Key performance indicators (KPIs)

We measure our performance through a holistic set of carefully selected KPIs to monitor our success in
achieving our strategy and the progress of our Group to deliver high-quality growth. The KPIs are organised
around the elements of our strategy – our Winning Model and Targeted Portfolio, and Disciplined Execution.

Winning Model and Targeted Portfolio

KPIs 2013 progress 2014 priorities
Net rooms supply2 • IHG System size of 686,873 rooms (4,697 hotels) reflecting • Accelerate growth strategies in
1.6% net IHG System size growth. The slower growth rate priority markets and key locations in
2013 686,873 reflects a higher level of removals to maintain the quality of agreed scale markets and continue
2012 675,982 our estate, including 17 hotels for which significant liquidated to leverage scale.
2011 658,348 damages totalling $46m were received. • Support growth of our new brands EVEN
• Completed disposal of our leasehold interest in the Hotels and HUALUXE Hotels & Resorts,
InterContinental London Park Lane and agreed to dispose of opening our first hotels.
Growth in fee revenues2 80% of our interest in the InterContinental New York Barclay,
retaining 20% in a joint venture, and entered into long-term
2013 4.3% management contracts on both hotels.
2012 6.8% • Pipeline of 180,461 rooms (1,120 hotels), including 21 hotels
2011 5.7% in the pipeline for the HUALUXE brand and five hotels in the
At constant currency pipeline for the EVEN brand (three of which are owned).
• Lower growth in fee revenues compared to 2012 reflects a
combination of lower RevPAR growth and lower net IHG
System size growth in 2013.
• An increasing number of open hotels in developing markets,
which drive incremental fees at a lower rate, also contributed
to lower growth in fee revenues.

Total gross revenue • Total gross revenue from hotels in IHG’s System – $21.6bn, • Continue to strengthen IHG’s revenue
up 2%. delivery systems to deliver profitable
2013 $21.6bn demand to hotels.
• Loyalty programme relaunched to IHG Rewards Club offering
2012 $21.2bn enhanced benefits for members, including free internet access • Continue to drive loyalty to our
2011 $20.2bn across our hotels globally – driving a 10 percentage point portfolio of brands, driving awareness
increase in awareness of IHG as a brand family. of IHG Rewards Club and leveraging
Actual $bn
• Enrolled 6m new members (up 8% on 2012) to IHG Rewards this across our brands and regions.
System contribution Club, taking the total to 77.4m members. • Continue to drive adoption and impact
to revenue1 of our performance tools, systems and
2013 69% processes amongst our owners.
2012 69% • Continue with investment in technology
systems and platforms.
2011 68%

Employee Engagement • Continued to deliver against our people strategy, increasing • Strengthen our approach to developing
survey scores our employee engagement by 3.1% and recognised externally leaders and invest in tools and training
as an employer of choice (see page 23). that build leadership capabilities.
2013 81.7%
• Launched bespoke, country-specific careers web pages and/or • Continue to build a winning culture
2012 78.6% websites in India, Russia and Greater China to continue our aim through strong leadership and
2011 75.8% to be employer of choice. performance management.
• Continue to strengthen our talent
pipeline to meet our growth ambitions.

Global RevPAR growth1, 2 • Growth in global RevPAR has slowed in 2013, reflecting slower • Continue to strengthen the quality and
growth in The Americas and IHG’s predominantly midscale consistency of the brand experience,
2013 3.8% focus, and more significant slow down in Greater China due delivering guest journeys that are
2012 5.2% to industry-wide challenges (see pages 12 and 13). differentiated by brand.
2011 6.2% • Recorded improvements in guest satisfaction scores in • Continue to invest in building long-term
Comparable hotels, every region, for all of our brands and received external brand preference in light of our guest
constant $ recognition through awards (see page 23). occasion segmentation and the 2014
• Continued with the repositioning of the Crowne Plaza IHG Trends Report (see page 20).
Guest HeartBeat1 brand and refreshed marketing messaging for Holiday Inn • Continue to empower our frontline teams
2013 82.91% and Holiday Inn Express to better reflect the differentiated with the tools and training to consistently
brand propositions and drive brand consideration. deliver great guest experiences that build
2012 82.36%
• As part of simplifying and clarifying our standards for all of brand preference.
2011 Not applicable
the brands, in 2013, we refreshed the Holiday Inn Express • Continue to progress with our standards
Standards’ manual ready for launch in January 2014. refresh across the brands.
• Launched two General Manager training programmes to • Support the first openings of our new
assist with General Manager development to deliver on the hotels for the EVEN Hotels and
brand promise (see page 26). HUALUXE Hotels & Resorts brands.

