French hotels giant Accor reported a 2010 net profit of 3.6 billion euros compared with a loss of 282 million euros the previous year.
The result wes lifted by the sale of its vouchers unit which is now a separately listed company Edenred.
The performance was helped by a robust upturn in demand in most countries, followed by a gradual stabilisation in average room rates, the company said
“The recovery that emerged in our main countries – Germany and the UK in the first half and France during the summer – gradually spread to most of the rest of Europe in the second half, as occupancy rates continued to rise and average room rates began to turn upwards, particularly in the fourth quarter,” Accor said.
“Although a few markets remain uncertain, the upturn observed in 2010 is expected to continue in 2011, led by improving demand and, to a lesser extent, by the gradual recovery in room rates.”
Net debt was reduced to 730 million euros from 1.62 billion euros in 2009.
Accor, owner of the Novotel and Motel 6 brands, is selling hotels and signing agreements to operate or franchise most of them. The company also agreed last month to sell casino company Groupe Lucien Barriere to focus on hotels.