Gre
ate
r Chin
a, an
d
work
ing to d
evel
op an
d de
in
e a cle
ar st
rateg
y
for ou
r Luxu
ry & L
ife
st
yle b
rand
s.
Y
as
min D
ia
mon
d, C
B
E
xecu
tive Vi
ce Pre
si
den
t,
Global Corporat
e Aair
s
App
oin
ted to th
e
Executive Committee:
April 2016
(
joi
ne
d the G
roup: 2
01
2)
Skills
and exper
ience:
Be
fore jo
ining I
H
G in 20
12,
Y
as
min wa
s Dire
cto
r of Co
mmu
nic
atio
ns at th
e
Ho
me O
i
ce, w
here s
he a
dvis
ed t
he H
ome
Se
cret
ar
y
, mini
ste
rs an
d sen
ior o
ic
ial
s on th
e
stra
tegic
devel
opment a
nd dai
ly manag
ement
of all t
he Ho
me O

ice’s ex
tern
al an
d inter
nal
communicati
ons. She w
as pre
viously Dir
ector
of C
omm
unic
atio
ns at th
e De
pa
rtm
ent fo
r
Enviro
nme
nt, Fo
od an
d Rura
l Aa
irs; H
ea
d of
Co
mmu
nic
ation
s for We
lfare to Wo
rk and N
ew
De
al; an
d He
ad of M
arke
ting at th
e De
pa
rtm
ent fo
r
Education
and Skil
ls. Befor
e join
ing go
vernment
communic
ations, Y
as
min was Publicity
Co
mmi
ss
ion
er for t
he B
BC, w
here s
he l
ed
co
mmun
ica
tion
s act
ivit
y aro
und th
e lau
nch o
f a
new d
igit
al le
arni
ng ch
ann
el an
d arou
nd th
e BB
C
’s
ed
uca
tion
al ou
tput f
or bo
th adu
lts an
d chi
ldre
n.
In 20
11, Yasmi
n was awa
rde
d a Co
mpa
nion o
f the
Ord
er of th
e Ba
th (CB) in t
he Ne
w Y
ear
’s Hon
our
s
Lis
t in re
co
gniti
on of h
er c
aree
r in gove
rnm
ent
co
mmun
ica
tion
s. In a
ddi
tion
, Y
as
min si
ts on t
he
Bo
ard of Truste
es fo
r the B
riti
sh C
oun
cil, th
e UK
’s
inter
national
organisat
ion f
or cult
ural
relati
ons and
ed
uca
tion
al op
po
rtu
niti
es, a
nd is a B
oa
rd T
rus
tee
me
mbe
r of th
e Sus
tai
nab
le Ho
sp
ita
lit
y Alli
anc
e.
Ke
y resp
onsibi
lities:
Yasmi
n is res
po
nsi
ble fo
r
all gl
ob
al co
rpo
rate a
air
s acti
vit
y
, focu
se
d on
supporting a
nd enablin
g IHG’s
broader strat
egic
pri
oriti
es
. Thi
s incl
ude
s all ex
te
rnal a
nd inte
rna
l
co
mmun
ica
tion
s, co
verin
g both c
orp
or
ate and
co
nsu
mer b
ran
d PR
; glo
bal g
overn
ment a
ai
rs
work
; an
d le
adin
g IH
G’s C
orp
orate
Resp
onsibilit
y strategy
.
Nicolette Henfr
ey
E
xecu
tive Vi
ce Pre
si
den
t,
General Counsel a
nd
Company Secretary
App
oin
ted to th
e
Executive Committee:
Feb
rua
r
y 20
19
(
joi
ne
d the G
roup: 2
00
1)
Skills
and exper
ience:
Nic
ole
tte j
oin
ed I
HG in
20
01, a
nd pr
ior to l
ead
ing th
e Bu
sin
es
s Rep
uta
tion
and R
esp
on
sib
ilit
y fun
cti
on, he
ld a nu
mb
er of
se
nior l
eg
al rol
es, i
ncl
udin
g De
put
y C
omp
any
Se
cret
ar
y
, duri
ng whi
ch tim
e she w
orked w
ith
the B
oa
rd, E
xecut
ive C
ommi
tte
e an
d wide
r
organisat
ion t
o ensure
best-i
n-clas
s deliv
ery
and compliance acr
oss legal, go
vernance
and
reg
ulato
ry a
rea
s. Ni
co
let
te is a s
olic
itor q
uali
i
ed
in En
glan
d and S
out
h Afric
a an
d worke
d as a
corporate
lawyer a
t Linkla
ters i
n London
and
Fin
dlay & Tait (now Bow
man
s) in Sou
th Afri
ca
.
Nic
ol
ett
e was ap
poi
nted a
s Co
mp
any Se
cret
ar
y
on 1 M
arch 2
019.
Ke
y resp
onsibi
lities:
Nico
lette has global
res
po
nsib
ilit
y fo
r all are
as of c
orp
ora
te gover
nan
ce,
legal, risk
management, insura
nce, regula
tory
co
mpli
anc
e, inte
rna
l audi
t, an
d hote
l st
and
ards
.
O
ur E
xec
ut
iv
e C
ommit
t
e
e
Gove
rn
an
c
e
86
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ma
le,
7
Femal
e,
3
Exe
cuti
ve Comm
itte
e comp
os
itio
n
Ge
nde
r split of Execu
tive Commi
tte
e
Wayn
e H
oa
re
Chi
ef Hu
man R
eso
urc
es O
i
ce
r
App
oin
ted to th
e
Executive Committee:
September
2020
(
joi
ne
d the G
roup: 2
02
0)
Skills
and exper
ience:
Wa
yne has
more
than
30 ye
ars o
f expe
rie
nce i
n HR a
nd joi
ne
d IH
G from
RC
L FOO
DS, w
here h
e sp
ent s
even ye
ars a
s the
co
mpa
ny’s Chi
ef Hu
man R
eso
urc
es O
i
ce
r
,
le
adin
g RC
L FOO
DS
’ cult
ure bui
ldin
g and t
ale
nt
stra
tegy fo
r 25,0
0
0 emp
loye
es. P
rio
r to joini
ng
RC
L FOO
DS, Wayn
e sp
ent 2
6 year
s at Uni
leve
r
,
whe
re he wo
rked a
cros
s a bro
ad ra
nge o
f role
s
in bo
th matu
re and d
evel
opi
ng ma
rkets a
cros
s
Europ
e, N
or
th Am
eric
a, As
ia, Af
ric
a and th
e
Middle East.
Wayne’s mo
st re
cen
t role at U
nil
ever wa
s as SV
P
,
HR – G
lo
bal C
ent
res of E
xp
er
ti
se, wh
ere h
e hel
d
res
po
nsi
bilit
y fo
r the G
lob
al Talent
, Lea
der
shi
p
Deve
lo
pme
nt an
d Reward te
am
s. H
e led t
he
deve
lop
me
nt of the c
om
pany
’s HR st
rateg
y
on e
nab
ling a p
er
for
man
ce cu
lture fo
cus
ed
on grow
th
.
Ke
y resp
onsibi
lities:
These include global
talent
manage
ment, learning and c
apability buildin
g,
diversity
, organ
isation
development,
rew
ard
and
be
ne
it p
rogr
amm
es, e
mpl
oyee re
lati
ons a
nd al
l
as
pe
cts o
f the p
eop
le an
d org
anis
ati
on str
ateg
y
for th
e Gro
up.
Kenne
th Macpherson
Chi
ef E
xec
utive O

ice
r
, EME
A
A
App
oin
ted to th
e
Executive Committee:
April 2013
(
joi
ne
d the G
roup: 2
01
3)
Skills
and exper
ience:
Kenne
th be
ca
me C
EO,
EM
EA
A i
n Jan
uar
y 20
18
. Kenne
th was p
revio
usl
y
IH
G’s CEO fo
r Gre
ater C
hin
a, a rol
e he he
ld fro
m
20
13 to 20
17
. Kenne
th ha
s exte
nsi
ve exp
erie
nc
e
acro
ss s
al
es, m
arketi
ng str
ateg
y
, b
us
ine
ss
deve
lop
me
nt and o
pe
ratio
ns
. In ad
diti
on to
12 yea
rs liv
ing a
nd wor
king i
n Chi
na, Ken
neth’s
ca
ree
r incl
ude
s exp
eri
enc
e in As
ia, th
e UK
, Fran
ce
and S
out
h Afric
a. B
efo
re IH
G, Kenn
eth wor
ked
for 20 ye
ar
s at Dia
ge
o, one o
f the U
K’s lea
ding
branded com
panies. His
s
enior
management
po
siti
ons i
ncl
ude
d se
rv
ing a
s Ma
nagi
ng Di
rec
tor
of Di
age
o Gr
eate
r Chi
na, wh
ere h
e hel
pe
d to bui
ld
the c
omp
any
’s pres
enc
e an
d led t
he la
ndm
ark de
al
to ac
quire S
huiJ
ing
Fang, a l
ead
ing m
anuf
act
urer
of Ch
ina’s nati
ona
l drin
k, an
d on
e of the 
ir
st
fore
ign ac
qui
siti
ons o
f a Chi
nes
e lis
ted c
om
pany.
Ke
y resp
onsibi
lities:
Ken
neth i
s res
po
nsib
le fo
r
the m
ana
gem
ent
, grow
th an
d pro
it
abi
lit
y of the
EM
EA
A re
gio
n. H
e als
o man
ag
es a p
or
tfo
lio of
hote
ls in s
om
e of the wo
rld
’s mos
t excitin
g
de
stin
atio
ns, i
n both m
ature a
nd em
ergi
ng ma
rkets
.
G
e
o
r
g
e
Tu
r
n
e
r
Chi
ef C
omm
erci
al
and Tech
nol
ogy O

ice
r
App
oin
ted to th
e
Executive Committee:
January 20
09
(
joi
ne
d the G
roup: 2
00
8)
Skills
and exper
ience:
In Feb
ruar
y 2
019,
Ge
org
e was ap
po
inted a
s Ch
ief C
omm
erc
ial an
d
T
ech
nol
og
y O
ic
er. Prior to th
is, G
eo
rge sp
ent
over a d
ec
ade a
s IH
G’s E
VP
, Ge
ne
ral C
oun
se
l
and C
om
pany S
ec
reta
ry, with res
po
nsi
bili
ty fo
r
corporate
governance
, risk a
nd assurance, legal
,
corporate
responsibili
ty and in
format
ion securi
ty
.
He i
s a sol
icito
r
, qua
lif
yin
g to priva
te pra
ctic
e
in 19
9
5. B
efore j
oini
ng IH
G, Ge
org
e sp
ent ove
r
10 ye
ars wi
th Imp
eri
al C
hem
ica
l Ind
ust
ries P
LC,
whe
re he h
eld v
ario
us key po
siti
ons i
ncl
udin
g
Deput
y Company Secretary and Senior
Legal Coun
sel.
Ke
y resp
onsibi
lities:
These include dist
ributi
on;
channels;
re
venue
management;
property
, owner
,
guest and
enterpri
se solutions
; guest r
eservations
and c
usto
me
r car
e; digi
tal; i
nform
atio
n se
curi
ty;
tec
hno
log
y and g
lob
al s
ale
s.
87
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Our E
xec
utive Co
mmit
tee
G
ove
r
n
a
n
c
e
s
t
r
u
c
t
u
re
Management
C
ommi
ttees
Op
eratio
nal ma
tter
s, routin
e bus
ines
s and i
nformati
on dis
clo
sure
proc
edu
res are de
leg
ated by the B
oa
rd to Mana
gem
ent C
ommit
tee
s.
The M
ana
gem
ent C
ommit
tee
s are co
mpri
sed o
f seni
or execu
tives,
incl
uding w
here rel
evant, the E
xec
utive Dire
ctor
s.
The E
xec
utive Co
mmit
tee i
s chaire
d by the C
EO and con
sid
ers an
d
man
age
s the day-to
-
day strate
gic and o
per
ationa
l iss
ues f
acing th
e
Group. I
ts rem
it inclu
de
s executing th
e strate
gic pl
an onc
e agre
ed
by the Bo
ard, mo
nitoring th
e Group’s per
for
manc
e and p
roviding
as
suran
ce to the B
oard in re
lation to overa
ll pe
rfor
manc
e and
risk management.
The G
en
eral Pu
rpos
es C
omm
itte
e is ch
aired by an E
xec
utive
Co
mmit
tee me
mbe
r and at
ten
ds to item
s of a routine n
ature and
to the adm
inistra
tion of m
atter
s, the p
rincip
les o
f which h
ave bee
n
agre
ed prev
ious
ly by the Bo
ard or an a
pprop
riate C
ommit
tee
.
The D
isc
los
ure Co
mmit
tee is c
haire
d by the Grou
p’
s Fina
ncial
Co
ntrolle
r and en
sure
s that prop
er p
roce
dures a
re in pla
ce for
sta
tutor
y and lis
ting re
quirem
ents
. This C
omm
itte
e rep
or
ts to the
Chie
f Exe
cutive O
i
cer, the Chief F
inan
cial O
i
cer a
nd the
Audit Commit
tee.
Co
ndu
ct of B
oa
rd an
d Com
mit
tee M
ee
ting
s
The C
hair an
d Co
mpany S
ecret
ar
y ope
rate a co
llab
orative pro
ce
ss
for se
tting th
e Bo
ard age
nda to e
nsure th
at the foc
us and d
iscu
ss
ion
strikes th
e appro
priate b
alanc
e be
twe
en the s
hor
t-term ne
ed
s of the
bus
ine
ss an
d the lon
ger te
rm. Th
e Chai
r or Co
mmit
tee C
hairs
, CEO
and C
omp
any Sec
retar
y al
so liai
se in a
dvanc
e of ea
ch Bo
ard and
Co
mmit
tee me
etin
g to ina
lise th
e age
nda
s, set th
e order i
n which
items a
re con
side
red an
d ens
ure that e
ach ma
tter i
s allo
cate
d
suicie
nt time. The Company Secretar
y maintains an annual agenda
sch
edu
le for B
oard me
eting
s that se
ts out s
trategi
c and op
erati
onal
mat
ters to b
e con
side
red.
The B
oard h
eld e
ight sc
hed
uled m
eeti
ngs dur
ing the yea
r and
indiv
idua
l atten
dan
ce is s
et out o
n pag
e 81. All D
irec
tors are
expe
cted to at
ten
d all Bo
ard me
etings a
nd rel
evant Co
mmit
tee
me
etings u
nles
s they are p
revented fro
m doing s
o by prior
com
mitme
nts, illn
es
s or a co
nl
ict of inte
rest
. If Dire
ctor
s are unab
le
to atten
d Bo
ard or C
ommi
tte
e mee
tings, th
ey are sen
t the releva
nt
pap
ers a
nd as
ked to provide c
omm
ents to th
e Chai
r of the B
oard
or C
ommit
tee i
n advan
ce of the m
eeti
ng so th
at their c
omm
ents
can b
e duly c
ons
ide
red.
Tim
e is set a
sid
e at the st
ar
t and en
d of ea
ch Bo
ard me
eting fo
r the
CEO to me
et with th
e Chai
r and No
n-
E
xecu
tive Direc
tors, a
nd for th
e
Cha
ir to mee
t privatel
y with the S
enio
r Inde
pe
nde
nt Non
-
E
xecutive
Dire
ctor (SI
D) and No
n-
E
xecuti
ve Direc
tors to dis
cus
s any mat
ters
arisi
ng. Th
e SI
D contin
ues to b
e availabl
e to disc
uss c
onc
ern
s
with sh
areho
lde
rs, in a
dditio
n to the nor
mal ch
anne
ls of
shareholder commu
nication.
Our g
overnan
ce fram
ework is h
ea
ded by th
e Boa
rd, which d
ele
gates
ce
rt
ain man
age
ment a
nd overs
ight res
pon
sibil
ities to vari
ous
com
mit
tees to fu
rth
er IH
G’s purp
os
e, value
s and str
ategy
, while
con
duc
ting bu
sine
ss in a re
sp
onsi
ble ma
nne
r
. E
xecu
tive man
agem
ent
are res
pon
sibl
e for the imp
lem
ent
ation of s
trategy w
hich is d
elive
red
by the Gro
up’
s work
force
.
The B
oa
rd an
d its Prin
cip
al C
omm
itte
e
s
The B
oard i
s resp
ons
ible fo
r promoti
ng the lo
ng-
term sus
tain
abl
e
suc
ce
ss of th
e Group a
nd es
tab
lish
es it
s purp
ose, val
ues a
nd
strate
gy
. O
pe
ration
al mat
ters
, routine b
usin
es
s and info
rmatio
n
dis
clos
ure proc
edu
res are de
leg
ated by the B
oa
rd to Mana
gem
ent
Co
mmit
tee
s, with the exc
eptio
n of a numb
er of key dec
isio
ns and
mat
ters th
at are res
er
ved for th
e Bo
ard. The s
che
dul
e of mat
ters
rese
r
ved for th
e Bo
ard was reviewe
d at the D
ec
emb
er 20
21 B
oard
me
eting an
d is availab
le on o
ur webs
ite.
The B
oard i
s supp
or
ted by it
s four Prin
cipal C
om
mitte
es (Au
dit,
Nom
inatio
n, Remun
eratio
n and Re
sp
onsi
ble B
usin
es
s), all of which
con
sis
t of No
n-
E
xecutive D
irec
tors. T
hes
e co
mmit
tee
s ass
ist th
e
Bo
ard in ca
rry
ing out i
ts func
tion
s and in th
e oversig
ht of the de
liver
y
of the s
trategic o
bje
ctives i
t sets fo
r mana
gem
ent.
C
omm
itte
e Re
po
rt
s, inc
lud
ing in
form
atio
n on the
ir ac
tivi
tie
s durin
g 202
1,
ca
n be fou
nd on p
ag
es 9
5 to 125
.
Purs
uant to Se
ctio
n 172 of the C
omp
anie
s Act 20
0
6, the B
oard h
as a
dut
y to act in a way mo
st likely to p
romote the s
ucc
es
s of the C
omp
any
for the b
ene
i
t of its m
emb
ers, w
hile havin
g rega
rd to six add
itiona
l
facto
rs, inc
ludin
g the intere
sts o
f key stakeho
lde
rs. Th
e Bo
ard’s
Se
ction 17
2 state
ment d
es
cribin
g how st
akehol
der c
ons
ider
ations
are taken i
nto acc
ount is in
corp
orate
d in the d
esc
ription o
f the
activ
ities o
f the Bo
ard on p
age
s 90 a
nd 91
.
Furth
er d
eta
ils of key s
take
hol
der
s and e
ng
age
me
nt duri
ng 20
21 c
an b
e
foun
d on p
age
s 20 to 28
, 36, 3
9, 92
, 10
1, 107
, 10
8, 112 to 114
, 22
7 an
d 22
8.
The B
oard i
s also re
sp
onsi
ble for rev
iewing th
e mea
ns for th
e
work
force to rai
se co
nce
rns in c
on
ide
nce a
nd the re
por
ts a
risin
g
from its o
pe
ration (comm
only k
nown a
s whistl
ebl
owing) and it
reviewe
d con
id
ential d
iscl
osu
re chann
el rep
or
ts thro
ughou
t 202
1.
In ad
dition, a N
on
-
Exe
cutive Di
rector i
s nomi
nated to rep
res
ent the
Voice of the Em
ployee in B
oa
rd discu
ss
ions
. Se
e our Voice of th
e
Empl
oyee dis
clos
ure on pa
ge 10
1.
M
ore in
form
atio
n on our B
oa
rd and C
om
mit
tee
s is ava
ilab
le at
ww
w
.ihgplc.com/i
nv
estors
under Corpora
te g
overna
nce.
Gove
rn
an
c
e
88
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
B
o
a
rd
a
c
ti
v
iti
e
s
Ma
tt
ers t
he Boa
r
d di
scussed in 2
021
Board Meeting
s
The B
oard m
et for ei
ght sch
edul
ed m
eetin
gs durin
g the year.
Du
e to the ong
oing imp
act o
f the pan
dem
ic, Bo
ard me
etings
were co
ndu
cted by vi
deo c
onfere
nce
. The foll
owing t
able g
ives an
over
view of th
e regul
ar and s
tand
ing item
s dis
cus
sed a
nd de
cis
ions
mad
e. Th
e tabl
e overle
af det
ails the key mat
ter
s disc
uss
ed by the
Bo
ard in 202
1 an
d our Se
ctio
n 172 st
ateme
nt, inc
ludin
g informati
on
Regular and
standing it
ems
In ad
dition to key focu
s area
s outlin
ed on th
e followi
ng pag
es, th
e Bo
ard con
sid
ers a nu
mbe
r of regul
ar and s
tan
ding item
s at ea
ch me
eting:
Are
a of d
isc
us
s
ion
Discussion topic
and decisions made
Chair'
s matters
T
he Ch
air provi
ded a
n update o
n Bo
ard develo
pme
nts an
d me
eting pl
ans an
d his cur
rent area
s
of focu
s and e
ngag
eme
nt.
Chie
f Exe
cutive O
i
cer
's mat
ter
s
Th
e Chie
f Exe
cutive O
i
cer p
rovide
d an up
date of deve
lopm
ents w
ithin the b
usin
es
s.
Up
dates fro
m eac
h of the
Bo
ard C
om
mit
tee
s
The C
omm
itte
e Cha
irs rep
or
ted b
ack to the B
oard o
n mat
ters c
overed dur
ing the
ir me
etings
.
Det
ails o
f Com
mit
tee ac
tivitie
s during 2
02
1 can b
e found o
n pag
es 9
5 to 125.
Financial per
formance
Th
e Bo
ard rece
ived re
gular u
pdate
s from the C
hief F
inan
cial O

icer o
n rec
ent and c
urrent tra
ding,
incl
uding Rev
P
AR, o
pe
rating pro
it
, net syste
m size grow
th an
d cas
hl
ow
, and th
ese we
re com
pare
d
to com
petitor
s’ resu
lts. I
nternal p
roje
ction
s were co
mpare
d with th
e con
sen
sus of a
nalys
ts’ fore
cas
ts
to ens
ure that the C
omp
any’s pros
pe
cts we
re approp
riatel
y rel
ecte
d in market exp
ec
tatio
ns.
Co
rp
orate g
overn
anc
e
The B
oard re
cei
ved reg
ulator
y deve
lopm
ent up
dates f
rom the C
omp
any Sec
retar
y an
d Gen
eral
Co
unse
l, coveri
ng regul
ator
y chan
ges i
n areas s
uch a
s corp
orate re
por
ting, exe
cutive rem
unera
tion,
clim
ate chan
ge, diver
sit
y
, wo
rkfo
rce eng
age
ment
, huma
n rights, d
ata p
rotectio
n and sh
areh
olde
r bo
dy
voting guidelines
.
Cyb
erse
curity
The Bo
ard rec
eive
d regul
ar upd
ates on cy
ber a
ctivi
ty an
d inform
ation se
curit
y
, inclu
ding a de
tail
ed
pres
ent
ation from th
e Chie
f Co
mme
rcial an
d T
e
chno
log
y O
ice
r and th
e Chie
f Inform
ation
Se
curit
y O
ic
er
. The
se c
overed thre
ats an
d trend
s in the ho
spit
alit
y indu
str
y
, th
e Group’s key systems
and ri
sk app
etite as we
ll as ma
nagi
ng cybe
r risks i
n a remote e
nvironme
nt. Th
e Boa
rd also revi
ewed
the p
olici
es and a
ctio
ns taken to a
ddres
s thre
ats and m
itigate ris
ks.
Princi
pal ris
ks, interna
l control
s
and ri
sk man
age
ment sy
stems
The B
oard re
cei
ved reg
ular up
dates o
n prin
cipal a
nd em
erging ri
sks, inte
rnal c
ontrols
, risk m
anag
eme
nt
system
s, the G
roup’s risk app
etite, bu
sine
ss c
ontinu
ity a
nd the gl
obal i
nsura
nce p
rogram
me. C
ommit
tee
Cha
irs als
o del
ivered re
por
t
s on risk to
pic
s in relatio
n to the are
as of remi
t for thei
r resp
ecti
ve Com
mit
tees
.
The B
oard re
gards th
e man
age
ment of ri
sks in b
usin
es
s as fund
ame
ntal to it
s role an
d doe
s this by
ens
uring th
at appro
priate c
ontrols a
nd pro
ces
se
s are in pl
ace. T
he reg
ular m
onitorin
g of the G
roup’s risk
man
age
ment sys
tems al
lows the B
oard to en
sure th
at iss
ues th
at might oth
er
wis
e impa
ct the G
roup’s
repu
tation fo
r high st
and
ards of b
usin
es
s con
duct a
re avoided o
r mitigate
d as ap
propr
iate and th
at the
Group i
s po
sition
ed to re
spo
nd to unc
er
taint
y in an a
gile ma
nne
r
.
Inv
estor r
elations
The B
oard re
cei
ves a reg
ular rep
or
t outli
ning sh
are regi
ster move
ment
, relative s
hare pri
ce pe
r
forman
ce,
investor re
latio
ns acti
vitie
s and en
gag
eme
nt with sh
areho
lde
rs. T
he Bo
ard als
o con
sid
ered v
iews sh
ared
from the re
gular i
nvestor an
d anal
yst pe
rcep
tion stu
dies a
nd fee
dba
ck sur
veys as we
ll as in
divid
ual
me
etings w
ith investor
s.
abo
ut how st
akeho
lde
rs were co
nsi
dere
d. In b
oth tab
les
,
com
merci
ally se
nsi
tive inform
ation ha
s be
en exclud
ed. I
n severa
l
area
s, muc
h of the sub
st
antive prep
aratio
n work too
k plac
e within
the B
oard
’
s Co
mmit
tee
s and wa
s later c
on
irme
d by the Bo
ard or
the wh
ole B
oard at
tend
ed c
er
tain s
ec
tions of C
om
mitte
e me
eting
s.
Whe
re this was th
e ca
se, the di
scu
ssi
ons are tre
ated a
s having t
aken
pla
ce at B
oard leve
l.
89
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Bo
ard activ
ities
Key matte
rs di
sc
us
se
d in 20
21 an
d Se
cti
on 172 st
ate
men
t
Se
ction 17
2 of the C
omp
anie
s Act 20
06 re
quire
s a direc
tor of a co
mpany to ac
t in a way most l
ikely to promo
te the suc
ce
ss of th
at
com
pany for th
e ben
e
it of its m
emb
ers
, while h
aving reg
ard to six ad
dition
al fac
tors. T
hes
e are: the l
ong
-term c
ons
equ
enc
es of a d
eci
sion;
the intere
sts o
f its em
ployee
s; bu
sine
ss rel
ation
ship
s with sup
plie
rs, cu
stome
rs an
d other
s; its im
pac
t on the c
ommun
ity an
d environ
ment
;
the de
sirab
ilit
y of maint
ainin
g high st
and
ards of bu
sine
ss c
ond
uct
; and th
e nee
d to act fa
irly be
twe
en me
mbe
rs of the c
omp
any
. T
he ta
ble
be
low summ
aris
es so
me of th
e main m
atter
s dea
lt with by the B
oard d
uring the ye
ar and h
ow it took th
e Se
ction 17
2 factor
s into acc
ount
.
The re
levant Se
ctio
n 172 fac
tors are id
enti
ie
d in the key at the bo
ttom of th
e pag
e.
Finance and perfor
mance
Three-y
ear inancial plan
and
competitor
performance
The B
oa
rd app
roved t
he Gro
up’s thre
e-ye
ar 
ina
nci
al
pla
n and m
oni
tore
d per
fo
rma
nce i
n light o
f cha
nge
s
to ec
ono
mic a
nd in
dus
try g
row
th fore
ca
st
s durin
g
t
h
e
y
e
a
r.
A
F
In ap
provi
ng the G
rou
p’s three
-yea
r in
an
cial p
lan
, the B
oard c
on
sid
ere
d the a
ss
umpti
ons a
nd ri
sks
inh
eren
t in the p
lan i
ncl
udin
g the o
utlo
ok fo
r sign
ings a
nd b
ad de
bt ris
k, e
xpe
cte
d ca
sh
low
s and
pro
spe
ct
s for th
e Sys
tem Fund
. The th
ree
-ye
ar pl
an for th
e bu
sin
es
s put
s its m
ed
ium
-term t
arg
ets
into a qu
anti
ia
ble f
orm, a
nd mo
nito
ring p
rogre
ss a
gai
nst t
he pl
an prov
ide
s a me
cha
nis
m for th
e
Bo
ard to ba
lan
ce th
e inte
rest
s of st
akeh
ol
der
s suc
h as ho
tel own
er
s, em
ploye
es a
nd le
nd
ers w
ith
tho
se of s
hare
ho
lde
rs
. It al
so for
ms the b
as
is on w
hic
h targ
ets fo
r exec
utive re
mun
erati
on are s
et.
The B
oa
rd als
o rec
ei
ved pr
ese
nt
ation
s on th
e Gro
up’s main c
omp
etito
rs an
d the
ir pe
r
form
anc
e.
By exa
mini
ng the p
er
for
man
ce of th
e Gro
up’s com
pet
itors
, the B
oa
rd can a
ss
es
s the G
rou
p’s
pe
rfo
rma
nce i
n co
ntext a
nd dr
aw out ar
eas w
he
re lon
ger-ter
m improv
eme
nts c
an b
e mad
e.
Financial stat
ements
The B
oa
rd co
nsi
der
ed th
e full a
nd ha
lf yea
r
res
ults s
tat
eme
nts
, the go
ing c
onc
er
n and vi
abi
lit
y
st
atem
ent
s mad
e in the A
nnu
al Re
por
t an
d
whe
the
r the An
nua
l Rep
or
t was f
air
, bal
anc
ed
and understandable.
E
F
Thro
ugh th
e tim
ely p
ubli
cat
ion of a
cc
urate an
d ba
lan
ce
d in
anc
ial s
tate
me
nts, t
he Bo
ard e
nsu
res
that s
har
eho
lde
rs an
d oth
er st
akeh
old
ers h
ave eq
ual a
cc
es
s to imp
or
ta
nt info
rmati
on an
d the
busine
ss maintains its reput
ation for high r
epor
ting standa
rds.
Dividend
The B
oa
rd co
nsi
der
ed di
vid
end p
ayme
nts a
nd
co
ncl
ude
d that i
t woul
d not b
e app
rop
riate to p
ay
a divi
de
nd dur
ing 20
2
1.
A
B
C
E
F
The B
oa
rd wei
ghe
d vario
us s
take
hol
der i
ntere
st
s whe
n con
si
deri
ng div
ide
nd p
ayme
nts a
s well a
s the
ne
ed to ex
hibi
t high s
tan
dard
s of bu
sin
es
s co
ndu
ct. I
t co
nsi
der
ed th
e Grou
p’s ina
nci
al pe
r
form
anc
e,
mar
ket expe
ct
atio
ns, t
he inte
res
ts of s
hare
ho
lde
rs an
d len
de
rs as w
ell a
s the p
osi
tion o
f broa
de
r
st
akeho
ld
ers
, incl
udi
ng em
ploye
es
, supp
lie
rs an
d hote
l own
ers
. It c
onc
lud
ed th
at it wo
uld no
t be
app
rop
riate fo
r the C
omp
any to pay a d
ivid
en
d durin
g the ye
ar
, noti
ng tha
t it wou
ld co
nsi
de
r futur
e
divi
de
nds o
nc
e vis
ibili
ty o
f the p
ace a
nd sc
al
e of ma
rket rec
over
y im
prove
s.
Sub
se
que
ntly, the Bo
ard is p
rop
osi
ng a 
inal d
ivi
den
d of 8
5.9
¢ pe
r ordi
nar
y s
hare in re
sp
ec
t of 20
21
,
payab
le in M
ay 20
22 s
ubj
ect to s
ha
reho
lde
r ap
proval at t
he 20
2
2 AGM
.
Strategic an
d operationa
l matters
Brand integ
rity
The B
oa
rd co
nsi
der
ed th
e prog
res
s of it
s stra
tegi
c
init
iative to i
mprove th
e qu
alit
y an
d con
sis
ten
cy
of the H
ol
iday In
n and C
rown
e Pla
za e
st
ates i
n the
Ame
ric
as an
d EM
E
AA
.
The B
oa
rd fur
th
er en
dor
se
d on
goin
g eo
rt
s to
enh
anc
e the p
os
itio
ning o
f the H
oli
day Inn b
ran
d
in the U
S.
A
C
The B
oa
rd foc
use
d on m
aint
ain
ing th
e integ
rit
y of the G
rou
p’s brand
s to en
sure th
at gu
est
s ca
n be
co
n
ide
nt in the
ir exp
ec
tat
ion
s whe
n st
aying in a
n IH
G hote
l. In a
ss
es
sin
g the in
itia
tive to en
gag
e with
the ow
ner
s of c
er
tai
n Crown
e Pla
za a
nd H
oli
day Inn h
otel
s that re
qu
ired i
mprove
me
nts to qu
alit
y of
se
rv
ice a
nd pro
pe
rt
y c
ond
itio
n, the B
oa
rd weig
hed t
he sh
or
t-term i
mpa
ct on s
yste
m size a
gai
nst th
e
po
siti
ve lon
ger-ter
m be
ne
it
s of ma
inta
inin
g bran
d st
and
ards i
n the bro
ad
er e
sta
te for ho
tel own
er
s
and guests.
As p
ar
t of the B
oa
rd’s over
sight o
f bra
nd str
ateg
y and re
co
gni
sin
g the ne
e
d to keep g
ues
t
exp
erie
nc
es an
d hote
l own
er retu
rns re
levan
t and at
tra
ctiv
e, the B
oar
d con
sid
ere
d and e
nd
ors
ed
ong
oin
g eo
rt
s for c
ontin
uou
s imp
rovem
ent in re
lati
on to var
iou
s asp
ec
ts of t
he Ho
lid
ay Inn b
rand
,
tak
ing i
nto co
nsi
der
atio
n the im
pac
t on gu
es
ts fro
m an imp
roved ex
pe
rien
ce a
nd the i
mprove
d
ec
ono
mic
s tha
t woul
d low t
hrou
gh to hote
l own
ers
. Se
e pa
ges 1
0 to 13 for a d
es
crip
tion o
f the
bu
sine
s
s mod
el an
d pa
ge
s 19 to 2
2 for ho
w the G
roup e
nga
ge
s with it
s hote
l own
ers a
nd gu
es
ts.
Brand portfolio
The B
oa
rd co
nsi
der
ed th
e opp
or
tun
ity to a
dd a
co
lle
ctio
n bra
nd to the G
rou
p’s Luxur
y & Life
st
yl
e
po
rt
fol
io an
d it app
roved t
he la
unch o
f the V
ign
ette
Collection br
and.
A
C
D
In ap
provi
ng the n
ew br
and l
aunc
h, th
e Bo
ard ha
d reg
ard for va
riou
s st
akeho
ld
ers a
nd co
ns
ide
ratio
ns
.
The B
oa
rd rec
og
nis
ed ho
tel own
er
s’ de
sire fo
r a co
lle
ctio
n bra
nd tha
t woul
d give th
em ac
ce
ss to
IH
G’s dis
trib
utio
n and l
oyalt
y pro
gram
me
s, whi
le all
owin
g light-to
uch b
ran
ding t
hat wo
uld ret
ain
the in
div
idu
alit
y of th
eir p
rop
er
tie
s with re
lati
vely l
ow ca
pit
al req
uire
men
ts an
d att
ract
ive ec
on
omic
s.
The B
oa
rd als
o ha
d reg
ard for s
hare
ho
lde
rs in re
lati
on to th
e lon
g-te
rm imp
ac
t on sys
tem s
ize an
d the
lowe
r envi
ronm
ent
al imp
ac
t of co
nvers
ion p
rop
er
tie
s. Th
e Bo
ard al
so c
ons
ide
re
d the ap
pe
al of h
aving
mor
e diver
se s
ty
les o
f prop
er
t
y
, whic
h woul
d inc
rea
se gu
est
s’ op
tion
s whe
n bo
ok
ing wi
th IH
G an
d
enh
anc
e the I
H
G Reward
s pro
gram
me’s valu
e. For mo
re info
rmat
ion o
n the G
roup’s pri
orit
y to ‘b
uild
love
d and tr
uste
d br
and
s’
, s
ee p
ag
es 17 an
d 18 an
d fur
th
er info
rmat
ion o
n its e
nviron
me
ntal fo
otp
rint
is avai
lab
le on p
age
s 29 to 3
5.
Loy
alty Strategy
The B
oa
rd co
nsi
der
ed an
d app
roved t
he rel
aun
ch
of IH
G Rew
ards
.
A
C
In ap
provi
ng ma
teria
l cha
nge
s to the I
HG R
eward
s pro
gram
me, th
e Bo
ard co
nsi
de
red th
e co
mpe
titive
po
siti
on of th
e pro
gram
me, it
s abi
lit
y to drive rev
enu
e for own
er
s and a
cc
ele
rate sys
tem s
ize grow
th
,
the e
nha
nce
d val
ue pro
po
siti
on for m
em
ber
s and g
ue
sts
, and th
e imp
ac
t of the c
han
ges o
n own
ers
’
co
st ba
se a
nd op
era
tion
s.
B
o
a
rd a
c
ti
vi
tie
s
c
o
nti
nu
e
d
Ke
y to conside
rations
A
Long term
C
Suppliers
and cust
omers
E
High standards
B
Emp
loye
e
s
D
Com
munit
y and e
nvironme
nt
F
Act fairly b
et
wee
n memb
er
s
Gove
rn
an
c
e
90
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Strategic an
d operationa
l matters
continued
T
echnolo
gy
The B
oa
rd co
nsi
der
ed an
d app
roved ev
olvi
ng the
Gro
up’s relati
ons
hip w
ith the m
ain s
upp
lie
r in res
pe
ct
of the G
rou
p’s Gues
t Re
ser
vat
ion S
yste
m (GRS).
C
The B
oa
rd co
nsi
der
ed an
d app
roved ev
olvi
ng the G
rou
p’s relatio
ns
hip wi
th its s
upp
lie
r from a jo
int
proj
ec
t deve
lop
men
t mod
el to a p
rodu
ct de
velo
pm
ent an
d sup
po
rt m
od
el. I
n mak
ing it
s de
cis
ion
,
the B
oa
rd care
full
y co
nsi
dere
d the r
isks a
ss
oc
iate
d with t
hes
e ch
ang
es an
d the
ir imp
ac
t on the
sup
pli
er
, the c
omp
etit
ive ad
vant
age
s of revi
se
d fun
ctio
nal
it
y
, a
nd th
e cos
t imp
lic
atio
ns of th
e ch
ange
.
De
tail
s of th
e tech
nol
og
y-re
late
d ris
ks to the b
usi
nes
s are g
iven o
n pag
e 4
5.
Supply cha
in and
procuremen
t
The B
oa
rd rec
eive
d an ove
r
view o
f the st
rateg
y
and a
ppro
ac
h to cor
por
ate and h
otel p
roc
urem
ent
and endorsed t
he st
rategy
and a
pproach.
C
D
E
In c
ons
ide
ring t
he pro
cure
me
nt stra
tegy a
nd ap
pro
ach
, the B
oard p
aid p
ar
ticu
lar a
tte
ntion to t
he
init
iative
s tha
t leve
rage o
ur sys
tem
-wi
de bu
ying p
owe
r and s
imp
lif
y the p
rocu
rem
ent pro
gra
mme
to lowe
r co
sts fo
r own
ers w
hile m
aint
ain
ing a hi
gh-
qu
alit
y gu
es
t expe
rie
nc
e, sup
po
rti
ng su
sta
ina
bili
ty
with
in the s
upp
ly ch
ain, a
nd en
sur
ing th
at sup
pli
ers o
pe
rate in a re
sp
ons
ibl
e man
ner. Furth
er
info
rmati
on on t
he Gro
up’s res
pon
sib
le pro
cu
reme
nt pro
gram
me i
s incl
ude
d on p
ag
e 39.
Gr
owt
h Str
ate
gy in Re
gi
ons –
Gr
eate
r Ch
in
a, EM
EA
A a
nd Am
eri
ca
s
The B
oa
rd rec
eive
d in
-
dep
th reg
ion
al up
date
s from
the C
EOs of e
ac
h of the G
rou
p’s three re
gion
s, an
d
provi
de
d over
sight w
ith re
gard to th
e Gro
up’s grow
th
stra
tegy ove
r bo
th the s
hor
t an
d lon
g term
.
A
C
The B
oa
rd rec
eive
d re
gula
r upd
ate
s from th
e Grou
p’s ope
ratin
g regi
ons
, cove
ring th
e Gro
up’s
po
siti
onin
g and p
er
for
man
ce in re
leva
nt mar
kets, u
nde
rly
ing grow
th d
river
s and t
he co
mp
etiti
ve
envi
ronm
ent
, and fu
rt
her fo
cu
se
d on ac
tion
s to ac
ce
ler
ate the G
roup’s grow
th
. In it
s dis
cus
sio
ns,
the B
oa
rd pai
d par
tic
ula
r atte
ntio
n to criti
ca
l owne
r co
nsi
der
atio
ns in re
lati
on to grow
th, s
uch a
s
inancing
and cost a
nd supply
constra
ints.
Board gov
e
rnance
Director
succession
The B
oa
rd pro
gres
se
d su
cc
es
sio
n pla
nnin
g in rel
atio
n
to the C
hai
r of the B
oa
rd and a
ppo
inte
d a new S
eni
or
Ind
ep
en
dent N
on
-
E
xecu
tive Di
rec
tor (SI
D) and
Non-E
xecutiv
e Dir
ector f
or wor
kforce engagement.
A
B
E
Whe
n pro
gre
ssi
ng B
oard s
ucc
es
si
on pl
ans
, the B
oar
d bal
anc
ed th
e de
sire to m
aint
ain hi
gh st
and
ards
by co
mply
ing w
ith the U
K C
orp
orate G
ove
rnan
ce C
od
e with th
e sh
or
t-term n
ee
d to kee
p Non
-
E
xecu
tive
Dire
cto
rs in p
os
itio
n for lo
nge
r tha
n prefe
rre
d in ord
er to ma
inta
in exp
er
tis
e and c
ont
inuit
y. The Bo
ard
als
o ha
d con
sid
era
tion fo
r the i
mpo
rt
an
ce of e
mpl
oyee fe
ed
bac
k and c
on
sid
ere
d and a
pprove
d the
tran
siti
on of re
sp
ons
ibi
litie
s in re
latio
n to the N
on
-
Exe
cuti
ve Dir
ecto
r with re
sp
on
sib
ilit
y for wo
rk
force
eng
ag
eme
nt, t
aki
ng into a
cc
ount N
on
-
Exe
cuti
ve Dire
cto
r time c
om
mitm
ent
s and b
road
er B
oa
rd
succession plans.
Peo
pl
e & Pla
net
O
ic
e rel
oc
ati
on an
d new w
ays of work
ing
The B
oa
rd revie
wed th
e le
as
e arran
ge
men
ts for th
e
Gro
up’s main c
orp
orate o
i
ce l
oc
ation
s in th
e US
and t
he U
K and d
eci
de
d to relo
ca
te its U
K co
rpo
rate
o
ice to a n
ew lo
ca
tion in 2
02
2.
The B
oa
rd fur
th
er co
ns
ide
red a
nd en
dor
se
d new
hybri
d ways of wo
rkin
g.
A
B
D
E
The B
oa
rd co
nsi
der
ed var
iou
s relo
ca
tion o
ptio
ns for t
he Gro
up’s glo
bal h
ea
d oi
ce in t
he U
K.
In ma
kin
g the d
eci
sio
n to le
ase a n
ew o
ic
e in Wi
nds
or, the Bo
ard ha
d reg
ard for th
e imp
ac
t of the
move o
n emp
loyee
s, th
e co
mmun
ity a
nd th
e envi
ronm
ent. A d
es
cri
ption o
f the B
oar
d’s acti
vit
y an
d
co
nsi
der
atio
n of Se
ctio
n 172 fa
cto
rs is i
nclu
de
d in the c
as
e stu
dy on p
ag
e 92.
In c
ons
ide
ring a
nd e
ndo
rsi
ng a res
hap
e
d, le
xibl
e app
roa
ch to wor
king fo
r the G
roup’s co
rp
orate
o
ice
s as C
ovi
d-19
-
rel
ated re
str
icti
ons e
as
ed, th
e Bo
ard h
ad co
ns
ide
ratio
n for th
e imp
act o
n
emp
loye
es an
d the
ir wel
lne
ss a
s well a
s e
ici
enc
y
, c
ultu
re and te
amwo
rk. T
he Bo
ard we
igh
ed th
es
e
aga
ins
t the c
ost s
avin
gs fro
m a sm
alle
r rea
l est
ate fo
otpr
int, th
e e
ici
enc
y availa
ble f
rom uti
lisi
ng
mor
e mod
ern c
omm
unic
ati
ons te
chn
ol
ogy, and the a
bili
ty to at
tra
ct n
ew and m
ore di
vers
e em
ploye
es
at
trac
ted by 
lexib
le wo
rkin
g.
St
a sh
or
ta
ge
s an
d tal
ent r
ete
ntio
n
The B
oa
rd co
nsi
der
ed re
por
t
s of st
a sh
or
ta
ge
s in
the h
osp
ita
lit
y ind
ust
ry i
n vario
us re
gion
s foll
owin
g
the e
asi
ng of l
ockd
own. T
he C
EO outli
ne
d the im
pac
t
this c
oul
d have o
n hote
l owne
rs an
d leve
ls of g
ues
t
sat
isf
acti
on if p
rolo
nge
d an
d the ne
e
d to focu
s
act
ivit
y on t
ale
nt rete
ntio
n in a co
mpe
titiv
e market
.
B
C
The B
oa
rd co
nsi
der
ed st
a s
hor
t
age
s in th
e broa
de
r hos
pit
ali
ty in
dus
tr
y and th
e imp
ac
t that th
is
co
uld h
ave on em
ploye
es in o
wne
d and m
an
age
d le
as
e hote
ls, a
s well a
s the wi
de
r man
age
d an
d
franchised estate.
In te
rms of t
ale
nt rete
ntio
n amo
ngs
t the G
roup’s co
rpo
rate e
mpl
oyee
s, the B
oa
rd note
d the in
cre
as
ed
co
mpe
titio
n in the j
ob m
arket an
d revie
wed it
s me
asu
res o
f sta
 eng
ag
eme
nt an
d well
bei
ng an
d level
s
of st
a tu
rnove
r
. I
n co
nsi
der
ing th
e emp
loym
ent m
arket
, the B
oard to
ok in
to acc
oun
t the n
ee
d to
bal
anc
e ap
prop
riate
ly rewa
rding a
nd mo
tivati
ng it
s emp
loyee
s whi
le dri
ving p
ro
ita
bili
ty, growt
h and
e
ici
enc
y throu
gh the b
us
ine
ss o
n be
half o
f sha
reh
old
ers
. Se
e pa
ge 5
3 for de
tai
ls of th
e emp
loye
e
eng
ag
eme
nt sc
ore K
PI an
d pa
ge 4
4 for h
ow ris
ks as
so
ciate
d wit
h tal
ent re
tentio
n are m
ana
ge
d.
Ou
r pe
op
le an
d cu
ltur
e
The Board
regularl
y considered w
orkplace cu
lture
,
tak
ing i
nto ac
cou
nt the fe
ed
bac
k prov
ide
d from th
e
Voice of t
he Em
ploye
e eng
ag
eme
nt pl
an an
d acti
ons
take
n to sup
po
rt e
mpl
oyee
s. Th
e Bo
ard rev
iewe
d
emp
loye
e com
muni
cat
ion
s and we
llb
ein
g me
asur
es
and f
ur
the
r had ove
rs
ight of th
e Gro
up’s DE
&I ini
tiative
s.
B
D
The B
oa
rd as
se
ss
ed a
nd mo
nitor
ed cu
lture th
roug
hou
t the ye
ar
, rec
eiv
ing re
gula
r upd
ate
s from th
e
CEO an
d from t
he Voice o
f the Em
ploye
e en
gag
em
ent pl
an. T
he Voic
e of the E
mpl
oyee e
nga
gem
ent
pla
n ha
s playe
d a key role in i
nform
ing th
e Bo
ard re
gard
ing em
ploye
es
’ intere
st
s and s
upp
lyin
g ins
ight
s
for th
e Bo
ard to un
der
st
and th
e imp
act o
f its d
ec
isi
ons o
n emp
loye
es. T
he B
oa
rd fur
the
r co
nsi
dere
d
stra
tegi
c upd
ates f
rom ma
nag
em
ent in re
lati
on to t
ale
nt and l
ea
der
shi
p deve
lop
me
nt and l
ear
ning
,
cha
mpi
onin
g a dive
rse
, equ
ita
ble a
nd in
clu
sive c
ulture
, and fu
ture ways o
f work
ing. I
nfor
matio
n
on th
e Voice of th
e Emp
loye
e eng
age
me
nt pl
an duri
ng th
e year i
s set o
ut on p
age 1
01 a
nd fu
rth
er
info
rmati
on in re
lati
on to em
ploye
e an
d work
pla
ce cu
lture i
s inc
lud
ed on p
ag
es 24
, 25 an
d 37
.
Dec
arbonis
ation strategy
The B
oa
rd app
roved t
he Gro
up’s upg
rad
ed
sci
en
ce
-b
as
ed t
arge
t (SBT
) fro
m a 2.0
°C to 1.
5°
C
alig
ne
d targ
et an
d fur
the
r app
roved t
he G
roup’s
co
mmitm
ent to t
he ‘
UN R
ace to Ze
ro’
.
A
C
D
F
In ap
provi
ng the e
nh
anc
ed S
BT
, the B
oa
rd took i
nto co
nsi
de
ratio
n the la
tes
t in cli
mate s
cie
nce a
nd
the l
ong
-ter
m imp
act o
f clim
ate ch
ang
e on th
e enviro
nme
nt an
d the G
roup’s bu
sin
es
s, the ex
pe
ct
atio
ns
of inve
stor
s and o
the
r sta
keho
lde
rs, l
ever
s availa
ble to t
he G
roup to ac
hieve t
he SB
T
, and th
e imp
act
to own
ers i
n achi
evin
g hote
l-
level t
arg
ets
.
S
ee p
age
s 20 to 28
, 39, 9
2, 10
1, 107, 108, 112 to 114
, 2
27 an
d 2
28 for i
nform
atio
n abo
ut how w
e have en
gag
ed w
ith ou
r sta
keho
lde
rs in 2
02
1. Fur
the
r det
ails
of ou
r rega
rd for th
e envi
ronm
ent are o
n pa
ge
s 15, 2
9 to 35 an
d 10
0 to 10
1.
91
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Bo
ard activ
ities
B
o
a
rd a
c
ti
vi
tie
s
c
o
nti
nu
e
d
Our shar
eholders and in
vest
ors
Shareholders and in
vestors
engagement
Fundame
ntal to I
HG
’s ability to a
cce
ss c
apit
al ma
rkets, and s
ust
ain it
s truste
d reput
ation a
nd lon
g-te
rm suc
ce
ss, i
s its abi
lity
to maint
ain stron
g relatio
nshi
ps with it
s sha
reho
lder
s and in
stituti
onal inve
stors
.
Discussion poin
ts in
2021
Engage
ment
Outcom
es
•
The co
ntinu
ed im
pa
ct of th
e pan
de
mic
on th
e hos
pit
ali
ty s
ec
tor an
d IH
G whic
h
in
lue
nc
e IH
G’s trad
ing p
er
form
anc
e,
i
nan
cial re
su
lts an
d ca
pit
al
alloc
ation strateg
y
•
Executive
remuneration policies including
the p
otent
ial u
se of di
sc
retio
n; alig
nme
nt
with wo
rk
forc
e pay an
d tal
ent re
tenti
on
•
Conc
ern
s ab
out c
lima
te cha
nge a
nd wi
der
sustainability issues
•
DE&I
, st
a
ing sh
or
ta
ge
s and l
abo
ur pr
acti
ce
s
•
Regul
ar roa
dsh
ow inve
stor m
ee
ting
s and
par
ti
cip
ation a
t inves
tor c
onfe
renc
es by
E
xecu
tive Di
rec
tors
, Sen
ior L
ead
er
ship a
nd
the I
nvesto
r Rel
atio
ns te
am
•
Cons
ult
atio
ns b
etw
een t
he Ch
air o
f the
Remun
eratio
n Comm
itte
e and insti
tutiona
l
inves
tor
s and p
roxy vote a
dvi
so
rs
•
Meet
ings w
ith th
e Cha
ir
, Inves
tor Re
lati
ons
,
IH
G’s Ch
ief S
ust
ain
abil
ity O

