Revenue from continuing operations increased by 12.9% to £805m
and continuing operating profit increased by 16.2% to £201m during
the 12 months ended 31 December 2006. The growth was driven by
a combination of strong industry fundamentals in all three of IHG’s
regions, RevPAR premiums to market for most of IHG’s brands and
continuing expansion in hotel and room count.
Including discontinued operations, total operating profit before other
operating income and expenses decreased by 31.9% to £231m
during 2006 as a result of asset disposals. Discontinued operations
represent the results from operations that have been sold or are
held for sale and where there is a co-ordinated plan to dispose of
the operations under IHG’s asset disposal programme. In this OFR,
discontinued operations include owned and leased hotels in the US,
UK, Continental Europe and Asia Pacific that have been sold or
placed on the market from 1 January 2005, and the Britvic Group,
disposed of by way of an initial public offering in December 2005.
With the weighted average US dollar exchange rate to sterling
being similar to the rate in 2005 (2006 $1.84: £1, 2005 $1.83: £1),
growth rates for results expressed in US dollars were similar to
those in sterling. Continuing operating profit before other operating
income and expenses was $369m, ahead of 2005 by 16.8%.
Including discontinued operations, operating profit before other
income and expenses was $424m, 31.5% lower than 2005.