Room rates are still under pressure as business travellers stay home and trading continues to be tough.
This is the message from InterContinental Hotels which released financial results today which showed profits fell 34%.
However, this figure was an improvement on expectations by the world’s largest hotel group which has the Crowne Plaza and Holiday Inn brands. The group said occupancy had, however, stabilised in the fourth quarter.
Chief Executive Andrew Cosslett said: “The fourth quarter did show some improvement in trends and occupancy has now stabilised. Rates however remain under pressure and we expect trading to stay tough until business travellers return in greater numbers.”
InterContinental said revenue per available room (RevPAR) fell by 14.7 percent in 2009, with a fourth quarter fall of 10.9 percent, while the January 2010 decline was just 3.8 percent.
By Dinah Hatch
