French hotel giant Accor has reported a 4.7% drop in annual turnover due to the economic slowdown and a "challenging economy".
In its 2008 results the group, which runs Etap and Novotel, reported an overall fall in turnover of €382m (340m), from €8.1b (£7.2b) in 2007 to €7.7b (£6.9b) last year.
Hotel turnover, which excludes the contribution from Accor's voucher business, was down 1% year-on-year at €5.8b (£5.2b).
Accor said this was due to the economic slowdown and a corresponding decline in demand, notably in the United States and Southern Europe.
The decline worsened in the final quarter of the year with turnover at the company's midscale and upscale hotels down 8% in the UK, Spain, Italy and Portugal due to "a deep recession".
Economy hotels such as Ibis did not escape unscathed with turnover down 1.1% on the same period a year earlier.
By Gemma Sharkey
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