XML 354 R37.htm IDEA: XBRL DOCUMENT
v3.22.4

Share-based payments | 12 Months Ended
--- | ---
Dec. 31, 2022
Text Block [Abstract] |
Share-based payments | 27. Share-based payments Annual Performance Plan Under the IHG Annual Performance Plan (‘APP’), eligible employees (including Executive Directors) receive all or part of their bonus in the form of deferred shares and/or receive one-off awards of shares. Deferred shares in relation to bonus plans are released on the third anniversary of the award date. Awards under the APP are conditional on the participants remaining in the employment of a participating company or leaving for a qualifying reason as per the plan rules. The grant of deferred shares under the APP is at the discretion of the Remuneration Committee. The number of shares is calculated by dividing a specific percentage of the participant’s annual performance-related award by the average of the middle market quoted prices on the three consecutive business days following the announcement of the Group’s results for the relevant financial year. Long Term Incentive Plan The Long Term Incentive Plan (‘LTIP’) allows Executive Directors and eligible employees to receive conditional share awards, which normally have a vesting period of three years. In addition, certain awards to Executive Directors are subject to a further two-year holding period after vesting. Performance-related awards: Executive Directors and other eligible employees are granted share awards containing performance-based vesting conditions set by the Remuneration Committee, which are normally measured over the vesting period. Restricted stock units: Awards to eligible employees are granted subject to continued employment. Awards are normally made annually and, except in exceptional circumstances, will not exceed 3.5 times salary for eligible employees under the current plan rules. Colleague Share Plan The Colleague Share Plan gives eligible corporate employees the opportunity to purchase shares up to an annual limit. After the end of the plan year, the participant will be awarded the right to receive one matching share for every purchased share (subject to continued employment). If the participant holds the purchased shares until the second anniversary of the end of the plan year, the conditional right to matching shares vests. The total fair value of the Colleague Share Plan is not significant.
|  | More detailed information on the performance measures for awards to Executive Directors is shown in the Directors’ Remuneration Report on pages 114 to 136.
Costs relating to share-based payment transactions
|  |  |  |  | 2022 $m |  |  |  |  |  | 2021 $m |  |  |  |  |  | 2020 $m |
Equity-settled |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating profit before System Fund and exceptional items |  |  |  |  |  |  | 28 |  |  |  |  |  |  |  | 26 |  |  |  |  |  |  |  | 19 |
System Fund |  |  |  |  |  |  | 16 |  |  |  |  |  |  |  | 13 |  |  |  |  |  |  |  | 11 |
|  |  |  |  |  |  | 44 |  |  |  |  |  |  |  | 39 |  |  |  |  |  |  |  | 30 |
Cash-settled |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating profit before System Fund and exceptional items |  |  |  |  |  |  | 2 |  |  |  |  |  |  |  | 2 |  |  |  |  |  |  |  | 2 |
|  |  |  |  |  |  | 46 |  |  |  |  |  |  |  | 41 |  |  |  |  |  |  |  | 32 |
No consideration was received in respect of ordinary shares issued under option schemes during 2022, 2021 or 2020. Option pricing models, assumptions and movements in awards outstanding
|  |  |  |  | APP |  |  |  |  |  | LTIP |
|  |  |  |  | Binomial valuation model |  |  |  |  |  | Monte Carlo Simulation, Binomial and Finnerty valuation models |
Option pricing models and assumptions |  |  |  |  |  |  | 2022 |  |  |  |  |  |  |  | 2021 |  |  |  |  |  |  |  | 2020 |  |  |  |  |  |  |  | 2022 |  |  |  |  |  |  |  | 2021 |  |  |  |  |  |  |  | 2020 |
Weighted average share price (pence) |  |  |  |  |  |  | 5,018.3 |  |  |  |  |  |  |  | 5,009.0 |  |  |  |  |  |  |  | 3,771.0 |  |  |  |  |  |  |  | 4,875.0 |  |  |  |  |  |  |  | 4,980.0 |  |  |  |  |  |  |  | 3,450.0 |
Expected dividend yield |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2.29% to 2.67% |  |  |  |  |  |  |  | 1.11% |  |  |  |  |  |  |  | 1.48% |
Risk-free interest rate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.29% |  |  |  |  |  |  |  | 0.09% |  |  |  |  |  |  |  | 0.02% |
Volatility a |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 35% to 45% |  |  |  |  |  |  |  | 43% |  |  |  |  |  |  |  | 33% |
Term (years) |  |  |  |  |  |  | 1.7 |  |  |  |  |  |  |  | 1.5 |  |  |  |  |  |  |  | 3.0 |  |  |  |  |  |  |  | 3.0 |  |  |  |  |  |  |  | 3.0 |  |  |  |  |  |  |  | 3.0 |
a | The expected volatility was determined by calculating the historical volatility of the Company’s share price corresponding to the expected life of the share award.
