AccorHotels' acquisitions spree drives revenue growth

21 February 2019 by
AccorHotels' acquisitions spree drives revenue growth

AccorHotels has reported a 16.9% increase in revenue to €3.6b (£3.1b) following a buying spree of companies over the past few years.

In its 2018 full year results, the French hospitality group announced that acquisitions and disposals had a positive impact of €394m (£343m), including the contributions of businesses such as Mantra, Mövenpick, Atton, Gekko, ResDiary and Adoria.

Reservation platforms Gekko and ResDiary and catering technology company Adoria made "a positive contribution" to the group's earnings and Availpro and Fastbooking also reported positive results for the first time since their acquisition; while the group is "continuing its work" to "turn around" Onefinestay and digital concierge service John Paul.

Accor's earnings before interest, tax, depreciation and amortisation (EBITDA) was up 14.5% to €712m (£619m) and the group also announced the launch of a new ‘lifestyle loyalty programme' ALL (Accor Live Limitless), and a partnership with Paris Saint-Germain Football Club.

Sébastien Bazin, chairman and chief executive of AccorHotels, said: "Accor 2018 results reflect a profound transformation, marked foremost by the sale of our real estate division and a large number of acquisitions. Our results are clearly improving, with EBITDA, free cash flow generation and organic development all once again at record highs. They are also perfectly in line with our medium-term objectives.

"Accor's growth continues: we are increasing our global market share and consolidating our balance sheet. In 2019, the group will continue along this path. With the launch of ALL, Accor gives life to its augmented hospitality model servicing both its customers and partners. This ambitious and unique initiative in the hotel industry will help promoting the group and its brands, increasing customer loyalty and optimise its mid-term performance."

In 2018, Accor benefited from solid business momentum in continuing to pursue an asset-light model through the disposal of 64.8% of AccorInvest and the redeployment of the cash proceeds from core acquisitions.

Capitalising on a record organic increase of 43,905 rooms opened (300 hotels), the group ended 2018 with a hotel portfolio of 703,806 rooms (4,780 hotels) and a pipeline of 198,000 rooms (1,118 hotels).

Accor's Europe business posted revenue per available room (revpar) growth of 6.5%. In the UK, revpar grew by 2.9% due particularly to strong demand in London, which report 4.8% revpar growth.

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