ic
er an
d
ins
titut
ion
al inve
stor
s to dis
cus
s gove
rna
nce
,
sus
ta
inab
ilit
y an
d work
forc
e pr
acti
ce
s
•
W
ritten and electr
onic corr
espondence,
inc
ludi
ng qu
es
tion
s rec
eive
d at th
e AGM
,
on a ra
nge of to
pic
s rel
ate
d to ESG
•
Strong i
nvesto
r co
ni
de
nce i
n IH
G’s
per
formance, long-term viability and
leadership as
demonstrat
ed thr
ough
fee
db
ack re
ce
ive
d and a
cros
s AGM re
su
lts
•
Parti
cip
atio
n in CO
P
26, jo
inin
g Rac
e to Zero
and deeper understandin
g of sha
reholder
and i
nvesto
r foc
us are
as re
late
d to ES
G and
stakeh
older engagemen
t
•
Dee
pe
ned c
om
mitm
ent to D
E&I
, inc
lud
ing
a refre
sh of I
H
G’s pol
icy an
d fur
the
r
app
oin
tmen
ts to th
e Bo
ard
Se
e al
so a de
sc
ripti
on of o
ur div
ide
nd p
olic
y on pa
ge 13
, our K
PIs o
n pa
ge 50 to 5
3, key ma
tte
rs di
scu
ss
ed by th
e Bo
ard o
n pag
es 9
0 an
d 91 an
d
eng
ag
eme
nt wit
h sha
reho
ld
ers re
lati
ng to E
xecu
tive D
irec
tor re
mun
erati
on on p
ag
es 107, 113 and 114
.
Visit
ww
w
.ihgplc.com/i
nv
estors
for
further in
format
ion.
Duri
ng 202
1, IH
G co
ntinue
d its o
pen d
ialo
gue with s
hare
hold
ers a
nd
investor
s, and c
ond
ucte
d its an
nual pro
gramm
e of investo
r relatio
ns
activ
ities
, with sup
por
t fro
m its broker
s and a
dvis
ers
. The B
oard
rec
eived re
gula
r upda
tes and c
ons
ide
red fee
db
ack as o
utline
d
on pa
ge 8
9. In addi
tion, ou
r Regi
strar an
d Ame
rican D
es
po
sita
ry
Receipts
(ADR) pr
ogramme
custodi
ans ha
ve s
upported sharehold
ers
and AD
R ho
lde
rs with th
eir que
ries
.
Co
mmit
tee C
hairs a
nd the S
enio
r Inde
pe
nde
nt Dire
ctor are availa
ble
for sh
areho
lde
rs if they h
ave conc
erns t
hey wis
h to discu
ss
. An outli
ne
of the e
ngag
eme
nt with sh
areh
olde
rs in rel
ation to E
xecu
tive
Remun
eratio
n durin
g 202
1 can b
e foun
d on pa
ges 1
07
, 113 and 114
.
Ann
ual G
en
era
l Me
etin
g (AGM)
The 2
02
1 AGM was a
gain he
ld in c
ons
traine
d circum
sta
nce
s in
com
plian
ce wi
th UK C
ovid-19 m
ea
sures
. We were enc
oura
ged
that ou
r retail s
hareh
old
ers e
ngag
ed wi
th the AGM
, liste
ned in a
nd
subm
itte
d que
stion
s, whi
ch we were ab
le to addre
ss
. We continu
e
to evaluate how o
ur AGM on Friday 6 M
ay 202
2 will b
e hel
d given the
evolvin
g nature of th
e pand
emic
. The no
tice of m
eetin
g will be s
ent
to share
hol
der
s and be avail
abl
e on our we
bsite in d
ue co
urse
.
Visit
ww
w
.ihgplc.com/i
nv
estors
under Sha
reholder cent
re.
Boar
d o
v
ersi
gh
t o
f IHG’
s
Global Head oi
ce r
elocat
ion
Even before C
ovid
-19 and the e
nforce
d cha
nge
s to working
remote
ly
, th
e Exe
cutive C
ommi
tte
e, with overs
ight from th
e
Bo
ard, had b
ee
n loo
king at evo
lving wo
rking p
ractic
es a
nd the
suit
abilit
y of th
e Group’s oi
ces to s
uppo
rt c
oll
abor
ative workin
g,
our str
ategic p
rioritie
s and c
ulture. T
he imp
endi
ng expir
y of the
lea
se for th
e Co
mpany
’s global h
ead o
i
ce als
o promp
ted the s
earch
for a new l
oc
ation. T
he Bo
ard was c
los
ely en
gag
ed in th
e proje
ct
and it wa
s a regul
ar Bo
ard me
eting a
gend
a item in c
onjun
ction
with dis
cus
sio
ns on e
mploye
es an
d culture.
As pa
rt of th
e se
arch pro
ces
s, a p
ostc
ode an
alys
is was un
der
ta
ken to
ens
ure there wo
uld be m
inimal d
iere
nce
s in co
mmutin
g time
s for
mos
t emp
loyees
. Co
nsi
derati
on was al
so give
n to public t
ransp
or
t
links, l
oc
al ame
nities a
nd ac
ce
ss for di
sab
le
d and wh
eel
chai
r use
rs.
The B
oard c
ons
ide
red vario
us opti
ons for a
lternati
ve oic
e
arrang
eme
nts
. As well a
s its foc
us on th
e impa
ct on e
mployee
s,
the B
oard too
k into acc
ount th
e environm
ent
al impli
catio
ns of the
move, notin
g the opp
or
tunit
y for th
e new pre
mise
s to be de
sign
ed
and con
igured in a sustainable and energy-e
icient manner.
The B
oard al
so s
crutini
se
d the i
nanc
ial imp
act of th
e move.
In Ju
ne 202
1, foll
owing th
e Boa
rd’s cons
ide
ration an
d app
roval of
man
age
ment
’s recom
men
datio
n, the Gro
up anno
unce
d that i
ts
glob
al he
ad o
ice wo
uld move to W
inds
or durin
g 202
2.
An en
gage
men
t progra
mme ha
s kept emp
loyee
s informe
d and
involved th
rough e
lec
tronic ne
wslet
ter
s, a de
dicate
d intran
et site
(incl
uding FA
Qs) and e
mploye
e fee
dbac
k sur
veys loo
king at
workp
lac
e culture an
d hybrid wo
rking.
In ad
dition, a
s par
t of th
e prep
aration fo
r the move, the exi
sting
o
ice s
pac
e at De
nham wa
s reco
n
igured to gi
ve a tas
te of the
future with t
he introdu
ctio
n of hot de
ski
ng ‘neighb
ourh
ood
s’
,
more c
olla
borati
ve spac
es a
nd the rem
oval of execu
tive oi
ce
s,
incl
uding th
at of the C
EO.
The B
oard w
ill conti
nue to mon
itor and ove
rse
e the move a
s it
progre
ss
es du
ring 20
22
, with a pa
rtic
ular fo
cus o
n the imp
act
on em
ployee
s and c
omp
any culture.
Gove
rn
an
c
e
92
IH
G
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Dir
e
ct
o
r ap
pointments and
induction
C
hair
su
cc
e
s
si
on
Appoin
tment p
rocess
In antic
ipatio
n of Patric
k Ce
sc
au’s retirement du
ring 20
22
, on
att
ainm
ent of nin
e years o
n the B
oard, the B
oa
rd initiate
d a full,
rigoro
us and tr
ansp
arent s
earch p
roce
ss at t
he en
d of 2020, l
ed
by Dale M
orri
son, a
s the Se
nior I
nde
pen
dent D
irec
tor (SI
D) and
a Se
arch Co
mmit
tee c
omp
rising D
ale a
nd the C
omm
itte
e Cha
irs.
Followin
g a com
petitive te
nde
r proc
es
s, Rus
sel
l Reynol
ds was
app
ointed to a
ssi
st the S
earch C
om
mitte
e and B
oard in i
denti
fy
ing
a diver
se lis
t of pote
ntial c
andid
ates with th
e expe
rien
ce and
pe
rso
nal qua
litie
s to bec
ome C
hair.
The S
earc
h Com
mit
tee prep
ared a c
an
didate pro
il
e identi
fy
ing
the ke
y competencies
, characteristics and experience required
for the rol
e of Ch
air
. Russ
ell Reyn
old
s also h
ad det
aile
d dis
cus
sio
ns
with all B
oard m
emb
ers to s
eek th
eir vi
ews on B
oard dy
namic
s
and cu
lture and th
e key strategic c
halle
nge
s faci
ng the G
roup.
A full Ch
air sp
ec
ii
catio
n was the
n prep
ared by Rus
se
ll Reyno
lds
and s
hared w
ith the ful
l Boa
rd for com
ment a
nd inp
ut.
Key comp
etenc
ies in
clud
ed: exp
erie
nce a
s a Cha
ir
, str
ategic
orie
ntatio
n and vi
sion, b
ringin
g a glob
al pe
rsp
ecti
ve, a coll
abo
rative
and in
clus
ive pe
rson
al st
yle a
s well as a g
oo
d unde
rst
andin
g of
the co
rpo
rate governa
nce e
nvironm
ent.
The S
earc
h Com
mit
tee and th
e Bo
ard were co
nce
rne
d to ens
ure
that dive
rsit
y in it
s broa
des
t sen
se was t
aken into co
nsi
derati
on
in the rol
e pro
ile an
d the ca
ndid
ates pre
sente
d for co
nsi
derati
on.
A lon
g list of c
andi
dates w
hich h
ad be
en c
ompil
ed by
Rus
sell Rey
nold
s was reviewe
d an
d disc
uss
ed by the S
earc
h
Co
mmit
tee, an
d a sho
rte
r list of c
and
idates w
as the
n inter
viewe
d
by Russ
ell Reyn
old
s, the S
ID an
d the Ge
ner
al Co
unse
l and
Co
mpany Se
cret
ar
y togeth
er
, and the C
EO. Rel
ectio
ns from th
es
e
me
etings we
re sha
red with th
e Sea
rch Co
mmit
tee an
d a sho
rt-li
st
of four c
andi
dates wa
s then in
ter
viewed by th
e remai
ning
mem
ber
s of the S
earch C
omm
itte
e.
T
wo of th
e can
didate
s were se
lec
ted to me
et with th
e Cha
ir and
for fur
the
r me
etings w
ith the C
EO and SI
D, before the p
referre
d
can
didate m
et with th
e remain
ing E
xecuti
ve and No
n-
E
xecuti
ve
mem
ber
s of the B
oard. T
he prefe
rred c
andi
date als
o met wi
th
the C
omp
any’s extern
al Audito
r
, P
wC
.
Se
arch Co
mmit
tee m
eetin
gs were at
ten
ded by th
e CEO, the Ge
neral
Co
unse
l and C
omp
any Se
creta
ry
, the C
hief Hu
man Re
sourc
es
O
ic
er and R
uss
ell Reyn
old
s and Da
le Mo
rriso
n kept the B
oard
inform
ed on th
e progre
ss a
nd the s
tatus of th
e proc
es
s throug
hout
.
Followin
g det
aile
d con
side
ration, i
nclu
ding as
se
ss
ment a
gains
t the
com
pete
ncie
s ide
ntii
ed in th
e can
didate p
roil
e and the fe
ed
bac
k
from the m
eetin
gs with m
emb
ers o
f the Bo
ard, the S
earch
Co
mmit
tee re
comm
end
ed to the B
oa
rd that De
ann
a Opp
enh
eime
r
be ap
pointe
d as a N
on-
E
xecu
tive Dire
ctor an
d Chai
r De
signa
te
from 1 Ju
ne 202
2
and that s
he as
sum
e the rol
e of Cha
ir from
1 September
202
2, fo
llowin
g Patrick C
es
cau
’
s retirem
ent on
31 Aug
ust 20
2
2. The B
oa
rd approved a
nd co
n
irme
d
the app
ointme
nt.
Patric
k Ce
sca
u was not invol
ved in the s
el
ectio
n or ap
pointm
ent
of his s
ucc
es
sor a
nd Rus
sel
l Reynol
ds ha
s no fur
the
r conn
ec
tion
with the G
roup or a
ny of the Dire
ctor
s, beyond u
nde
rt
akin
g sea
rch
and re
cruitm
ent ac
tivit
y
. D
ea
nna O
ppe
nhe
imer di
d not have
a ser
vi
ce co
ntract w
ith the C
omp
any in 202
1.
•
o
ur appro
ach to inte
rnal c
ontrols a
nd our ri
sk man
age
ment s
trateg
y;
•
infor
mation o
n the B
oard, it
s Com
mit
tees a
nd IH
G’s govern
ance
proc
es
se
s, with a p
arti
cular fo
cus o
n the Rem
uner
ation an
d
Respon
sibl
e Bus
iness
Commi
ttees
;
•
a remi
nde
r of the rul
es rel
ating to maint
ainin
g the co
ni
denti
alit
y
of ins
ide info
rmation a
nd res
trictio
ns in de
alin
g in IH
G sha
res,
toget
her wi
th a brie
ing o
n the po
licie
s and p
roce
dure
s IH
G has
in pla
ce to en
sure co
mpli
ance w
ith suc
h rule
s; and
•
me
etin
gs with m
emb
ers of th
e Bo
ard and the E
xec
utive C
ommit
tee,
sen
ior ma
nag
eme
nt from func
tion
s acros
s the G
roup, the ex
terna
l
Auditor a
nd othe
r key externa
l advi
ser
s.
Dan
iela’s induc
tion p
lan als
o incl
ude
d visi
ts to IH
G co
rporate o
ic
es
and h
otels ac
ross o
ur bran
ds, to me
et c
olle
ague
s and s
pe
nd time
with our G
en
eral M
ana
ger
s. In lig
ht of the imp
act o
f the pan
dem
ic,
suc
h visit
s have not yet t
aken pla
ce, howeve
r they will b
e arrang
ed
as appr
opriat
e when circ
umstances permit.
Indu
ctio
ns were al
so co
ndu
cted in re
sp
ect of th
e app
ointme
nts
of Gra
ham All
an as S
enio
r Inde
pe
nde
nt Non
-
Exe
cutive D
irecto
r
and D
uriya Faroo
qui as N
on-
E
xecu
tive Dire
ctor res
po
nsib
le for
the Voice of th
e Empl
oyee eng
agem
ent p
lan.
Direc
tor appointm
ents
Det
ails o
f the app
ointme
nts to the B
oard m
ade d
uring 20
21, a
s well
as the a
ppo
intment
s of a new S
enio
r Ind
epe
nde
nt Non
-
E
xecutive
Dire
ctor an
d a Non
-
Exe
cutive D
irecto
r resp
ons
ible fo
r the Bo
ard’s
Voice of the Em
ployee e
ngag
eme
nt pla
n, are de
scrib
ed in t
he
Nom
inatio
n Co
mmit
tee Rep
or
t on p
age
s 102 to 10
3.
In ad
dition, a d
es
criptio
n of the Ch
air su
cce
ss
ion ap
pointm
ent
proc
es
s is se
t out b
elow.
New Dir
ector inductions
Up
on app
ointme
nt, all n
ew Dire
ctors u
nde
rgo a com
preh
ensi
ve
and for
mal ind
uctio
n prog
ramme w
hich is t
ailo
red to me
et the
ir
indiv
idua
l nee
ds
. We believe thi
s is cru
cial to en
sure ou
r Direc
tors
hav
e the
full
understandi
ng of
all aspects o
f our
business and
famili
arit
y with the G
roup’s purpo
se, cul
ture and valu
es, to e
nsure
they are ab
le to contr
ibute e
ecti
vely to the B
oard.
For Dan
iela B
aron
e Soa
res, a t
ailore
d indu
ction p
lan wa
s
prep
ared in a
dvanc
e of he
r app
ointme
nt to the Bo
ard in M
arch.
Daniela’
s plan incl
uded:
•
infor
mation o
n the G
roup’s purpos
e, culture, va
lues a
nd strate
gy
,
incl
uding it
s bus
ine
ss mo
de
l, brand
s and th
e markets in w
hich
it op
er
ates
;
In ea
ch c
ase, th
e Bo
ard took into ac
co
unt othe
r appo
intme
nts,
the tim
e comm
itment re
quire
d for ea
ch role a
nd the c
ontex
t of
the U
K Co
rporate G
overn
ance C
od
e, incl
uding in
stituti
onal i
nvestor
and p
roxy adv
ise
r guide
line
s con
ce
rning over-bo
arding. I
t was
con
clud
ed th
at the ad
dition
al app
ointme
nts s
hould n
ot adve
rse
ly
impa
ct the
ir pe
rfo
rmanc
e but s
houl
d enh
ance th
eir ab
ilit
y to provide
constructive challenge and strategic guidance.
Addition
al appoint
ments
Duri
ng 202
1, the B
oard c
ons
ide
red the p
ropo
se
d appo
intme
nts of
Duri
ya Farooqui a
s non
-
executive dire
ctor of Tribe Cap
ital G
row
th
Co
rp I and to the B
oard o
f Cou
ncillo
rs of th
e Car
ter C
enter, which
ope
rates a
s an adv
iso
ry b
oard; D
ale M
orris
on as C
hairm
an of T
w
in
Ridg
e Cap
ital A
cqui
sition C
om
pany Limi
ted; and J
o Ha
rlow as a
non
-
executive di
rector o
f Chap
ter Zero. The B
oa
rd also c
ons
ide
red
and e
ndor
se
d the app
ointm
ent of I
an Dys
on as C
hair of A
SOS pl
c.
93
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Bo
ard activ
ities
B
o
a
rd a
c
ti
vi
tie
s
c
o
nti
nu
e
d
Boar
d dev
elopme
n
t and eect
iv
ene
s
s e
v
al
uat
ion
•
the B
oard
’s involvement i
n the Gro
up’
s strate
gic pro
ces
s, in
par
ticu
lar in rel
ation to rec
over
y and p
ost-
C
ovid-19 s
trategie
s;
•
B
oard work p
roc
ess
es
, inclu
ding qu
alit
y of inform
ation provi
ded to
the B
oard, an
d Bo
ard dyna
mics a
nd the e
ec
tivene
ss of m
eeti
ngs;
•
B
oard en
gag
eme
nt with sh
areho
lde
rs and e
mploye
es; an
d
•
the p
rogre
ssio
n of Bo
ard refre
shme
nt and s
ucc
es
sion p
lan
s.
The re
spo
ns
es of B
oard me
mbe
rs to the qu
es
tionn
aire were
large
ly favourab
le in rel
ation to all a
reas of th
e Bo
ard’s ope
ration
.
The fe
edb
ack h
ighlighte
d that th
e Boa
rd equ
ally and e
ec
tively
supp
or
ted a
nd cha
llen
ged m
anag
eme
nt
’s r
es
pon
se to the p
ande
mic,
while e
nsu
ring ong
oing an
d app
ropriate g
overnan
ce to safe
gua
rd
the G
roup’s r
ep
utatio
n, in
anci
al viab
ilit
y and st
akeho
lde
r value.
Bo
ard mem
ber
s com
mente
d po
sitivel
y on the B
oard
’s inv
olve
ment
in the st
rategic p
roce
ss
, noting th
at the B
oard strate
gy days an
d the
shif
t in B
oard a
gend
a and di
scu
ssi
on in the s
ec
ond h
alf of the ye
ar
allowe
d for a greate
r focu
s on the G
roup’s long
-term strate
gy ver
sus
sho
rt-term c
ons
ide
rations
. Bo
ard me
mbe
rs were s
atis
ie
d with the
timing, a
mount a
nd qua
lity o
f enga
gem
ent with m
ana
gem
ent.
Fee
dbac
k noted s
trong en
gag
eme
nt with sh
areho
lde
rs, hig
hlighted
the en
hanc
ed Voice o
f the Emp
loyee pro
gramm
e, and ind
icate
d
strong e
nga
gem
ent an
d follow up by the B
oard w
ith its C
ommi
tte
es.
Bo
ard mem
ber
s gen
erall
y agree
d that th
e impl
eme
ntatio
n of the
acti
ons ari
sing fro
m the 202
0 Bo
ard ee
ctiven
es
s evaluati
on ha
d
progre
ss
ed we
ll, par
ticu
larly in re
lation to an i
ncre
ase
d focu
s on
lon
g-term s
trateg
y and imp
lem
enta
tion as we
ll as B
oard su
cce
ss
ion
pla
nning. I
t was wid
ely n
oted that a retu
rn to in-
per
son B
oard
me
etings wo
uld be we
lc
ome an
d drive pro
gres
s in relati
on to
enhance
d Board discus
sion and debate.
The B
oard
’s positi
ve feed
bac
k in relatio
n to the overall
pe
rfor
manc
e of the B
oard c
onc
lude
d as to the e
ec
tivene
ss
of the B
oard
’s per
forman
ce.
The C
EO evaluatio
n was le
d by the Ch
air
, w
ho co
lle
cted fe
edb
ack
from the N
on
-E
xec
utive Dire
ctor
s. Key areas o
f focus i
nclu
ded:
•
the G
roup’s ina
ncial p
er
form
ance a
nd the im
pac
t of the C
EO;
•
le
ade
rshi
p ee
ctiven
es
s through th
e pan
demi
c;
•
po
sitio
ning I
HG for th
e lon
g term;
•
reg
ard for co
mmuni
ty an
d the enviro
nme
nt; and
•
the re
latio
nship a
nd abil
ity to wor
k coll
abo
ratively an
d trans
pare
ntly
with the B
oa
rd.
On
goin
g Di
rec
tor tra
inin
g an
d devel
opm
ent
We unde
rst
and the i
mpo
rt
anc
e of an ong
oing trai
ning pro
gramm
e
for Dire
ctor
s to enab
le the
m to fully und
ers
tan
d the Gro
up’s
bus
ine
ss an
d ope
ration
s in the co
ntext of th
e rapi
dly devel
opin
g
environ
ment in w
hich it o
pera
tes. T
he Ch
air co
ntinue
s to review
the train
ing and d
evelo
pme
nt nee
ds wi
th eac
h Direc
tor on a re
gular
bas
is and t
he Bo
ard is ma
de aware of tra
ining op
por
tuni
ties
.
Bo
ard and C
ommi
tte
e mee
tings a
re regula
rly use
d to upd
ate
Dire
ctors o
n develo
pme
nts in th
e environm
ent in wh
ich the b
usin
es
s
ope
rates a
nd in-
d
epth pre
se
ntation
s are provid
ed o
n key t
opi
cal
area
s. In 20
21
, thes
e se
ssi
ons in
clud
ed cyb
er ris
k man
age
ment
;
environ
ment
al, so
cial an
d govern
ance (E
SG) con
sid
eratio
ns; and
audit a
nd corporat
e go
vernance
refor
m pr
oposals.
In ad
dition, th
e Co
mpany S
ecret
ar
y provid
es reg
ular up
dates o
n
regulat
or
y
, corporate
gov
ernance and
legal matters
and Dir
ectors
are able to
meet individually with senior manag
ement if nece
ssar
y
.
Internal evaluation
Followin
g the full ex
tern
al evaluati
on ca
rried o
ut by Chri
stoph
er Sa
ul
of Chri
stop
her S
aul As
so
ciates i
n 201
9 and an inte
rnal evalu
ation
in 202
0, during the ye
ar the B
oard o
nce a
gain un
der
too
k an
intern
al evaluati
on.
Bo
ard mem
ber
s were as
ked to con
side
r the B
oard
’s o
verall
ee
ctiven
es
s by com
pletin
g an intern
al ee
ctive
nes
s que
stio
nnaire,
whic
h focus
ed o
n the follow
ing are
as:
•
pro
gres
s in impl
eme
nting ag
ree
d actio
n items fro
m the 20
20
ee
ctiven
es
s review;
•
the ro
le the B
oard c
ontinue
s to play in re
lation to th
e pand
emic
and re
cove
r
y;
•
infor
mation 
low to the B
oard, an
d Bo
ard eng
age
ment wi
th
man
age
ment an
d eac
h of its C
omm
itte
es;
Directors
’ performance e
valuat
ion
In ad
dition to th
e interna
l Boa
rd evaluatio
n proc
es
s outlin
ed
above, th
e Chai
r con
ducte
d an ind
ividu
al evaluati
on of ea
ch of
the N
on-
E
xecu
tive Dire
ctors, t
aki
ng fee
dba
ck from the C
EO, and
focu
sing o
n their c
ontrib
ution an
d eng
age
ment in th
e co
ntext of
a more vi
rtu
al environ
ment
. Par
ticul
ar point
s of note we
re share
d
with the i
ndivi
dual D
irecto
rs and ove
rall, the C
hair c
oncl
ude
d that
the Di
rector
s pe
rfor
m their du
ties e
ec
tively an
d de
dicate s
u
icien
t
time to dis
cha
rge thei
r Boa
rd resp
ons
ibiliti
es.
The p
er
form
ance a
ss
es
sme
nt of the C
hair was l
ed by the S
ID.
The C
hair
’s evaluation c
ons
iste
d of gath
ering fe
edb
ack fro
m the
Dire
cto
rs, c
overi
ng:
•
B
oard le
ade
rshi
p, strategy evo
lution a
nd pe
rfo
rman
ce mo
nitoring
in the c
ontext o
f a pand
emic
-
aec
ted yea
r
;
•
overal
l Boa
rd culture, en
gag
eme
nt and p
arti
cipati
on; and
•
mai
ntenan
ce of hi
gh sta
ndard
s of cor
porate g
overnan
ce.
The fo
llowing a
reas of c
ontinu
ed fo
cus an
d reco
mme
nde
d acti
ons for 2
02
2 were no
ted:
Are
a for f
oc
us
Action
items
Lon
g-te
rm stra
tegy
Board m
em
ber
s po
siti
vely n
ote
d the lo
nge
r-term st
rateg
ic dis
cu
ss
ion th
roug
hout t
he yea
r
, but fe
lt tha
t this c
oul
d
be fu
rt
her e
nha
nc
ed in 2
02
2 wit
h add
itio
nal fo
cus o
n the i
mpl
eme
nta
tion o
f the lo
ng
-ter
m strate
gy an
d co
mp
etitiv
e
po
siti
onin
g in rel
atio
n to del
iver
ing on t
he Gro
up’s obj
ect
ives
.
Bo
ard ma
teri
als an
d ag
end
a
Fe
ed
bac
k note
d tha
t Bo
ard ma
teria
ls, p
ar
ticu
larl
y the m
ateri
als p
rep
are
d for it
s strate
gy m
eet
ing, we
re info
rmat
ive
and h
igh qu
alit
y. It was al
so no
ted th
at, al
tho
ugh th
ere h
ad be
en s
om
e prog
res
s on m
akin
g the re
gul
ar B
oard
info
rmati
on pa
ck m
ateri
als m
ore for
wa
rd-
loo
kin
g, thi
s sho
uld re
mai
n a focu
s in 20
2
2.
Boar
d m
eeti
ng
dyna
mics
Boa
rd me
mbe
rs al
so n
oted th
e co
ntinu
ed c
on
strai
nts of v
ir
tual m
ee
ting
s and th
e ne
ed fo
r inc
rea
se
d dis
cus
si
on tim
e,
bot
h form
al and i
nform
al, an
d the n
ee
d to rever
t to fu
ll ‘in
-p
er
so
n’ mee
ting
s as s
oon a
s po
ss
ibl
e.
Gove
rn
an
c
e
94
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Au
d
i
t
C
o
m
m
i
t
te
e
R
e
p
o
r
t
I am pl
ea
se
d to pre
se
nt th
e Co
mmi
tte
e’
s rep
or
t for th
e
year e
nd
ed 31 D
ec
em
be
r 202
1. Th
es
e pa
ge
s out
line h
ow the
Co
mmit
te
e dis
ch
arge
d th
e res
po
ns
ibil
itie
s de
le
gate
d to it
by the B
oar
d over th
e cou
rse o
f the ye
ar
, and t
he key are
as
of foc
us fo
r the C
om
mit
tee in d
oin
g so.
The C
omm
itte
e ful
ils a v
ital rol
e in the C
omp
any’s governa
nce
frame
work, p
roviding va
luab
le ind
epe
nde
nt oversi
ght acro
ss the
Co
mpany
’s inan
cial re
por
ting a
nd intern
al co
ntrol proc
ed
ures.
It provi
des th
e expe
rt s
crutiny to en
sure that th
e nec
es
sa
ry
intern
al contro
ls to run the b
usin
es
s are in pl
ace, th
at risks a
re
app
ropriate
ly man
age
d, that th
e Com
pany
’
s pe
rfo
rmanc
e is
cor
rectly ve
ri
ied by the ex
tern
al Audito
rs and th
at the rep
or
ting
of this to ou
r share
hol
ders a
nd st
akehol
der
s is fair
, bal
anc
ed
and understanda
ble.
The o
ngoin
g impa
ct of the p
and
emic a
nd the ri
sks that
acc
omp
anie
d it co
ntinue
d to be a maj
or foc
us given th
e
cha
ngea
ble n
ature of the op
erati
ng environ
ment
. Ass
es
sing th
e
Group’s risk m
anag
eme
nt and in
ternal c
ontrol ar
range
ment
s
duri
ng the
pandemic a
nd thei
r appr
opriat
eness as condi
tions
sta
rte
d to norm
alis
e contin
ued th
rougho
ut the ye
ar
. I
n earl
y
202
1, the tra
nsiti
on of ex
ternal Au
ditor from E
rnst & Young LLP
(EY
) to Pri
cewaterh
ous
eC
oo
per
s LLP (P
w
C) was co
mple
ted
and th
e Com
mit
tee’s attentio
n shif
ted to P
w
C’s ir
st year a
udit.
Throu
ghou
t the pe
riod, P
w
C has p
rovide
d insig
hts into the
Group’s proc
es
se
s and co
ntrols an
d the Aud
it Co
mmit
tee ha
s
reviewe
d and di
scus
se
d man
age
ment
’s resp
ons
es.
In ad
dition, th
e Co
mmit
tee h
as rec
eive
d regul
ar repo
rt
s on
intern
al audit
s and s
teps b
eing t
aken to add
ress 
ind
ings;
contro
ls as
suran
ce wor
k and rem
edia
tion ac
tivit
y; and othe
r
de
ep
-
dive reviews in
clud
ing a po
st-c
omp
letion rev
iew of
sp
endin
g on larg
e proje
cts a
nd a review of th
e Ame
rica
s
man
age
d hotel 
inan
cial c
ontrol e
nvironme
nt.
The o
ngoin
g focu
s on the ap
proa
ch to in
anci
al rep
or
ting
through t
he year e
nsure
d the C
ommi
tte
e was co
mfor
tab
le that
all late
st gui
danc
e from reg
ulator
y bo
die
s such a
s the Fi
nanc
ial
Rep
or
ting C
ounc
il (FRC) ha
d bee
n co
nsid
ered
. The C
omm
itte
e
als
o chall
eng
ed ma
nag
eme
nt to ensu
re climate ri
sk ha
d be
en
appropriately and consistently relecte
d thr
ough the Annual
Rep
or
t and Form 20

F
, pa
rti
cularl
y with reg
ard to impa
cts o
n
for
ward-
loo
king a
ssu
mption
s supp
or
ting th
e Fina
ncial S
tate
ment
s.
Loo
king fu
rth
er out
, the C
ommit
tee eva
luate
d the pote
ntial
impa
ct of th
e Dep
ar
tment fo
r Bus
ine
ss, E
nergy an
d Ind
ustria
l
Strate
gy (BE
IS) con
sult
ation d
ocum
ent on a
udit an
d corp
orate
govern
ance re
form, app
roved a res
pon
se to the c
ons
ultati
on
and c
ons
idere
d prep
arator
y ac
tions p
ar
ticul
arly in rel
ation to the
prop
ose
d Res
ilien
ce S
tatem
ent and Au
dit & As
sura
nce Po
licy
.
I would li
ke to thank all tho
se wh
o have ass
iste
d the C
ommit
tee
in ful
illin
g its du
ties dur
ing the yea
r
, whi
ch I am c
on
ide
nt have
be
en c
arrie
d out e
ective
ly and to a hi
gh sta
ndard, p
roviding
inde
pe
nde
nt oversig
ht with the s
upp
or
t of as
suranc
e from th
e
exte
rnal Aud
itor
.
Ian Dyson
Cha
ir of the Aud
it Co
mmit
tee
21 Feb
ruar
y 20
2
2
Key dutie
s and r
ole of t
he C
omm
itte
e
K
ey
objectives
and summary of r
espons
ibili
ties
The Au
dit C
ommit
tee i
s resp
ons
ible fo
r ens
uring that I
HG m
aint
ains
 strong c
ontrol e
nvironm
ent. I
t monito
rs the inte
grit
y of IH
G’s
inan
cial repor
ting, including signi
icant 
inancial rep
orting
judg
eme
nts, m
aintai
ns overs
ight and rev
iews our sy
stems o
f interna
l
contro
l and ris
k man
age
ment
, monito
rs and rev
iews the e
ec
tivene
ss
and p
er
forma
nce of i
nternal a
nd exte
rnal au
dit fun
ction
s, as we
ll as
reviewin
g the be
havio
urs exp
ecte
d of IH
G’s emp
loyees th
rough the
Co
de of C
ond
uct an
d relate
d pol
icie
s.
The C
omm
itte
e’s r
ole, re
sp
onsi
bilitie
s and au
thorit
y de
leg
ated to
it by the B
oard are s
et out in it
s T
e
rms of Re
feren
ce (
T
o
R), whic
h
are re
viewed annually and approv
ed by the Board.
The ToR are ava
ilab
le at
w
ww.ihgplc.
com/inv
estors
under
Co
rpo
rate gover
nanc
e.
The C
omm
itte
e’s k
ey areas of fo
cus ove
r the year h
ave bee
n:
•
review
ing the G
roup’s approa
ch to the ma
nage
me
nt of risk
incl
uding c
ons
ide
ring the c
ontinu
ed evolu
tion of th
e impa
ct
of Cov
id-19 on th
e bus
ine
ss;
•
as
se
ssi
ng and o
btain
ing as
suran
ce on th
e ee
ctive
nes
s and
resil
ienc
e of the G
roup’s internal c
ontrol e
nvironme
nt and it
s
app
ropriate
nes
s given th
e cha
nging e
nvironme
nt in whic
h the
Gro
up o
pera
tes
;
•
review
ing and c
hall
engin
g in
anci
al repo
rti
ng throug
hout th
e year
to ens
ure the Fin
anci
al St
ateme
nts provid
e a true an
d fair vie
w of
the G
roup’s per
forman
ce an
d that late
st gui
danc
e and re
por
ting
regul
ation
s by regulato
rs were ap
propri
ately ap
plie
d;
•
review
ing the G
roup’s Internal Au
dit pla
n and b
udge
t;
•
review
ing and eva
luating g
oing c
onc
ern an
d viabi
lity a
ss
es
sme
nts,
the ne
ed fo
r impai
rment te
sting a
nd provis
ionin
g for mate
rial
litigati
on and c
omm
ercia
l disp
utes; an
d
•
overs
ee
ing the tra
nsiti
on of the ex
tern
al Audito
r and P
wC
’s irs
t
year a
s Auditor of th
e Grou
p.
Membership
and
attend
ance a
t meet
ings
Det
ails o
f the Co
mmit
tee’s memb
er
ship an
d atte
ndan
ce at me
eting
s
are set o
ut on p
age 81
. The C
EO, CFO, Gene
ral Co
uns
el and
Co
mpany S
ecret
ar
y
, G
roup Fin
anci
al Co
ntrolle
r
, H
ead o
f Risk
and As
sur
ance a
nd our ex
tern
al Auditor (E
Y Feb
ruar
y onl
y; PwC
all me
eting
s), attend
ed all m
eetin
gs in 20
21
. The C
hair of th
e Bo
ard
als
o aims to at
tend all m
ee
tings an
d in 202
1 at
tend
ed four m
eeti
ngs
.
Oth
er at
tend
ee
s are invited to me
eting
s as ap
propri
ate and the C
EO
and all o
ther D
irecto
rs were invite
d to Co
mmit
tee me
eting
s whe
re
the ap
proval of 
inanc
ial rep
or
ting was c
on
side
red an
d disc
uss
ed
.
The C
omm
itte
e conti
nue
s to hold p
rivate se
ssi
ons wit
h the intern
al
and ex
terna
l Auditor
s witho
ut the pre
se
nce of m
anag
eme
nt to
ens
ure that a cu
lture of trans
pare
ncy is m
aintai
ned
. The C
ommi
tte
e
Cha
ir conti
nues to h
ave rece
nt and rel
evant in
anci
al expe
rien
ce
and all m
emb
ers o
f the C
ommit
tee a
re Inde
pe
ndent N
on
-
Exe
cutive
Dire
ctors
. In ac
cord
anc
e with the C
od
e, the Bo
ard als
o con
sid
ers
that the C
om
mitte
e as a wh
ole p
os
ses
se
s co
mpete
nce re
levant to
the C
omp
any’s sec
tor
, h
aving a ran
ge of 
inanc
ial an
d comm
erci
al
expe
rien
ce in the h
osp
itali
ty in
dustr
y an
d the bro
ade
r com
merci
al
environ
ment in w
hich the G
roup o
pera
tes. Fur
ther d
etail
s of the sk
ills
and exp
erie
nce o
f the C
ommit
tee m
emb
ers c
an be fo
und on
pag
es 82 to 8
4.
Rep
or
ting to t
he B
oar
d
Followin
g eac
h Co
mmit
tee me
eting
, the Co
mmit
tee C
hair up
date
s
the B
oard on key is
sue
s disc
us
sed
. The p
ape
rs and m
inutes fo
r eac
h
me
eting are ci
rculate
d to all Bo
ard mem
ber
s, who are i
nvited to
requ
est f
urth
er info
rmatio
n if requi
red and to p
rovide any ch
allen
ge
where
necess
ary
.
95
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Audit C
omm
itte
e Rep
or
t
Alon
gsi
de this revi
ew
, the C
ommit
tee c
ons
ide
red the g
uidan
ce
upd
ates provi
ded by th
e FRC throu
ghout th
e year in
clud
ing on
Non
-
GA
AP me
asu
res, Provi
sion
s, Co
ntinge
nt Liab
ilitie
s and
Co
ntinge
nt Ass
ets
, Goin
g Co
nce
rn and V
iabili
ty an
d con
clud
ed
that
appropr
iat
e enhancements
had been made t
o ensure al
ignment
with the l
atest g
uidan
ce.
Followin
g a review of the c
ontent
s of the A
nnual Re
po
rt al
ongs
ide
the afore
menti
one
d criteri
a, the C
ommit
te
e repo
rte
d its
rec
omme
ndati
on to app
rove the Annua
l Rep
or
t to the Bo
ard.
The C
omm
itte
e has b
ee
n moni
toring deve
lop
ment
s in the U
K’s
audit a
nd co
rpo
rate governa
nce e
nvironme
nt, inc
ludin
g the reform
s
prop
ose
d by BE
IS follow
ing its c
on
sult
ation ‘
Resto
ring T
rust in
Audit an
d Co
rpo
rate Govern
anc
e’
. Th
e Com
mit
tee co
nsid
ere
d
the p
otential im
pac
t of the pro
pos
ed refo
rms an
d reviewed a
nd
app
roved a subm
iss
ion su
mmari
sing th
e Group’s pos
ition in
resp
on
se to the qu
esti
ons in th
e con
sult
ation. T
he C
ommit
tee a
lso
requ
este
d a numb
er of p
rese
ntatio
ns from P
w
C to provide fu
rth
er
insi
ght on the key prop
os
als an
d disc
us
sed p
ape
rs from s
enio
r
man
age
ment o
n the pote
ntial imp
lic
ations o
f key propos
als to
ens
ure that the C
om
pany is c
ompli
ant with any ne
w regula
tions
whe
n they co
me into force, i
nclu
ding so
me of th
e deta
iled p
ropo
sal
s
be
hind the R
esili
enc
e Sta
tement a
nd Audi
t and As
sura
nce Po
licy
.
Sig
ni
ica
nt ma
tte
rs in th
e 20
21 Fi
nan
cia
l Sta
tem
ent
s
Throughout
2021, the Committee pr
ovided ongoi
ng challenge
to mana
gem
ent
’s acco
unting, re
por
ting a
nd intern
al co
ntrols
to ens
ure the co
ntinuing i
mplic
ation
s of the p
ande
mic ha
d
be
en dul
y con
side
red. A
s always, the C
omm
itte
e dis
cus
se
d with
man
age
ment an
d the ex
ternal Au
ditor th
e signi
ic
ant are
as of
com
plexit
y
, mana
gem
ent ju
dgem
ent an
d esti
mation i
n relatio
n
to the Fin
anci
al St
ateme
nts, an
d the imp
act of a
ny acco
unting
devel
opme
nts or l
egi
slative c
hang
es
. The C
ommi
tte
e has s
atis
ie
d
its
elf tha
t mana
gem
ent ha
d ade
quate
ly ide
nti
ied an
d con
sid
ered
all potentially s
igni
ic
ant ac
counti
ng and di
scl
osure m
atte
rs.
The key item
s disc
uss
ed a
re outline
d on p
age 9
9.
Co
rres
po
nd
enc
e wit
h UK re
gul
ator
The G
roup rec
eive
d a let
ter date
d 15 J
uly 202
1 from th
e FRC
followi
ng its revi
ew of the An
nual Re
por
t an
d Acco
unts for t
he
in
anci
al year e
nde
d 31 D
ec
emb
er 20
20 as pa
rt o
f the FRC
’s routine
pe
riodic rev
iew of lis
ted c
ompa
ny annual re
por
ts
. The l
ette
r rais
ed
no que
stio
ns req
uiring a re
spo
nse
. The ap
pe
ndix to the l
ette
r set o
ut
a numb
er of ob
se
rvati
ons o
n cer
ta
in disc
los
ures, w
hich have b
een
taken into a
cco
unt in the p
repa
ration of th
e 202
1 Annu
al Rep
or
t
and Accoun
ts.
The F
RC
’
s review is b
ase
d on th
e publ
ishe
d Ann
ual Rep
or
t and
Acc
ounts a
nd do
es not b
en
e
it from det
aile
d know
led
ge of the
business or an
understandi
ng of
the und
erlying
tra
nsactions.
It provi
des n
o ass
uranc
e that th
e Annua
l Repo
rt a
nd Ac
count
s is
cor
rect in al
l materia
l resp
ec
ts. T
he FRC
’s role is not to ve
rif
y the
inform
ation provi
ded, b
ut to co
nsid
er co
mpli
anc
e with rep
or
ting
requi
reme
nts. T
he FRC a
cce
pts no l
iabili
ty for re
lianc
e on the F
RC
’s
review by the C
omp
any or any third pa
rt
y
, i
nclu
ding bu
t not limite
d
to i
nv
estors and
shareholders.
Int
ernal
control a
nd r
isk ma
nagement
The B
oard i
s resp
ons
ible fo
r est
abli
shing p
roc
edure
s to mana
ge
risk
, overs
ee
ing the inte
rnal c
ontrol fra
mework a
nd dete
rmining th
e
nature an
d exten
t of the prin
cipa
l risks th
e Co
mpany is w
illing to ta
ke
to achieve it
s lon
g-te
rm obje
ctive
s. Th
e Com
mit
tee sup
por
t
s the
Bo
ard by reviewing th
e ee
ctive
nes
s of the G
roup’s internal c
ontrol
and ri
sk man
age
ment sy
stems a
nd as
se
ssi
ng eme
rging an
d
princi
pal risks
.
Effe
ct
ivene
s
s of th
e Com
mit
tee
The e
ec
tivene
ss o
f the Co
mmit
tee i
s monito
red an
d ass
es
se
d
regul
arly by the C
hair of th
e Co
mmit
tee an
d the Ch
air of the B
oa
rd.
In 20
21, th
e Com
mit
tee me
mbe
rs were al
so as
ked to con
sid
er the
Co
mmit
tee’s eec
tivene
ss by revi
ewing an e
ec
tivene
ss
que
stion
naire an
d the res
pon
se
s to it. The eva
luatio
n resp
ons
es
po
sitivel
y highlig
hted the over
sight of th
e exte
rnal Aud
itor tran
sition
,
noted t
he ne
ed for c
ontinu
ed revi
ew of the train
ing and k
nowle
dg
e
devel
opme
nt ne
ed
s of Co
mmit
tee me
mbe
rs in th
e contex
t of the
cha
nging re
gulator
y e
nvironme
nt and c
oncl
ude
d that the
Co
mmit
tee rem
ains e
ec
tive.
Focu
s are
as a
nd a
ctivi
tie
s
Financ
ial and narrative repo
rting
Duri
ng the yea
r
, the C
omm
itte
e reviewe
d and re
comm
en
ded ap
proval
of the inte
rim and an
nual F
inan
cial S
tatem
ents (con
side
ring th
e
relevant a
cc
ounting a
nd rep
or
ting mat
ter
s such a
s key judge
ment
area
s, goin
g con
cern a
nd via
bilit
y sta
teme
nts, the 
ina
ncial re
po
rtin
g
impa
cts o
f litigatio
n and c
omm
ercial di
spu
tes and i
mpair
ment
reviews) and th
e Group’s quar
terly tr
ading up
date
s. All m
emb
ers
of the B
oard are a
sked to at
tend th
ese m
eeti
ngs.
As well a
s rec
eivin
g input a
nd guid
anc
e from the ex
terna
l Auditor
on the a
reas o
utline
d above, th
e Com
mit
tee als
o rec
eive
d regul
ar
repo
rt
s from the C
hair o
f the Di
sclo
sure C
ommi
tte
e, which li
aise
d
clo
sel
y with othe
r exter
nal ad
vise
rs of th
e Group to e
nsure th
at
dis
clos
ure and re
gulator
y re
quirem
ents we
re bein
g app
ropriate
ly
con
sid
ered a
nd met
. Co
pies o
f the Di
sclo
sure C
ommi
tte
e’
s minute
s
were als
o provid
ed to the C
omm
itte
e.
The C
omm
itte
e rec
eived e
arly dr
aft
s of the An
nual Re
por
t an
d
Form 20
F 2
02
1 (Annu
al Rep
or
t), and whe
n providi
ng co
mment
s
con
sid
ered: (i
) the proc
es
s for pre
parin
g and veri
fy
ing the A
nnual
Rep
or
t, whic
h inclu
de
d review by me
mbe
rs of the E
xec
utive
Co
mmit
tee an
d input f
rom se
nior em
ployee
s in the C
omp
any
Se
creta
riat, O
pera
tions
, Strateg
y
, H
uman Re
sou
rces
, Finan
ce,
Ris
k and As
sura
nce an
d Leg
al team
s; (ii) a rep
or
t from the C
hair
of the D
isc
losu
re Com
mitte
e; an
d (iii) the ch
eck
list p
repa
red by
the Ann
ual Re
por
t tea
m con
irmi
ng co
mplia
nce wi
th the releva
nt
regu
lator
y re
qui
reme
nts
.
The C
omm
itte
e als
o con
side
red m
anag
eme
nt
’
s anal
ysis of h
ow the
conte
nt, ta
ken as a who
le, was ‘
fair
, bala
nce
d and un
der
sta
ndab
le’
,
and wh
ethe
r it con
tain
ed the n
ec
es
sar
y inform
ation fo
r share
hol
der
s
to ass
es
s the G
roup’s positi
on, pe
rfo
rman
ce, bu
sine
ss m
ode
l
and s
trategy. In order to rea
ch this c
onc
lusi
on, a de
dic
ated proj
ect
team wo
rked on the c
ontent
s of the An
nual Re
por
t an
d a det
aile
d
veri
ic
ation pro
ce
ss to co
n
irm the ac
cura
cy of the infor
mation
cont
aine
d withi
n the Annu
al Rep
or
t was un
der
ta
ken by the Fin
anci
al
Plan
ning an
d Analy
sis de
par
tme
nt. Th
e Co
mmit
tee the
n con
sid
ered
both th
e struc
ture and c
ontent of th
e Annu
al Rep
or
t to ens
ure that
the key mes
sa
ges we
re ee
ctivel
y and c
onsi
stentl
y comm
unic
ated
and th
at mea
ningfu
l links be
twe
en the b
usin
es
s mod
el, str
ategy
,
KPI
s, pri
ncip
al risks a
nd remu
nerati
on were cl
early i
denti
ie
d
through
out th
e Annua
l Rep
or
t. This rev
iew als
o con
sid
ered th
e use
of No
n-
GA
AP m
eas
ures an
d con
side
red th
eir co
ntinue
d suit
abili
ty
,
pres
ent
ation an
d relative p
romine
nce t
akin
g into acc
ount gu
idan
ce
from bo
th the FRC an
d the S
ecuri
ties an
d Exch
ang
e Com
mis
sion
(SEC). The C
ommit
tee s
pe
ci
ica
lly rec
ons
idere
d the c
ontinu
ed
impa
ct of th
e pand
emic o
n pe
rfor
manc
e, strate
gy and b
usin
es
s
resil
ienc
e and w
here it im
pac
ted the n
ature of the ju
dge
ment
s
and e
stima
tion unc
er
tai
nty. The Co
mmit
tee al
so co
nsid
ere
d the
prop
or
tiona
te and co
nsi
stent c
onsi
derati
on of cli
mate mat
ters
acro
ss the A
nnual Re
po
rt
, inclu
ding th
e TCFD st
ateme
nt, an
d in
par
ticu
lar the p
otentia
l impa
ct on for
ward
-lo
okin
g as
sumptio
ns
supp
or
ting im
pairm
ent tes
ting, de
ferre
d tax as
se
ts, go
ing co
nce
rn
and via
bility assessments.
A
udit C
ommi
ttee Repor
t
c
o
nti
nu
e
d
Gove
rn
an
c
e
96
IHG
|
Annual R
epo
rt a
nd Form 20

F 202
1
In orde
r to ee
ctivel
y review the inte
rnal c
ontrol an
d risk
man
age
ment sys
tems, t
he Co
mmit
tee:
•
rec
eive
s regul
ar rep
or
ts from m
anag
eme
nt, the R
isk an
d
As
suranc
e team a
nd the ex
tern
al Auditor o
n the e
ecti
vene
ss of
the syste
ms for ri
sk ma
nage
men
t and intern
al co
ntrol, inc
luding
inancial, ope
rational and compliance controls;
•
review
s the pro
ces
s by whic
h risks are i
denti
ie
d (inc
luding
proc
edu
res in pl
ace to id
entif
y em
ergin
g risks an
d linka
ge to
wide
r co
nsid
eratio
n of strate
gy and re
silie
nce) and a
ss
es
ses
the tim
eline
ss a
nd ee
ctive
nes
s of ac
tion t
aken by mana
gem
ent,
incl
uding re
gular re
por
t
s and pre
sent
ation
s on the C
om
pany
’
s
overall inte
rnal c
ontrol, ris
k man
age
ment sys
tem and p
rinci
pal
risks; a
nd
•
rec
eive
s addi
tiona
l repo
rt
s through
out the ye
ar releva
nt to
intern
al contro
l and ris
k man
age
ment
, both 
inan
cial an
d non
-
in
anci
al, to ens
ure that cur
rent and e
mergi
ng risks a
re identi
ie
d
and assessed and tha
t ther
e is
an appr
opria
te ma
nagement
resp
on
se (see p
age
s 40 to 47 for fur
the
r det
ail on ou
r risks an
d
initiati
ves to man
age th
em).
As pa
rt of th
e Co
mmit
tee’s review of the inte
rnal c
ontrol an
d risk
man
age
ment sys
tems, key 
inanc
ial, op
erati
onal an
d co
mplia
nce
contro
ls ac
ross th
e bus
ines
s co
ntinue to b
e monito
red an
d teste
d
through
out th
e year
. The C
omm
itte
e as
ses
se
s the ap
proac
h to
Sarb
ane
s-
O
xley Act 20
02 (S
OX) comp
lian
ce in ac
co
rdanc
e with
our U
S oblig
ation
s and review
s repo
rt
s on the p
rogre
ss of th
e
SOX progra
mme at e
ach m
eetin
g.
Duri
ng 202
1, the C
omm
itte
e rec
eived a
n upd
ate on hotel 
ina
ncia
l
contro
ls in the A
meri
cas re
gion a
nd a po
st-c
omp
letion rev
iew of
sp
endin
g on larg
e proje
cts
. The C
omm
itte
e con
sid
ers th
e Group’s
treasury and tax strategy policie
s annually and during
202
1 approv
ed
mino
r chan
ges to th
e Group Tr
ea
sur
y Polic
y and the G
roup’s
published ‘
Approach to
T
ax’
.
Our A
pp
roac
h to T
ax do
cum
ent i
s availa
ble a
t
www.ihgplc.
com/
en/responsible-business/
policies
Havin
g reviewed th
e intern
al con
trol and ri
sk man
age
ment sy
stems
through
out th
e year
, the Co
mmit
tee c
onc
lude
d that th
e Group
conti
nue
s to have an ee
ctive syste
m of risk m
ana
gem
ent an
d
intern
al contro
ls, an
d that the
re are no mate
rial we
akne
ss
es in th
e
contro
l environm
ent an
d no othe
r signi
ic
ant fai
lings o
r weak
nes
se
s.
Prin
cip
al ris
k ar
ea
s
Duri
ng the yea
r
, pa
rti
cular at
tentio
n was p
aid to the review a
nd
as
ses
sm
ent of pri
ncip
al and e
mergi
ng risks fo
llowing th
e cha
llen
ges
create
d by the pa
nde
mic and i
n light of the G
roup’s strategi
c growth
ambi
tions
. The C
omm
itte
e obs
er
ved th
at risks to th
e executio
n of
the G
roup’s strategy rem
aine
d hei
ghtene
d and im
pac
ted by
con
strain
ed re
sourc
es (in
clud
ing i
nanc
ial an
d mana
gem
ent time).
The C
omm
itte
e con
sid
ered th
e followi
ng area
s:
•
the p
otentia
l for add
itiona
l stres
s on ris
k man
age
ment a
nd intern
al
contro
l arrang
eme
nts from c
ontinu
ed C
ovid
-19
-rel
ated dis
ruptio
n;
•
the im
pac
t on the G
roup’s busin
es
s of fur
ther w
aves of the
pan
demi
c or a mo
re prolon
ged p
eri
od of rec
over
y for the i
ndus
try,
incl
uding o
n our sup
ply c
hain arra
nge
ment
s;
•
the im
pac
t of orga
nisati
onal c
hang
es an
d lexi
ble wor
king
arrangemen
ts for
corporat
e emplo
yees;
•
the im
pac
t of st
a sho
rt
age
s and wa
ge in
latio
n within th
e
hospitalit
y industry; and
•
cyb
ers
ecu
rity a
nd inform
ation g
overnan
ce in the c
ontex
t of
a rapid
ly evolvin
g exte
rnal thre
at and re
gulator
y envi
ronme
nt.
Furthe
r det
ails of o
ur princ
ipal ri
sks, un
cer
t
ainties a
nd review
proc
es
s can b
e foun
d on pa
ges 4
0 to 47
.
Fin
anc
ial Re
po
rti
ng C
oun
cil Au
dit Q
ual
ity Rev
iew
The F
RC Audit Q
ualit
y Revi
ew (AQR) se
le
cted th
e exter
nal aud
it
by EY of t
he Grou
p’
s Fina
ncia
l State
ment
s for the ye
ar end
ed
31 D
ec
emb
er 202
0 for review a
s par
t of it
s annua
l insp
ec
tion of
audit 
irm
s. As p
art o
f this pro
ce
ss, th
e Co
mmit
tee’s Chair s
hare
d his
and th
e Boa
rd’s view of the q
ualit
y of the E
Y au
dit. Th
e Co
mmit
tee
con
sid
ered th
e in
al ins
pe
ction re
por
t whi
ch highl
ighted g
ood p
racti
ce
in res
pec
t of ce
rt
ain as
pe
cts of th
e Grou
p audit wo
rk. Th
e repo
rt
incl
ude
d one o
bse
rvati
on, req
uiring li
mited im
proveme
nt which
was not c
ons
ide
red sig
ni
icant by th
e Co
mmit
tee. T
he Co
mmit
tee
dis
cus
sed th
e resu
lts an
d agree
d ac
tions w
ith the le
ad au
dit par
tne
r
and a
gree
d with the over
all as
ses
sm
ent whi
ch was c
onsi
stent w
ith
its own v
iew of the qu
alit
y and e
ec
tivene
ss o
f the exte
rnal au
dit.
In co
nsi
derin
g the aud
it plan
, the Co
mmit
tee c
ons
ide
red the
obser
vat
ion wou
ld not i
mpact PwC
’
s approach.
Non-audit services
The in
dep
en
den
ce and o
bje
ctivit
y of th
e non
-au
dit se
rv
ice
s
provid
ed by the ex
terna
l Auditor to th
e Group are s
afeg
uarde
d by
IH
G’s Audit an
d Non
-Aud
it Ser
vi
ces P
re-
App
roval Policy. The Policy
is reviewe
d by the Audi
t Co
mmit
tee ann
ually.
The Po
licy req
uires th
at pre
-ap
proval is o
btain
ed from th
e Audit
Co
mmit
tee for a
ll ser
vic
es p
rovide
d by the exte
rnal Au
ditor be
fore
any work ca
n com
men
ce, in lin
e with US S
EC require
ment
s witho
ut
any de minim
is thres
hol
d and U
K ethic
al st
anda
rds. Th
e Co
mmit
tee
reviewe
d the aud
it and no
n-
audi
t fees i
ncurre
d with the ex
tern
al
Auditor a
nd note
d that the
re had b
ee
n no proh
ibite
d ser
vic
es
(as de
ine
d by SOX or unde
r UK e
thica
l stan
dard
s) provided to the
Group d
uring th
e year
. The C
omm
itte
e is proh
ibited f
rom del
ega
ting
non-
audit servic
es approval t
o managem
ent and compliance with
the p
olicy is a
ctivel
y mana
ge
d.
IH
G is co
mmit
ted to ma
intaini
ng non
-a
udit fe
es at a low l
evel and
the C
ommit
tee i
s co
gnis
ant of inves
tor advi
sor
y b
odie
s’ guid
elin
es
on no
n-
audit fe
es
. Durin
g 202
1, 11% of se
r
vice
s provid
ed to the
Group we
re non
-a
udit se
r
vice
s (20
20: 18
% provid
ed by E
Y
),
prim
arily rel
ated to Sys
tem and O
rgani
satio
n Co
ntrols (SO
C)
Rep
or
ts. D
eta
ils of the fe
es p
aid to P
wC for n
on
-aud
it and s
tatutor
y
audit wo
rk durin
g 202
1 can b
e foun
d on pa
ge 16
4. Th
e Co
mmit
tee
is s
atis
ie
d that the C
omp
any was co
mpli
ant during th
e year wi
th
the FRC
’s Ethical a
nd Audi
ting St
anda
rds in res
pe
ct of the s
co
pe
and m
aximum p
ermi
tte
d level of fe
es in
curre
d for non
-au
dit se
r
vice
s
provid
ed by P
wC. W
here n
on-
audi
t work is p
er
forme
d by P
wC,
both th
e Co
mpany and P
w
C ens
ure adh
erenc
e to robu
st proc
es
se
s
to prevent the o
bje
ctivit
y an
d inde
pen
den
ce of th
e exter
nal Audi
tor
being comprom
ised.
Ris
k an
d as
sur
anc
e – Inte
rna
l Audit
The C
omm
itte
e dis
cus
ses a
nd app
roves the I
nternal Au
dit annu
al
pla
n, which a
ims to provid
e obje
ctive an
d insi
ghtfu
l ass
uranc
e that
app
ropriate c
ontrols a
re in pla
ce to sup
por
t our s
trateg
y and grow
th
ambi
tions
. Progre
ss ag
ains
t the Inte
rnal Aud
it plan i
s repo
rte
d at ea
ch
me
eting an
d, during 2
02
1, the C
ommit
tee revi
ewed th
e allo
catio
n of
intern
al audit re
sou
rces to a dy
namic i
nhere
nt risk p
roi
le, incl
uding
organ
isati
onal a
nd proc
es
s cha
nge
s which h
ave resulte
d from
Covi
d-19 dis
ruptio
n. Org
anis
ation
al culture h
as be
en a d
ei
ned p
ar
t
of our ri
sk man
age
ment sy
stem for s
everal ye
ars an
d therefo
re is
subj
ect to re
gular fo
cus a
s an integra
l par
t of inter
nal aud
it work.
The 2
02
2 pla
n pres
ented to th
e Co
mmit
tee in D
ec
emb
er 20
21 wil
l
maint
ain foc
us on th
e integrit
y of th
e risk ma
nag
eme
nt and inte
rnal
contro
l system a
nd will a
sse
ss th
e ado
ption an
d ope
ration o
f evolved
govern
ance f
ramewo
rks (for example, c
omp
lianc
e with n
ew poli
cies
,
tal
ent fram
eworks, p
rocure
ment p
roce
ss
es, h
otel initi
ative del
iver
y
,
business cont
inuity pla
ns and s
upply cha
in r
esilience a
rrangemen
ts
).
The p
lan al
so aim
s to identif
y an
d con
sid
er othe
r sou
rces of a
ss
uranc
e
availab
le to the B
oard and s
eni
or man
age
ment in re
latio
n to overall
obje
ctive
s and ex
terna
l disc
los
ures an
d the level o
f relian
ce whi
ch
can b
e pla
ce
d on the
se s
ource
s in the s
hor
t to me
dium term
.
97
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Audit C
omm
itte
e Rep
or
t
A
udit C
ommi
ttee Repor
t
c
o
nti
nu
e
d
Followin
g con
side
ration
, the Co
mmit
tee c
on
irme
d its a
gree
ment
to the 20
22 I
nternal Au
dit pl
an, inc
ludin
g the as
suran
ce ob
jec
tives
ide
ntii
ed. T
he C
ommit
tee revi
ews the re
sult
s of com
plete
d audi
ts
and o
bse
rvati
ons fro
m other o
ngoin
g ass
uranc
e and c
ontrol
improvem
ent su
ppo
rt
, as well a
s actio
ns t
aken by mana
gem
ent
in res
pon
se to Intern
al Audi
t’s work.
The f
unctio
nal e
ec
tivene
ss of I
nterna
l Audit is a
ss
es
sed o
n an
ong
oing ba
sis a
nd rep
or
ted to the C
ommi
tte
e through
out the ye
ar
.
Duri
ng 202
1, this h
as involve
d dis
cus
sion
s bet
wee
n the C
ommi
tte
e
Cha
ir and p
art
ners f
rom third-
par
t
y par
tne
r irm
s, fe
edb
ack from
audite
es a
nd se
nior le
ad
ers
hip and a
ss
ess
me
nt of executio
n agai
nst
meth
odo
logy. This ha
s highligh
ted po
sitive fe
edb
ack o
n the ba
lanc
e
bet
wee
n cha
llen
ge and s
uppo
r
t provide
d to man
agem
ent an
d the
agile d
evelo
pme
nt of the au
dit pla
n and id
enti
ie
d opp
or
tunitie
s
for co
ntinuo
us enh
anc
eme
nt of as
suran
ce rep
or
ting an
d use of
tech
nolo
gy to sup
por
t execu
tion.
Gov
ernance and compliance
The C
omm
itte
e is res
pon
sib
le for review
ing the G
roup’s Cod
e of
Co
nduc
t (a revised ve
rsio
n of whic
h was ap
proved in D
ec
emb
er 20
21)
and related policies.
Looking f
orward
Duri
ng 202
2, th
e Co
mmit
tee wil
l remain fo
cus
ed o
n the key areas of
resp
on
sibilit
y de
leg
ated to it by the B
oa
rd, ensu
ring that s
tan
dards
of go
od gover
nanc
e are maint
aine
d and th
at app
ropriate a
ssu
ranc
e
is obt
aine
d acro
ss all a
reas of th
e bus
ine
ss, w
ith a par
ticu
lar foc
us
on the G
roup’s princip
al ris
ks, co
ntrol environ
ment a
nd app
roach
to in
anci
al repo
rti
ng tak
ing into ac
cou
nt develo
pme
nts in rep
or
ting
resp
on
sibiliti
es in
cludin
g thos
e rec
omme
nde
d by the TCF
D, the
con
sid
eratio
n of clim
ate risk in p
repar
ation of th
e in
ancia
l state
ment
s
and ch
ang
es in the g
overnan
ce e
nvironme
nt, pa
rtic
ularly t
hos
e
relate
d to chan
ges i
n the audi
t regim
e.
Ex
tern
al Audito
r
In Augu
st 20
19, the C
omp
any annou
nce
d the B
oard
’s intention to
prop
ose to s
hareh
old
ers th
at Pw
C be ap
poi
nted as th
e Co
mpany
’s
sta
tutor
y Auditor fo
r the i
nanc
ial year e
ndin
g 31 D
ece
mbe
r 202
1.
The au
dit ten
der p
roce
ss un
der
t
aken was exp
laine
d in de
tail in
the 20
19 Ann
ual Rep
or
t and Fo
rm 20
F an
d the app
ointm
ent was
con
irm
ed by sh
areh
olde
rs at the 2
02
1 AGM
.
A det
aile
d audit p
lan was re
ce
ived from P
w
C at the b
eginn
ing of
the au
dit cycle for th
e 202
1 
inanc
ial yea
r
, whi
ch gave an over
view
of its a
pproa
ch to the au
dit, ou
tlining th
e signi
ic
ant ris
k area
s and
in par
tic
ular the a
ppro
ach to mate
rialit
y and s
co
ping of th
e audit
.
The C
omm
itte
e regul
arly reviewe
d the s
igni
ic
ant audit r
isks an
d
as
ses
se
d the pro
gres
s of the au
dit throu
ghou
t the year.
The C
omm
itte
e as
ses
se
d P
wC
’s per
forma
nce, in
clud
ing its
inde
pe
nde
nce, e
ec
tivene
ss a
nd obj
ecti
vity. As par
t of its rev
iew,
the C
ommit
tee d
etermi
nes th
e inde
pe
nde
nce of th
e exte
rnal
Auditor, consi
derin
g, amo
ng othe
r things
, its ch
allen
ge to
man
age
ment an
d level of p
rofes
sion
al sc
eptic
ism, th
e amou
nt
of time p
as
sed s
inc
e a rotation o
f audit p
ar
tner a
nd the leve
l of
non
-au
dit work th
at it und
er
takes (det
ails of w
hich c
an be fo
und
on pa
ge 16
4). Gile
s Han
nam too
k on the rol
e of le
ad aud
it par
tne
r
for the 
irs
t time in 20
21 a
nd will b
e requi
red to rotate af
ter 
ive
years to s
afeg
uard P
wC
’s indep
en
denc
e.
The e
ec
tivene
ss o
f the exte
rnal au
ditor is eva
luated by th
e Audit
Co
mmit
tee thro
ugh a fee
dba
ck que
stio
nnaire s
ent to C
ommit
tee
mem
ber
s and a nu
mbe
r of sen
ior I
HG em
ployee
s. Th
e 202
0
evaluati
on was th
e last o
f EY a
s outgoi
ng audi
tor
; the s
ur
vey
ide
ntii
ed th
e areas th
at worked we
ll in the E
Y audi
t proc
es
s and
as
ses
se
d if ad
equ
ate plan
s were in pl
ace fo
r Pw
C
’
s i
rst yea
r
.
The
re were no are
as id
enti
ied w
hich re
quire
d Pw
C
’
s sp
eci
ic fo
cus
.
An evalu
ation was a
lso c
omp
leted p
rior to the 2
02
1 year-en
d; the
Co
mmit
tee c
oncl
ude
d that the P
w
C audit te
am was p
roviding
the req
uired q
ualit
y in rel
ation to the p
rovisio
n of the se
r
vice
s.
The au
dit tea
m had s
hown the n
ec
es
sar
y co
mmitm
ent an
d abilit
y
to provide th
e ser
vi
ces to
geth
er with a d
emo
nstrab
le de
pth of
knowledge,
robust
ness, independence and
objectiv
ity as wel
l
as an ap
prec
iation o
f comp
lex is
sue
s. Th
e team h
ad po
se
d
construct
ive
challenge
to ma
nagement wher
e appr
opria
te.
In ad
dition, q
ualit
ative co
nsid
eratio
ns were t
aken into ac
count
.
The
se fo
cuse
d on th
e depth o
f knowl
edg
e of the ex
terna
l auditor
whic
h was evid
enc
ed by:
•
co
ntinue
d me
eting
s with se
nior m
anag
eme
nt and exec
utives
across the
business;
•
frequent go
vernance sessions wit
h management, includ
ing
a focu
s on the p
lannin
g and s
tatus of wo
rk by key workstream
as well a
s the st
atus of th
e dep
loyme
nt of P
wC
’s tools an
d
technology acr
oss the audit.
The gov
ernance sessions focused
on key mile
stone
s and p
rovide
d a way for any matte
rs to be
es
cal
ated an
d deal
t with on a tim
ely b
asis
;
•
vario
us pri
vate meeti
ngs with t
he Ch
air of the B
oard, th
e Audit
Co
mmit
tee C
hair an
d the he
ad of Inte
rnal Au
dit;
•
the p
rovisio
n of a ‘
irst i
mpres
sio
ns’ rep
or
t and i
nsight
s into
the G
roup’s proce
sse
s and c
ontrol
s; and
•
the a
udit pl
an, inc
ludin
g signi
ic
ant ris
ks, and h
ow Pw
C
’s
app
roach evo
lved as th
e pro
ile of ri
sks ch
ange
d.
Over
all, no sig
ni
icant i
ssu
es we
re raise
d in the revi
ew of Audito
r
pe
rfor
manc
e and e
ec
tivene
ss a
nd, as a re
sult, th
e Co
mmit
tee
con
clud
ed th
at Pw
C provid
es an e
ec
tive audit a
nd mai
ntain
s
independence and ob
jectivity
.
The G
roup ha
s com
plie
d with the re
quire
ment
s of St
atutor
y Audit
Ser
vi
ces fo
r La
rge Co
mpan
ies M
arket Investi
gation (M
and
ator
y
Us
e of Co
mpeti
tive T
e
nde
r Proc
ess
es a
nd Audit C
om
mitte
e
Res
pon
sibili
ties) Orde
r 2014
, which re
lates to th
e frequ
ency an
d
govern
ance o
f tende
rs for th
e app
ointme
nt of the ex
terna
l auditor
and th
e set
ting of a p
olicy o
n the provis
ion of n
on-
aud
it ser
vi
ces
.
Gove
rn
an
c
e
98
IHG
|
Annual R
epo
rt a
nd Form 20

