AccorHotels reports "strong growth" and record development
AccorHotels has reported strong growth in its financial results for 2016, despite a challenging market in France following several terrorist attacks.
The hotel group saw revenue up 0.9% to €5.6b (£4.8b), EBIT up 4.6% to €696m (£588m) and net profit up 8.1% to €266m (£225m).
The results follow robust growth in most of the group's key markets and record development, with 81,042 new rooms (347 hotels), of which 89% were under management contracts and franchise agreements.
The results come two weeks after AccorHotels announced it had begun negotiations for the acquisition of vacation rental business Travel Keys and one day after it appointed former French President Nicolas Sarkozy to its board of directors.
Eastern Europe, Germany and the UK were the main business drivers in Europe, with the UK posting revenue growth of 4.3%. However, revenue was down 2.8% in France, particularly in Paris which saw a decrease in revpar of 13.2%, following terrorist attacks in the capital and Nice.
Sébastien Bazin, chairman and chief executive of AccorHotels, said: "AccorHotels has posted an excellent performance for 2016 in a challenging environment, in particular with record levels of EBIT and numbers of hotel rooms opened. Thanks to the efforts made by our teams around the world, we have implemented strong operational levers, which enabled growth in earnings to outpace that in revenue."
He added that turning AccorHotel's ownership division HotelInvest, into a subsidiary this year would provide the group with room for expansion.
Former French President Nicolas Sarkozy joins Accor board of directors >>
AccorHotels to buy Travel Keys >>
Weak pound pushes Accor's occupancy rates higher >>
Solid first half results for AccorHotels as revenue increases by 2% >>
Accor Hotels reports strong growth despite Paris terrorism >>
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