InterContinental Hotels Group (IHG) has cut 120 managerial positions and implemented a salary freeze after a sharp decline in training due to the global slowdown.
Although the group's end of year results were ahead of expectations, with a 13% increase in operating profit taking it from €474m (£332m) in 2007 to $535m (£375m) in 2008, the outlook for 2009 is bleak.
The group's fourth quarter results took a sharp downturn, with global revenue per available room (revpar) falling 6.5%.
January was a particularly bad month with global revpar down 12.2% year-on-year and Asia the worst hit. IHG said forward bookings data shows no signs of improvement in levels of demand.
Chief executive Andy Cosslett said the company had already taken action, cutting 120 managerial positions, trimming travel and entertainment expenses and implementing a salary freeze that will see savings of $30m (£21m) this year.
Cosslett said: "The trading environment is very tough. The sharp deterioration that we reported on last November has continued into 2009 and we see no signs of improvement at this stage.
"It has been clear for some time that 2009 will be a challenging year and we have taken action to prepare the business, including strict management of cash and a significant reduction in costs."
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By Gemma Sharkey
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