F 202
1
Sig
ni
ica
nt ma
tte
rs in th
e 20
21 Fi
nan
cia
l Sta
tem
ent
s
Are
a for f
oc
us
Is
su
e/R
ole o
f th
e Co
mmi
tte
e
C
onclusions/
Actions taken
Accoun
tin
g f
or
IH
G Rewa
rds
Acc
oun
ting fo
r IH
G Rewa
rds re
quire
s
signiicant
use of est
imation
techniques
and r
epresents
a ma
teria
l def
erred
rev
enue
bal
anc
e. T
he C
ommi
tte
e revi
ews th
e
controls
, judgements
and estima
tes r
elated
to ac
cou
nting fo
r IH
G Rewa
rds
.
The C
om
mit
tee r
eviewe
d th
e defe
rred r
evenu
e bal
anc
e an
d que
stio
ne
d the va
luat
ion
app
roa
ch, th
e res
ults o
f the ex
tern
al ac
tua
rial rev
iew an
d pro
ce
dure
s co
mpl
ete
d, to
dete
rmin
e the b
rea
kag
e ass
ump
tion fo
r out
st
and
ing I
HG Rew
ards p
oint
s. T
he C
omm
itte
e
revie
wed a p
ape
r from m
an
age
me
nt outl
inin
g curre
nt loyal
ty t
rend
s (b
oth me
mb
er
be
havi
our, which re
main
s dis
tor
ted d
ue to th
e pan
de
mic, an
d pl
anne
d ch
ang
es to
pro
gram
me be
ne
i
ts). A mo
di
ie
d app
roac
h was a
dop
ted u
sing p
re
-
Cov
id be
havi
our
pat
ter
ns as a b
as
e but g
ivin
g som
e wei
ght to ac
tivi
ty du
ring t
he pa
nde
mic a
nd in
cor
por
ating
es
tima
ted im
pac
ts o
n mem
be
r eng
age
me
nt of fu
ture kn
own p
rogra
mme c
han
ge
s.
The C
om
mit
tee c
on
clu
de
d that th
e def
erre
d reven
ue ba
lan
ce is a
ppro
pri
atel
y sta
ted.
Accoun
tin
g f
or
the S
yste
m Fund
Give
n the u
niqu
e natu
re of th
e Syst
em
Fund, th
e Co
mmit
te
e review
s the c
ontro
ls
and p
roc
es
se
s rel
ated to S
yste
m
Fund accounting.
The C
om
mit
tee m
et wi
th se
nio
r in
anc
e man
ag
eme
nt to revi
ew an
d evalu
ate the ri
sk ar
eas
as
so
ciate
d wit
h the Sy
ste
m Fund. Th
e Co
mmi
tte
e revie
wed a p
ap
er fro
m man
age
me
nt
sum
mari
sin
g the p
rinc
ipl
es de
term
inin
g the all
oc
atio
n of reve
nue
s and ex
pe
nse
s to th
e
Sys
tem Fund
, and th
e rel
ated g
overn
anc
e and i
ntern
al c
ontro
l enviro
nme
nt. T
he C
omm
itte
e
co
ncl
ude
d that t
he ac
co
untin
g trea
tmen
t of the S
yste
m Fund an
d rela
ted di
sc
los
ures
were
appropr
iate.
Expected
cred
it
losses
Es
tima
ting exp
ec
ted c
red
it lo
ss
es o
n trad
e
rec
eiva
ble
s co
ntin
ues to b
e su
bje
ct to
an in
crea
se
d leve
l of un
ce
rt
aint
y. The
Committee reviews the pr
ovision and
co
nsi
der
s the a
de
qua
cy of the d
is
clo
sure
.
The C
om
mit
tee r
eviewe
d ma
nag
em
ent
’s pap
er
s set
ting o
ut th
e app
roac
h to ca
lcu
latin
g
the p
rovis
ion fo
r exp
ecte
d cre
dit l
os
se
s, in
clud
ing up
dat
es ma
de to th
e provi
sio
n matr
ix
to re
le
ct the G
rou
p’s most re
ce
nt ca
sh c
oll
ect
ion ex
per
ien
ce. E
x
pe
cted c
red
it lo
ss
es are
stil
l subj
ec
t to inc
reas
ed u
nc
er
tai
nty a
s, al
thou
gh c
ash c
oll
ec
tion h
as im
prove
d, the
prop
or
tio
n of ol
de
r deb
t rema
ins h
igh an
d owne
r liq
uidi
ty ri
sk c
ontin
ue
s. Fac
tors
co
nsi
dere
d in
clu
ded t
he over
all im
provem
ent i
n ca
sh co
lle
cti
on, th
e age
ing o
f rec
eiva
ble
s,
own
ers k
nown to b
e in 
ina
nci
al dis
tres
s an
d the ex
pe
cted m
itig
ating i
mpa
ct of p
ayme
nt
pla
ns
. The C
om
mit
tee c
on
clud
ed i
t agre
ed w
ith th
e bas
is of c
alc
ulat
ion an
d tha
t the re
late
d
disclosures w
ere appr
opriate.
Impairment
tes
ting
Impairment reviews require signiic
ant
judgement
in
estimat
ing r
ecover
able
valu
es of a
ss
ets o
r ca
sh
-
gen
era
ting un
its
and t
he C
ommi
tte
e the
refo
re scr
utini
se
s
the met
hodologies a
pplied and
the i
nherent
se
nsi
tivit
ies i
n dete
rmini
ng any p
otent
ial
asse
t impairment or impairment reversal
and t
he ad
equ
acy o
f rela
ted di
sc
los
ures
.
The C
om
mit
tee r
eviewe
d ma
nag
em
ent re
po
rt
s outl
inin
g the ap
pro
ach t
aken o
n imp
airm
ent
tes
ting a
nd key as
sum
ptio
ns an
d sen
sit
iviti
es s
upp
or
ting t
he co
ncl
usi
on on t
he vari
ous
as
set c
ate
gor
ies
. The C
om
mit
tee ex
amin
ed i
n det
ail wh
eth
er trig
ge
ring eve
nts fo
r
impairment testing had o
ccurred, including testing for impairment reversal
s, and the
as
sum
ption
s ap
plie
d in e
stim
atin
g the re
cove
rabl
e valu
es w
ith a foc
us o
n the un
der
lyin
g
ca
sh pro
je
ctio
ns. I
n co
njun
ctio
n with s
of
t
ware imp
air
ment t
est
ing, th
e Co
mmi
tte
e revie
wed
man
ag
eme
nt
's co
nc
lusi
on
s in rel
ation to c
os
ts p
revio
usl
y incu
rred to i
mpl
em
ent cl
ou
d
co
mpu
ting ar
rang
em
ent
s follo
wing t
he Inte
rna
tion
al Fi
nan
cial R
ep
or
ting I
nterp
ret
ation
Co
mmit
te
e (IF
RI
C) guid
anc
e is
sue
d in M
arch 2
02
1 in rel
atio
n to ac
cou
nting fo
r co
n
igur
ation
or cust
omisation
costs in a
cloud comput
ing ar
rangement. The
Committee concluded
that i
t agre
ed w
ith th
e dec
isi
on to de
rec
og
nis
e a net $
12m of a
ss
ets w
hic
h are no l
ong
er
co
nsi
dere
d c
apit
ali
sa
ble
. The C
om
mit
tee a
gree
d wi
th the oth
er d
eter
mina
tion
s rea
che
d
on im
pair
men
t and th
at the r
elat
ed di
scl
os
ures we
re ap
prop
riate
.
Litiga
tion and
contingencies
From time to ti
me, th
e Gro
up is s
ubje
ct to
le
gal p
roc
ee
ding
s with t
he ult
imate o
utco
me
of ea
ch b
ein
g subj
ec
t to many un
ce
rt
aint
ies
.
The C
om
mit
tee r
eview
s and eva
lua
tes th
e
ne
ed fo
r provi
sio
ning a
nd c
ons
ide
rs th
e
adequacy of
the disclosur
e.
At ea
ch me
etin
g duri
ng th
e year, the Co
mmit
te
e con
si
dere
d rep
or
ts d
eta
ilin
g all ma
teri
al
litig
atio
n mat
ter
s inc
lud
ing c
omm
erci
al dis
pu
tes
. The C
om
mit
tee d
isc
us
se
d and a
gree
d
any prov
isi
onin
g requ
irem
ent
s, an
d the a
ss
oci
ated d
isc
lo
sure
s, wh
ere re
levan
t, ba
se
d
on underly
ing fact
ors.
Exceptional
items
The G
rou
p exerci
se
s judg
em
ent in p
res
enti
ng
exce
ptio
nal ite
ms
. The C
om
mit
tee re
view
s
and c
hal
len
ge
s the cl
as
si
ic
atio
n of ite
ms
as exc
epti
ona
l bas
ed o
n the
ir mate
ria
lit
y
or na
ture.
The C
om
mit
tee r
eviewe
d pa
pe
rs by ma
nag
em
ent an
d co
nsi
de
red th
e con
si
sten
cy of
trea
tme
nt and n
ature of i
tem
s cla
ss
i
ied a
s exce
ptio
nal. T
he C
om
mit
tee rev
iewe
d and
cha
lle
nge
d the s
igni
i
ca
nce, t
imin
g and n
ature of t
he exce
ptio
nal i
tems (s
ee p
age
s 16
5 to 16
7)
whi
ch co
mpr
ise $
4m f
air val
ue lo
ss re
late
d to an a
ss
oci
ate, $2
5m exp
ec
ted s
et
tle
men
t of
co
mme
rcia
l dis
pute
s, an
d $26
m exce
ptio
nal t
ax cre
dit o
n the c
han
ge to th
e UK c
orp
orate
ta
x rate. T
he C
ommi
tte
e co
ncl
ude
d th
at the di
sc
los
ures a
nd th
e treat
men
t of the i
tems
shown
as ex
c
eptiona
l wer
e appr
opriat
e.
Going
concern
and viability
Cov
id-1
9 con
tinu
es to im
pac
t the
pro
it
abi
lit
y and c
as
h gen
era
tion o
f the
Gro
up and t
he lev
el of un
ce
rt
aint
y in
planning scenarios. The Commit
tee re
views
man
ag
eme
nt
’s ina
nci
al mo
de
llin
g to
conclude on
the a
ppropria
teness of
the
goi
ng co
nc
ern an
d via
bili
ty s
tate
me
nt.
The C
om
mit
tee r
eviewe
d an
d cha
lle
nge
d the s
ce
nar
ios c
ons
id
ere
d by man
age
me
nt, th
e
det
ail
ed c
as
h low fo
rec
as
ts an
d the mi
tiga
ting a
ctio
ns avai
lab
le to ma
nag
em
ent c
ons
ide
red
in it
s goin
g co
nce
rn as
se
ss
me
nt to Ju
ne 20
23 an
d the th
ree ye
ar via
bili
ty a
ss
es
sm
ent an
d
co
ncl
ude
d the
se we
re ap
prop
riate
. The C
om
mit
tee a
lso re
viewe
d an
d cha
lle
nge
d the rev
ers
e
stre
ss te
st a
ss
umpti
ons to c
on
ir
m the vi
abil
it
y of the G
roup. T
he C
om
mit
tee rev
iewe
d goi
ng
co
nce
rn di
scl
osu
res (
pag
e 14
9) and th
e via
bilit
y st
ate
men
t (pa
ge
s 48 to 4
9) an
d is s
atis
ie
d
these ar
e appr
opriat
e.
Climate ris
k
In p
rep
arin
g the 
ina
nci
al st
atem
ent
s,
as
sum
ption
s in re
sp
ect o
f the 
ina
nci
al
imp
act o
f clim
ate rel
ate
d mat
ter
s have
been made.
The Committee consider
ed the
proportionate
and consist
ent considera
tion of
climat
e-related
mat
ter
s acro
ss t
he An
nual R
ep
or
t and in p
ar
tic
ular t
he p
otenti
al imp
ac
t on for
wa
rd-
loo
kin
g
as
sum
ption
s in th
e in
anc
ial s
tate
me
nts th
at sup
po
rt c
on
clu
sio
ns in are
as s
uch a
s imp
airm
ent
,
defe
rre
d tax a
ss
et
s, goi
ng co
nc
ern a
nd via
bili
ty a
ss
es
sm
ent
s, an
d the as
so
ci
ated d
isc
los
ure
s.
UK d
efe
rred
ta
x ass
et
Give
n the s
ize of t
he Gro
up’s UK d
efer
red t
ax
as
set ($
127m), the C
om
mit
tee re
viewe
d an
d
cha
lle
nge
d the key a
ss
umpti
ons d
eter
mini
ng
the re
cove
rab
ilit
y of th
e defe
rre
d tax a
ss
et
and w
heth
er th
is sh
oul
d be di
sc
los
ed a
s a
signiic
ant estimate.
The C
om
mit
tee r
eviewe
d pa
pe
rs by ma
nag
em
ent wh
ich c
on
irm
ed t
he es
tim
ates u
se
d to
sup
po
rt th
e rec
over
y of th
e UK d
efe
rred t
ax a
ss
et were c
on
sis
tent w
ith tho
se u
se
d in the
imp
airm
ent a
nd go
ing c
onc
ern a
nd vi
abil
ity a
ss
es
sm
ent
s. G
iven th
e rec
over
y to le
vels o
f
pro
it
abi
lit
y as
sum
ed in th
es
e es
tima
tes, t
he C
ommi
tte
e co
ncl
ude
d th
at it ag
ree
d with th
e
rec
ogn
itio
n of the d
efe
rred t
ax a
ss
et, th
at thi
s was no
t a sign
i
ica
nt es
tima
te, as a m
ateri
al
cha
nge i
n es
timate i
s not ex
pe
cte
d in the n
ext 1
2 mon
ths, a
nd th
at the di
sc
los
ures
were
appropr
iate.
99
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Audit C
omm
itte
e Rep
or
t
R
es
pon
sible Bus
ines
s C
ommi
t
t
e
e Repor
t
I am pl
ea
se
d to pre
se
nt th
e Res
po
ns
ibl
e Bu
sin
es
s
Co
mmit
te
e’
s r
ep
ort f
or th
e year
, inc
lu
ding a
n up
date
on th
e Voice of t
he Em
ployee e
ng
age
me
nt pl
an
.
The im
pac
t of Covi
d-19, the retur
n of corp
orate e
mploye
es
to the o
ice a
nd the intro
ducti
on of hybri
d workin
g were
high on th
e Co
mmit
tee’s agen
da, al
ongs
ide th
e launc
h of
the G
roup’s Journey to T
omo
rrow resp
ons
ible b
usin
es
s plan,
the e
stab
lish
ment o
f TCFD rep
or
ting pro
ce
dures an
d the
inc
orpo
ration of c
limate
-re
late
d iss
ues into th
e broa
der
strate
gic and ri
sk pro
ce
sse
s.
The C
omm
itte
e has c
ontinu
ed to sh
ape a
nd trac
k the road
map
to supp
or
t the G
roup’s 2030 re
spo
nsib
le bu
sine
ss c
ommi
tment
s,
end
ors
ing the s
trategic p
rioriti
es to be a
ddres
se
d whic
h
unde
rpin th
e bol
d, long
-term a
mbitio
ns an
d are des
igne
d to
help s
hap
e the futu
re of resp
ons
ible tr
avel togeth
er with th
os
e
who s
tay
, wor
k and pa
rtn
er with I
HG.
I would li
ke to thank all tho
se ac
ross th
e bus
ine
ss wh
o have
as
siste
d the C
ommi
tte
e in ful
illin
g its role ove
r the year,
es
pec
ially th
ose w
ho have worked s
o hard to drive th
e Group’s
environ
ment
al and s
oci
al age
nda fo
rwa
rd as well as s
upp
or
ting
the well
bein
g of its e
mploye
es duri
ng the pa
nde
mic.
Jill McDo
nald
Cha
ir of the Re
spo
nsi
ble B
usin
es
s Com
mit
tee
21 Feb
ruar
y 20
2
2
In ad
dition to th
e areas o
utline
d ab
ove, the Co
mmit
tee’s key
resp
on
sibiliti
es an
d focu
s areas ove
r the year h
ave bee
n:
•
mo
nitoring th
e prog
ress a
gain
st the G
roup’s 2030 re
spo
nsi
ble
business commit
ments;
•
mo
nitoring th
e Grou
p’
s carb
on an
d ene
rgy redu
ctio
n strateg
y
and p
lan;
•
review
ing the G
roup’s DE&I in
itiative
s and ob
jec
tives;
•
imp
lem
enting th
e rec
omme
ndati
ons of th
e TCFD;
•
as
se
ssi
ng the G
roup’s respo
nsib
le pro
curem
ent ag
enda; a
nd
•
overs
ee
ing the G
roup’s Human R
ights p
rogram
me.
Membership
and
attend
ance a
t meet
ings
The C
omm
itte
e’s membe
rshi
p and at
tend
anc
e at mee
tings are s
et
out on p
age 8
1. Th
e Chai
r of the B
oard, C
EO
, Ge
nera
l Co
unse
l and
Co
mpany S
ecret
ar
y
, E
xecu
tive Vic
e Pres
ident
, Glo
bal C
orp
orate
Aair
s and th
e Chief S
ust
aina
bilit
y O
ic
er at
tend
ed all m
eetin
gs
hel
d during th
e year.
Rep
or
ting to t
he B
oar
d
The C
omm
itte
e Cha
ir upd
ates the B
oard o
n all key issu
es rai
se
d at
Co
mmit
tee me
etin
gs. Pa
per
s and min
utes for e
ach m
eeti
ng are als
o
circul
ated to all B
oard me
mb
ers, w
ho are invite
d to reque
st fur
the
r
inform
ation wh
ere ne
ce
ss
ar
y
.
Effe
ct
ivene
s
s of th
e Com
mit
tee
The C
omm
itte
e’s eecti
vene
ss co
ntinue
s to be mo
nitore
d and
as
ses
se
d regu
larly by the C
omm
itte
e’s Chair an
d the Ch
air of the
Bo
ard. In 20
21, th
e Co
mmit
tee wa
s also revi
ewed a
s par
t of the
intern
al Bo
ard evaluati
on proc
es
s, wh
ere it was c
onc
lude
d that
the C
ommit
tee re
main
s ee
ctive.
Focu
s are
as a
nd a
ctivi
tie
s
Responsible business commi
tments
In a year th
at saw th
e laun
ch of the G
roup’s Journ
ey to T
om
orrow
resp
on
sible b
usi
nes
s pla
n, the C
ommit
tee rev
iewed th
e 202
1
strate
gic prio
ritie
s that sup
por
t the ove
rall 20
30 res
po
nsib
le
bus
ine
ss co
mmitm
ents
, and dis
cus
se
d the ap
proac
h to hotel own
er
eng
age
ment o
n the co
mmitm
ents an
d impa
ct of th
e comm
itment
s
on em
ployee
s. Th
e Co
mmit
tee fur
th
er co
nsid
ere
d how the
com
mitme
nts alig
n to the Grou
p’
s purp
ose to p
rovide T
rue H
ospi
talit
y
for Go
od a
nd how they c
omp
are to thos
e of the G
roup’s comp
etitors,
and endorsed t
he appr
oach t
o the
2021 responsible
business
strategic p
rioritie
s.
Furt
her i
nform
atio
n on ou
r 10
-ye
ar res
po
nsi
ble b
usi
ne
ss pl
an c
an be
foun
d on p
age
s 23 to 3
1.
Carbon and energy
reduction
The C
omm
itte
e reviewe
d the Gro
up’
s de
carb
onis
atio
n and en
ergy
redu
ction s
trategy a
nd pathway
, noting th
e prop
ose
d acti
ons a
cros
s
three m
ain are
as: en
ergy e
ic
iency in t
he Grou
p’
s existin
g hotel
est
ate; so
urcing re
newabl
e ene
rgy; and deve
lopin
g zero
-
carb
on
new-
buil
d hotel
s. The C
om
mitte
e als
o app
roved the G
roup’s
upgr
ade
d scie
nc
e-
ba
sed t
arget to re
duc
e carb
on em
iss
ions to a
lign
with the m
ost a
mbitio
us go
als of th
e Paris Agre
em
ent to keep gl
obal
warming within 1.5°C.
Diversity
, equity and inclusion
As pa
rt of i
ts as
se
ssm
ent of th
e Group’s DE&
I age
nda, d
uring the ye
ar
the C
ommit
tee e
ndo
rse
d the roll
-
out of c
ons
ciou
s incl
usio
n trainin
g
for all c
orpo
rate emp
loyees w
ith a co
mmitme
nt to improvin
g DE
&I
dat
a coll
ecti
on and m
eas
urem
ent. As at 3
1 De
ce
mbe
r 202
1, 38
% of
our S
enio
r Lead
ers we
re wome
n, in add
ition to wom
en co
mpri
sing
41% of the C
omp
any’s Boa
rd.
Key dutie
s and r
ole of t
he C
omm
itte
e
K
ey
objectives
and summary of r
espons
ibili
ties
The C
omm
itte
e reviews an
d adv
ise
s the B
oard on th
e Group’s
responsible
business objecti
ves and
stra
tegy
, including
its i
mpact
on the e
nvironm
ent and c
limate ch
ang
e; soc
ial, co
mmuni
ty an
d
huma
n rights i
ssu
es; it
s appro
ach to su
sta
inabl
e devel
opme
nt and
resp
on
sible p
rocure
ment
; and s
takeh
olde
r eng
age
ment i
n relatio
n
to the Gro
up’
s app
roach to re
spo
nsib
le bu
sine
ss
. The C
omm
itte
e
is als
o res
pon
sibl
e for as
se
ssin
g the B
oard
’
s eng
age
ment wi
th the
work
force a
nd the G
roup’s DE&I a
gend
a.
The C
omm
itte
e’s r
ole, re
sp
onsi
bilitie
s and au
thorit
y de
leg
ated to
it by the B
oard are s
et out in it
s T
e
rms of Re
feren
ce (
T
o
R), whic
h
are re
viewed annually and approv
ed by the Board.
The ToR are ava
ilab
le at
w
ww.ihgplc.
com/inv
estors
under
Co
rpo
rate gover
nanc
e.
Gove
rn
an
c
e
100
IHG
|
Annual R
epo
rt a
nd Form 20

F 202
1
Human Rights progr
amme
The C
omm
itte
e rec
eived u
pdate
s on the G
roup’s Human R
ights
progr
amme, n
oting the p
rogre
ss ma
de in key workstre
ams re
lating
to resp
ons
ible l
abo
ur prac
tice
s, ethic
al rec
ruitm
ent and a
nti-h
uman
tra
icki
ng. Th
e Com
mit
tee als
o reviewe
d the 20
21 M
ode
rn
Slav
er
y Stat
ement.
Looking f
orward
Duri
ng 202
2, th
e Co
mmit
tee wil
l contin
ue to focu
s on em
bed
ding
the 20
30 re
spo
nsib
le bu
sine
ss c
ommit
ment
s and TCFD re
po
rtin
g.
Our R
es
pon
sib
le B
usi
nes
s Re
por
t i
s availa
ble a
t
www.ihgplc.
com/
responsible-business
TCF
D
The C
omm
itte
e as
ses
se
d key TCFD workstre
ams
, inclu
ding an
anal
ysis of th
e pote
ntial imp
act to the G
roup of th
e mos
t materi
al
clim
ate-
relate
d risks a
nd op
por
tuniti
es. I
t als
o con
side
red p
lans
to emb
ed cli
mate ris
k con
side
ration
s into its st
rategic a
nd risk
management pr
o
cesses and the
appropr
iat
e gov
ernance framew
ork
to achieve thi
s. Furth
er info
rmation o
n TCFD is i
nclu
ded o
n pag
es 32
to 3
5.
Responsib
le pr
ocuremen
t
The Committee consider
ed reports from
management on
the
Res
pon
sibl
e Procu
remen
t progra
mme, foc
usin
g on sup
ply ch
ain ris
k,
supp
lier d
ivers
ity an
d the s
ele
ction o
f supp
lier
s that will s
uppo
rt th
e
Group’s plan
s for c
arbo
n emis
sio
n and was
te redu
ction
. For more
inform
ation on th
e resp
on
sibl
e procu
remen
t progra
mme, s
ee
pa
ge 3
9.
V
oice o
f t
he E
mplo
y
e
e
Additi
onall
y
, Jil
l was brie
fed by the G
lob
al HR L
ead
ers
hip team
on bro
ade
r cultural i
nsigh
ts and a
n organi
satio
nal ‘puls
e’ sur
vey
acro
ss all e
mploye
e pop
ulatio
ns.
Dis
cus
sio
n topic
s incl
ude
d IH
G’s resp
ons
e to the pan
demi
c;
emp
loyee well
bein
g; fee
dba
ck on execu
tive remun
eratio
n;
lexi
ble/remote work
ing an
d return to the o
ic
e; indu
str
y
pro
itab
ilit
y and th
e comp
etitive l
ands
cap
e; le
ade
r
com
munic
ation
s; tal
ent at
tracti
on; onb
oardin
g and rete
ntion;
pe
rso
nal an
d care
er deve
lopm
ent
; and agi
le ways of work
ing.
Me
eting
s with em
ployee
s conti
nued to b
e vir
tual in 2
02
1 due
to the co
ntinuatio
n of the p
ande
mic. Ad
dition
al en
gage
ment
and a
ctiviti
es und
er
taken by J
ill during th
e year in
clud
ed:
•
mo
nitoring a
nd review
ing the c
ontent an
d fee
dba
ck from
glob
al ‘all empl
oyee’ CEO c
alls; an
d
•
review
ing emp
loyee da
shb
oard
s and sur
vey res
ults
.
Insights and learnings
Jill provi
ded re
gula
r fee
dbac
k to the Res
po
nsib
le Bu
sine
ss
Co
mmit
tee an
d the B
oard throu
ghou
t the year
, with key Bo
ard
dis
cus
sion
s tak
ing pl
ace aro
und the in
sight
s and ac
tion p
lanni
ng
arising
from emplo
yee engagement survey r
esults. Throug
h this
fee
dba
ck, th
e Bo
ard gain
ed valu
abl
e insigh
ts into emp
loyee
senti
ment d
uring the p
and
emic an
d throug
hout th
e return
to the o
ice
.
Pla
ns for 2
02
2
The B
oard h
as app
roved the tra
nsiti
on of the Voice o
f the
Empl
oyee resp
on
sibili
ties to D
uriya Farooqu
i with ee
ct fro
m
1 Jan
uar
y 202
2
. It is antic
ipate
d that ad
dition
al NE
Ds wil
l contin
ue
to ass
ist wi
th and su
ppo
rt Voice o
f the Emp
loyee ac
tivitie
s.
A sch
edu
le of dis
cus
sio
ns and fe
edb
ack s
es
sio
ns ha
s bee
n
arrang
ed fo
r 202
2. T
his will c
ontinu
e to enc
ompa
ss a wi
de group
of emp
loyee
s and le
ade
rs from a
cros
s all regi
ons, i
nclu
ding ERG
s
and Le
an In c
ircle
s, with fur
the
r incl
usio
n in 202
2 of h
otel ma
nage
rs
in add
ition
al loc
ation
s, to en
sure a broa
d rang
e of insi
ghts as we
ll
as co
nce
rns an
d is
sue
s are conveyed to th
e Boa
rd. Additi
onall
y
,
the B
oard inten
ds to review th
e func
tionin
g of the Voice of th
e
Empl
oyee prog
ramme to e
nsure it m
eet
s be
st pra
ctic
e and
com
plie
s with ch
ange
s in regu
lation
.
At the s
tar
t of 2
021
, Jill M
cD
ona
ld wa
s IHG
’
s de
sig
nate
d
Non-Executive
Director
(NED
) wi
th responsibility f
or w
orkforce
en
gag
em
ent (
Voice of t
he Em
ployee), wit
h ad
ditio
na
l sup
po
rt
provi
de
d by Duriya Faro
oqu
i, Da
nie
la B
aron
e So
are
s an
d
Jo H
arlow. Jill h
as al
so b
ee
n su
pp
orte
d by th
e Gro
up’
s Hu
man
Res
our
ce
s (HR) tea
m, wh
ich a
s
sis
ted wi
th deve
lop
ing t
he
Bo
ard
’
s work
forc
e en
gag
em
ent p
lan a
nd p
rovide
d da
ta on
vario
us me
tric
s rel
atin
g to em
ployee
s, s
uc
h as e
mpl
oyee
engagement surve
y results.
Role and
responsibilities
Their role
and responsibiliti
es are t
o:
•
sup
por
t th
e des
ign of the s
tructu
re and co
ntent of B
oard
dis
cus
sion
s on em
ployee e
ngag
eme
nt and c
ulture;
•
evalu
ate empl
oyee eng
age
ment a
pproa
che
s and th
eir
eectiv
eness;
•
en
sure em
ployee fe
edb
ack a
nd intere
sts are f
actore
d into
the B
oard
’
s de
cisi
ons an
d KPI s
etti
ng;
•
en
sure that th
e Bo
ard, throug
h the E
xecuti
ve Com
mitte
e, ha
s
ee
ctive me
thod
s of rec
eivin
g fee
dbac
k from em
ployee
s and
com
munic
ating B
oard an
d executive d
eci
sion
s and p
rioritie
s
throug
hout the
organisati
on;
•
ensure al
l signiican
t business and budge
t proposals i
nclude
a man
age
ment a
sse
ss
men
t of the imp
act o
n empl
oyees; a
nd
•
en
sure E
xecuti
ves sh
are emp
loyee fe
edb
ack op
enl
y
,
trans
pare
ntly and in a b
alan
ce
d way
, inc
luding rev
iewing
emplo
yee
engagement
surve
ys
and o
ther em
plo
yee r
ep
orts,
including whis
tleblowing.
2021 engagement
In 20
21, th
e team ac
ted on th
e rec
omme
ndati
on to obt
ain more
direc
t input a
nd fee
db
ack from e
mploye
es in key markets o
uts
ide
the U
S and U
K and from h
otel-
ba
sed e
mpl
oyees
.
Acc
ordingl
y during th
e year
, Jill, with th
e as
sist
anc
e of Du
riya,
Dan
iela a
nd Jo, un
der
too
k a progra
mme of a
ctiviti
es to eng
age
with a cro
ss
-s
ectio
n of em
ployee
s and re
ceive
d det
aile
d fee
dba
ck
both in p
ers
on an
d through th
e Grou
p’
s emp
loyee fee
dba
ck
me
chani
sms
. They at
ten
ded a nu
mbe
r of vir
tual m
eetin
gs with
emp
loyee forum
s, inc
ludin
g lea
der gro
ups (within U
S and U
K
hotel
s, res
er
vation
s and co
rpo
rate pop
ulatio
ns) and Emp
loyee
Res
ource G
roup
s (ERGs) in the U
K
, US, I
ndia, Ph
ilippi
nes
, Chin
a
and various EME
AA countries.
101
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Responsible Business Committee R
eport
Nomina
ti
on C
ommi
ttee Repor
t
Key dutie
s and r
ole of t
he C
omm
itte
e
K
ey
objectives
and summary of r
espons
ibili
ties
The C
omm
itte
e reviews th
e com
pos
ition of th
e Bo
ard and it
s
Princ
ipal C
omm
itte
es, eval
uating th
e bal
ance o
f skill
s, expe
rien
ce,
independence
, kno
wledge a
nd di
versi
ty requ
iremen
ts bef
ore
mak
ing app
ropria
te reco
mmen
datio
ns to the B
oard as to any
cha
nges
. It al
so en
sures p
lan
s are in pla
ce for o
rderly s
ucc
es
sio
n
both for D
irec
tors an
d other s
enio
r executi
ves and i
s resp
ons
ible
for review
ing the G
roup’s senio
r lea
der
ship ne
ed
s.
The C
omm
itte
e’s r
ole, re
sp
onsi
bilitie
s and au
thorit
y de
leg
ated to it
by the Bo
ard, inc
ludin
g proc
es
ses i
n relatio
n to appo
intment
s, are
set o
ut in its Terms of Refe
renc
e (ToR), which a
re reviewed a
nnuall
y
and ap
proved by the B
oa
rd. The ToR state tha
t the Co
mmit
tee i
s
resp
on
sible fo
r con
sid
ering p
otentia
l can
didate
s for app
ointme
nt
to the Bo
ard ba
se
d on me
rit, co
gnitive a
nd pe
rso
nal stre
ngth
s with
due re
gard for th
e ben
e
its of di
versi
ty
, inclu
ding g
end
er
, a
nd so
cial,
ethnic and geographic backgrounds.
The ToR are ava
ilab
le at
w
ww.ihgplc.
com/inv
estors
under
Co
rpo
rate gover
nanc
e.
The C
omm
itte
e’s k
ey resp
onsi
bilitie
s and fo
cus are
as duri
ng the yea
r
have
be
en
:
•
as
se
ssi
ng Bo
ard and th
e Princ
ipal C
ommi
tte
es’ c
omp
ositi
on and
succession planning,
includi
ng considerat
ion of
gender balance
and ethnic and geographical diversit
y
, in accordanc
e with t
he T
oR
s
and c
ons
istent w
ith the G
roup’s DE&I Po
licy (detail
s of whic
h are
on page 25
);
•
enga
ging with
external search cons
ultancies and making
rec
omme
ndati
ons o
n appo
intme
nts to the B
oard;
•
mo
nitoring th
e E
xecutive C
omm
itte
e tal
ent and s
ucc
es
sio
n
planning; and
•
overs
ee
ing the p
er
form
ance eva
luatio
n of the B
oard, the P
rincip
al
Co
mmit
tee
s and in
dividu
al No
n-
E
xecuti
ve Direc
tors
.
Membership
and
attend
ance a
t meet
ings
The C
omm
itte
e’s membe
rshi
p and at
tend
anc
e at mee
tings are
availab
le on pa
ge 81
. All me
mbe
rs of the C
omm
itte
e are No
n-
E
xecutive D
irecto
rs. W
hen th
e Com
mit
tee co
nsi
ders m
atte
rs rel
ating
to my posi
tion, the S
eni
or Ind
ep
ende
nt No
n-
E
xecuti
ve Direc
tor (SID),
acts as Commi
ttee Chair
.
Rep
or
ting to t
he B
oar
d
The C
omm
itte
e makes re
com
men
datio
ns to the B
oard for al
l Boa
rd
app
ointme
nts. M
inute
s are circul
ated to Bo
ard me
mbe
rs and I re
por
t
bac
k to the Bo
ard on the a
ctivi
ties of th
e Co
mmit
tee foll
owing
eac
h me
eting.
Effe
ct
ivene
s
s of th
e Com
mit
tee a
nd int
erna
l evalu
atio
n
Duri
ng the yea
r
, the e
ec
tivene
ss o
f the C
ommit
tee wa
s reviewe
d as
par
t of th
e internal B
oa
rd evaluatio
n proc
es
s. It wa
s con
clud
ed th
at
the C
ommit
tee re
main
s ee
ctive.
Bo
ard c
omp
os
itio
n and s
uc
ce
ss
ion h
ave featu
red
pro
min
ent
ly on th
e Co
mmi
tte
e’
s age
nd
a aga
in in 2
021
, with
the a
pp
oint
me
nt of two n
ew No
n-
Exe
cuti
ve Dire
cto
rs in
Ma
rch 2
021
. The C
om
mitt
ee al
so over
saw B
oa
rd su
cce
s
sio
n
pl
ans w
ith th
e rec
om
men
dat
ion
s to ap
poi
nt Gra
ha
m Alla
n
as S
eni
or In
de
pe
nde
nt N
on-
E
xecut
ive Dire
cto
r an
d
Du
riya Farooq
ui a
s the N
on
-E
xecu
tive Dir
ec
tor re
sp
ons
ib
le
for th
e Gr
oup’s V
o
ice o
f the E
mpl
oyee en
gag
em
ent p
lan
.
The C
omm
itte
e’s o
verrid
ing co
nce
rn whe
n reco
mme
nding
new D
irector
s for ap
pointm
ent to the B
oard h
as be
en to en
sure
that the B
oa
rd and its C
om
mitte
es c
ontinu
e to inclu
de the b
est
rang
e of tal
ent, s
kills an
d relevan
t experi
enc
e availabl
e as wel
l
as re
le
cting ou
r sta
kehold
ers an
d the c
ommun
ities in w
hich
we ope
rate. We als
o want to ens
ure that the B
oa
rd’s
com
pos
ition a
ligns wi
th our strate
gy
.
We value dive
rsit
y and th
e advan
ce
ment of d
ivers
ity o
n the
Bo
ard and in th
e Group’s lea
der
ship c
ontinu
es to be a g
overning
factor i
n our a
pproach t
o succession.
I am ple
as
ed to rep
or
t that, a
t 31 De
ce
mbe
r 202
1, our
Bo
ard com
pos
ition exce
ed
s the t
arget for th
e prop
or
tion of
wome
n on bo
ards s
et out in th
e Ham
pton-
Alexan
der Rev
iew
(which is
sue
d its 
inal re
po
rt in Feb
ruar
y 20
21) as we
ll as the
rec
omme
ndati
on on eth
nic diver
sit
y on b
oards in th
e
Parker Review.
Patr
ick Cescau
Cha
ir of the N
omin
ation C
ommit
tee
21 Feb
ruar
y 20
2
2
Gove
rn
an
c
e
102
IHG
|
Annual R
epo
rt a
nd Form 20

F 202
1
Focu
s are
as a
nd a
ctivi
tie
s
Board and P
rincipal Committ
ee composition
and succession planning
The C
omm
itte
e conti
nue
d to review the cu
rrent and f
uture
com
pos
ition o
f the Bo
ard and it
s Princ
ipal C
omm
itte
es
.
The C
omm
itte
e con
sid
ered s
hor
t an
d med
ium term su
cce
ss
ion
pla
nning in al
l of its me
etin
gs durin
g the year
, re
lec
ting on th
e
skil
ls and exp
erie
nc
e that woul
d ben
e
it the B
oard
’s current and
future c
omp
ositio
n, whil
e taki
ng into ac
count g
end
er
, ethnici
ty
and br
oader diversi
ty considerations.
The C
omm
itte
e note
d the Bo
ard’s as
ses
sm
ent that i
t would b
ene
it
from ad
dition
al expe
r
tise in th
e techn
olo
gy and tr
avel sec
tors,
with a foc
us on ES
G res
pon
sibili
ties
. It eng
age
d an ex
ternal s
earc
h
con
sult
ancy
, Spe
nc
er Stu
art
, to ass
ist wi
th sea
rche
s for suit
abl
e
Non
-
E
xecutive D
irec
tors. S
pen
cer S
tuar
t ha
s no othe
r co
nnec
tion
with the C
om
pany or in
dividu
al Dire
ctor
s.
A can
didate s
ele
ctio
n, as
ses
sm
ent an
d inter
view pro
ce
ss was
conducted, i
ncluding
consideration
of candida
tes’
other comm
itments.
Followin
g the co
mple
tion of s
atisf
actor
y ba
ckground an
d refere
nce
che
cks by Sp
enc
er Stu
ar
t, the C
omm
itte
e reco
mme
nde
d to the
Bo
ard the ap
pointm
ent of Ri
chard A
nde
rson a
nd Da
niel
a Baro
ne
So
ares as N
on
-E
xec
utive Dire
ctor
s with ee
ct fro
m 1 March 2
02
1.
The C
omm
itte
e note
d that, at th
e time, D
aniel
a and J
o Harl
ow were
both I
nde
pen
dent N
on
-E
xec
utive Dire
ctor
s of Halm
a plc (H
alma),
but th
at Dani
ela di
d not inten
d to stan
d for re
-
ele
ction a
s a Dire
ctor
of Ha
lma an
d would retire fro
m its bo
ard from 2
2 Ju
ly 202
1.
Acc
ordingl
y
, the C
om
mitte
e’s recomm
en
dation to th
e Boa
rd to
app
oint Da
niel
a was ma
de on th
e bas
is that it di
d not co
nsi
der
the in
dep
end
enc
e of eith
er Da
niel
a or Jo to b
e impai
red by this
cross
-direc
torship.
Rich
ard later to
ok the d
eci
sion to s
tep down fro
m the Bo
ard due to
unanti
cipate
d pe
rso
nal mat
ter
s on 26 M
ay 202
1. Dan
iela’s biog
raphy
is inc
lude
d on p
age 8
4 and d
etail
s of he
r induc
tion p
lan c
an be
found o
n pag
e 93.
The Committee also
discussed and considered succession plann
ing
for the S
ID rol
e, in light of D
ale M
orris
on’s tenure and retire
ment at
the en
d of the ye
ar
. I
t reco
mme
nde
d to the B
oard that G
raha
m Allan
be ap
pointe
d to repl
ace D
ale a
s the SI
D, in light of his s
igni
ic
ant
strate
gic expe
r
tise an
d his ten
ure and co
ntribu
tion sin
ce his
app
ointme
nt to the Bo
ard in 20
20.
In ad
dition, th
e Co
mmit
tee c
ons
idere
d the rol
e of No
n-
E
xecutive
Dire
ctor res
po
nsib
le for the Voice o
f the Emp
loyee en
gage
me
nt
pla
n. It rec
omm
end
ed to the B
oard th
at Duri
ya Farooqui a
ss
ume
resp
on
sibilit
y for thi
s role from 1 J
anu
ar
y 202
2, in li
ght of he
r skill
s
and c
apa
bilitie
s and p
roximity to th
e Group’s main U
S
corporat
e oice.
A sep
arate Se
arch C
ommi
tte
e, led by D
ale M
orris
on, was e
st
abli
she
d
to lea
d the pro
ces
s for th
e sea
rch and ap
point
ment re
com
men
dation
of a new C
hair of th
e Bo
ard. A sum
mar
y of its a
ctivi
ties an
d the
proc
es
s it followe
d is s
et out o
n pag
e 93.
The C
omm
itte
e als
o reviewed a
nd dis
cus
se
d the le
ngth of te
nure
of No
n-
E
xecuti
ve Direc
tors. A
s Ian D
yso
n and Jil
l Mc
Don
ald will
reac
h nine ye
ars’ se
r
vice in 2
02
2 and J
o Ha
rlow will re
ach nin
e years
’
ser
vi
ce in 20
23, they we
re subje
ct to pa
rti
cular rev
iew.
The C
omm
itte
e con
sid
ered th
eir ap
pointm
ents i
n the co
ntext
of the b
roade
r Bo
ard com
po
sition a
nd tenure a
nd rec
ent B
oard
app
ointme
nts. T
he C
ommit
tee a
lso to
ok into ac
count th
eir tim
e
com
mitme
nts an
d other ap
poi
ntment
s, and c
onc
lude
d that e
ach of
them c
ontinu
ed to b
e able to d
evote su
icie
nt time to the B
oard an
d
their re
sp
ecti
ve Com
mit
tees a
nd that th
ey remain
ed in
dep
end
ent.
Nom
inatio
n Co
mmit
tee me
mbe
rs did n
ot par
tici
pate in the
dis
cus
sion in re
latio
n to their own tim
e co
mmitme
nt and te
nure.
Exe
cuti
ve Com
mit
tee t
ale
nt an
d su
cce
s
sio
n
Duri
ng the yea
r
, the C
omm
itte
e als
o conti
nued to revi
ew the ta
lent
and su
cc
es
sion p
lans fo
r the E
xecuti
ve Com
mit
tee and s
eni
or
man
age
ment p
ositi
ons in o
rder to en
sure the d
evelo
pme
nt of a
diverse
pipeline f
or succession. The Committee
considered the
organ
isati
on de
sign in th
e contex
t of the G
roup’s strategic p
rioriti
es
and e
ndor
se
d the app
roac
h to succ
es
sio
n plan
ning.
Inform
ation o
n the ge
nde
r bala
nce of s
enio
r man
age
ment a
s well
as the B
oard i
s inclu
de
d on pa
ge 10
0.
Performance e
valua
tions
Followin
g the ex
ternal eval
uation c
arrie
d out i
n 201
9 and an inte
rnal
evaluati
on in 20
20, during th
e year the C
om
mitte
e overs
aw an
intern
al evaluati
on of the B
oard an
d its Pri
ncip
al Co
mmit
tee
s,
det
ails of wh
ich are provi
ded o
n pag
e 94.
The C
omm
itte
e reviewe
d and di
scus
se
d the ou
tcom
es of th
e
Bo
ard and th
e Princi
pal C
ommi
tte
es’ evalu
ations
, noting th
e large
ly
favourab
le fee
dba
ck and th
e overall c
onc
lusio
ns as to th
e contin
ued
ee
ctiven
es
s of the B
oard an
d the Prin
cipa
l Co
mmit
tee
s.
In ad
dition, th
e Co
mmit
tee revie
wed an
d end
ors
ed the a
pproa
ch
to indiv
idual D
irec
tor evaluati
ons, i
nvolving th
e Chai
r unde
rt
akin
g
indiv
idua
l fee
dbac
k ass
es
sme
nts wi
th Direc
tors an
d the SI
D gath
ering
fee
dba
ck from Di
rector
s to ass
es
s the p
er
forman
ce of th
e Cha
ir
.
Furthe
r det
ails are al
so availab
le on p
age 9
4.
Looking f
orward
In 20
22
, the C
ommit
tee w
ill co
ntinue to foc
us on B
oard refre
shm
ent
pla
ns, with p
ar
ticul
ar focu
s on suc
ce
ss
ion pl
anning i
n resp
ec
t of
Non
-
E
xecutive D
irec
tors app
roac
hing a nin
e-ye
ar tenure. I w
ill als
o
trans
ition my res
pon
sibil
ities a
s Cha
ir of the C
ommi
tte
e to
Deann
a Oppenhe
imer
.
103
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Nominati
on Committee Report
D
ire
c
tor
s’
Re
m
un
e
ratio
n
Re
p
o
r
t
Remu
ner
at
ion C
ommi
ttee C
hai
r’
s stat
eme
n
t
“
As we ha
v
e cont
inued t
o na
viga
t
e thr
ough
the p
andem
ic
, man
agemen
t has k
ept f
ocus
on the long t
erm and posit
ioned the busi
ness
wel
l f
or
r
e
co
v
ery and to emer
ge str
onger
.
”
T
ab
le of contents
104
Directors
’ Remunerat
ion Report
104
Remun
eratio
n Co
mmit
tee C
hair
’s stateme
nt
10
9
At a glanc
e
110
Our a
ppro
ach to remu
nerati
on
115
Annual R
eport on Directors
’ Remuner
ation
(subjec
t to an adv
isor
y vote at th
e 202
2 AGM)
As Ch
air of the R
emun
eratio
n Com
mit
tee and o
n be
half of th
e
Bo
ard, I am pl
eas
ed to pre
se
nt the Dire
ctor
s’ Remun
eratio
n Rep
or
t
for the ye
ar end
ed 3
1 De
cem
ber 2
02
1.
We continu
ed to b
e impa
cted by th
e pand
emic th
rough 20
21
but
, whils
t volatilit
y rem
ains, we h
ave moved from c
risi
s to recover
y
and grow
th. I
n-year 
ina
ncia
l per
form
anc
e was stron
g and, in a
dditio
n,
we have rema
ined fo
cus
ed o
n pos
t-pand
emic, l
ong
-term st
rategy.
Man
age
ment h
as un
der
ta
ken bol
d step
s, suc
h as the revie
w of the
Hol
iday Inn a
nd Crown
e Plaz
a es
tate an
d digit
al, bran
d and loyalt
y
initiati
ves to take ad
vantag
e of po
st-
Covid
-19 trend
s and
opp
or
tunitie
s for futu
re growth
.
Fin
ancia
l per
form
anc
e has re
covere
d strong
ly from 20
20, with
signi
ic
ant imp
roveme
nts in glo
bal Rev
P
AR, fe
e margi
ns and c
as
h
low, and a 
inal div
ide
nd of 8
5.9
¢ is pro
pos
ed in re
sp
ect of 2
02
1.
Our p
eo
ple have re
spo
nde
d incre
dibl
y to the cha
lleng
es fa
ce
d
and it i
s enc
oura
ging to se
e that the h
eal
th, safet
y an
d wellb
eing
supp
or
t at bot
h hotel an
d corp
orate leve
ls, in
cludi
ng the s
hif
t to
hybrid wor
king arr
ange
ment
s for the l
atter, has be
en so we
ll rec
eived
.
Our ove
rall emp
loyee en
gag
eme
nt sco
re of 85% i
s a signi
ic
ant
achi
eveme
nt during a di
ic
ult pe
riod a
nd pl
ace
s IH
G as a Ki
nce
ntric
Glo
bal B
es
t Empl
oyer
. In e
arly 2
02
2, arou
nd 2,
20
0 empl
oyees
be
ne
ited f
rom the 
irst ve
sting of m
atchin
g share
s from our
emp
loyee sh
are pla
n and pa
rti
cipatio
n co
ntinue
s to increa
se,
with 5
3% of el
igibl
e empl
oyees e
nrolle
d for the 2
02
2 pla
n.
Our ow
ners c
hoo
se to work w
ith IH
G bas
ed o
n the trus
t they have
in our b
rands a
nd our tr
ack rec
ord in de
liveri
ng returns
. The revi
ew
of our H
olid
ay Inn and C
rowne Pl
az
a est
ate was the
refore imp
or
tant
to get right a
nd it was ve
ry p
lea
sing to s
ee 8
3 hotel
s com
mit to
improvem
ents
, protec
ting qua
lity a
nd bra
nd pe
rcepti
on. In a
dditi
on,
we conti
nue
d to expand th
e stren
gth and d
epth of o
ur bran
d por
t
folio
with the l
aunc
h of Luxur
y & Life
st
yle br
and Vi
gnet
te Co
llec
tion an
d
this is a
nothe
r impo
rt
ant ste
p in po
sition
ing the b
usin
es
s for future
grow
th opp
or
tunitie
s.
The p
rofound im
pac
t of Covi
d-19 over th
e pas
t two yea
rs ha
s,
however
, pres
ente
d chall
eng
es not o
nly for th
e bus
ines
s but a
lso
for the C
omm
itte
e in rec
ogni
sing an
d rewarding p
er
forma
nce,
whils
t als
o con
side
ring s
takeho
lde
r expe
rienc
e and th
e alrea
dy
chal
leng
ing ta
lent m
anag
eme
nt contex
t. Th
is is p
arti
cularl
y evide
nt
in res
pec
t of lon
g-te
rm inc
entives
, for whic
h targe
ts were s
et in
a ver
y die
rent co
mme
rcial an
d market co
ntext to the o
ne in whi
ch
we found o
urs
elves
. In co
nsi
derin
g how to reward pe
rfo
rmanc
e in
the co
ntext of th
e pan
demi
c, the C
ommit
tee h
as so
ught to ta
ke into
acc
ount th
e expe
rienc
e of all of o
ur st
akehol
ders a
s well a
s the
resul
ts that h
ave bee
n deli
vered by m
anag
eme
nt.
Over
vie
w of 202
1 rem
un
erat
ion o
utco
me
s
The key highl
ights of E
xec
utive Dire
ctor in
centi
ve plan award
s for
202
1 are pre
sen
ted be
low and a d
etai
led exp
lan
ation an
d ration
ale
for the C
omm
itte
e’s decis
ions a
re set out i
n this rep
or
t:
•
Th
e formul
aic achi
eveme
nt on Ann
ual Pe
rfor
manc
e Plan (A
PP)
metric
s (opera
ting pro
it from re
por
t
able s
egm
ents
, ope
nings a
nd
signi
ngs) was 187
.3% o
f targe
t, resu
lting in award
s for E
xecutive
Dire
ctors w
hich we
re capp
ed at th
e max
imum payout o
f 200
%
of salar
y
.
•
Formul
aic ac
hievem
ent und
er the 2
019/2
1 Long Term Ince
ntive
Plan (LTIP) was be
low the payou
t thresh
old a
cros
s all me
asure
s.
T
a
rgets we
re set in Feb
ruar
y 20
19 and f
ull year 2
019 p
er
forma
nce
in is
olatio
n was at 57
% of ma
ximum (19
% if pro
-r
ated ac
ross th
e full
cycle), rel
ectin
g strong p
er
form
anc
e on abs
olute n
et syste
m size
grow
th (NS
SG), cas
h low a
nd rela
tive T
ot
al Sh
areho
lder R
eturn
(T
SR), an
d was initi
ally fore
ca
st to improve fur
the
r over the cycl
e
as note
d on the n
ext p
age
. 2020
21 p
er
forman
ce wa
s signi
ic
antly
ae
cted by the s
ubs
equ
ent unfore
se
en imp
act o
f Covid
-19 on
the busi
ness.
•
Th
e Co
mmit
tee ha
s evaluate
d the form
ulaic o
utcom
es ag
ains
t
the fac
tors li
sted un
der i
ts form
al frame
work for c
onsi
derin
g the
exercis
e of disc
retion (se
e top of pa
ge) and:
–
is s
atis
ie
d that th
e APP outc
ome re
le
ct
s both ma
nag
eme
nt
pe
rfor
manc
e and th
e expe
rienc
e of othe
r key stakeho
lde
rs,
incl
uding s
hareh
old
ers an
d the wi
der work
forc
e, as su
mmari
sed
over the fol
lowing p
age
s; but
–
ha
s cho
sen to ap
ply di
screti
on to vest 2
0% of th
e share
s awarde
d
to Exe
cutive Di
rector
s und
er the 20
19/2
1 L
TI
P
. Furth
er de
tail o
n
the ratio
nale fo
r the C
ommit
tee’s dec
isio
n is se
t out over th
e
follow
ing pages.
•
Th
e total avera
ge of sh
or
t- and long
-term in
ce
ntive plan awa
rds
for the p
erio
d end
ing 20
21 wa
s therefo
re 59.5% of m
aximu
m.
This c
omp
ares to 15
.5% for 2
020 an
d 68
.8% in 2
019.
Fr
amework for cons
ideratio
n of discretion
In lin
e with the U
K Co
rpor
ate Govern
anc
e Co
de, the C
omm
itte
e
has a
dopte
d a forma
l framewo
rk which i
t will us
e to determi
ne
wheth
er to exercis
e dis
cretion
. Som
e of the key facto
rs the
Co
mmit
tee c
onsi
der a
re shown b
elow.
Performance r
elative
to competitors
Historic
performance out
comes
Impact of
adjustmen
ts
Wider Company inancial
and strategic performance
Consistency between
APP a
nd LTIP o
utc
om
es
Stakeholder e
xperience: shareholders,
em
ploye
es
, own
er
s & gue
st
s
Historic
use of
discret
ion
Possible use
of discreti
on
Gove
rn
an
c
e
104
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
20
19/21 L
TIP aw
ard
On a form
ulaic b
asi
s, in lin
e with the c
onc
erns we n
oted in l
ast yea
r’s repo
rt
, the pe
rfo
rman
ce of the 2
019/2
1 cycle is b
elow th
e thres
hol
d
for ves
ting on e
ach of i
ts me
asure
s. Wh
en the C
om
mitte
e reviewe
d pe
rfo
rmanc
e towards the e
nd of th
e ir
st year of t
he pe
rfo
rmanc
e
pe
riod, th
e forec
ast ve
sting l
evel was ~78%. H
owever
, th
e three a
bso
lute targ
ets (cas
h low, T
ot
al Gros
s Revenu
e (TG
R), NS
SG) were se
t
pre
-
Cov
id-19, and th
e severe trave
l indus
tr
y impa
cts of th
e pan
demi
c in the 
inal t
wo year
s of the cycle h
ave rende
red the
se t
arget
s
unac
hievab
le; and a
n impo
rt
ant fac
tor in the re
lative TS
R outc
ome i
s the stron
g per
form
anc
e of pe
er grou
p com
panie
s with an o
per
ating
footpr
int with a sig
ni
icantl
y highe
r weightin
g to the fas
ter
-re
coverin
g US ec
ono
my market se
gme
nt.
T
a
king th
e framewo
rk for dis
cretio
n factor
s into acc
ount
, the C
ommit
tee’s view is th
at the form
ulaic o
utcom
e doe
s not re
le
ct the p
er
forma
nce
of the b
usin
es
s in the cri
sis an
d has exerci
se
d its dis
cretio
n to determi
ne an overa
ll vestin
g level of 2
0%
, bas
ed o
n cas
h low p
er
form
ance
.
The C
omm
itte
e took a q
ualit
ative and qu
antit
ative view of ab
so
lute and re
lative pe
r
forman
ce an
d mana
gem
ent ac
tions to a
ddres
s the
exceptio
nal ci
rcums
tanc
es re
sultin
g from the p
ande
mic as we
ll as c
onsi
deri
ng the exp
erie
nce of o
ur key stakeh
olde
rs, in
clud
ing our p
eo
ple,
sha
rehol
der
s, owne
rs and g
ues
ts. T
he de
taile
d ratio
nale of th
e Co
mmit
tee i
s as follow
s:
Com
mittee de
termin
ation
Measure a
nd
weighting
Formulaic
outcome
Wei
ght
ed
discretionary
outcome
Rationale
Ca
sh 
low
(CF)
(2
0
%)
0%
20%
•
T
he C
ommi
tte
e ha
s revie
wed p
er
form
an
ce on t
his me
as
ure fro
m a numb
er o
f die
rent p
er
sp
ect
ives
, par
tic
ula
rly
from a w
ide
r co
mpa
ny in
anc
ial an
d stra
tegi
c pe
rfo
rma
nce b
as
is.
•
F
or 20
19 i
n iso
lati
on, p
er
form
an
ce wa
s stron
g, be
ing at m
axi
mum l
evel on a p
ro
-ra
ted b
asi
s as fol
lows
:
Performance r
ange $bn
Actual $bn
Component
achiev
ement
Weight
ed L
TIP
outcome
For ful
l cycle
1.87
2.49
1.7
8
0%
0%
Pro
-r
ated fo
r 20
19 onl
y
0.
524
0.69
8
0.7
0
0
100
%
20
%
Mat
hem
atic
all
y
, o
n a pro
-
rated b
as
is thi
s 20
19 pe
r
form
anc
e con
tribu
tes 6
.67
% ves
ting to t
he wh
ole cyc
le.
•
F
or 20
20 a
nd 20
21, t
he or
igin
al ta
rget b
ec
ame i
rrel
evant
, and i
nste
ad th
e Co
mmi
tte
e ha
s loo
ked at th
e E
xecu
tive
Dire
cto
rs’ p
er
form
an
ce in th
e key area o
f ca
sh l
ow and l
iqui
dit
y ma
nag
em
ent, b
ala
nci
ng the n
ee
d to pro
tect t
he
busine
ss while continuing to invest in futur
e growth including:
•
manag
ing th
roug
h the im
pac
t of C
ovid
-19 wit
hou
t the ne
e
d to rais
e new e
qui
ty;
•
secu
ring in
tere
st cov
er an
d leve
rage r
atio c
oven
ant wai
vers o
n exis
ting d
ebt a
gre
eme
nts
;
•
accessing incr
eased liquidity t
hrough:
–
£
60
0 mill
ion of C
C
FF draw
n down
, whic
h was re
pai
d in Ma
rch 20
2
1;
–
is
su
e of t
wo new b
on
ds in O
ctob
er 2
020 a
nd a te
nde
r on 20
2
2 bo
nds
, rais
ing aro
und n
et £
60
0 mill
ion
to provi
de lo
nge
r ter
m liqu
idit
y to the b
us
ine
ss;
•
protec
ting c
as
h low by p
rud
ent u
se of c
api
tal a
nd re
duc
ing c
ost
s by $1
50 mi
llio
n ($75 mi
llio
n of whi
ch
is su
st
aina
ble f
or fut
ure yea
rs);
•
strong p
er
form
an
ce on wo
rki
ng ca
pit
al, t
arge
ted ap
pro
ach
es to c
as
h col
lec
tio
ns an
d man
age
me
nt
of expenditure; and
•
actio
ns to mit
igate p
oten
tial I
HG ex
po
sure in c
as
h l
ows an
d man
age c
as
h out

