Stronger demand from holidaymakers boosted InterContinental Hotels as it battles against challenging trading conditions.

The company, which owns the Crowne Plaza hotel in Holliday Street, Birmingham, said trading in July benefited from improved leisure demand, although it admitted future booking trends were unclear.

Revenues per available room fell 14.4 per cent last month, which was better than the first-half fall of 16.2 per cent reported in half-year results yesterday.

Operating profits declined 38 per cent to £107.8 million in the six months to June 30, while total revenues slid 25 per cent to £437.1 million.

Chief executive Andrew Cosslett said cost reductions and the company’s scale were helping the London-listed company to weather the storm caused by the slump in global travel, particularly among business guests.

He added: “Trading was very challenging throughout the first half of the year and we expect the remainder of 2009 to be tough.”

Revenues per available room in Europe, Middle East and Africa (EMEA) declined 16.4 per cent, but the UK was one of its most resilient markets after a decline of 10.7 per cent.

InterContinental, which also owns the Holiday Inn and Staybridge Suites brands, is the world’s largest hotel group by number of rooms, with 4,300 properties and almost 630,000 guest rooms. It has nearly 1,600 hotels in its development pipeline.

A spokesman added this summer’s “staycation” trend had helped trading in the UK, particularly at London hotels amid strong demand from leisure customers.

InterContinental’s revenues per available room from the first relaunched Holiday Inn hotels outperformed the rest of the estate by about five per cent.