AccorHotels hits record occupancy in London
French hospitality group AccorHotels has reported a "solid" third quarter with record occupancy levels in London over the summer.
In the UK during the period from 1 July to 30 September 2018, revenue per available room (revpar) growth of 3.4% during the quarter reflected a good summer of trading. Unlike in the first half of the year, revpar was up sharply in London (5.8%), and occupancy rates reached a record high of over 90% in the third quarter. Outside London, revpar also increased, albeit at a more modest rate (1.4%).
The whole group reported a third quarter 2018 revenue increase of 7.6% like for like to €1.03b (£908m) and its full-year 2018 earnings target remains between €700m-€720m (£616m-£633m).
Acquisitions and disposals had a positive impact on revenue of €144m (£127m), an increase of 17% thanks in particular to the group's acquisitions of Mantra, Mövenpick and Gekko.
During the period, AccorHotels opened 73 hotels, and at the end of September the hit the 1,000 hotel mark.
Sébastien Bazin, chairman and chief executive of AccorHotels, said: "AccorHotels turned in a solid performance in the third quarter, reflecting positive operating trends in the majority of our markets as well as the group's strong growth as a result of acquisitions made since the start of the year.
"In addition to these operations, which enable us to cement our international leadership, our organic growth continued at a fast pace and our pipeline rose above the 1,000 hotel mark, underlining the strength of our brand portfolio. Despite contrasting conditions across our geographies, this strong operating momentum enables us to narrow our EBITDA target to the upper range of the guidance announced in July."
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