lows
, lea
din
g to stron
g ca
sh
co
nvers
ion a
nd a re
duc
tion i
n net d
ebt in b
oth 2
020 a
nd 20
21
.
•
As a resul
t:
•
posi
tive ad
jus
ted fre
e c
ash 
low
a
of $2
9 mill
ion wa
s ge
ner
ated in 2
02
0, with th
e imp
act o
f Cov
id-19 r
elate
d
reven
ue re
duc
tion
s par
tl
y os
et by c
ost s
avin
g me
asu
res:
–
20
2
1: $5
71 m
illio
n; and
•
closi
ng 20
20 li
quid
ity o
f $2.
9 bil
lion (co
mpr
ise
d of $
1.3
5 bi
llio
n und
rawn ba
nk fa
cili
ties a
nd $
1.5
75 b
illio
n
of cash/cash equivalents):
–
2021: $2.7
billion.
•
The Co
mmi
tte
e be
lieve
s that m
an
age
me
nt has d
on
e all it c
oul
d to pre
ser
ve I
HG
’s resil
ien
ce an
d str
ategi
c
ca
pab
ilit
y for s
trong f
uture g
row
th, ju
stif
yi
ng ful
l vest
ing for t
he
se yea
rs in th
e ca
sh 
low el
em
ent of t
he L
TI
P cycle
.
a
U
se of N
on
-
GA
AP m
ea
sure
s: I
n add
itio
n to p
er
form
an
ce m
eas
ure
s dir
ect
ly ob
se
rv
abl
e in th
e Gro
up Fi
nan
ci
al St
ate
me
nts
(IF
RS m
ea
sure
s), ad
diti
on
al i
na
nci
al me
as
ure
s (des
cri
be
d as N
on
-
GA
AP) are p
res
en
ted th
at ar
e use
d in
tern
all
y by man
ag
em
ent
as key m
ea
sure
s to as
se
s
s pe
rfo
rma
nc
e. N
on
-G
AA
P me
as
ure
s are ei
the
r not d
e
in
ed un
de
r IF
RS or a
re ad
jus
ted I
FR
S ig
ure
s.
Furt
he
r expl
an
atio
n in re
lati
on to th
es
e me
as
ure
s can b
e fo
und o
n pa
ge 73 to 7
7 a
nd re
co
nci
liat
ion
s to IF
RS 
igu
res
, whe
re th
ey
have b
ee
n ad
jus
ted
, are on p
ag
es 2
18 to 2
23
.
Ne
t syste
m
siz
e grow
th
(N
SS
G)
(2
0
%)
0%
0%
•
This ab
so
lute t
arge
t was s
et pre
-
C
ovid
-19, at a tim
e tha
t we woul
d have exp
ec
ted th
e ind
ust
ry s
upp
ly grow
th
to co
ntinu
e at le
ast a
t the s
ame p
ac
e as th
e prec
e
ding th
ree ye
ars
; in fac
t, th
ere wa
s a drop of 2
5% over 2
020
2
1
co
mpa
red to 20
1719, mak
ing th
e abs
olu
te ta
rget un
ac
hievab
le
.
•
The Co
mmi
tte
e revie
wed N
SS
G pe
rf
orma
nc
e in det
ail f
rom a num
be
r of di
ere
nt pe
rsp
ec
tive
s and u
ltim
ately
co
ncl
ude
d that
, ba
se
d on an
alys
is of t
he dat
a an
d con
text
, it did n
ot co
ns
ide
r it ap
prop
riate to a
dju
st the
form
ulai
c outc
om
e of this a
bs
olu
te mea
sur
e.
T
otal Gross
Reven
ue
(
TG
R)
(2
0
%)
0%
0%
•
This ab
so
lute t
arge
t was s
et pre
-
pan
dem
ic an
d rend
ere
d una
chi
evab
le du
e to the se
vere m
arket-wid
e de
clin
e
in Rev
P
AR an
d oth
er reve
nue
s.
•
Base
d on a
nal
ysis o
f the d
ata a
nd co
ntex
t, th
e Co
mmit
tee d
id no
t con
sid
er it a
pp
ropri
ate to ad
jus
t the for
mula
ic
outc
om
e of thi
s abs
olu
te me
asu
re.
105
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Directors
’ Remu
neration
Report
Com
mittee de
termin
ation
Measure a
nd
weighting
Formulaic
outcome
Wei
ght
ed
discretionary
outcome
Rationale
To
t
a
l
Shareholder
Return
(TS
R)
(4
0
%)
0%
0%
•
The IH
G sh
are pr
ice h
as re
main
ed re
sil
ien
t throu
gh the l
at
ter pa
rt o
f 202
0 and 2
02
1 af
ter re
cove
ring f
rom an in
itia
l
red
ucti
on in th
e i
rst h
alf o
f 202
0.
•
IHG de
live
red 17.9% T
SR fo
r the cyc
le; ah
ea
d of all E
urop
ean p
ee
rs in t
he co
mp
arato
r group.
•
Howeve
r
, th
e sh
are pr
ice p
er
form
an
ce of s
ome c
om
par
ator gro
up co
mpa
nie
s ba
se
d prim
aril
y in the f
ast-r
ec
overin
g
US m
arket, w
ith a we
ighti
ng toward
s the e
co
nomy s
egm
ent
, and w
ith th
eir s
hare
s lis
ted o
n US s
tock m
arket
s
whi
ch have p
er
form
ed b
et
ter th
an th
e FT
SE ove
r thi
s per
iod
, has re
sul
ted in I
H
G bei
ng be
low th
e thre
sh
old l
evel
for ve
stin
g on thi
s rel
ative m
eas
ure.
•
Base
d on a
nal
ysis o
f the d
ata a
nd co
ntex
t, th
e Co
mmit
tee d
id no
t con
sid
er it a
pp
ropri
ate to ad
jus
t the for
mula
ic
outc
om
e of thi
s mea
sure
.
To
t
a
l
0%
20%
In sum
mar
y
, th
e Co
mmit
tee b
elieve
s a 20% o
utcom
e ack
nowle
dge
s the stro
ng pe
rfo
rman
ce of 20
19 as we
ll as the o
uts
tan
ding pe
r
forman
ce
of man
age
ment d
uring the C
ovid
-19 cris
is.
202
1 APP awa
rd
Alon
gsi
de op
erating p
roi
t from rep
or
tab
le se
gmen
ts, the 2
02
1 strateg
ic op
ening
s and si
gnings m
ea
sures we
re des
igne
d to provide
in-ye
ar focu
s on roo
ms grow
th in a seve
rely co
nstra
ine
d market, to co
mpl
eme
nt the lo
nger te
rm three
-yea
r L
TI
P focu
s on overall n
et
system s
ize grow
th. Th
e formul
aic ach
ieveme
nt agai
nst th
e APP me
asu
res woul
d resul
t in an award of 187
.3
% of targ
et, or 2
15.
4% of sal
ar
y
.
However, awards for Exe
cutive D
irector
s und
er the D
irecto
rs’ Rem
unera
tion Pol
icy are ca
ppe
d at a max
imum payou
t of 20
0% of s
alar
y
.
The C
omm
itte
e fee
ls the c
app
ed m
aximum A
PP award is ju
sti
ied g
iven it
s view on th
e strong p
er
form
ance o
f the bu
sine
ss in 2
02
1 on both
an abs
olu
te and rela
tive bas
is:
Measure a
nd
weighting
Wei
ght
ed
outcome
Cons
ideration of discret
ion
Op
erating
pro
it fro
m
rep
or
tab
le
segments
(
70
%)
140
%
•
The t
arg
ets we
re app
rop
riate
ly se
t, wit
h a muc
h wid
er an
d asym
metr
ic ran
ge aro
und th
e ta
rget o
utco
me th
an in p
revio
us yea
rs,
res
ultin
g in si
gni
ic
antl
y great
er stre
tch re
quire
d on th
e up
sid
e and re
l
ect
ing th
e con
text at t
he tim
e; ju
st as m
ana
ge
men
t had
no vi
sib
ilit
y to the o
ns
et of C
ovid
-19 in 2
020, th
ere wa
s lit
tle v
isib
ilit
y of th
e sh
ape a
nd pa
ce o
f rec
over
y thro
ugh 20
2
1 and,
in pr
acti
ce, th
ere we
re vari
atio
ns in p
er
form
anc
e in re
gio
ns an
d marke
ts dri
ven by di
ere
nt app
roa
che
s to trave
l res
trict
ion
s
and v
accine r
oll-outs.
•
Mana
ge
ment d
eli
vere
d stro
ng re
sult
s aga
ins
t the key 
inan
cia
l met
rics w
hic
h con
tribu
te to op
erat
ing pro
i
t, in
clud
ing s
ust
ain
abl
e
co
st s
aving
s of $7
5 milli
on (foll
owin
g on fro
m 202
0 co
st sav
ing
s of $1
50 mi
llio
n), whils
t co
ntinui
ng to inve
st in g
rowt
h
opp
or
tun
itie
s, su
ch a
s the la
unc
h of the V
ign
et
te Co
lle
ctio
n, an
d to focu
s on th
e qua
lit
y of grow
th th
roug
h the rev
iew of th
e
Ho
liday I
nn an
d Crow
ne Pl
az
a est
ate.
•
The Co
mmi
tte
e ha
s review
ed th
e qua
lit
y of und
erl
ying p
er
fo
rman
ce, i
ncl
udin
g whe
the
r adju
stm
ent
s sho
uld b
e ma
de to ta
ke
ac
cou
nt of thi
s and c
on
clu
ded t
his wa
s not n
ec
es
sar
y.
•
On this b
asi
s, th
e Co
mmit
te
e foun
d no ba
sis f
or ap
plyi
ng ne
gat
ive dis
cre
tion
.
Signings
(1
5%)
30%
•
T
arget
s were s
et ap
pro
pria
tely, rel
ect
ing th
e ty
pic
al nat
ure of th
e pac
e at wh
ich th
e drive
rs of s
igni
ngs a
nd op
en
ings re
sp
on
d
duri
ng pe
rio
ds of re
cove
r
y
, a
nd c
ont
ainin
g sig
ni
ic
ant str
etch to ac
hieve o
utp
er
form
an
ce.
•
Abso
lute p
er
form
anc
e rep
res
ente
d an im
pre
ssi
ve 23
% improve
me
nt on th
e pri
or yea
r
.
•
The Co
mmi
tte
e als
o as
se
ss
ed p
er
for
man
ce ag
ain
st ou
r larg
es
t com
pet
itors
, with I
H
G maint
ain
ing it
s sh
are of si
gnin
gs
throu
gho
ut th
e pan
dem
ic. T
he C
ommi
tte
e is s
atis

