Accor results reflect ‘firm recovery' in hotels sector

20 February 2014 by
Accor results reflect ‘firm recovery' in hotels sector

French-hotel group Accor saw a 2.7% increase in like-for-like revenue to £4,566m (€5,536m) in 2013, reflecting a "firm recovery" in the hotel sector.

The company said the introduction of an effective distribution strategy and a cost savings plan were behind its strong second-half performance, which saw operating profit before tax and non-recurring items up 5.9% like-for-like to £368m (€446m).

Sébastien Bazin, chairman and chief executive officer, described the 2013 results as robust and the firm's financial situation as healthy.

"While the economic environment remains uncertain in a few regions, overall we are benefiting from the global recovery and the strength of our brands," he said.

Accor said its new strategy to leverage its traditional business as hotel operator and brand franchisor (HotelServices) and its emerging role as hotel owner and investor (HotelInvest) was one of the company's highlights of the last 12 months.

Bazin said: "In 2014, HotelServices is focusing its priorities on innovation, digital media and the brands. We are also beginning to deploy the HotelInvest strategy. Our teams are now organized around these two core competencies, with dedicated reporting processes and their own objectives."

A project to upgrade the Ibis family brands, including the rebranding of more than 1,700 hotels was completed last year. An £82m (€100m) cost savings plan was deployed for 2013 and 2014 and Accor reported that by the end of 2013, £30.5m (€37m) in savings had already been delivered.

Strong first-half to 2013 for Accor >>

Accor increases profit target after European improvement >>

TagsFinance and Hotels
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