Accor profits rise on international business as Paris hotel revenues fall

Accor reported 4.6 per cent growth in operating profit in 2016 as Europe’s largest hotelier saw business improve in its international markets and despite falling revenue in France.

The group, which owns brands ranging from the high-end Sofitel and Raffles to budget option Ibis, said earnings before interest and taxes grew to €696bn in 2016, above its target range of €670m to €690m. A median forecast from analysts compiled by Bloomberg had predicted ebit of €677.13m.

Consolidated revenue for 2016 at the hotel group rose 2.2 per cent year on year to €5.63bn, in line with expectations.

Revenue fell 2.8 per cent in France – particularly in Paris, where revenue per available room, a key industry metric, fell 13.2 per cent as the threat of terrorism continued to hang over the city following attacks in 2015. Hotels outside the capital saw revenue per available room grow 4.2 per cent.

Revenue per available room grew 4.9 per cent over the period in Asia-Pacific with the same metric for Mexico up 17.6 per cent.

Globally, revenue per available room was up 1.1 per cent, while net profit for the group was up 8.1 per cent at €266m for the financial year.

Accor yesterday announced former French president Nicolas Sarkozy will join the hotelier as an independent director and chair the group’s international strategy committee.