InterContinental 2007 profits up 19%

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The group said that its revenue from continuing operations increased by 12 per cent in 2007 from 786 million to 883 million.

InterContinental owns just under 4,000 hotels worldwide and has attributed its growth to higher underlying revenue per room (RevPAR).

Andrew Cosslett, the Chief Executive, said, "We are continuing to strengthen our brands, and to expand their geographic reach. The 2005 relaunch of the InterContinental brand is now delivering major benefits, with significant RevPAR outperformance and a further 33 new hotels signed in the year.

"During the year we announced the relaunch of our biggest brand, Holiday Inn, and the response from our owner community has been very positive. Following continued success in the US, Hotel Indigo and Staybridge Suites will be opening in the UK in 2008, and we have plans for their wider geographic roll-out.

"We have the biggest development pipeline in the industry and this will deliver another high level of hotel openings in 2008. With our broadly based portfolio of brands and our resilient fee based business model we are positioned well for future growth in what is now a less predictable economic environment."

At 10:54am on Tuesday, shares in Intercontinental were up 1.69 per cent to 784.50 pence per share.