Intercontinental Hotels slides into loss

11th Aug 2009 07:12

Hotel group Intercontinental held its interim dividend despite a tough first half that saw revenues tumble and the group post a loss after one-off items. Sales in the six months to June fell 25% to $726m from $974m and Intercontinental fell $50m in the red, compared with a $232m profit, as it took a charge of $201m for impairments and one-off charges. Operating profits fell to $179m from $291m.The group, which operates the InterContinental, Crowne Plaza and Holiday Inn chains, posted first half revenue per room (RevPAR) down by 16.2%, with a second quarter decline of 18.6%. IHG said its brands outperformed the industry in each of its three regions.'Trading was very challenging throughout the first half of the year and we expect the remainder of 2009 to be tough,' chief executive Andrew Cosslett said, though he added there were signs trading had stabilised recently.July's global constant currency RevPAR declined b 14.4%, while forward bookings data, which provides limited visibility, shows no further deterioration in demand. July benefited from stronger leisure demand, IHG said.The group also raised its cost savings target for 2009 to $80m from $70m and reiterated it is still on track to add 400 hotels this year and on target with its $1bn relaunch of Holiday Inns.The dividend is unchanged at 12.2c.