InterContinental Hotels Group (IHG), which owns the Holiday Inn and Crowne Plaza brands, has reported a 25% drop in profits in the first half of the year. The fall has come despite a big expansion of its portfolio.
The company announced net profits of $163m for the first six months of 2008 today (August 12), down from $219m for the same period last year.
Revenue for the group rose 10.9% over the same period last year to $974m, thanks in part to an extra 13,071 rooms acquired by the group across its hotels.
Andrew Crosslet, IHG group chief executive says: “Growth looks set to continue as we have been signing two hotels a day into our development pipeline, which now stands at almost 1,800 hotels. The $1bn relaunch of Holiday Inn is progressing well and early feedback from our franchisees and our guests is encouraging.”
The company says the Holiday Inn relaunch ate into profits while gains from the 2007 sale of investments were not repeated.