InterContinental in deal for up to 16 hotels

The world's largest hotelier InterContinental said yesterday it had signed a deal allowing Queens Moat Houses to use its Crowne Plaza and Holiday Inn branding on up to 16 hotels.

The deal follows a similar one for five Stardon hotels in July, and takes the total under Intercontinental brands to 227 in the UK. Queens Moat Houses will pay Intercontinental a royalty fee, which hotelier sources estimated at three to five per cent of profits.

Eleven of the hotels in the new 20-year deal will be converted to the Holiday Inn brand and two to the Crowne Plaza brand, with three more possibly converted at a later date, said IHG. The initial 13 will be refurbished under the deal, it added.

Intercontinental shares were among those hit last month by bombings on London's transport system.

"We've seen a slight softening of the market, but we've been bolstered by our Holiday Inn hotels which cater to the more resilient domestic market," said a spokesman.

Shares in InterContinental, which owns 3,500-plus hotels worldwide, were up 0.1 per cent by 0940 BST, valuing the group at around £3.3 billion.