Hotels group doubles profits

InterContinental Hotels reported a doubling in first quarter profits today as it continued to see a pick-up in conditions on both sides of the Atlantic.

The group owns, manages, leases or franchises more than 3,500 hotels and 538,000 rooms in almost 100 countries, including Holiday Inns in Letterkenny, Kilkenny, Dublin and Belfast as well as a Crowne Plaza hotel in Dublin.

The group said it had been encouraged by recent trading after operating profits at its hotels division lifted 51.7% to £44m (€65.9m) in the first three months of 2004.

" We are of course very encouraged by these increases," said head of corporate affairs Dee Kayhill, "even if they are against weak comparables due to global issues last year such as SARS, the Iraq war and a generaly weakened economy."

Soft drinks business Britvic added to the growth with a 25% rise in profits to £10m (€15m) – leaving the bottom-line figure 100% stronger at £50m (€74.8m).

The growth, which is against weak figures last year, has continued into April with further signs of a recovery in North America and the UK.

There have also been indications of a fledgling recovery in Europe while the company added that trading in Asia Pacific had returned to pre-Sars levels.

Despite the upturn, chief executive Richard North said a focus on efficiency would continue after the first year since the demerger from pubs group Mitchells & Butlers produced lower overheads and reduced capital spending.

He added: “Whilst we are encouraged by the results this quarter, we continue to concentrate on improving business efficiency in order to unlock more potential and further enhance returns.”