Profit at hotel chain Accor rose by more than 50% last year driven by strong growth in its core activities, hotels and business services.
In its full-year results announcement yesterday, the company revealed that full-year operating profit before taxes and exceptional items was €27m (£494m), up 28%.
Net profit was €501m (£340m), up 51% with sales at €6.7b (£4.55b), up 7%.
Sales were up 13.2% at upscale and mid-market hotels in Europe, up 8.4% at economy hotels in Europe and up 2% at economy hotels in the USA.
Accor said it plans to continue selling hotels through arrangements involving leasing back, managing or franchising some of them. It plans to sell 376 hotels through such arrangements between now and December 2008.
Accor revealed plans to launch a new hotel brand, All Seasons, this year under a programme that will involve mainly franchises. The chain is slated to have 10,000 rooms by 2010.
The company will also pursue its expansion in China, where it will raise the number of Ibis budget hotels to 100 by 2010.
By Daniel Thomas
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Published by: The Caterer