InterContinental benefits from business travel increase

by Alister POOLE on October 26, 2010

As business travel picks back up, Intercontinental Hotels said its US room revenues have grown in the three months leading up to September.

According to CEO Andrew Coslett those that have invested in the firm during the economic downturn are seeing huge pay offs. InterContinental is the world’s biggest hotel firm according to room numbers. The hotelier reported growth across all of its brands with profits per available room (RevPAR) accelerating throughout the three-month fiscal period.

The hotel invested £630m in its Holiday Inn and Holiday Inn Express brands recently, which, according to the firm, is now bearing fruit. The Americas represent InterContinental’s largest market making up 50 per cent of the group’s revenues last year.

Analyst Simon Larkin at Nomura said that occupancy levels in the hotel sector in New York, Paris, London and Hong Kong were up across the board. Total RevPAR for the entire region was up 6.7 per cent during 2010’s third fiscal quarter.

Coslett said that the Americas’ trading conditions continue to improve and business travellers have returned this year in greater numbers. He added that customer and owner feedback for the Holiday Inn brand was positive.

However, hotels outside of key cities have only seen moderate growth, said a US-based accounting firm. InterContinental has yet to report its full figures for the third-quarter, which will be published 9 November.

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