Global scale, leading position in the U.S. midscale hotel market, and increasing presence in China. Fee-based, asset-light, franchised, and managed business model limits operating leverage and capital intensity. Expanding portfolio of well-recognized lodging brands. Cyclical industry heavily correlated with overall GDP trends and inbound travel. Exposure to event risks that could discourage travel. Strong and relatively stable operating cash flow generation supported by a fee-based business model and good diversification. Free operating cash flows (FOCF) surpassed by shareholder returns leading to negative adjusted discretionary cash flows (DCF). Our expectation that IHG will maintain adjusted debt to EBITDA below 3x and funds from operations (FFO) to total debt above 20% through 2018. The stable outlook on IHG reflects our view that
