AccorHotels has ended its interest in acquiring a stake in Air France-KLM, but not in “a strengthened partnership” with an airline or airlines.
France-based Accor confirmed it was looking at acquiring a minority stake in Air France-KLM in early June as it considered “the establishment of a strategic alliance” with the carrier.
The hotel group was interested in acquiring the French government’s 14% stake in the airline, valued at about €430 million, and in the opportunities to combine the groups’ data and loyalty programmes.
However, a potential deal was complicated by Air France-KLM’s ownership structure – which includes Delta Air Lines and China Eastern Airlines and gives the French government 23% of voting rights – and by the airline’s pursuit of a new chief executive following the resignation of Jean-Marc Janaillac in May.
Janaillac stood down after Air France workers rejected his direct appeal to end their strikes over pay.
In a statement released alongside half-year results this week, Accor said: “[The] required conditions for the acquisition of a minority stake in Air France-KLM have not been met at this stage.
“AccorHotels has decided not to further pursue this opportunity.”
It noted: “The group remains convinced that a strengthened partnership between hotel companies and airlines offers significant value creation potential.”
Accor reported an 8% increase in revenue year on year to €1.59 billion in the six months to June and a 4.2% increase in operating profit to €291 million.
However, net profit for the half year stood at almost €2.2 billion following the group’s sale of a majority stake in hotel investment arm AccorInvest in May.
Business volume, or the total transaction value across the group, rose 10% year on year to €8.9 billion.
Accor reported “solid business in most key markets” in the first half of the year, with a 5.1% increase in revenue per available room (RevPAR) overall year on year, but with RevPAR in France up 5.6% and in Paris up 9.5%.
RevPAR in Germany rose 1.5%, but in Eastern Europe by 6.2%. The UK saw a 1.3% increase driven by regions outside London, up by 2.1%.
Beyond Europe, Accord recorded RevPAR growth in Asia-Pacific of 5% and 4.8% in North America, Central America and the Caribbean. However, group RevPAR in the Middle East and Africa fell 0.3%.