InterContinental Hotels Group expects to exceed its three-year plan to open 50,000 to 60,000 additional rooms by the end of 2008, and announced franchise and management deals that will add 23,000 rooms. The Times. Daily Telegraph. Financial Times
Andrew Cosslett, chief executive, said that after signing up nearly 22,631 extra rooms during the first quarter of the year – a 25% increase on the same period of 2006 – he was confident of beating the top end of the target range.
Even so, he admitted opening more than one hotel a day on average between now and the end of 2008 was 'still a big challenge'.
Intercontinental reported a 5% rise in operating profits of £44m for the first quarter of 2007.
Despite the strength of sterling against the dollar, US tourists had returned to the capital in force, the memory of the 7/7 bombings having receded.
Based on constant exchange rates, the rise would have been nearer 19%. Group sales rose 10% to £194m for the quarter but would have been 20% higher on a constant currency basis.