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
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