InterContinental Hotels (IHG), the hotels business of the former Six Continents group, has reported results for the six months to 30 June showing pre-tax profits down 30.8 per cent on the same time last year.

On turnover down from £1,080m in June 2002 to £1,043m, group EBITDA and operating profit were down 14.5 and 27.4 per cent respectively.

The hotels sector saw EBITDA down 16.5 per cent to £162m and operating profit down 31.7 per cent to £86m. Soft drinks were much better, with EBITDA up 7 per cent to £61m and operating profit up 14.7 per cent to £39m.

Commenting on the results, chief executive, Richard North, said: "Trading conditions in the first half of this year have been as bad as anyone in the global hospitality industry can remember. We said in May that we saw no evidence of a sustained recovery in trading and I have to say that little has changed since then to alter our view."

He continued: "We believe that an improvement in RevPAR in the US during the summer was leisure driven and remain to be convinced that there has been an upturn in demand from the business traveller. The UK has seen some improvement but Western Europe remains uncertain. Asia Pacific is continuing its recovery post-SARS but has yet to regain all the ground lost."

However, the company is focusing on revenue generation, the reduction of overhead costs and a lowering of capital intensity and – with progress beginning to be seen in these areas – is "positioning itself for recovery when it comes". Details: www.ihgplc.com