InterContinental Group suffers slight dip, as customers protect their pockets.

InterContinental Hotels Group (IHG) has reported a disappointing first half of the year, as it reveals profits have dipped by 25% to $726 million (£441m).

IHG comprises of seven of the top hotel brands in the world, including Crowne Plaza, Holiday Inn and the prestigious Intercontinental Hotels and Resorts. It boasts 620,000 rooms in more than 4,200 hotels. The group said it has added to this volume in the last six months with 117 hotels and more than 9,000 rooms, a rise of 5% year on year. 

Asia-Pacific and the Americas have seen some of the biggest losses for the hotel group, with a drop of 41% in operating profit from $29m to $17m for Asia, and a decline in profit of 40% to $149m for the Americas.

IHG’s Priority Club has performed well, however, as its popularity continues on the up. Membership has increased by 2m to 44m compared to the end of 2008.

Andrew Cosslett, Chief Executive of IHG, commented on the results: “Trading was very challenging throughout the first half of the year and we expect the remainder of 2009 to be tough.

“We have made good progress on improving efficiency and reducing costs as we make more effective use of our scale. We will continue to invest behind our system to drive revenue and grow market share.”

IHG has recently given its Holiday Inn brand a $600m facelift, and its UK owner, Kew Green Hotels, has put the finishing touches to its 15 UK hotels, as announced by IHG earlier this month.

Paul Johnston, Managing Director of Kew Green Hotels, said: “We see the downturn as the right time for people to reassess brands they may not have tried for some time. We’re hoping business and leisure travellers will try out our hotels now and keep coming back. We’ve made a big investment and it’s rewarding to see the results.”