French hotel giant Accor saw an increase in profits in 2013 thanks to cost-cutting and the implementation of a new strategy.
Earnings before interest and taxes were up 5.3% like-for-like to €536 million and revenue up 2.7% like-for-like to €5,536 million.
Operating profit before tax and non-recurring items was up 5.9% to €446 million.
Accor, whose brands include Sofitel and Ibis, said it was employing a new strategy based on leveraging the value and strategic fit between Accor’s traditional business as hotel operator and brand franchisor (HotelServices) and its emerging role as hotel owner and investor (HotelInvest).
The company said it was deploying a €100 million savings plan for 2013 and 2014, to “maintain competitiveness in an environment shaped by rising operating costs and more aggressive competition in Europe”. By the end of 2013, €37 million in savings had been delivered.
Sébastien Bazin, chairman and chief executive, said: “Our 2013 results were robust, our financial situation is healthy and our teams are energetically deploying the new roadmap with commitment and dedication.
“While the economic environment remains uncertain in a few regions, overall we are benefiting from the global recovery and the strength of our brands. In 2014, HotelServices is focusing its priorities on innovation, digital media and the brands.
“We are also beginning to deploy the HotelInvest strategy. Our teams are now organized around these two core competencies, with dedicated reporting processes and their own objectives.”