19% Drop in Third Quarter Profits Reported by InterContinental

One of the world's largest hoteliers, the InterContinental Group has posted its third-quarter report, disappointing investors after revealing a 19% drop in profits. The company has shared that despite the slowly recovering economies all over the world, "trading environment remained challenging".

The InterContinental Group, which runs in excess of 641,000 rooms in 4,390 hotels and is made up of the elite InterContinental, Crowne Plaza and Holiday Inn brands, posted earnings of $124 Million for the July-September period for the current year. This is a significant fall from last year's figure of $153 Million for the same time.

Revenue posted by the company also saw a 15.2% fall, and it is being perceived that it was hit hard by the sharp fall in travel all over the world due to the financial downturn.

InterContinental shares on Monday closed at 842-1/2 pence, which pegged the value of the business at 2.36 Billion Pounds ($4 Billion).