Intercontinental facing slowdown

Holiday Inn-owner Intercontinental Hotels has reported a 29% rise in half-year profits but said revenue growth has slowed in recent months.

Operating profits at Intercontinental's continuing operations rose to $284m (?149.4m) in the six months to 30 June.

But the firm said growth in revenue per available room - a key indicator - had slowed in recent months.

Revenues per room rose 4% on a constant currency basis in the first six months, but growth slowed to 3.4% in July.

In its US market - where the group earns almost 70% of its profits - growth in room revenues slowed to just 1.5%.

Cautious outlook

"Market conditions have become more challenging, particularly in the US," said chief executive Andrew Cosslett.

"However, the long-term trends for the travel industry remain positive and our broad portfolio of brands and fee based business model positions us well to take full advantage of this."

But Intercontinental's chief remained upbeat about the future, adding that the firm had benefited from a swift expansion. It had met its target of adding more than 60,000 new rooms to its portfolio since June 2005 three months ahead of schedule.

Intercontinental operates more than 4,000 hotels across the world.

Source: BBC News