LEISURE and hotel group Six Continents has revealed the cost of the September 11 terrorist attacks in the US, to its business.

The group, which owns hotels in New York and Washington, said the atrocities had sliced £17.9m off profits in the last three weeks of its financial year.

The effects on business of the attacks, and subsequent war on terror, have continued into the current financial year.

The group said that while conditions in the US had improved since September 30, trading remained at depressed levels.

It said: "Within Europe the position is not so clear. It would appear that there has not has yet been any recovery in long--haul travel and so trading in upscale hotels has not show any meaningful improvements since September 11."

The update came as Six Continents, which changed its name from Bass after it sold its brewing interests to Belgian firm Interbrew, posted its figures for the year to September 30.

During the period, Six Continents overhauled its business, selling a raft of pubs and buying 79 Posthouse hotels in a bid to focus on its hotel arm, home of the Crowne Plaza and Holiday Inn brands.

Group turnover fell from £5.16bn to £4.03bn while bottom-line pre-tax profits slumped from £1.99bn to £690m.