Accor profits up by 25% but budget hotels struggle

09 September 2004
Accor profits up by 25% but budget hotels struggle

French hotelier Accor has reported half-year pre-tax profits up by 25%, with its upmarket brands doing well in the USA, UK and Asia, but economy brands in the USA and its home market of France finding things tougher.

Pre-tax profits came in at €225m (£154m), up from €180m (£123m) last time round. Turnover was €3.4b (£2.3b), against €3.3b (£2.26b) in the first half of 2003.

Sofitel in the USA reported good growth, as did its upmarket brands in the UK, South America and Asia-Pacific region.

But Accor's economy hotels in the USA performed less well, and its hotels' business in France saw only "modest" like-for-like growth.

Since the end of the half year, summer trading in France had been "lacklustre" and the US economy market had still not bounced back, said the company.

Accor predicted its full-year profits would come in at €570m-€590m (£390m-£403m), compared with €523m (£357m) in 2003.

by Nic Paton

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