ied th
at p
er
form
anc
e rel
ative to o
ur pe
er
s was c
omp
etiti
ve.
•
See un
der ‘
Op
enin
gs’ b
el
ow reg
ardin
g the C
omm
it
tee’s as
se
ss
men
t aga
ins
t Glo
bal M
etr
ics p
er
for
man
ce.
•
On this b
asi
s, th
e Co
mmit
te
e foun
d no ba
sis f
or ap
plyi
ng ne
gat
ive dis
cre
tion
.
Ope
nings
(1
5%)
1
7.
3
%
•
Pe
rf
orma
nc
e was ah
ea
d of ta
rget o
n this m
ea
sure a
nd rep
res
ent
s 5% of pr
ior ye
ar cl
osi
ng sys
tem s
ize on a ro
llin
g
yea
r
-
on
-year b
as
is.
•
Des
pite su
ppl
y cha
in is
su
es an
d othe
r de
lays du
e to the p
and
emi
c, whi
ch ha
s mad
e op
eni
ngs ve
ry c
hal
len
ging
, we de
live
red
year-
on-ye
ar gro
wt
h and s
equ
ent
iall
y improve
d thro
ugh t
he yea
r
.
•
The Co
mmi
tte
e as
se
ss
ed p
er
form
an
ce rel
ative to c
om
peti
tors a
nd is s
ati
s
ied t
hat p
er
form
anc
e rel
ative to o
ur pe
er
s
was co
mpetiti
ve.
•
The si
gnin
gs an
d ope
nin
gs me
as
ures a
re sub
jec
t to the C
om
mit
tee a
ss
es
sin
g pe
rfo
rma
nce a
gai
nst t
he C
omp
any
’s Glob
al M
etric
s.
The m
ajo
rit
y of me
tric
s, si
x of 10, tra
cked a
bove t
arge
t or pr
ior ye
ar pe
r
form
anc
e. O
f tho
se wi
th form
al ta
rget
s, 
ive of s
ix
ex
ceeded tar
get
.
•
On this b
asi
s, th
e Co
mmit
te
e foun
d no ba
sis f
or ap
plyi
ng ne
gat
ive dis
cre
tion
.
Ove
rall, h
avin
g als
o con
sid
ere
d bro
ade
r st
akeh
old
er p
ers
pe
cti
ves (se
e nex
t pa
ge), the C
om
mit
tee fo
und n
o ba
sis fo
r app
lyin
g
ne
gati
ve dis
creti
on to the f
ormu
laic o
utc
ome o
f the 20
2
1 APP
.
To
t
a
l
1
8
7.
3
%
T
ot
al 2
021 va
riab
le in
ce
ntive ou
tcom
e
In ad
dition to revi
ewing the i
ndivi
dual L
TIP a
nd APP c
omp
one
nts a
s outlin
ed ab
ove, and the w
ider s
takeh
old
er po
sitio
n as outli
ned b
elow,
the C
ommit
tee to
ok a ho
listi
c view of vari
able in
ce
ntive outco
mes a
nd co
nsi
dere
d the overall o
utco
me for 20
21
. In total, th
e 202
1 APP
and L
TIP awa
rds for E
xecuti
ve Direc
tors rep
res
ent 59.
5% of the m
aximum p
otentia
l value. T
his is c
ons
istent w
ith his
toric overall rewa
rd
outc
ome
s, as ou
tline
d on pa
ge 120 in re
spe
ct of th
e CEO, which h
ave varied b
etwe
en 5
6.6
% and 8
4.
2
% of maxi
mum and aver
age
d 67
.1%
in the prev
ious 1
0 years exclu
ding 20
20. Th
e 201
9/21 L
T
IP cycl
e is als
o the 
irst un
der w
hich E
xecu
tive Dire
ctors a
re subje
ct to a two
-yea
r
po
st-vesting h
oldi
ng pe
riod. T
he C
ommit
tee c
ons
ide
rs the c
ombi
ned 2
02
1 L
TI
P and A
PP awards ap
prop
riate in this c
ontex
t.
Dir
e
ct
ors’ Remu
nera
tion R
epor
t
c
onti
nu
e
d
Remu
ner
at
ion C
ommi
ttee C
hai
r’
s stat
eme
n
t
c
o
ntin
u
e
d
Gove
rn
an
c
e
106
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Broader
stak
eholder perspecti
ves
In co
nsi
derin
g the us
e of dis
cretion, t
he Co
mmit
tee h
as taken i
nto acc
ount the ex
peri
enc
e and vie
ws of wid
er st
akehol
der
s:
Wider
workfor
ce
•
The APP m
ea
sure
s of op
er
ating p
ro
it fro
m rep
or
tab
le s
egm
ent
s, op
eni
ngs a
nd si
gnin
gs ap
ply to th
e who
le c
orp
orate e
mp
loyee p
op
ulati
on,
alo
ng wi
th a pe
rso
nal p
er
for
man
ce e
lem
ent b
el
ow the E
xec
utive C
om
mit
tee (EC), w
ith ta
rget b
on
us am
ount
s dete
rmin
ed by g
rade
.
The s
tron
g form
ulai
c pe
rfo
rma
nce u
nde
r the c
orp
ora
te mea
sur
es wil
l app
ly to an
d be
ne
it th
is wh
ole p
op
ulati
on. I
n add
itio
n, in vi
ew of th
e
stro
ng pe
r
form
anc
e in 20
21, a
n ext
ra 20
% is be
ing a
dde
d to th
e amo
unt bu
dge
ted fo
r the p
ers
on
al pe
r
form
anc
e ele
me
nt to inc
rea
se awa
rds
for th
os
e emp
loyee
s wh
o per
fo
rme
d the s
trong
es
t duri
ng 20
21
.
•
In the co
ntex
t of co
ntinu
ing rete
ntio
n and s
uc
ce
ss
ion c
onc
ern
s be
low B
oard
:
•
L
TI
P award
-h
old
ers re
ce
ive
d an ad
diti
ona
l award in 2
02
1, top
ping t
he 20
18/2
0 cycle aw
ard up to 4
0%
, an
d will re
ce
ive an awa
rd in 20
22
on th
e sam
e ba
sis i
n res
pe
ct of th
e 20
19/2
1 cycle i
n rec
ogn
ition o
f the s
igni
i
cant a
ddi
tion
al wo
rk and e
or
t re
quire
d du
ring th
es
e cycle
s
as a re
sult o
f the p
and
emi
c imp
act
; and
•
in addit
ion, s
ep
arate o
ne
-
o rete
ntio
n award
s in the fo
rm of c
as
h and d
efer
red s
hare
s were m
ad
e to core s
kil
l and s
ucc
es
si
on ta
len
t
individuals
across t
he corpora
te popula
tion.
•
In contr
ast
, E
xecu
tive Di
rec
tors re
ce
ive
d only t
he for
mula
ic ou
tcom
e of th
e 201
8/20 LTIP (30.
6% of m
axi
mum) and n
o 202
0 APP aw
ard.
•
In Janu
ar
y 20
22
, the 
irs
t matc
he
d sha
re ves
ting to
ok p
lac
e und
er o
ur em
ploye
e sha
re pl
an, as a re
sul
t of whi
ch aro
und 2
,2
00 e
mpl
oyee
s
rec
eive
d fre
e sh
ares m
atch
ed o
n a 1:1 basi
s.
•
The overa
ll em
ploye
e en
gag
eme
nt sc
ore o
f 85% exc
ee
de
d that o
f exte
rna
l be
nch
mark
s by 8%
.
•
As expla
ine
d on p
age 11
2, the e
mp
loyin
g enti
ties fo
r a num
be
r of UK l
ea
se
d hote
ls are p
ar
t of th
e IH
G group
. All rol
es at a
ll the
se h
otel
s are
pai
d abo
ve the li
ving wa
ge an
d zero
-
hou
r co
ntrac
ts h
ave be
en el
imin
ated a
cro
ss thi
s es
tate
. From Apri
l 202
2
, all em
ploye
es i
n the
se ho
tels
will b
e pa
id ab
ove the re
al liv
ing wa
ge. H
oweve
r
, a
s a res
ult of c
onti
nue
d trave
l rest
rict
ion
s and h
otel c
los
ures d
urin
g 202
1, s
ome U
K gove
rnm
ent
sup
po
rt wa
s obt
ain
ed in r
esp
ec
t of thi
s work
fo
rce for t
he be
ne
i
t of the h
otel ow
ne
r
. T
he C
om
mit
tee h
as ta
ken into a
cc
ount th
at, i
n res
pe
ct
of pay fo
r the
se e
mpl
oyee
s, IH
G do
es n
ot have d
eci
sio
n right
s an
d mus
t be se
ns
itive to th
e co
mme
rcia
l circ
ums
tan
ce
s of the
se l
ea
se
d hote
ls,
the ow
ner a
nd e
quiti
es a
cros
s the o
wne
r’s wid
er b
usi
nes
s, a
nd the e
mp
loyee
s of oth
er ow
ner
s of IH
G ho
tels
.
•
In resp
ec
t of the d
irec
tly-
e
mpl
oyed co
rp
orate wo
rk
forc
e, no U
K gover
nme
nt sup
po
rt f
or st
a c
ost
s was o
bta
ine
d in ei
ther 2
02
0 or 20
21 a
nd,
foll
owin
g the reve
rs
al of th
e acti
ons t
aken i
n 202
0 outl
ine
d in la
st ye
ar
’s repor
t, n
o em
ploye
es a
cros
s the g
lob
al c
orp
orate p
op
ulati
on we
re
furl
oug
he
d in 20
21.
•
F
urt
her c
on
sid
erat
ion
s inc
lud
ed un
der ‘
Re
mun
erati
on at I
HG – th
e wid
er c
ontex
t
’ on p
age 11
2.
Owners
•
F
avoura
ble c
red
it term
s prov
ide
d to as
sis
t with t
he imp
ac
t of the p
an
dem
ic.
•
Agreem
ent w
ith own
er
s to man
age c
as
h lo
w throu
gh util
is
ation o
f mai
nten
anc
e res
er
ves
.
•
Exp
and
ed ho
tel pro
cu
reme
nt so
luti
ons to c
om
bat s
upp
ly ch
ain ch
alle
ng
es an
d ris
ing c
ost
s.
•
Laun
che
d new h
irin
g tool
s and s
upp
or
t to re
crui
t and re
tain t
al
ent.
•
Contin
ue
d revie
w and evo
luti
on of b
rand s
ta
nda
rds to im
prove op
era
tion
al e
ic
ien
cy.
•
Govern
men
t advo
ca
cy ca
rrie
d out o
n be
hal
f of own
ers
.
Guests
•
Flex
ible c
an
ce
llati
on po
licy o
pe
rate
d, and w
aive
r of ca
nce
lla
tion fe
es
.
•
Contin
ue
d execu
tion o
f IH
G Way of Cl
ean a
nd I
HG C
le
an Prom
ise i
n our h
otel
s.
•
IHG R
ewar
ds membership
status pr
otecti
on pro
vided.
Shareholders
•
IH
G sh
are pr
ice h
as re
main
ed re
si
lien
t, en
ding 2
02
1 1.
9% up o
n the e
nd of 2
020 a
nd 10
0% u
p on th
e lows o
f Marc
h 202
0.
•
The Bo
ard is p
rop
osi
ng a 
inal d
ivi
den
d of 8
5.9
¢ in re
sp
ec
t of 20
21, a
nd the
re is c
onti
nue
d mo
ment
um in fu
ture grow
th, w
ith ou
r glo
bal
pip
eli
ne e
quiva
len
t to over 3
0% of th
e cur
rent sys
tem s
ize an
d mor
e than 4
0% u
nde
r co
nst
ruc
tion
.
•
Having l
iste
ne
d to sha
reh
old
er fe
edb
ac
k at the ti
me an
d refra
ine
d from u
sin
g dis
creti
on fo
r the 20
18/2
0 L
T
IP cyc
le, we re
ce
ive
d po
sitiv
e
and c
on
stru
ctiv
e fee
dba
ck in c
on
sult
atio
ns wi
th sh
areh
old
er
s on the p
ote
ntial u
se of d
isc
retio
n for th
e 20
19/2
1 L
T
IP cyc
le.
2020
/22 L
TIP c
ycl
e
The C
omm
itte
e has c
ontinu
ed to c
onsi
der th
e impa
ct of the p
and
emic o
n in-
light L
TI
P awards and, w
hilst t
here is n
o intentio
n to adjus
t
inc
entive pl
an targ
ets mid
-
cycle, a
s noted in th
e 202
0 Direc
tors’ Re
mune
ration Re
po
rt in re
sp
ect of th
e 202
0/22 L
TIP
, the C
ommit
te
e:
•
co
ntinue
s to moni
tor a sha
dow ta
rget for c
ash 
low, agreed at i
ts Oc
tobe
r 202
0 mee
ting af
ter the i
nitial imp
act o
f the pa
nde
mic be
cam
e
evide
nt; an
d
•
rem
ains min
de
d not to redu
ce the re
lative N
SS
G vestin
g outco
me ba
se
d on the Retu
rn on C
apit
al Empl
oyed (ROC
E) u
nde
rpin if thi
s is not
met for th
is cycle s
ole
ly due to the i
mpac
t of the p
ande
mic on e
arnin
gs.
The c
as
h low t
arget for th
e 2020/2
2 L
TIP cycl
e was se
t and pro
spe
ctive
ly dis
clos
ed in Fe
brua
ry 20
20, be
fore the fun
dame
ntal g
loba
l impa
ct of
the pa
nde
mic ha
d bec
om
e appa
rent. W
ithin mo
nths, it wa
s cle
ar that it wa
s ver
y unlikely to b
e achi
evable fo
r the thre
e L
TI
P cycle
s inclu
ding 20
20
(20
18/20, 201
9/21 an
d 2020/2
2). The s
hadow t
arget wa
s bas
ed o
n as
sumptio
ns of a ful
l recove
ry over ti
me and m
ana
gem
ent foc
us on ma
intain
ing
sus
tain
able s
aving
s and dis
cip
line
d cas
h man
age
ment an
d was inte
nde
d to provide a refe
renc
e poi
nt to cons
ide
r at the time o
f vestin
g.
The C
omm
itte
e’s current view is t
hat the s
hadow t
arget
, as we lo
ok at it in e
arly 20
2
2 and give
n the ran
ge of unex
pec
ted d
evelop
ment
s
sinc
e Oc
tobe
r 2020, rem
ains a s
tretching a
nd app
ropria
te target
. In the C
omm
itte
e’s view
, t
he De
lta var
iant, th
e 202
1 se
con
d-wave
loc
kdowns an
d glob
al travel res
trictio
ns, an
d the sub
se
que
nt impa
ct of O
micron h
ave all add
ed he
adwi
nds th
at counte
r the stro
nge
r than
expe
cted re
cover
y p
ace in th
e US
. The C
ommi
tte
e has th
erefore c
oncl
ude
d that thi
s sha
dow targ
et will b
e highly re
levant wh
en co
nsid
ering
the ves
ting of thi
s cycle in e
arly 20
23. Foll
owing c
onsu
ltatio
n with sh
areho
lde
rs, the s
had
ow targ
et is dis
clo
se
d on pag
e 124 of this re
por
t.
In any event, th
e Co
mmit
tee wil
l contin
ue to as
ses
s the ap
prop
riatene
ss o
f usin
g disc
retion to adj
ust th
e formula
ic outco
me
s upwards or
downwards b
as
ed on a
ll relevant fa
ctor
s at the time o
f vestin
g of the award an
d in line wi
th its form
al fram
ework for c
ons
ider
ing the exerci
se
of discr
etion.
107
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Directors
’ Remu
neration
Report
Imp
le
me
ntati
on of D
ire
ctor
s’ Remu
ne
ratio
n Poli
cy (DR Pol
icy) in 202
2
As cove
red in mo
re det
ail on pa
ges 1
24 to 125:
•
S
alar
y inc
reas
es for E
xec
utive Dire
ctor
s for 202
2 wi
ll be in lin
e with the b
udg
et for inc
reas
es for th
e wide
r UK a
nd US c
orp
orate po
pulati
ons
and are m
ade fo
llowing a
n ass
es
sme
nt of 20
21 p
er
forma
nce.
•
Th
e non
-
inan
cial me
as
ures for th
e 202
2 Ann
ual Pe
rfo
rmanc
e Pla
n will rema
in as op
enin
gs and s
igning
s, as in 2
02
1, align
ed to our key
strate
gic obj
ecti
ves for rec
over
y and o
ur future grow
th pri
oritie
s.
•
L
TIP 20
2
2/24 cycle m
ea
sures w
ill als
o remain a
s relati
ve TSR (30
%), relative NS
SG (40
%) and abs
olute c
ash 
low (30%), with Total Gros
s
Revenu
e having b
ee
n repla
ce
d by incre
ase
d weightin
gs for c
ash 
low an
d relative N
SS
G. Retain
ing the s
ame b
alan
ce of m
eas
ures for
the 20
2
2/24 cycle kee
ps an ove
rall relati
ve per
form
anc
e focu
s, app
ropriate in a c
ontex
t of som
e conti
nue
d unce
rt
aint
y
. I
t als
o retain
s
the inc
reas
ed fo
cus o
n NS
SG, which i
s strate
gica
lly key and, be
ing rel
ative, facto
rs in the e
co
nomic a
nd ma
rket contex
t and any rel
ated
volatili
ty th
at occ
urs
.
Retirem
ent b
ene
it
s for inc
umbe
nt UK E
xec
utive Dire
ctors w
ill align w
ith the ma
ximum c
omp
any contrib
ution avail
able to all o
ther p
ar
ticipa
nts
in the U
K pe
nsio
n plan at t
he en
d of this yea
r
. As s
tate
d in las
t year
’s repor
t, an
d in line wi
th our ap
proved D
R Policy
, US retire
ment b
en
e
it
arrang
eme
nts, i
n which th
e CEO, Ameri
cas
, par
ticip
ates, d
ier in a n
umbe
r of res
pe
cts from U
K pe
nsi
on arran
gem
ents
, as expl
aine
d on
pag
e 112. Th
ey are com
pris
ed of a 4
01
(k) pl
an und
er whi
ch all c
orpo
rate emp
loyees b
en
ei
t from ma
ximum em
ployer c
ontrib
ution
s of a
con
sis
tent 6% o
f sal
ary, and a Defe
rred C
omp
ens
ation P
lan for a
round 10
0 eli
gible s
enio
r emp
loyees u
nde
r which a
ll par
ticip
ants in
clud
ing
the C
EO
, Ame
rica
s can re
ce
ive supp
lem
enta
ry c
ontrib
ution
s of up to 16
% of sal
ar
y
. T
hes
e are co
mmon reti
reme
nt ben
e
it pla
ns in the U
S
market an
d, given th
e parit
y of trea
tment fo
r all par
tici
pants i
n eac
h of the
se pl
ans, a
s well as th
e impo
rt
anc
e of the C
EO, Americ
as rol
e to
the bu
sine
ss a
nd the m
arket com
petitive
ne
ss co
nce
rns over E
xec
utive Dire
ctor p
ay
, the C
omm
itte
e intend
s to maint
ain the arr
ange
ment
s
as they re
late to the C
EO
, Ame
rica
s.
ESG considerations
Our J
ourn
ey to T
om
orrow Res
pon
sibl
e Bu
sine
ss p
lan was re
lea
se
d early i
n the year
, inc
luding n
ew and up
date
d com
mitme
nts rel
ating to
our c
ommun
ities
, peo
ple a
nd pla
net an
d evolvin
g the Co
mpa
ny’s strategy in t
his area
. The Re
sp
ons
ible B
usin
es
s Co
mmit
tee rep
or
t on p
age
10
0 and the S
trategi
c Rep
or
t on pa
ge 16 co
ntain m
ore inform
ation o
n our initi
atives
, repo
rtin
g com
mitme
nts and s
cie
nce
-
bas
ed t
argets
.
The C
omm
itte
e takes a h
olis
tic app
roach to revi
ewing an
d impl
eme
nting ne
w remune
ration t
arget
s, en
suring th
at they are ali
gne
d to
Co
mpany str
ategy (se
e page 11
0), and has c
ontin
ued to wor
k clos
ely w
ith the Re
spo
nsib
le Bu
sine
ss C
om
mitte
e and C
omp
any man
agem
ent
team o
n a disc
rete ESG me
tric for E
xecu
tive Dire
ctor remu
nerati
on. D
uring th
e year
, t
he Co
mmit
tee revi
ewed op
tions to ali
gn a remun
eratio
n
metric w
ith the ne
w and wid
er J
ourney to T
omo
rrow com
mitme
nts.
On e
nvironme
ntal m
etric
s, we con
tinue to imp
rove our dat
a integrit
y and
, in 202
1, laun
che
d an auto
mated d
ata c
olle
ctio
n proje
ct acro
ss
our ho
tels glo
ball
y as par
t of o
ur ongo
ing imp
rovement
s to IH
G’s Gree
n Enga
ge, our o
nline e
nvironm
enta
l mana
gem
ent pl
atfo
rm. We have
als
o launc
he
d the Hote
l Ene
rgy Redu
ction O
pp
or
tunitie
s (HE
RO) tool, whic
h will be key to he
lping o
ur hotel
s targe
t ene
rgy
, c
arbo
n and
water red
uctio
ns. T
his work to s
uppo
r
t our hote
ls to dec
arb
onis
e and m
eas
ure our p
er
forma
nce is i
mpo
rt
ant as it w
ill ena
ble us to re
ach
the ta
rgets we h
ave set ac
ross o
ur franc
hise p
rope
rti
es (sco
pe 3). On oth
er po
tential ES
G metric
s, in
cludi
ng thos
e with a p
eop
le foc
us,
fur
ther wo
rk will b
e unde
rt
aken in 20
2
2 to ass
es
s bas
elin
es an
d per
form
anc
e as initi
atives re
lating to new c
omm
itment
s roll-
o
ut through
out
the bu
sine
ss
. This a
ppro
ach is b
eing t
aken to he
lp ens
ure that trul
y stretchin
g but ac
hievabl
e targ
ets, b
ase
d on rob
ust sys
tems an
d dat
a,
can b
e set fo
r ince
ntive pl
an purp
ose
s.
In the m
eantim
e, as ou
tline
d on pa
ge 124, ES
G criteri
a, suc
h as ann
ual en
ergy re
ducti
on, em
ployee e
ngag
eme
nt and gu
es
t satis
facti
on
pe
rfor
manc
e, will c
ontinue to fo
rm a key eleme
nt of the C
omm
itte
e’s ov
erall a
ss
es
sme
nt of pe
rfo
rmanc
e aga
inst I
HG
’s Glob
al Metri
cs
in co
nsid
ering th
e pote
ntial app
lic
ation of di
screti
on to the form
ulaic o
utcom
es of th
e 202
2 AP
P strateg
ic me
asure
s.
Wider
wor
kfor
ce r
emunera
tion
and
emplo
y
ee engagemen
t
As outl
ine
d on pag
e 112, the a
pproa
ch to remu
nerati
on is alig
ned th
rough
out the o
rganis
ation a
nd, durin
g the yea
r
, the C
omm
itte
e reviewe
d
a numb
er of a
spe
cts o
f the Co
mpa
ny’s wider wo
rkfo
rce remu
nerati
on po
licy
, i
nclu
ding the a
ppro
ach to fairn
es
s in reward, retentio
n
arrang
eme
nts, a
nd arran
gem
ents fo
r UK ho
tel emp
loyees
.
Concluding tho
ughts
The C
omm
itte
e, incl
uding mys
elf as t
he Co
mmit
tee C
hair
, are fully aware th
at the us
e of dis
cretio
n in relatio
n to the 20
19/21 L
TIP o
utco
me
may not b
e con
side
red to b
e in line wi
th bes
t prac
tice o
r with the n
orma
l expe
ctati
ons of s
ome inve
stors a
nd proxy a
gen
cie
s. The C
om
mitte
e
has c
ons
ide
red an
d deb
ated the
se m
atter
s at len
gth, with a s
trong foc
us on a
chievin
g an outc
ome w
hich is fa
ir and e
quit
able fo
r all of our
key stakeho
lde
rs, as o
utline
d ab
ove, which reward
s man
agem
ent in re
gards to p
er
forma
nce in a
n unfores
ee
n cris
is, an
d which re
co
gnise
s
the high
ly co
mpetiti
ve glob
al tal
ent ma
rket that we op
erate in.
Abo
ut th
is re
po
rt
As always, we s
trive to make this re
por
t as e
asy to rea
d as po
ss
ible
. Following th
is st
ateme
nt, the ‘A
t a glan
ce’ se
ctio
n provid
es an ill
ustratio
n
of 202
1 rem
unera
tion outc
ome
s and, ove
r the follow
ing pa
ges
, there i
s a summa
ry o
f how executi
ve remune
ration a
ligns to c
ompa
ny strategy;
an over
view of o
ur app
roved DR P
olicy an
d its ali
gnme
nt with the U
K Co
rpo
rate Govern
anc
e Co
de prin
cipl
es; a su
mmar
y of rem
uner
ation
acro
ss the w
ider wo
rk
force; an
d, on pa
ges 11
3 to 114, fur
ther b
ackground o
n the Re
mune
ration C
ommi
tte
e. The A
nnual R
epo
rt o
n Dire
ctors’
Remun
eratio
n on pa
ge
s 115 to 125 will b
e put to an a
dvis
or
y vote by share
hol
ders a
t the May 20
2
2 Annua
l Ge
neral M
ee
ting.
Jo H
arlow
Cha
ir of the Re
mune
ration C
omm
itte
e
21 Feb
ruar
y 20
2
2
Dir
e
ct
ors’ Remu
nera
tion R
epor
t
c
onti
nu
e
d
Remu
ner
at
ion C
ommi
ttee C
hai
r’
s stat
eme
n
t
c
o
ntin
u
e
d
Gove
rn
an
c
e
108
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
A
t a gl
an
ce
Me
as
ure
s use
d for AP
P
a
Me
as
ure
s use
d for L
TI
P
a
Bef
ore dis
cret
ion
Afte
r disc
ret
ion
40%
15%
15%
70%
20%
20%
20%
Ca
sh flow
($bn
)
Op
era
ting pro
fit from
rep
or
tab
le se
gme
nts
($
m)
Threshold
222.
0
Ta
r
g
e
t
29
6.0
Maximum
443.
0
Actua
l
5
3
5
.1
Roo
m signi
ngs
(k room
s)
Threshold
52.4
Ta
r
g
e
t
58.2
Maximum
64
.0
Actua
l
68.9
Threshold
39.0
Ta
r
g
e
t
43.3
Maximum
4
7.
6
Actua
l
4
4.0
Roo
m open
ing
s
(k rooms)
Threshold
1.87
Actua
l
1.7
8
Maximum
2.49
Threshold
20
Actua
l
100
Maximum
100
Ca
sh flow
(vesting perc
ent
age)
Op
era
ting pro
it
from rep
or
ta
ble
segments
Room signings
Room
openings
T
ota
l Share
hol
der
Return
T
ota
l Gros
s
Reven
ue
Ne
t system
siz
e growth
Ca
sh lo
w
2021
actu
al
2020
actu
al
2021
pote
ntial
Paul
Edgeclie-Johnson,
Ch
ief Fina
nc
ial O
ice
r
Value (£00
0)
3,316
1,0
6
7
2,325
0
1,
000
2
,0
00
3,0
00
4
,000
5,0
00
0
1,
000
2
,0
00
3,0
00
4
,000
5,0
00
Keith Bar
r
,
Ch
ief Exec
utive O
ic
er
Value (£00
0)
4
,524
3
,1
76
1,4
84
2021
actu
al
2020
actu
al
2021
pote
ntial
2021
actu
al
2020
actu
al
2021
pote
ntial
3,
251
1,0
0
5
2
,24
9
Eli
e Maal
ouf,
Ch
ief Exec
utive O
ic
er
, Ameri
cas
Value (£00
0)
0
1,
000
2
,0
00
3,0
00
4
,000
5,0
00
Executive Dire
ctor remune
ration
2021 ac
tual remun
eration vs potentia
l remune
ration
The c
har
ts b
elow s
how the 20
21 p
otentia
l remune
ration o
pp
or
tunit
y and ac
tual ac
hievem
ent co
mpa
red to the 20
20 ac
tual ac
hievem
ent.
The re
levant 
igures fo
r eac
h of the e
leme
nts th
at make up the s
ingle tot
al ig
ure of remun
eratio
n, as s
hown be
low for th
e Exe
cutive Di
rector
s,
can b
e foun
d in the ta
ble o
n page 11
5. Se
e pa
ge 110 for th
e key t
o indi
vidua
l ele
ment
s of actu
al remu
nerati
on for 20
20 and 2
02
1.
202
0 sal
aries we
re redu
ced fo
r par
t of the ye
ar as exp
lain
ed in th
e 2020 A
nnual Re
po
rt
.
How w
e per
fo
rmed in 2021
Very s
trong pe
rfo
rman
ce ag
ainst t
arget fo
r ope
rating p
roit f
rom repo
rt
abl
e se
gment
s and si
gning
s, toge
ther wi
th strong o
pen
ing res
ults,
me
ant that the fo
rmulai
c 202
1 APP a
chieve
ment wa
s 187
.
3% of t
arget
, resulti
ng in awards fo
r Exe
cutive Di
rector
s which we
re cap
pe
d at
the ma
ximum p
ayout of 20
0% of s
alar
y. Under th
e L
TI
P
, the i
mpac
t of Cov
id-19 m
eant th
e formula
ic outc
ome
s were be
low thres
hol
d on
all me
asu
res. O
n the ba
sis of th
e excell
ent st
ar
t to the cycle in 2
019 an
d the su
bse
que
nt exceptio
nal p
er
forma
nce o
n the man
age
ment
of ca
sh l
ow in the c
ontext of th
e pan
demi
c, as outl
ine
d on pag
es 10
5 to 10
6, the C
omm
itte
e exercis
ed dis
cretio
n to vest 20
% of the
maximum award.
a
Fur
th
er de
ta
ils of A
PP a
nd LTIP ou
tco
me
s
ca
n be fo
und o
n pa
ge
s 116 to 11
7
.
Key for po
tent
ial
Mi
nimu
m = Fixe
d pay
Target = Fi
xed pay a
nd on
-t
arge
t award fo
r APP
(115%) an
d 50
% of ma
ximu
m L
T
IP ve
stin
g
M
axim
um = Fi
xed pay a
nd ma
ximu
m award
und
er AP
P and LTIP
109
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Directors
’ Remu
neration
Report
Dir
e
ct
ors’ Remu
nera
tion R
epor
t
c
onti
nu
e
d
Our a
ppr
oach t
o r
emu
ner
a
ti
on
Element
Measures
Lin
k to st
rat
egy
Explanation
Annual Perfor
mance
Plan (APP)
Op
era
ting p
roi
t
•
The stre
ngth a
nd b
read
th of ou
r po
rt
fol
io, tai
lore
d se
r
vic
es
and s
olu
tion
s, an
d our te
ch
nol
ogy a
nd pl
at
form
s drive
co
nsu
mer p
refe
renc
e, own
er re
turns a
nd ro
oms g
row
th;
all c
ontri
buti
ng to ou
r revenu
es a
nd pro
i
t.
•
Open
ing
s and s
igni
ngs ar
e two of o
ur key dri
vers o
f syste
m
siz
e and c
entr
al to our a
mbi
tion to d
eli
ver in
dus
try
-le
ad
ing
roo
ms grow
th.
•
Aligne
d to ou
r pe
opl
e, co
mmun
itie
s and p
lan
et st
rateg
y
, the
Rem
une
ratio
n Co
mmi
tte
e will re
view p
er
form
an
ce on G
lo
bal
Me
tric
s, in
clud
ing key ES
G me
asu
res (E
mpl
oyee en
gag
em
ent
,
Gu
est L
ove, Re
spo
ns
ibl
e Bus
ine
ss) in c
on
sid
erin
g the p
otent
ial
app
lic
atio
n of dis
cre
tion to fo
rmul
aic o
utco
me
s on AP
P
str
ateg
ic
object
iv
e meas
ures.
Room signings
Room openings
Global Metrics
Lon
g T
erm I
nc
ent
ive
Pla
n (L
T
IP)
Relative T
otal Shareh
older Return
•
Our amb
itio
n is to de
live
r high
-
qua
lit
y
, indu
str
y-
lea
din
g net
roo
ms grow
th s
o it is i
mpo
rt
ant th
at thi
s form
s a key ele
me
nt
of ou
r man
age
me
nt tea
m’s Long T
erm I
nc
entiv
e Plan
.
•
Enhan
cing o
ur cu
stom
er a
nd own
er o
er an
d deve
lop
ing o
ur
bra
nds at s
c
ale in h
igh
-valu
e mar
kets dri
ves s
ust
ain
ed gro
wt
h
in c
ash 
lows a
nd pro
i
ts ove
r the lo
ng te
rm, whi
ch c
an be
reinve
ste
d in ou
r bus
ine
ss a
nd retu
rne
d to sh
areh
old
er
s.
Rel
ative n
et sys
tem si
ze grow
th
Ca
sh 
low
Over th
e followi
ng pag
es of th
e repo
rt
, we give an over
vie
w of how our re
mune
ration ar
range
ment
s are align
ed to our p
urpo
se, am
bitio
n
and s
trategic p
rioriti
es. We have in
clud
ed a sum
mar
y of ou
r approve
d DR Po
licy on p
age 111, tog
ether w
ith a remin
der of h
ow the C
ommit
tee
has a
ddre
sse
d Provis
ion 4
0 of the 20
18 U
K Cor
porate G
overna
nce C
od
e in res
pec
t of remun
eratio
n po
licy and p
racti
ce. Ali
gnme
nt of pay
struc
tures th
rougho
ut the org
anis
ation a
nd the imp
lem
ent
ation of re
mune
ration p
olicy a
cros
s the wid
er work
forc
e is covere
d on p
age 112.
Pag
es 113 to 114 cont
ain a su
mmar
y of C
ommi
tte
e actio
ns durin
g the yea
r
.
T
ab
le of contents
110
Our a
ppr
oac
h to re
mun
erat
ion
110
Link to s
trategy
111
Su
mmar
y of ou
r approve
d Direc
tors’ Re
mune
ration Po
licy
112
Remu
nerati
on at IH
G – the wi
der c
ontext
113
Remu
nerati
on Co
mmit
tee d
etail
s
Ali
gni
ng va
riab
le elements of r
emunerat
ion t
o strat
e
gy
Variable e
lem
ents o
f remune
ration a
re linked to our s
trategy th
rough ou
r four strate
gic pri
oritie
s, our p
urpo
se an
d ambiti
on.
How to u
se th
is re
po
rt
Withi
n the Dire
ctor
s’ Remun
eratio
n
Rep
or
t we have use
d co
lour c
odin
g
to
denot
e di
eren
t elemen
ts of
remun
eratio
n. Th
e colo
urs us
ed a
nd
the co
rres
pon
ding rem
unera
tion
elements a
re:
Salar
y
Beneits
Pension bene
it
An
nua
l Per
for
man
ce Pl
an (AP
P)
50
% ca
sh an
d 50% d
efe
rred s
har
es
Long Term In
ce
ntive Pl
an (LTIP)
Sharehol
ding
Our purpose
T
ru
e Ho
spitalit
y
fo
r Good
Our ambition
T
o deliv
er
indust
ry-leading
ne
t ro
o
ms
gro
w
th
Our strate
gic priorities
Bu
ild love
d and
trust
ed brands
Cus
tomer
centri
c
in all we do
Create
digital
adva
ntag
e
C
are for ou
r pe
ople,
com
munitie
s andp
lan
et
Audite
d info
rmatio
n
Co
ntent co
ntain
ed wit
hin a tinted
pan
el high
lighted w
ith an ‘
Audite
d’
tab in
dic
ates that a
ll the inform
ation
within th
e pan
el is au
dited
.
AUD
ITE
D
Gove
rn
an
c
e
110
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Summary of appro
ved Di
rectors’
Remunerati
on Polic
y
Element
2022
2023
2024
2025
2026
Fr
amework
Purpo
se
Fi
xed
Ba
se s
ala
ry
Inc
rea
se
s gen
era
lly in l
ine wi
th the r
ange
app
lyi
ng to the c
orp
ora
te pop
ula
tion
.
Revi
ewed a
nnu
ally a
nd 
ixed fo
r 12 mo
nths
from 1 A
pril
.
T
o rec
ogn
ise t
he val
ue an
d imp
act
of the ro
le an
d the i
ndiv
idu
al
’s skill
s,
performance
and e
xperience.
Beneits
Rel
evant b
en
e
its a
re alig
ned to t
he
ty
pic
al le
vel for t
he rol
e/lo
ca
tion
.
T
o be c
omp
etiti
ve and c
on
sis
tent w
ith
role
/lo
cat
ion; to h
elp re
cru
it an
d reta
in.
Pension/
Reti
rement
bene
it
A De
i
ne
d Co
ntrib
utio
n or c
ash i
n lieu
amo
unt fo
r UK D
irec
tors
. Emp
loye
e
co
ntrib
utio
ns wi
th matc
hing c
omp
any
co
ntrib
utio
ns. S
al
ar
y is the o
nly p
ar
t
of pay th
at is p
en
sio
nab
le. S
ee f
ur
the
r
det
ail
s reg
ardin
g UK an
d US p
en
sio
n
be
ne
it o
n pa
ge 112
.
T
o be c
omp
etiti
ve and c
on
sis
tent w
ith
role
/lo
cat
ion; to h
elp re
cru
it an
d reta
in.
V
ariable
Annual
Performance
Pl
a
n
(c
as
h)
Ma
ximu
m opp
or
tun
ity i
s 20
0% of s
al
ar
y;
70% b
ase
d on o
pe
ratin
g pro
it m
ea
sure
and 3
0% o
n key strate
gic o
bje
cti
ves;
50
% of the aw
ard is d
efer
red into s
ha
res
for th
ree ye
ars
.
T
o reward th
e ac
hieve
men
t of stre
tchin
g
tar
get
s that s
upp
or
t the C
om
pany
’s
annual inancial and strategic goals.
For 20
2
2, the key s
trate
gic
obj
ecti
ves are
:
•
r
oom signings (15% weighting); and
•
r
oom ope
nings (15% weighting
).
Annual
Performance
Plan (
deferred
sh
a
re
s)
L
o
n
g
Te
r
m
Incentive Plan
(
LT
I
P
)
The m
axi
mum p
otent
ial LTIP qu
antum
is 3
50
% of sa
lar
y for t
he C
EO and 27
5%
of s
alar
y fo
r othe
r E
xecu
tive Di
rec
tors;
a two
-ye
ar po
st-ve
st ho
ldi
ng
period
applies.
A foc
us on i
ndu
str
y-l
ea
ding n
et ro
oms
grow
th is a
t the he
ar
t of o
ur str
ategy,
bal
anc
ed by a R
eturn o
n Ca
pit
al
Emp
loyed (
ROC
E) u
nde
rpi
n to re
lec
t our
co
mmitm
ent to d
eli
ver qu
alit
y grow
th
whilst maintaining returns. T
ogether with
TS
R and c
as
h low, the
re is a s
trong
alig
nme
nt be
twe
en E
xe
cuti
ve Dire
cto
r
remuner
atio
n and
shareholder
interests.
The C
omm
itte
e has c
ons
ide
red the re
mune
ration p
olicy a
nd pra
ctice
s in the c
ontex
t of Provisi
on 40 o
f the UK C
orp
orate G
overna
nce C
od
e,
as fo
llows
:
Principle
IHG’
s approa
ch
Cla
rity
We always s
ee
k to set a
nd re
por
t o
ur pe
rfo
rma
nc
e-
rel
ated m
ea
sure
s, t
arge
ts an
d outc
om
es in a c
lea
r
, trans
pa
rent an
d ba
lan
ce
d
way
, with re
leva
nt and ti
mel
y co
mmun
ica
tion w
ith all o
f our s
take
hol
der
s. O
ur rewa
rd pol
ici
es dri
ve eng
ag
eme
nt thro
ugh
out th
e
work
fo
rce wi
th an ali
gne
d app
roa
ch to pe
r
form
anc
e
-re
late
d reward
. Thro
ugh th
e com
bin
atio
n of sh
or
t- and lo
ng
-term i
nce
ntive
pla
n me
asu
res, t
he D
R Poli
cy is st
ruc
ture
d to sup
por
t 
ina
nci
al obj
ec
tive
s and th
e stra
tegi
c prio
riti
es of th
e bu
sin
es
s whic
h de
liver
sh
areh
old
er ret
urns a
nd lo
ng
-term v
alue c
reat
ion
. Furth
er ali
gnm
ent wi
th sh
areh
old
er in
tere
sts i
s drive
n by the s
igni
i
can
t
prop
or
tio
n of sh
are
-b
as
ed i
nce
ntive
s an
d Exe
cuti
ve Dire
cto
r sh
areh
old
ing re
quire
me
nts
.
Simplicity
Our remu
neration
structu
re compr
ises strai
ghtforward
, con
ventiona
l and
well-understood components.
The purpose,
structu
re
and s
trate
gic a
lignm
ent o
f ea
ch el
eme
nt is c
le
arly l
aid o
ut in th
e remun
era
tion p
oli
cy sum
mar
y t
abl
e:
•
ixed p
ay: bas
e sa
lar
y
, pe
nsi
on an
d be
ne
it
s that a
re co
nsi
ste
nt with ro
le an
d lo
cati
on;
•
shor
t-ter
m inc
entiv
e: ann
ual p
er
for
man
ce
-re
late
d bo
nus w
hic
h inc
enti
vis
es an
d reward
s the d
eli
ver
y of 
inan
cia
l and n
on
-
ina
ncia
l
strategic objectives;
•
long
-term i
nc
entive
: a sh
are
-b
ase
d awar
d whic
h inc
enti
vis
es p
er
form
anc
e over a t
hree
-ye
ar p
erio
d an
d is ba
se
d on me
as
ure
s
whi
ch driv
e lon
g-te
rm su
st
aina
ble g
row
th.
Predic
tabilit
y
The r
ang
e of po
ss
ibl
e valu
es of re
wards fo
r E
xecu
tive Di
rec
tors i
s cle
arl
y dis
clo
se
d in gra
phi
cal fo
rm bo
th at the t
ime of a
pprov
ing
the p
oli
cy and i
n the an
nua
l impl
em
ent
atio
n rep
or
t.
Risk
Our D
R Po
licy c
ont
ain
s a numb
er of e
le
men
ts to en
sure t
hat it d
rive
s the rig
ht be
havi
our
s to inc
enti
vis
e the E
xec
utive D
ire
ctor
s
to de
liver l
ong
-te
rm su
sta
ina
ble g
rowt
h and s
hare
ho
lde
r return
s an
d to reward th
em ap
pro
pria
tely:
•
the max
imum s
hor
t- and l
ong
-te
rm inc
ent
ive award
s are c
app
ed a
s a % of sa
lar
y;
•
the Co
mmit
te
e has c
le
ar dis
cret
ion p
oli
cie
s, lin
ked to sp
ec
i
ic me
as
ures w
here n
ec
es
sa
ry, to overri
de for
mula
ic outc
om
es;
•
Exec
utive D
irec
tor
s agre
e to cle
ar a
nd co
mpre
he
nsi
ve mal
us an
d claw
ba
ck prov
isi
ons; a
nd
•
signi
ic
ant s
hare
hol
din
g requ
irem
ent
s app
ly for E
xe
cuti
ve Dire
cto
rs.
Proportionality
Ind
ivi
dual re
wards a
re alig
ne
d to the d
elive
r
y of str
ategi
c bu
sine
s
s obje
cti
ves
. The C
om
mit
tee s
et
s robu
st an
d stre
tchin
g targ
ets
to en
sure th
at the
re is a c
lea
r link b
et
wee
n the p
er
for
man
ce of th
e Gro
up an
d the awa
rds ma
de to E
xec
utive D
ire
ctor
s and o
ther
s.
Ali
gnm
en
t to cu
ltur
e
IH
G ha
s a cle
ar pu
rpo
se a
nd wel
l-
es
ta
blis
he
d valu
es a
nd be
hav
iour
s. T
he ali
gnme
nt b
etw
ee
n remun
era
tion i
nce
ntive
s an
d our
stra
tegy fo
r hig
h-
qu
alit
y grow
th, a
nd th
e KPI
s whi
ch un
der
pin th
e del
iver
y of o
ur str
ateg
y
, i
s out
line
d on p
age 1
10. O
ther e
le
men
ts
of rewa
rd, suc
h as s
ala
ry re
view
s and, a
cro
ss th
e wid
er wor
kfo
rce, t
he sh
or
t-term i
nce
ntive p
lan a
nd ou
r glob
al re
co
gnit
ion
sc
hem
e, rewa
rd emp
loyee
s for p
er
for
man
ce an
d ac
tion
s whic
h de
mon
stra
te our va
lue
s and b
eh
aviou
rs.
Cash
Defe
rral
Performance
Deferral
111
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Directors
’ Remu
neration
Report
Dir
e
ct
ors’ Remu
nera
tion R
epor
t
c
onti
nu
e
d
Our a
ppr
oach t
o r
emu
ner
a
ti
on
co
nti
nu
e
d
Remu
nerat
ion at IHG – the wider con
te
x
t
How o
ur rewar
d pra
ctic
es a
re ali
gne
d ac
ros
s al
l level
s of th
e org
ani
sati
on
Our a
pproa
ch to fairn
es
s in reward is an im
por
ta
nt asp
ec
t of our overa
ll reward philo
so
phy (see be
low) and is d
esig
ned to at
trac
t and
retain th
e be
st ta
lent
, with a focu
s on ch
ampi
oning a di
vers
e and inc
lusi
ve culture wh
ere emp
loyee
s can th
rive. The rewa
rd philo
sop
hy
is sup
por
te
d by a robus
t governa
nce ap
proa
ch aim
ed at havi
ng fair an
d con
sis
tent reward and re
co
gnitio
n prac
tice
s acros
s our e
mploye
e
pop
ulatio
n, reg
ardles
s of ge
nde
r and oth
er as
pe
cts of d
ivers
ity
, and th
at there i
s an alignm
ent b
etwe
en th
e wide
r direc
t work
force an
d
executive re
mune
ration
. We regularl
y review our a
pproa
ch ex
ternall
y
, e
nsurin
g we me
et the ne
ed
s of emp
loyee
s by oerin
g market-dri
ven
rew
ard packages.
Exa
mp
les o
f alig
nm
ent an
d im
ple
me
ntat
ion of w
ide
r work
forc
e reward s
trat
egy i
n 202
1
Elements of
reward
Participants
Comme
ntary
Fi
xed
Salar
y
All
In the 20
2
1 bas
e sa
lar
y rev
iew pro
ce
ss
, we co
ntinu
ed to b
uild o
n our s
imp
li
ie
d pe
rfo
rma
nce m
ana
ge
men
t proc
es
s to
inc
lud
e the u
se of m
ana
ger d
isc
retio
n to ma
ke one
-
o ad
jus
tme
nts wi
thin th
e overa
ll me
rit bu
dg
et in ord
er to a
ddre
ss
eq
uit
y and t
ale
nt rec
og
niti
on, p
ar
ticul
arl
y in the c
ontex
t of th
e pay ac
tio
ns ta
ken in 20
20 in re
sp
on
se to th
e imp
act o
f
Cov
id-1
9 on th
e bus
ine
ss
. Thi
s allo
wed th
e me
rit bu
dge
t to be t
arge
ted o
n area
s whe
re it wo
uld h
ave the mo
st im
pa
ct.
Beneits
All
For 20
21
, we alig
ne
d the le
vels o
f hea
lthc
are c
over o
ere
d in th
e UK a
cros
s all U
K co
rpo
rate e
mpl
oyee
s. G
lob
ally, we
co
ntinu
ed to ro
ll-
ou
t our we
lln
es
s oe
r to sup
por
t o
ur emp
loye
es’ h
eal
th an
d wellb
ei
ng an
d to ada
pt to a cha
ngi
ng
and 
lexi
ble w
orki
ng env
ironm
ent
, inc
ludi
ng an e
nha
nce
d pa
rent
al le
ave po
licy i
n the U
S for c
orp
orate e
mpl
oyee
s.
Pension bene
it
All
Pe
nsi
on an
d retire
me
nt be
ne
it
s are pro
vide
d in th
e UK a
nd U
S in lin
e with m
arket pr
act
ice
.
UK:
the c
ontri
buti
on rate fo
r co
rpo
rate an
d eli
gibl
e hote
l emp
loye
es in th
e IH
G U
K pen
sio
n pl
an is al
ign
ed wi
th a 2:1
matc
hing r
atio up to a m
axi
mum of 6
% of s
ala
ry f
rom em
ploye
es a
nd 12
% from t
he C
omp
any
. Du
ring 20
2
1, foll
owin
g
a revie
w by the pl
an tru
ste
e and c
on
sul
tati
on wit
h an em
ploye
e me
mbe
r foru
m, the i
nvest
ment o
ptio
ns fo
r
par
ti
cip
ants we
re up
date
d to inc
lud
e fun
ds wit
h an ES
G focu
s.
US
: US re
tirem
ent s
avin
g pla
ns are m
ad
e up of a 4
01
(k) p
lan w
hich h
as a 1:1 matc
hing c
ont
ribu
tion r
atio up to a
max
imum o
f 6% of s
al
ar
y for e
ligib
le c
orp
orate e
mpl
oyee
s and a D
efe
rre
d Co
mpe
ns
atio
n Pla
n (DC
P) whic
h prov
ide
s
for su
ppl
em
ent
ar
y co
mpa
ny cont
ribu
tion
s of up to 1
6% p
rovide
d at s
eni
or leve
ls (a his
tori
c gran
dfath
ere
d rate o
f
20
% app
lie
s for a sm
all nu
mbe
r of e
mpl
oyee
s who we
re alre
ady re
ce
ivi
ng thi
s rate wh
en it wa
s rem
oved f
rom
1 Jan
uar
y 20
17
).
V
ariable
Annual
Performance
Pl
an (
AP
P)
All
All c
or
por
ate emp
loye
es s
hare c
omm
on c
orp
orate p
er
for
man
ce m
etric
s wit
h the E
xec
utive C
om
mit
tee a
nd
E
xecu
tive Di
rec
tors
. For se
nio
r man
ag
eme
nt (g
ene
rall
y at E
xecu
tive C
omm
itte
e leve
l an
d thei
r dire
ct re
por
t
s),
a prop
or
tio
n of b
onu
s is de
ferre
d into s
hare
s for a th
ree
-ye
ar pe
rio
d. In 2
02
1, we ali
gne
d the we
ight
ings o
f metr
ics
for al
l cor
por
ate em
ploye
es b
elo
w Exe
cuti
ve Co
mmi
tte
e leve
l and i
ncre
as
ed th
e foc
us on re
wardin
g pe
rfo
rma
nc
e
by reb
ala
ncin
g the A
PP me
as
ures s
o that a g
reate
r po
rt
ion of a
n award c
an b
e achi
eved t
hrou
gh an em
ploye
e’s
individual per
formance and contribution.
Lo
ng Term Inc
enti
ve
Plan (
L
TIP)
All
Se
nio
r/
m
id
-ma
nag
em
ent an
d ce
rt
ain s
pe
cia
lis
t role
s are e
ligib
le fo
r a Lon
g T
e
rm In
ce
ntive Pl
an (LTIP).
Per
fo
rman
ce
-
bas
ed LTIP l
arge
ly ap
plie
s at th
e leve
l of E
xecu
tive C
omm
itte
e an
d the
ir dire
ct re
por
t
s; RS
Us t
ypi
cal
ly
app
ly for e
lig
ible e
mp
loyee
s be
low th
is leve
l (see b
el
ow).
Res
tric
ted
Sto
ck
Units
(RSUs
)
Excludes
E
xec
uti
ve
Directors
In lin
e wit
h typ
ic
al ma
rket pra
ctic
e, p
ar
ticul
arly i
n the U
S, an
d due to li
ne
-
of-s
ight ove
r pe
rfo
rma
nce m
ea
sure
s,
a gra
dual
ly gre
ater p
rop
or
tion o
f the LTIP award i
s ma
de as R
SU
s (which a
re not s
ubje
ct to p
er
form
an
ce co
ndi
tion
s
but s
till a
lign e
mpl
oyee inte
res
ts wi
th tho
se of s
har
eho
lde
rs) for e
ligi
ble ro
les f
rom th
e Exe
cuti
ve Co
mmi
tte
e dow
n.
Colleague Share P
lan
Wider
workfor
ce
only
IH
G matc
he
s the nu
mbe
r of sh
are
s purc
has
ed o
n a 1-
for-1 basi
s. O
ur em
ploye
e sh
are pl
an is avai
lab
le to aro
und 9
8%
of ou
r cor
por
ate em
ploye
es b
elo
w the s
enio
r/
mid
-ma
nag
em
ent l
evel (who re
ce
ive LTIP an
d RSU aw
ards).
Par
tic
ipa
tion i
ncre
as
ed fro
m 49
% in 20
20 to 5
0% in 2
02
1 and to 5
3% i
n 202
2
; matc
hing s
hare
s fro
m the 20
20 pl
an
ves
ted in J
anu
ar
y 20
22
.
Our rew
ard philosoph
y
Our rewa
rd arrange
me
nts are co
mpe
titive, drive cre
ation of va
lue
for st
akehol
der
s and m
ake us think an
d act a
s one tea
m.
Learning
and support
T
o a
ssi
st em
ployee
s and m
anag
ers in i
mple
menti
ng the
dis
cretion
ar
y per
form
anc
e
-rela
ted el
eme
nts of me
rit an
d APP
,
we introdu
ce
d a divers
it
y
, e
quit
y & inclu
sion s
tate
ment o
n makin
g
fair reward d
ecis
ion
s con
siste
nt with ou
r Co
de of C
ondu
ct, wh
ich
man
age
rs were fam
iliaris
ed w
ith as pa
rt of th
e proc
es
s. Furth
erm
ore,
during 2
02
1, cor
porate e
mploye
es co
mpl
eted mo
re than 10,0
00
hours of
conscious inclusion t
raining
.
UK hot
el emplo
y
ees
Followin
g the ac
quis
ition of a nu
mbe
r of UK h
otels in 2
019,
emp
loying e
ntities fo
r the es
tate’s hotels we
re transfe
rred to I
HG.
Empl
oyment te
rms, in
cludi
ng remun
eratio
n and b
ene
i
ts, have
large
ly rem
aine
d in pla
ce on th
eir pre
-
acq
uisiti
on ba
sis to date.
In co
mmo
n with the m
ode
l for man
age
d hotel
s gen
erall
y
, IH
G
provid
es hote
l mana
gem
ent su
ppo
rt to th
e owner o
f thes
e UK
leased hotels.
This i
nclu
des m
aking re
co
mmen
datio
ns to the U
K lea
se
d est
ate
owne
r on mat
ters i
nclu
ding pay. Such rec
omme
nda
tions a
re made
in line w
ith the co
rres
pon
ding pro
ce
ss for oth
er dire
ctly-
em
ployed
emp
loyees
, bas
ed o
n market ins
ight and ex
peri
enc
e. De
cis
ions o
n
impl
eme
nting ch
ange
s to pay are ultim
ately de
termin
ed by the h
otel
est
ate owne
r in the c
ontext o
f their ow
n comm
ercia
l pos
ition a
nd
equ
ities a
cros
s their w
ider p
or
t
folio. All rol
es at all h
otels are p
aid
above th
e living wa
ge and ze
ro
-ho
ur contr
acts a
re not utili
sed i
n any
par
t of th
e UK le
as
ed e
state.
Employ
e
e engagement on
pa
y
The 2
02
1 empl
oyee eng
age
ment s
co
res for p
arti
cipati
ng hotel a
nd
rese
r
vations e
mpl
oyees an
d gen
eral m
anag
ers o
n the que
stio
ns
relatin
g to reward and re
cog
nition exce
ed
ed ou
r sur
vey provide
r’s
top qua
rtil
e ben
chm
ark. S
ee pa
ge 114 for de
tails
.
Gove
rn
an
c
e
112
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
K
ey
objectives
and summary of r
espons
ibili
ties
The Re
mune
ration C
om
mitte
e agre
es, o
n beh
alf of th
e Boa
rd,
all as
pe
cts of re
mune
ration of th
e E
xecutive D
irecto
rs and th
e
E
xecutive C
ommi
tte
e, and ag
ree
s the strate
gy
, d
irecti
on and p
olicy
for the re
mune
ration of th
e sen
ior execu
tives wh
o have a signi
ic
ant
inl
uen
ce over th
e Group’s abilit
y to me
et its s
trategic o
bje
ctives
.
Additi
onall
y
, the C
om
mitte
e reviews w
ider wo
rk
force pay p
olic
ies
and p
ractic
e to ens
ure alignm
ent with s
trateg
y
, valu
es an
d
be
haviour
s and t
akes this into a
cco
unt whe
n set
ting E
xec
utive
Dire
ctor rem
unera
tion. T
he Co
mmit
tee’s role an
d resp
ons
ibilitie
s are
set o
ut in its Terms of Refe
renc
e (ToR) which a
re reviewed a
nnuall
y
and ap
proved by the B
oa
rd.
The ToR are ava
ilab
le o
n IH
G’s web
site at
w
ww.ihgplc.com
/inv
estors
under Corporat
e go
vernance.
Membership
and
attend
ance a
t meet
ings
Det
ails o
f the Co
mmit
tee m
emb
ers
hip and at
ten
danc
e at me
eting
s
are set o
ut on p
age 81
.
Duri
ng 202
1, the C
omm
itte
e was su
ppo
rte
d intern
ally by the
Co
mpany C
hair
, the Gro
up’
s CEO and C
FO, and the h
ead
s of
Hum
an Res
ource
s and Re
ward as ne
ce
ss
ar
y
. Al
l atten
d by invitati
on
to provide f
urth
er b
ackground in
formatio
n and c
ontext to a
ssi
st the
Co
mmit
tee in it
s dutie
s. Th
ey are not pre
sen
t for any disc
uss
ion
s
that rel
ate direc
tly to their ow
n remune
ration o
r whe
re their
atte
ndan
ce wou
ld not b
e appro
priate.
Rep
or
ting to t
he B
oar
d
The C
omm
itte
e Cha
ir upd
ates the B
oard o
n all key issu
es rai
se
d at
Co
mmit
tee me
etin
gs. Pa
per
s and min
utes for e
ach m
eeti
ng are als
o
circul
ated to all B
oard me
mb
ers for revi
ew and c
omm
ent.
Non-Executive
Directors
’ letters
of appointment
and
not
ice per
iods
Non
-
E
xecutive D
irec
tors have let
ter
s of app
ointme
nt, whi
ch are
availab
le upo
n requ
est fro
m the C
ompa
ny Secre
tar
y
’s oice
.
Patric
k Ce
sca
u, Non
-
E
xecutive C
hair
, is sub
jec
t to 12 months
’
notic
e and is i
n com
plian
ce with P
rovisio
n 19 of the U
K Co
rpo
rate
Gover
nanc
e Co
de. N
o othe
r Non
-
Exe
cutive Di
rector
s are subj
ect to
notic
e per
iods
; all No
n-
E
xecutive D
irec
tors are sub
jec
t to an annu
al
re-
e
lec
tion by sh
areho
lde
rs at the AG
M.
Ee
ctive
ne
ss of t
he C
omm
itte
e
The e
ec
tivene
ss o
f the Co
mmit
tee i
s monito
red an
d ass
es
se
d
regul
arly by the C
hair of th
e Co
mmit
tee an
d the Ch
air of the B
oa
rd.
Remune
ration advis
ers
In 20
19, the C
ommi
tte
e unde
rto
ok a co
mpe
titive tend
er pro
ces
s
and I
HG ap
pointe
d De
loit
te LL
P to act as in
dep
en
dent a
dvis
er to the
Co
mmit
tee an
d they co
mme
nce
d work in O
ctob
er 20
19. De
loit
te is
a mem
ber o
f the Rem
unera
tion C
onsu
ltant
s Group a
nd, as s
uch,
ope
rates un
der th
e co
de of c
ondu
ct in rel
ation to execu
tive
remun
eratio
n con
sultin
g in the U
K. T
he Co
mmit
tee i
s satis
i
ed that
the ad
vice re
ce
ived is o
bje
ctive and i
nde
pen
dent
. Fees of £
14
3,8
50
were pa
id to Del
oit
te in resp
ec
t of advi
ce provi
ded to th
e Co
mmit
tee
Remuner
at
ion Committee detai
ls
in 202
1. T
his was in th
e form of an a
gree
d fee for s
upp
or
t in
prep
aratio
n of pap
ers an
d atte
nda
nce at m
eetin
gs, wi
th work on
addi
tiona
l items c
harge
d at hou
rly rates
. The te
rms of en
gag
eme
nt
for De
loit
te are availab
le from th
e Co
mpany Se
cret
ar
y’s o
ice
upo
n requ
est
. Sep
arately, other par
ts o
f De
loit
te LLP al
so ad
vise
d
the C
omp
any in relatio
n to corp
oratio
n tax
, mob
ilit
y and
con
sultin
g ser
vi
ces
.
Board changes
Duri
ng the yea
r
, Ann
e Bu
sque
t stepp
ed d
own from th
e Boa
rd
and D
anie
la Ba
rone So
ares wa
s app
ointed to th
e Bo
ard as a
Non
-
E
xecutive D
irec
tor
; Ri
chard An
der
son wa
s als
o app
ointed
to the Bo
ard as a N
on
-E
xec
utive Dire
ctor
, however
, he ha
d to step
down a few m
onths la
ter
. D
ale M
orri
son retire
d from the B
oa
rd
from 31 D
ec
emb
er 20
21 a
nd Gra
ham All
an was ap
poin
ted as S
enio
r
Non
-
E
xecutive D
irec
tor from 1 Ja
nuar
y 20
22
. The re
mune
ration
arrang
eme
nts in re
spe
ct of a
ll chan
ges we
re in line w
ith the
app
roved DR Po
licy an
d are covere
d on pa
ge 123
.
Approach to target setting
T
a
rgets are s
et by the C
ommi
tte
e and se
nior m
ana
gem
ent, t
aking
into acc
ount I
HG
’s growth amb
ition
s and lo
ng-
rang
e busi
nes
s pla
n,
market exp
ect
ation
s and th
e circum
stan
ce
s and rel
ative pe
rfo
rmanc
e
at the tim
e, with the ai
m of set
ting s
tretching a
chievem
ent t
argets
for se
nior exec
utives w
hich wil
l rel
ect s
ucc
es
sful o
utcom
es for th
e
bus
ine
ss ba
se
d on its s
trategi
c and 
inan
cial ob
jec
tives for th
e pe
riod.
Abs
olute t
arget
s may be s
et relative to b
udge
t and/or by referenc
e
to prior re
sult
s, ge
neral
ly cont
ainin
g a per
form
anc
e range w
ith
addi
tiona
l stretch to inc
entiv
ise o
utpe
rfor
manc
e as wel
l as minim
um
pe
rfor
manc
e level
s for payout
. Relative t
arget
s are set a
gain
st an
app
ropriate c
omp
arator group o
f com
panie
s for the re
levant m
eas
ure,
for examp
le, rel
ative NS
SG in th
e L
TI
P was se
t again
st ou
r six larg
est
com
petito
rs with over 5
00
k room
s to rel
ect o
ur indu
str
y-le
adin
g
grow
th ambiti
on.
Sharehol
der engag
ement
The C
omm
itte
e rec
ogni
ses th
at there exi
sts a ra
nge of v
iews ac
ross
the sh
areho
lde
r bas
e in rela
tion to the p
ay of Exe
cutive Di
rector
s and
theref
ore
engages in r
egular shar
eholder consultat
ion. W
e consult
ed
with sh
areho
lde
rs an
d proxy ag
enc
ies in e
arly 20
21 a
nd prio
r to the
AGM on th
e impl
eme
ntatio
n of remun
eratio
n pol
icie
s for the yea
r
ahe
ad an
d mat
ters rel
ating to in
-lig
ht L
TI
Ps
. At the 202
1 AGM
, we
were pl
eas
ed to re
ceive a vote of 9
2.4
3
% in favour of the 2
020
Directors
’ Remu
neration
Report.
Sha
rehol
der exp
erie
nc
e and the v
iews of sh
areh
olde
rs are
fund
ame
ntal as
pe
cts o
f the Co
mmit
tee’s framewo
rk for the
con
sid
eratio
n of the us
e of dis
cretion i
n relatio
n to ince
ntive pla
n
outc
ome
s. As s
uch, we c
arrie
d out c
onsu
ltatio
ns with l
ead
ing
sha
rehol
der
s and a prox
y age
ncy ag
ain in ea
rly 202
2
. We discu
ss
ed
the p
er
forman
ce of m
anag
eme
nt whic
h, in the C
ommi
tte
e’
s view,
had d
elive
red stro
ng resu
lts and a m
ore res
ilient c
omp
any comi
ng
out of th
e pan
demi
c. This p
er
form
ance i
s sus
tain
able a
nd ha
s not
be
en at the ex
pen
se of s
takeho
lde
rs, as o
utline
d on p
age 107
.
202
1 foc
us a
rea
s
•
Revie
w and ap
proval of 20
20 remun
eratio
n outco
me
s and 20
21 s
tructu
res and t
arget
s
•
In
-year p
er
forman
ce an
d relative p
er
form
ance tr
acki
ng
•
Wider workfor
ce remuner
ation
matters
•
ES
G in ince
ntives a
nd Gre
en En
gage p
rogre
ss
•
C
ons
idera
tion of di
scretio
n relati
ng to 202
1 remun
eratio
n outc
ome
s
•
20
22
+ struc
tures an
d targe
ts
113
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Directors
’ Remu
neration
Report
However, forecas
t resu
lts sh
owed tha
t the formul
aic ou
tcome
s of
L
T
IP ta
rgets wo
uld likely n
ot rel
ect th
is extr
aordin
ar
y eor
t an
d, if
lef
t una
ddre
ss
ed, woul
d risk f
urth
er ag
gravation to exis
ting retenti
on
and talent challeng
es.
Valuabl
e and co
nstr
uctive fe
edb
ack wa
s provide
d by sha
reho
lder
s
and a p
roxy age
ncy an
d, overall, sh
areho
lde
rs were g
ene
rally
rec
eptive to the p
otential u
se of di
screti
on to incre
as
e the L
T
IP
outc
ome, s
o long a
s there wa
s su
icie
nt and rob
ust j
usti
ic
ation.
The C
omm
itte
e’s decis
ion an
d deta
iled r
ationa
le is ou
tline
d on
pag
es 10
5 to 107
.
The m
ost re
cent ro
und of c
ons
ultati
ons al
so cove
red mat
ter
s
relatin
g to in-
light L
TI
Ps and p
rogre
ss on th
e incl
usio
n of ESG in
executive re
mune
ration
. Views ex
pres
se
d by share
hold
ers w
ill als
o
be t
aken into con
sid
eratio
n as the Re
mune
ration C
omm
itte
e reviews
the D
R Policy in 2
02
2 ahe
ad of p
utti
ng the p
olicy to sh
areho
lde
r
vote in 202
3. We will en
gage i
n fur
ther c
ons
ultati
on as th
e DR
Policy
dev
elops.
Wider
wor
kfor
ce r
emunera
tion
and
emplo
y
ee engagemen
t
As outl
ine
d on pag
e 112, I
HG op
erate
s an align
ed ap
proa
ch to
remun
eratio
n through
out th
e organi
satio
n. Du
ring the ye
ar
, th
e
Co
mmit
tee revie
wed as
pe
cts of th
e Co
mpany
’s wider wor
kfo
rce
remun
eratio
n appro
ach a
s par
t of the
ir regul
ar me
eting a
gen
da,
incl
uding th
e appro
ach to fai
rnes
s in reward, reten
tion
arrang
eme
nts, a
nd arran
gem
ents fo
r UK ho
tel emp
loyees
.
The C
omp
any eng
age
d with the wo
rkfo
rce throu
gh its e
mploye
e
eng
age
ment s
urvey wh
ich cove
rs a numb
er of a
reas, i
nclu
ding pay
and b
ene
it
s co
mpeti
tivene
ss, a
nd was up
date
d for 202
1 to provid
e
greate
r insig
hts on are
as su
ch as we
llne
ss an
d inclu
sion
.
As pa
rt of 2
02
1 Bo
ard eng
age
ment wi
th the work
forc
e, the
Co
mmit
tee C
hair me
t with rep
rese
ntative e
mploye
e groups fro
m
our U
S and Phil
ippin
es p
opul
ation
s to discu
ss E
xecu
tive Dire
ctor
remun
eratio
n and how I
HG
’s remuner
ation pri
ncip
les ap
ply to
emp
loyees th
rougho
ut the o
rganis
ation
. Ne
ither g
roup sha
red
any con
cern
s with E
xecu
tive Dire
ctor remu
nerati
on.
Voting at th
e Co
mpa
ny’s AGMs
The c
urrent D
R Policy wa
s subj
ect to a vote at the 2
020 AG
M. Th
e outco
me of th
e votes in res
pe
ct of the D
R Pol
icy and Re
por
t for 2
019 to 20
21
are sh
own be
low:
Directors’
Remuneration
Policy (binding
vot
e)
Directors’ Remunera
tion R
eport (adv
isory vot
e)
AGM
Votes for
Vot
es against
Abstentions
Votes for
Votes against
Abstent
ions
2021
–
–
–
137
,628,
120
(92.43%
)
11,277,368
(7
.57%
)
106,27
1
2020
112
,09
8,
2
13
(
7
7.
1
4
%
)
33,2
10,269
(2
2
.
8
6%)
3,308,4
99
1
4
3
,
2
79
,76
1
(9
6
.4
9
%)
5,2
12,375
(3
.5
1%)
124,
84
4
2019
–
–
–
120
,939
,401
(8
3
.9
5
%)
23,
116,948
(1
6.
0
5%)
3
,
8
6
7,
2
8
7
Jo H
arlow
Cha
ir of the Re
mune
ration C
omm
itte
e
21 Feb
ruar
y 20
2
2
In the P
hilippi
nes
, empl
oyees g
ave feedb
ack o
n pay and b
ene
i
ts
com
petiti
vene
ss an
d rece
nt devel
opm
ents in th
e con
text of
hom
e workin
g. Dis
cus
sio
ns on E
xec
utive Dire
ctor rem
uner
ation with
the U
S empl
oyee group le
d to co
nstru
ctive fe
edb
ack on d
evelo
pme
nt
and c
aree
r progre
ss
ion op
por
tuni
ties an
d asp
ec
ts of dive
rsit
y
and inclusion.
As note
d on pa
ge 112, p
erce
ption
s of reward and re
co
gnitio
n
gain
ed stro
ng resu
lts ac
ross o
ur hotel, re
se
rvati
ons an
d gen
eral
manager populat
ions:
Paid
fairly
80%
73%
79%
64%
Be
ne
it plan me
et nee
ds
83%
76%
82%
68%
Appro
priate
reco
gnition
85%
80%
88%
71%
Per
form
anc
e impa
cts pay
82%
81%
83%
64%
H
otel
s
Re
ser
vation
s
GMs
T
op qua
rti
le sco
res
Th
e Co
mp
any’s ap
proa
ch to wi
de
r work
forc
e en
gag
eme
nt un
der t
he
UK C
or
por
ate Gove
rna
nc
e Co
de is s
et ou
t on p
age 112
.
Dir
e
ct
ors’ Remu
nera
tion R
epor
t
c
onti
nu
e
d
Our a
ppr
oach t
o r
emu
ner
a
ti
on
co
nti
nu
e
d
Gove
rn
an
c
e
114
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Ann
ual Repor
t on Dir
ect
ors’ R
emuner
a
t
ion
Sin
gle tot
al 
igu
re of rem
un
erat
ion – E
xecu
tive Di
rec
tors
Fixe
d p
ay
Var
iable pa
y
Executive Dire
ctors
Ye
a
r
Salary
£000
Beneits
£000
Pension
beneit
£000
Subtotal
£000
APP
£000
LT
I
P
£000
a
Subtotal
£000
To
t
a
l
£000
Kei
th B
a
rr
2021
8
57
41
214
1,1
1
2
1,72
7
337
2,0
6
4
3
,1
76
2020
712
45
178
935
0
549
549
1,48
4
Paul E
dgeclie-
Johnson
2021
630
19
158
807
1,
270
24
8
1,518
2,325
2020
524
21
13
1
676
0
391
391
1,06
7
Elie Maalouf
b
2021
606
53
11
8
777
1,22
1
2
51
1,4
72
2
,249
2020
5
31
30
65
626
0
379
379
1,00
5
a
LTIP 
igu
res f
or 20
20 re
lat
e to the 2
018
/20 LTIP cy
cle a
nd ha
ve be
en re
st
ate
d usi
ng a
ctu
al sh
are p
ric
e on da
te of ve
sti
ng. F
igu
res fo
r 20
21 re
la
te to the v
alu
e of sh
are
s for th
e
2019/21 c
ycle.
b
E
lie M
aa
lou
f is p
aid i
n US
D and t
he ste
rli
ng e
qui
vale
nt is c
al
cul
ate
d usi
ng an e
xcha
nge r
ate of $
1 = £0.73 i
n 20
21 a
nd $
1 = £0.78 in 2
02
0 (p
age 1
58).
The Annual
Report on Direct
ors’ R
emuneration
explains
how
the D
ire
cto
rs’ Rem
une
rati
on Pol
icy (DR Po
licy) was im
ple
me
nte
d
in 20
21 an
d th
e res
ult
ing p
aymen
ts ea
ch of t
he E
xecu
tive
Direc
tors rece
ived.
This re
por
t is s
ubje
ct to an ad
viso
ry vote by s
hareh
olde
rs at th
e
202
2 AGM
. Th
e notes to th
e singl
e igu
re tabl
e provid
e fur
ther d
etail,
whe
re relevant
, for eac
h of the e
lem
ents th
at make up the tot
al
singl
e ig
ure of remun
eratio
n for ea
ch of the E
xec
utive Dire
ctor
s.
Note
s to si
ngl
e ig
ure ta
bl
e
Fi
xed
pay
Sa
la
r
y:
sal
ar
y paid fo
r the year. Salar
y inc
reas
es in 20
2
1 were in
line wi
th the bu
dget fo
r the wid
er U
K and US c
orp
orate work
forc
e.
202
0 sal
aries we
re redu
ced fo
r par
t of the ye
ar as exp
lain
ed in
the 20
20 Annu
al Rep
or
t.
Beneits:
for E
xec
utive Dire
ctor
s, this in
clud
es, b
ut is not
limite
d to, taxab
le be
ne
its s
uch a
s comp
any car o
r allowan
ce
and h
ealth
care. U
nde
r HM Reve
nue an
d Cus
tom rule
s, the 2
02
1
ig
ure for the no
n-
U
K bas
ed D
irec
tor
, Eli
e Maa
louf, inclu
des
som
e travel and fo
od exp
ens
es th
at were not p
reviou
sly
rep
or
te
d.
P
ension beneit
:
for current E
xec
utive Dire
ctors
, in line wi
th
DR Po
licy
, the value o
f IH
G contrib
ution
s and a
ny cash
allowan
ce
s paid in l
ieu of p
ens
ion co
ntribu
tions
.
Keith Ba
rr and Pa
ul Edge
cli
e-John
son di
d not pa
rtic
ipate in any
IH
G pe
nsio
n plan i
n 202
1 and in
stea
d rece
ived c
as
h allowan
ces o
f
25% of b
ase s
alar
y; this wil
l reduc
e to the ma
ximum l
evel availab
le
to all othe
r par
ticip
ants in th
e UK p
en
sion p
lan at the e
nd of 20
2
2.
Life as
sura
nce c
over is p
rovide
d for both Keith a
nd Paul at fo
ur
time
s bas
e sal
ar
y
.
Elie M
aalo
uf par
tic
ipate
d in the US 4
01
(k) P
lan an
d the US
De
ferred C
omp
en
satio
n Plan (D
CP). Th
e US 40
1(
k) Pla
n is a
tax-
quali
ie
d pl
an providin
g ben
e
its o
n a de
ine
d co
ntributio
n
bas
is, wi
th the me
mbe
r and c
ompa
ny both co
ntributin
g.
Co
ntributi
ons m
ade by
, a
nd in res
pe
ct of Eli
e Maa
louf in th
es
e
pla
ns for the ye
ar en
ded 3
1 De
ce
mbe
r 202
1 were:
£
a
Dire
cto
r’s co
ntrib
utio
ns to U
S De
ferre
d
Compensation Plan
168,917
Dire
cto
r’s co
ntrib
utio
ns to U
S 40
1(
k) Pl
an
18,980
Co
mpa
ny con
tribu
tio
ns to US D
efe
rre
d
Compensation Plan
109,
82
9
Co
mpa
ny con
tribu
tio
ns to US 4
01
(k
) Pla
n
8,468
Age of D
ire
ctor a
t 31 D
ec
emb
er 2
02
1
57
a
S
terl
ing v
alu
es ha
ve be
en c
alc
ula
ted u
sin
g an exc
han
ge ra
te of $
1 = £0.73
.
As outl
ine
d in las
t year
’s r
ep
or
t, Elie’s retireme
nt be
ne
it is in li
ne
with othe
r se
nior U
S emp
loyees a
nd co
mpris
es a 6
% of sa
lar
y
match
ed c
ontribu
tion (subje
ct to IR
S limits i
n resp
ec
t of 40
1(k
)
contr
ibutio
ns) and a 16
% of sa
lar
y supp
lem
ent
al emp
loyer
DC
P co
ntributio
n.
V
ariable pa
y
APP
(cash an
d defe
rred sh
ares)
Ope
ration
Award levels a
re determi
ned b
as
ed on s
alar
y at 3
1 De
cem
ber 2
02
1
and are b
ase
d on a
chievem
ent vs t
arget un
der e
ach m
ea
sure.
For op
erating p
roi
t from rep
or
tabl
e se
gment
s, the 2
02
1 award
was se
t on the b
asi
s of a payout ran
ge of +/-
10% of t
arget p
ayout
for pe
rfo
rman
ce of +/-$25
m of targ
et pe
rfo
rmanc
e. O
utsi
de of this
rang
e, payout woul
d be on a s
traight-lin
e bas
is bet
ween thresho
ld
and -
$2
5m and b
et
ween +
$25
m and ma
ximum
. For ro
om
ope
ning
s and roo
m signi
ngs, th
e award was se
t on a strai
ght-line
bas
is be
twe
en thre
sho
ld and t
arget
, and t
arget an
d maxim
um:
•
threshold
is the mini
mum level th
at mus
t be ac
hieved fo
r there
to be an award in re
lation to th
at me
asure; s
ubje
ct to Co
mmit
tee
dis
cretion, n
o award is ma
de for a
chievem
ent b
elow thre
sho
ld.
•
targe
t
is the ta
rget level o
f achieve
ment a
nd res
ults in a t
arget
award for that m
ea
sure.
•
maximum
is th
e level of a
chievem
ent at wh
ich a ma
ximum
award for that m
ea
sure is re
ceive
d (capp
ed at 20
0% o
f sal
ar
y)
.
The C
omm
itte
e forma
lly reviews p
er
form
ance a
gain
st IH
G’s
Glo
bal M
etric
s as pa
rt o
f the APP s
tructu
re in con
side
ring wh
ethe
r
to appl
y disc
retion to ad
just o
utcom
es on th
e strate
gic me
asure
s.
AUD
ITE
D
115
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Directors
’ Remu
neration
Report
AUD
ITE
D
Dir
e
ct
ors’ Remu
nera
tion R
epor
t
c
onti
nu
e
d
Ann
ual Repor
t on Dir
ect
ors’ R
emuner
a
t
ion
c
o
ntin
u
e
d
APP ou
tco
me for 2
02
1
The p
er
form
ance m
ea
sures fo
r the 202
1 AP
P were dete
rmine
d
in ac
corda
nce w
ith the D
R Policy a
nd were:
•
op
eratin
g pro
it from rep
or
tab
le se
gme
nts (
70%);
•
roo
m signin
gs (15%); and
•
room openings
(15%
).
T
a
rget award was 11
5% of sal
ar
y and ma
ximum wa
s up to 20
0%
of targ
et for e
ach me
asu
re, subje
ct to an overa
ll cap o
n the
award of 20
0% of s
ala
ry. The tab
les b
elow s
how thre
shol
d, targ
et
and m
aximum o
ppo
r
tunit
y
, as we
ll as wei
ghting an
d actu
al
2021 achievement.
0
50
100
150
20
0
35
7.
5
7.
5
70
140
30
17.
3
15
15
Actual
Maximum
140
30
30
Ta
r
g
e
t
Threshold
Op
era
ting pro
it from repo
rt
ab
le segm
ent
s
Room signings
Room openings
APP mea
sure
s –
% of
total award
50
10
0
1
8
7.
3
20
0
APP
Perfor
mance
Achiev
ement
Weighting
Wei
ght
ed
achiev
ement
Op
er
atin
g pro
it f
rom re
po
rt
ab
le s
egm
en
ts: p
er
fo
rma
nc
e rel
ative to t
ar
get
Threshold
$222m
50%
70%
140.0
%
Ta
r
g
e
t
$29
6m
100
%
Maximum
$443m
20
0%
Actua
l
$535.
1m
20
0%
Roo
m sig
nin
gs (
k roo
ms)
Threshold
52.4
50
%
15%
30.0%
Ta
r
g
e
t
58.2
100%
Maximum
6
4.0
200
%
Actua
l
68.9
200%
Room openings
(k r
ooms)
Threshold
39.0
50
%
15%
1
7.
3
%
Ta
r
g
e
t
4
3.3
100
%
Actua
l
4
4.0
139.
2%
Maximum
4
7.
6
20
0%
Op
eratin
g pro
it from rep
or
tab
le se
gme
nts is a N
on-
GAA
P mea
sure
and exclu
des c
er
tai
n items fro
m ope
rating p
roit
. Additio
nall
y
, in
deter
mining o
pera
ting pro
it from re
por
ta
ble s
egm
ents fo
r APP
purp
ose
s, bu
dgete
d exchan
ge rates fo
r the year a
re use
d to ens
ure
like-
for
-like co
mpar
ison w
ith the AP
P targe
t set at th
e sta
rt
of the ye
ar
.
Op
era
ting p
roi
t from re
po
rt
abl
e se
gme
nts
(at actu
al exch
ang
e rate
s) (
se
e pa
ge 15
8)
$533.6m
Di
ere
nce d
ue to exch
ang
e rate
s
$1.5m
Op
era
ting p
roi
t from re
po
rt
abl
e se
gme
nts
(at 202
1 bu
dge
t excha
nge r
ates)
$535.
1m
L
TI
P 201
9/21 (gran
ted in 2
01
9)
Awar
ds are made annually and eligible ex
ecutives will receive
sha
res at the e
nd of th
at cycle, sub
jec
t to achieve
ment of th
e
pe
rfor
manc
e co
nditio
ns. C
ond
ition
s and wei
ghting are de
sc
ribe
d
on pa
ge 117
.
TSR m
ea
sures th
e return to sh
areho
lder
s by investin
g in IH
G
relati
ve to a comp
arator grou
p cont
aining th
e followi
ng majo
r
glob
ally br
ande
d co
mpeti
tors: Ac
cor S
.
A., C
hoic
e Hote
ls
Intern
ation
al Inc., H
ilton Worldw
ide H
oldin
gs In
c., Hyatt H
otel
s
Co
rpor
ation, M
arriot
t Intern
ation
al Inc., M
eli
a Hotel
s Intern
ationa
l
S.
A
., NH H
otels G
roup, and W
yndh
am Hote
ls & Re
sor
ts I
nc.,
as pe
r dat
a provide
d by our c
orpo
rate ban
kers so
urced f
rom
Thomson Reut
ers Datastr
eam.
Followin
g the ac
quis
ition an
d deli
sting of M
ille
nnium & C
optho
rne
Hote
ls PLC by Cit
y Devel
opm
ents L
imited i
n Octo
ber 2
019,
a Sing
apo
re-
bas
ed re
al es
tate co
mpa
ny
, it was re
moved from
the co
mpa
rator group fo
r the 20
19/21 cycl
e.
The s
hare pri
ce in re
spe
ct of th
e 2018/2
0 L
TI
P cycle h
as be
en
rest
ated u
sing th
e volume we
ighted ave
rage pr
ice of 5,072p fo
r
Keith Ba
rr and Eli
e Maa
louf an
d 5,1
4
3p for Pa
ul Edge
cli
e
-
J
ohn
son
on the d
ate of actu
al ves
ting on 24 Feb
ruar
y 202
1. T
here is a s
light
die
renc
e in the sh
are pric
e at the da
te of vestin
g for Keith B
arr
and Eli
e Maa
louf a
s our sh
are admi
nistrati
on po
rt
al ho
lds s
hares
for pa
rtic
ipant
s who are U
S citize
ns in a s
epa
rate entit
y to non
-U
S
par
tici
pants
. Fin
al vesti
ng trans
ac
tions a
re therefo
re carrie
d out
sep
aratel
y
, re
sulting i
n a slight s
hare pri
ce variati
on ba
se
d on the
timing th
at the t
wo trans
acti
ons t
ake plac
e. Th
e corre
spo
ndin
g
value
s show
n in the 20
20 rep
or
t (pri
or to the ac
tual ves
ting) were
an es
timate c
alcul
ated us
ing an avera
ge sh
are pric
e over the 
inal
quar
ter o
f 2020 of 4
,4
60
p.
L
TI
P outc
ome fo
r 20
19/21 cycle
The p
er
form
ance m
ea
sures fo
r the 20
19/21 thre
e
-year L
T
IP cycl
e
were dete
rmine
d in ac
cord
anc
e with the D
R Polic
y and were:
•
T
otal S
hareh
old
er Return (40
%);
•
T
otal G
ros
s Revenue (
20%);
•
ne
t system si
ze grow
th (20
%); and
•
c
ash 
low (20
%).
The fo
llowing t
abl
es sh
ow thres
hold a
nd ma
ximum op
por
tuni
ty
,
as well a
s weighti
ng and a
ctual a
chievem
ent, b
as
ed on th
e
formul
aic outc
ome
s aga
inst th
e three
-year t
arget
s set in 2
019,
and fol
lowing th
e appl
icatio
n of C
ommit
tee di
screti
on, for e
ach
pe
rfo
rma
nc
e me
asu
re.
0
20
40
60
80
10
0
Maximum
40
20
20
20
20
8
4
4
4
Actua
l
Threshold
T
ota
l
Sh
areh
old
er Return
Total Gros
s Revenu
e
Ne
t
syst
em size grow
th
Cas
h
l
ow
L
TIP mea
sure
s –
% of
max
imum opp
or
tuni
ty
20
20
10
0
Gove
rn
an
c
e
116
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Performance measure
and w
eighting
Performance tar
gets
Resu
lt
Formulaic achievement
Discretionar
y
outcome
Ta
r
g
e
t
% V
esting
T
ot
al Shareh
olde
r Return:
Thre
e
-yea
r grow
th rel
ative to ave
rag
e
of competi
tors
40%
Maximum
83
.4%
Maximum
100%
Outc
om
e
1
7.
9
%
Below thr
eshold
0%
Threshold
26.0
%
Threshold
20%
T
ota
l Gro
ss R
even
ue:
ba
se
d on IH
G
’s per
form
anc
e ag
ains
t
an ab
so
lute Total G
ros
s Reven
ue ta
rget
20%
Maximum
$5.6
3bn
Maximum
100%
Outc
om
e
$
-7.
9
2
b
n
Below thr
eshold
0%
Threshold
$3.94bn
Threshold
20%
Ne
t syste
m siz
e grow
th
:
ba
se
d on IH
G
’s per
form
anc
e ag
ains
t
an absolute NSSG target
20%
Maximum
159.0k
rooms
Maximum
100%
Outc
om
e
84.6k r
ooms
Below thr
eshold
0%
Threshold
111.3
k room
s
Threshold
20%
Cash lo
w:
ba
se
d on IH
G
’s per
form
anc
e ag
ains
t
an ab
so
lute c
ash 
low t
arge
t
20%
Maximum
2.49bn USD
Maximum
100%
Rep
or
ted O
utc
ome
1.4
9
bn US
D
Below thr
eshold
20%
Threshold
1.87bn USD
Threshold
20%
Adjust
ed Outcome
1.7
8
bn
US
D
LT
I
P
As outl
ine
d in the Ch
air
’
s St
ateme
nt on pa
ges 1
04 to 108
, the Rem
uner
ation C
ommi
tte
e has exerci
sed i
ts dis
cretio
n to adjus
t the
formul
aic outc
ome of t
he 20
19/21 L
TIP
. Thi
s cycle will ve
st on 2
3 Februa
ry 2
02
2 and i
s the i
rst un
der wh
ich E
xecuti
ve Direc
tors are
subj
ect to a t
wo
-year po
st-vest ho
ldin
g peri
od. T
he indi
vidua
l outco
me
s for this cycl
e are shown b
elow.
The s
hare pri
ce of 4,
85
8p us
ed to c
alcul
ate the 20
19/21 L
TI
P cycle valu
e shown in th
e sing
le ig
ure tab
le is th
e average over th
e in
al
quar
ter o
f 202
1.
Executive Directo
r
Awar
d cycl
e
Maximum
oppor
tunity at grant
(num
be
r of s
ha
res)
% of m
axim
um
opportunity
ves
ted
Outcome
(num
be
r of s
ha
res
awa
rde
d at ve
st)
T
otal value
of award
£000
Valu
e of awa
rd
attributable
to share
price apprecia
tion
Kei
th B
a
rr
LT
I
P
2
0
1
9
/
2
1
34,693
20%
6,938
337
-7
Paul E
dgeclie-
Johnson
LT
I
P
2
0
1
9
/
2
1
25,50
9
20%
5
,1
0
1
24
8
-5
Elie Maalouf
LT
I
P
2
0
1
9
/
2
1
25,802
20
%
5
,1
6
0
2
51
-5
Adju
st
me
nts to c
as
h low ou
tco
me
Over th
e pe
rfo
rmanc
e pe
riod of th
e 201
9/21 L
TIP award th
ere
have be
en event
s that have imp
acte
d IH
G’s cas
h low th
at were
unqu
anti
ied o
r unfore
see
n whe
n the orig
inal t
arget
s were set
.
In lin
e with the a
djustm
ents re
por
te
d in the 20
19 an
d 2020 A
nnual
Rep
or
ts, the t
abl
e bel
ow show
s the rec
onci
liation b
et
ween
repo
rte
d ca
sh l
ow and th
e outco
me for the 2
019/2
1 L
T
IP
.
Reconciliation
Cash l
ow
$bn
Rep
or
te
d cas
h l
ow from o
pe
ratio
ns
2
.06
Ne
t cas
h from i
nves
ting a
ctiv
itie
s
(0.
57
)
Reported out
come per deinit
ion
1.49
Six Senses acquisiti
on
0.2
9
Adju
sted outc
ome
1.7
8
Adju
st
me
nt to net sys
tem s
ize grow
t
h outc
ome
The fo
rmulai
c NS
SG L
T
IP ou
tcom
e above inc
lude
s the s
ame
adju
stme
nt repo
rte
d for the 2
018/20 cycl
e las
t year to exclud
e
the rem
oval from IH
G bra
nds of ro
oms a
ss
ociate
d with th
e SVC
por
t
folio toward
s the en
d of 202
0 due to the SVC man
age
ment
agre
eme
nt termin
ation. T
he formu
laic ou
tcom
e also i
nclu
des a
n
adju
stme
nt to exclude ro
om removal
s incre
ment
al to our n
ormal
level du
e to the Ho
liday In
n and Crow
ne Pla
za e
state revi
ew in 202
1.
The
se event
s were not b
udg
eted for at t
he time of s
et
ting the
201
9/21 ta
rgets an
d the C
ommi
tte
e, in its ju
dge
ment, c
on
side
red
it was ap
prop
riate to adjus
t for the
m on the b
asi
s of its vi
ew that
L
T
IP pa
rtic
ipant
s sho
uld not h
ave bee
n disi
nce
ntivis
ed from
mak
ing the
se de
cis
ions i
n the lon
g-te
rm interes
t of sh
areho
lde
rs.
AUD
ITE
D
117
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Directors
’ Remu
neration
Report
AUD
ITE
D
Dir
e
ct
ors’ Remu
nera
tion R
epor
t
c
onti
nu
e
d
Ann
ual Repor
t on Dir
ect
ors’ R
emuner
a
t
ion
c
o
ntin
u
e
d
Other outstanding
awar
ds
Sc
he
me inte
re
sts awa
rde
d du
ring 2
020 a
nd 20
21
Duri
ng 202
0 and 20
21, award
s were grante
d und
er the L
TI
P cycle and m
ade to e
ach E
xecu
tive Dire
ctor over s
hare
s with a max
imum
value of 2
05% of s
ala
ry in 2
020 an
d a max
imum valu
e of 35
0% in 20
21 fo
r the C
EO and 27
5% for all othe
r E
xecutive D
irecto
rs us
ing an
average o
f the clo
sing m
id-
market sh
are pric
e for the 
ive days p
rior to grant
, as in the t
abl
e bel
ow
. The
se are in th
e form of c
ondi
tiona
l
awards over C
omp
any share
s and d
o not ca
rry t
he right to div
iden
ds or di
vide
nd e
quivale
nts dur
ing the ve
sting p
erio
d.
The ve
sting d
ate for the 20
20/2
2 L
TI
P award is the d
ay afte
r the ann
ounc
eme
nt of our 
ina
ncia
l year 20
22 P
relimin
ar
y Resu
lts in
Febru
ar
y 2023
. The
se award
s will ves
t to the exte
nt per
form
anc
e targe
ts are me
t and will th
en b
e held i
n a nomin
ee a
cco
unt for
a fur
ther t
wo year
s, tran
sferrin
g to the award-
hol
der in Fe
bruar
y 20
25.
The ve
sting d
ate for the 20
21/23 LTIP award is the d
ay afte
r the ann
ounc
eme
nt of our 
ina
ncial ye
ar 20
23 Prelim
inar
y Res
ults in
Febru
ar
y 2024. T
hes
e awards wi
ll vest to the ex
tent p
er
forma
nce t
arget
s are met an
d will the
n be h
eld in a n
omin
ee ac
cou
nt for
a fur
ther t
wo year
s, tran
sferrin
g to the award-
hol
der in Fe
bruar
y 20
26.
Altho
ugh the a
pproved D
R Poli
cy per
mitte
d award level
s of 35
0% an
d 27
5% of sal
ar
y resp
ec
tively for th
e CEO and o
ther E
xecu
tive
Dire
ctors fo
r the 20
20/22 cycl
e, the ac
tual award
s granted fo
r this cycle we
re mad
e at the previ
ous m
aximum awa
rd level of 20
5%
for all E
xecu
tive Dire
ctors
. Prior to m
aking th
e awards, th
e Co
mmit
tee note
d the vi
ews of so
me inves
tors in rel
ation to the s
ize of sh
are
awards wh
ere the s
hare pri
ce ha
d falle
n subs
tanti
ally rel
ative to the prio
r year
’s grant and the p
otentia
l windfa
ll gain
s which c
ould o
cc
ur
if and w
hen s
hare pri
ces re
covere
d. Th
e grant pri
ce for th
e 2020/2
2 cycle wa
s £3
4.
96
, repre
sentin
g a redu
ction of ~29
% from the g
rant
pric
e for the 20
19/2
1 cycle awards
. The u
se of lowe
r maxi
mum opp
or
tunit
y leve
ls resu
lted in fewe
r sha
res be
ing awarde
d to the
E
xecutive D
irecto
rs than wo
uld have b
een th
e ca
se if award
s were grante
d at the leve
ls pe
rmit
ted un
der th
e DR Pol
icy (~41% fewer
sha
res in the c
as
e of the C
EO and ~25% fewer for th
e other E
xec
utive Dire
ctor
s
). The C
omm
itte
e will c
onsi
der wh
ethe
r it is ap
propri
ate
to adjus
t the form
ulaic o
utcom
e at the tim
e of vesti
ng, inc
luding t
aki
ng into acc
ount th
e moveme
nt in sh
are pric
e bet
wee
n grant an
d
vesti
ng dates
, in the c
ontext of a
ny potentia
l windf
all gain
s.
Executive Directo
r
Award date
Maximum
shares aw
arded
Market price
per share at grant
£
Fac
e valu
e of
award at grant
£000
Nu
mb
er of s
ha
re
s
re
cei
ved i
f min
im
um
performance
achieved
2021/
23 c
ycle
Kei
th B
a
rr
10 M
ay 202
1
59,
38
5
50.8
8
3,0
2
2
11,
87
7
Paul E
dgeclie-
Johnson
10 M
ay 202
1
34,310
5
0.88
1
,74
6
6,862
Elie Maalouf
10 M
ay 202
1
3
2,
525
50.8
8
1,6
55
6,505
2020/
22 cy
cle
Kei
th B
a
rr
1
2 May 20
20
4
9
,1
5
3
34.9
6
1
,7
18
9,8
30
Paul E
dgeclie-
Johnson
12 May 20
20
36,
140
34.96
1,26
3
7,
2
2
8
Elie Maalouf
12 May 2
020
38,4
63
3
4.96
1,3
45
7,
6
9
2
Performance measures and considerat
ion of
discretion
The p
er
form
ance m
ea
sures fo
r the 202
0/22 cycl
e are as agre
ed i
n the 20
20 DR Po
licy: Relati
ve TSR
, T
o
tal G
ross Reve
nue (
TGR),
net sys
tem size g
rowth a
nd ca
sh l
ow for the thre
e year
s endi
ng 31 D
ec
emb
er 20
22
. NS
SG is a re
lative me
asu
re and is m
eas
ured to
30 S
eptemb
er rath
er tha
n 31 D
ece
mbe
r due to the ti
ming of p
ublic
ation o
f comp
etitor d
ata. M
inimum p
er
form
anc
e is eq
ual to 20%
of the m
aximum awa
rd.
As note
d in the 20
20 Di
rector
s’ Remu
nerati
on Rep
or
t, TGR wa
s removed f
rom the L
TIP m
eas
ures for th
e 202
1/23 cycle, w
hich c
overs
the thre
e years e
ndin
g 31 D
ece
mbe
r 202
3, and th
e weightin
gs for rel
ative NS
SG an
d abs
olute c
ash 
low were b
oth incre
ase
d, ma
intaini
ng
a simil
ar bal
anc
e bet
wee
n abs
olute an
d relative m
eas
ures a
s for the prev
ious cycl
e. TGR is h
eavily i
mpac
ted by the p
ace a
nd sh
ape
of market Rev
P
AR rec
over
y
, whi
ch is ou
tsid
e of man
age
ment
’s control a
nd rem
aine
d ver
y unpre
dict
abl
e at the time o
f set
ting t
argets
.
Relati
ve NS
SG for b
oth cycle
s is subj
ect to th
e achieve
ment o
f a ROC
E und
erpin o
f 20%
, be
low whic
h the C
ommit
te
e has th
e disc
retion
to reduc
e the o
utcom
e for the m
eas
ure. Th
e unde
rpin was i
ntroduc
ed to e
nsure I
HG
’
s high retur
ns on c
apit
al were pri
oritis
ed in s
trategi
c
dec
isio
n-
mak
ing (e.g. M&
A activ
ity) as o
ppo
se
d to simpl
y rel
ectin
g tradin
g per
form
anc
e. As note
d in la
st year
’s repor
t an
d the Ch
air’s
let
ter to this ye
ar’s repo
rt
, the C
ommit
tee i
s mind
ed not to re
duc
e the N
SSG ve
sting o
utcom
e for the 2
020/2
2 cycle if th
e unde
rpin is
not me
t by reas
on only o
f the imp
act o
n earni
ngs of th
e pand
emic
.
As note
d in the C
hair
’s Statem
ent on p
age
s 104 to 10
8, the C
omm
itte
e is trac
king a s
had
ow cas
h low t
arget in re
sp
ect o
f the 20
20/22
L
T
IP cycle a
nd ha
s indic
ated th
at this sh
adow t
arget wi
ll be high
ly releva
nt when c
ons
ide
ring the ve
sting o
f this cycle in e
arly 2
023
.
The s
had
ow targe
t is dis
clos
ed o
n pag
e 124 of this rep
or
t.
Any use of d
isc
retion, in
cludi
ng the fa
ctors in
lu
enci
ng the de
cis
ion, wil
l be cl
early c
omm
unica
ted in the D
irec
tors’ Re
mune
ration
Rep
or
t for the yea
r in whic
h the de
cisi
on is m
ade.
Gove
rn
an
c
e
118
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Executiv
e Direct
ors’
shareholdings and share i
nterests
The C
omm
itte
e be
lieves th
at share ow
ner
ship by E
xecuti
ve
Dire
ctors a
nd se
nior exec
utives s
trength
ens th
e link b
etwe
en
the in
dividu
als’ p
ers
onal i
nteres
ts and th
ose o
f share
hol
der
s.
Guid
eline E
xecutive Direc
tor share
holdin
g require
ment
E
xecutive D
irecto
rs are req
uired to ho
ld sh
ares e
qual to 50
0
%
of sa
lar
y for the C
hief E
xec
utive O
ic
er an
d 30
0% for any oth
er
E
xecutive D
irecto
r
. E
xec
utive Dire
ctors a
re expe
cted to ho
ld all
net s
hares e
arne
d until th
e previou
s guid
eline s
hare
hold
ing
requi
reme
nt is ach
ieved (30
0% fo
r the CEO an
d 200
% for oth
er
E
xecutive D
irecto
rs) and at le
ast 5
0% of all s
ubs
equ
ent net s
hare
s
earn
ed unti
l the curre
nt guide
line s
hareh
oldi
ng is me
t. The n
umbe
r
of sh
ares he
ld ou
tright inc
lude
s all Dire
ctor
s’ be
ne
icia
l interes
ts
and th
ose h
eld by the
ir sp
ous
es an
d other c
onn
ecte
d pe
rso
ns.
It als
o inc
lude
s the ne
t value of unve
sted s
hare
s that are not
subj
ect to any fur
the
r pe
rfo
rmanc
e co
nditio
ns.
Perc
enta
ges a
re calc
ulate
d using th
e 31 D
ec
emb
er 20
21 s
hare
pric
e of 4,781p.
The full guidelin
e minimum shareholdin
g requirement continue
s
for six m
onths af
ter c
es
sati
on of em
ploym
ent and 5
0% of th
e
requi
reme
nt contin
ues fo
r an add
itiona
l six mo
nths. A
s a par
t
of this re
quirem
ent, s
ince 2
019, s
hares h
ave bee
n grante
d and
all unves
ted awards h
eld in a n
omin
ee ac
cou
nt with E
xecuti
ve
Dire
ctors re
quire
d to ele
ctronic
ally s
ign an ag
reem
ent to the
terms o
f the grant
, inclu
ding th
e pos
t-emp
loyme
nt
shareho
lding requirement.
0
200
400
600
800
1
,00
0
1,
20
0
1,4
00
1
,60
0
Sha
res hel
d
outr
ight and net
valu
e
of share
s
sub
jec
t
to
ho
ldin
g/defer
ral perio
d
T
ota
l
numb
er of
sha
res and awards as
a
%
of salar
y
Sh
are
s and award
s held by Execu
tive Dire
ctor
s
at 31 Dec
emb
er 20
21: % of
sa
lar
y
519
532
1,30
9
1,49
6
1,39
4
669
K
eith Bar
r
Paul
Edgeclie-
Johnso
n
Elie Maa
lou
f
Guidelin
e
s
hareholding
Per
ce
nta
ge
s have b
ee
n ca
lcu
late
d us
ing a c
om
bin
ed t
ax an
d so
cia
l se
cur
it
y rate
of 47
% for Ke
ith B
arr a
nd Pa
ul Ed
ge
cli
e
-John
so
n and a r
ate of 4
5.1% fo
r Eli
e Ma
alo
uf.
Curr
ent
Direct
ors
’ shar
eholdi
ngs
The A
PP defe
rred s
hare awards are n
ot subj
ect to p
er
forma
nce c
ondi
tions
. Det
ails o
n the pe
r
forman
ce co
nditi
ons to whi
ch the unves
ted
L
T
IP awards a
re still sub
ject c
an b
e found o
n pag
e 118. Th
ere have be
en n
o chan
ges in th
e sha
rehol
ding inte
rest
s of any of the D
irecto
rs
sinc
e the e
nd of the 
ina
ncial ye
ar up to the p
ublic
ation of t
his rep
or
t.
Sh
are
s and aw
ard
s hel
d by Exec
utive D
ire
ctor
s at 31 D
ec
emb
er 2
02
1: num
be
r of sh
are
s
Nu
mb
er of s
ha
re
s he
ld ou
tri
ght
A
PP de
fer
red s
ha
re awa
rd
s
L
TI
P sh
ar
e awar
ds (unve
st
ed
)
T
ot
al nu
mb
er of
shares and a
wards held
2021
2020
2021
2020
2021
2020
2021
2020
Kei
th B
a
rr
81,830
70,
279
26
,69
6
3
7,
7
0
5
143,231
119,
2
27
2
51
,7
57
2
2
7,
2
1
1
Paul E
dgeclie-
Johnson
5
8,7
2
3
53
,376
1
9,1
3
7
26
,7
51
95,95
9
86
,479
173,819
166
,60
6
Elie Maalouf
74
,
6
9
8
67
,428
19,6
25
25,41
7
96,
790
88,
691
1
9
1
,1
1
3
181,5
36
Othe
r information relati
ng to Directors’ remun
eration
Con
siderati
on of discretio
n
The C
omm
itte
e’s consi
derati
on of dis
cretio
n in resp
ec
t of 202
1
remun
eratio
n outco
me
s is covere
d in det
ail on p
age
s 104 to 107
.
Duri
ng the yea
r
, the C
omm
itte
e als
o conti
nued to tra
ck the fo
reca
st
vesti
ng outc
ome for th
e 202
0/22 L
TIP cycl
e. No d
eci
sion
s will b
e
mad
e until the e
nd of the cyc
le’s per
forman
ce p
erio
d, however
, the
Co
mmit
tee’s approa
ch for th
e cas
h low t
arget a
nd RO
CE un
derp
in
for the 2
020/2
2 cycle is d
esc
ribe
d on p
age
s 124 and 125
.
Dividends
paid t
o Ex
e
cuti
ve
Direct
ors
No div
ide
nds we
re paid ou
t by IH
G in 202
1.
AUD
ITE
D
119
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Directors
’ Remu
neration
Report
Dir
e
ct
ors’ Remu
nera
tion R
epor
t
c
onti
nu
e
d
Ann
ual Repor
t on Dir
ect
ors’ R
emuner
a
t
ion
c
o
ntin
u
e
d
Relative per
formance gra
ph
Inter
Co
ntinent
al H
otels G
roup PLC is a me
mbe
r of the F
TS
E 10
0 sha
re index
, and th
e graph b
elow s
hows the C
om
pany
’
s T
ot
al Sh
areho
lde
r
Return (
TS
R) pe
rfor
manc
e from 31 D
ec
emb
er 20
11 to 31 D
ece
mb
er 202
1, as
sum
ing divi
den
ds are reinves
ted, c
omp
ared wi
th the TS
R
pe
rfor
manc
e achi
eved by the F
TS
E 10
0.
0
100
200
300
400
500
600
IH
G PLC
FT
SE 10
0 Index
2011
2
012
20
13
2014
20
15
2016
20
17
2018
2019
2020
2021
Chief Executive
Oic
er’
s remuneration
The t
abl
e bel
ow shows th
e Chie
f Exe
cutive O
i
cer
’s single 
igure of tot
al remu
nerati
on for the 1
0 years to 3
1 De
cem
ber 2
02
1.
Single igur
e
CEO
2012
2
013
20
14
2015
2016
2017
2018
2019
2020
2021
Single igure
of remuneration
(£
000)
Kei
th B
a
rr
2,
161
3,1
4
3
a
3,
376
1,48
4
3
,17
6
Richard
Solomons
4,881
3
,1
3
1
6,611
b
3,1
9
7
3
,662
2,
207
c
Annual incentive
rec
eive
d
(% of ma
ximu
m)
Kei
th B
a
rr
6
9.7
8
4
.1
58.7
0
20
0.0
Richard
Solomons
6
8.0
74
.
0
74
.
0
75
.0
63.9
66.8
Sha
res re
ceive
d
und
er th
e L
T
IP
(%ofma
ximu
m)
Kei
th B
a
rr
4
6
.1
45.4
78.9
30.6
20.0
Richard
Solomons
100.0
5
9.0
56.1
5
0.0
4
9.4
4
6
.1
a
For Kei
th Ba
rr, the 20
18 
igu
re inc
lud
es a o
ne
-
o c
as
h paym
en
t for re
lo
cat
ion c
os
ts in l
ieu o
f be
ne
it
s rec
ei
ved w
hil
st on i
nte
rnat
ion
al a
ssi
gnm
ent p
rio
r to C
EO pos
iti
on, f
ully e
xpl
ain
ed
in th
e 20
17 rep
or
t.
b
Fo
r Ri
cha
rd So
lo
mon
s, th
e 20
14 i
gure i
ncl
ud
es a on
e
-o
 ca
sh p
aym
ent in r
es
pe
ct of p
en
sio
n ent
itl
eme
nt
s whic
h was f
ull
y expl
ain
ed i
n the 2
014 re
po
r
t.
c
In re
sp
ec
t of p
eri
od 1 J
anu
ar
y to 30 J
un
e 201
7
.
Grow
th o
f com
pa
ny vs grow
th of C
EO pay
As an ad
ditio
nal po
int of refere
nce, th
e cha
rt b
elow s
hows C
EO single 
igure t
able re
mune
ration ove
r the pa
st 10 yea
rs as di
scl
ose
d above,
excludin
g the 20
14 one
-
o c
ash p
ayment to Ri
chard S
olo
mons i
n resp
ect o
f pen
sio
n entitle
ment
s, and th
e Co
mpany
’s net system s
ize grow
th,
a key metric in ou
r Long T
erm In
ce
ntive Plan, a
nd in our A
nnual P
er
forma
nce Pl
an in rec
ent yea
rs, an
d aligne
d to our am
bitio
n. Subj
ect to
pe
rfor
manc
e achi
eveme
nts, in
crea
sed LTIP grant leve
ls ma
de sin
ce 20
21 u
nder th
e app
roved 202
0 Dire
ctors’ Re
mune
ration P
olicy s
hould
in due c
ours
e co
ntribute towards b
ridgi
ng the ga
p bet
wee
n the grow
th in pay of th
e CEO and th
e grow
th of the C
omp
any
.
-80
-60
-40
-20
0
20
40
NSSG
C
EO
2011
2 0
12
2013
20
14
201 5
20
16
20
17
20
18
20
19
2020
2021
Gove
rn
an
c
e
120
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
CEO pay ratio
As we have note
d in previ
ous An
nual Re
por
ts
, pay ratios w
ill die
r
signi
ic
antly b
et
ween c
omp
anie
s, even with
in the s
ame in
dustr
y
,
depending on demogr
aphics and
business models. The Group
’s
UK e
mploye
e dem
ograp
hic, whic
h prim
arily co
nsi
sted o
f large
ly
profes
sio
nal, m
anag
eme
nt and s
enio
r corp
orate rol
es, c
hang
ed in
201
9 with the a
dditio
n of a numb
er of h
otel em
ploying e
ntitie
s which
incl
ude a la
rge prop
or
tion of p
ar
t-time and 
lexibl
e
-worki
ng supp
or
t
and s
er
vic
e roles
. As p
er las
t year
’s repor
t, we s
how be
low the ratio
both in
clud
ing and exclu
ding th
e new U
K empl
oying enti
ties
.
On a like
-for-like pop
ulatio
n bas
is with ou
r origin
al dis
clo
sure in
the 20
18 Ann
ual Rep
or
t, th
e medi
an ratio h
as inc
reas
ed from 2
6:1 in
202
0 to 42:
1 in 20
21 bu
t is down o
n the pre
-
pand
emic ye
ars of 2
018
and 20
19. 20
20 was im
pac
ted by acti
ons t
aken on p
ay as outlin
ed
in the 20
20 Ann
ual Rep
or
t and l
ower varia
ble in
centi
ve pay
. I
n 202
1,
the stro
ng pe
rfo
rmanc
e in the A
PP has b
en
e
ited b
oth the C
EO and
the wid
er c
orpo
rate pop
ulatio
n. L
TIP award
s bel
ow the E
xecuti
ve
Co
mmit
tee in th
e form of res
tricte
d stoc
k and top
-
up awards b
elow
the B
oard me
ant that th
e 20
19/21 L
TIP award va
lues we
re lower a
s a
pe
rcent
age of m
aximu
m for the C
EO than othe
r eligi
ble em
ployee
s.
On thi
s bas
is, the C
om
pany be
lieves th
e med
ian pay ratio fo
r the
relevant 
ina
ncia
l year is c
ons
istent w
ith the p
ay
, reward and
progre
ss
ion p
olici
es for th
e Com
pany
’s UK empl
oyees t
aken
as a wh
ole, an
d as outl
ine
d on pag
e 112.
Ful
l population
Population ex
cluding hotel
employing entities
Ye
a
r
Method
25th
Median
75th
25th
Median
75th
Financia
l
yea
r end
ed
31 December
2021
Option
C
16
3:1
65
:1
41:1
57:1
42
:1
2
8:1
Financia
l
yea
r end
ed
31 December
2020
Optio
n
C
8
9
:1
4
4:1
25:1
3
5
:1
26
:1
1
8
:1
Financia
l
yea
r end
ed
31 December
2019
Optio
n
C
1
8
0
:1
12
2
:1
5
9
:1
7
1
:1
4
9
:1
32
:1
Financia
l
yea
r end
ed
31 December
2018
Optio
n
C
–
–
–
7
2
:1
4
8
:1
2
9
:1
Th
e 201
8, 2
019 a
nd 2
020 
ig
ure
s have b
ee
n res
tat
ed to re
l
ec
t the va
lue o
f the C
EO’s LTIP
awar
ds on t
he da
te of ac
tua
l ves
tin
g rath
er th
an th
e es
tim
ate
d ves
ting l
eve
ls us
ed i
n the
respective years’ Annual Reports.
Wha
t drives t
he di
ffe
ren
ce i
n pay bet
wee
n ou
r CEO
an
d othe
r em
ployee
s?
Pay ratios re
le
ct how re
mune
ration a
rrange
ment
s die
r as
resp
on
sibilit
y inc
reas
es fo
r more se
nior ro
les w
ithin the o
rganis
ation,
for exa
mpl
e:
•
a gre
ater prop
or
tion of p
er
form
ance
-
relate
d variab
le pay an
d
sha
re-
bas
ed in
ce
ntives ap
ply for th
e more s
enio
r executive
s,
incl
uding E
xec
utive Dire
ctors
, who wil
l have a greater d
egre
e
of in
luen
ce over p
er
forma
nce o
utcom
es;
•
role
-
sp
eci
ic s
pe
ciali
st pl
ans ap
ply in c
er
tain are
as su
ch as
cor
porate re
ser
vatio
ns, s
ale
s, hotel d
evelo
pme
nt and G
ene
ral
Man
age
rs of I
HG ma
nag
ed, own
ed, le
as
ed an
d man
age
d lea
se
hotel
s. Th
e targe
t and ma
ximum am
ount
s that ca
n be e
arne
d
unde
r the
se pl
ans are t
ypi
cally a h
ighe
r perc
enta
ge of b
ase s
alar
y
for mo
re seni
or emp
loyee
s, whic
h in turn ae
ct the p
ay ratio; and
•
inc
entive p
lans fo
r other c
orp
orate em
ployee
s are ty
pic
ally ba
se
d
on a co
mbin
ation of in
divid
ual p
er
forman
ce an
d the G
roup’s
ope
rating p
roit f
rom repo
r
tabl
e se
gment
s.
Calculation methodology
and supporting inf
ormation
Optio
n C has b
ee
n sel
ec
ted for th
e identi
ic
atio
n of the pe
rcenti
le
emp
loyees
. IH
G prefe
r to use thi
s metho
d as we are ab
le to prod
uce
the mo
st ac
curate tot
al remun
eratio
n igu
re for all U
K empl
oyees
on a ba
sis c
omp
arabl
e with the s
tatutor
y rep
or
ting fo
r Exe
cutive
Dire
ctors u
sing th
e mos
t availabl
e data a
t the time of p
rodu
cing
the Annual Repor
t. Speci
ically
, this involves:
•
co
mpili
ng all mo
nthly payrol
l data fo
r all UK e
mpl
oyees from
1 Jan
uar
y to 31 D
ece
mbe
r 202
1 det
ailin
g comp
lete vari
able a
nd
ixe
d remun
eratio
n, inclu
ding p
ens
ion an
d taxa
ble b
ene
it
s suc
h
as company car or allowance and healthcare; and
•
valui
ng APP fo
r the co
rpora
te work
force ba
se
d on ac
tual 20
21
company per
formance metrics and budgeted t
arget personal
pe
rfor
manc
e so th
at it rel
ect
s the s
ame in
put as fo
r the C
EO data.
Optio
n C requ
ires thre
e UK e
mployee
s to be id
enti
ie
d as the
equ
ivalen
t of the 25th, 5
0th a
nd 75th p
erce
ntile. H
aving i
denti
ie
d
the
se emp
loyee
s, the 20
21 re
mune
ration i
s cal
culate
d on the s
ame
bas
is as th
e CEO sin
gle total 
igure o
f remune
ration
.
The 2
02
1 sal
ary a
nd tota
l pay for the in
divid
uals i
denti
ie
d at the
lower
, me
dian an
d upp
er qua
rtil
es are s
et out b
elow.
Ye
a
r
25th
percenti
le
pay ratio
Median
pay ratio
75th
percenti
le
pay ratio
Fin
anc
ial ye
ar en
de
d
31 December 2021
– F
ull population
Sal
ar
y £
18,28
5
4
4,28
1
59,597
To
t
a
l
remuner
atio
n £
1
9,5
40
4
9,0
20
7
7,
8
3
2
Fin
anc
ial ye
ar en
de
d
31 December 2021
– E
xclud
ing ho
tel
empl
oying entiti
es
Sal
ar
y £
4
4
,02
7
6
1
,1
2
5
81,
239
To
t
a
l
remuner
atio
n £
5
5
,73
2
7
5,0
5
5
115,
37
7
Rel
ative im
por
ta
nc
e of sp
en
d on pay
The c
har
t be
low set
s out th
e actua
l expe
nditure of th
e Group i
n
202
1 and 2
020, sh
owing th
e diere
nce
s bet
we
en tho
se year
s.
Furthe
r inform
ation, in
cludi
ng whe
re 2020 
igure
s have be
en res
tate
d,
can b
e foun
d in the Gro
up Fin
ancia
l State
ment
s st
arti
ng on pa
ge 128
and th
e acc
omp
anying note
s.
0
500
1,
000
1,50
0
0
0
0.0%
143
.8%
$m
6.3%
1,3
58
1,
444
2020
2021
2020
2021
20
20
2021
Rep
or
ta
ble se
gme
nts
op
erati
ng prof
it
Div
ide
nd
s
pa
id
to
shar
eholders
St
a cos
ts
534
219
121
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Directors
’ Remu
neration
Report
AUD
ITE
D
Dir
e
ct
ors’ Remu
nera
tion R
epor
t
c
onti
nu
e
d
Ann
ual Repor
t on Dir
ect
ors’ R
emuner
a
t
ion
c
o
ntin
u
e
d
Annual percentage change in
remuneration
of Dir
ectors compared t
o emplo
yees
The t
abl
e bel
ow shows th
e perc
ent
age ch
ange i
n all Dire
ctors
’ remune
ration c
omp
ared to th
at of an averag
e emp
loyee be
twe
en the 
ina
ncial
years e
nde
d 31 D
ec
emb
er 20
19 to 31 D
ec
emb
er 20
21
.
The re
mune
ration 
igure
s for the D
irecto
rs were t
aken from the d
ata us
ed to c
ompil
e the sin
gle 
igure ta
ble
s of remun
eratio
n show
n on
pag
es 115 a
nd 123 exclu
ding any roun
ding up o
r down. N
o emp
loyees a
re directl
y emp
loyed by the G
roup’s Parent Co
mpany
, so the aver
age
emp
loyee dat
a for this ye
ar
’
s repo
rt i
s bas
ed o
n the sa
me U
K corp
orate e
mployee p
op
ulation a
s that on w
hich th
e CEO pay ratio i
s calc
ulate
d.
Sal
aries we
re redu
ce
d for par
t of th
e year in 20
20, acc
ountin
g for the ye
ar
-o
n-yea
r variatio
ns for b
oth 2020 v
s 201
9 and 20
21 v
s 2020.
Elie M
aalo
uf
’s salar
y is p
aid in U
SD b
ut repo
rte
d in the s
ingle 
igure t
abl
e in GB
P and, a
s suc
h, his yea
r
-
o
n-year c
hang
e is als
o imp
acte
d
by chan
ges in exch
ange r
ates be
twe
en yea
rs.
No b
onus wa
s pai
d to Exec
utive Dire
ctor
s or othe
r corp
orate e
mployee
s for 20
20, which i
s rel
ec
ted in the b
onu
s perc
ent
age ch
ange
s for
both 20
19
20 and 20
20
21. No
n-
E
xecuti
ve Direc
tors are no
t eligib
le for a b
onus
.
T
a
xabl
e ben
e
its for N
on
-E
xec
utive Dire
ctor
s are large
ly co
nstitu
ted of travel exp
en
ses
, which we
re signi
ic
antly im
pac
ted by travel res
trictio
ns
during 2
020 an
d 202
1, wh
erea
s Exe
cutive D
irecto
r and averag
e emp
loyee ta
xabl
e ben
e
its t
ypic
ally c
omp
rise e
lem
ents of th
eir reward
pac
kage s
uch a
s com
pany car o
r allowan
ce an
d hea
lthc
are ben
e
its
.
Y
e
ar-on-
year
change 2021
vs
2020
Y
ear-on-y
ear change
2020 vs 2019
Salary
Bonus
T
axable beneit
Salar
y
B
onus
Ta
x
a
b
l
e
b
e
n
e

