AccorHotels achieved a strong rise in earnings last year with a 66.4% hike in net profit to €441 million.
This came as a result of “very strong business’ across the majority of the French hospitality giant’s key markets.
A total of 51,413 rooms were opened representing 301 hotels, bringing the total up to 616,181 rooms in 4,283 hotels.
The group has a pipeline of 161.000 rooms representing 874 hotels, 78% of which are in emerging markets and 47% in the Asia-Pacific region.
Year-on-year revenue for 2017 rose by 7.9% to €1.9 billion.
But currency effects had a negative impact of €23.4 million, attributable chiefly to declines in the Egyptian pound (€22.8 million), Turkish lira (€6.4 million) and US dollar (€7.1 million), partially offset by positive impacts from the Brazilian real (€10 million) and the Polish zloty (€4.9 million).
This was countered by acquisitions and disposals having a positive impact of €185.1 million due to the contributions of Raffles, Fairmont, Swissôtel, Availpro, onefinestay, Travel Keys, Squarebreak, Verychic and John Paul.
Earnings from new businesses covering concierge services, luxury home rentals, private sales of luxury hotels and stays and digital services for independent hotels was described as being “broadly stable” in 2017.
The group’s UK hotels delivered further “solid growth” with revenue per available room up by 4.6%. The performance was driven by cities other than London – up by 6% – and activity in the capital continuing to grow by 3%.
Chairman and CEO Sebastien Bazin said: “AccorHotels’ earnings for 2017 mark another leap in performance, with excellent operating results and record development.
“The group continues to benefit from positive market trends with a confirmed increase in volumes.
“Against this buoyant backdrop, AccorHotels continues to pursue its dynamic trajectory, consolidate its market share and enrich its range of services for customers and partners.
“The group has never been so strong. By developing our “augmented hospitality” model, we are at the forefront of an industry that is constantly transforming and has unlimited prospects.”
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