Hotel group sees rise in profits

LONDON – InterContinental Hotels Group announced yesterday that its net profit increased by 26 per cent, partly reflecting gains from ongoing business restructuring.

Group net profit stood at 515 million pounds (about N$5,6 billion) last year compared with 2004’s performance. InterContinental said it was continuing with its cash distribution programme, funded by proceeds from asset sales.Following disposal of its shares in Britvic, Britain’s second-biggest soft drinks company, for 371 million pounds, the group announced a further 500 million pounds in special dividends to be paid to shareholders during 2006.InterContinental also raised its annual dividend by 7,0 per cent to 15,3 pence.Cost cutting and asset disposals mitigated the 13,0-per cent fall in group revenues to 1,91 billion pounds last year.Operating profit, meanwhile, grew 7,0 per cent to 317 million pounds.The group said it would press ahead with its policy of asset disposal to concentrate on management and franchising.Last January, IHG announced plans to sell 13 of its hotels portfolio, including seven in Europe.The seven comprised the InterContinental Amstel Amsterdam, InterContinental Budapest, InterContinental Carlton Cannes, InterContinental De La Ville Rome, InterContinental Frankfurt, InterContinental Madrid and the InterContinental Vienna.IHG has now sold 126 owned and leased hotels.-Nampa-AFPInterContinental said it was continuing with its cash distribution programme, funded by proceeds from asset sales.Following disposal of its shares in Britvic, Britain’s second-biggest soft drinks company, for 371 million pounds, the group announced a further 500 million pounds in special dividends to be paid to shareholders during 2006.InterContinental also raised its annual dividend by 7,0 per cent to 15,3 pence.Cost cutting and asset disposals mitigated the 13,0-per cent fall in group revenues to 1,91 billion pounds last year.Operating profit, meanwhile, grew 7,0 per cent to 317 million pounds.The group said it would press ahead with its policy of asset disposal to concentrate on management and franchising.Last January, IHG announced plans to sell 13 of its hotels portfolio, including seven in Europe.The seven comprised the InterContinental Amstel Amsterdam, InterContinental Budapest, InterContinental Carlton Cannes, InterContinental De La Ville Rome, InterContinental Frankfurt, InterContinental Madrid and the InterContinental Vienna.IHG has now sold 126 owned and leased hotels.-Nampa-AFP