InterContinental Hotels report favourable trading and record demand

InterContinental Hotels today reported favourable current trading with record demand and low supply growth of new hotels on Tuesday which helped the world's biggest hotelier to beat half-year earnings forecasts with a 23 per cent rise.

"Whilst we continue to monitor the uncertain economic outlook, we look forward with confidence in the currently favourable hotel trading environment of record demand and low supply growth in many markets," said new Chief Executive Richard Solomons who took over from Andrew Cosslett on July 1.

The hotelier, which runs over 4,400 hotels, posted first-half operating profits up 23 percent at $269 million compared to a company compiled consensus of $256 million while half-year sales rose 10 per cent to $850 million.

The half-year dividend rose 25 percent to 16.0 US cents.

The group said first-half global revenue per available room (RevPAR), a key industry measure, grew 6.7 per cent, with an 8.2 per cent rise in the United States, while global RevPAR rose 5.6 per cent in July.