Ihg Annual Speech

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Christmas Dinner Speech Stockholder Group: Shareholders and Investors| 2012
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“Our focus is on driving high-quality growth. We will achieve this by further strengthening our existing brands, launching new brands and ensuring our hotels are known for industry-leading customer experiences delivered by talented people and best-in-class delivery systems”. Richard Solomons Chief Executive| Financial Statement| Word Count: 2190

Slide 1: Introduction
Ladies and Gentlemen, shareholders and investors…From my side, I would like to thank you for attending our Annual end of year Financial Meeting here in London. It is a great pleasure to greet you all and welcome you to our Shareholder’s Meeting in which I will describe our strategies and share with you our financial performance. And yet another year has flown by, and we are wondering where we would have been if Mr. William Bass had not established in 1777 the Bass Brewery from which IHG started to grow decade after decade becoming the largest hotel company in the world. From a pint to more than 4,500 hotels worldwide.

It is undeniable that today, the competitive environment around the globe, remains extremely challenging due to its relentless evolution and the emerging of new economies. However great companies do not stand still; we create strong brands which are preferred anywhere in the world and we constantly look on how we can use their strengths to outperform the competition in both mature and growth markets. Our bookings remain encouraging and I am confident that IHG is well positioned within the hotel industry and will continue to outperform its competitors.

Slide 2: “Key elements for a successful strategy”
I will not bore you my fellow shareholders on what our strategy is, however I would like to highlight to you our key points that helped us to achieve leadership in the lodging industry: 1. Simple-agreed long term objectives

2. Deep understanding of the competitive landscape
3. Objective appraisal of the firm’s internal resources and capabilities 4. Effective implementation
5. Commitment
6. Adaptive Behaviour

Slide 3: Global Economic Trends& Key number of IHG
The storm has passed but there are still a few occasional showers in the forecast. Mostly sunny skies ahead with clouds and overcast skies expected in some areas. No, we are not talking about the weather…we are looking at the current and future prospects of growth in the worldwide hotel industry.  Despite the largest economic downturn that the industry has ever seen during 2008/09, hotel developments continued to progress and 432,000 new rooms were injected into global supply by both independent hotels and groups in this year. In the years to come, we are expecting a modest economic growth in our mature markets despite the fact that in Europe, the economy is more likely to be stagnant with a negative GDP growth as it relies upon the current debt crisis in the Eurozone, the slowdown of the US economy and the present crisis in North Africa. On the other hand, we will see a high growth in emerging markets such as China (despite the current slip) in which IHG is focusing on in the long term. The economic scenario represents a challenge for us but from the screen you can see how IHG has never stopped to grow, maintaining and expanding our leadership position globally with 4,573 hotels, 672,252 rooms globally and 1,042 hotels and 165,945 rooms in the development pipeline. Ladies and Gentlemen, we have seen an increase in revenue (1%) from $467m to $473m in this year’s 3rd quarter and delivered a higher operating profit of 9% which has increased by $14m from the previous year (2011: $153m > $167m: 2012).

Slide 4: IHG Global Brands
Key contributors to our continuously success is our portfolio of global brands and IHG’s innovative new brands exclusively tailored for new customers such as EVEN Hotels in the US and HUALUXE Hotels & Resorts in China of which I shall come...
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