(RTTNews) - InterContinental Hotels Group PLC (IHG: News ,IHG.L: News ) on Tuesday reported a sharp decline in third-quarter profit, as revenues declined year-over-year, hit by the global economic crisis that reduced travel. Adjusted profit topped Wall Street view. Looking ahead, the company said that it sees signs of occupancy stabilising, but rate is still under considerable pressure across the board.

Profit attributable to equity holders of the parent declined to $67 million or 22.7 cents per share from $91 million or 31.5 cents per share in the previous year. Exceptional operating costs in the third quarter were $44 million, including a $21 million non-cash goodwill write down and $18 million of severance costs.

Adjusted profit attributable to equity holders of the parent was $94 million or 31.5 cents per share. On average, three analysts polled by Thomson Reuters expected the company to earn 26 cents per share for the quarter.

Profit from continuing operations slipped to $68 million or 22.7 cents per share from $91 million or 31.5 cents per share in the prior year. Pre-tax profit for the quarter declined to $67 million from $92 million in the prior year.

Revenue for the quarter dropped to $401 million from $496 million in the previous year. Analysts estimated revenues of $417.43 million for the quarter.

Operating profit slumped to $80 million from $120 million. Adjusted third-quarter operating profit was $124 million. Segment operating profit declined to $124 million from $153 million. On a constant currency basis, third-quarter Revenue per available room, or RevPAR decline was 15.2%.
Revenue from Americas declined to $206 million from $253 million, while operating profit dropped to $82 million from $129 million. RevPAR declined 15.5% in the third quarter with US RevPAR falling 15.7% reflecting a tough trading environment in New York.

EMEA generated $101 million in third-quarter revenues, down from last year's $137 million. The segment's operating profit dropped to $36 million from $46 million reported in the corresponding period last year. RevPAR declined 15.2% in the third quarter driven primarily by rate.

Operator of the InterContinental and Holiday Inn brands said third-quarter Asia Pacific revenues slumped to $62 million from $73 million, and operating profit edged down to $17 million from $18 million. RevPAR declined 13.4%, driven entirely by rate. Occupancy improved 1.3 percentage points.

Further, the company said that global constant currency RevPAR decline was 13.5% in October with Americas showing a decline of 14.5%, EMEA a drop of 12.7% and Asia Pacific witnessing a decrease of 9.9%. The company attributed the declines to weaker comparables.

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