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Segmental information | 12 Months Ended
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Dec. 31, 2021
Text Block [Abstract] |
Segmental information | 2. Segmental information The Group has four reportable segments reflecting its geographical regions (Americas, EMEAA, Greater China) and its Central functions. Central functions include technology, sales and marketing, finance, human resources and corporate services; Central revenue arises principally from technology fee income. No operating segments have been aggregated to form these reportable segments. Management monitors the operating results of these reportable segments for the purpose of making decisions about resource allocation and performance assessment. Each of the geographical regions is led by its own Chief Executive Officer who reports to the Group Chief Executive Officer. The System Fund is not managed to generate a profit or loss for IHG over the longer term. As such, its results are not regularly reviewed by the Chief Operating Decision Maker (‘CODM’) and it does not constitute an operating segment under IFRS 8 ‘Operating Segments’. Similarly, reimbursements of costs are not reported to the CODM and so are not included within the reportable segments. Segmental performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the Group Financial Statements, excluding System Fund and exceptional items. Group financing activities, fair value gains or losses on contingent purchase consideration and income taxes are managed on a Group basis and are not allocated to reportable segments. Revenue
|  |  |  |  | 2021 |  |  |  |  |  | 2020 |  |  |  |  |  | 2019 |
Year ended 31 December |  |  |  |  | $m |  |  |  |  |  | $m |  |  |  |  |  | $m |
Americas |  |  |  |  |  |  | 774 |  |  |  |  |  |  |  | 512 |  |  |  |  |  |  |  | 1,040 |
EMEAA |  |  |  |  |  |  | 303 |  |  |  |  |  |  |  | 221 |  |  |  |  |  |  |  | 723 |
Greater China |  |  |  |  |  |  | 116 |  |  |  |  |  |  |  | 77 |  |  |  |  |  |  |  | 135 |
Central |  |  |  |  |  |  | 197 |  |  |  |  |  |  |  | 182 |  |  |  |  |  |  |  | 185 |
Revenue from reportable segments |  |  |  |  |  |  | 1,390 |  |  |  |  |  |  |  | 992 |  |  |  |  |  |  |  | 2,083 |
System Fund revenues |  |  |  |  |  |  | 928 |  |  |  |  |  |  |  | 765 |  |  |  |  |  |  |  | 1,373 |
Reimbursement of costs |  |  |  |  |  |  | 589 |  |  |  |  |  |  |  | 637 |  |  |  |  |  |  |  | 1,171 |
Total revenue |  |  |  |  |  |  | 2,907 |  |  |  |  |  |  |  | 2,394 |  |  |  |  |  |  |  | 4,627 |
Profit/(loss)
|  |  |  |  | 2021 |  |  |  |  |  | 2020 |  |  |  |  |  | 2019 |
Year ended 31 December |  |  |  |  | $m |  |  |  |  |  | $m |  |  |  |  |  | $m |
Americas |  |  |  |  |  |  | 559 |  |  |  |  |  |  |  | 296 |  |  |  |  |  |  |  | 700 |
EMEAA |  |  |  |  |  |  | 5 |  |  |  |  |  |  |  | (50 | ) |  |  |  |  |  |  | 217 |
Greater China |  |  |  |  |  |  | 58 |  |  |  |  |  |  |  | 35 |  |  |  |  |  |  |  | 73 |
Central |  |  |  |  |  |  | (88 | ) |  |  |  |  |  |  | (62 | ) |  |  |  |  |  |  | (125 | )
Operating profit from reportable segments |  |  |  |  |  |  | 534 |  |  |  |  |  |  |  | 219 |  |  |  |  |  |  |  | 865 |
System Fund |  |  |  |  |  |  | (11 | ) |  |  |  |  |  |  | (102 | ) |  |  |  |  |  |  | (49 | )
Operating exceptional items (note 6) |  |  |  |  |  |  | (29 | ) |  |  |  |  |  |  | (270 | ) |  |  |  |  |  |  | (186 | )
Operating profit/(loss) |  |  |  |  |  |  | 494 |  |  |  |  |  |  |  | (153 | ) |  |  |  |  |  |  | 630 |
Net financial expenses |  |  |  |  |  |  | (139 | ) |  |  |  |  |  |  | (140 | ) |  |  |  |  |  |  | (115 | )
Fair value gains on contingent purchase consideration |  |  |  |  |  |  | 6 |  |  |  |  |  |  |  | 13 |  |  |  |  |  |  |  | 27 |
Profit/(loss) before tax |  |  |  |  |  |  | 361 |  |  |  |  |  |  |  | (280 | ) |  |  |  |  |  |  | 542 |
Tax |  |  |  |  |  |  | (96 | ) |  |  |  |  |  |  | 20 |  |  |  |  |  |  |  | (156 | )
Profit/(loss) for the year |  |  |  |  |  |  | 265 |  |  |  |  |  |  |  | (260 | ) |  |  |  |  |  |  | 386 |
Operating profit from reportable segments includes the following, which are included in other operating income in the Group income statement:
• |  | In 2021, $5m government grant income relating to the EMEAA region;
• |  | In 2020, $4m business interruption insurance proceeds and $4m favourable litigation settlement, both in the Americas region, and $3m gain on disposal of hotel assets in the EMEAA region ; and
• |  | In 2019, $10m business interruption insurance proceeds relating to the Americas region.
