see all jobs
IHG starts to suffer from downturn
InterContinental Hotels Group (IHG) has reported a “sharp deterioration” in market conditions, signalling that the hotel industry is starting to suffer from the current economic downturn.
In the company’s results for the third quarter to 30 September, IHG saw its global RevPAR (revenue per available room) up 1.6 per cent, and its total gross revenue up 8 per cent to US$5.1bn (£3.32bn). However, its profit dropped 28 per cent from US$127m (£82.5m) to US$91m (£59.1m).
Andew Cosslett, chief executive, said: “In October we have seen a sharp deterioration in market conditions with preliminary data for the month showing a global RevPAR decline of 4.5 per cent, with a decline of 5.7 per cent in the US.
“Throughout 2008, we have been controlling costs and capital spending tightly and we are taking the necessary steps to manage both to be below this year’s levels in 2009.”
Cosslett also said that the financial climate was “impacting the availability of debt finance and new hotel signings are taking longer to finalise”.
More News
- News by sector (all)
- All news
- Fitness
- Personal trainer
- Sport
- Spa
- Swimming
- Hospitality
- Entertainment & Gaming
- Commercial Leisure
- Property
- Architecture
- Design
- Tourism
- Travel
- Attractions
- Theme & Water Parks
- Arts & Culture
- Heritage & Museums
- Parks & Countryside
- Sales & Marketing
- Public Sector
- Training
- People
- Executive
- Apprenticeships
- Suppliers