Profits increase at InterContinental

InterContinental Hotels Group (IHG) has revealed a 35 per cent increase in operating profit for the first quarter of financial 2011.

The largest hotel operator in the world in terms of rooms offered recorded profits of £68 million for the period, on the back of a nine per cent increase in revenues for the three months to March 31st this year.

Asia Pacific led the way in revenue increase thanks to the growing China market.

The Denham, UK-based operator said hotels in the region saw a 9.9 per cent rise in revenue per available room (revPAR) for the quarter – the highest growth of any region.

This was significantly ahead of the global average revPAR increase of 6.9 per cent.

“We delivered a strong set of results in the first quarter,” said Andrew Cosslett, chief executive officer of IHG.

“Our strategy to free up capital to drive growth for our brands is on track and we remain confident about the outlook for the rest of the year.

“Demand for our brands continues to strengthen with both guests and hotel owners.”

Mr Cosslett will leave the company on June 30th.

He will be replaced by Richard Solomons, who presently holds the dual roles of chief financial officer and head of commercial development.

Outside of its eponymous brand, InterContinental operates Crowne Plaza, Hotel Indigo, Staybridge Suites, Holiday Inn and Candlewood Suites.