Accor 'resilient' in the face of market crises

Accor 'resilient' in the face of market crises

AccorHotels has reported a slump in revenue from hotels in France following a series of terrorist attacks, strikes and flooding in Paris.

Revenue in France was down by 2.6% in the first half of the year, with revenue per available room in Paris showing a “very pronounced” drop of 12% year-on-year.

Overall revenue in the first six months of the year fell by 4.7% to below €2.5 billion.

Germany and the UK were the main drivers of growth in the French group’s northern, central and eastern Europe region with revenue up by 4.3% and 4.4% respectively.

Earnings [EBIT] fell by 4% to €239 million, including a 4.2% drop in France attributed to lower demand in the wake of last year’s terrorist attacks in Paris.

Chief executive Sébastien Bazin said: "With several of our key markets, including France and Brazil, shaken by crises and violent events, the group showed remarkable resilience in the first half of 2016.

“We continued to invest heavily in order to grow, transform and gain a foothold in new businesses that are destined to become fundamental for the group. We will pursue this offensive strategy in the coming months.

“Our presence in 95 countries, our leadership positions in Europe, Asia-Pacific, Latin America, Africa and the Middle East, and our strength as the world's leading hotel operator covering all segments from economy to luxury give us a major competitive edge.

“Combined with the launch of a project to turn our property division into a subsidiary and a strategy that gives priority to customer-focused innovation, these strengths will be the drivers of our future growth.”

The company has been transforming itself with a string of acquisitions including Fairmount Raffles Hotels, onefinestay plus taking stakes in digital platforms Oasis Collections and Squarebreak which offers luxury villas in France.


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