The Caterer

ICH sees profit rise in first quarter

26 May 2005 by
ICH sees profit rise in first quarter

InterContinental Hotels Group's profit rose in the first quarter of 2005, despite a stagnant European market.

In the three months to 31 March, managed and franchised hotels' profit increased by 9% from £53m to £58m.

Revenue per available room (revpar) in Europe, the Middle East and Africa grew by 3.1%, while the UK's Holiday Inn brand outperformed the market, growing revpar by 5.2%.

New international financial reporting standards and IHG's disposal programme also created £15m of savings, because no depreciation is chargeable on assets held for sale under the new regulations.

Industry consultant Chris Rouse from CBRE commented: "It's perhaps not surprising that the apparent economic malaise in the leading EU Continental economies looks to be retarding a return to significant improvement in hotel performance. Perhaps the mood might change after the EU referendums at the weekend."

Progress on the disposal of hotel assets continued, with the £34m sale of the Crowne Plaza United Nations hotel announced yesterday (26 May) being the latest deal.

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