UK-based hotel operator and franchisor InterContinental Hotels Group (IHG) has reported strong first half results with continuing operating profit up 30 per cent to £107m from £82m.
Franchised operating profit was up 14 per cent to £117m while managed operating profit was up 39 per cent to £43m.
"This has been a good first half for IHG with excellent trading across each of our three operating regions and RevPAR out performance in all our key profit generators,” said Andrew Cosslett, chief executive.
“We have made good progress on our asset disposal programme and remain fully focused on increasing the number of hotels that carry our brands.
“We continue to attract strong interest from owners and partners, both new and existing, and for the first time we now have over 1,000 new hotels in the development pipeline across the world. Current trading is healthy and our outlook for the rest of the year remains positive."
The company’s share price slipped following the half-year results announcement however, due to news that a cash return to shareholders would not be forthcoming, despite the continuing asset sales. InterContinental said funds would be returned to shareholders, but that a decision on when and how much would not be made until February 2007.
The hotel group, which operates the InterContinental, Crowne Plaza and Holiday Inn brands, reportedly benefited from the recent terrorist scare at London airports, seeing full occupancy at many of its properties in the city and close to airports as stranded travellers sought a place to stay.
Photograph: CEO Andrew Cosslett (Vismedia)
