Afternoon:
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Holidaymakers are cutting trips short, business people are trading down and there's no money to build new hotels.
That was the glum message today from InterContinental Hotels Group (IHG), the world's largest hotelier.
Sales in the third quarter — the three months to the end of September — slumped by 19% to $401 million (£241 million).
Profits followed, down 19% to $124 million, as wider economic troubles took their toll on the group.
Chief executive Andrew Cosslett is optimistic in the medium term, but just now he has to be cautious and sees no way of raising room prices.
“We see signs of occupancy stabilising, but rate is still under considerable pressure across the board,” he said. “Our signings pace remains impacted by the continued scarcity of financing for hotel developments.”
IHG says that trading has been “particularly tough” in New York, though closer to home the InterContinental hotel on Park Lane has enjoyed a “relatively strong performance”, perhaps because some rivals have been closed for refurbishment.
