IHG’s Profit Drops 25 Percent; Red Lion Posts $4.5 Million Loss

InterContinental Hotels Group’s net profit dropped 25 percent in the first quarter, but CEO Andrew Cosslett said the credit crunch has had little impact on business.

The British company said its net profit was $68 million, compared with $91 million last year. Continuing operating profit was up 38 percent. Revenue (on a constant-currency basis) was up 10 percent, to $4.4 billion.

Red Lion Hotels, meanwhile, recorded a $4.5 million loss for the quarter on a slight increase in revenue. RevPAR was up 3.9 percent and room rates increased 3.3 percent, the company said.

The company also announced it had entered into an agreement to acquire the Radisson Hotel Denver Southeast, a 478 room hotel, for $25.3 million. The company said it plans to close on the property this quarter, and make $8 million in renovations.