"First half confirmed the uptrend in the hotels business in Europe": Accor
07/24/2007|11:07:00 AM|eyefortravel

Accor´s consolidated revenue rose 8.8 percent to 4,015 million euros in the (7/18/2007)

At constant scope of consolidation and exchange rates, the like-for-like increase was 6.1 percent, confirming that the environment remains favourable in the Services and Hotels businesses, stated the company.

The Group´s expansion strategy accounted for 7.5 percent of revenue growth for the period, while disposals carried out as part of the ongoing asset-right strategy in the Hotels business reduced revenue by 3.6 percent. The currency effect was a negative 1.3 percent for the period.

Revenue from the Services business increased by 14.6 percent as reported and by 12.0 percent like-for-like, in line with Accor´s medium-term organic growth target of 8 to 16 percent a year between 2006 and 2010. In Europe, revenue was up 13.5 percent like-for-like for the period, reflecting organic growth of 16.0 percent in the first quarter and 11.1 percent in the second. In Latin America, like-for-like growth totaled 8.6 percent, with 10.7 percent in the first quarter and 6.6 percent in the second.

About hotels, it stated: "The 8.6 percent reported increase in hotels revenue confirms the continuing uptrend in the European hospitality industry cycle underway since fourth-quarter 2006. Growth in Europe was led by increases in both the occupancy rate (up 1.1 point) and the average room rate (up 6.9 percent)."

Revenue in the upscale and midscale segment rose 14.1 percent as reported and 6.1 percent like-for-like. Growth was 8.5 percent in the first quarter and 4.0 percent in the second.

In the economy hotel segment, revenue rose by 7.7 percent as reported and 5.8 percent like-for-like in the first half.

In the US economy hotel segment, revenue ended the first half up by 1.9 percent like-for-like, but down 6.2 percent as reported due to the dollar´s weakness against the euro.