The shares of Intercontinental Hotels lost nearly 2%, despite the fact that they have managed to beat first quarter forecasts. The profits for the three months to the end of March had escalated 15% to $83m, according to the owner of the Intercontinental, Crowne Plaza and Holiday Inn brands. The company shared that revenue per available room, rose for the first time in 18 months.

Chief Executive, Andrew Cosslett opined that Asia was leading the way and especially business travel witnessed the signs of recovery. The first quarter results were ahead of consensus. As hoteliers cut prices to fill rooms, rates remain under pressure elsewhere. Another thing that is noticeable is that the supply of credit to the hotel industry remains sternly controlled.

The company opined that the International Hotels Group's share price has gone too far and that also at a very good pace. The first signs of recovery are easily visible, but it seems that it is likely to remain weak, as they prefer cheaper alternatives in another place. Carnival is cheaperand also offers 'early cycle' recovery; Whitbread is cheaper and controls its own pipeline. While Millennium & Copthorne is more costly but tends to offer Asian exposure and higher recovery potential.