InterContinental Hotels Group (IHG) has put £600m worth of hotels on the market, after announcing a strong financial performance for the first half of year.
Both managed and franchised hotels performed well in the six months to 30 June, as it announced the continuation of its disposal programme by hoisting a for-sale sign above its European portfolio.
The group’s interim results showed operating profit for hotels climbed 33% from £115m to £153m year-on-year, while managed and franchised hotels profit grew 16% to £134m (2004: £116m).
IHG announced 82 hotels had been disposed of in the first half of 2005 with proceeds of £1.2b. This included 68 Holiday Inns, four Crowne Plazas and one Holiday Inn Express.
Chief executive Andrew Cosslett pledged to strengthen the company’s brands and add 50,000 – 60,000 rooms by the end of 2008.
He said: “We have had a good first half with strong trading around the world producing a significant increase in hotels operating profit. We continue to make good progress on our asset disposal programme and returning funds to shareholders.”
IHG also announced today the sale of its Paris hotel to the real estate investment arm of the Singaporean government, GIC, for €315m (£214m). This was around €65m (£44m) above its net book value.
By Emily Manson
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