ICH sees profit rise in first quarter
InterContinental Hotels Group's profit rose in the first quarter of 2005, despite a stagnant European market.
In the three months to 31 March, managed and franchised hotels' profit increased by 9% from £53m to £58m.
Revenue per available room (revpar) in Europe, the Middle East and Africa grew by 3.1%, while the UK's Holiday Inn brand outperformed the market, growing revpar by 5.2%.
New international financial reporting standards and IHG's disposal programme also created £15m of savings, because no depreciation is chargeable on assets held for sale under the new regulations.
Industry consultant Chris Rouse from CBRE commented: "It's perhaps not surprising that the apparent economic malaise in the leading EU Continental economies looks to be retarding a return to significant improvement in hotel performance. Perhaps the mood might change after the EU referendums at the weekend."
Progress on the disposal of hotel assets continued, with the £34m sale of the Crowne Plaza United Nations hotel announced yesterday (26 May) being the latest deal.
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