US growth helps InterContinental book profits rise

By Daily Mail Reporter
Updated:

 

InterContinental Hotels checked in its first quarter results with a 43% rise in profits as the owner of Holiday Inn rode the wave of strong growth in the US and Asia.

InterContinental hotel on Park Lane

Rewarding stays: Revenue per available room is up

The world's largest hotelier booked a pre-tax profit of £57.5m compared to £40m last year as revenue per available room - the industry's key measure of strength - climbed by 6.9%.

Chief executive Andy Cosslett, who leaves at the end of June, pointed to rapid growth in China as well as improvement in the US, where the firm enjoyed its strongest growth since the second quarter of 2006.

Cosslett's last major initiative at the helm of IHG (up 49p to 1297.5p) was to lead an ambitious overhaul of Holiday Inn.

IHG's incoming boss Richard Solomons is expected to build on his predecessor's plans for major expansion in China, where IHG is recruiting and training thousands of staff to fuel its plans.

Revolutions in the Middle East, the Japanese tsunami and the earthquake in New Zealand will whittle around £12m off operating profits, the firm said.

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