Profit slump

Showing signs that the hotel market is far
from recovery, Intercontinental Hotels (IHG) has reported a 56 per cent drop in
pre-tax profits.

The world’s largest hotel group in terms of
number of rooms said the results for the six months to 30 June fell from US$236m
to $151m as revenues fell by a quarter to $726m.

“We can’t see any sign of recovery and it
could be two years before we get back to levels of travel we were at before,”
says IHG chief executive Andrew Cosslet.

Cosslet added that while future booking data
showed no further decline in demand, hotel room rates are still very much under
pressure.

IHG currently owns Holiday Inn, Crowne Plaza and Indigo. The Group is halfway
through a relaunch of Holiday Inn and said it remains on track for completion in
2010.

Paul Colston

Author

Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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