InterContinental Hotels Group PLC has reported a fall of 38 percent in profits for the first half of the current year, compelling management to resort to additional cost-cutting measures.

The posted results show that group's operating profit took a dive to settle at $179 million during the first half of 2009, down from $291 million for the same period a year earlier.

Revenue per available room dropped 18.6 percent in Q2 ended June 30, up from 13.6 percent fall in Q1.

However, decline in revenue per available room lessened to settle at 14.4 percent due to holiday makers.

Hotel industry is among the hardest hit by the world worst recession since 2nd world war as during recession traveling turned turtle.

CEO Andrew Cosslett said, "Trading was very challenging throughout the first half of the year and we expect the remainder of 2009 to be tough."

However, booking data did not reveal any further deterioration.

The group plans to hack $80 million in 2009 overheads, $10 million more than its earlier target.