IHG's first-half success
Posted by: Economist.com | LONDON
Categories: Hotels InterContinental
INTERCONTINENTAL HOTELS GROUP (IHG), the largest hotel group in the world, which includes Holiday Inn and Crowne Plaza among its seven brands, has posted a decent set of half-year results. For the six months to June, the group’s profit on continuing operations was $291m, a year-on-year increase of 28%.
IHG also announced that it had reached—six months early—the target it set itself in 2005 of adding 60,000 new hotel rooms. In the first half of 2008, it added a net total of 13,000 rooms, compared with 7,400 for the same period last year.
Andrew Cosslett, the company's chief executive, said the results "reflect what has been a generally benign environment for the industry as a whole". He cited increasing world wealth, a growing desire to travel and the increased spread of internet technology as reasons for the results, but expects tougher times ahead, especially in America.