InterContinental outperforms

12th May 2009 07:17

Holiday Inn hotel chain InterContinental Hotels Group said occupancy rates started to stabilise in the first quarter but room rates came under pressure.Revenue in the first three months of 2009 ease to $342m from $448m a year earlier. Total operating profit fell 43% to $72m from $127m in the first quarter of 2008, some $m above market consensus.Revenue per available room (RevPAR) on a constant currency basis was down 13.6%, but the group said this performance was above the industry norm in each of the three regions in which the group operates.Net debt at the end of March was $1.3bn, little changed from the position at the end of December.The company said there is no sign of further deterioration in demand but room rates remain under pressure.Trading in April was affected by the movement of Easter from March to April. On a constant currency basis RevPAR was down 19.8% globally in April, with the Americas down 22.4%, Asia Pacific down 20.6% and Europe, Middle East and Africa down 22.4%.‘Our brands continue to perform strongly across all three of our regions, and in the US our RevPAR outperformance has improved further from the last quarter of 2008, mostly as a result of our portfolio bias to mid-scale hotels, primarily Holiday Inn,’ said Andrew Cosslett, chief executive of InterContinental.