2010 ends with a bang for InterContinental

Intercontinental Hotels Group, the world's biggest hotelier, yesterday hailed the "sharpest recovery in its history" during the final months of 2010.

Underlying operating profits jumped 22 per cent to $444 million (275m) in 2010, on the back of revenues rising by 6 per cent to $1.6 billion.

IHG - which owns the Holiday Inn and Crowne Plaza brands - said average revenues per room were up 8.4 per cent in January, but it expects a $3m hit from the unrest in Egypt.

The group raised its final dividend for the first time in three years, up 16 per cent to 48 cents. IHG makes about two-thirds of its profit in the United States.

In Scotland, IHG has 27 hotels and is in the process of opening a further three. Around the world, the firm has more than 4,500 establishments spread across 100 countries.

Finance director Richard Solomons said: "We are seeing some solid growth."

He said the recovery had begun in Asia, with rising demand from business travellers, but was now looking "very broad based", aided by the revamp of its Holiday Inn chain. The group is also selling its flagship InterContinental New York Barclay hotel.