Intercontinental Hotels report $29 mn net loss

Intercontinental Hotels report $29 mn net loss

London: Intercontinental Hotels Group (IHG) said on Tuesday that it suffered a net loss of $29 million during the first half of 2009 and said the rest of the year would be tough for them.

InterContinental, the world’s biggest hotel operator by number of rooms, said its net loss compared with profit after tax of $163 million in the first six months of 2008.

The company said it was responding to the “challenging" environment by improving efficiency levels and reducing costs.

“Trading was very challenging throughout the first half of the year and we expect the remainder of 2009 to be tough," IHG chief executive Andrew Cosslett said in comments accompanying the results.

“The outlook remains challenging, but we are confident that with our fee-based business model, substantially reduced cost base, strong financial position and the renewal and refreshment of our brands supported by our system scale, we will outperform the competition and be well positioned for the upturn," he said.