Intercontinental Hotels 1Q Profit Down 56 Pct

"On the downside, the group's exposure to the U.S. economy remains considerable, whilst trading across the industry remains on a downward trajectory. On balance, and allowing for a near halving in the share price since the credit crisis begun back in mid 2007, current consensus opinion denotes a neutral investment stance," Bowman said.

Intercontinental said operating profit from continuing operations in North America declined 46 percent to $60 million. Revenue on a comparable basis declined 26 percent to $170 million, with RevPAR down 13.5 percent, though Intercontinental said its U.S. hotels, concentrated in the mid-price range, were outperforming the industry average.

Trading in China was particularly weak, with RevPAR down 20 percent, while the Middle East was the company's most resilient market, with revenue per room falling 11.5 percent.

Intercontinental suggested that the slump in demand may be bottoming out, but that competition was intense.

"Occupancy showed signs of stabilization in the quarter, but room rates, which held up well during 2008, declined under the pressure of a very competitive market," said Andrew Cosslett, the group's chief executive.

"The outlook remains tough but we are taking decisive action on costs without compromising our ability to continue to grow market share," he added.