i
t
Executive Dire
ctors
Kei
th B
a
rr
20%
10
0%
-9%
-14%
-10
0
%
2
5%
Paul E
dgeclie-
Johnson
20%
10
0%
-
8%
-1
3%
-1
00
%
-14%
Elie Maalouf
14%
100%
79%
-15
%
-1
0
0%
-1
0
%
Non-Executive
D
irectors
Patrick Ce
sc
au
18%
N
/A
-80%
-13%
N/A
-53%
Graham Allan
–
N
/A
–
–
N
/A
–
Daniela Barone Soares
–
N
/A
–
–
–
–
Ar
thur d
e Ha
ast
18%
N
/A
-1%
–
N
/A
–
Ian D
ys
on
18%
N
/A
-1
00
%
-13
%
N
/A
-90%
Duriya F
arooqui
–
N
/A
–
–
N
/A
–
Jo H
arl
ow
18%
N
/A
100%
-13
%
N
/A
-
94%
Jill McDonald
18%
N
/A
-1%
-13
%
N
/A
-
87%
Sharon
Rothst
ein
–
N
/A
–
–
N
/A
–
Av
e
rage
employ
ee
3%
10
0%
-11
%
-6%
-10
0
%
-9%
No d
ata ha
s be
en rep
or
ted for G
raha
m Allan, D
uriya Faroo
qui an
d Sharon R
othstei
n as they jo
ined t
he Bo
ard in 20
20 there
fore only p
ar
t-y
ear
dat
a is availab
le whic
h doe
s not en
abl
e a com
paris
on with 2
02
1. Simil
arly
, Dani
ela B
aron
e Soare
s join
ed th
e Boa
rd during 20
21 s
o the
re will
be no f
ull year d
ata co
mpa
riso
ns for he
r in 20
21 an
d 202
2.
As st
ated in th
e notes to th
e singl
e igu
re tabl
e on pa
ge 115, un
der H
M Revenu
e and C
ustom r
ules
, the 20
21 t
axabl
e be
ne
its 
ig
ure fo
r th
e
non
-
UK b
ase
d E
xecutive D
irec
tor
, Eli
e Maa
louf, inclu
des s
ome trave
l and foo
d expe
ns
es that we
re not previ
ousl
y repo
rte
d, ac
counti
ng for
the yea
r
-
o
n-year c
hang
e ig
ure for ta
xable b
en
e
its in 20
21 v
s 2020. I
an Dys
on di
d not inc
ur any expen
se
s in 202
1 bu
t incurre
d expe
nse
s of
£2
29.
55 i
n 2020 re
lating to at
tend
ing the Feb
ruar
y 20
20 Bo
ard me
eting, h
enc
e the pe
rce
ntag
e chan
ge for 20
21 vs 2
020 i
s -100
%. J
o Ha
rlow
incu
rred exp
ens
es of £
128.6
5 in 20
20, als
o relatin
g to the Febru
ar
y 2020 B
oa
rd meeti
ng, and £
257.21 i
n 202
1 relati
ng to the De
ce
mbe
r 202
1
Bo
ard dinne
r
, h
enc
e the pe
rcen
tag
e chan
ge for 20
21 vs 2
020 i
s 100
%
. The
se exp
ens
es fo
r Ian an
d Jo are b
elow £
50
0 so rou
nd down to £ni
l
for the re
spe
ctive ye
ars in th
e singl
e igu
re tabl
e on pa
ge 123
.
Payme
nts fo
r los
s of o
ic
e
The
re were no p
ayment
s for los
s of o
ic
e in 202
1.
Pension
entitlemen
ts
No E
xecu
tive Dire
ctor is e
ntitle
d to any De
ine
d Be
ne
it p
ens
ion
or rel
ated be
ne
it fro
m IH
G.
Payme
nts to p
as
t Dire
cto
rs – b
ene
it
s
Sir I
an Pro
ss
er
Sir I
an Pros
ser, who retired as D
irec
tor on 31 D
ec
emb
er 20
0
3,
had a
n ongo
ing he
althc
are be
ne
it of £
1,4
08.
90 d
uring the ye
ar
.
Gove
rn
an
c
e
122
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Sin
gle tot
al 
igu
re of rem
un
erat
ion: N
on
-E
xecu
tive Di
rec
tors
Com
mittee
appoint
ments
Dat
e of
original
appoint
ment
Fee
s
£000
T
axable beneits
£000
To
t
a
l
£000
Non-Executive
Director
202
1
2020
2021
2020
2021
2020
Patrick Ce
sc
au
N
01/0
1/
13
444
37
7
1
7
445
384
Graham Allan
A
R
01/0
9/2
0
78
24
0
0
78
24
Richard
Anderson
A
R
01/0
3/2
1
20
–
0
–
20
–
Daniela Barone Soares
R
RB
01/0
3/2
1
65
–
0
–
65
–
Anne Busquet
A
RB
01/0
3/
15
28
66
1
1
29
67
Ar
thur d
e Ha
ast
R
RB
01/0
1/2
0
78
66
0
0
78
66
Ian D
ys
on
A
N
R
01/0
9/
13
104
88
0
0
104
88
Duriya F
arooqui
A
RB
07/
1
2
/
2
0
78
5
0
0
78
5
Jo H
arl
ow
N
R
01/0
9/
14
104
88
0
0
104
88
Jill McDonald
A
RB
N
01/0
6/
13
92
78
0
0
92
78
Dale Morrison
A
N
R
01/0
6/
11
112
95
1
2
113
97
Sharon
Rothst
ein
A
RB
01/0
6/
20
78
38
0
0
78
38
S
ee p
age 8
1 for B
oard a
nd C
omm
itte
e me
mb
ers
hip key an
d at
tend
anc
e.
Fee
s
:
Fee
s are pai
d in line wi
th the DR P
olicy. Anne Bu
sque
t stepp
ed d
own from the B
oa
rd on 7 May 20
21, R
icha
rd Ande
rso
n stepp
ed
down on 2
6 May 20
21 an
d Dal
e Morri
son s
tepp
ed d
own on 31 D
ec
emb
er 20
21 s
o all fe
es and t
axab
le be
ne
it
s for the
se Di
rector
s
ce
ase
d on tho
se d
ates.
Beneits:
For Non
-
Exe
cutive Di
rector
s, be
ne
its i
nclu
de ta
xable tr
avel and ac
co
mmod
ation exp
en
ses to at
ten
d Boa
rd mee
tings away
from the d
esi
gnated h
ome l
oc
ation. U
nde
r con
ce
ssi
onar
y H
M Revenue a
nd Cu
stom rul
es, n
on-
U
K ba
sed N
on
-
Exe
cutive Di
rector
s are
not sub
jec
t to tax on t
ravel expe
nse
s for the 
irs
t ive ye
ars; this i
s rel
ec
ted in the t
axab
le be
ne
it
s for Anne B
us
quet
, Duriya Faroo
qui,
Dal
e Morr
ison a
nd Sh
aron Roths
tein. D
ue to glo
bal re
stricti
ons o
n travel during 2
020 an
d 202
1 as a re
sult of th
e pan
demi
c, only th
e
Febru
ar
y 2020 B
oard m
eetin
g was he
ld in p
ers
on so t
axab
le travel an
d acc
ommo
datio
n expe
nse
s are lowe
r again thi
s year.
Oth
er:
Non
-
E
xecutive D
irec
tors are not e
ligib
le for any inc
entive award
s or for any pe
nsi
on co
ntributi
ons or b
en
e
it.
Sh
are
s he
ld by Non
-
Exec
utive D
ire
ctor
s at 31 D
ec
emb
er 2
02
1:
The N
on
-E
xec
utive Dire
ctor
s who he
ld sh
ares are li
sted i
n the tab
le b
elow:
Non-Executive
Director
2021
2020
Patrick Ce
sc
au
1
1
,13
5
1
1,1
3
5
Daniela Barone Soares
316
–
Ian D
ys
on
1,500
1,
500
Ar
thur d
e Ha
ast
1,
000
1,000
Jo H
arl
ow
a
950
950
a
S
hare
s he
ld i
n the fo
rm of A
mer
ic
an De
po
si
tar
y Re
ce
ipt
s.
The
re have be
en no c
hang
es in the s
hare
hold
ing intere
sts of a
ny of the Dire
ctor
s sinc
e the en
d of the 
inan
cial yea
r up to the pub
lic
ation
of this re
por
t.
Fees: Non-Executiv
e Directors
The fe
es for N
on
-
Exe
cutive Di
rector
s are reviewe
d and ag
ree
d annua
lly in line w
ith the D
R Policy; 20
22 i
ncre
ase
s are in line w
ith the
bud
get for th
e wide
r UK an
d US c
orpo
rate work
force a
nd an in
creas
e was wai
ved in 20
21
. Grah
am Alla
n was app
ointe
d as Se
nior
Non
-
E
xecutive D
irec
tor from 1 Ja
nuar
y 20
22
. The fe
e level
s for 20
22 w
ill be as fo
llows:
Non-Executive
Director
Rol
e
2022
£000
2021
£000
Patrick Ce
sc
au
C
hai
r of the B
oa
rd
461
444
Graham Allan
Senior Independent Di
rector
116
78
Daniela Barone Soares
N
on
-E
xe
cuti
ve Dire
cto
r
81
78
Ar
thur d
e Ha
ast
N
on
-E
xe
cuti
ve Dire
cto
r
81
78
Ian D
ys
on
Chair of Audit Committe
e
108
104
Duriya F
arooqui
N
on
-
E
xecu
tive Di
rec
tor
81
78
Jo H
arl
ow
Chair of Remuneration Commit
tee
108
104
Jill McDonald
Cha
ir of Re
sp
ons
ibl
e Bu
sin
es
s Co
mmit
te
e
95
92
Sharon
Rothst
ein
N
on
-E
xe
cuti
ve Dire
cto
r
81
78
AUD
ITE
D
123
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Directors
’ Remu
neration
Report
Dir
e
ct
ors’ Remu
nera
tion R
epor
t
c
onti
nu
e
d
Ann
ual Repor
t on Dir
ect
ors’ R
emuner
a
t
ion
c
o
ntin
u
e
d
Imple
ment
ation of Directors’ Remun
eration Policy in 202
2
This s
ec
tion expl
ains h
ow the DR P
olicy wil
l be app
lie
d in 202
2.
Salary: Ex
ecutive
Directors
Directors’ salaries are agreed annually in line with the DR Policy
.
The fo
llowing s
ala
ries wil
l appl
y from 1 April 2
02
2.
Executive Directo
r
Increase
%
2022
£
2022
$
2021
£
2021
$
Kei
th B
a
rr
4
897
,900
863,
300
Paul E
dgeclie-
Johnson
4
66
0,
20
0
634,8
00
Elie Maalouf
a
4
8
70
,1
0
0
836,600
a
El
ie M
aal
ouf i
s pa
id in U
SD a
nd hi
s ann
ual b
as
e sa
lar
y fo
r 202
0 an
d 202
1 is s
how
n in U
SD. T
he st
erli
ng e
qui
vale
nt va
lue
s ca
lcu
late
d us
ing a
n exch
ang
e rate o
f $1 = £
0.78 in 20
2
1
and $
1 = £0
.73 in 20
2
2 are: 2
02
1 – £6
52,
54
8 an
d 20
2
2 – £6
35
,173.
The in
crea
se
s above are in lin
e with the b
udg
et for the w
ider U
K an
d US co
rpor
ate work
force.
202
0/22 L
T
IP cycle c
as
h low t
arg
et
As expl
aine
d on pa
ge 118, th
e Co
mmit
tee ha
s dete
rmine
d that the s
had
ow cas
h low t
arget i
t set as a p
oint of re
ferenc
e in Oc
tobe
r 202
0 will
be hig
hly releva
nt whe
n con
side
ring the ve
stin
g of this cycle i
n early 2
023
. Followin
g con
sult
ation with s
hare
hold
ers
, the sh
adow t
arget is
disclosed below.
Measure
Dei
nition
Weigh
ting
Original performance
objectiv
e
Shadow performance objecti
ve
Absolut
e
ca
sh 
low
Cumulative annual cash
gen
erati
on over th
ree
-year
performance
period
20
Thres
ho
ld – US 1
.9
1bn (
20% o
f cas
h l
ow
element v
ests
);
Ma
ximu
m – US 2.
5
4bn (1
00
% of c
as
h low
element v
ests
); a
nd
Vesti
ng will b
e on a s
traig
ht-lin
e ba
sis
in be
twe
en t
he t
wo poi
nts ab
ove.
Thre
sh
old – U
S 0.8
2bn (
20% o
f ca
sh l
ow
element v
ests
);
Ma
ximu
m – US 1.0
9
bn (10
0% o
f ca
sh l
ow
element v
ests
); a
nd
Vesti
ng will b
e on a s
traig
ht-lin
e ba
sis
in be
twe
en t
he t
wo poi
nts ab
ove.
Me
as
ure
s for 20
22 A
PP
The 2
02
2 APP s
tructu
re is in line w
ith the ap
proved D
R Policy a
nd will b
e bas
ed o
n a 70% weighti
ng for a me
asu
re of ope
rating p
roit fro
m
repo
rt
abl
e se
gment
s and a 3
0% wei
ghting for oth
er key strateg
ic me
asure
s that are revie
wed ann
ually an
d set in l
ine with b
usin
es
s prior
ities
.
Op
eratin
g pro
it from rep
or
tab
le se
gme
nts is a fo
cal m
eas
ure of bus
ine
ss p
er
forma
nce for o
ur sh
areho
lde
rs and i
s a func
tion of oth
er
critic
al me
asu
res, su
ch as Rev
P
AR, p
roi
t margin a
nd fee reven
ues
. The C
om
mitte
e has d
etermi
ned th
at for 20
22
, it rema
ins imp
or
tant to
the C
omp
any’s strategi
c obje
ctive
s to focus o
n new roo
m ope
ning
s and ne
w room si
gning
s in the APP
. N
ew room o
peni
ngs are c
ritica
l
to driving b
oth sh
or
t- and long
-term p
roi
tabl
e grow
th and are a re
cog
nise
d key per
form
ance m
ea
sure acro
ss th
e indus
tr
y
, whi
le new ro
om
signi
ngs provi
de the b
est g
auge o
f future grow
th as th
ey create the p
ath for op
enin
gs in futu
re years
, which wi
ll in turn drive p
roit a
nd
revenue g
rowth
. The t
wo strate
gic me
asure
s will b
e equ
ally weig
hted, with e
ach wo
rth 1
5% of the overa
ll APP
. The t
arget
s are com
merci
ally
sen
sitive an
d will b
e disc
los
ed in th
e 202
2 Ann
ual Re
por
t.
Measure
Deiniti
on
Wei
ght
ing (%)
Performance objecti
ve
Op
era
ting p
roi
t from
reportable segmen
ts
A me
asu
re of IH
G
’s oper
ating p
ro
it from
reportable segmen
ts
for th
e year
70
Achieveme
nt against target
Room signings
Abso
lute n
umb
er of n
ew roo
m sign
ing
s
15
Achievement agains
t target
Room openings
Abs
ol
ute num
be
r of new ro
om o
pen
ing
s
15
Achievement against target
As pa
rt of th
e APP s
tructure, th
e Co
mmit
tee c
ons
ider
s wheth
er to app
ly dis
cretio
n to adjus
t outco
mes o
n the str
ategic m
eas
ures foll
owing
a review of p
er
forma
nce a
gains
t IH
G’s Glo
bal M
etric
s. Th
ese a
re bas
ed on a ra
nge of K
PIs i
nclu
ding seve
ral ES
G mea
sures s
uch a
s ene
rgy
redu
ction
, empl
oyee eng
age
ment a
nd gue
st s
atisfa
ction
. As pe
r the 20
21 p
lan, 20
2
2 pe
rfor
manc
e agai
nst th
e Glo
bal M
etric
s, toge
ther wi
th
dat
a on relati
ve per
form
anc
e again
st pe
er
s, will b
e tracked a
nd us
ed by the C
omm
itte
e as refe
rence p
oint
s in con
sid
ering w
hethe
r to use
dis
cretion to a
djust th
e formul
aic outc
ome o
f the strate
gic me
asu
res.
202
2
/24 L
TI
P cycle p
er
form
anc
e me
as
ure
s an
d targ
et
s
For 202
2
/24, we prop
os
e to retain th
e sam
e mea
sure
s and weig
htings a
s the 20
21/23 cycl
e, again exclu
ding Total Gros
s Revenu
e (TG
R).
TGR is dri
ven main
ly by RevPAR and NS
SG bu
t als
o inclu
des oth
er form
s of revenu
e, such a
s foo
d and b
everage a
nd sp
as. S
et
ting a TGR
targ
et remai
ns cha
llen
ging in th
e contex
t of limite
d vis
ibilit
y over the s
hor
t-to-
me
dium term, g
iven fac
tors in
cludi
ng:
•
the p
otentia
l volatilit
y c
ause
d by future n
ew variant
s of Covi
d-19;
•
the p
er
form
ance vo
latilit
y res
ulting in c
ountrie
s follow
ing a zero C
ovid
-19 strateg
y;
•
unp
redic
tab
ilit
y around th
e traje
ctor
y of intern
ation
al travel rec
over
y; and
•
whil
e lei
sure travel de
man
d is stron
g, conti
nuing un
cer
t
ainty a
round th
e shap
e of inter
nation
al bu
sine
ss travel re
-
em
erge
nce.
Gove
rn
an
c
e
124
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
The m
eas
ures for th
e 202
2
/24 L
TI
P cycle are a
s follows
:
Measure
D
einition
We
ig
hti
ng (%)
Performance objectiv
e
Relative T
otal
Shareholder R
eturn
(TS
R)
IH
G’s pe
r
form
anc
e aga
ins
t a com
par
ator gro
up of
glo
bal h
otel c
omp
ani
es: A
cc
or S.
A
., Ch
oic
e Ho
tels
Interna
tional Inc.
, Hilt
on W
orldwide
Holdings Inc.,
Hyatt Hote
ls Corp
oration, Marriot
t Internationa
l
Inc
., Me
lia H
otel
s Inte
rnati
ona
l S.
A
., NH H
ote
ls
Gro
up, and W
yn
dham H
ote
ls & Re
sor
t
s Inc. T
SR i
s
the a
ggre
gate o
f sha
re pric
e grow
th a
nd div
ide
nd
s
pai
d, as
sum
ing re
inves
tme
nt of div
ide
nd
s in the
Company’s shares during
the thr
ee
-year
performance
period.
30
T
hre
sho
ld – m
edi
an of c
omp
arato
r grou
p (20
% of TS
R
element v
ests
);
Ma
ximu
m – upp
er qu
ar
tile o
f co
mpa
rator gro
up
(10
0% of T
SR e
le
men
t vest
s); and
Vesti
ng will b
e on a s
traig
ht-lin
e ba
sis in b
et
we
en
the t
wo po
ints a
bove
.
Rel
ative n
et sys
tem
siz
e grow
th with
ROCE unde
rpin
IH
G’s ag
greg
ated c
om
pou
nd an
nua
l grow
th rate
(CA
G
R) agai
nst our
six lar
gest competit
ors wit
h
over 5
00
k roo
ms: M
arri
ott I
nter
nati
ona
l, Inc
.,
Hil
ton Worl
dwi
de Ho
ldi
ngs I
nc., Ac
co
r S.
A
.,
Jin Jiang
Int
ernational
Holdings
Company Li
mited,
Wyn
dha
m Hote
ls & Re
so
rt
s In
c., Ch
oic
e Hote
ls
Inte
rnati
on
al Inc
. T
arge
ts wil
l be s
et ba
se
d on
inc
rea
se
d room c
ou
nt that i
s co
nsi
sten
t with th
e
rel
evant c
omp
any
’s busin
es
s pl
an ob
jec
tive
s and
pra
ctic
e as at t
he st
ar
t of th
e L
T
IP cyc
le.
40
Th
res
hol
d – Four
th ra
nked c
omp
etito
r exclu
ding I
HG
(20
% of N
SS
G ele
me
nt ves
ts);
Ma
ximu
m – Fir
st ran
ked c
omp
etito
r exclu
ding I
HG
(10
0% of N
S
SG el
em
ent ve
sts); a
nd
Vesti
ng will b
e on a s
traig
ht-lin
e ba
sis in b
et
we
en
the t
wo po
ints a
bove
.
Thi
s me
asu
re is su
bje
ct to th
e achi
evem
ent of a R
eturn o
n
Ca
pit
al Emp
loye
d und
erpi
n. Se
e b
elow fo
r fur
th
er de
tai
ls.
Abs
ol
ute ca
sh 
low
C
umul
ative a
nnu
al ca
sh ge
ne
ratio
n over th
ree
-ye
ar
performance
period.
30
T
hre
sho
ld – U
S 1.5
8b
n (20
% of c
ash 
low e
le
ment v
est
s);
Ma
ximu
m – US 2.11b
n (10
0% of c
as
h lo
w ele
me
nt
vests
); a
nd
Vesti
ng will b
e on a s
traig
ht-lin
e ba
sis in b
et
we
en the
two p
oin
ts ab
ove.
Op
era
tion of R
eturn o
n Cap
ita
l Emp
loyed (RO
CE) u
nde
rpin
The C
omm
itte
e has th
e dis
cretion to re
duc
e the amo
unt of the award ve
sting u
nde
r the net sys
tem si
ze growth m
ea
sure by any amou
nt,
incl
uding to ze
ro, in the event that a Re
turn on C
apit
al Emp
loyed (RO
CE
) falls b
elow a p
redete
rmine
d level ove
r the pe
riod o
f an L
T
IP cycle
.
The ex
tent of re
duc
tion woul
d be de
termine
d ta
king into c
ons
ider
ation cri
teria inc
ludin
g:
•
the re
aso
n the RO
CE un
der
pin ha
s not be
en m
et;
•
the im
pac
t on othe
r metric
s, in
cludi
ng ca
sh l
ow and T
otal G
ros
s Revenue
; and
•
the m
aterial
ity of th
e circum
sta
nce
s und
er whic
h the un
derp
in has n
ot be
en met
.
ROC
E is d
e
ined a
s op
erating p
roi
t from rep
or
tab
le se
gme
nts divi
ded by C
apit
al Emp
loyed. For C
apit
al Emp
loyed, we exp
ect to d
e
ine this
as T
otal A
sse
ts le
ss C
urrent Li
abiliti
es, a
djuste
d for de
ferred reve
nue an
d deferre
d ta
x ass
ets/
liabil
ities
. At the en
d of ea
ch cycle, th
e Com
mit
tee
will agre
e the ap
prop
riate cap
ital b
as
e of the C
omp
any takin
g into acc
ount any sh
or
t-term impa
cts th
at are not p
ar
t of the lo
ng-te
rm cap
ital
of t
he business.
For the 20
2
2/24 L
T
IP cycl
e, the und
erpi
n will rema
in at the 20
% level s
et for the p
reviou
s two cycl
es. U
nde
r norm
al circum
st
ance
s, the
Co
mmit
tee c
onsi
der
s this an ap
prop
riate level to prote
ct sh
areho
lde
r intere
sts wit
hout di
sinc
entivi
sing th
e purs
uit of lo
ng-
term strate
gic
ally
advant
age
ous re
turn-
en
hanc
ing op
por
tuni
ties, w
hich c
ould h
ave a shor
t-term imp
act on R
OC
E. H
owever
, i
t shou
ld be n
oted that
, as ou
tline
d
on pa
ge 107
, th
e Co
mmit
tee is m
inde
d not to red
uce th
e NS
SG ou
tcome i
f the RO
CE un
derp
in is not m
et for th
e 2020/2
2 cycle s
ole
ly due to
the imp
act o
n earn
ings of th
e pan
demi
c. Per
form
ance a
nd ves
ting outc
ome
s and a
ny use of dis
cretio
n will be f
ully dis
clo
se
d and exp
laine
d
in the rel
evant Dire
ctor
s’ Remun
eratio
n Rep
or
t.
125
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Directors
’ Remu
neration
Report
Sta
t
e
ment o
f compliance
Our s
tatem
ent of c
ompl
ianc
e summ
aris
es how th
e Group h
as
app
lied th
e princ
iple
s of the 2
018 U
K Co
rpor
ate Govern
anc
e Co
de
(available at
w
ww.
frc.
org.uk/
directors
under UK Corporat
e
Gover
nanc
e Co
de) as pub
lish
ed in J
uly 20
18 (the Co
de) and
com
ment
s on co
mpli
ance w
ith the C
ode’s provis
ions
.
This s
houl
d be re
ad in co
njunc
tion with th
e Strate
gic Rep
or
t on p
age
s
2 to 7
7
, an
d Govern
anc
e, inclu
ding th
e Direc
tors’ Re
mune
ration
Rep
or
t, on p
age
s 80 to 125, a
s a who
le.
The B
oard c
ons
ide
rs that th
e Group h
as co
mplie
d in all
materi
al res
pec
ts with th
e Co
de’s provisio
ns for th
e year en
de
d
31 D
ec
emb
er 202
1, s
ave as noted b
el
ow in resp
ec
t of provis
ion 3
8.
1.
B
oa
rd Le
ade
rs
hip a
nd C
om
pany Pu
rpo
se
A
.
The r
ole o
f the B
oa
rd
The B
oa
rd cont
inue
s to le
ad the G
roup’s strate
gic di
recti
on an
d
lon
g-te
rm obj
ec
tives
. Furth
er res
po
nsi
biliti
es of th
e Bo
ard are s
et
out o
n pag
e 88
.
The B
oa
rd met e
ight tim
es du
ring 20
21 a
nd all D
irec
tors c
onti
nue to
act i
n what th
ey co
nsid
er to b
e in the b
es
t intere
sts o
f the C
omp
any
,
co
nsi
stent w
ith the
ir st
atutor
y du
ties
. Furth
er de
tail
s of 20
21 B
oard
me
eting
s, inc
lud
ing info
rmati
on on m
atte
rs di
scu
ss
ed an
d de
cisi
ons
take
n by the Bo
ard are s
et ou
t on pa
ges 8
9 to 9
1, atte
nda
nce
infor
matio
n is on p
age 8
1, sk
ills an
d expe
rie
nce a
nd bi
ogra
phic
al
infor
matio
n is on p
age
s 82 to 8
4.
A de
scri
ption o
f IH
G’s bus
ine
ss mo
de
l is se
t out o
n pag
es 10 to 1
3.
An as
se
ss
me
nt of the p
rinci
pal ri
sks fa
cing th
e Gro
up is in
clu
ded
on pa
ge
s 40 to 47
.
Potent
ial co
n
lict
s of intere
st a
re reviewe
d ann
ually a
nd po
wers o
f
auth
oris
atio
n are exerci
se
d in ac
cord
anc
e with th
e Co
mpa
nies A
ct
and th
e Co
mpa
ny’s Ar
ticl
es of A
ss
oci
ation
.
Dur
ing the ye
ar
, if any Di
recto
r has u
nres
olve
d co
nce
rns a
bou
t the
op
eratio
n of the B
oa
rd or the m
ana
gem
ent o
f the C
omp
any
, th
es
e
woul
d be re
cord
ed in th
e minu
tes of th
e me
eting
.
B.
The C
om
pany
’s purp
ose
, valu
es a
nd st
rate
gy
Our p
urp
ose i
s to provid
e T
rue H
osp
ita
lit
y for Go
od
. A des
crip
tion
of how I
HG d
oe
s bus
ine
ss, i
nclu
ding a
n over
view o
f our cu
lture an
d
valu
es, i
s incl
ude
d on p
age
s 36 to 3
8. C
ulture an
d pe
opl
e were
par
tic
ular
ly prom
ine
nt on the B
oa
rd’s age
nda a
s the G
roup re
covere
d
from th
e pan
dem
ic. A su
mmar
y of th
e Bo
ard
’s activiti
es in re
latio
n to
the Voice o
f the Em
ploye
e is inc
lud
ed on p
ag
e 101
. An outl
ine of th
e
Grou
p’s approa
ch to reward
ing it
s work
forc
e is co
ntai
ne
d on pa
ges
24 to 25, 10
8 and 11
2.
C.
Resources
The B
oa
rd del
ega
tes over
sigh
t of the al
loc
atio
n of day-to
-
day res
ourc
es
to man
age
men
t (pri
ncip
ally th
rough t
he E
xecu
tive Co
mmit
te
e).
Info
rmatio
n on th
e Grou
p’
s key per
for
man
ce ind
ica
tors, i
nclu
ding
the m
eas
ures u
se
d to mon
itor the
m, is in
clu
de
d on pa
ges 5
0 to 53
.
A summ
ar
y of th
e proc
ed
ures fo
r ide
ntif
ying a
nd dis
cu
ssi
ng
em
ergin
g risks i
s set o
ut on p
age 4
0.
D.
Shareholders and stak
eholders
The Board engaged
actively
throug
hout 2021 wit
h shareholders a
nd
othe
r st
akeho
lde
rs. T
he Ch
air h
eld a nu
mbe
r of me
etin
gs wit
h majo
r
ins
titutio
nal s
hare
hol
der
s to dis
cus
s the ro
le of th
e Bo
ard and ot
her
gen
era
l govern
anc
e is
sue
s, foll
owin
g which t
he Ch
air en
sure
d that
the
ir view
s were co
mmun
ica
ted to the B
oa
rd as a wh
ole. Fur
the
r
det
ails a
re on pa
ge 9
2.
Info
rmatio
n on th
e Bo
ard’s co
nsid
erat
ion of a
nd en
gag
eme
nt with
other stak
eho
lders, incl
uding emplo
yees, suppl
iers, hot
el owners
and g
ues
ts, i
s incl
ude
d on p
age
s 20 to 28, 3
9, 9
0 and 9
1, 10
1, 107
,
10
8, 112 an
d 114.
E
.
Work
for
ce p
oli
cie
s an
d pra
cti
ce
s
The B
oa
rd has ove
rarch
ing res
po
nsib
ilit
y for th
e Grou
p’s workfo
rce
po
licie
s an
d prac
tice
s an
d del
ega
tes day-to
-
day re
sp
ons
ibili
ty to th
e
CEO an
d Chi
ef Hum
an Re
sou
rce
s O
ic
er to en
sure th
at they are
co
nsi
stent w
ith the C
omp
any
’s values a
nd su
ppo
rt i
ts lo
ng-
term su
cc
es
s.
Emp
loyee
s are abl
e to rep
or
t mat
ters o
f con
ce
rn co
ni
den
tially t
hroug
h
our C
on
id
enti
al Dis
cl
osure C
han
nel
. The B
oa
rd routin
ely rev
iews
rep
or
ts ge
ne
rated fro
m the di
scl
osu
res an
d ens
ures t
hat arr
ange
me
nts
are in pl
ac
e for inves
tigat
ion an
d follo
w-u
p actio
n as ap
prop
riate
.
2
.
D
ivis
ion o
f Res
po
ns
ibi
liti
es
F
.
The Ch
air
Patri
ck Ce
sc
au le
ad
s the op
era
tion an
d gover
nan
ce of th
e Bo
ard
and i
ts C
ommi
tte
es
. The C
hair h
as b
ee
n in po
st for ni
ne yea
rs an
d
was in
dep
en
den
t on app
ointm
ent
. Provis
ion 1
9 of the C
od
e sta
tes
that a c
hair s
hou
ld not re
main i
n pos
t beyo
nd nin
e year
s from
the d
ate of the
ir i
rst ap
po
intme
nt to the B
oard b
ut this p
eri
od
ca
n be ex
tend
ed fo
r a limite
d time to f
acili
tate e
ec
tive
succe
ssion planning.
In Ja
nua
ry 2
02
2, th
e Co
mpany a
nnou
nce
d that P
atric
k will reti
re
from th
e Bo
ard ee
cti
ve 31 Aug
ust 20
2
2, to be s
uc
ce
ede
d by
De
ann
a Opp
en
heim
er. The dura
tion of P
atrick
’s tenu
re beyon
d
nine ye
ars i
s co
nsid
ere
d app
ropri
ate to fac
ilita
te an orde
rly
transition to
Deanna
.
G.
Board composition
The s
ize an
d co
mpo
sitio
n of the B
oa
rd and it
s Co
mmit
te
es are kep
t
und
er revi
ew by the N
omin
ation C
om
mit
tee to en
sure th
e app
ropri
ate
co
mbin
ation o
f Exe
cutive a
nd N
on-
E
xec
utive D
irec
tors
. Det
ail
s of
the c
omp
osi
tion of t
he Bo
ard an
d Co
mmit
tee
s are avail
abl
e on
pag
es 8
1 to 84
.
At lea
st h
alf of th
e Bo
ard, exclu
ding th
e Ch
air
, are Ind
ep
end
ent
No
n-
E
xecu
tive Dire
cto
rs. P
rovisi
on 10 of th
e Co
de c
ons
ide
rs the
ind
epe
nd
enc
e of No
n-
E
xec
utive Di
recto
rs an
d circu
mst
anc
es th
at
might impair their indepe
ndenc
e, including holding o
ice for over
nine ye
ars a
nd cro
ss
-
direc
tors
hip
s. Da
le Mo
rris
on s
er
ved o
n the
Bo
ard for ove
r 10 yea
rs and w
as the S
eni
or In
dep
en
dent D
irec
tor
until hi
s retire
ment o
n 31 D
ec
emb
er 20
2
1. In thi
s role, h
e acte
d as
the le
ad o
n the re
cruit
ment o
f a new C
hair. The app
ointm
ent o
f a
new C
hair wa
s a key prio
rity d
uring 2
02
1, ac
cord
ingl
y the B
oard
jud
ged i
t app
ropri
ate for D
ale to rem
ain as a D
ire
ctor wh
ile th
e
proc
es
s co
ntinu
ed. I
n light o
f his ex
tend
ed te
nure, th
e Bo
ard
carefully considered Dale’s commitments and contribution and
co
nclu
de
d that h
e had re
main
ed an I
nd
epe
nde
nt No
n-
E
xec
utive
Dire
cto
r durin
g his te
nure.
Dan
iel
a Baro
ne S
oare
s was ap
poi
nted to th
e Boa
rd from
1 March 202
1 and at t
hat tim
e both s
he an
d Jo H
arlow we
re
Ind
ep
end
ent N
on
-E
xec
utive D
irec
tors o
f Halm
a plc
. As Da
niel
a
did n
ot sta
nd for re
-
el
ec
tion a
s a Dire
ctor o
f Halm
a plc a
nd reti
red
from it
s Bo
ard on 2
2 J
uly 20
21, th
e Bo
ard did n
ot co
nsi
der e
ithe
r
of the
ir ind
ep
end
enc
e as N
on
-E
xe
cutive D
irec
tors o
f the C
omp
any
to be impaired.
Reg
ardin
g the Ch
air su
cc
es
sio
n referre
d to ab
ove, whil
e
Patri
ck Ce
sc
au wa
s not pa
rt o
f the Se
arch C
om
mit
tee th
at le
d the
se
arch pro
ce
ss
, it was n
oted th
at Patri
ck an
d De
anna O
pp
enh
eim
er
hel
d a cros
s
-d
irec
tors
hip at T
es
co PLC fro
m Marc
h 201
2 to April 2
01
5.
As the c
ros
s-
dire
cto
rshi
p was over s
ix yea
rs pri
or to De
ann
a’s
app
ointm
ent to th
e Bo
ard, the B
oa
rd did not c
on
sid
er eit
her of
the
ir ind
epe
nd
enc
e as N
on-
E
xec
utive D
irec
tors of t
he Co
mp
any
to be impaired.
H. Non
-Execu
tiv
es
No
n-
E
xecu
tive Dire
cto
r terms o
f app
ointm
ent ou
tline I
HG
’s
time c
omm
itme
nt expe
ct
atio
ns req
uire
d to ful
il the
ir rol
e.
The c
omm
itme
nts of e
ac
h Dire
ctor are i
nclu
de
d in the D
irec
tors’
bio
grap
hic
al det
ails o
n pa
ges 8
2 to 84
. De
tail
s of No
n-
E
xecu
tive
Dire
ctor a
pp
ointme
nt term
s are se
t out o
n pag
e
11
3.
The C
hai
r annu
ally revi
ews th
e time e
ach N
on
-E
xe
cutive D
irec
tor
de
dic
ates to I
HG as p
ar
t of th
e intern
al pe
rfo
rma
nce eva
luati
on of
Dire
ctor
s (see p
age 9
4) and is s
atis
i
ed th
at the
ir othe
r dutie
s an
d
time c
omm
itme
nts do n
ot co
nl
ict wi
th thos
e as D
irec
tors
.
Gove
rn
an
c
e
126
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Dale Morrison
was Seni
or Independent Non-Executive
Direct
or
(SI
D) from 31 M
ay 2014 to 3
1 De
cem
be
r 202
1 an
d was su
cc
ee
de
d
by Gra
ham All
an fro
m 1 Janu
ar
y 202
2
. The S
ID p
rovide
s a so
undi
ng
bo
ard for th
e Cha
ir and s
er
ves a
s an inte
rme
diar
y for t
he oth
er
Dire
ctor
s and s
hare
hol
der
s. G
raha
m als
o led t
he ann
ual p
er
form
anc
e
review o
f the Ch
air (se
e pag
e 94).
Af
ter ea
ch B
oard m
eeti
ng, N
on-
E
xec
utive D
irec
tors an
d the C
hair
me
et with
out E
xec
utive D
irec
tors b
ein
g pres
ent (se
e pa
ge 88).
I.
Polici
es, processes, i
nfor
mati
on and
resour
ces
The C
hai
r and C
omp
any Se
cret
ar
y ens
ure tha
t the B
oard an
d its
Co
mmit
tee
s have th
e nec
es
s
ar
y poli
cie
s and p
roc
es
se
s in pla
ce an
d
that th
ey rec
eive tim
ely, accur
ate and c
lea
r inform
atio
n. Th
e Bo
ard
and i
ts C
ommi
tte
es al
so have a
cc
es
s to the C
omp
any Se
cret
ar
y
,
ind
epe
nd
ent ad
vic
e and oth
er n
ece
s
sar
y re
sourc
es
, at the C
omp
any
’s
expe
ns
e. Th
ey rece
ive ad
minis
trative a
nd lo
gis
tica
l sup
por
t of
a full
-tim
e executi
ve as
sis
tant
. Se
e pag
e 88 fo
r more d
etai
ls.
3.
C
omposition,
Succession and E
valuat
ion
J.
Appointme
nts
App
ointm
ent
s to the B
oard are l
ed by th
e Nom
inati
on C
ommi
tte
e
in ac
cord
anc
e with i
ts T
erm
s of Refe
renc
e (availabl
e on ou
r web
site
at
www.ihgplc.
com/inv
e
stors
under C
or
por
ate gove
rnan
ce).
The N
omi
natio
n Co
mmit
te
e also s
upp
or
ts th
e Bo
ard in su
cc
es
sio
n
pla
nnin
g for the B
oa
rd and s
enio
r man
age
men
t. Furth
er d
etai
ls
of the ro
le of th
e Nom
inati
on C
ommi
tte
e and w
hat it di
d in 20
21
are in th
e Nom
inati
on C
ommi
tte
e Rep
or
t on pa
ge
s 102 to 1
03.
The ove
rall p
roce
s
s of app
ointm
ent an
d rem
oval of Di
recto
rs
is over
se
en by the B
oa
rd as a wh
ole.
All of th
e Dire
ctor
s retire an
d se
ek e
lec
tion o
r re
-e
le
ctio
n at eac
h AGM
.
K. Skills
De
tail
s of the s
kill
s, exp
erie
nce a
nd bi
ogra
phic
al info
rmati
on of th
e
Bo
ard are s
et out o
n pag
es 8
2 to 84
.
The C
hai
r and C
omp
any Se
cret
ar
y ens
ure tha
t new Di
rec
tors re
cei
ve
a full in
duc
tion a
nd tha
t all Dire
cto
rs co
ntinu
ally up
date th
eir s
kill
s
and h
ave the re
quis
ite know
le
dge an
d fami
liari
ty wi
th the G
roup
to ful
il th
eir rol
e (see p
age 9
3).
The l
eng
th of se
r
vice o
f Non
-
E
xecut
ive Dire
ctor
s is revi
ewed re
gul
arly
,
det
ails o
f the revi
ew in 20
21 are i
nclu
de
d on pa
ge 10
3.
L
.
An
nua
l evalu
atio
n
The B
oa
rd und
er
take
s eith
er an inte
rnal o
r exte
rna
l annu
al Bo
ard
ee
ctive
ne
ss eva
luati
on. T
he la
st ex
terna
l evalu
ation wa
s car
ried
out in 2
01
9, so in 20
21 a
n intern
al B
oard eval
uatio
n was c
ond
ucte
d.
A summ
ar
y of th
e evaluat
ion is s
et ou
t on pa
ge 94
.
Per
for
manc
e evalu
atio
ns of D
irec
tors, i
nclu
ding th
e Ch
air
, are als
o
carried out on an annual basis. Directors’ biographies are set out
on pa
ge
s 82 to 84 a
nd de
tail
s of pe
r
forma
nce e
valuati
ons c
arri
ed
out in 2
02
1 are on p
age 9
4.
4.
Aud
it, R
isk a
nd I
ntern
al C
ont
rol
M.
Audi
t func
tio
ns
The Au
dit C
omm
itte
e is c
omp
ris
ed en
tirely o
f Ind
epe
nd
ent
No
n-
E
xecu
tive Dire
cto
rs (see p
age 8
1 for m
emb
ers
hip d
etai
ls).
Ian D
yso
n, the C
hai
r of the C
omm
itte
e, ha
s rec
ent an
d rel
evant
in
anc
ial exp
eri
enc
e and th
e Co
mmit
te
e as a wh
ole h
as co
mpe
tenc
e
relev
ant to the s
ecto
r in whi
ch we op
erate
. Det
ail
s of the C
omm
itte
e’s
role, re
sp
ons
ibil
itie
s and ac
tivi
ties a
re set o
ut on p
age
s 95 to 9
9.
The Au
dit C
omm
itte
e revie
wed th
e ee
ctive
ne
ss of th
e Gro
up’s
intern
al au
dit fun
ctio
n and a
lso a
ss
es
se
d Pric
ewaterh
ous
e
Co
ope
rs
LLP
’s per
form
anc
e durin
g 202
1, in
clud
ing it
s inde
pe
nde
nc
e,
ee
ctive
ne
ss an
d obj
ec
tivit
y
. De
tail
s of the
se revi
ews are s
et ou
t
in the Au
dit C
omm
itte
e Rep
or
t on p
age
s 9
5 to 99.
N.
As
se
ss
me
nt of t
he C
omp
any
’
s po
sit
ion a
nd p
ros
pe
ct
s
The S
tate
me
nt of Dire
cto
rs’ Re
spo
nsi
bilit
ies (i
nclu
ding th
e Bo
ard
’s
st
ateme
nt co
n
irmin
g that it c
ons
ide
rs th
at the An
nual R
epo
rt a
nd
Form 20

F
, t
aken as a w
hol
e, is fai
r
, b
alan
ce
d and u
nde
rst
and
abl
e
and p
rovide
s the i
nform
ation n
ec
es
sar
y fo
r sha
reho
lde
rs to as
se
ss
the G
roup’s pos
itio
n, pe
rfo
rman
ce, b
usi
nes
s mo
del a
nd str
ategy)
is se
t out o
n pag
e 130.
The s
tatu
s of IH
G as a g
oing c
onc
ern i
s set o
ut in th
e Dire
ctor
s’
Rep
or
t on p
age 2
30. An exp
lan
atio
n of the G
roup’s per
for
man
ce,
bus
ine
ss m
ode
l, str
ategy a
nd the ri
sks an
d unc
er
ta
intie
s relat
ing to
IH
G’s pros
pe
cts
, inc
ludin
g the vi
abil
ity o
f the G
roup, is s
et out i
n the
Strate
gic Re
po
rt o
n pa
ges 2 to 7
7.
O.
Risk
managemen
t
The B
oa
rd dete
rmine
s the n
ature an
d exte
nt of the p
rinc
ipal r
isks
the o
rgani
sati
on is wi
lling to t
ake to achi
eve its s
trateg
ic obj
ect
ives
.
An as
se
ss
me
nt of the p
rinci
pal a
nd em
ergin
g risk
s faci
ng the G
roup
was c
arrie
d ou
t during t
he yea
r
, in
clu
ding th
ose r
isks th
at woul
d
thre
aten the G
roup’s bu
sine
ss m
od
el, fut
ure pe
rfo
rman
ce, s
olve
ncy
or liq
uidi
ty an
d rep
utati
on (se
e pag
es 4
0 to 47 for fur
the
r det
ails
of the p
rinc
ipal r
isks). Th
e Boa
rd and Au
dit C
ommi
tte
e mo
nitor th
e
Grou
p’s risk man
ag
eme
nt and i
nterna
l co
ntrols sy
stem
s and c
ond
uct
an ann
ual rev
iew of th
eir e
ec
tiven
es
s. Th
rough
out th
e year, the
Bo
ard ha
s direc
tly
, and th
rough d
el
egate
d aut
hori
ty to th
e Exe
cutive
Co
mmit
tee a
nd th
e Audit C
om
mit
tee, ove
rse
en an
d review
ed all
materi
al cont
rols,
including
inancial
, operat
ional and
compliance
co
ntrols
. Se
e pag
es 4
0 to 47
, an
d 95 to 9
9.
5.
Rem
uneration
P
.
Remune
ration polici
es and prac
tices
The R
emun
erati
on C
ommi
tte
e is re
spo
nsi
ble fo
r devel
opi
ng po
licy
on executiv
e remuneration and det
ermining remuneration packages
of Di
recto
rs an
d sen
ior m
anag
em
ent. T
he Di
rec
tors’ Re
mun
eratio
n
Rep
or
t is s
et out o
n pag
es 1
04 to 125
. Det
ail
s of the Re
mun
eratio
n
Co
mmit
tee
’
s foc
us are
as dur
ing 20
21 a
re set o
ut on p
age 113 a
nd it
s
me
mbe
rsh
ip det
ails a
re on pa
ge 81
.
Provis
ion 3
8 of th
e Co
de st
ates th
at pe
nsi
on c
ontrib
utio
n rates fo
r
execu
tive Dire
cto
rs sh
ould b
e alig
ne
d with tho
se avai
labl
e to the
work
forc
e. As ex
plai
ned i
n the An
nual R
epo
rt a
nd 20

F 201
9, this i
s
alre
ady th
e ca
se for n
ew UK a
ppo
intme
nts a
nd will b
e the c
as
e for
exis
ting U
K E
xecuti
ve Dire
ctor
s from J
anua
ry 2
023
. US ret
ireme
nt
be
ne
it ar
rang
eme
nts di
er in a n
umb
er of ways fro
m the U
K and
inc
lude a D
efe
rred C
om
pen
sat
ion Pl
an for s
enio
r emp
loyee
s.
Give
n the im
por
t
anc
e of the C
EO, Ameri
ca
s’ role to th
e bus
ine
ss a
nd
the m
arket co
mpe
titive
nes
s co
nce
rns ove
r E
xecuti
ve Dire
ctor p
ay
,
the ar
rang
eme
nts a
s they rel
ate to the C
EO, Americ
as a
re to be
main
tain
ed
. Furthe
r det
ails c
an b
e foun
d on pa
ge 10
8.
Q.
Pro
ce
dure f
or deve
lo
pin
g pol
icy on exe
cut
ive rem
un
erat
ion
De
tail
s of how th
e Dire
ctor
s’ Rem
une
ration P
olicy (D
R Po
licy)
was im
ple
men
ted in 20
2
1 and th
e impl
em
enta
tion of th
e DR P
olicy
in 20
22
, are se
t out o
n pag
es 115 to 1
25.
Dur
ing 20
21, n
o indi
vidu
al Di
recto
r was invo
lved in d
ec
iding h
is
or he
r own re
mune
ratio
n outc
ome
.
R.
Independent
judgemen
t and
discretion
The R
emun
erati
on C
ommi
tte
e ha
s forma
l dis
cretio
ns in p
lac
e in
rela
tion to ou
tcom
es un
de
r the AP
P and LTIP
, an
d the
se are d
isc
los
ed
as p
art o
f the D
R Poli
cy
, w
hich i
s set o
ut on p
age
s 110 to 117 of th
e
Co
mpa
ny’s Annu
al Rep
or
t an
d Form 20
F 2
01
9. Whe
n dete
rminin
g
outc
ome
s und
er th
es
e plan
s, th
e Co
mmit
tee c
ons
ide
rs wh
ethe
r it
is appr
opriat
e t
o adjust
outcomes u
nder these d
iscreti
ons, taking
ac
coun
t of the G
roup’s per
fo
rman
ce, re
lative p
er
form
anc
e aga
inst
co
mpet
itors
, and oth
er re
levant fa
ctor
s. In
forma
tion o
n the
Remu
ner
ation C
om
mit
tee’s con
sid
erati
on of th
e use o
f disc
retio
n
durin
g 202
1 is s
et ou
t on pa
ge
s 104 to 10
8.
127
Gov
ernance
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Statem
ent o
f compl
iance
G
r
oup Fina
n
cia
l
Sta
t
em
en
ts
130
Statement of Dir
ectors’
Responsibilities
131
I
nd
ep
end
ent A
udito
r’s UK Rep
or
t
138
Independent
Audi
tors
’ US R
eports
a
142
Group F
inancial Sta
tements
149
Account
ing polici
es
158
No
tes to t
he G
roup F
ina
nci
al St
atem
en
ts
a
Independent Auditors
’ Reports comprise
reports fr
om Price
waterhouseCoopers
LL
P (PC
AOB I
D: 876
) and E
rns
t & Young LL
P (P
CAOB I
D: 1
43
8)
128
IH
G
|
Annua
l Repo
rt a
nd Form 20

F 202
1
129
IH
G
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Group Financial
Statements
Group
Finan
cial
Statemen
ts
Di
scl
os
ure of in
form
atio
n to Audi
tor
The D
irec
tors who h
eld o
ic
e as at th
e date of app
roval of this
repo
rt c
on
irm th
at they have taken s
teps to m
ake thems
elve
s aware
of releva
nt audit in
formatio
n (as de
ine
d by Sec
tion 418
(3) of the
Co
mpan
ies Ac
t 200
6). No
ne of the D
irec
tors are aware of a
ny
relevant a
udit info
rmatio
n which h
as not b
ee
n disc
los
ed to the
Co
mpany
’s and Group’s Auditor.
Ma
nag
em
ent
’s repo
rt o
n inte
rnal c
ont
rol over 
ina
nci
al re
por
tin
g
Mana
gement is res
ponsib
le for estab
lishing and maintainin
g
ade
quate inte
rnal c
ontrol over 
ina
ncial re
por
tin
g for the G
roup, as
de
ine
d in Rul
e 13a
–15(f
) and 1
5d
–15(f
) un
der th
e Sec
uritie
s Exch
ange
Act of 1
93
4 as a proc
es
s de
signe
d to provid
e reas
ona
ble as
sur
ance
rega
rding the re
liabil
ity of 
ina
ncia
l repo
rtin
g and the p
repa
ration of
in
anci
al st
ateme
nts for ex
terna
l purp
ose
s in ac
corda
nce w
ith IFR
Ss.
The G
roup’s internal c
ontrol over 
ina
ncial re
por
tin
g inclu
des
policies and proc
edures that:
•
Pe
rt
ain to the ma
intena
nce of re
cord
s that, in re
as
onab
le det
ail,
acc
urately a
nd fairly re
le
ct th
e Group’s trans
actio
ns an
d
disp
os
ition
s of ass
ets;
•
Are desig
ned to
pro
vide r
easonable assura
nce that
tra
nsactions
are rec
orde
d as ne
ce
ss
ar
y to permi
t the pre
paratio
n of the
Co
nso
lidate
d Fin
ancia
l State
ment
s in ac
cord
ance w
ith UK-ado
pted
intern
ationa
l acc
ounting s
tan
dards a
nd IF
RSs a
s iss
ued by th
e
IASB
, and th
at rec
eipts a
nd expe
nditu
re are bein
g mad
e only in
acc
orda
nce wi
th autho
risati
on of ma
nag
eme
nt and the D
irec
tors
of the C
omp
any; and
•
Provid
e reas
ona
ble a
ssur
ance re
gardin
g preventio
n or time
ly
dete
ction of u
nauth
oris
ed ac
quis
ition, u
se or d
isp
ositi
on of the
Group’s as
sets th
at co
uld have a mate
rial e
ect o
n the
Financi
al Sta
temen
ts.
Any interna
l contro
l framewo
rk has in
here
nt limit
ations a
nd
intern
al contro
l over in
anc
ial rep
or
ting may not p
revent or d
etect
mis
state
ment
s. Al
so, proje
ctio
ns of any evalu
ation of e
ec
tivene
ss
to future pe
riod
s are sub
ject to th
e risk th
at contro
ls may be
co
me
inad
equ
ate be
cau
se of ch
ange
s in co
nditi
ons or t
he de
gree of
com
plian
ce wi
th the po
licie
s or pro
ce
dures m
ay deterio
rate.
Man
age
ment h
as un
der
ta
ken an as
ses
sm
ent of the e
ec
tiven
ess
of the G
roup’s internal c
ontrol over 
inan
cial re
por
ting at
31 D
ec
emb
er 202
1 b
ase
d on crite
ria es
tab
lish
ed in th
e Intern
al
Control-Int
egrat
ed F
ramew
ork issued b
y the
Committee of Sponsori
ng
Orga
niz
ations o
f the T
re
adway C
ommi
ssi
on (20
13 Framework
).
Ba
se
d on this a
sse
ss
ment
, man
age
ment h
as co
nclu
ded th
at as
at 31 D
ec
emb
er 20
21 th
e Group’s internal c
ontrol ove
r in
ancia
l
repo
rti
ng was e
ecti
ve.
Duri
ng the p
erio
d covere
d by this do
cume
nt there we
re no cha
nge
s
in the G
roup’s internal c
ontrol over 
inan
cial re
por
ting th
at have
materi
ally ae
cte
d or are rea
son
ably li
kely to materi
ally ae
ct the
ee
ctiven
es
s of the inte
rnal c
ontrols ove
r in
anci
al repo
rti
ng.
The G
roup’s internal c
ontrol over 
ina
ncial re
por
tin
g at
31 D
ece
mb
er 202
1, tog
ethe
r with the G
roup’s Cons
olid
ated F
inan
cial
St
ateme
nts, were a
udite
d by Pricewate
rhou
se
Co
ope
rs LL
P
, an
inde
pe
nde
nt regis
tered p
ublic a
cc
ounting 
irm. T
heir a
uditor
’s
repo
rt c
an b
e found o
n pag
e 138
.
For and o
n beh
alf of th
e Boa
rd
K
eith Barr
Paul Edgeclie-
J
ohnson
Chief Executive O
icer
C
hief Financial O
icer
21 Feb
ruar
y 20
2
2
2
1 Febru
ar
y 202
2
Financial Sta
tements and
accounting
records
The D
irec
tors are re
quired to p
repare th
e Annua
l Rep
or
t and Form
20
F an
d the Fi
nanc
ial St
ateme
nts for th
e Co
mpany an
d the Gro
up
at the en
d of ea
ch 
inanc
ial yea
r in acc
ordan
ce wit
h appli
cab
le law
and re
gulatio
ns. U
nde
r com
pany law dire
ctor
s must n
ot app
rove the
Fin
ancia
l State
ment
s unle
ss th
ey are satis
i
ed th
at they give a true
and fai
r view of th
e state of a
airs o
f the C
ompa
ny and the G
roup
and th
e pro
it or lo
ss of th
e Group fo
r that pe
riod
. The D
irec
tors
have prep
ared th
e Co
nso
lidate
d Fina
ncia
l State
ment
s in ac
corda
nce
with U
K
-ad
opted i
nternatio
nal a
cco
unting s
tand
ards an
d the
Co
mpany Fi
nanc
ial St
ateme
nts in a
cco
rdanc
e with U
K acc
ountin
g
sta
ndard
s, co
mpris
ing FRS 1
01 ‘
Red
uce
d Dis
clo
sure Framework
’
, and
applicable
law
. In prepar
ing t
he Consolidat
e
d Financ
ial Stat
ements,
the Di
rector
s have als
o ele
cted to c
omp
ly with Inte
rnatio
nal Fin
anci
al
Rep
or
ting St
and
ards (‘I
FRS
s’) i
ssu
ed by the I
nternatio
nal Ac
co
unting
Standards Bo
ard (‘IASB’).
In pre
parin
g thes
e Fin
ancia
l State
ment
s, IH
G Dire
ctor
s are requi
red to:
•
Se
le
ct suit
abl
e acc
ounting p
oli
cies a
nd app
ly the
m con
siste
ntly;
•
M
ake judge
ment
s and a
cco
unting e
stimate
s that are re
aso
nab
le;
•
State whe
ther t
he Consolidat
ed Financi
al Stat
ements ha
ve
be
en pre
pare
d in acc
orda
nce wi
th UK-ado
pted inte
rnation
al
accoun
ti
ng sta
ndar
ds;
•
State f
or the
Company
Financia
l Stat
ements whet
her appl
icable
UK a
cco
unting s
tand
ards, c
omp
risin
g FRS 10
1, have be
en
followe
d; and
•
Prep
are the F
inan
cial S
tatem
ents o
n the goi
ng co
nce
rn bas
is
unle
ss it i
s inap
propri
ate to presu
me that th
e Co
mpany an
d the
Group w
ill co
ntinue in b
usin
es
s.
The D
irec
tors have res
pon
sibi
lity fo
r ens
uring tha
t the Co
mpa
ny
and th
e Group kee
p ade
quate a
cc
ounting re
cord
s su
icie
nt to
show a
nd expl
ain the C
omp
any’s and the G
roup’s trans
actio
ns and
whic
h disc
los
e with rea
son
able a
ccur
acy the 
inan
cial p
osi
tion of th
e
Co
mpany an
d the Gro
up to enab
le the
m to ens
ure that the F
inan
cial
St
ateme
nts and th
e Dire
ctors’ R
emun
eratio
n Repo
rt c
omp
ly with th
e
Co
mpan
ies Ac
t 200
6.
The D
irec
tors are al
so res
pon
sibl
e for the sys
tem of inter
nal co
ntrol,
for sa
fegua
rding the a
ss
ets of th
e Com
pany and th
e Grou
p, and
tak
ing rea
son
able s
teps to p
revent and d
etect f
raud an
d other
irregularities.
Disclosure Guidance and T
ransp
arency
Rules
The B
oard c
on
irms th
at to the be
st of i
ts know
led
ge:
•
Th
e Co
nso
lidate
d Fina
ncia
l State
ment
s have be
en pre
pare
d in
acc
orda
nce wi
th UK-ado
pted inter
nation
al ac
counti
ng st
anda
rds,
and I
FRS
s as is
sue
d by the IAS
B, an
d give a true an
d fair vie
w of the
as
sets
, liabil
ities
, in
ancia
l pos
ition a
nd pro
it or l
oss o
f the Gro
up
taken a
s a whol
e;
•
Th
e Co
mpany Fin
anci
al St
ateme
nts have b
een p
repa
red in
acc
orda
nce wi
th UK ac
co
unting st
and
ards, c
ompr
ising F
RS 10
1,
and gi
ve a true and f
air view of th
e as
sets
, liabil
ities a
nd i
nanc
ial
po
sition o
f the C
ompa
ny
; and
•
Th
e Annu
al Rep
or
t, inc
luding th
e Strate
gic Rep
or
t, in
clud
es a fair
review of th
e develo
pme
nt and p
er
forma
nce of th
e bus
ine
ss an
d
the p
ositio
n of the C
omp
any and the G
roup t
aken as a wh
ole,
toget
her wi
th a des
criptio
n of the pr
incip
al risk
s and unc
er
tai
nties
that it fa
ce
s.
UK C
orp
orate G
overna
nc
e Co
de
Havin
g taken a
dvic
e from the Aud
it Co
mmit
tee, the B
oa
rd con
side
rs
that thi
s Annua
l Repo
rt a
nd Form 20

