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IHG HOTELS & RESORTS IHG PLC - Full Year Results to 31 December 2020 Reported Underlying5 2020 2019 % Change % Change REPORTABLE SEGMENTS¹ Revenue² $ 992m $ 2,083m ( 52 ) % ( 52 ) % Revenue from fee business $ 823m $ 1,510m ( 45 ) % ( 45 ) % Operating profit² $ 219m $ 865m ( 75 ) % ( 75 ) % Fee margin³ 34.1 % 54.1 % ( 20.0 ) % pts Adjusted EPS4 31.3 ¢ 303.3 ¢ ( 90 ) % KEY METRICS GROUP RESULTS Total revenue $ 2,394m $ 4,627m ( 48 ) % $ 13.5bn total gross revenue ( down 52 % ; ( 51 ) % at CER ) Operating ( loss ) / profit Basic EPS Total dividend per share Net debt $ ( 153 ) m $ 630m ( 124 ) % • ( 52.5 ) % global FY RevPAR ( 142.9 ) ¢ 210.4 ¢ ( 168 ) % 39.9 ¢ ( 100 ) % • $ 2,529m $ 2,665m ( 5 ) % ( 53.2 ) % global Q4 RevPAR Excludes System Fund results , hotel cost reimbursements and exceptional items . 2 Comprises the Group's fee business and owned , leased and managed lease hotels . 3 Excludes owned , leased and managed lease hotels , significant liquidated damages and the results of the Group's captive insurance company . 4 Calculated using results from Reportable Segments and Adjusted Interest , and excluding changes in fair value of contingent consideration . 5 Reportable segment results excluding significant liquidated damages , current year disposals and stated at constant 2020 exchange rates ( CER ) . Definitions for Non - GAAP measures can be found in the ' Use of Non - GAAP measures ' section in the Business Review , along with reconciliations of these measures to the most directly comparable line items within the Group Financial Statements . FY RevPAR ( 52.5 ) % ; variation by region reflects local market Covid - 19 restrictions and recovery pace ; Greater China recovery most advanced with Q4 RevPAR ( 18.2 ) % , Americas ( 49.5 ) % , EMEAA ( 70.5 ) % . Continued outperformance in key markets , driven by portfolio mix and resilience of our business model . $ 150m reduction in fee business costs ; targeting ~ $ 75m to be sustainable into 2021 , while still investing for growth . Operating profit from reportable segments down 75 % to $ 219m before System Fund result of $ ( 102 ) m and operating exceptionals of $ ( 270 ) m , predominantly comprising charges already taken in H1 2020 , including impairments to owned and leased hotels and acquired management agreements . • Strong cash management , resulting in free cash inflow of $ 29m , with an inflow in H2 . Total available liquidity of $ 2.1bn ( on pro forma basis for repayment of £ 600m UK Government CCFF at March 2021 maturity ) . Global estate now 886k rooms ( 5,964 hotels ) , with + 0.3 % net system size growth ( + 2.2 % excluding impact of SVC portfolio termination ) ; opened 39k rooms ( 285 hotels ) , + 4.5 % gross growth . Signed 56k rooms ( 360 hotels ) ; Holiday Inn Brand Family half of all signings ; conversions ~ 25 % of all signings . Global pipeline now 272k rooms ( 1,815 hotels ) ; 11 % share of industry pipeline vs 4 % current market share . Long - term attractiveness of our markets and segments remains ; strategic priorities evolved to drive future growth . New 2030 Responsible Business Plan , Journey to Tomorrow , sets out ambitious commitments including our environmental targets , support for communities and championing diversity , inclusion and equality . Keith Barr , Chief Executive Officer , IHG Hotels & Resorts , said : " Since the very start of the pandemic , we have worked tirelessly to prioritise the health and safety of colleagues and customers , quickly protect our business and our thousands of hotel owners , and help support a strong recovery as travel returns . I would like to thank our hotel colleagues and owners for their incredible efforts , including all they have done to help our communities in such difficult times , bringing to life our purpose of True Hospitality for Good around the world . 2020 was clearly the most challenging year in our history , with Covid - 19 heavily impacting demand across our industry . 2021 has begun with many of these challenges still in place , with more meaningful progress towards recovery for the industry unlikely until later in the year and dependent on global vaccine rollouts , lifting of restrictions and an acceleration in economic activity . The shape of recovery remains varied globally , but we've continued to outperform the industry in key markets thanks to the strength of our teams , business model and segments in which we compete . This includes our industry - leading position in upper midscale , where demand remains stronger . To succeed in this environment , we've evolved our purpose as well as our strategic priorities , ensuring a focus on continued investment in our brands and digital capabilities to maximise revenue for our hotels and create more seamless guest experiences ; keeping guests and owners at the heart of everything we do ; and strengthening how we care for our people , communities and planet . These elements form the pillars of our corporate strategy , which together with our new 2030 Responsible Business Plan , will ensure we continue to successfully and sustainably grow our brands and business . Despite so many challenges in 2020 , the long - term confidence we share with our owners was reflected by another 285 hotels opening during the year and an average of almost one new signing a day . Conversion activity increased across our brand portfolio , including the launch of voco in the US and China , taking the brand to more than 20 countries . We're building avid and Atwell Suites to be future brands of scale , while continuing to drive the growth of our established brands , with strong performances for Hotel Indigo and Kimpton , and our Holiday Inn Brand Family accounting for 60 % of all openings and half of all signings in 2020 . Having demonstrated resilience and outperformed in 2020 , we continue to work closely with owners to capture demand , alongside investing to capitalise on our industry's long - term growth prospects . Our preferred brands in attractive markets and segments , even stronger technology and loyalty platforms , and a substantial proportion of our pipeline being under construction , give us confidence in our ability to achieve industry - leading net rooms growth as the market recovers . " 1