InterContinental quarterly profit up 22 percent

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The British-based group, which operates InterContinental, Crowne Plaza and Holiday Inn hotels, said on Tuesday that operating profit at continuing operations rose 22 percent to 66 million pounds ($137.4 million) in the three months to September 30, meeting an average forecast of 66 million by five analysts.

"We haven't seen any impact (of financial market trouble) on our pipeline ... The mood is cautiously optimistic and our business remains unaffected by any wider economic issues," Chief Executive Andrew Cosslett told reporters.

"Corporate rate negotiations look encouraging at this stage and we don't see any change in the activity levels in our hotels ... 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," Cosslett said.

The group said in August it was confident it will exceed its 3-1/2 year target to open 50,000 to 60,000 net new rooms by the end of 2008.

The company, which operates more than 3,800 hotels globally, said on Tuesday it had signed up 29,379 rooms in its fiscal third quarter, up 18 percent from a year ago, and its development pipeline rose 28 percent since the start of the year to 201,776 rooms.

The hotelier, which earns over 70 percent of its profit in the United States, said revenue per available room, a key measure of hotel performance, rose 5.6 percent in America as InterContinental and Crowne Plaza outperformed market segments.

Asia Pacific region showed the strongest performance with 8.6 percent growth in revenue per available room.

By 0905 GMT, InterContinental shares were down 0.9 percent to 1,041p after rising as high as 1,072p.

The shares have recovered strongly from a year low of 913-1/2 pence in late September.

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