F
, ta
ken as a who
le, is fa
ir
,
bal
ance
d and u
nde
rst
anda
ble an
d that it p
rovide
s the inform
ation
ne
ces
sa
ry fo
r share
hol
der
s to ass
es
s the C
ompa
ny’s and the
Group’s po
sition a
nd pe
rfo
rman
ce, bu
sine
ss m
ode
l and s
trategy.
130
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Group Fi
nancial Stat
ements
Statement of Dir
ectors’ R
esponsibilitie
s
Independen
t aud
it
ors
’ report t
o the
members
of Int
erC
ontinental Hotels Group PL
C
Report on the aud
it of t
he Financ
ial Stat
ements
Opinion
In our o
pinio
n:
•
Inte
rC
ontine
ntal H
otels G
roup PLC
’s Group Fin
anci
al St
ateme
nts
and Parent Company Financial Statements (the ‘Financial
St
ateme
nts’) gi
ve a true an
d fair view of t
he st
ate of the Gro
up’s
and of th
e Parent C
om
pany
’
s aai
rs at 31D
ec
emb
er20
21 an
d
of the G
roup’s proit a
nd ca
sh l
ows for the ye
ar the
n end
ed;
•
the G
roup Fi
nanc
ial St
ateme
nts have b
ee
n prope
rly pre
pare
d in
acc
orda
nce wi
th UK-ado
pted inter
nation
al ac
counti
ng st
anda
rds;
•
the P
arent C
omp
any Finan
cial S
tatem
ents h
ave bee
n prop
erly
prep
ared in a
cc
ordan
ce with U
nited K
ingd
om G
ene
rally Ac
cepte
d
Acc
ounting P
racti
ce (Uni
ted Ki
ngdo
m Acc
ounting S
tan
dards
,
com
pris
ing FRS 1
01 ‘
Redu
ce
d Dis
clo
sure Framework
’
, a
nd
applicabl
e law
); and
•
the F
inan
cial S
tatem
ents h
ave bee
n prep
ared in a
cc
ordan
ce
with the re
quire
ment
s of the C
omp
anie
s Act 20
06
.
We have audite
d the Fin
anci
al St
ateme
nts, in
clud
ed with
in the
Annu
al Rep
or
t and Form 20

F (the ‘
A
nnual R
epo
rt
’
), which c
omp
rise:
the G
roup and P
arent C
omp
any statem
ent
s of in
anci
al po
sition a
t
31D
ec
emb
er202
1; the G
roup in
com
e state
ment
, Group s
tatem
ent
of co
mpreh
ens
ive inc
ome, G
roup st
ateme
nt of ca
sh l
ows and G
roup
and Pa
rent C
ompa
ny statem
ents o
f chan
ges in e
quit
y for th
e year
then e
nde
d; the Ac
cou
nting po
licie
s; and th
e notes to th
e
Financi
al Sta
temen
ts.
Our o
pinio
n is co
nsis
tent with o
ur rep
or
ting to the Aud
it Co
mmit
tee.
Se
par
ate op
inio
n in re
latio
n to IFR
Ss as i
ss
ue
d by the I
ASB
As expl
aine
d in the Ac
cou
nting po
licie
s, the G
roup, in ad
dition to
applying
UK
-
adopt
ed int
ernat
ional accoun
tin
g standar
ds, has a
lso
app
lied inte
rnatio
nal 
inan
cial re
por
ting s
tan
dards (‘
IFR
Ss’
) as is
sue
d
by the Inter
nation
al Acc
ountin
g Sta
ndard
s Bo
ard (‘IAS
B’
).
In our o
pinio
n, the G
roup Fin
anci
al St
ateme
nts have be
en p
rope
rly
prep
ared in a
cc
ordan
ce with I
FRS
s as is
sue
d by the IAS
B.
Basis for opini
on
We cond
ucte
d our au
dit in ac
cord
anc
e with Intern
ation
al
St
anda
rds on Audi
ting (U
K) (‘
ISAs (
UK
)’
) and ap
plic
able l
aw
.
Our re
spo
nsib
ilitie
s unde
r ISA
s (UK
) are fur
the
r des
crib
ed in th
e
Auditor
s’ res
pon
sibili
ties for th
e audi
t of the Fin
anci
al St
ateme
nts
se
ction o
f our rep
or
t. We bel
ieve that the a
udit evi
den
ce we have
obt
aine
d is su
ic
ient an
d appro
priate to provid
e a bas
is for
our opinion.
Independence
We remain
ed in
dep
end
ent of th
e Group in a
cc
ordan
ce with th
e
ethic
al requ
ireme
nts that a
re relevant to ou
r audit of th
e Fin
anci
al
St
ateme
nts in the U
K
, which i
nclu
des th
e FRC
’s Ethical St
and
ard, as
app
lica
ble to lis
ted pu
blic inte
rest e
ntities a
nd we have ful
ill
ed our
other e
thic
al resp
ons
ibiliti
es in ac
co
rdanc
e with the
se re
quirem
ents
.
T
o th
e be
st of our k
nowl
edg
e and b
elief, we dec
lare that n
on-
aud
it
ser
vi
ces p
rohibi
ted by the FR
C’s Ethica
l Sta
ndard we
re not provid
ed.
Oth
er tha
n thos
e disc
los
ed in n
ote 5 to the Grou
p Finan
cial
St
ateme
nts, we have provi
ded n
o non
-au
dit se
r
vice
s to the Pare
nt
Co
mpany or i
ts co
ntrolle
d unde
r
taki
ngs in th
e peri
od und
er au
dit.
Our audi
t appr
oach
Co
ntex
t
202
1 is o
ur ir
st year a
s inde
pe
nde
nt audito
rs of the G
roup. As p
ar
t
of our au
dit tran
sitio
n, we carri
ed ou
t proc
edure
s over op
enin
g
bal
ance
s at 1 Ja
nuar
y 20
21 by sh
adowi
ng the pr
ior year a
udit
unde
r
taken by the p
rede
ce
ss
or aud
itor
, revi
ewing th
e pred
ece
ss
or
audito
r’s workin
g pap
ers in th
e UK
, US a
nd Ind
ia and re
-
evalu
ating
the pr
edeces
sor audi
tor’
s conclusions
in r
espect of k
ey j
udgements
incl
ude
d in the op
enin
g Group s
tate
ment of 
ina
ncial p
os
ition.
Ove
r
vie
w
Audit s
cop
e
•
P
wC c
omp
one
nt audit te
ams we
re enga
ge
d to per
form a ful
l
sc
ope au
dit in the U
S and s
pe
ci
ied p
roce
dure
s over trans
ac
tions
proc
es
se
d at the G
roup’s Globa
l Bus
ine
ss Se
r
vice C
entre in I
ndia
.
The G
roup au
dit team c
arrie
d out a
udit pro
ce
dures ove
r the
con
sol
idatio
n and ma
terial b
alan
ces a
nd tran
sac
tions p
roc
ess
ed
ce
ntrally
. The te
rritorie
s whe
re we con
ducte
d audit p
roc
edure
s,
toget
her wi
th work pe
rfo
rme
d at corp
orate fun
ctio
ns and at th
e
Group l
evel, ac
cou
nted for ap
proximate
ly: 91% of th
e Group’s
revenue
; 88% o
f the Grou
p’
s sta
tutor
y pro
it befo
re tax
; and 8
2%
of the G
roup’s adjuste
d pro
it be
fore tax
, excepti
onal i
tems an
d
the Sy
stem F
und.
•
Th
e Group a
udit te
am per
for
med s
ubst
antive pro
ce
dures ove
r all
of the m
aterial b
alan
ce
s and tran
sac
tion
s of the Pare
nt Co
mpany
.
Key audi
t mat
te
rs
•
Bre
akag
e as
sumpti
on us
ed to es
timate I
HG Reward
s loyalt
y
progr
amme d
eferre
d revenue (Gro
up)
•
All
oca
tion of exp
ens
es to the S
ystem Fund (Gro
up)
•
E
xpe
cte
d credi
t los
se
s (Group an
d Parent C
omp
any)
•
Re
cog
nition of th
e UK d
eferre
d tax a
ss
et (Group)
Materi
ality
•
Ove
rall G
roup mater
ialit
y: $25.0 mill
ion ba
se
d on app
roximately
5% of four-y
ear ave
rage a
djuste
d pro
it be
fore tax
, excepti
onal
items a
nd the S
ystem Fund.
•
Ove
rall Pare
nt Co
mpany ma
terialit
y: £13
.3 mi
llion b
ase
d on
appro
ximately 1
% of
net assets.
•
Pe
rfor
manc
e materi
alit
y: $18.7 milli
on (Group) and £
9.9 milli
on
(Parent C
om
pany).
The s
co
pe of o
ur au
dit
As pa
rt of d
esi
gning o
ur audit
, we determ
ine
d materia
lit
y and as
se
ss
ed
the ris
ks of mate
rial mis
st
ateme
nt in the Fi
nanc
ial St
ateme
nts
.
131
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Group Financial
Statements
Independent Audi
tor’
s UK Report
Independent A
uditor’
s UK R
eport
K
ey
audit matt
ers
Key audit mat
ter
s are thos
e mat
ters th
at, in the a
uditor
s’ profes
sio
nal ju
dgem
ent, we
re of mo
st sign
ii
can
ce in the a
udit of th
e Fina
ncia
l
St
ateme
nts of the c
urrent p
erio
d and inc
lude t
he mos
t signi
i
cant a
sse
ss
ed ri
sks of ma
terial mi
sst
atem
ent (whethe
r or not d
ue to fraud
)
ide
ntii
ed by the a
uditor
s, incl
uding th
ose w
hich ha
d the gre
atest e
ec
t on: the ove
rall aud
it strate
gy; the allo
catio
n of res
ource
s in the au
dit;
and dire
ctin
g the eo
rt
s of the e
ngag
eme
nt team
. The
se mat
ter
s, and any c
omme
nts we m
ake on the res
ults of o
ur proc
ed
ures the
reon,
were ad
dres
se
d in the co
ntext of o
ur audi
t of the Fin
anci
al St
ateme
nts as a w
hole a
nd in form
ing our o
pinio
n there
on and we d
o not provi
de
a sep
arate op
inion o
n thes
e mat
ters
.
We cons
ide
red the key aud
it mat
ters in
clud
ed in th
e prior ye
ar aud
it repo
rt
. Defe
rred reven
ue rela
ting to the I
HG Reward
s loyalt
y progra
mme
and all
oc
ation of exp
en
ses to th
e Syste
m Fund remain key audi
t mat
ters in th
e current ye
ar
. E
xp
ec
ted cre
dit lo
ss
es an
d reco
gnitio
n of the
UK d
eferre
d tax a
ss
et are new key audit m
atte
rs for 20
2
1 given the l
evel of e
stimati
on unc
er
tain
ty as
so
ciate
d with exp
ecte
d cre
dit los
se
s
and th
e level of ju
dge
ment invol
ved in fore
ca
sting th
e recove
rabilit
y of th
e UK de
ferred t
ax as
set
. Imp
airme
nt of non
-
current a
ss
ets wa
s a
key audit mat
ter in th
e prio
r year
. Durin
g 202
1, the
re has b
ee
n a gen
eral imp
roveme
nt in ec
onom
ic con
ditio
ns and in t
he market exp
ec
tatio
n
of the C
ovid
-19 recover
y p
erio
d. As su
ch, we did n
ot ide
ntif
y signi
ic
ant ris
k of fur
the
r impai
rment
s. We als
o con
side
red th
e pos
sib
ility
of sign
ii
cant rever
sal o
f any previou
s impai
rment
s, but we d
id not id
entif
y an e
nhan
ced l
evel of ris
k in this re
gard. A
s a result
, impa
irment
of non
-
curre
nt ass
ets wa
s not co
nsid
ere
d to be a key audit m
atter fo
r 202
1.
This i
s not a co
mpl
ete list of a
ll risks i
denti
ie
d by our au
dit.
K
ey
audit
matter
How o
ur au
dit a
dd
re
ss
ed t
he key au
dit m
at
ter
Br
eak
age a
s
sum
pti
on u
se
d to es
tim
ate I
HG Rewa
rd
s
deferred revenu
e (
Group)
At 31 D
ec
emb
er 2
02
1, the d
efe
rred re
venu
e bal
anc
e rel
ating to t
he IH
G
Rewar
ds loyal
ty p
rogr
amm
e was $
1,2
92
m (20
20: $
1,
24
5m).
The h
otel l
oyalt
y pro
gram
me, I
HG R
eward
s, en
abl
es m
emb
er
s to ear
n poi
nts,
fun
de
d throu
gh hote
l as
se
ss
me
nts, d
urin
g eac
h qua
lif
yin
g st
ay at an IH
G
bra
nde
d hote
l an
d to con
sum
e po
ints at a l
ater d
ate in exch
ang
e for
ac
com
mo
datio
n or ot
her b
en
e
its
. Th
e Grou
p rec
ogn
ise
s de
ferre
d reven
ue
in an am
oun
t that re
l
ect
s the G
rou
p’s unsati
s
ie
d pe
rfo
rma
nce o
bli
gati
ons
,
valu
ed at t
he st
and
-a
lon
e se
llin
g pric
e of th
e futu
re ben
e
it to th
e me
mbe
r
.
The a
mou
nt of reve
nue re
co
gni
se
d and d
efer
red i
s imp
acte
d by the e
sti
mate
of bre
aka
ge wh
ich i
s the e
stim
ate of th
e num
ber o
f poi
nts th
at will n
ever
be c
ons
ume
d. T
he G
roup e
nga
ge
s an ext
erna
l act
uar
y wh
o use
s st
atis
tic
al
form
ula
e to as
sis
t in dete
rmi
ning th
is bre
aka
ge e
stim
ate.
Sig
ni
ic
ant es
tim
ation u
nc
er
tai
nty ex
ist
s in pro
jec
tin
g mem
be
rs’ fu
ture
co
nsu
mptio
n ac
tivit
y an
d how th
is may b
e imp
acte
d by C
ovid
-19. A sm
all
cha
nge i
n the b
reak
age a
ss
umpti
on wo
uld re
sult i
n a mate
rial d
ie
renc
e in th
e
defe
rre
d reven
ue ba
lan
ce at 3
1 De
ce
mbe
r 20
21 a
nd the
refo
re in the re
venu
e
rec
ogn
ise
d in th
e yea
r
.
Refe
r to the E
stim
ate
s se
ctio
n of the A
cc
ounti
ng po
lic
ies a
nd to no
te 3 to the
Group
Financia
l Stat
ements f
or ma
nagement’
s disclosu
res.
We evalu
ated a
nd te
ste
d the de
si
gn and o
pe
ratio
n of key co
ntrol
s in pl
ac
e
over m
ana
gem
ent
’s dete
rmin
atio
n of the b
rea
kag
e as
sum
ption
.
We tes
ted a s
amp
le of d
ata u
se
d by man
age
me
nt
’s actua
ry i
n deri
vin
g the
bre
aka
ge as
sum
ptio
n to und
erl
ying re
co
rds
. We ass
es
se
d the c
om
pete
nc
e
and o
bje
cti
vit
y of ma
nag
em
ent
’s actu
ar
y
. We dep
loye
d our ow
n actu
aria
l
exp
er
ts to as
se
s
s the re
aso
na
ble
ne
ss of th
e me
tho
ds an
d ass
ump
tion
s us
ed
by man
ag
eme
nt
’s actua
ry i
n dete
rmin
ing b
reak
age
. Our a
ctu
aria
l expe
r
ts
ca
lcul
ate
d an ind
ep
end
ent ex
pe
ct
atio
n of a rea
so
nab
ly po
ss
ibl
e rang
e for
deferr
ed rev
enue based on
independently
determi
ned breakage
assumptions.
We com
pare
d th
e defe
rre
d revenu
e bal
anc
e, wh
ich re
l
ecte
d ma
nag
em
ent
’s
as
sum
ption
s ab
out th
e ong
oin
g imp
act o
f Cov
id-19 o
n fut
ure ac
tivit
y of
progra
mme members,
with our
independent
ly calcu
lated
range.
We as
se
ss
ed th
e app
ropr
iaten
es
s of th
e rela
ted di
sc
los
ures i
ncl
udin
g
se
nsi
tivit
y an
aly
sis in t
he Es
tim
ates s
ec
tion o
f the Ac
co
untin
g pol
ici
es an
d
in not
e 3 to the G
roup F
inan
cia
l St
atem
ent
s.
Ba
se
d on th
e proc
e
dure
s per
fo
rme
d, we no
ted no m
ate
rial i
ssu
es a
risi
ng
from o
ur wor
k.
All
oc
atio
n of exp
en
se
s to th
e Sys
te
m Fund (Gr
oup)
The G
rou
p ope
rate
s a Sys
tem Fund to c
oll
ec
t and a
dmin
iste
r ca
sh a
ss
es
sme
nts
from h
otel ow
ner
s. E
xp
en
se
s inc
urre
d are all
oc
ated to th
e Sys
tem Fun
d in
ac
cord
anc
e wit
h the pr
inci
ple
s ag
ree
d with th
e IH
G Ow
ner
s As
so
ciat
ion
.
For th
e year e
nde
d 31 D
e
cem
be
r 202
1, th
e Gro
up rec
ord
ed S
yste
m Fund
exp
ens
es o
f $9
39
m (20
20: $
8
67m).
Sys
tem Fund ex
pe
nse
s are exc
lud
ed fro
m the G
roup re
sul
t to dete
rmin
e
op
erati
ng pro
i
t from re
por
t
abl
e se
gme
nts
, a key metri
c use
d by the G
rou
p.
The
re is ju
dg
eme
nt invol
ved i
n deve
lop
ing th
e inter
nal p
oli
cie
s that th
e Gro
up
ha
s put in p
la
ce in o
rder to a
ppl
y the p
rinc
ipl
es s
et out i
n the I
HG O
wne
rs
As
so
ciati
on le
tte
r to exp
ens
es i
ncur
red a
nd the
re is c
omp
lexi
ty i
n sub
se
que
ntly
evalu
atin
g whe
ther e
xpe
ns
es are a
ppro
pri
atel
y allo
cate
d to th
e Sys
tem Fund
in lin
e with t
hes
e inte
rnal p
ol
icie
s.
Refe
r to the Ac
co
untin
g po
lici
es an
d to note 3
3 to th
e Grou
p Fin
anc
ial
Statemen
ts for
management’s d
isclosur
es.
We evalu
ated a
nd te
ste
d the de
si
gn and o
pe
ratio
n of key co
ntrol
s over th
e
allo
c
ation o
f expe
ns
es to th
e Sys
tem Fund
.
We und
ers
too
d and a
ss
es
se
d the i
ntern
al po
lic
ies a
nd gove
rna
nc
e stru
cture
that t
he Gro
up ha
s put i
n pla
ce i
n orde
r to app
ly th
e prin
cip
les s
et ou
t in the
IH
G Ow
ner
s As
so
ciati
on le
tte
r to exp
ens
es i
ncur
red
. We teste
d a sa
mpl
e of
exp
ens
es th
at ha
d be
en a
lloc
ate
d to the S
yste
m Fund to as
se
ss w
heth
er th
ey
were i
n com
pli
anc
e with th
es
e po
lici
es an
d co
nsi
ste
nt with h
isto
ric
al pr
acti
ce.
We che
cke
d whet
her t
here we
re any m
anua
l jou
rnal e
ntrie
s tha
t tran
sfe
rred
exp
ens
es to o
r from th
e Sys
tem Fund to e
valua
te whe
the
r the
re was an
app
rop
riate ra
tion
ale fo
r any su
ch jou
rna
ls an
d we as
se
ss
ed wh
eth
er th
e
res
ultin
g cla
ss
i
ic
ation o
f expe
ns
es wa
s in lin
e with t
he pri
nci
ple
s agre
e
d with
the I
HG O
wne
rs A
ss
oci
atio
n.
Ba
se
d on th
e proc
e
dure
s per
fo
rme
d, we no
ted no m
ate
rial i
ssu
es a
risi
ng
from o
ur wor
k.
132
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Group Fi
nancial Stat
ements
Indepe
ndent A
udit
or’
s U
K Repor
t
c
o
nti
nu
e
d
K
ey
audit
matter
How o
ur au
dit a
dd
re
ss
ed t
he key au
dit m
at
ter
Ex
pe
cte
d cr
edi
t lo
ss
es (G
rou
p and P
are
nt C
omp
any)
At 31 D
ec
emb
er 2
02
1, the G
rou
p rec
orde
d a prov
isi
on for ex
pe
cte
d cre
dit
los
se
s of $
13
3m (2
020
: $78
m) again
st a gro
ss t
rad
e rec
eiva
ble
s ba
lan
ce of
$5
32m (
202
0: $
38
7m). In the Par
ent C
omp
any Fi
nan
cial S
ta
teme
nts
, amo
unts
due f
rom Gro
up un
der
t
aki
ngs of £
9
12m we
re rec
orde
d (2
020
: £9
26
m) with
no exp
ec
ted c
red
it lo
ss
es (2
020
: £ni
l) re
co
gnis
ed o
n the
se b
ala
nce
s.
A provi
sio
n for im
pai
rme
nt is ma
de fo
r lifet
ime exp
ec
ted c
red
it lo
ss
es
.
Ma
nag
em
ent ha
s es
tab
lis
he
d a provi
sio
n matr
ix for th
e Gro
up’s trad
e
rec
eiva
ble
s th
at is ba
se
d on hi
sto
ric
al cre
dit l
os
s expe
rie
nce by re
gio
n
and n
umb
er of d
ays pa
st du
e. Wh
ere hi
stor
ica
l exp
erie
nc
e is not r
elev
ant
to de
in
ed ow
ne
r group
s, fo
r examp
le own
er
s with p
ayme
nt pl
ans
, the
exp
ecte
d lif
etim
e los
se
s are c
alc
ulate
d by refe
ren
ce to oth
er s
ourc
es of d
ata
.
The c
al
cul
ation o
f expe
cte
d cre
dit l
os
se
s is su
bje
ct to e
stim
atio
n unc
er
tai
nty,
whi
ch is in
cre
as
ed du
e to co
ntinu
ed un
ce
rt
aint
y ab
out t
he pa
ce a
nd sc
al
e
of ma
rket rec
over
y fro
m Cov
id-1
9 and th
e rel
ated r
isk o
f owne
r liqu
idit
y.
Refe
r to the E
stim
ate
s se
ctio
n of the A
cc
ounti
ng po
lic
ies
, to note 18 to t
he
Gro
up Fin
anc
ial S
tate
me
nts an
d to note 4 to t
he Pa
rent C
omp
any Fi
nan
cia
l
Statemen
ts for
management’s d
isclosur
es.
We evalu
ated a
nd te
ste
d the de
si
gn and o
pe
ratio
n of key co
ntrol
s in pl
ac
e
over m
ana
gem
ent
’s exp
ecte
d cre
dit l
os
s ca
lcul
atio
ns
.
We obt
aine
d ma
nag
em
ent
’s expe
cte
d cre
dit l
os
s mod
el fo
r the G
roup at
31 D
ec
emb
er 2
02
1 and w
e teste
d it
s math
em
atic
al inte
grit
y. We agree
d a
sa
mpl
e of the h
isto
ric
al ag
ed re
ce
ivab
les a
nal
ysi
s and c
oll
ect
ion
s expe
rie
nc
e
und
erp
inni
ng the m
od
el to un
der
lyin
g rec
ord
s. We ch
alle
nge
d ma
nag
em
ent
to de
mon
stra
te that th
e as
sum
ptio
ns us
ed i
n the mo
de
l were c
on
sis
tent wi
th
rec
ent h
isto
ric
al exp
eri
enc
e of re
gion
al c
olle
cti
ons
. Wh
ere in
co
nsi
sten
cie
s
were
identiied,
we
checked
whether
management had
made appr
opriat
e
upd
ate
s to histo
ric
al as
su
mptio
ns to re
l
ect t
he mo
st re
ce
nt co
lle
ctio
ns
exp
erie
nc
e, inc
lud
ing in re
sp
ons
e to C
ovid
-19.
We sep
ara
tely c
hall
en
ged t
he ap
prop
riate
ne
ss of e
xpe
cte
d life
time l
os
se
s
for th
os
e owne
r grou
ps wh
ere m
ana
gem
ent d
eter
mine
d hi
stori
ca
l expe
rie
nce
not to b
e rel
evant
. We obta
ine
d evi
den
ce to d
eterm
ine w
heth
er th
es
e
provi
sio
ns we
re req
uire
d to sta
te trad
e rec
eiva
bl
es at th
eir n
et rea
lis
abl
e
valu
e. We rea
d inte
rnal m
ana
ge
men
t rep
or
ting to i
den
tif
y any
contradi
ctory evidence.
For th
e Pare
nt Co
mpa
ny amo
unts d
ue fro
m Grou
p und
er
ta
king
s, we
und
er
stoo
d the p
ayme
nt ter
ms as
so
ci
ated w
ith the o
nly m
ateri
al re
cei
vabl
e
to dete
rmin
e wh
ethe
r a provi
sio
n for exp
ec
ted c
red
it lo
ss
es wa
s requ
ire
d at
31 D
ec
emb
er 2
02
1, id
entif
y
ing th
at the re
ce
ivab
le wa
s repaya
ble w
ithi
n one
mon
th of yea
r-en
d. We evalu
ate
d whe
ther t
he co
unte
rpa
rt
y ha
d the ab
ilit
y
to set
tl
e the am
ount d
ue at 3
1 De
ce
mbe
r 20
21
.
For bo
th the G
roup a
nd th
e Pare
nt Co
mp
any
, w
e evalu
ated w
heth
er th
e
overa
ll prov
isio
ns re
co
rde
d were s
upp
or
ta
ble a
nd in c
omp
lian
ce w
ith the
req
uirem
ent
s of I
FRS 9.
We as
se
ss
ed th
e app
ropr
iaten
es
s of th
e rela
ted di
sc
los
ures i
n the E
stim
ate
s
se
ctio
n of th
e Acc
ount
ing p
olic
ie
s, in no
te 18 to the G
roup F
ina
nci
al
St
atem
ent
s and in n
ote 4 to th
e Pare
nt Co
mpa
ny Fin
anc
ial S
tate
men
ts.
Ba
se
d on th
e proc
e
dure
s per
fo
rme
d, we no
ted no m
ate
rial i
ssu
es a
risi
ng
from o
ur wor
k.
Rec
og
nit
ion of t
he U
K def
erre
d ta
x as
se
t (Gro
up)
At 31 D
ec
emb
er 2
02
1, the G
rou
p rec
ogni
se
d a de
ferre
d ta
x as
set of $
12
7m
(20
20
: $10
3m) rel
ate
d to the U
K tax g
roup. T
he a
ss
et larg
el
y repre
se
nts
brou
ght fo
rwa
rd reven
ue ta
x lo
ss
es an
d futu
re tax d
ed
ucti
on
s for am
or
tis
atio
n.
Ju
dge
me
nt is us
ed w
hen a
ss
es
si
ng the ex
ten
t to whic
h def
erre
d ta
x ass
et
s,
par
ti
cula
rly in re
sp
ec
t of ta
x los
se
s, s
hou
ld be r
eco
gni
se
d. D
efer
red t
ax as
se
ts
are th
erefo
re rec
og
nis
ed to th
e exte
nt tha
t it is re
gard
ed a
s pro
bab
le tha
t
the
re will b
e su
ic
ien
t and s
uit
abl
e tax
abl
e pro
it
s in the re
leva
nt le
gal e
ntit
y
or t
ax grou
p aga
ins
t whic
h su
ch as
se
ts ca
n be u
tilis
ed i
n the fu
ture. Fo
r this
pur
pos
e, for
ec
ast
s of fu
ture ta
xab
le pro
it
s are c
ons
ide
red by a
ss
es
sin
g
the G
roup’s fore
ca
st reve
nue a
nd pro
i
t mod
el
s, ta
kin
g into ac
co
unt fu
ture
grow
th pre
di
ctio
ns an
d op
erati
ng co
st a
ss
umpti
ons
. Th
e rec
overa
bili
ty of
the U
K de
ferre
d ta
x as
set h
as b
ee
n ass
es
se
d by st
ar
ting w
ith m
ana
gem
ent
’s
fore
ca
sts
, overl
aying t
ax p
rinc
ipl
es to th
ose f
orec
as
ts an
d foll
owin
g the
met
hod
olo
gy re
quir
ed by IA
S 12. Th
is ha
s de
mon
stra
ted th
at the U
K de
ferre
d
ta
x ass
et s
hou
ld rever
se ove
r a seve
n- to te
n-ye
ar p
erio
d. U
nde
r UK l
aw, tax
los
se
s do n
ot exp
ire but t
hey c
an onl
y be o
s
et ag
ains
t 50
% of ann
ual U
K
taxable pr
oits.
We focu
se
d on th
is are
a give
n the s
ize of th
e as
set
, the l
eng
th of th
e per
iod
over w
hich i
t is fore
ca
st to b
e rec
overe
d and t
he in
here
nt jud
ge
men
t in
man
ag
eme
nt
’s forec
as
ts of fu
ture pro
i
tab
ilit
y wi
thin th
e UK t
ax gro
up.
Furth
er U
K ta
x los
se
s inc
urre
d in 20
21 p
res
ent a
n add
itio
nal ri
sk th
at the a
ss
et
rec
ogn
ise
d may n
ot be re
cove
rab
le. I
n add
itio
n, the a
ss
et in
cre
ase
d by $
30
m
duri
ng the ye
ar a
s a resu
lt of c
hang
es to th
e U
K rate of c
orp
orate i
nco
me t
ax
ee
cti
ve from 1 A
pril 2
023
.
Refe
r to note 8 to th
e Gro
up Fi
nan
cial S
tat
eme
nts fo
r man
ag
eme
nt
’s disc
los
ures
.
We evalu
ated a
nd te
ste
d the de
si
gn and o
pe
ratio
n of key co
ntrol
s in pl
ac
e
over th
e rec
ogn
itio
n of de
ferre
d ta
x as
set
s and ove
r the G
rou
p’s
for
ecasti
ng
process.
We com
pare
d for
ec
ast U
K c
ash 
lows to B
oa
rd app
roved fo
rec
as
ts an
d we
as
se
ss
ed th
e his
toric
al a
ccu
racy o
f man
age
me
nt
’s forec
asti
ng. We eva
luate
d
the appr
opriateness of
the assump
tions
relected i
n the
UK for
ecasts,
includin
g assessing the
reasonableness of gro
wth pro
jections com
pared
to his
toric
al ex
pe
rien
ce an
d ind
ust
ry d
ata
. As p
ar
t of this a
ss
es
sm
ent
, we
benchmark
e
d manag
ement’s
estima
te
of t
he Covid-
19 forecast
recov
ery
pe
rio
d to third
-p
ar
ty s
ourc
es
.
We dep
loye
d tax s
pe
cia
lis
ts to as
se
ss t
he ap
prop
riate
ne
ss of t
ax ove
rlay
adj
ustm
ent
s app
lie
d to the fo
rec
as
ts by ref
eren
ce to th
e req
uire
ment
s of t
ax
prin
cip
le
s, inc
lud
ing th
e res
tric
tion o
f los
se
s to 50
% of ann
ual U
K ta
xab
le
pro
it
s, an
d to dete
rmin
e whe
the
r the U
K def
erre
d tax a
ss
et m
et the
rec
ogn
itio
n crite
ria o
f IAS 12
.
We cha
lle
nge
d the a
ppro
pri
aten
es
s of the re
cove
r
y pe
riod o
f seve
n to ten ye
ars
.
Wit
h inpu
t from o
ur ta
x sp
eci
ali
sts
, we vali
date
d that t
here i
s no exp
ir
y pe
rio
d
app
lic
abl
e to bro
ught fo
rw
ard UK l
os
se
s. We pe
r
form
ed in
de
pe
nde
nt
sensitivi
ty analysis
to
understand t
he impact
of r
easonably possible
changes
to key ass
ump
tion
s on thi
s fore
ca
st re
cove
ry p
eri
od.
We as
se
ss
ed th
e app
ropr
iaten
es
s of th
e rela
ted di
sc
los
ures i
n note 8 to th
e
Group
Financia
l Stat
ements.
Ba
se
d on th
e proc
e
dure
s per
fo
rme
d, we no
ted no m
ate
rial i
ssu
es a
risi
ng
from o
ur wor
k.
133
IH
G
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Independent Audi
tor’
s UK Report
Group Financial
Statements
Group Financial Stat
ements
Parent Com
pany Financial St
atements
Over
all
mater
iali
ty
$25.0
million
£
13.3 million
How we d
ete
rmi
ne
d it
App
roxim
ately 5
% of four-year ave
rag
e adj
uste
d pro
it b
efo
re ta
x, exc
epti
ona
l item
s
and t
he Sys
tem Fun
d
Appro
ximat
ely 1
% of
net assets
Rational
e for
benchmark applied
The G
rou
p’s princ
ipal m
ea
sure o
f pe
rfo
rma
nce i
s op
erati
ng pro
i
t from re
por
t
abl
e
se
gme
nts
, whic
h exclu
des e
xcep
tion
al ite
ms an
d the S
yste
m Fund res
ult
, in ord
er
to pre
se
nt res
ults f
rom op
era
ting a
ctiv
itie
s on a c
ons
iste
nt ba
si
s and to exc
lud
e the
imp
act o
f the S
yste
m Fund, whi
ch is n
ot ma
nag
ed to g
ene
rate a p
ro
it or l
os
s for the
Gro
up over th
e lo
nge
r term
. We took th
is me
as
ure into a
cc
ount i
n dete
rmin
ing ou
r
mate
rial
it
y as it i
s the me
tric a
gain
st wh
ich th
e pe
rf
orm
anc
e of the G
roup i
s mo
st
co
mmo
nly a
ss
es
se
d by man
age
me
nt and re
po
rt
ed to sh
are
hol
der
s. From o
per
ating
pro
it fro
m rep
or
ta
ble s
eg
men
ts, we d
ed
ucte
d ne
t in
anc
e co
st
s and fa
ir valu
e gai
ns
on c
ontin
ge
nt purc
has
e co
nsi
de
ratio
n to arriv
e at adj
uste
d pro
it b
efo
re ta
x.
Give
n the vo
lati
lit
y in pro
i
tab
ilit
y in 20
20 an
d 20
21 a
s a resu
lt of C
ovid
-19, we b
ase
d
our m
ateri
alit
y c
alc
ulati
on on a f
our-year ave
rage o
f the G
roup’s adj
uste
d pro
i
t
befo
re tax
.
Inte
rC
onti
nen
tal H
otel
s Gro
up PLC is
the ul
tima
te pare
nt co
mp
any whic
h
hol
ds th
e Gro
up’s invest
ment
s an
d bon
ds
.
The s
tren
gth of t
he ba
lan
ce s
hee
t is th
e
key mea
sure o
f i
nan
cial h
ea
lth tha
t is
imp
or
ta
nt to sh
areh
old
ers s
inc
e the
prim
ar
y co
nc
ern fo
r the Pa
rent C
om
pany
is th
e paym
ent of d
ivi
den
ds. We th
ere
fore
co
nsi
dere
d ne
t as
set
s to be an
appropriate benchmark.
How we ta
ilo
red t
he au
dit s
co
pe
We tailo
red the s
cop
e of ou
r audit to en
sure tha
t we per
form
ed
eno
ugh work to b
e able to gi
ve an opin
ion on th
e Fina
ncial S
tate
ment
s
as a wh
ole, t
aking i
nto acc
ount the s
tructu
re of the Gro
up and th
e
Parent C
om
pany
, th
e acc
ountin
g proc
es
ses a
nd co
ntrols an
d
the in
dustr
y in wh
ich they o
perate
.
The G
roup Fi
nanc
ial St
ateme
nts are a c
ons
olid
ation of ap
proximate
ly
60
0 rep
or
ting unit
s. Th
e Group o
pe
rates a G
loba
l Bus
ine
ss Se
r
vice
Ce
ntre (‘B
SC
’) in I
ndia w
hich pro
ce
ss
es tran
sac
tion
s for the ma
jorit
y
of rep
or
ting unit
s. We ide
nti
ied o
ne agg
regatio
n of co
mpo
nent
s in
the U
S which re
quire
d a full sc
ope a
udit du
e to its si
ze and b
eca
use
this ag
greg
ated co
mpo
nent h
old
s the IH
G Rewards l
oyalty p
rogram
me
and S
ystem Fund. We en
gage
d a P
wC c
omp
one
nt audit te
am in
the U
S to carr
y out thi
s audi
t. We also in
stru
cted o
ur US c
omp
onen
t
team to un
der
ta
ke spec
i
ied p
roce
dures ove
r cer
t
ain bal
anc
es
and tra
nsa
ction
s in ce
rt
ain othe
r US re
por
ting u
nits. We e
ngag
ed
a se
con
d Pw
C co
mpo
nent au
dit tea
m in Indi
a to unde
rt
ake testin
g
of trans
ac
tions p
roce
ss
ed by th
e BSC e
nco
mpa
ss
ing all rep
or
ting
units w
ithin the B
SC
’s sco
pe.
Whe
re work was p
er
forme
d by co
mpon
ent au
ditors
, we determi
ned
the ap
propri
ate level of invol
veme
nt we nee
de
d to have in that au
dit
work to en
sure that we c
ould c
onc
lude th
at su
ici
ent ap
propri
ate
audit ev
ide
nce h
ad be
en o
btain
ed for th
e Group F
inan
cial S
tatem
ents
as a wh
ole. I
n additi
on to ins
tructin
g and revie
wing the re
por
tin
g
from our c
omp
one
nt audi
t teams
, we con
ducte
d i
le reviews a
nd
par
tici
pated i
n key meeting
s with lo
cal m
ana
gem
ent. D
ue to Cov
id-19,
mos
t of the
se me
eting
s took p
lac
e remote
ly but we we
re able to
make on
e site vis
it to the US in p
er
son
. We also ha
d regul
ar dial
ogu
e
with co
mpo
nent te
ams th
rougho
ut the yea
r
.
The G
roup c
ons
olida
tion, 
inan
cial s
tatem
ent dis
clo
sures a
nd ce
rt
ain
bal
ance
s and tr
ans
actio
ns pro
ces
se
d ce
ntrally by ma
nage
me
nt in
the U
K, i
nclu
ding ce
r
tain Pa
rent Co
mpa
ny balan
ces a
nd tran
sac
tions
that were i
nclu
ded in G
roup au
dit sc
op
e, were audi
ted by the G
roup
audit te
am. T
his inc
lude
d ta
xation, tre
asur
y
, impa
irment rev
iews and
expe
cted c
redit l
os
ses o
n trade re
ce
ivable
s. Tak
en tog
ethe
r
, the
audit p
roc
edure
s carr
ied ou
t by the Grou
p and c
omp
onen
t audit
team
s provide
d cove
rage of 9
1% of the G
roup’s revenue, 8
8% of
the G
roup’s statutor
y pro
it b
efore ta
x and 82
% of the G
roup’s
adju
sted p
roit b
efore t
ax, exc
eption
al item
s and th
e Syste
m Fund.
This p
rovide
d the evid
enc
e we ne
ede
d for o
ur opini
on on th
e Group
Fin
ancia
l State
ment
s taken a
s a whol
e. Thi
s was be
fore co
nsid
ering
the co
ntribu
tion to our au
dit evid
enc
e from p
er
forming a
udit work
at the G
roup level, i
nclu
ding dis
agg
regate
d anal
yti
cal revi
ew
proc
edu
res, wh
ich cove
red ce
rt
ain of th
e Group’s smal
ler an
d
lower ri
sk co
mpo
nent
s that were n
ot direc
tly incl
ude
d in our
Group a
udit s
cop
e.
Our au
dit of th
e Parent C
omp
any Fina
ncial S
tate
ment
s was
unde
r
taken by the G
roup au
dit team a
nd inc
lude
d sub
sta
ntive
procedures over all material balances and transaction
s.
The G
roup ha
s set o
ut a targ
et to redu
ce emi
ss
ions fro
m its own
ed,
lea
se
d, man
age
d and fra
nchi
sed h
otels by 4
6% by 20
30 from a 2
019
bas
elin
e. Ma
nag
eme
nt con
side
rs tha
t the imp
act of c
limate ch
ange
doe
s not gi
ve rise to a mate
rial imp
act o
n the Fi
nanc
ial St
ateme
nts.
However, manage
me
nt’s clima
te chang
e initiati
ves and c
omm
itment
s
will imp
act th
e Group i
n a variet
y of ways. D
isc
losu
re of the imp
act
of clim
ate chan
ge ris
k is inc
orp
orated i
n the T
ask Forc
e on clim
ate-
relate
d in
anci
al dis
clo
sures (‘
TCF
D’) s
ecti
on of the A
nnual Re
po
rt
.
As pa
rt of o
ur audi
t, we ma
de en
quirie
s of man
age
ment to
unde
rst
and th
e exte
nt of the po
tential im
pac
t of clim
ate chan
ge on
the G
roup’s busine
ss a
nd Fin
anci
al St
ateme
nts, inc
ludin
g reviewin
g
ma
n
ag
e
me
n
t
’s c
li
m
ate
ch
ange ri
sk as
se
ssm
ent wh
ich was p
repare
d
with
support fr
om an
exter
nal
ex
pert. We use
d our kn
owle
dge of th
e
Group a
nd we en
gage
d with o
ur clim
ate chan
ge expe
r
ts to evaluate
the ris
k as
ses
sm
ent pe
r
forme
d by mana
gem
ent. We as
se
ss
ed tha
t
the key areas i
n the Fin
anci
al St
ateme
nts whic
h are more li
kely to
be m
ateriall
y impa
cted by cli
mate cha
nge are th
ose a
reas th
at are
bas
ed o
n future c
ash 
lows. A
s a resul
t, we par
tic
ularly c
ons
ide
red
how clim
ate cha
nge ris
ks and the impact of
climat
e commit
ments
mad
e by the Gro
up would im
pac
t th
e a
s
sum
pti
on
s
ma
de
in
the
forec
ast
s prep
ared by m
anag
eme
nt that are u
sed i
n the C
ompa
ny’s
impa
irment a
nalys
is, for g
oing c
onc
ern pu
rpos
es an
d for as
se
ssi
ng
the rec
ogn
ition of d
eferre
d tax a
ss
ets. O
ur pro
ce
dures di
d not
ide
ntif
y any materia
l impa
ct on ou
r key audit mat
ters fo
r the year
end
ed 3
1 De
cem
ber 2
02
1. We also c
hec
ked the c
onsi
sten
cy of the
dis
clos
ures in th
e TCFD se
ctio
n of the An
nual Re
por
t with t
he releva
nt
in
anci
al st
ateme
nt disc
los
ures, in
cludi
ng note
s 8 and 13 an
d the
Goi
ng co
nce
rn se
ction of th
e Acc
ountin
g poli
cies
, and with o
ur
understanding
of t
he business.
Mater
iality
The s
cop
e of our a
udit wa
s inlu
enc
ed by ou
r appl
icatio
n of
materi
alit
y
. We se
t cer
t
ain qua
ntitative thre
sho
lds fo
r materia
lit
y
.
The
se, to
gethe
r with qu
alitati
ve con
side
ration
s, he
lpe
d us to
deter
mine the s
co
pe of ou
r audit a
nd the na
ture, timing an
d exte
nt
of our au
dit pro
ce
dures o
n the indi
vidu
al in
anci
al st
ateme
nt line
items a
nd dis
clo
sures a
nd in evalu
ating the e
ec
t of mis
st
ateme
nts,
both in
divid
ually an
d in agg
regate o
n the Fin
anci
al St
ateme
nts as
a whole.
Ba
se
d on our p
rofes
sion
al judg
eme
nt, we de
termine
d mate
rialit
y
for the F
inan
cial S
tatem
ents a
s a whol
e as foll
ows:
134
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Group Fi
nancial Stat
ements
Indepe
ndent A
udit
or’
s U
K Repor
t
c
o
nti
nu
e
d
For ea
ch co
mpon
ent in th
e sco
pe of o
ur Grou
p audit
, we alloc
ated
a materi
alit
y that is l
es
s than ou
r overall G
roup mate
rialit
y
. The ran
ge
of mate
rialit
y allo
cate
d acro
ss co
mpo
nent
s was $
11.0 million to
$22.
5 mi
llion.
We use p
er
forman
ce m
ateriali
ty to red
uce to an a
pprop
riately
low level t
he prob
abilit
y tha
t the agg
regate of un
cor
recte
d and
undetected miss
tatements exceeds overall materiality
. Spe
ciically
,
we use p
er
form
ance m
ateria
lity i
n determ
ining the s
co
pe of ou
r audit
and th
e nature an
d extent of o
ur tes
ting of ac
co
unt bal
ance
s, cl
ass
es
of trans
ac
tions a
nd dis
clo
sures
, for examp
le in dete
rmining s
amp
le
size
s. O
ur per
for
manc
e materi
alit
y was 7
5% of overall m
ateriali
ty
,
amou
nting to $1
8.7 million for th
e Grou
p Fina
ncial S
tate
ment
s and
£9.9 m
illion fo
r the Pare
nt Co
mpany Fin
anci
al St
ateme
nts.
In dete
rminin
g the pe
rfo
rman
ce mate
rialit
y
, we c
ons
ide
red a
numb
er of fa
ctors
, inclu
ding th
e histor
y of mi
ss
tatem
ents, r
isk
as
ses
sm
ent and a
ggre
gation ri
sk an
d the ee
ctive
nes
s of co
ntrols,
and we c
onc
lude
d that an a
mount at th
e upp
er en
d of our no
rmal
range
was appr
opriate.
We agree
d with the Au
dit C
ommit
tee th
at we woul
d repo
rt to
them m
iss
tatem
ents i
denti
ie
d durin
g our au
dit above $
1.
2 millio
n
(Group au
dit) and £
0.6 million (P
arent C
omp
any audit) as we
ll as
mis
state
ment
s be
low thos
e amo
unts tha
t, in our v
iew
, warrante
d
repo
rti
ng for qu
alitati
ve reas
ons
.
Conclusions rela
ting t
o goi
ng concern
Our eval
uation o
f the dire
ctors’ a
ss
es
sme
nt of the G
roup’s and the
Parent C
om
pany
’
s abili
ty to co
ntinue to a
dopt th
e going c
onc
ern
basis of account
ing included:
•
Evaluatio
n and tes
ting of key co
ntrols over th
e Group’s budg
eting
proc
es
s and th
e ass
es
sme
nt of goi
ng co
nce
rn;
•
Evaluatio
n of man
age
ment
’s Bas
e Ca
se, Dow
nsid
e Ca
se and
Severe D
owns
ide C
ase s
ce
nario
s and rever
se stre
ss te
sting
cal
culati
ons, un
der
sta
nding a
nd evalu
ating the key as
sumpti
ons,
incl
uding a
ssu
mption
s relate
d to the C
ovid-19 re
cover
y pe
riod;
•
Validatio
n that the c
as
h low fo
reca
sts u
se
d to supp
or
t
man
age
ment
’s impairm
ent, d
eferre
d tax a
ss
et rec
overabili
ty
,
goin
g con
cern a
nd viab
ilit
y as
ses
sm
ents we
re con
siste
nt and
in line w
ith the G
roup’s Board ap
proved pl
an;
•
Asses
sment o
f the
hist
orical accu
racy
and r
easonableness
of man
age
ment
’s forec
astin
g;
•
Id
enti
ic
ation of Rev
P
AR as th
e key assum
ption inh
erent i
n
man
age
ment
’s cas
h low fore
ca
sts an
d valida
tion of thi
s
as
sumptio
n to indu
str
y sourc
es;
•
C
ons
ide
ration of th
e Grou
p’
s availabl
e in
ancin
g and d
ebt matu
rity
pro
ile an
d evaluatio
n of the re
aso
nabl
ene
ss o
f mana
gem
ent
’s
as
sumptio
n that b
ank fac
ilitie
s will rem
ain undraw
n over the
pe
riod of th
e going c
onc
ern a
ss
es
sme
nt;
•
T
esti
ng of the m
athem
atica
l integrit
y of m
anag
eme
nt
’
s mod
els
and li
quidit
y he
adro
om, cove
nant c
ompli
anc
e, sen
sitivi
ty an
d
revers
e stres
s testi
ng ca
lculati
ons;
•
Asses
sment o
f the
reasonableness of
management’
s planned
or po
tential mi
tigating a
ction
s;
•
C
ons
idera
tion wh
ether c
limate ch
ang
e is expe
cte
d to have any
signi
ic
ant imp
act d
uring th
e peri
od of the g
oing c
onc
ern
assessment; and
•
Revie
w of the rel
ated dis
clo
sure
s in the Ann
ual Rep
or
t.
Ba
se
d on the work we h
ave per
form
ed, we h
ave not ide
ntii
ed any
materi
al unc
er
tainti
es rel
ating to event
s or co
nditio
ns that
, indiv
idual
ly
or co
lle
ctively, may cast s
igni
ic
ant doub
t on the G
roup’s and the
Parent C
om
pany
’
s abili
ty to co
ntinue a
s a going c
onc
ern fo
r a peri
od
of at le
ast t
welve m
onths fro
m when th
e Fin
anci
al Sta
temen
ts are
authorised f
or issue.
In aud
iting the F
inan
cial S
tatem
ents
, we have con
clud
ed th
at
the dire
ctors
’ use of th
e goin
g con
cern b
asi
s of acc
ountin
g in
the pre
parati
on of the F
inan
cial S
tatem
ents i
s appro
priate.
However, beca
use n
ot all future eve
nts or c
ondi
tions c
an b
e
pred
icte
d, this co
nclu
sion i
s not a gu
arantee a
s to the Gro
up’
s
and th
e Parent C
omp
any’s abilit
y to co
ntinue a
s a going c
onc
ern
.
In rel
ation to the di
rector
s’ repo
rti
ng on how th
ey have appl
ied th
e
UK C
orp
orate G
overnan
ce C
ode, we h
ave nothing m
aterial to a
dd
or draw at
tentio
n to in relatio
n to the dire
ctors’ s
tatem
ent in th
e
Fin
ancia
l State
ment
s abo
ut whe
ther th
e direc
tors co
nsi
dere
d it
app
ropriate to ad
opt the g
oing c
onc
ern ba
sis of a
cc
ounting
.
Our re
spo
nsib
ilitie
s and th
e resp
ons
ibilitie
s of the d
irecto
rs with
resp
ec
t to going c
onc
ern are d
esc
ribe
d in the re
levant se
ctio
ns
of this re
por
t.
Reporting on
other inf
ormation
The oth
er info
rmation c
omp
rise
s all of th
e informati
on in the A
nnual
Rep
or
t other th
an the F
inan
cial S
tatem
ents an
d our au
ditors’ re
por
t
there
on. T
he dire
ctors a
re resp
onsi
ble for th
e othe
r informati
on,
whic
h inclu
des re
por
ting b
as
ed on th
e T
a
sk Force o
n Clim
ate-
relate
d Fin
ancia
l Dis
clo
sures (
TCFD) rec
omm
end
ation
s. Ou
r opini
on
on the F
inan
cial S
tatem
ents d
oe
s not cove
r the othe
r informa
tion
and, a
cco
rdingly, we do not expres
s an au
dit opin
ion or, e
xcept
to the exte
nt othe
rwi
se exp
licitly s
tate
d in this rep
or
t, any form
of assurance t
hereon.
In co
nne
ction w
ith our au
dit of the F
inan
cial S
tatem
ents
, our
resp
on
sibilit
y is to re
ad the oth
er infor
mation a
nd, in do
ing so, to
con
sid
er whe
ther th
e other i
nformati
on is mate
rially i
nco
nsis
tent
with the F
inan
cial S
tatem
ents o
r our kn
owle
dge o
btain
ed in th
e
audit o
r othe
rwi
se ap
pea
rs to be m
ateriall
y mis
state
d. If we i
dentif
y
an app
arent m
aterial in
con
sis
tency o
r materia
l mis
state
ment
, we
are requ
ired to pe
rfo
rm proc
ed
ures to co
nclu
de whe
ther th
ere is
a materi
al mis
sta
teme
nt of the Fin
anci
al St
ateme
nts or a m
aterial
mis
state
ment o
f the othe
r inform
ation. I
f
, bas
ed o
n the work we h
ave
pe
rfor
med, we c
onc
lude th
at the
re is a materi
al mis
st
ateme
nt of this
other i
nformati
on, we are req
uired to rep
or
t that fa
ct. We have
nothin
g to repor
t b
ase
d on the
se re
spo
nsib
ilitie
s.
With re
spe
ct to the S
trategi
c Rep
or
t and Di
rector
s’ Rep
or
t, we als
o
con
sid
ered w
hethe
r the dis
clo
sure
s require
d by the U
K Com
pani
es
Act 20
0
6 have be
en inc
lude
d.
Ba
se
d on our wo
rk unde
rt
aken in the c
our
se of the a
udit, t
he
Co
mpan
ies Ac
t 200
6 re
quires u
s also to re
por
t ce
r
tain o
pinio
ns and
mat
ters a
s des
crib
ed b
elow.
Strategic
Report and Dir
ectors’
Report
In our o
pinio
n, bas
ed o
n the work u
nder
t
aken in the c
ours
e of the
audit
, the info
rmation g
iven in the S
trateg
ic Rep
or
t and Di
rector
s’
Rep
or
t for the yea
r end
ed 3
1De
cemb
er2
02
1 is co
nsis
tent with th
e
Fin
ancia
l State
ment
s and h
as be
en p
repare
d in ac
cord
ance w
ith
applicabl
e legal requirements.
In light o
f the know
led
ge and u
nde
rst
andin
g of the G
roup and
Parent C
om
pany and th
eir envi
ronme
nt obta
ine
d in the co
urse o
f the
audit
, we did not i
dentif
y any m
aterial mi
ss
tatem
ents in th
e Strate
gic
Report and Direct
ors’ R
eport.
Directors
’ Remunerat
ion
In our o
pinio
n, the p
art o
f the Dire
ctor
s’ Remun
eratio
n Rep
or
t to
be au
dited h
as be
en p
rope
rly prep
ared i
n acc
ordan
ce with th
e
Co
mpan
ies Ac
t 200
6.
135
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Independent Audi
tor’
s UK Report
Group Financial
Statements
Corpo
rate gov
ernan
ce statem
ent
The L
istin
g Rules re
quire us to revi
ew the dire
ctors
’ state
ment
s in
relati
on to going c
onc
ern, l
ong
er
-term vi
abilit
y an
d that pa
rt of th
e
cor
porate g
overnan
ce st
ateme
nt relati
ng to the Pare
nt Co
mpany
’s
com
plian
ce wi
th the provis
ions o
f the U
K Cor
porate G
overna
nce
Co
de sp
ec
ii
ed for o
ur review. Our ad
dition
al res
pon
sibili
ties wi
th
resp
ec
t to the co
rpora
te governan
ce st
atem
ent as oth
er infor
mation
are de
scrib
ed in t
he Rep
or
ting on oth
er info
rmatio
n sec
tion of
this r
eport.
Ba
se
d on the work u
nde
rt
aken as p
ar
t of our au
dit, we have
con
clud
ed th
at eac
h of the foll
owing e
lem
ents of th
e cor
porate
govern
ance s
tatem
ent in
clud
ed with
in the St
atem
ent of co
mpli
anc
e
is mate
rially c
ons
iste
nt with the F
inanc
ial St
atem
ents an
d our
knowl
ed
ge obt
aine
d during th
e audi
t and we have noth
ing mate
rial
to add o
r draw atte
ntion to in rel
ation to:
•
Th
e direc
tors’ c
on
irmatio
n that they h
ave carrie
d out a ro
bust
as
ses
sm
ent of the e
me
rging and p
rinci
pal ris
ks;
•
Th
e disc
los
ures in th
e Annua
l Repo
rt t
hat de
scrib
e tho
se prin
cipa
l
risks
, what pro
ce
dures a
re in pla
ce to ide
ntif
y eme
rging ris
ks and
an expl
anatio
n of how the
se are b
eing m
ana
ged o
r mitigate
d;
•
Th
e direc
tors’ st
ateme
nt in the F
inan
cial S
tatem
ents a
bout w
hethe
r
they co
nsi
dere
d it app
ropriate to ad
opt the g
oing c
onc
ern ba
sis
of ac
counti
ng in pre
paring th
em an
d their i
denti
ic
ation o
f any
materi
al unc
er
tainti
es to the G
roup’s and Parent C
om
pany
’
s abili
ty
to contin
ue to do so ove
r a peri
od of at l
eas
t twe
lve month
s from
the date of a
pproval of th
e Fina
ncia
l State
ment
s;
•
Th
e direc
tors’ exp
lanati
on as to the
ir as
ses
sm
ent of th
e Group’s
and Pa
rent C
ompa
ny’s prosp
ect
s, the p
erio
d this a
sse
ss
ment
cover
s and why the p
erio
d is ap
propri
ate; and
•
The dir
ectors’
statemen
t as t
o whe
ther t
hey ha
ve a reasonable
expe
cta
tion that th
e Parent C
om
pany will b
e able to c
ontinu
e in
ope
ration a
nd me
et its l
iabili
ties a
s they fall du
e over the p
erio
d of
its a
sse
ss
ment
, incl
uding a
ny related di
scl
osure
s drawing at
tenti
on
to any nec
es
sar
y qu
ali
icati
ons o
r ass
umptio
ns.
Our revi
ew of the dire
ctor
s’ state
ment re
gardin
g the lo
nger-term
viab
ilit
y of the Gro
up was su
bst
antially l
es
s in sc
ope th
an an au
dit
and o
nly co
nsis
ted of m
akin
g inquiri
es an
d con
side
ring th
e
direc
tors’ pro
ce
ss su
ppo
rti
ng thei
r state
ment
; che
ckin
g that the
sta
tement i
s in align
ment w
ith the rel
evant provis
ions o
f the UK
Co
rpor
ate Govern
ance C
o
de; and c
ons
ide
ring wh
ether th
e
sta
tement i
s con
sis
tent with th
e Fina
ncia
l State
ment
s and ou
r
knowl
ed
ge and un
der
sta
nding o
f the Gro
up and Pa
rent C
ompa
ny
and th
eir enviro
nme
nt obtai
ned i
n the co
urse o
f the audi
t.
In ad
dition, b
as
ed on th
e work un
der
taken a
s par
t of o
ur audit
, we
have con
clud
ed th
at eac
h of the foll
owing e
lem
ents of th
e co
rporate
govern
ance s
tatem
ent is m
ateria
lly co
nsis
tent with th
e Fina
ncia
l
St
ateme
nts and o
ur know
led
ge obt
aine
d durin
g the audi
t:
•
Th
e direc
tors’ st
ateme
nt that th
ey con
side
r the Ann
ual Re
por
t,
taken a
s a whol
e, is fair, balanc
ed an
d unde
rst
and
able a
nd
provid
es the in
formatio
n nec
es
sa
ry fo
r the me
mbe
rs to as
ses
s
the G
roup’s and Parent C
omp
any’s pos
ition, p
er
form
anc
e,
business model and
stra
tegy
;
•
Th
e sec
tion of th
e Annu
al Rep
or
t that de
sc
ribe
s the review
of ee
ctive
nes
s of ris
k man
age
ment an
d intern
al contro
l
system
s; and
•
Th
e sec
tion of th
e Annu
al Rep
or
t des
crib
ing the wor
k of the
Audit Commit
tee.
We have nothing to rep
or
t in res
pe
ct of ou
r resp
ons
ibilit
y to rep
or
t
whe
n the dire
ctors’ s
tatem
ent rel
ating to the P
arent C
omp
any’s
com
plian
ce wi
th the Co
de do
es n
ot prop
erly di
scl
ose a d
epa
rture
from a rel
evant provis
ion of th
e Co
de sp
eci
ie
d und
er the L
istin
g
Rule
s for review by the a
uditor
s.
Res
po
ns
ibil
itie
s for th
e Fin
anc
ial S
tate
me
nts a
nd th
e au
dit
Res
po
ns
ibil
itie
s of th
e dire
cto
rs for t
he Fin
an
cia
l Sta
tem
ent
s
As expl
aine
d more fu
lly in the S
tatem
ent of D
irecto
rs’ Re
spo
nsib
ilitie
s,
the dire
ctors a
re resp
ons
ible fo
r the prep
aratio
n of the Fi
nanc
ial
St
ateme
nts in ac
cord
anc
e with the ap
plic
abl
e framewo
rk and for
bei
ng sati
s
ied th
at they give a tru
e and fai
r view. The direc
tors
are als
o resp
ons
ible fo
r such i
nternal c
ontrol a
s they dete
rmine i
s
ne
ces
sa
ry to e
nabl
e the pre
paratio
n of Fin
anci
al St
ateme
nts that
are free fro
m materi
al mis
state
ment
, wheth
er du
e to fraud or e
rror
.
In pre
parin
g the Fin
anci
al St
ateme
nts, the d
irecto
rs are res
pon
sibl
e
for as
se
ssi
ng the G
roup’s and the Pare
nt Co
mpany
’s ability to
conti
nue as a g
oing c
onc
ern, di
sclo
sing
, as app
lica
ble, m
atte
rs
relate
d to going c
onc
ern an
d usin
g the goi
ng co
nce
rn bas
is of
acc
ountin
g unle
ss th
e direc
tors eith
er inten
d to liqui
date the G
roup
or the P
arent C
omp
any or to cea
se op
erati
ons o
r have no real
istic
altern
ative but to do s
o.
Aud
itors’ re
s
pon
sib
ilit
ies fo
r th
e aud
it of th
e Fina
nc
ial S
tate
me
nts
Our o
bjec
tives a
re to obtain re
aso
nab
le as
suran
ce ab
out wh
ethe
r
the Fi
nanc
ial St
ateme
nts as a w
hole a
re free from m
ateria
l
mis
state
ment
, wheth
er du
e to fraud or e
rror
, a
nd to is
sue an
audit
ors’ r
eport that incl
udes our opi
nion. R
easonable assurance
is a high l
evel of as
sura
nce, b
ut is no
t a guarante
e that an a
udit
con
duc
ted in ac
co
rdanc
e with ISA
s (UK
) will a
lways detec
t a materi
al
mis
state
ment w
hen it ex
ists
. Mis
st
ateme
nts c
an aris
e from frau
d or
error a
nd are co
nsid
ere
d materia
l if
, indi
vidua
lly or in th
e aggre
gate,
they co
uld rea
son
ably b
e expe
cte
d to inlu
enc
e the e
con
omic
dec
isio
ns of u
ser
s taken on th
e bas
is of th
ese F
inan
cial S
tatem
ents
.
Irreg
ulariti
es, in
cludi
ng fraud
, are inst
anc
es of n
on-
c
ompl
ianc
e
with laws a
nd reg
ulation
s. We de
sign p
roce
dures i
n line with o
ur
resp
on
sibiliti
es, o
utline
d above, to de
tect m
aterial m
iss
tatem
ents
in res
pec
t of irreg
ulariti
es, in
clud
ing frau
d. The ex
tent to whi
ch our
proc
edu
res are c
apab
le of de
tectin
g irregul
aritie
s, inc
ludin
g fraud,
is det
aile
d be
low.
Ba
se
d on our un
der
sta
nding o
f the Grou
p and in
dustr
y in wh
ich it
ope
rates
, we identi
ie
d that th
e princ
ipal ri
sks of no
n-
c
ompli
anc
e
with laws a
nd reg
ulation
s relate
d to the fail
ure to comp
ly with th
e
Lis
ting Rule
s, U
K and over
sea
s tax l
egi
slatio
n, emp
loyme
nt laws
and re
gulatio
ns an
d heal
th and s
afet
y legi
slatio
n, and we c
ons
ide
red
the ex
tent to whic
h non
-c
omp
lianc
e might h
ave a material e
ec
t
on the F
inan
cial S
tatem
ents
. We also c
ons
ide
red tho
se laws a
nd
regul
ation
s that have a dire
ct imp
act o
n the Fin
anci
al St
ateme
nts
suc
h as the C
omp
anie
s Act 20
0
6. We evaluate
d man
age
ment
’s
inc
entives a
nd op
por
tuniti
es for fr
audul
ent man
ipula
tion of the
Fin
ancia
l State
ment
s (inc
luding th
e risk o
f override o
f control
s)
and we d
etermin
ed tha
t the prin
cipa
l risks we
re related to p
osti
ng
inap
propr
iate journ
al entrie
s and m
ana
gem
ent bia
s in allo
catin
g
expe
nse
s to the Sys
tem Fund and in a
cc
ounting fo
r key estimate
s,
incl
uding I
HG Rewa
rds defe
rred reven
ue. Th
e Group a
udit te
am
sha
red this ri
sk as
se
ss
ment w
ith the co
mpo
nent a
uditor
s so that
they co
uld inc
lude a
pprop
riate aud
it proc
edu
res in res
po
nse to su
ch
risks i
n their wo
rk. Audi
t proc
edure
s pe
rfo
rmed by th
e Group a
udit
team and
/
or component audit
ors included:
•
In
quirie
s of man
age
ment
, interna
l audit a
nd the G
roup’s legal
cou
nse
l, inclu
ding c
ons
ider
ations o
f known o
r sus
pec
ted in
sta
nce
s
of non
-
co
mplia
nce wi
th laws an
d regula
tions a
nd fraud;
•
Review
of corr
espondence received f
rom r
egulat
ors and
con
sid
eratio
n of the imp
act
, if any
, on o
ur audi
t and the d
isc
losu
res
made in
the inanc
ial stat
ements;
•
Evaluatio
n and tes
ting of th
e ee
ctiven
es
s of man
age
ment
’s
contro
ls de
sign
ed to prevent a
nd dete
ct irre
gulari
ties;
•
As
se
ss
ment of m
atte
rs rep
or
ted on th
e Group’s whis
tleb
lowing
help
line a
nd the re
sults o
f mana
gem
ent
’s investigatio
n of
such matters;
136
I
HG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Group Fi
nancial Stat
ements
Indepe
ndent A
udit
or’
s U
K Repor
t
c
o
nti
nu
e
d
•
Ide
ntiication and testing of signiicant manual journal entries,
in particular any journal entries posted with unusual account
com
binati
ons wh
ich res
ulted in a
n impa
ct on reven
ue or th
e
System
F
und;
and
•
Ch
alle
nging a
ssu
mption
s and ju
dge
ment
s mad
e by mana
gem
ent
in mak
ing sig
ni
icant a
cc
ounting e
stim
ates, in p
ar
ticula
r in relati
on
to IH
G Rewards loyalt
y pro
gramm
e defe
rred revenu
e and exp
ecte
d
credi
t losses.
The
re are inhe
rent limit
ation
s in the au
dit pro
ce
dures d
esc
ribe
d above.
We are les
s likely to be
co
me aware of in
sta
nce
s of non
-
co
mplia
nce
with laws a
nd reg
ulation
s that are n
ot clo
sely re
lated to eve
nts and
trans
acti
ons re
le
cted i
n the Fin
anci
al St
ateme
nts. A
lso, the ri
sk of
not de
tectin
g a materi
al mis
state
ment d
ue to fraud i
s highe
r than th
e
risk o
f not dete
cting o
ne res
ulting fro
m error
, as frau
d may involve
deli
bera
te conc
ea
lment by
, for examp
le, forge
ry o
r intentio
nal
misrepresentat
ions or th
rough col
lusion.
Our au
dit tes
ting mig
ht inclu
de tes
ting co
mpl
ete pop
ulatio
ns
of ce
rt
ain tran
sac
tion
s and ba
lanc
es, p
os
sib
ly usin
g data a
uditin
g
tech
nique
s. H
owever
, i
t typ
ical
ly involves s
ele
ctin
g a limited n
umbe
r
of item
s for tes
ting, rathe
r than te
sting c
omp
lete po
pula
tions
.
We will of
ten se
ek to ta
rget pa
rti
cular i
tems for te
sting b
ase
d on
their s
ize or ri
sk ch
aracte
risti
cs. I
n other c
as
es, we wi
ll use a
udit
sam
pling to e
nabl
e us to draw a co
nclu
sio
n abou
t the po
pula
tion
from whi
ch the s
ampl
e is se
lec
ted.
A fur
ther d
es
criptio
n of our re
spo
nsib
ilitie
s for the au
dit of
the Fi
nanc
ial St
ateme
nts is l
oc
ated on th
e FRC
’s website at:
ww
w
.fr
c.org.
uk/
auditorsresponsibilities
. This de
sc
ription for
ms
par
t of ou
r auditor
s’ rep
or
t.
Us
e of thi
s rep
or
t
This re
por
t, i
nclu
ding the o
pinio
ns, ha
s be
en pre
pare
d for and o
nly
for the P
arent C
ompa
ny’s memb
ers a
s a bo
dy in ac
cord
anc
e with
Cha
pter 3 of Pa
rt 1
6 of the C
omp
anies A
ct 20
06 a
nd for no oth
er
purp
ose
. We do not, in g
iving th
ese o
pinio
ns, a
cce
pt or as
sum
e
resp
on
sibilit
y for a
ny other pur
pos
e or to any othe
r per
son to wh
om
this rep
or
t is sh
own or into wh
os
e hand
s it may co
me save wh
ere
expre
ssl
y agree
d by our pri
or co
nse
nt in writin
g.
O
the
r
re
qui
red
re
po
r
ti
ng
Co
mpa
nie
s Act 2
00
6 excep
tion r
ep
ort
ing
Und
er the C
omp
anie
s Act 20
0
6, we are req
uired to rep
or
t to you if,
in our opinion:
•
We have not ob
tain
ed all th
e informa
tion and ex
plan
ation
s we
requi
re for our au
dit; o
r
•
Ade
quate a
cco
unting re
cord
s have not be
en kept by th
e Parent
Co
mpany
, or return
s ade
quate for o
ur audit h
ave not be
en
rec
eived f
rom bran
che
s not vis
ited by us; o
r
•
C
er
tain d
iscl
osure
s of dire
ctors’ re
mune
ration s
pe
ci
ied by law
are not m
ade; o
r
•
Th
e Parent C
omp
any Fina
ncia
l State
ment
s and th
e par
t of the
Dire
ctors’ R
emun
eratio
n Repo
rt to b
e audite
d are not in a
gree
ment
with the a
cc
ounting re
cord
s and return
s.
We have no exceptio
ns to rep
or
t arisi
ng from thi
s resp
ons
ibilit
y
.
Appoi
ntment
Followin
g the rec
omm
end
ation of th
e Audit C
ommi
tte
e, we
were app
ointe
d by the me
mbe
rs at the An
nual G
en
eral M
eetin
g
on 7 M
ay 202
1 to audit the F
inan
cial S
tatem
ent
s for the yea
r end
ed
31D
ec
emb
er202
1 an
d subs
equ
ent 
inan
cial p
erio
ds. T
his is
there
fore our 
irst ye
ar of uninte
rrupte
d enga
gem
ent.
Other matt
ers
In due c
our
se, as re
quire
d by the Fin
anci
al Co
nduc
t Author
ity
Dis
clo
sure Gu
idan
ce and Transp
arency Rul
e 4.1.
14R
, thes
e i
nanc
ial
statements will form part of the ESEF-prepared annual inan
cial report
il
ed on th
e Nati
onal S
torag
e Me
chani
sm of th
e Finan
cial C
on
duct
Autho
rity in a
cc
ordan
ce with th
e ESE
F Regul
ator
y T
e
chnic
al
St
anda
rd (‘ES
EF RTS
’). Thi
s audito
rs’ rep
or
t provid
es no a
ssu
ranc
e
over whe
ther th
e annua
l in
anci
al repo
rt w
ill be p
repare
d usi
ng the
singl
e ele
ctroni
c format s
pe
ci
ied in t
he ESE
F RTS.
Giles Hannam (
Senior Statut
ory Audit
or
)
for and o
n be
half of P
ricewate
rhou
se
Co
ope
rs LL
P
Cha
rte
red Ac
count
ants a
nd St
atutor
y Audito
rs
London
21Feb
ruar
y20
2
2
137
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Independent Audi
tor’
s UK Report
Group Financial
Statements
Report of Inde
pende
nt Registered Public
Accounting
Firm
T
o th
e bo
ard of direc
tors an
d share
hol
der
s of Inter
Co
ntinent
al
Hote
ls Grou
p PLC
Op
inio
ns o
n the Fi
nan
ci
al St
atem
ent
s an
d Inte
rnal C
ont
rol
over Fin
anc
ia
l Rep
ort
ing
We have audite
d the ac
com
panying G
roup s
tatem
ent of 
inan
cial
po
sition o
f Inter
Conti
nent
al Hote
ls Gro
up PLC and it
s subs
idiar
ies
(the ‘Group’
) as of 3
1 De
cem
ber 2
02
1 and the re
lated G
roup
inc
ome s
tatem
ent and G
roup s
tatem
ents of c
omp
rehe
nsive in
com
e,
cha
nges i
n equi
ty an
d ca
sh l
ows for the ye
ar then e
nde
d, the
Acc
ounting p
olic
ies a
nd the rel
ated n
otes (colle
ctive
ly referre
d
to as the ‘G
roup Fi
nanc
ial St
ateme
nts’
). We also have au
dited th
e
Group’s interna
l contro
l over in
anci
al rep
or
ting as of 3
1 De
ce
mbe
r
202
1, ba
se
d on crite
ria es
tab
lish
ed in In
ternal C
ontrol — I
ntegrate
d
Framework (2
013) is
sue
d by the C
ommit
tee o
f Spo
nso
ring
Orga
niz
ations o
f the T
re
adway C
ommi
ssi
on (COS
O).
In our o
pinio
n, the G
roup Fin
anci
al St
ateme
nts referre
d to above
pres
ent fai
rly
, in a
ll materi
al resp
ec
ts, th
e in
ancia
l pos
ition of t
he
Group a
s of 31 D
ec
emb
er 20
21 a
nd the re
sults o
f its op
eratio
ns
and it
s ca
sh l
ows for the ye
ar then e
nde
d in ac
cord
anc
e with
(i) Intern
ation
al Fin
anci
al Rep
or
ting St
and
ards as i
ssu
ed by the
Intern
ation
al Acc
ounting S
tan
dards B
oa
rd and (ii) U
K
-ad
opte
d
Intern
ation
al Acc
ounting S
tan
dards
. Als
o in our o
pinion
, the Gro
up
maint
aine
d, in all m
aterial re
spe
ct
s, ee
ctive inte
rnal c
ontrol over
in
anci
al rep
or
ting as of 3
1 De
ce
mbe
r 202
1, ba
sed o
n criteri
a
est
abl
ishe
d in Inte
rnal C
ontrol — I
ntegrate
d Framework (20
13)
is
sue
d by the CO
SO.
Basis for Opinions
The G
roup’s manag
eme
nt is res
po
nsib
le for the G
roup F
inanc
ial
St
ateme
nts, for m
aintai
ning e
ecti
ve internal c
ontrol ove
r in
ancia
l
repo
rti
ng and fo
r its as
se
ss
ment of th
e ee
ctive
nes
s of intern
al
contro
l over i
nanc
ial rep
or
ting, in
clud
ed in M
ana
gem
ent
’s
repo
rt o
n intern
al contro
l over i
nanc
ial rep
or
ting on p
age 13
0.
Our re
spo
nsib
ilit
y is to expre
ss op
inion
s on the G
roup Fi
nanc
ial
St
ateme
nts and o
n the Gro
up’s internal co
ntrol over 
inan
cial
repo
rti
ng ba
sed o
n our au
dit. We are a pub
lic ac
cou
nting 
irm
regis
tered w
ith the Pu
blic C
omp
any Acco
unting O
vers
ight Bo
ard
(Unite
d St
ates) (PCAOB) an
d are requi
red to be in
dep
en
dent wi
th
resp
ec
t to the Grou
p in acc
orda
nce wi
th the US fe
de
ral se
curitie
s
laws an
d the app
lic
able ru
les a
nd regu
lation
s of the S
ecuri
ties an
d
E
xchang
e Com
mis
sion a
nd the P
CAOB.
We cond
ucte
d our au
dit in ac
cord
anc
e with the s
tand
ards of th
e
PCAO
B. Th
ose s
tan
dards re
quire that we p
lan an
d pe
rfor
m the audi
t
to obta
in reas
ona
ble as
sura
nce a
bout w
heth
er the G
roup Fin
anci
al
St
ateme
nts are fre
e of materi
al mis
state
ment
, wheth
er du
e to error
or frau
d, and wh
ethe
r ee
ctive intern
al co
ntrol over 
inan
cial
repo
rti
ng was m
aintain
ed in a
ll materi
al resp
ec
ts.
Our au
dit of th
e Group F
inan
cial S
tatem
ents in
clud
ed p
er
formin
g
proc
edu
res to as
se
ss the ri
sks of m
aterial mi
ss
tatem
ent of the G
roup
Fin
ancia
l State
ment
s, whe
ther d
ue to error o
r fraud, an
d pe
rfo
rming
proc
edu
res that re
sp
ond to tho
se ris
ks. Su
ch pro
ce
dures in
clud
ed
examinin
g, on a tes
t bas
is, evi
den
ce reg
arding th
e amoun
ts and
dis
clos
ures in th
e Group F
inan
cial S
tatem
ents
. Our a
udit al
so
incl
ude
d evaluatin
g the ac
cou
nting prin
cipl
es us
ed an
d signi
i
cant
esti
mates m
ade by m
anag
eme
nt, as we
ll as evalu
ating the ove
rall
pres
ent
ation of th
e Group F
inan
cial S
tatem
ents
. Our a
udit of inte
rnal
control over inanci
al repor
ting included o
btaining an under
standing
of intern
al co
ntrol over 
inanc
ial rep
or
ting, a
sse
ss
ing the ri
sk that a
materi
al weak
ne
ss exis
ts an
d testin
g and evalu
ating the d
esi
gn and
ope
rating e
ec
tivene
ss o
f internal c
ontrol b
as
ed on th
e as
ses
se
d
risk
. Our a
udit al
so inc
lude
d pe
rfo
rming su
ch othe
r proc
ed
ures as
we con
sid
ered n
ec
es
sar
y in the c
ircums
tan
ces
. We beli
eve that our
audit p
rovide
s a reas
ona
ble b
asis fo
r our op
inion
s.
Dei
nition and Limitatio
ns of Internal Cont
rol
over Fin
anc
ia
l Rep
ort
ing
A com
pany
’s internal co
ntrol over 
inan
cial rep
or
ting i
s a proc
es
s
des
igne
d to provid
e reas
onab
le as
sura
nce re
gardin
g the relia
bilit
y
of i
nanc
ial rep
or
ting an
d the prep
aratio
n of i
nanc
ial st
ateme
nts
for ex
ternal p
urpo
se
s in acc
ordan
ce wi
th gen
erally a
cc
epted
acc
ountin
g princ
iple
s. A c
ompa
ny’s internal c
ontrol ove
r in
ancia
l
repo
rti
ng inc
lude
s thos
e po
licie
s and pro
ce
dures th
at (i) pe
rt
ain
to the mai
ntenan
ce of re
cords th
at, in re
aso
nabl
e det
ail, ac
curately
and fai
rly re
lec
t the tran
sac
tions a
nd dis
po
sition
s of the a
sse
ts of
the compan
y; (i
i) pr
ov
ide reasonable
assurance
that
transact
ions ar
e
rec
orde
d as ne
ce
ss
ary to p
ermi
t prepa
ration of 
ina
ncia
l state
ment
s
in ac
corda
nce w
ith gen
erall
y acc
epte
d acc
ounting p
rinci
ple
s and
that rec
eipt
s and exp
en
ditures of th
e co
mpany are b
eing m
ade on
ly
in ac
corda
nce w
ith autho
riz
ations o
f mana
gem
ent an
d directo
rs
of the c
omp
any; and (iii) provid
e reas
ona
ble as
sura
nce re
gardin
g
preventio
n or time
ly dete
ctio
n of unau
thoriz
ed ac
quis
ition, u
se or
disp
os
ition of th
e com
pany
’
s as
set
s that co
uld have a mate
rial e
ec
t
on the
inancial
statemen
ts.
Be
cau
se of it
s inhe
rent limi
tatio
ns, intern
al co
ntrol over 
inan
cial
repo
rti
ng may not p
revent or de
tect mi
sst
atem
ents
. Als
o, projec
tions
of any evaluati
on of e
ecti
vene
ss to future p
erio
ds are su
bjec
t to the
risk th
at co
ntrols may b
eco
me in
ade
quate b
ec
ause o
f chan
ges in
con
ditio
ns or tha
t the de
gree of c
omp
lianc
e with th
e poli
cies o
r
procedures may deteriorate.
Crit
ical
Audi
t Ma
tters
The c
ritica
l audit m
atte
rs co
mmuni
cated b
el
ow are mat
ters ari
sing
from the c
urrent p
erio
d audit of th
e Grou
p Fina
ncial S
tate
ment
s that
were co
mmuni
cate
d or requ
ired to be c
omm
unic
ated to the au
dit
com
mit
tee and th
at (i) rel
ate to acco
unts o
r disc
los
ures that a
re materia
l
to the Gro
up Fina
ncia
l State
ment
s and (ii) i
nvolved ou
r esp
ec
ially
chal
leng
ing, sub
jec
tive, or co
mpl
ex judgm
ents
. The c
ommu
nicati
on
of criti
cal au
dit mat
ters d
oe
s not alte
r in any way our opin
ion on th
e
Group F
inan
cial S
tatem
ent
s, taken a
s a whol
e, and we are n
ot, by
com
munic
ating th
e critic
al audi
t mat
ters b
elow, providing s
epa
rate
opin
ions o
n the criti
cal au
dit mat
ter
s or on th
e acc
ounts o
r
dis
clos
ures to whi
ch they rel
ate.
Bre
aka
ge a
ss
ump
tion u
se
d to e
stim
ate IH
G Reward
s loyalt
y
progra
mme defe
rred revenue
As de
scri
be
d in the Es
timate
s sec
tion of th
e Acc
ountin
g poli
cies
and in n
ote 3 to the Grou
p Fina
ncial S
tate
ment
s, defe
rred revenu
e
relatin
g to the IH
G Rewards l
oyalty p
rogram
me was $
1,2
92m a
s
of 31 D
ec
emb
er 20
21. T
he hote
l loyalt
y progra
mme, I
HG Rewa
rds,
ena
ble
s mem
ber
s to earn p
oints
, funde
d throu
gh hotel a
ss
es
sme
nts,
during e
ach q
ualif
yin
g stay at an I
HG b
rand
ed hote
l and to c
onsu
me
point
s at a later d
ate in exchan
ge for ac
co
mmod
ation o
r other b
ene
i
ts.
The G
roup rec
ogn
ise
s defe
rred revenu
e in an am
ount that re
le
cts
the G
roup’s unsatis
i
ed pe
r
forman
ce ob
ligatio
ns, val
ued at th
e
sta
nd-
alo
ne se
lling p
rice of th
e future b
ene
it to th
e memb
er.
The a
mount of reve
nue rec
ogn
ise
d and d
eferre
d is imp
acte
d by the
esti
mate of bre
akag
e which i
s the e
stimate of th
e numb
er of p
oints
that will n
ever b
e con
sume
d. Th
e Group e
nga
ges a
n extern
al ac
tuar
y
who u
ses s
tatis
tica
l formula
e to as
sist in d
etermi
ning this b
reak
age
esti
mate. Si
gni
ica
nt estim
ation un
ce
rt
aint
y exist
s in proje
cting
mem
ber
s’ future c
ons
umption a
ctivi
ty an
d how this m
ay be
imp
ac
ted by C
ovi
d-19.
138
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Group Fi
nancial Stat
ements
Independent A
uditor’
s US R
eport
The p
rincip
al co
nsi
derati
on for our d
etermi
nation th
at pe
rfo
rming
proc
edu
res rel
ating to the bre
akag
e as
sumpti
on us
ed to es
timate
IH
G Rewards l
oyalty p
rogramm
e defe
rred revenu
e is a cri
tical a
udit
mat
ter is th
at there i
s signi
ic
ant es
timatio
n unc
er
taint
y in proj
ecti
ng
mem
ber
s’ future c
ons
umption a
ctivi
ty an
d how this m
ay be
impa
cted by C
ovid
-19. This in tur
n led to a hig
h degre
e of au
ditor
judg
ment
, subje
ctivi
ty an
d eo
rt in p
er
formin
g proc
edu
res to
evaluate th
e break
age a
ssu
mption an
d the rel
ated au
dit evid
enc
e.
The au
dit e
or
t involved th
e use of p
rofes
sion
als wi
th spe
cial
ise
d
skill and
knowledge.
Addre
ssi
ng the ma
tter i
nvolved p
er
forming p
roce
dure
s and evalu
ating
audit ev
ide
nce in c
onn
ecti
on with form
ing our ove
rall opi
nion o
n the
Group F
inan
cial S
tatem
ent
s. The
se p
roce
dure
s inclu
de
d testin
g the
ee
ctiven
es
s of co
ntrols rel
ating to ma
nage
ment
’s determ
inatio
n of
the bre
akag
e as
sumptio
n. Th
ese p
roc
edure
s als
o inclu
ded
, amon
g
other
s, (i) tes
ting a s
ampl
e of dat
a use
d by mana
gem
ent
’s actuar
y in
deri
ving the b
reak
age as
sum
ption to und
erly
ing rec
ords; (ii) a
ss
es
sing
the co
mpe
tenc
e and ob
jec
tivit
y of man
age
ment
’s exper
t
; (iii) as
se
ssin
g
the rea
son
abl
ene
ss of th
e meth
ods an
d as
sumptio
ns us
ed by
man
age
ment
’s actuar
y in d
etermini
ng bre
akage
; (iv) develo
ping an
inde
pe
nde
nt expe
ctati
on of a rea
son
ably p
os
sibl
e rang
e for defe
rred
revenue b
ase
d on in
dep
en
dently d
etermin
ed b
reaka
ge as
sumpti
ons;
(v
) com
parin
g the defe
rred reven
ue bal
anc
e, which re
le
cte
d
man
age
ment
’s assu
mption
s abo
ut the on
goin
g impac
t of C
ovid-19
on futu
re activi
ty of p
rogram
me me
mbe
rs, with o
ur ind
epe
nde
ntly
cal
culate
d rang
e; and (vi) as
se
ssi
ng the ap
propri
atene
ss of th
e relate
d
disclosures incl
uding sensitiv
ity analysis i
n the Gr
oup Financial
St
ateme
nts. Profe
ss
iona
ls with s
pe
ciali
sed s
kill an
d knowl
ed
ge were
use
d to as
sist i
n the evalu
ation of th
e break
age a
ssum
ption.
Allo
ca
tion o
f expe
ns
es to th
e Sys
tem Fund
As de
scri
be
d in the Sys
tem Fund and oth
er c
o-
bran
d revenue
s se
ction
of the Ac
cou
nting po
licie
s and in n
ote 33 to the G
roup F
inanc
ial
St
ateme
nts, the G
roup re
corde
d Sys
tem Fund expe
nse
s of $
939
m
for the ye
ar end
ed 3
1 De
cem
ber 2
02
1. The G
roup o
perate
s a Sys
tem
Fund to coll
ect an
d admi
niste
r cas
h as
ses
sm
ents fro
m hotel own
ers
.
E
xpe
nse
s incur
red are all
oca
ted to the Sy
stem Fund in ac
co
rdanc
e
with the p
rinci
ple
s agree
d with th
e IH
G Own
ers As
so
ciatio
n.
The p
rincip
al co
nsi
derati
on for our d
etermi
nation th
at pe
rfo
rming
proc
edu
res rel
ating to the all
oc
ation of exp
ens
es to th
e Syste
m
Fund is a critic
al au
dit mat
ter is th
at the
re is judg
eme
nt involved
in devel
opin
g the intern
al po
licie
s in orde
r to appl
y the prin
cipl
es
agre
ed with th
e IH
G Own
ers A
sso
ciati
on to expe
nse
s inc
urred an
d
there i
s com
plexit
y in su
bse
que
ntly evaluati
ng whe
ther exp
ens
es
are app
ropriate
ly allo
cate
d to the Sys
tem Fund in line w
ith the
se
intern
al pol
icie
s. Thi
s in turn le
d to a high de
gree of a
uditor
judg
ment
, subje
ctivi
ty an
d eo
rt in p
er
formin
g proc
edu
res
to evaluate ma
nag
eme
nt’s cla
ssi
ic
atio
n of expe
nse
s.
Addre
ssi
ng the ma
tter i
nvolved p
er
forming p
roce
dure
s and
evaluati
ng audit ev
ide
nce in c
onn
ecti
on with for
ming our ove
rall
opin
ion on th
e Group F
inan
cial S
tatem
ents
. The
se p
roce
dure
s
incl
ude
d testin
g the e
ective
ne
ss of c
ontrols re
lating to al
loc
ation
of expe
ns
es to the Sy
stem Fund. Th
es
e proc
edu
res als
o incl
ude
d,
amo
ng othe
rs, (i) un
der
stan
ding an
d as
ses
sin
g the intern
al po
licie
s
that the G
roup h
as put i
n plac
e in orde
r to appl
y the prin
cipl
es
agre
ed with th
e IH
G Own
ers A
sso
ciati
on to expe
nse
s inc
urred;
(ii) tes
ting a sa
mple o
f expe
nse
s that ha
d be
en all
oca
ted to the
Syste
m Fund to ass
es
s wheth
er they we
re in com
plian
ce with th
es
e
pol
icie
s and c
onsi
stent wi
th histo
rical p
racti
ce; an
d (iii) ch
eck
ing
wheth
er the
re were any man
ual jo
urnal e
ntries th
at trans
ferred
expe
nse
s to or from th
e Syste
m Fund to evaluate whe
ther th
ere
was an ap
prop
riate ration
ale for a
ny such jo
urnal
s and to dete
rmine
wheth
er the re
sultin
g cla
ssi
ic
ation o
f the exp
ens
es was i
n line with
the pri
ncipl
es a
gree
d with the I
HG O
wne
rs As
soc
iation
.
Ex
pe
cte
d cre
dit lo
s
se
s on tra
de re
ce
ivabl
es
As de
scri
be
d in the Es
timate
s sec
tion of th
e Acc
ountin
g poli
cies
and in n
ote 18 to the Gro
up Fin
ancia
l State
ment
s, the G
roup
rec
orde
d a provisi
on for exp
ecte
d cre
dit los
se
s of $1
33m a
s of
31 D
ec
emb
er 202
1 ag
ains
t a gross t
rade re
ceiva
ble
s bal
ance
of $5
32m
. A provisi
on for imp
airme
nt is ma
de for li
fetime exp
ecte
d
cred
it los
se
s. M
anag
eme
nt has e
st
ablis
he
d a provisi
on matri
x that
is ba
se
d on his
toric
al cred
it los
s expe
rien
ce by regi
on and nu
mbe
r
of days pa
st du
e. Whe
re the his
toric
al expe
rien
ce is no
t relevant
to de
ine
d owne
r group
s, for examp
le owne
rs with p
ayme
nt plan
s,
the exp
ecte
d lifetim
e los
se
s are cal
culate
d by referen
ce to othe
r
sou
rces of d
ata. A
lthou
gh ca
sh co
lle
ction fro
m owner
s has
improve
d sinc
e 2020, th
e prop
or
tion of ol
der d
ebt is h
ighe
r than in
pe
riods p
rior to th
e pand
emic
. There a
lso re
mains a ri
sk of re
duc
ed
owne
r liquid
ity. Thes
e factor
s, ta
ken togeth
er with th
e conti
nue
d
unc
er
tainti
es ab
out the p
ac
e and sc
ale o
f market rec
over
y
, re
sult
in expe
cte
d credi
t los
se
s contin
uing to be a s
igni
ic
ant es
timate.
The p
rincip
al co
nsi
derati
on for our d
etermi
nation th
at pe
rfo
rming
proc
edu
res rel
ating to expe
cte
d credi
t los
ses o
n trad
e rece
ivabl
es
is a criti
cal au
dit mat
ter i
s the sign
ii
cant e
stim
ation un
cer
ta
inty
involved i
n determi
ning the l
evel of exp
ecte
d cre
dit los
se
s. Th
is in
turn le
d to a high de
gree of a
uditor ju
dgm
ent, su
bjec
tivit
y and e
or
t
in pe
rfo
rming pro
ce
dures to eval
uate man
age
ment
’s estim
ates.
Addre
ssi
ng the ma
tter i
nvolved p
er
forming p
roce
dure
s and
evaluati
ng audit ev
ide
nce in c
onn
ecti
on with for
ming our ove
rall
opin
ion on th
e Group F
inan
cial S
tatem
ents
. The
se p
roce
dure
s
incl
ude
d testin
g the e
ective
ne
ss of c
ontrols re
lating to exp
ec
ted
cred
it los
se
s. Th
ese p
roc
edure
s als
o inclu
de
d, amon
g other
s,
(i) tes
ting the m
athem
atica
l integrit
y of m
anag
eme
nt
’
s expe
cted
cred
it los
s matrix
; (ii) te
sting a s
ampl
e of the hi
storic
al ag
ed
receivables analys
is and collections experien
ce underpinning the
mod
el to und
erly
ing rec
ords; (ii
i) ass
es
sing a
ssu
mption
s use
d in the
mod
el ag
ains
t rece
nt histo
rica
l experi
enc
e of regi
onal c
olle
ctio
ns;
(iv) ass
es
sing th
e appro
priate
nes
s of exp
ecte
d lifetim
e los
se
s for
those
owner
gro
ups wher
e management
deter
mined
hist
orical
expe
rien
ce not to b
e relevant a
nd obt
aining ev
iden
ce to dete
rmine
wheth
er the
se p
rovisio
ns were re
quired to s
tate trad
e rec
eivab
les at
their n
et rea
lisa
ble valu
e; (v
) evaluati
ng whe
ther th
e overall provi
sion
rec
orde
d is sup
por
ta
ble an
d in co
mplia
nce wi
th the req
uireme
nts of
IFR
S 9; (vi) reviewing i
nternal m
ana
gem
ent rep
or
ting to ide
ntif
y any
contrad
ictory e
vidence; a
nd (
vii
) assessing the
appropr
iat
eness of
the rel
ated dis
clo
sure
s in the Gro
up Fin
ancia
l Sta
tement
s.
139
IH
G
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Independent Audi
tor’
s US R
eport
Group Financial
Statements
Rec
ogn
itio
n of th
e UK de
ferre
d tax a
s
set
As de
scri
be
d in the T
axes se
ctio
n of the Ac
cou
nting po
licie
s
and in n
ote 8 to the Grou
p Fina
ncial S
tate
ment
s, a defe
rred t
ax
as
set of $
127m was re
cog
nise
d relate
d to the U
K tax gro
up as of
31 D
ec
emb
er 202
1. J
udg
eme
nt is us
ed wh
en as
se
ssi
ng the ex
tent
to which d
eferre
d tax a
ss
ets, p
ar
ticula
rly in res
pe
ct of ta
x los
se
s,
sho
uld be re
co
gnis
ed. D
efer
red ta
x ass
ets a
re therefo
re reco
gnis
ed
to the exte
nt that it i
s regard
ed as p
roba
ble tha
t there will b
e
su
ici
ent and s
uita
ble t
axabl
e pro
its in th
e relevant l
ega
l entit
y
or ta
x group ag
ains
t which s
uch a
sse
ts ca
n be utili
se
d in the futu
re.
For this p
urpo
se, fore
cas
ts of fu
ture taxa
ble pro
it
s are con
sid
ered
by ass
es
sing th
e Grou
p’
s forec
ast reve
nue an
d pro
it mod
els
,
tak
ing into ac
cou
nt future grow
th pre
dictio
ns an
d ope
rating c
ost
as
sumptio
ns. T
he rec
overab
ilit
y of the U
K deferre
d ta
x ass
et ha
s
be
en as
se
ss
ed by st
ar
ting with th
e man
agem
ent
’s foreca
sts
,
overlayin
g tax p
rincip
les to th
ose fo
reca
sts a
nd follow
ing the
meth
odo
logy re
quire
d by IAS 12. Th
is ha
s dem
onstr
ated that th
e UK
defe
rred ta
x as
set sh
ould reve
rse over a s
even
- to ten-yea
r peri
od.
Und
er U
K law, tax los
se
s do not exp
ire but th
ey can on
ly be o
set
agai
nst 50
% of ann
ual U
K taxa
ble pro
it
s.
The p
rincip
al co
nsi
derati
on for our d
etermi
nation th
at pe
rfo
rming
proc
edu
res rel
ating to rec
ogniti
on of the U
K de
ferred t
ax as
set i
s a
critic
al au
dit mat
ter is th
e signi
ic
ant e
stimati
on unc
er
taint
y involve
d
in dete
rmining th
e future t
axabl
e pro
its of th
e UK t
ax group. T
his in
turn le
d to a high de
gree of a
uditor ju
dgm
ent, su
bjec
tivit
y and e
or
t
in evalua
ting audi
t evide
nce a
nd in dete
rminin
g the rea
son
able
ne
ss
of the fore
ca
st seve
n- to ten
-year p
erio
d to recover th
is as
set.
In ad
dition, th
e audi
t eor
t involve
d the us
e of profe
ssi
onal
s with
sp
ecia
lized s
kill an
d know
led
ge.
Addre
ssi
ng the ma
tter i
nvolved p
er
forming p
roce
dure
s and
evaluati
ng audit ev
ide
nce in c
onn
ecti
on with for
ming our ove
rall
opin
ion on th
e Group F
inan
cial S
tatem
ents
. The
se p
roce
dure
s
incl
ude
d testin
g the e
ective
ne
ss of c
ontrols re
lating to th
e
rec
ogniti
on of de
ferred t
ax as
set
s and th
e Group’s forec
astin
g
process. These procedures a
lso included,
among ot
hers,
(i) pe
rfo
rming a retro
spe
ctive c
ompa
riso
n of UK fo
rec
ast t
axabl
e
pro
its to ac
tual p
ast p
er
forma
nce to de
termine th
e his
torica
l
acc
uracy of m
ana
gem
ent
’s f
orec
as
ting; (ii) eval
uating th
e
appropr
iat
eness of the
assumpt
ions r
elected in t
he UK f
orecasts,
includi
ng assessing t
he reasonableness of
gr
owth pr
edictions
compared to historical experience and indus
try data and
be
nchm
arkin
g mana
gem
ent
’s estimate to third
-p
ar
ty s
ource
s;
(iii
) assessing t
he appr
opriat
eness of tax
ov
erla
y adjust
ments a
pplied
to the fore
cas
ts by refere
nce to the re
quire
ment
s of tax p
rinci
ple
s,
incl
uding th
e restri
ction o
f los
se
s to 50% of an
nual U
K tax
able
pro
its, a
nd dete
rmining w
hethe
r the U
K defe
rred t
ax as
set m
eet
s
the rec
ogn
ition cr
iteria of I
AS 12; (iv) as
se
ssin
g the ap
propri
atene
ss
of the fore
ca
st rec
over
y per
iod of s
even to ten yea
rs; and
(v
) ass
es
sing t
he app
ropriate
nes
s of the re
late
d disc
losu
res in the
Group Financial Stateme
nts. Professionals with specialis
ed skills
and k
nowle
dge we
re use
d to as
sist i
n the evaluati
on of rec
ogn
ition
of the U
K defe
rred t
ax as
set.
/s/Pricewaterh
ous
eC
oop
er
s LLP
London, E
ngland
21 Feb
ruar
y 20
2
2
We have ser
ved a
s the C
omp
any’s auditor s
inc
e 202
1.
140
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Group Fi
nancial Stat
ements
Indepe
ndent A
udit
or’
s US
Repor
t
c
o
ntin
u
e
d
Report of Inde
pende
nt Registered Public
Accounting
Firm
T
o th
e Share
hol
der
s and the B
oa
rd of Direc
tors of I
nterC
ontin
ent
al
Hote
ls Grou
p PLC
Op
inio
n on th
e Fin
anc
ial S
tate
me
nts
We have audite
d the ac
com
panying G
roup s
tatem
ent of 
inan
cial
po
sition o
f Inter
Conti
nent
al Hote
ls Gro
up PLC (the ‘Group’
) as
of 31 D
ec
emb
er 20
20, the rela
ted Gro
up sta
temen
ts of inc
ome,
com
preh
ens
ive inco
me, ch
ange
s in e
quit
y and c
ash 
lows for e
ach
of the t
wo year
s in the pe
riod e
nde
d 31 D
ec
emb
er 20
20, and the
relate
d notes (col
lec
tively refe
rred to as th
e ‘Grou
p Fina
ncial
St
ateme
nts’). I
n our opi
nion, th
e Group F
inan
cial S
tatem
ents
pres
ent fai
rly
, in a
ll materi
al resp
ec
ts, th
e in
ancia
l pos
ition of t
he
Group a
t 31 De
ce
mbe
r 202
0, and the res
ults o
f its op
eratio
ns
and it
s ca
sh l
ows for ea
ch of the t
wo year
s in the p
erio
d end
ed
31 D
ec
emb
er 202
0, in confo
rmit
y with Inter
nation
al Fin
anci
al
Rep
or
ting St
and
ards as i
ssu
ed by the I
nternati
onal Ac
co
unting
St
anda
rds Bo
ard, ado
pted pu
rsua
nt to Regul
ation (EC) No.
16
06/20
02 a
s it app
lies in th
e Europ
ean U
nion.
Basis for Opinion
The
se G
roup Fin
anci
al St
ateme
nts are the re
sp
onsi
bilit
y of the
Group’s man
agem
ent. O
ur res
po
nsibi
lity i
s to expres
s an op
inion
on the G
roup’s Finan
cial S
tatem
ents b
ase
d on o
ur audit
s. We are a
pub
lic acc
ountin
g irm re
gis
tered wi
th the PCAO
B and are re
quire
d
to be ind
ep
end
ent with re
spe
ct to the G
roup in a
cco
rdanc
e with th
e
U.S. fe
der
al se
curitie
s laws an
d the ap
plic
able r
ules a
nd regu
lation
s
of the S
ecuri
ties an
d E
xchang
e Co
mmis
sion a
nd the P
CAOB
.
We cond
ucte
d our au
dits in a
cco
rdanc
e with th
e stan
dards o
f the
PCAO
B. Th
ose s
tan
dards re
quire that we p
lan an
d pe
rfor
m the audi
t
to obta
in reas
ona
ble as
sura
nce a
bout w
heth
er the G
roup Fin
anci
al
St
ateme
nts are fre
e of materi
al mis
state
ment
, wheth
er du
e to error
or frau
d. Our a
udit
s inclu
ded p
er
formi
ng proc
ed
ures to as
se
ss the
risks o
f materia
l mis
state
ment of t
he Grou
p Fina
ncial S
tate
ment
s,
wheth
er du
e to error or fr
aud, an
d per
form
ing pro
ced
ures tha
t
resp
ond to th
ose ri
sks. S
uch p
roce
dure
s inclu
de
d examining
, on
a test b
asi
s, evid
enc
e regard
ing the am
ounts a
nd dis
clo
sures i
n the
Group F
inan
cial S
tatem
ent
s. Our a
udit
s also i
nclu
ded eval
uating
the ac
cou
nting prin
cipl
es us
ed a
nd sign
ii
cant e
stim
ates ma
de by
man
age
ment
, as well a
s evaluatin
g the overall p
res
entati
on of the
Group F
inan
cial S
tatem
ent
s. We bel
ieve that our a
udits p
rovide
a reas
ona
ble b
asis fo
r our op
inion
.
/s/ Ernst & Young LLP
We ser
ved a
s audito
rs from th
e Group’s listin
g in 200
3 to 202
1
and of th
e Group’s pred
ec
es
sor b
usin
es
ses f
rom 19
88.
London, E
ngland
2
2 Februa
ry 2
02
1
Note th
at the rep
or
t set ou
t above is i
nclu
ded fo
r the purp
os
es of
Inter
Co
ntinent
al H
otels G
roup PLC
’
s Annu
al Rep
or
t on Form 20

