InterContinental Hotel Group profits fall

12 November 2008 by
InterContinental Hotel Group profits fall

Holiday Inn Hotel owner InterContinental Hotels Group (IHG) has reported a 28% fall in its third-quarter profit, with sharp deterioration in market conditions since.

The company, which also owns the Crowne Plaza brand, said that room bookings had remained relatively strong in the three months to 30 September and that the drop in net profit to $91m (£58.7m) from $127m (£82m) reflected a number of one-time gains during comparative quarters.

Turnover for the quarter rose 7% to $486m (£314m) from $453m (£293m) off the back of strong hotel room sales.

IHG warned that profits for the fourth quarter were likely to drop sharply as consumers travelled less due to the global economic slowdown.

Andrew Cosslett, chief executive of IHG, said: "A small number of hotels are experiencing construction delays but, at this stage, we are not seeing any material increase in the level of losses from the pipeline.

"Although we signed for deals for over 160 hotels in the quarter, the current financial conditions are now impacting the availability of debt finance and new signings are taking longer to realise."

Hotel expansions hit financial wall >>

Credit crunch delays new InterContinental hotels >>

InterContinental profits slide as USA consumers reign in spending >>

London Crowne Plaza hotel bought for £85m >>

By Gemma Sharkey

E-mail your comments to Gemma Sharkey here. jobs
Looking for a new job? Find your next hotel job here with jobs

The Caterer Blog]( Catch up with more news and gossip on the Caterer Blog here
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
TagsFinance and Hotels
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking