Hospitality and Tourism Annual Report Analysis

Hospitality Company Annual Report Analysis: the case of Inter-Continental Hotels Group plc

Tonja Polly

Hospitality and Tourism/Annual Report

Strayer University

Professor: Harvey Weiss

August 24, 2012

Abstract

The hospitality and the tourism sectors across the globe have been adversely affected by various factors over the last one decade. This research paper will critically examine Inter-Continental Hotels Group plc financial position over the last three financial years and thereafter give a five-year forecast.

Introduction

Inter-Continental Hotels Group plc is one of the leading players in the hospitality industry. The group of hotels is British owned and it has its headquarters in Denham, United Kingdom (Brymer, 2009). The group has more than 4,500 individual hotels located in over 100 countries. It is estimated that that close to 3,750 of the group’s hotels operate under franchise contractual agreement with the group’s management team. The preceding section of the paper will critically analyze the 2011-2012 financial position of the hotel and thereafter, predict the group’s financial projection over the next five years.

The group chairman’s report to the shareholders

It is important to note that unlike many other business organizations that have both their chairmen and the CEOs write letters to the shareholders, the Inter-Continental Hotels Group plc only has its chairman addressing the shareholders with a letter. In his letter to the shareholders, the group’s chairman MR. David Webster started by thanking the shareholders for their concerted effort in creating a good working environment within the organization. He went ahead to inform the shareholders that the group’s management team had seen it sensible to divide its regions of operation from three to four namely Europe, Americas, the Middle East and Africa, and Greater China region...