Hotels group gets profits boost

The group operates more than 3,800 hotels around the world

Intercontinental Hotels has reported a 22% rise in quarterly profit, saying its business remains unaffected by financial market turmoil.

The British-based group said its continuing operating profit went up to £66m ($137.4m) in the third quarter, meeting analysts' expectations.

The group operates seven hotel chains, including the Intercontinental, Crowne Plaza and Holiday Inn brands.

More than 70% of its profits come from its US business.

'Cautiously optimistic'

The group said revenue per available room - a key measure of hotel performance - rose 5.6% in the US.

"The mood is cautiously optimistic and our business remains unaffected by any wider economic issues," chief executive Andrew Cosslett told reporters.

"This is good progress, more than half way to top our target and we remain on track to exceed that target by the end of 2008."

The group operates more than 3,800 hotels around the world. It has sold 179 hotel assets worth £3bn since April 2003.

Intercontinental Hotels now owns 20 hotels and plans to sell a further three.

The hotelier is now largely a manager or franchiser, like its three big US rivals - Hilton, Starwood and Marriott.