Intercontinental Hotels Plc remains our choice holding in the hotel business and this week it proved why, producing the expected level of higher profits, subject to currency adjustments.

            Sales increasd by some 6% to £1500m

            Profits grew by 10% to £648m at operating level

           Earnings per share increased by 12% and

           Final dividend increased by 11% to 77% for the year

           Based on increasing REVPAR of over 6%

But perhaps the best news reading between the lines of the company's statement is that there is no mention of a Share Buy Back as we remain firmly of the view that surplus cash should be distributed among all the shareholders in cash !

The coming year looks good with the hotel business growing steadily and the I H G structure in place to grow even faster.

There still remains the possibility of a financial reorganisation, merger or takeover, but our investment is good even if the group remains independent