Non-cash items included within operating profit from reportable segments
Year ended 31 December 2021 |  |  |  | Americas $m |  |  |  | EMEAA $m |  |  |  | Greater China $m |  |  |  | Central $m |  |  |  | Group $m
Depreciation and amortisation a |  |  |  | 30 |  |  |  | 18 |  |  |  | 6 |  |  |  | 44 |  |  |  | 98
Equity-settled share-based payments cost |  |  |  | 8 |  |  |  | 4 |  |  |  | 3 |  |  |  | 11 |  |  |  | 26
Share of losses of associates |  |  |  | 7 |  |  |  | 1 |  |  |  | – |  |  |  | – |  |  |  | 8
Year ended 31 December 2020 |  |  |  | Americas $m |  |  |  | EMEAA $m |  |  |  | Greater China $m |  |  |  | Central $m |  |  |  | Group $m
Depreciation and amortisation a |  |  |  | 41 |  |  |  | 21 |  |  |  | 6 |  |  |  | 42 |  |  |  | 110
Equity-settled share-based payments cost |  |  |  | 7 |  |  |  | 3 |  |  |  | 2 |  |  |  | 7 |  |  |  | 19
Share of losses of associates and joint ventures |  |  |  | 14 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 14
Year ended 31 December 2019 |  |  |  | Americas $m |  |  |  | EMEAA $m |  |  |  | Greater China $m |  |  |  | Central $m |  |  |  | Group $m
Depreciation and amortisation a |  |  |  | 44 |  |  |  | 25 |  |  |  | 5 |  |  |  | 42 |  |  |  | 116
Equity-settled share-based payments cost |  |  |  | 9 |  |  |  | 4 |  |  |  | 2 |  |  |  | 13 |  |  |  | 28
Share of losses/(gains) of associates and joint ventures |  |  |  | 9 |  |  |  | (6) |  |  |  | – |  |  |  | – |  |  |  | 3
a | Included in the $98m (2020: $110m, 2019: $116m) of depreciation and amortisation is $20m (2020: $29m, 2019: $32m) relating to cost of sales in owned, leased and managed lease hotels, and $78m (2020: $81m, 2019: $84m) relating to other assets. A further $94m (2020: $62m, 2019: $54m) of depreciation and amortisation was recorded within System Fund expenses.
