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InterContinental Hotels, the world's largest hotelier, unveiled a steady set of interim results as it continues its transformation from a hotel owner into a manager of high-end hotel brands. The group, which operates the Crowne Plaza and Holiday Inn chains, has been selling off its properties, returning cash to shareholders and focusing on hotel management. It has sold off 178 hotel properties since 2003, generating proceeds of £3bn. Since March 2004, the company has returned £3.45bn to shareholders. InterContinental reported today that underlying operating profit rose by 5pc to £111m in the six months to June, as it was boosted by the strength of its brands in China. However, profit before tax actually fell by 14pc to £130m due to the weakness of the dollar and the effect of a number of hotel disposals. Andrew Cosslett, chief executive of InterContinental, said that the group has "had a good first half" and that the outlook was "positive" with a strong pipeline of new developments. He said: "Strong demand with relatively low levels of new supply is driving up room rates and our brands continue to outperform the market in most of our major regions and geographies." Mark Reed, an analyst at Landsbanki, said that InterContinental's results were "broadly in line with guidance". He added: "The group was held back by the 9pc weakening of the US dollar sterling rate, which is important given that around 70pc of profits are generated in the US." InterContinental will pay an interim dividend of 5.7p per share, raised by 12pc since last year, on October 5. Ellerman Corporation, the investment vehicle belonging to Sir David and Sir Frederick Barclay, owners of the Telegraph Media Group, bought a 5pc holding in InterContinental in January and has since raised its stake to 10pc. source: The Telegraph | Daily Extras! Eclat Me | Success Tip of the Day| 1DailyDiversion| Eclat Web - Must Visit Websites! A Beautiful Pic Every Day! Word of the Day| Quotation of the Day| Make Money! Immigration News! Desire- WOW Stuff! Stock Mkt Updates |
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