InterContinental says profits will be lower

Hotels group InterContinental today said second quarter profits would be “substantially lower” than last year after a grim start to 2003.

The group – formed following last week’s demerger of Six Continents – has been hit by the impact of the Gulf war, and more recently, the SARS virus.

Issuing a trading update today, chief executive Richard North described the conditions as some of the worst the industry has ever encountered.

The figures for the three months to March 31 show InterContinental’s Europe, Middle East and Asia business had been most affected by the tough climate.

With US guests staying away, the division’s InterContinental hotels suffered a 9.6% year-on-year drop in revenues per available room during March.