InterContinental Hotels Group Plc, Europe’s second-largest publicly traded hotel operator, said first-half profit declined 8 percent as the company generated less revenue.
Operating profit before exceptional items and tax fell to $310 million from $338 million a year earlier, the Denham, England-based company said in a statement today. That beat $307 million, the average of 10 analyst estimates compiled by Bloomberg. Revenue declined by 3 percent to $908 million.
“Whilst several of our key markets continue to experience some political or economic uncertainty, we are encouraged by current trading trends,” Chief Executive Officer Richard Solomons said in the statement.
Marcato Capital Management LP, a hedge fund that owns about 4 percent of InterContinental, yesterday said it hired Houlihan Lokey to conduct a strategic review of the company to find ways to increase shareholder value. The owner of the Holiday Inn and Crowne Plaza brands said in its 2013 income statement that renovation costs would hurt earnings this year.
Revenue per available room, an industry measure of occupancy and rates, increased 5.8 percent globally and 6.7 percent in the Americas. Revenue in the Americas dropped 5 percent to $435 million.
InterContinental has a market value of 5.58 billion pounds ($9.4 billion). The stock climbed on May 27 after Sky News reported that the company had spurned a takeover bid that valued it at about 6 billion pounds.