French hotel giant Accor saw first half revenue rise by 3.6% to €2,717 million over the same period last year.
The company reported a good performance across all segments, led by steadily rising prices in the six months to June 30.
There was record expansion in the period, with the opening of 141 hotels representing 20,700 rooms, 85% of which are under management and franchise contracts.
While demand in the UK remains “very strong”, preparations for the London Olympic Games had a negative impact on the revenue of the group’s upscale and midscale hotel segment, which was down by 3.9%.
The renovation of some London hotels and the anticipated closure of the ExCel convention centre and the O2 Arena due to the games affected trade.
Revenue from economy hotels in the UK rose by 4.3% like-for-like, led by the combined impact of firm demand and sustained application of a dynamic pricing policy, which helped to optimise revenue per available room.
UK operations were also boosted by growth in fee revenue due to expansion.
Accor saw “robust” growth from emerging markets such as Asia-Pacific, Latin America and Africa/Middle East.
“It was generally stable in Europe, with solid conditions in the key markets (excellent performance in the capitals) but still very challenging in the southern countries,” the company said.
“In addition, the growing part of management and franchise fees at revenue level is having a very positive impact, resulting from a continuous dynamic expansion plan.
“Despite low visibility and the uncertain economic environment in some regions, the group anticipates these ongoing trends to carry on through the summer season.”
Accor announced the sale of US chain Motel 6 to Blackstone for $1.9 billion in May. The transaction should be completed in the third quarter of the year.
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