Capital expenditure
Year ended 31 December 2021 |  |  |  | Americas $m |  |  |  | EMEAA $m |  |  |  | Greater China $m |  |  |  | Central $m |  |  |  | Group $m
Capital expenditure per management reporting |  |  |  | 35 |  |  |  | 25 |  |  |  | 1 |  |  |  | 39 |  |  |  | 100
Contract acquisition costs |  |  |  | (32) |  |  |  | (10) |  |  |  | (1) |  |  |  | – |  |  |  | (43)
Timing differences and other adjustments |  |  |  | 3 |  |  |  | (5) |  |  |  | – |  |  |  | 4 |  |  |  | 2
Additions per the Group Financial Statements |  |  |  | 6 |  |  |  | 10 |  |  |  | – |  |  |  | 43 |  |  |  | 59
Comprising additions to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill and other intangible assets |  |  |  | 1 |  |  |  | – |  |  |  | – |  |  |  | 32 |  |  |  | 33
Property, plant and equipment |  |  |  | 1 |  |  |  | 5 |  |  |  | – |  |  |  | 11 |  |  |  | 17
Investment in associates and joint ventures |  |  |  | 4 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 4
Other financial assets |  |  |  | – |  |  |  | 5 |  |  |  | – |  |  |  | – |  |  |  | 5
|  |  |  | 6 |  |  |  | 10 |  |  |  | – |  |  |  | 43 |  |  |  | 59
Year ended 31 December 2020 |  |  |  | Americas $m |  |  |  | EMEAA $m |  |  |  | Greater China $m |  |  |  | Central $m |  |  |  | Group $m
Capital expenditure per management reporting |  |  |  | 46 |  |  |  | 44 |  |  |  | 2 |  |  |  | 56 |  |  |  | 148
Contract acquisition costs |  |  |  | (33) |  |  |  | (29) |  |  |  | (2) |  |  |  | – |  |  |  | (64)
Timing differences and other adjustments |  |  |  | 17 |  |  |  | 4 |  |  |  | – |  |  |  | (1) |  |  |  | 20
Additions per the Group Financial Statements |  |  |  | 30 |  |  |  | 19 |  |  |  | – |  |  |  | 55 |  |  |  | 104
Comprising additions to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill and other intangible assets |  |  |  | 1 |  |  |  | 1 |  |  |  | – |  |  |  | 50 |  |  |  | 52
Property, plant and equipment |  |  |  | 12 |  |  |  | 13 |  |  |  | – |  |  |  | 5 |  |  |  | 30
Investment in associates and joint ventures |  |  |  | 17 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 17
Other financial assets |  |  |  | – |  |  |  | 5 |  |  |  | – |  |  |  | – |  |  |  | 5
|  |  |  | 30 |  |  |  | 19 |  |  |  | – |  |  |  | 55 |  |  |  | 104
Geographical information
Year ended 31 December |  |  |  | 2021 $m |  |  |  |  | 2020 $m |  |  |  |  | 2019 $m |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  |  |  | 142 |  |  |  |  |  | 77 |  |  |  |  |  | 265 |
United States |  |  |  |  | 1,263 |  |  |  |  |  | 1,067 |  |  |  |  |  | 1,957 |
Rest of World |  |  |  |  | 574 |  |  |  |  |  | 485 |  |  |  |  |  | 1,032 |
|  |  |  |  | 1,979 |  |  |  |  |  | 1,629 |  |  |  |  |  | 3,254 |
System Fund (note 33) |  |  |  |  | 928 |  |  |  |  |  | 765 |  |  |  |  |  | 1,373 |
|  |  |  |  | 2,907 |  |  |  |  |  | 2,394 |  |  |  |  |  | 4,627 |
For the purposes of the above table, fee business, owned, leased and managed lease and reimbursable revenues are determined according to the location of the hotel and other revenue is attributed to the country of origin. In addition to the United Kingdom, revenue relating to an individual country is separately disclosed when it represents 10% or more of total revenue. System Fund revenues are not included in the geographical analysis as the Group does not monitor the Fund’s revenue by location of the hotel, or in the case of the loyalty programme, according to the location where members consume their rewards.
31 December |  |  |  | 2021 $m |  |  |  |  | 2020 $m |
Non-current assets |  |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  |  |  | 64 |  |  |  |  |  | 72 |
United States |  |  |  |  | 1,346 |  |  |  |  |  | 1,487 |
Rest of World |  |  |  |  | 661 |  |  |  |  |  | 700 |
|  |  |  |  | 2,071 |  |  |  |  |  | 2,259 |
For the purposes of the above table, non-current assets comprise goodwill and other intangible assets, property, plant and equipment, right-of-use assets, investments in associates and joint ventures, non-current contract costs and non-current contract assets. In addition to the United Kingdom, non-current assets relating to an individual country are separately disclosed when they represent 10% or more of total non-current assets, as defined above.

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