InterContinental warns trading still challenging

InterContinental Hotels, the world's biggest hotelier, said it was too early to forecast a recovery as trading conditions remained challenging after posting a 19 per cent fall in third-quarter operating profit. The group, whose brands include InterContinental, Crowne Plaza and Holiday Inn, said on Tuesday that adjusted operating profit fell to $124 million from $153 million a year ago. InterContinental, which manages or franchises hotels instead of owning them and earns 70 per cent of its profit in the United States, has seen profits impacted as businesses hit by the global financial crisis cut back on travel expenditures. Chief Executive Andrew Cosslett said the environment remained difficult with room rates falling as a result of a greater dependence on leisure travellers. "We see signs of occupancy stabilising but rate is still under considerable pressure across the board," he said.