InterContinental Hotels Group warned it could take two years for trade to return to previous levels after it swung into a pre-tax loss of $50m (£30.3m) for the first half.

The world’s largest hotel group measured by number of rooms said that while occupancy levels were stablising, room rates remained under pressure as rival operators fought for customers with deep discounting.

'While the first furore of optimism might start to hit the business world in general, I think it’s going to be some time for the hotel industry because we are a lag industry,' said Andrew Cosslett, chief executive of the group, which owns the Intercontinental, Crowne Plaza and Holiday Inn chains.

Daily Telegraph, Daily Telegraph