InterContinental profits slide as USA consumers reign in spending

12 August 2008 by
InterContinental profits slide as USA consumers reign in spending

Holiday Inn owner InterContinental Hotels Group (IHG) has seen its first-half pre tax profits fall 9.7% to $232m (£122m) as the US downturn hits.

Although the company's global revenue per available room (revpar) was 4% higher than a year ago, revpar growth in the USA was a more modest 1.6%.

Despite this IHG's total turnover for the half year increased 14.4% to $952m (£500m), as a booming market in the Middle East, Europe and Africa region offset slowing spend in the USA.

IHG also benefited from speedy expansion, which has seen it add 60,000 new rooms since June 2005, ahead of its three-year goal.

Chief executive Andrew Cosslett said: "IHG had a good first half, seeing growth in both revpar and in the number of hotels we operate round the world. Growth looks set to continue as we have been signing two hotels a day into our development pipeline.

Generally revpar growth slowed through the second quarter and market conditions have become more challenging particularly in the USA. However the long term trends for the travel industry remain positive and our broad portfolio of brands and fee-based business models positions us well to take full advantage of this."

InterContinetal Hotels to keep new global HQ in UK >>

London Crowne Plaza hotel bought for £85m >>

IHG reveals design plans for first green hotel >>

Tough second half of the year ahead for hoteliers >>

By Gemma Sharkey

E-mail your comments to Gemma Sharkey here.

The Caterer Blog](http://www.caterersearch.com/blogs/catering-news-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.

close

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