Companies cut back15 Feb 2009 15:58
In recessionary times one of the first things companies cut back on is travel allowances, and this spells bad news for InterContinental Hotels (IHG), the Holiday Inn and Crowne Plaza hotel chain operator, which declares full-year results on Tuesday.
Tourism spending is also suffering as a result of the recession, and although IHG is expected to achieve a commendable 53% increase in earnings per share over 2007’s performance, analysts have been shifting their earnings forecasts down to take into account weaker trends in the fourth quarter.
IHG reported last year that global revenue per available room (RevPAR) declined 4.5% in October while US RevPAR dipped 5.7%, reversing the growth trend seen in the third quarter.
Expectations are for profit before tax of £285.26 on revenue of £1,301m. The full year dividend is expected to be 26.98p, which would make the yield around 4.7% at IHG’s current price."