Segmental information

The primary segmental reporting format is determined to be three main geographical regions:
- Americas;
- Europe, Middle East and Africa (EMEA); and
- Asia Pacific.

These, together with Central functions, form the principal format by which management is organised and makes operational decisions. Central functions include costs of global
functions, including technology, sales and marketing, finance, human resources and corporate services; revenue arises principally from technology fee income.

The Group further breaks each geographical region into three distinct business models which offer different growth, return, risk and reward opportunities:

Franchised

Where Group companies neither own nor manage the hotel, but license the use of a Group brand and provide access to reservations systems, loyalty schemes and know-how. Th
Group derives revenues from a brand royalty or licensing fee, based on a percentage of room revenue.

Managed

Where, in addition to licensing the use of a Group brand, a Group company manages the hotel for third-party owners. The Group derives revenues from base and incentive
management fees and provides the system infrastructure necessary for the hotel to operate. Management contract fees are generally a percentage of hotel revenue and may have
additional incentive fee linked to profitability or cash flow. The terms of these agreements vary, but are often long-term (for example, 10 years or more). The Groups responsibilitie
under the management agreement typically include hiring, training and supervising the managers and employees that operate the hotels under the relevant brand standards. In or
to gain access to central reservations systems, global and regional brand marketing and brand standards and procedures, owners are typically required to make a further contribu

Owned and leased

Where a Group company both owns (or leases) and operates the hotel and, in the case of ownership, takes all the benefits and risks associated with ownership.

Segmental results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

Year ended 31 December 2008

Revenue
Owned and leased
Managed
Franchised
Central
Continuing operations
Discontinued operations - owned and leased

Segmental result
Owned and leased
Managed
Franchised
Regional and central
Continuing operations
Exceptional operating tems
Operating profit
Discontinued operations - owned and leased

Operating profit before exceptional items

Exceptional operating tems
Operating profit
Net finance costs
Profit before tax
Tax
Profit after tax
Gain on disposal of assets, net of tax
Profit for the year

Americas
$m

EMEA
$m

Asia Pacific
$m

Central
$m

Group
$m

257
168
495
920

240
168
110
518

159
113
18
290

126
126

656
449
623
126
1,854

43

43

963

518

290

126

1,897

Americas
$m

EMEA
$m

Asia Pacific
$m

Central
$m

Group
$m

41
51
426
-67
451
-99
352

45
95
75
-44
171
-21
150

43
55
8
-38
68
-2
66

-155
-155
-10
-165

129
201
509
-304
535
-132
403

14
366

150

66

-165

14
417

Continuing
$m

Discontinued
$m

Group
$m

535
-132
403
-101
302
-54
248
248

14
14
14
-5
9
5
14

549
-132
417
-101
316
-59
257
5
262

Year ended 31 December 2008

Assets and liabilities
Segment assets
Non-current assets classified as held for sale

Americas
$m

EMEA
$m

Asia Pacific
$m

Central
$m

Group
$m

1,031

957

613

189

2,790

209
1,240

1
958

613

189

210
3,000

Unallocated assets:
Current tax receivable
Cash and cash equivalents

36
82

Total assets
Segment liabilities
Liabilities classified as held for sale

3,118
-638
-4
-642

-470
-470

-159
-159

Unallocated liabilities:
Current tax payable
Deferred tax payable
Loans and other borrowings
Total liabilities

Other segmental information

Continuing operations:
Capital expenditurea
Additions to :
Property, plant and equipment
Intangible assets
Depreciation and amortisationb
Impairment losses

-1,267
-4
-1,271
-374
-117
-1,355
-3,117

Americas
$m

EMEA
$m

Asia Pacific
$m

Central
$m

Group
$m

12

13

76

108

43
7
31
75

2
35
21

10
2
26
-

36
40
20
-

91
49
112
96

a. Comprises purchases of property, plant and equipment, intangible assets and associates and other financial assets as included in the Group cash flow statement.
b. Included in the $112m of depreciation and amortisation is $32m relating to administrative expenses and $80m relating to cost of sales.

Year ended 31 December 2007

Revenue
Owned and leased
Managed
Franchised
Central
Continuing operations
Discontinued operations - owned and leased

Segmental result
Owned and leased
Managed
Franchised
Regional and central
Continuing operations
Exceptional operating items
Operating profit
Discontinued operations - owned and leased

Americas
$m

EMEA
$m

Asia Pacific
$m

Central
$m

Group
$m

257
156
489
902

244
167
81
492

145
99
16
260

117
117

646
422
586
117
1,771

62

17

79

964
Americas
$m

509
EMEA
$m

260
Asia Pacific
$m

117
Central
$m

1,850
Group
$m

40
41
425
-66
440
17
457

33
87
58
-44
134
21
155

36
46
6
-25
63
17
80

-163
-163
5
-158

109
174
489
-298
474
60
534

16

17

473

156

80
Continuing
$m

-158
Discontinued
$m

551
Group
$m

Operating profit before exceptional items

Exceptional operating items
Operating profit
Net finance costs
Profit before tax
Tax
Profit after tax
Gain on disposal of assets, net of tax

474
60
534
-90
444
-24
420
-

17
17
17
-6
11
32

491
60
551
-90
461
-30
431
32

Profit for the year

420

43

463

Year ended 31 December 2007*

Assets and liabilities
Segment assets
Non-current assets classified as held for sale

Americas
$m

EMEA
$m

Asia Pacific
$m

Central
$m

Group
$m

1,233

1,216

672

167

3,288

115
1,348

1,216

672

167

115
3,403

Unallocated assets:
Current tax receivable
Cash and cash equivalents
Total assets
Segment liabilities
Liabilities classified as held for sale

109
105
-562
-6
-568

-477
-477

-136
-136

Unallocated liabilities:
Current tax payable
Deferred tax payable
Loans and other borrowings

-426
-148
-1,764

Total liabilities

Other segmental information

Continuing operations:
Capital expenditurea
Additions to :
Property, plant and equipment
Intangible assets
Depreciation and amortisationb
Reversal of previously recorded impairment
Discontinued operations:
Capital expenditurea
Depreciation and amortisationb

3,617
-1,175
-6
-1,181

Americas
$m

EMEA
$m

Asia Pacific
$m

Central
$m

-3,519
Group
$m

57

41

40

46

184

32
9
33

28
9
35

28
6
22

20
26
23

108
50
113

1
1

1
2

2
3

*Restated for IFRIC 14.

a. Comprises purchases of property, plant and equipment, intangible assets and associates and other financial assets as included in the Group cash flow statement.
b. Included in the $112m of depreciation and amortisation is $32m relating to administrative expenses and $80m relating to cost of sales.

entral functions include costs of global

chnology fee income.

opportunities:

tems, loyalty schemes and know-how. The

revenues from base and incentive

ercentage of hotel revenue and may have an
ears or more). The Groups responsibilities
under the relevant brand standards. In order
ically required to make a further contribution.

ciated with ownership.

ble basis.