Good afternoon, ladies and gentleman. Welcome to the InterContinental Hotels Group Interim Results 2014 Conference Call. For the duration of the call, you’ll be on listen-only. However, at the end you will have opportunity to ask questions. [Operator instructions] I will now hand you over to our host, David Kellett, to begin. Thank you.

Thank you, Cray, and good morning, everyone. This is David Kellett, Head of Investor Relations, InterContinental Hotels Group. I’m joined this morning by Richard Solomons, Chief Executive; and Paul Edgecliffe-Johnson, Chief Financial Officer. Before I hand over to them for the discussion of our results, I need to remind you that in the following discussion, the company may make certain forward-looking statements as defined under US law. Please check this morning’s press release and the company’s SEC filings for factors that could lead actual results to differ materially from any such forward-looking statements. I would now turn the call over to Richard Solomons.

Good morning, everyone. Thanks for joining us. In a moment, Paul will take you through the financial results in detail, but, first, let me cover some highlights. We had a strong first half with RevPAR up 5.8% and underlying fee revenues up 6%. We opened 17,000 new rooms and had our best half of signings in six years, a further demonstration of hotel owners’ preference for IHG brands. Fee-based margins were up 1 percentage point year-on-year, reflecting our continued focus on cost efficiencies and leveraging sales and also some benefits from timing. We continue to reduce the asset intensity of the business and completed the sale of two landmark InterContinental Hotels in the US in New York and San Francisco. The strategic review of remaining owned assets is progressing well and we will update you as and when we have more to say. We’ve continued our consistent track record of returning value to shareholders completing our most recent share buyback in May and paying a special dividend in July. Together with the 9% growth in the interim dividend we’re announcing today, total returns to shareholders amounted $10.4 billion, since our formation as a standalone company in 2003. So I’ll now hand over to Paul, who will talk about the financial progress IHG has achieved in the first half, and I’ll return later to update you on some of the key elements of our strategies.

Thanks, Richard, and good morning, everyone. We’re pleased to report another strong trading performance in the half-year with solid growth despite the short term noise from hotel sales and liquidated damages received so they are in our reported numbers. I will therefore focus my commentary on the underlying results. On that basis, we increased both our fee revenues and operating profit by 6%. Higher interest and tax charges were offset by the 4% reduction in weighted average shares as we completed our share buyback program and underlying earnings per share increased 7% year-on-year. Our 6% growth in fee revenue was a result of continued increases in RevPAR and net system size in each of our four regions, which grew, in aggregate by 5.8% and 2.2% respectively. To give you some more color as to where and how we drove this growth, I will now talk through the performance of each of our regions in more details. Starting with the Americas, where demand is particularly strong in the first half. The $22 million of fee revenue growth we delivered was almost all RevPAR driven. Occupancy of 68% was 220 basis points higher year-on-year and 2 percentage points above the 2007 prior peak. Effective yield management of the strong demand allowed us to increase average rates in the U.S. by 2.7%. This took them to a record level on a nominal basis, but still 4% below the prior peak after adjusting for inflation. In aggregate, this generated Americas RevPAR growth for the half of 6.7%. From a competitive standpoint, Holiday Inn outperformed its industry segment by just over one percentage point on a total RevPAR basis. InterContinental and Crowne Plaza also performed well, but were held back a bit by their higher distribution waiting towards major East Coast cities like Philadelphia and…

Thanks, Paul. So, I’ll start by recapping on some of the major tailwinds that we believe will continue to drive demand for hotel rooms over the next few decades. Growing GDP, globalization of trade and aging populations will result in a steady increase in both business and leisure travel, key drivers of hotel demand especially for mid-market brands. IHG is better placed than most to capitalize on this trend given our extensive geographic footprint and broad portfolio of brands. That said today’s consumers are evolving rapidly. People are connected 24/7 through multiple devices and it’s important to point out this is not just the Millennial’s, but many in other age groups too. Arising from this there are three trends, which we see having the most impact on the hospitality industry. Firstly, a shift in connectivity to a multi-channel environment, certain PCs and laptops to smartphones and tablets and maybe one day to wearable devices like Google glasses. Secondly, social media has led to a huge number of travelers of all types posting online, before, during and after their stays in hotels, and personalization has become increasingly important. This was a key insight from our 2014 trends report explaining the role that technology has started to play in delivering the personalized brand experience that consumers are increasingly demanding. At IHG we focus our work in the digital space on the link between today’s consumers and their needs across the guest journey. This starts with when they’re researching their location from spending time looking at specific features of our hotel to when they make reservation stay with us and invite a hotel review or share their post date experiences. We know that engaging with guests in this way will result in increased royalty and increased share of wallet, and an increase in…

