Byline: NEIL HODGSON
THIRD-QUARTER figures from InterContinental
Hotels Group have beenwell received by analysts, despite falling revenues and profits.
The
hotels giant - whose local interests include two Crowne Plazasin Liverpool and Speke, a Holiday Inn, Holiday Inn Express, business-oriented Staybridge Suites and plans for a new "cool" pounds 14m 151-room Indigo
hotel in Chapel Street for 2011 - revealed that turnoverdropped 19% to pounds 240m and pre-tax profits after exceptional charges fell 33% to pounds 80m in the three months to September 30.
Chief executive Andrew Cosslett said: "The trading environment remains challenging."
But he added that while rates were still under pressure, there aresigns of occupancy stabilising.
Last month the group's European, Middle East and Africa president Kirk Kinsell told LDP Business that he had seen signs of a return in stability in the corporate travel sector at the group's Staybridge Suites site on Kings Dock.
Liverpool stockbroker Panmure Gordon's note on the results was fairly upbeat.
It said the pre-tax profits, excluding exceptional charges, were 30% ahead of consensus.
And it welcomed news that October's revenue per available room wasdown 13.5% compared with 15.2% during the threemonth reporting period, "demonstrating good improvement".
Overall, Panmure Gordon said it stands by its "buy" recommendationfor InterContinental
Hotels Group's stock.
Mr Cosslett bemoaned the fact that there is still scarcity of finance for
hotel developments.
Consequently, while the relaunch of the core Holiday Inn brand continues with 1,378
hotels now operating under the new standards, the group says the need for cost controls remains vital.
The trading update confirmed that the group is on target to achieve cost savings of around pounds 48m by the end of the current financial year, of which at least pounds 24m will be "sustainable savings".
It added that by the end of 2010, compared with 2008 levels, the group expects to achieve "sustainable cost savings" of between pounds 39m and pounds 42m.
CAPTION(S):
An artist's impression of the proposed 151-room pounds 14m
Hotel Indigo set to open in Liverpool in 2011
and Directories
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