Accor has reported “robust” third quarter growth with London singled out as being a “dynamic” market.
The French hotel giant said UK like-for-like revenue growth was 6.6% for upscale and mid-range hotels and 9.8% in the economy segment.
“Business was led by a dynamic London market, where occupancy rates of over 90% enabled rate increases across all segments,” the company said. Growth in revenue per available room (RevPAR) in the UK was driven by both occupancy rates and average room rates.
Overall like-for-like revenue in the three months to September was up by 5.8% to 1,623 million euros. The rise was assisted by the takeover of 24 Jarvis hotels in the UK, which now operate as Mercure properties under a franchise agreements.
Accor’s revenue for the first nine months of 2011 amounted to 4,597 million euros. The company confirmed it was on target for a full year profit of 510-530 million eruos.
The group said it expects ongoing sustained sales in the fourth quarter “and the absence of any signs of a slowdown in demand”.
“With good revenue performance in the summer months and in September, the third quarter was in line with the positive trends noted in the first six months of the year,” Accor said. “Revenue growth was faster in the economy segment, led by strong demand and a recovery in average room rates.”
Accor added 28,000 rooms in the first nine months of the year as part of a target of 35,000 by the end of the financial year.