The InterContinental Hotels has reported that the first-quarter net profit fell to $27 million from a previous high of $62 million a year ago.
Mr. Andrew Cosslett, Chief Executive of InterContinental Hotel Group PLC commented: “As expected the start to the year has been very challenging for the industry. Occupancy showed signs of stabilization in the quarter, but room rates, which held up well during 2008, declined under the pressure of a very competitive market.”
The revenue per available room fell 13.6% and the total revenue went down 56% from 448 million last year to $342 million this first quarter of 2009. However, Mr. Cosslett is positive that the brand will continue to perform well regionally and in the U.S.
In a time of recession and global economic crisis, the hotel industry has reported a significant decrease in revenues. The InterContinental Hotels are taking decisive action on costs while maintaining their investment in the relaunching of the Holiday Inn brand hotel.
According to the report, the InterContinental Hotels have more than 700 relaunched hotels which remain in the system to be completed by 2010.