* CEO see some return of key corporate clients
* Occupancy is holding/rising, room rate depressed
* Sees sustainable cost cuts of $25-30 million in 2010
* Sees slower growth in adding hotel rooms in 2010
* Holiday Inn revamp leading to 5 percent RevPar rise
By David Jones
LONDON, Sept 24 (Reuters) - InterContinental Hotels, the world's biggest hotelier, is seeing early signs of recovery in forward bookings for business travel but warns it will be a long haul to bounce back to the levels seen in 2007.
Chief Executive Andrew Cosslett said its London flagship Park Lane InterContinental hotel was full this month while its August performance in China was ahead of last year despite the Olympic Games boost in the Chinese capital in August 2008.
"It's pretty early days, but we are definitely seeing some return of forward bookings from corporate clients. There are some signs of life in the business world but it will be a long haul," Cosslett said in an interview with Reuters.
The British group, which operates Holiday Inn and Crowne Plaza brands as well as InterContinental said it was seeing leisure travellers replacing some business clients, but this business was being attracted using lower room rates.
"The general trend is that we are seeing some stability, occupancy levels are holding or rising but rates will be depressed as long as the corporate traveller is missing," Cosslett added.
The hotelier along with the industry saw a sharp fall off in occupancy levels last November following the collapse of Lehman Brothers in September, with room rates coming under severe pressure in the following months of January and February. (Reporting by David Jones; editing by Jon Loades-Carter)