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ICH sees profit rise in first quarter

26 May 2005 by

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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