Thank you. [Operator Instructions] And our first question is from the line of Steven Kent from Goldman Sachs. Please go ahead. Steven Kent – Goldman Sachs: Three questions and some of it you’ve partially addressed, so I admit that. But, can you just review, again, for the U.S’ the RevPAR growth of roughly 6.6 versus industry-wide data more in the eight plus range? So that’s one question, question, just give me some color on that? Second, in some of your – just in the number of rooms under construction still remains very high are you finding that you need to add or provide any financing of the franchisees able to get financing maybe most importantly? And then the third question is just on China, broadly. I just found it interesting when I read your paragraph about China, that some of the revenue drivers, some of the current RevPAR increases in revenue and food and beverage were a little bit soft due to austerity yet you’re still able to get some building and you have plenty of rooms under construction. So I’m trying to balance austerity today on current trends versus the ability to get construction going and getting hotels being built. So, those are my three questions feel free to push back on any of them.

Good questions, Steve. Let me take the last one on China and then Paul will cut the other two. So look on China, I think we’ve talked on occasions about our leadership position in China and I think you’re seeing the results of that coming through. So we’ve been there longer than anybody and we’re significantly larger in terms of global players. So, while where there has been some austerity, some of it’s been a bit more extreme at the really top-end of luxury and InterContinental doesn’t play in that space and because of our scale, particularly our domestic scale where we’re getting on 75, 80% of our businesses is domestic. We’ve been able to substitute business for some government businesses which hasn’t disappeared completely, but it’s just been less then is, maybe there is an ongoing extravagance in it. So whether that’s substituting it with weddings or more sort of traditional businesses and government business and so on. So we managed to do that and of course we’ve added a lot of hotels. As we said we signed, we continue to sign more hotels almost year-on-year China than we have in the past and we’ve opened more. And the reality is that we have remained very positive about the long-term in China as to a lot of our owners and I think in a market like that working with the right owners who are well financed, well-funded and very professional puts one in a much stronger position. And without going into any more detail, the infrastructure investment, the GDP growth, the urbanization, all of them are very important drivers for hotels. I think as we perform well and have gained significant share through the sound austerity, we’re really well-positioned to continue to grow ahead of the markets. So I remain very positive about that business. Paul, do you want to pick?

Sure. Thanks, Steve. Around the – our competitive performance in the U.S. in the first half, we talked a little bit about Crowne Plaza and how it’s distribution to some of the cities that obtain fairly lower levels of demand impacted that. So when you’re looking at a small period and you’re looking year-on-year when the previous year was a little bit impacted by some of the sequestration events and the impact on some group and government business, you won’t necessarily get an exact read quarter-on-quarter. Holiday Inn in the first half outperformed this segment and Crowne Plaza in the first quarter did too. I’m not sure that we’ll do that every quarter, particularly when we’re running at big premiums to those segments and particularly when you got occupancy levels at such a high levels our Holiday Inns and Holiday Inn Expresses are running in very, very high occupancies now and at a premiums to that segment. So I’m not sure they can take on more business to quite the level that some of the hotels frankly haven’t been doing as well it can. Looking at rooms under construction, your question around that, is financing available? Financing is available for good credit who are trying to build in the right locations when lenders want to lend and when they’re coming up with sensible loan-to-cost ratios on their projections. And it’s not available in the same quantum as it might have been back in 2007, but I’m not sure we’re going to come – see that coming back anytime soon. For trading hotels then debt is available at very competitive rates. So a little bit of a difference between new builds and conversion there, but for us what’s most important is that there’s more finance available in the upper mid-scale segments than in some of the other segments, because the lenders like the returns you make there. So, that’s playing out well for us. Steven Kent – Goldman Sachs: Okay, thank you.

