InterContinental confident it will hit 2008 targets

InterContinental Hotels Group (IHG) is confident it will exceed its three-and-a-half year target of opening 50,000 to 60,000 net new rooms by 2008, the company said today.

Announcing half-year results, IHG, which operates InterContinental Hotels, Crowne Plaza, Holiday Inn and Holiday Inn Express, revealed that it opened more than 20,000 rooms and removed more than 13,000, giving it a net addition of 7,430.

It also signed up nearly 55,000 rooms into its development pipeline, which now stands at 187,487 rooms, or 1,414 hotels, a rise of 19% since the start of the year.

Continuing operating profit was up 5% to £111m, at the lower end of the range of forecasts.

Continuing revenue was up 12% to £422m, with revenue per available room increasing by 7%.

Andrew Cosslett, chief executive, said: "Strong demand with relatively low levels of new supply is driving up room rates and our brands continue to outperform the market in most of our major regions and geographies. Our outlook for the year is positive."

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By Daniel Thomas

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