InterContinental Profits Fall

16th February 2010 (Last Updated February 16th, 2010 18:30)

InterContinental Hotel Group (IHG) has reported that its operating profits fell 34% to $363m from $549m in 2008. Total revenue fell by 19% to $1.54bn in 2009 from $1.9bn in 2008, according to the IHG's full-year results to 31 December 2009. Total gross revenue from all

InterContinental Hotel Group (IHG) has reported that its operating profits fell 34% to $363m from $549m in 2008.

Total revenue fell by 19% to $1.54bn in 2009 from $1.9bn in 2008, according to the IHG’s full-year results to 31 December 2009.

Total gross revenue from all IHG hotels stood at $16.8bn compared with $19.1bn in 2008.

Revenue per available room (RevPAR) also fell by 14.7% in 2009, with a fourth-quarter decline of 10.9%.

RevPAR fell by 15.9% in the Americas, 14.8% in Europe and Middle East, and 13.5% in Asia and Pacific.

RevPAR narrowed to just 3.8% with Asia Pacific ahead at 11.1% in January 2010.

IHG chief executive Andrew Cosslett said the hotel group has opened a record 439 hotels in 2009 and signed 345 hotels into their pipeline, a good result given the challenging financing environment.

“We removed 187 hotels in the year and now have over 50% of the Holiday Inn estate operating under relaunched standards,” Cosslett said.