Thank you. And our next question is from the line of Patrick Scholes from SunTrust. Please go ahead. Patrick Scholes – SunTrust: Good morning. Several questions for you, why don’t we start with this first one here, can I get a little bit more color on the scope and details of the Barclay closing is that 18 months. Is that going to be the entire hotel closed for that time? And additionally, what do you, as a company, plan to spend out-of-pocket for the renovation?

To answer your questions, Patrick you got more than one or is that it? Patrick Scholes – SunTrust: That was the first one why don’t we go with that and then I’ll jump on.

Okay. So, Patrick, let me jump in on that one. I think we’ve talked before about the scale of the refurbishment of that we’re going to be spending sort of $175 million – $175 million will be spent on the refurbishment. And we have a 20% stake in that, so we’ll be making a proportionate investment. The hotel will close in its entirety, whether it then reopens in phases we’ll have to see how that goes, we’ll make a call on that as we work through it. But yeah, it will close. It will get renovated and it will be a fabulous product when it reopens. You know the location, you know the hotel well it will really be better than anything else that’s available in Midtown, so we’re looking forward to the day. Patrick Scholes – SunTrust: How is – what we talk about in lodging, our RevPAR premium how is that hotel prior to – how is the RevPAR premium and tracking on the hotel and what would your expectations be after it reopens?

Patrick, that’s going to be kind of a different product. We’re bringing in more social ballroom space and of the rooms are all been significantly upgraded. So it’s going to be a different sort of experience. I’m not sure if that comparable looking at it pre and post. Patrick Scholes – SunTrust: Okay. Secondly, you’ve recently completed your buyback authorization what is your general sense for going forward dividends versus repurchases?

We’ve done a mix across the last 10 years on capital return through VISA [ph] schemes, through special dividends and share buybacks. I think we’ll continue to evaluate each time the size and what’s most appropriate in all the circumstances. So I think let’s wait and see what happens in the future. Patrick Scholes – SunTrust: Okay. And then lastly here, I’m just curious obviously gauge your appetite or perhaps openness if you were to receive an attractive buyout offer from a bidder, what are your thoughts on that?

Patrick, it’s Richard again, look, we’ve got a very clear strategy. We’re growing the business well. We’ve got great momentum but at the end of the day we’re a public company. So we’re looking to maximize value for shareholders which I think we’ve done a decent job of and we will continue to focus on that in the future. Patrick Scholes – SunTrust: Okay, thank you. That’s all.

Thank you. And we have question from the line of David Loeb from Baird. Please go ahead. David Loeb – Baird: Good morning. I have two so let me just start with one but I should say good afternoon for you. The termination in the first half was that mostly the InterContinental Westminster? I know you addressed this on the call this morning, but wasn’t really clear on answer?

Termination? Well, we obviously had quite a few terminations, but certainly, no that’s not that larger hotel. But it’s obviously one in London which we had more than replacing with the new InterContinental which will open next year, near O2 Arena to the city. David Loeb – Baird: Right. So were there any other big lumps beside to that one?

No. Just the usual sort of cleanup. David Loeb – Baird: Okay. And I know you spoke extensively this morning about the Paris and Hong Kong asset, so I don’t really want to beat that dead horse. But I wonder if you could just give us some metrics on value in those markets like market cap rates, things like that or hotels like those in Paris and Hong Kong?

A bit difficult to do that, honest David, because there are such individual assets you can’t just apply multiples from other hotels. These are very unusual pieces of real estate that attract very specific purchases. I think if you look at our track record of sales of these – assets we’ve done a good job for shareholders and that’s where the strategy of your nets out but it does involve them being sold and we will do our best to get the maximum price till we can. David Loeb – Baird: Okay. Totally fair. And Richard maybe just one more that you’re welcome to not answer but can I just ask straight out, did you receive an offer or an overture from a U.S. company about selling your company to them?

There were some rumors and speculation in London from a journalist and we never comment on speculation, David. David Loeb – Baird: Fair enough. Thank you.

Thank you.

Thank you. And we have no further coming through. So, I will hand you back to your host.

Excellent. Thank you. Thank you everybody for calling in and obviously, if you’ve got individual questions aside, you can contact the team here. Thanks very much. Look forward to speaking soon. Bye.

Thank you for joining today’s call. You may now replace your handsets.