|  |  |  |  | APP |  |  |  |  |  |  |  |  |  |  |  | LTIP |
Number of share awards (thousands) |  |  |  |  |  |  |  |  |  |  | Performance-related awards |  |  |  |  |  | Restricted stock units |
Outstanding at 1 January 2020 |  |  |  |  |  |  | 496 |  |  |  |  |  |  |  | 695 |  |  |  |  |  |  |  | 1,275 |
Granted |  |  |  |  |  |  | 138 |  |  |  |  |  |  |  | 383 |  |  |  |  |  |  |  | 696 |
Vested |  |  |  |  |  |  | (188 | ) |  |  |  |  |  |  | (179 | ) |  |  |  |  |  |  | (413 | )
Lapsed or cancelled |  |  |  |  |  |  | (33 | ) |  |  |  |  |  |  | (85 | ) |  |  |  |  |  |  | (137 | )
Outstanding at 31 December 2020 |  |  |  |  |  |  | 413 |  |  |  |  |  |  |  | 814 |  |  |  |  |  |  |  | 1,421 |
Granted |  |  |  |  |  |  | 90 |  |  |  |  |  |  |  | 281 |  |  |  |  |  |  |  | 442 |
Vested |  |  |  |  |  |  | (147 | ) |  |  |  |  |  |  | (70 | ) |  |  |  |  |  |  | (391 | )
Lapsed or cancelled |  |  |  |  |  |  | (8 | ) |  |  |  |  |  |  | (153 | ) |  |  |  |  |  |  | (122 | )
Outstanding at 31 December 2021 |  |  |  |  |  |  | 348 |  |  |  |  |  |  |  | 872 |  |  |  |  |  |  |  | 1,350 |
Granted |  |  |  |  |  |  | 236 |  |  |  |  |  |  |  | 323 |  |  |  |  |  |  |  | 706 |
Vested |  |  |  |  |  |  | (254 | ) |  |  |  |  |  |  | (23 | ) |  |  |  |  |  |  | (391 | )
Lapsed or cancelled |  |  |  |  |  |  | (9 | ) |  |  |  |  |  |  | (239 | ) |  |  |  |  |  |  | (90 | )
Outstanding at 31 December 2022 |  |  |  |  |  |  | 321 |  |  |  |  |  |  |  | 933 |  |  |  |  |  |  |  | 1,575 |
Fair value of awards granted during the year (cents) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2022 |  |  |  |  |  |  | 6,180.2 |  |  |  |  |  |  |  | 3,770.0 |  |  |  |  |  |  |  | 5,656.4 |
2021 |  |  |  |  |  |  | 6,888.5 |  |  |  |  |  |  |  | 4,676.3 |  |  |  |  |  |  |  | 6,559.7 |
2020 |  |  |  |  |  |  | 4,965.9 |  |  |  |  |  |  |  | 2,473.5 |  |  |  |  |  |  |  | 4,397.5 |
Weighted average remaining contract life (years) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
At 31 December 2022 |  |  |  |  |  |  | 1.0 |  |  |  |  |  |  |  | 1.1 |  |  |  |  |  |  |  | 1.2 |
At 31 December 2021 |  |  |  |  |  |  | 0.5 |  |  |  |  |  |  |  | 1.2 |  |  |  |  |  |  |  | 1.2 |
At 31 December 2020 |  |  |  |  |  |  | 1.0 |  |  |  |  |  |  |  | 1.4 |  |  |  |  |  |  |  | 1.3 |
The above awards do not vest until the performance and service conditions have been met. The weighted average share price at the date of exercise for share awards vested during the year was 4,950.5p (2021: 5,081.2p). The closing share price on 31 December 2022 was 4,744.0p (31 December 2021: 4,781.0p) and the range during the year was 4,193.0p to 5,338.0p (2021: 4,399.0p to 5,336.0p).

X
- Definition The entire disclosure for share-based payment arrangements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 2 -IssueDate 2022-03-24 -Paragraph 44 -URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=2&code=ifrs-tx-2022-en-r&anchor=para_44&doctype=Standard -URIDate 2022-03-24 + Details
Name: | ifrs-full_DisclosureOfSharebasedPaymentArrangementsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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