• 5.1% YOY net system size growth, up 4.6% excluding Regent Hotels & Resorts and the UK portfolio deal
• 27k rooms signed, 19k rooms opened (up 70% YOY) strongest Q3 pace for each in 10 years
• Global Q3 comparable RevPAR¹ up 1.0%, with Q3 YTD RevPAR up 2.7%
• Roll out of GRS and IHG Concerto now substantially complete
• 150 avid hotels signed into the Americas pipeline, the first property is now open, and last week the brand was launched in Germany
• Regent Hotels & Resorts’ first signing since acquisition, and voco on track for >15 signings by year end
• $500m to be returned to shareholders by means of special dividend with share consolidation

Third Quarter RevPAR performance

Update on strategic initiatives

• Net system size up 5.1% year on year to 826k rooms (5,518 hotels), up 4.6% excluding Regent Hotels & Resorts and the UK portfolio deal.
• 19k rooms opened in the quarter, up 70% on the prior year, and our best Q3 performance in 10 years. This includes the rooms associated with Regent Hotels & Resorts (2.0k rooms) and the UK portfolio deal (1.7k rooms, with a further 0.5k to be added), which completed in the quarter. Our portfolio in Greater China continues to expand at pace, with 17% net system size growth year on year.
• 27k rooms signed, our highest Q3 rooms signings since 2008, and with Greater China on track to have its best ever full year performance in 2018.
• Pipeline now stands at 267k rooms.

• Mainstream
  • avid hotels: first property opened for the brand in Oklahoma City, with a further 25 hotels (2.4k rooms) signed in Q3, taking the total Americas pipeline to 150 hotels. Last week we announced the launch of the brand in Europe, signing a Multiple Development Agreement with one owner to open 15 hotels in Germany over the next 5 years, the first by 2020.
• Upscale
  • voco: first property expected to open in Australia later this year; with six signings to date in addition to the four properties that will rebrand as part of the UK portfolio deal, we are on track for more than fifteen signings in total for the brand by year end, ahead of our initial expectations.
• Luxury
  • Regent Hotels & Resorts: 51% acquisition completed in July, adding 6 properties to our system and 2 to our pipeline. A relaunch of the brand was announced this week together with the first signing since the acquisition, Regent Kuala Lumpur, with numerous further sites under discussion.
  • Kimpton Hotels & Restaurants: international expansion continues at pace, with the Kimpton Fitzroy due to open in London in the coming weeks, and further signings in Q3, including sites in Bangkok, Barcelona and Tokyo, taking the brand’s global presence to 14 countries.

• Roll out of GRS and IHG Concerto is substantially complete, ahead of schedule and on budget.
• >95% of hotels have successfully migrated to the platform with the remaining hotels scheduled to migrate over the coming weeks.

• $500m will be returned to shareholders via a special dividend with share consolidation to be paid in Q1 2019, subject to shareholder approval*.
• This will bring the total returns IHG has made to shareholders since 2003 to $13.5bn.
• We remain on track to deliver ~$125m in annual savings from our reorganisation plan, including System Fund, by 2020 for reinvestment to drive growth.
• Exceptional cash cost to achieve the savings remains unchanged at $200m; $48m in H1’18 ($31m in 2017), with ~$70m expected in H2’18 and the remainder in 2019.
• The financial position of the group remains robust, with an on-going commitment to an efficient balance sheet and an investment grade credit rating.

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