InterContinental profits dip

The group, which operates the InterContinental, Crowne Plaza and Holiday Inn brands, said trends in the fourth quarter showed some improvements and occupancy levels at its hotels have stabilised but room rates are under pressure.

The hotelier, which typically manages or franchises hotels instead of owning them and earns 70 per cent of its profit in the United States, posted 2009 operating profits of $363 million (230m).

"The fourth quarter did show some improvement in trends and occupancy has now stabilised. Rates however remain under pressure and we expect trading to stay tough until business travellers return in greater numbers," said chief executive Andrew Cosslett in a results statement.

InterContinental, which runs over 646,000 rooms in 4,438 hotels worldwide, said revenue per available room (RevPAR), a key industry measure, fell by 14.7 per cent in 2009, with a fourth quarter fall of 10.9 per cent, while the January 2010 decline was just 3.8 per cent.

The group paid a final dividend of 29.2 cents making an unchanged full year payout of 41.4 cents.

The hotelier opened a net 26,828 new rooms in 2009 showing a slowdown from the prior year due to the scarcity of financing for new hotel development, but had a pipeline of new rooms of 210,363, representing 1,438 hotels.

The group, which also runs Staybridge Suites and Hotel Indigo, said it was on track with its $1bn relaunch of its Holiday Inn brand with half its hotels operating under its new standards and seeing better performance.