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Accor increases profit target after European improvement

17 January 2014 by
Accor increases profit target after European improvement

Accor has raised its profit target for 2013 to £442m (€530m) having seen an increase in demand in Europe.

The hotel group said that gross revenue for the year was up 2.8% at £9.58b (€11.5b) and after a strong increase in fourth-quarter revenue, up 3.4% like for like after currency depreciation was taken into account, it was revising its expectations upwards.

It opened 170 hotels last year, of which 85% were under management and franchise agreements.

Though business in China was lower than expected, Europe held up well, aiding the rise in fourth-quarter revenue.

Accor said that growth in upscale and midscale hotels in the UK was strong, with revenues up 8.9%. Growth in economy hotels was said to be in double digits in the UK.

As a result of the positive figures the group said it was now revising its profit target up to £442m.

Accor chairman and chief executive Sébastien Bazin said: "This performance reflects the group's strengths, including its recognised brands covering every segment of the hospitality market, a global footprint with leadership positions in the most promising growth regions and enthusiastic teams dedicated to driving the Group's development.

"Accor's ambitious new vision is leveraging these strengths. It clearly redefines our business model around two core competencies: HotelServices, a hotel operator and brand franchisor, and HotelInvest, a hotel owner and investor supported by a more agile, locally focused organization. This roadmap is designed to quickly enhance our clarity and effectiveness, in a commitment to making Accor the world's best performing and most highly valued hotel company."

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