F
for 20
21 on
ly and d
oes n
ot form p
art o
f Inter
Conti
nent
al Hote
ls
Group P
LC’s Annua
l Repo
rt a
nd Acc
ount
s for 20
21.
141
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Independent Audi
tor’
s US R
eport
Group Financial
Statements
2020 Independent A
uditor
’
s US Report
For t
he ye
ar en
de
d 31 D
ec
em
be
r 20
21
Note
2021
$m
2020
$m
2019
$m
Reven
ue fro
m fee b
usi
ne
ss
3
1,153
823
1,510
Reven
ue fro
m owne
d, l
eas
ed a
nd ma
na
ged l
ea
se ho
tels
3
237
169
573
System
Fu
nd re
venues
928
765
1,373
Reimbursement
of costs
589
637
1,171
T
ot
al revenue
2
2,907
2,394
4,627
Co
st of s
al
es
(486)
(354)
(782)
Sys
tem Fund ex
pe
nse
s
(939)
(867)
(1,422)
Reimbursed costs
(589)
(637)
(1,171)
Admin
istra
tive exp
ens
es
(300)
(267)
(385)
Sha
re of lo
ss
es o
f ass
oc
iate
s and j
oint ve
nture
s
2
(8)
(14)
(3)
Other opera
ting
income
11
16
21
Depreciation
and amortisat
ion
2
(98)
(110)
(116)
Imp
airm
ent l
os
s on 
ina
nci
al as
set
s
–
(88)
(8)
Other imp
airment charges
6
(4)
(226)
(131)
Ope
rating proit/(los
s)
2
494
(153)
630
Op
era
ting p
roi
t/(l
os
s) anal
yse
d as:
Op
era
ting p
roi
t be
fore Sy
stem Fun
d and exc
epti
ona
l item
s
534
219
865
System
Fu
nd
(11)
(102)
(49)
Operati
ng ex
ceptional it
ems
6
(29)
(270)
(186)
494
(153)
630
Financia
l income
7
8
4
6
Financial expense
s
7
(147)
(144)
(121)
Fai
r val
ue gains
on cont
ingent pu
rchase considera
tion
25
6
13
27
Proit/(los
s) before tax
361
(280)
542
Ta
x
8
(96)
20
(156)
Pro
it
/(los
s) for t
he ye
ar fro
m co
ntin
ui
ng op
er
atio
ns
265
(260)
386
Attr
ibu
tab
le to:
Equi
ty h
old
er
s of the p
aren
t
266
(260)
385
Non-
contr
olling
int
erest
(1)
–
1
265
(260)
386
Earnings/(los
s)
per ordinar
y share:
10
Basic
145.4¢
(142.9)¢
210.4¢
Dil
uted
144.6¢
(142.9)¢
209.2¢
N
otes o
n pag
es 14
9 to 20
5 for
m an inte
gral p
ar
t of th
es
e Grou
p Fin
anc
ial S
tate
men
ts.
142
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Group Fi
nancial Stat
ements
Gr
oup F
inancial Statements
Gr
oup income stat
e
ment
Gr
oup st
a
tem
en
t o
f com
pr
ehensi
v
e inco
me
For t
he ye
ar en
de
d 31 D
ec
em
be
r 20
21
2021
$m
2020
$m
2019
$m
Pro
it
/(los
s) for t
he ye
ar
265
(260)
386
Other comprehensiv
e income
Ite
ms tha
t may be s
ubs
eq
ue
ntly re
cla
ss
i
ied to p
ro
it or l
os
s:
Los
se
s on c
as
h low h
ed
ge
s, inc
lud
ing re
late
d ta
x cha
rge of $7m (
2020: $
4m cre
dit
, 2019: $
nil
)
(69)
3
(34)
Co
st
s of he
dgi
ng
2
(6)
(6)
He
dgi
ng lo
ss
es/(g
ain
s) recla
ss
i
ie
d to in
anc
ial ex
pe
nse
s
96
(13)
38
E
xchan
ge ga
ins
/(los
se
s) on retr
ans
lati
on of fo
reign o
pe
ratio
ns, n
et of re
late
d ta
x cha
rge of $
4m
(2020: $4
m cre
dit, 2
019: $
3m cre
dit)
18
(85)
(39)
47
(101)
(41)
Ite
ms tha
t will n
ot be re
cl
as
si
ie
d to pro
it o
r los
s:
Gai
ns/(l
os
se
s) on eq
uit
y ins
trum
ent
s cla
ss
i
ied a
s fair v
alue t
hroug
h othe
r co
mpre
he
nsi
ve inc
ome
,
net o
f rela
ted t
ax ch
arge o
f $1m (
2020: $
4m cr
edi
t, 20
19: $
2m ch
arge)
14
(43)
10
Re
-m
ea
sure
men
t gain
s/(lo
ss
es) on d
e
ine
d be
ne
i
t pla
ns, i
nclu
din
g rela
ted t
ax cre
dit o
f $nil
(2020
: $1m c
redi
t, 20
19
: $1m cr
edi
t)
7
(7)
(6)
T
ax rel
ate
d to pen
sio
n co
ntrib
utio
ns
1
1
–
22
(49)
4
T
otal other
comprehensive
income/(loss
) f
or the
year
69
(150)
(37)
T
otal comprehensiv
e income
/
(loss)
for
the y
ear
334
(410)
349
Attr
ibu
tab
le to:
Equi
ty h
old
er
s of the p
aren
t
335
(410)
348
Non-
contr
olling
int
erest
(1)
–
1
334
(410)
349
N
otes o
n pag
es 14
9 to 20
5 for
m an inte
gral p
ar
t of th
es
e Grou
p Fin
anc
ial S
tate
men
ts.
143
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Group
Finan
cial
Statemen
ts
Group Financial
Statements
Equity
share
capital
$m
Capital
redemption
reserv
e
$m
Share
s
he
ld by
em
pl
oyee
share trusts
$m
Other
reserv
es
$m
Fair
value
reserv
e
$m
Cash l
ow
hedge
reserv
es
$m
Curr
ency
translation
reserv
e
$m
Retained
earnings
$m
IHG shar
e-
holders’
equity
$m
Non-
controlling
interest
$m
To
t
a
l
equity
$m
At 1 Ja
nua
ry 2021
156
10
(1)
(2,875)
11
(24)
298
568
(1,857)
8
(1,849)
Pro
it fo
r th
e year
–
–
–
–
–
–
–
266
266
(1)
265
Other comprehensiv
e income
Ite
ms tha
t may be s
ubs
eq
ue
ntly
rec
las
si
i
ed to pro
i
t or lo
ss
:
Los
se
s on c
as
h low h
ed
ge
s
–
–
–
–
–
(69)
–
–
(69)
–
(69)
Co
st
s of he
dgi
ng
–
–
–
–
–
2
–
–
2
–
2
Hedgi
ng
losses
rec
lassi
ied
to i
nan
cial ex
pe
ns
es
–
–
–
–
–
96
–
–
96
–
96
Exchange gai
ns on r
etransla
tion
of f
oreign
operations
–
–
–
–
–
–
18
–
18
–
18
–
–
–
–
–
29
18
–
47
–
47
Ite
ms tha
t will n
ot be re
cl
as
si
ie
d
to pro
it o
r los
s:
Gains on equit
y instruments
cla
ss
i
ie
d as fai
r valu
e throu
gh
other
comprehensiv
e income
–
–
–
–
14
–
–
–
14
–
14
Re-measurement
gains
on deined beneit pla
ns
–
–
–
–
–
–
–
7
7
–
7
T
ax rel
ate
d to pen
sio
n
contrib
utions
–
–
–
–
–
–
–
1
1
–
1
–
–
–
–
14
–
–
8
22
–
22
T
otal other
comprehensive
inc
om
e for t
he ye
ar
–
–
–
–
14
29
18
8
69
–
69
T
otal comprehensiv
e income
for t
he yea
r
–
–
–
–
14
29
18
274
335
(1)
334
T
rans
fer o
f trea
sur
y sh
are
s
to emp
loye
e sha
re trus
ts
–
–
(34)
–
–
–
–
34
–
–
–
Rel
ea
se of ow
n sha
resby
employ
ee shar
e trus
ts
–
–
13
–
–
–
–
(13)
–
–
–
Equi
ty-settled
share-based cos
t
–
–
–
–
–
–
–
39
39
–
39
T
ax rel
ate
d to sha
re sch
em
es
–
–
–
–
–
–
–
2
2
–
2
Exchange adj
ustments
(2)
–
–
2
–
–
–
–
–
–
–
At 31 D
ec
em
be
r 202
1
154
10
(22)
(2,873)
25
5
316
904
(1,481)
7
(1,474)
All item
s within tot
al co
mpreh
ens
ive inc
ome are s
hown ne
t of tax
.
Note
s on p
ag
es 14
9 to 20
5 form an i
nteg
ral pa
r
t of the
se G
roup F
ina
nci
al St
atem
ent
s.
144
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Group Fi
nancial Stat
ements
Gr
oup F
ina
nc
ia
l St
a
t
emen
ts
c
o
ntin
u
e
d
Gr
oup st
a
tem
en
t o
f ch
an
ges in equ
ity
Equity share
capital
$m
Capital
redemption
rese
rve
$m
Share
s
he
ld by
employee
share
trusts
$m
Othe
r
rese
rve
s
$m
Fair value
rese
rve
$m
Cash low
hedge
rese
rve
s
$m
Curre
ncy
translat
ion
rese
rve
$m
Retained
earnings
$m
IHG share-
holders’
equity
$m
Non-
controllin
g
intere
st
$m
To
t
a
l
equity
$m
At 1 Ja
nua
ry 2
020
151
10
(5)
(2,870)
57
(6)
381
809
(1,473)
8
(1,465)
Lo
ss fo
r the ye
ar
–
–
–
–
–
–
–
(260)
(260)
–
(260)
Other comprehensiv
e income
Ite
ms tha
t may be s
ubs
eq
ue
ntly
rec
las
si
i
ed to pro
i
t or lo
ss
:
Los
se
s on c
as
h low h
ed
ge
s
–
–
–
–
–
3
–
–
3
–
3
Co
st
s of he
dgi
ng
–
–
–
–
–
(6)
–
–
(6)
–
(6)
Hed
ging gains reclass
iied
to i
nan
cial ex
pe
ns
es
–
–
–
–
–
(13)
–
–
(13)
–
(13)
Exchange losses on
retr
anslation
of f
oreign
operations
–
–
–
–
–
(2)
(83)
–
(85)
–
(85)
–
–
–
–
–
(18)
(83)
–
(101)
–
(101)
Ite
ms tha
t will n
ot be re
cl
as
si
ie
d
to pro
it o
r los
s:
Los
se
s on e
qui
ty in
str
ume
nts
cla
ss
i
ie
d as fai
r valu
e throu
gh
other
comprehensiv
e income
–
–
–
–
(43)
–
–
–
(43)
–
(43)
Gains on equit
y instruments
tran
sfe
rred to re
tai
ne
d earn
ing
s
on di
sp
os
al
–
–
–
–
(3)
–
–
3
–
–
–
Re-measurement
losses
on deined beneit pla
ns
–
–
–
–
–
–
–
(7)
(7)
–
(7)
T
ax rel
ate
d to pen
sio
n
contrib
utions
–
–
–
–
–
–
–
1
1
–
1
–
–
–
–
(46)
–
–
(3)
(49)
–
(49)
T
otal other
comprehensive
lo
ss
for t
he yea
r
–
–
–
–
(46)
(18)
(83)
(3)
(150)
–
(150)
T
otal comprehensiv
e loss
for t
he yea
r
–
–
–
–
(46)
(18)
(83)
(263)
(410)
–
(410)
T
rans
fer o
f trea
sur
y sh
are
s
to emp
loye
e sha
re trus
ts
–
–
(14)
–
–
–
–
14
–
–
–
Rel
ea
se of ow
n sha
resby
employ
ee shar
e trus
ts
–
–
18
–
–
–
–
(18)
–
–
–
Equi
ty-settled
share-based cos
t,
net o
f $3
m rec
las
si
ic
ati
on to
cash-sett
led
aw
ar
ds
–
–
–
–
–
–
–
27
27
–
27
T
ax rel
ate
d to sha
re sch
em
es
–
–
–
–
–
–
–
(1)
(1)
–
(1)
Exchange adj
ustments
5
–
–
(5)
–
–
–
–
–
–
–
At
31 December 2020
156
10
(1)
(2,875)
11
(24)
298
568
(1,857)
8
(1,849)
All item
s within tot
al co
mpreh
ens
ive los
s are sh
own net of t
ax.
Note
s on p
ag
es 14
9 to 20
5 form an i
nteg
ral pa
r
t of the
se G
roup F
ina
nci
al St
atem
ent
s.
145
IHG
|
Annua
l Repo
rt a
nd Form 20

F 202
1
Group
Finan
cial
Statemen
ts
Group Financial
Statements
Equity share
capital
$m
Capital
redemption
rese
rve
$m
Share
s
he
ld by
employee
share
trusts
$m
Othe
r
rese
rve
s
$m
Fair value
rese
rve
$m
Cash low
hedge
rese
rve
s
$m
Curre
ncy
translat
ion
rese
rve
$m
Retained
earnings
$m
IHG share-
holders’
equity
$m
Non-
controllin
g
intere
st
$m
To
t
a
l
equity
$m
At 1
January 2019
146
10
(4)
(2,865)
47
(4)
420
1,111
(1,139)
8
(1,131)
Pro
it fo
r th
e year
–
–
–
–
–
–
–
385
385
1
386
Other comprehensiv
e income
Ite
ms tha
t may be s
ubs
eq
ue
ntly
rec
las
si
i
ed to pro
i
t or lo
ss
:
Los
se
s on c
as
h low h
ed
ge
s
–
–
–
–
–
(34)
–
–
(34)
–
(34)
Co
st
s of he
dgi
ng
–
–
–
–
–
(6)
–
–
(6)
–
(6)
Hedgi
ng
losses
rec
lassi
ied
to i
nan
cial ex
pe
ns
es
–
–
–
–
–
38
–
–
38
–
38
Exchange losses on
retr
anslation
of f
oreign
operations
–
–
–
–
–
–
(39)
–
(39)
–
(39)
–
–
–
–
–
(2)
(39)
–
(41)
–
(41)
Ite
ms tha
t will n
ot be re
cl
as
si
ie
d
to pro
it o
r los
s:
Gains on equit
y instruments
cla
ss
i
ie
d as fai
r valu
e throu
gh
other
comprehensiv
e income
–
–
–
–
10
–
–
–
10
–
10
Re-measurement
losses on
deined beneit plans
–
–
–
–
–
–
–
(6)
(6)
–
(6)
–
–
–
–
10
–
–
(6)
4
–
4
T
otal other
comprehensive
inc
om
e/(lo
ss) fo
r the ye
ar
–
–
–
–
10
(2)
(39)
(6)
(37)
–
(37)
T
otal comprehensiv
e income
for t
he yea
r
–
–
–
–
10
(2)
(39)
379
348
1
349
T
rans
fer o
f trea
sur
y sh
are
s
to emp
loye
e sha
re trus
ts
–
–
(19)
–
–
–
–
19
–
–
–
Purc
has
e of own s
ha
resby
employ
ee shar
e trus
ts
–
–
(5)
–
–
–
–
–
(5)
–
(5)
Rel
ea
se of ow
n sha
resby
employ
ee shar
e trus
ts
–
–
23
–
–
–
–
(23)
–
–
–
Equi
ty-settled
share-based cos
t
–
–
–
–
–
–
–
41
41
–
41
T
ax rel
ate
d to sha
re sch
em
es
–
–
–
–
–
–
–
4
4
–
4
Equity divide
nds paid
–
–
–
–
–
–
–
(721)
(721)
(1)
(722)
T
ransaction