Economy hotels boost Accor’s bottom line
PARIS – The Accor hotel group has released its 2008 results, indicating it has so far withstood the economic downturn.
Operating profit before tax and non-recurring items was €875 million, on target, and up 13.0 percent like-for-like excluding the impact of the return to shareholders
Operating margin was up 1.0 point to 29.6 percent.
Consolidated revenue totaled €7.73 million in 2008, representing a 2.8 percent increase at comparable scope of consolidation and exchange rates (like-for-like) and a 4.7 percent decline as reported.
Reported revenue was negatively impacted by the large number of asset disposals during the year and the unfavourable currency
effect, notably from the US dollar and the British pound against the euro.
The 2.8 percent like-for-like growth was led by sustained gains in Prepaid Services and the firm resistance of economy hotels outside the United States.
Depending on global demand, Accor said it would focus its expansion of capital expenditure on the economy hotels outside the US segment and asset-light operating structures in the upscale and mid-scale segment.
In addition, the group may shift to acquiring hotel properties rather than driving organic growth.
Accor opened 28,000 new rooms during the year, 89 percent in the economy and mid-scale segments.
Of the total, 79 percent are being operated under low capital-intensive structures, such as variable-rent leases, management contracts and franchise agreements.
Sustained expansion remains a priority, with 101,000 rooms in the pipeline.
Ian Jarrett
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
In Italy, the Meloni government congratulates itself for its tourism achievements
Singapore to forbid entry to undesirable travelers with new no-boarding directive