Intercontinental´s Profits Hit Snag in Third Quarter

Intercontinental Hotels Group has reported a nearly 15 percent fall in third-quarter operating profits. The group operating profit skidded from £102 million to £87 million, due to disposals of owned hotels.

The group said its outlook for the full year was positive and promised more cash for shareholders.

The net income fell to 44 million pounds ($76 million), or 9.7 pence a share, from 78 million pounds, or 11 pence, a year earlier, as per the information available.

According to Reuters, Morgan Stanley said the company had produced a good set of results. “With good momentum in trading, further cash returns, and an accelerating pace of consolidation, we remain positive,” analysts at the investment bank reportedly said.

Revenue per available room, an industry measure of profitability, rose 8.8 percent in Intercontinental hotels, driven by increased rates in the U.S., where the figure climbed 11 percent. In Europe, the Middle East and Africa, the figure rose 5.2 percent, with a 0.6 advance in the Asia Pacific region.