Intercontinental confident after strong quarter

10th May 2011 08:03

Intercontinental Hotels said it is confident for the full year after strong growth in the US, where it posted the biggest increase in the amount it makes for every available room since before the financial crisis, helped boost profits.Pre-tax profits before exceptional items at the Holiday Inns owner climbed to $96m from $68m on revenues that were up to $396m from $362m. RevPAR (revenue per available room, a key metric for the hotel sector) was up by 6.9%, helped by an 18.8% increase in the greater China area and an 8.4% rise in the US, the highest growth since the second quarter of 2006. Growth was more subdued in the Europe, Middle East and Africa region at 3%, with tensions in Egypt and Bahrain hitting profits."We remain confident about the outlook for the rest of the year," said chief executive Andrew Coslett. "Demand for our brands continues to strengthen with both guests and hotel owners."---RG