- excluding the effect of special items and any relevant tax.
- Assets held for sale
- IFRS classification used for assets when their carrying amount will be recovered primarily through a sale transaction rather than continuing use, and management considers a sale is highly probable.
- Average Daily Rate (ADR)
- room revenue divided by the number of room nights sold. Also known as average room rate.
- Basic earnings per share
- earnings available for ordinary shareholders divided by the weighted average number of ordinary shares in issue during the year.
- a long-dated note, being an obligation to repay.
- Brand RevPAR Premium
- this is the difference between IHG RevPAR and a competitor's or market RevPAR. This is one measure used to gauge relative performance of brands.
- Commercial Paper
- a negotiable short-term unsecured promissory note, issued by a corporate or other borrower normally for a maximum of one year.
- Competitive Segment
- the broad market segment against which a hotel brand competes.
- Competitive Set
- the specific local hotels against which a particular hotel competes.
- Contingent Liability
- a liability that is contingent upon the occurrence of one or more uncertain future events.
- Continuing Operations
- operations not classified as discontinued and including acquisitions made during the year.
- Currency Swap
- an exchange of a deposit and a borrowing, each denominated in a different currency, for an agreed period of time.
- a long-term loan, usually secured by property.
- Discontinued Operations
- IFRS classification used to show the results of operations arising from assets classified as held for sale when the results relate to a separate line of business, or geographical area of operations, or where there is a coordinated plan to dispose of a separate line of business or geographic area of operation.
- earnings before interest, taxation, depreciation and amortisation and exceptional items.
- Exceptional Items
- material items deriving from ordinary activities but which are disclosed separately because of their size or incidence. (UK GAAP terminology.)
- Extended stay Hotel
- a hotel designed for guests staying for periods of time longer than a few nights and tending to have a higher proportion of suites than normal hotels, e.g. Staybridge Suites.
- Forward Rate Agreement
- a contract to receive or pay the difference between an agreed interest rate and the actual rate at an agreed future date, on a specified notional principal.
- operator who uses a brand under licence from the brand owner (e.g. InterContinental Hotels).
- brand owner (e.g. InterContinental Hotels) who licenses brands for use by other operators.
- net debt expressed as a percentage of shareholders' funds.
- the difference between the consideration given for a business and the total of the values of the separable assets and liabilities comprising that business.
- Gross Operating Margin
- operating profit before fixed costs and overheads, expressed as a percentage of turnover.
- the reduction of risk, normally in relation to foreign currency or interest rate movements, by making offsetting commitments.
- Holidex Fees
- charges to hotels under management and franchise agreements for the use of Holidex, IHG's proprietary reservation system.
- International Accounting Standards. See also IFRS.
- International Financial Reporting Standards. IHG adopted IFRS from 1 January 2004 in accordance with European Union law. The standards are published by the International Accounting Standards Board (www.iasb.org). Can also be referred to as IAS.
- Income-Generating Unit
- a portfolio of similar assets that are subject to the same economic and commercial influences.
- Interest Rate Swap
- an agreement to exchange fixed for floating interest rate streams (or vice versa) on a notional principal.
- Management Contract
- a contract to operate a hotel on behalf of the hotel owner.
- Market Capitalisation
- the value attributed to a listed company by multiplying its share price by the number of shares in issue.
- Midscale Hotel
- a hotel in the three/four star category, e.g. Holiday Inn, Holiday Inn Express.
- Net Capital Expenditure
- cash expended on fixed assets, less cash received from selling fixed assets, excluding major acquisitions and disposals.
- Net Cash Flow
- cash flow from all operations, including major and one-off payments and receipts.
- Net Debt
- borrowings less current asset investments and cash at bank and in hand.
- Net Operating Assets
- total assets less liabilities, excluding all assets and liabilities of a financing nature.
- Normal Cash Flow
- cash flow from all operations before major and one-off payments and receipts.
- Occupancy Rate
- rooms occupied by hotel guests, expressed as a percentage of rooms that are available.
- Operating Cash Flow
- cash flow from operations but before payments for tax and to providers of finance (through interest and dividends), and before major and one-off payments and receipts.
- Operating Margin
- operating profit expressed as a percentage of turnover.
- signed/executed agreements, including franchises and management contracts, for hotels which will enter the InterContinental Hotels system at a future date.
- Revenue per available room (RevPAR)
- room revenue divided by the number of room nights that are available (can be mathematically derived from occupancy rate multiplied by average room rate).
- Room Revenue
- revenue generated from the sale of room nights.
- Royalty Rate
- the percentage of room revenue that a franchisee pays to the brand owner for use of the brand name.
- Special Items
- material items deriving from ordinary activities but which are disclosed separately because of their size or incidence.
- Subsidiary Undertaking
- a company in which the Group holds a stake and over which it exercises dominant influence.
- System Size
- number of hotels (or rooms) owned, managed or franchised by InterContinental Hotels.
- adjusted to remove items that distort comparability between both years.
- Upscale Hotel
- a four/five star full-service hotel characterised by superior service, e.g. InterContinental, Crowne Plaza.
- UK GAAP
- accounting principles generally accepted in the United Kingdom.
- US GAAP
- accounting principles generally accepted in the United States.
- Weighted Average Exchange Rate
- the average of the monthly exchange rates, weighted by reference to monthly operating profit.
- Working Capital
- the sum of stocks, debtors, creditors and accruals of a trading nature, excluding financing items such as corporate taxation and proposed dividends.
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Last updated 12 December 2011