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IHG suffers as business clients don’t check in

November 12, 2009 | Hospitality Industry

High spending business clients have yet to return to InterContinental Hotels in any great numbers, and the shortfall is not being made up by leisure customers, judging by its latest update.

The group, the world’s biggest hotelier whose brands include Crowne Plaza and Holiday Inn, said third quarter revenues and operating profits had both fallen by 19%. Revenues per available room (RevPar) - a key industry measure - dropped by 15.2% in the third quarter although the decline narrowed to 13.5% in October. Chief executive Andrew Cosslett said:

The trading environment remains challenging. We see signs of occupancy stabilising but rate is still under considerable pressure across the board. The relaunch of Holiday Inn is gaining pace and continues to make a significant difference to the prospect of our biggest brand.

He maintained the company - which manages or franchises hotels rather than owning them - was well positioned “to lead the industry when the upturn comes” because of the “unique relationship” with its hotel owners along with its global scale and diverse brand portfolio.

Get the full story at the Guardian

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