The group recorded profits of $179 million (£108.7 million) for the six months to June 30. Revenue also fell by 25% to $726 million (£441 million) year-on-year.
IHG says that it has outperformed the market in each of its three geographic regions but its first half RevPAR (revenue per available room) saw a first quarter drop of 16.2% and its second quarter by 18.6%. REvPAR in the EMEA region saw the biggest fall at 15.1%, although the UK was noted as one of the more resilient markets.
EMEA revenues fell 31% to $186 million (£112.9 million).
The hotel industry has been hard hit by the recession and subsequent slowdown in business travel. There has been a focus on leisure travel to try to compensate for sliding revenues and ICH reports that July “benefitted from stronger leisure demand.”
IHG has been driving to improve efficiencies and the group is on track to exceed targets for cost reductions for 2009.
Chief executive Andrew Coslett says: “Trading was very challenging throughout the first half of the year and we expect the remainder of 2009 to be tough. We have made good progress on improving efficiency and reducing costs as we make more effective use of our scale. We will continue to invest behind our system to drive revenue and grow market share.”
He added that the continued performance of ICH brands globally was “encouraging” and that the group was on track to open more then 400 hotels this year.
Earlier this year the group appointed Mindshare to handle its £80 million media planning and buying business
It has signed up its Holiday Inn and Express by Holiday Inn brand as tier three sponsors of the London Olympics 2012
It launched two new hotel brands into the UK last year under the Staybridge Suite and Hotel Indigo.