Intercontinental Hotels 1Q Profit Down 56 Pct

ROBERT BARR

LONDON (AP) — InterContinental Hotels Group PLC, whose chains include Crowne Plaza and Holiday Inn hotels, reported Tuesday that first quarter net profit fell 56 percent to $27 million, hit by weaker consumer spending during the recession and strong competition, which depressed room charges.

The profit figure included exceptional costs of $21 million for a final payment to the U.K. pension fund and $5 million for the relaunch of Holiday Inn. Revenue was down 24 percent to $342 million.

Intercontinental Hotels shares rose 5 percent to 691 pence on the London Stock Exchange.

"Good results against a terrible backdrop," said James Ainley, analyst at Panmure Gordon & Co.

Revenue per available room (RevPAR) was down 13.6 percent on a constant currency basis, but Ainley said that was better than the results for Intercontinental's rivals.

"Costs are still being removed, whilst a steady flow of new rooms continue to come on stream," said Keith Bowman, analyst at Hargreaves Lansdown Stockbrokers.