Goodwill and other intangible assets (Tables)

12 Months Ended

Dec. 31, 2021

Text Block [Abstract]

Summary of Goodwill and Other Intangible Assets

	Goodwill $m			Brands $m		Software $m			Management agreements $m			Other   intangibles $m			Total $m
Cost
At 1 January 2020		529			439		864			122			23			1,977
Additions		–			–		50			–			2			52
Disposals		–			–		(29	)		–			–			(29	)
Exchange and other adjustments		8			–		1			–			–			9
At 31 December 2020		537			439		886			122			25			2,009
Additions		–			–		32			–			1			33
Disposals		–			–		(40	)		–			–			(40	)
Exchange and other adjustments		(5	)		–		–			–			–			(5	)
At 31 December 2021		532			439		878			122			26			1,997
Amortisation and impairment
At 1 January 2020		(190	)		–		(340	)		(63	)		(8	)		(601	)
Provided		–			–		(36	)		(1	)		(1	)		(38	)
System Fund expense		–			–		(51	)		–			(2	)		(53	)
Impairment charge		–			–		–			(48	)		–			(48	)
System Fund impairment charge		–			–		(4	)		–			–			(4	)
Disposals		–			–		29			–			–			29
Exchange and other adjustments		(1	)		–		–			–			–			(1	)
At 31 December 2020		(191	)		–		(402	)		(112	)		(11	)		(716	)
Provided		–			–		(30	)		(1	)		(1	)		(32	)
System Fund expense		–			–		(82	)		–			(1	)		(83	)
Disposals		–			–		28			–			–			28
Exchange and other adjustments		–			–		1			–			–			1
At 31 December 2021		(191	)		–		(485	)		(113	)		(13	)		(802	)
Net book value
At 31 December 2021		341			439		393			9			13			1,195
At 31 December 2020		346			439		484			10			14			1,293
At 1 January 2020		339			439		524			59			15			1,376

Summary of Carrying Value of Goodwill and Indefinite Life Brands were Allocated to CGUs for Year-end Impairment Testing

Allocation of goodwill and brands to CGUs

	At				At					At		Analysed as:
	1 January 2020 $m		Exchange     adjustments $m		31 December 2020 $m		Exchange     adjustments $m			31 December 2021 $m		Goodwill $m		Brands $m
Americas (group of CGUs)		421		–		421		(2	)		419		132		287
EMEAA (group of CGUs)		332		7		339		(2	)		337		201		136
Greater China		25		–		25		(1	)		24		8		16
		778		7		785		(5	)		780		341		439

Summary of Terminal Growth Rates and Discount Rates Used in Impairment Tests

The weighted average terminal growth rates and pre-tax discount rates are as follows:

	2021				2020
	Terminal growth rate %		Pre-tax     discount rate %		Terminal growth rate %		Pre-tax     discount rate %
Americas		2.0		10.2		1.7		8.5
EMEAA		2.2		12.8		1.9		12.1
Greater China		2.5		12.6		2.5		13.3

Summary of recoverable amount is measured at fair value

Contracts were valued at the higher of value in use and fair value less costs of disposal, using discounted cash flow techniques. Where the recoverable amount was measured at fair value, this was categorised as a Level 3 fair value measurement.

Management agreement portfolios	Region	Basis of recoverable amount	Recoverable amount $m		Long-term     growth rate %		Pre-tax         discount rate %
Kimpton	Americas	Value in use		4		1.7		8.4
Regent	Greater China	Value in use		3		2.0-4.6		7.0-15.9
Six Senses (open hotels)	EMEAA	Fair value less costs of disposal		–		2.0		8.9-14.7
	Greater China	Fair value less costs of disposal		–		2.0		9.9
Six Senses (pipeline)	Americas	Value in use		1		2.0		9.8
	EMEAA	Value in use		2		2.0		8.9
	Greater China	Value in use		–		2.0		8.5