Accor Sales Gain, Profit Forecast Maintained on Economy Hotels
January 18, 2012, 3:05 AM ESTBy Armorel Kenna
Jan. 17 (Bloomberg) -- Accor SA, Europe’s biggest hotel company, said sales rose 2.5 percent in 2011 and confirmed its profit forecast, boosted by growth in economy lodgings.
Revenue climbed to 6.1 billion euros ($7.8 billion) from 5.95 billion euros in 2010, the Paris-based owner of the Novotel and Ibis brands said in a statement today. The average estimate of 17 analysts in a Bloomberg survey was 6.17 billion euros. Fourth-quarter sales fell 1.1 percent to 1.5 billion euros, affected by Accor’s strategy of selling and leasing back hotels.
The French hotelier, which generates 73 percent of sales in Europe, is renovating its economy lodges and combining them under the Ibis brand to attract travelers. Accor reiterated its October forecast for 2011 earnings before interest and taxes of as much as 530 million euros.
“Demand remained strong in the main European markets, in emerging markets and in the U.S.,” Accor said, while “the situation in Southern Europe continued to deteriorate.”
Accor “significantly” exceeded its expansion target in 2011, the company said in the statement.
The sales figures were released after markets closed. Accor slipped 0.3 percent to 21.08 euros in Paris trading today. The shares fell 41 percent last year compared with the 16 percent decline of the Stoxx 600 travel/leisure index.
--Editors: Paul Jarvis, Robert Valpuesta
To contact the reporter on this story: Armorel Kenna in Milan at akenna@bloomberg.net
To contact the editor responsible for this story: Sara Marley at smarley1@bloomberg.net
