InterContinental profits up

By Mike Elliott

LONDON (Reuters) - InterContinental Hotels Group (IHG.L), the world's largest hotelier, reported a 22 percent rise in first-quarter profit and said it was well placed for further growth despite an economic downturn.

The company, which operates InterContinental, Crowne Plaza and Holiday Inn hotels, said it had seen little impact from the credit crunch on its ability to sign new deals.

"Since the credit crunch began, and let's say that was the end of September, we've signed 418 deals around the world, and most of those were in the (United) States," Chief Executive Andrew Cosslett said on a conference call on Wednesday.

The company added 5,267 net new rooms in the first quarter, more than double the increase in the same period last year.

InterContinental has a 3-1/2 year target to open 50,000 to 60,000 net new rooms by the end of 2008. The total stood at 53,000 at the end of the first quarter.

"(We are) well on track to exceed the target," Cosslett said. "Our outlook for the rest of the year remains positive."

Underlying operating profit was 55 million pounds for the three months to March 31, up from 45 million last year. The average profit forecast of five analysts polled by Reuters was 53.9 million, in a range of 51.5-57.0 million.

The profit figure excluded 7 million pounds of liquidated damages as a result of one hotel leaving the pipeline. Cosslett said such events were "fairly routine" in the business and that it only highlighted it because the size was bigger than most.