Profits rise at InterContinental, but no news on disposals

InterContinental Hotels Group today revealed a modest increase in pre-tax profits to £97m in the three months to 30 September.

This was a rise of 4.3% on the equivalent period last year, when pre-tax profit was £93m.

Excluding the group's Britvic soft drinks division, hotels turnover fell by 2.6% to £377m (2003: £387m) and operating profit was flat at £76m.

But these figures were impacted by the weakness of the dollar against stirling. In constant currency terms, hotels turnover was up by 3.5% and operating profit up by 8.2%.

The company said that the planned sales of its hotels were on track, but failed to announce any new transactions.

The sale of 20 hotels in the Americas, valued at £505m, was "well advanced", while the other planned sales were making "encouraging progress".

InterContintal put 107 hotels, worth £1.9b, on the market earlier this year. They include 75 hotels in the UK, worth £1.1b.

Chairman and interim chief executive David Webster said: "Trading was mixed with the Americas and Asia Pacific delivering another solid quarter of growth, whilst Continental Europe experienced weak demand in certain markets.

"October was strong and the outlook for the full year remains positive."

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