InterContinental Hotels Group (IHG), the Holiday Inn and Crowne Plaza operator, expects to beat its target of adding up to 60,000 new rooms by the end of next year.

At the halfway stage of its three and a half-year plan it has added 26,000 rooms, net of losses, and analysts now expect the company to achieve at least 70,000 by the end of 2008, up from the target of 50,000 to 60,000 announced in June 2005.

Andy Cosslett, chief executive, said that the company was signing up an average of two new hotels and opening one every day. “It’s a pace of growth we’ve never ever been close to. It’s a hell of a management challenge, but we’ll get there.”

Mr Cosslett said he was confident of beating his previous rooms target despite an increase in the number of unsuitable Holiday Inns being discarded, particularly in America. “We are throwing out old properties that are not fit for purpose.”

IHG, which is expanding rapidly in China, reported a 5 per cent increase in continuing operating profits to £111 million in the first half of the year, up 17 per cent at constant currency, from turnover up 12 per cent at £422 million. Revenue per available room rose by 7 per cent and the interim dividend is up 12 per cent to 5.7p.

Mr Cosslett said that despite a fall in the share price IHG’s trading performance was unaffected by the market turmoil. He said its London business – it has 43 hotels in Greater London – had been largely untouched by the weak dollar, with American visitors being supplemented by Asians and Eastern Europeans.

Shares of IHG fell 12p to £10.89.

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