38 IHG Annual Report and Form 20-F 2013

 KPIs used to assess performance measures for

OVERVIEW
remuneration plans:
1 Annual incentive plan (Annual Performance Plan) For more information see Directors’ Remuneration Report
pages 74 to 97.
2 Long-term incentive plan (Long Term Incentive Plan)

Disciplined Execution
KPIs 2013 progress 2014 priorities
Fee margins1 • Group fee margins of 43.2%, up 1.3 percentage points on 2012, • Continue to focus on sustainable

STRATEGIC REPORT
with scale benefits and cost efficiencies more than offsetting fee margin progression over the
2013 43.2% increased investment for future growth. medium-term.
2012 41.9%*
2011 39.5%*
*Restated for IAS19R
of Employee Benefits

Number of people • Opened a further 144 IHG Academy programmes, taking the • Continue to expand the IHG Academy
participating in IHG total to 301, with 6,391 participants in 2013 helping us to build throughout our hotel estate making
a strong pipeline of talent for the future. sure the programmes deliver positive
Academy programmes
and transformational results for
2013 6,391 participants and IHG.

GOVERNANCE
2012 Not applicable • Provide skills and improved
2011 Not applicable employability to a total of 20,000
people via IHG Academy over the
five-year period (2013-2017).

Value of monetary
donations and in-kind
support to communities
by IHG, including funds
deployed through IHG
Shelter in a Storm
Programme
• Contributed a total of $1.92m in 2013 to communities through
monetary donations and in-kind support, including funds
deployed through the IHG Shelter in a Storm Programme.
• $1.2m raised for the IHG Shelter Fund.
• Responded to 15 disasters in 8 countries, including super
typhoon Haiyan in the Philippines, floods in Jakarta,
Buenos Aires, Canada and Mexico, tornadoes in mid-west
America and wildfires in Arizona, by allocating funds to help
• Continue to increase awareness of,
and engagement with, the IHG Shelter
in a Storm Programme, ensuring our
hotels are prepared for disaster and
able to respond quickly and effectively
to help the local community and
employees when needed.
• Contribute a total of $10m over a

FINANCIAL STATEMENTS
GROUP
with financial support, vital supplies and accommodation. five-year period (2013-2017) to
2013 $1.92m communities through monetary
2012
2012 Not applicable donations and in-kind support,
2011
2011 Not applicable including funds deployed through the
IHG Shelter in a Storm Programme.

Carbon footprint per • Reduced carbon footprint per occupied room by 31.2kgCO2e • Reduce carbon footprint per occupied
occupied room (reduction of 2.4% on 2012 baseline) across our entire estate room by 12% across our entire estate
• Carbon Disclosure Project disclosure rating of 85B (over a five-year period (2013-2017)
2013 31.2 KgCO²e using 2012 baseline).
(the joint highest-scoring hotel company in the FTSE 350,
2012 32 KgCO²e Standard & Poor’s 500 and Global 500). • Continue to drive quality of use of IHG
2011 Not applicable Green Engage to reduce impact on the
environment, enable cost savings and
FINANCIAL STATEMENTS
PARENT COMPANY
drive revenue.

Water use per occupied • Reduced water use per occupied room by 0.56m3 (reduction of • Reduce water use per occupied room
room in water stressed 4.6% on 2012 baseline) in water-stressed areas. by 12% in water-stressed areas across
our estate (over a five-year period
areas
(2013-2017) using 2012 baseline).
2013 0.56m³
2012 0.58m³
2011 Not applicable

Our regional priorities are set out on pages 42, 44, 46 and 48.
ADDITIONAL INFORMATION

For definitions of each of the above KPIs see the Glossary on pages 186 and 187.

Strategic Report  39