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AccorHotels reports soaring revenue

AccorHotels reported a 22% rise in third-quarter revenue to more than €1 billion in the three months to September.

French-based hotel giant Accor saw revenue per available room (RevPAR) across the group rise 5.9% year on year, but it reported a loss at home rental business Onefinestay and concierge business John Paul.

AccorHotels paid €148 million for Onefinestay in 2016 and acquired John Paul late the same year. The company wrote off €246 million on the two acquisitions in July this year.

In its latest quarterly results Accor reported: “Onefinestay and John Paul turned in negative performances.”

By contrast, the group reported the purchase of hotel chains Movenpick and Mantra this year “had a positive impact of €144 million”.

Accor acquired Movenpick for €482 million and the Australia-based Mantra hotel group for $1.2 billion (€1 billion).

The French group saw third-quarter revenue increase 22% to €1,033 billion year on year and reported ‘like-for-like’ revenue up 7.6%.

It reported quarterly RevPAR in France up 8.3% “driven by Paris” where RevPAR rose 16.5% year on year.

RevPAR in the UK rose 3.4% thanks to “a particularly favourable summer” and occupancy “reached a record high” in London where RevPAR was up 5.8%.

However, Accor saw a 1.4% decline in RevPAR in Spain, which it attributed to “the political situation in Catalonia”.

Accor operates more than 4,680 hotels worldwide, 62% of them in Europe, and has more than 1,000 hotels in development. The group includes the Novotel, Mercure and Sofitel brands.

Chairman and chief executive Sébastien Bazin said: “AccorHotels turned in a solid performance in the third quarter, reflecting positive operating trends in the majority of our markets as well as the group’s strong growth as a result of acquisitions since the start of the year.”

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