Net assets of euro 2.1 billion ($2.6 billion) equate to about 500p per share, a significant premium to the current share price. But the chairman indicates a wariness about following rivals down the route of massive sale/leasebacks. "While the market is still recovering, it is not the best of times to sell," Kwek says. "In a recovering market, the potential earnings uplift is tremendous."

Over the past year, the hotel industry has seen a wave of disposals or sale/leasebacks. Last month the Savoy Group was sold for euro 1.1 billion ($1.4 billion) to Quinlan. The latest to go to market is budget hotel operator Travelodge, which has instructed CB Richard Ellis to sell its entire 136-strong portfolio for around euro 605.3 million ($730 million). Now, there is market speculation that InterContinental will put its euro 1.5 billion ($1.8 billion) portfolio up for sale next month when it publishes interim results.

The M&C review will also look at which hotels may be suitable for casinos. Top of the list is the 832-room Copthorne Tara in Kensington, West London, which could accommodate a 50,000-sf casino, and the Copthorne Effingham Park, near Gatwick. "Many of our provincial hotels have plenty of land, so there is a lot of potential," says Kwek. "But it depends on deregulation."

The company announced half year pre-tax profits of euro 31.2 million ($37.6 million) against losses of euro 9.5 million ($11.5 million) for the same period last year. Occupancy levels across the company's 90 hotels rose from 61.1% to 69% while comparable revenue per available room was up 12%, led by New York, Asia and London.