X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-Hotels group InterContinental has issued a profits warning saying second results would be “substantially” worse than last year.

The group, formed following the demerger last week of Six Continents, has been badly affected by the war in Iraq and then the SARS virus. Chief executive Richard North described the conditions as some of the worst the industry has ever encountered.

Worst hit was InterContinental’s Europe, Middle East and Asia business. With US visitors choosing not to travel, the division suffered a 9.6% fall in revenues per room during March. The fortunes of the UK-based Holiday Inn were similarly hit with London reporting a 9.2% fall in guests. In America, performance held up better and the InterContinental brand achieved revenue growth of 3.7% for the month.

The company has also estimated the cost of the demerger and fighting off a takeover bid by Hugh Osmond at £129 million ($205.5 million).

Some of these costs will be recoupted from cost-cutting programme designed to save £63 million ($100 million) a year. Some savings are expected from job cuts and some from a move of headquarters from London to Windsor.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.