InterContinental selling UK hotels

INTERCONTINENTAL Hotels Group today pledged to return a further £750m to shareholders and hung a For Sale sign over its UK hotel portfolio including the Holiday Inn chain.

Shareholders have already received the lion's share of £250m cash returned at the company which is selling its US properties. IHG will continue managing the hotels that have been sold, but it wants to free the cash tied up in owning them.

The latest tranche to go includes 76 in the UK plus the Jardin des Tuileries in Paris. IHG retains its flagship InterContinental in Hyde Park.

Chief executive Richard North said further property disposals among the remaining 50 were likely in the longer term.

Strong British trading helped half-year pre-tax profits jump nearly 40% on last year to £93m. IHG shares gained 7 1/2p to 586 1/2p in early trading.