The Windsor firm said worldwide revenues per available room (revpar) – a key performance indicator in the industry - dived 12.2 per cent in January, down from a 6.5 per cent decline over the fourth quarter of last year.
InterContinental Hotels Group (IHG) said its 225 UK Holiday Inns saw revpar decline six per cent in the last quarter, from 1.2 per cent growth across the year.
Chief executive Andrew Cosslett said trading was “very tough”.
“The sharp deterioration we reported on last November has continued into 2009 and we see no signs of improvement at this stage,” he said.
A spokesman for the group said: “We are beginning to see revpar come down in the UK but we are still busy.”
IHG has 248 UK hotels, including a new “extended stay” hotel called Staybridge Suites, in Liverpool, for people who want to occupy rooms for two to three weeks. The firm also runs the Hotel Indigo in London.
The group’s five-star InterContinental Hotel in London’s Park Lane was “doing very well”, according to the spokesman, as many of its competitors were closed for renovation last year, whereas it had already been revamped.
“There is still a lot of five star demand in London, but we estimate 10 to 15 per cent of London’s five star hotels were out of commission because they were being refurbished,” he said.
IHG has launched a $1billion (£701.5million) refurbishment programme for its global Holiday Inn brand. The spokesman said 21 UK hotels had been spruced up under the scheme, with features including new bedding and showers and even a new smell.