Restaurants | Hotels | Pubs & Bars

FREE Digital Edition of Restaurant magazine now available to view. Click here for free access!

News

Business
Venues
Events & Awards
People
Trends & Reports
Legislation
New Products
All news

News > Business

IHG braces itself for tough 2009

By Emma Eversham , 17-Feb-2009

Related topics: Business

The international hotel group posts good results for 2008 but predicts a tough 2009

Intercontinental Hotel Group (IHG) saw profits rise 13 per cent worldwide last year, but has warned of `tough` times ahead.

 

The Holiday Inn, Crowne Plaza and Intercontinental Park Lane owner made a profit of $535m in the year to December 31 2008.

 

However, the group said there was a `sharp deterioration` in fourth quarter trading with revenue per available room (RevPAR) dropping 6.5 per cent. And the situation worsened in January with RevPAR falling nearly 12 per cent across the Europe, Middle East and Africa zone.

 

IHG Chief executive Andrew Cosslett said good results in 2008 meant the group had exceeded its three year target to add up to 60,000 rooms to its estate and was committed to a $1bn programme to relaunch Holiday Inn.

 

However, he said the trading environment was `very tough` and said the decline which started in November was not expected to turn around.

 

He said: "It has been clear for some time that 2009 will be a challenging year and we have taken action to prepare the business, including strict management of cash and a significant reduction in costs. The actions we have taken to move the business to an asset light model with strong brands, scale advantage and leading technology and reservation systems position us well to grow market share in the testing times ahead.”

 

IHG opened 21 hotels in the UK in 2008, adding 2,460 new rooms and introduced a new brand - Hotel Indigo - to the market.

Keywords: Intercontinental Hotel Group, IHG, Crowne Plaza, Andrew Cosslett, financial results, Holiday Inn

Copyright - Unless otherwise stated all contents of this web site are © 2013 - William Reed Business Media Ltd - All Rights Reserved - For permission to reproduce any contents of this web site, please email Robert Proctor - Full details for the use of materials on this site can be found in the Terms & Conditions

Related Articles on this topic

Latest news in Business

BigHighlights

Andreas Antona: Pearls of Wisdom

Andreas Antona: Pearls of Wisdom

The chef opened Simpsons in Kenilworth, Warwickshire, more than 20 years ago, relocating the Michelin-starred favourite to Birmingham...
Focus on wine: Sommeliers share their restaurant's top food and wine pairings

Focus on wine: Sommeliers share their restaurant's top food and wine pairings

We've seen which regions are top of the wine list, now to find the food to go...
Business Profile: Kimchee

Business Profile: Kimchee

After the phenomenal success of Holborn’s Kimchee restaurant, Wasabi owner Dong Hyun Kim is bringing Korean food to...
Jonathan Neame: Beer duty cut has given Shepherd Neame confidence to invest in 40 pub projects

Jonathan Neame: Beer duty cut has given Shepherd Neame confidence to invest in 40 pub projects

Jonathan Neame, chief executive of brewer and pubco Shepherd Neame, has revealed the cut in beer duty...
Joseph Kirtley: Career Profile

Joseph Kirtley: Career Profile

American-born Joseph Kirtley started out as a bellboy at Miami Beach's Delano Hotel before climbing the ladder...

Most Popular News

  1. Luminar to unveil new 'blueprint' for its venues with £1m Bristol refurb
  1. Guoman Hotels brand to be 'retired' as Guoman Hotel Management is rebranded as glh.
  1. Craft Guild of Chefs Awards 2013: James Martin wins Special Award
  1. Cattle Grid owners secure first Poulet Rouge site
  1. Boris Johnson gets behind London’s small food businesses

Find us on Facebook

Audio & video news

People on the Move in Hospitality: June 2013
National Waiters Day: A day in the life of a maître d’ with Paulo de Tarso
Focus on wine: What it takes to be a top sommelier

Digital Edition - Restaurant Magazine

Access to the Restaurant Magazine digital edition

Monthly business Magazine of the year

Pub news and property

M&C Report

The Grocer - Grocery retail news

Food manufacturing news

Contact us | About us | Advertise with us | Recommend this Site | Terms & Conditions | Privacy and Cookie Policy | Site map | Feeds

Jobs: Restaurant Jobs | Hotel Jobs | Pub Jobs | Hospitality Jobs

© William Reed Business Media Ltd 2013. All rights reserved. William Reed Business Media Ltd. Registered Office: Broadfield Park, Crawley RH11 9RT
Registered in England N°. 2883992. VAT N°. 644 3073 52.