Accor revises up profit forecast after strong fourth quarter

18 January 2007 by
Accor revises up profit forecast after strong fourth quarter

Strong fourth-quarter sales at Accor has seen the hotel group revise up its full-year operating profit target to €700-€720m (£459-£473m).

It had previously stated a target of €680 (£446m) to €700m (£459m).

Growth was more apparent in the fourth quarter of the year ended 31 December, said Accor, with a 7.8% rise in like-for-like sales, compared with increases of 6.8% in the third quarter and 6% in the first half.

The group's midscale and upscale properties saw sales for the year increase by 6.8% and leap 8.2% in the fourth quarter.

Economy hotels outside the USA, which includes the E-Tap and Ibis brands, saw full-year sales rise 5.9%, with an 8% like-for-like increase in the fourth quarter.

Across hotels like-for-like profit rose by 6.1% to €5.47bm (£3.59b), compared with overall sales growth of 6.6% to €7.61b (£4.99b).

A company statement said: "The very sharp increase reflected accelerated growth in the hotels business in France and the confirmation of a sustained favourable trend since the beginning of the year in Northern Europe, especially in Germany."

Its burgeoning business services sector also saw profits grow by 20.5% overall to €760m (£499m) or 15% in like-for-like sales.

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By Emily Manson

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