The world’s biggest hotel group, Intercontinental Hotels, has reported that it has seen virtually no sign of recovery, and it could take years for trade to return to the levels it once was.
The group, which operates both the Crowne Plaza and Holiday Inn brands, said that the recession was continuing to have an effect on travel budgets.
Operating profits fell 38% to $179 million in the first half of this year.
The group said that while occupancy levels were evening out, room prices were under pressure.
“We can’t see any sign of recovery and it could be two years before we get back to levels of travel we were at before,” said chief executive Andrew Cosslett.
“This is one of the toughest years on record with little respite and it will continue to be challenging this year and into next.”
The group added that while reservations for July had benefited from improved demand from leisure travellers, it could not predict future booking trends.
The Intercontinental group has 4,300 properties worldwide consisting of over 630,000 rooms.
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