Accor reports strong trading after Q1 profits rise

First quarter revenue at French hotel giant Accor rose by 5.6% year-on-year to €1.2 billion.

The company said that business activity was strong across all of its markets.

The main growth came from northern, central and eastern Europe (up 6.4%) and Mediterranean, Middle East, Africa (up 7.3%), and to a lesser extent in the Americas (up 3.5%), where growth was slower than the final quarter of last year.

The company opened 47 hotels in the three months to the end of March.

Chairman and chief executive Sébastien Bazin said: “Accor enjoyed strong momentum in the early months of 2015, making progress in all our markets and all our segments.

“We benefited from the initial restructuring measures carried out in 2014 by HotelInvest [Accor’s hotel owner and investor business] and also took advantage of better macroeconomic trends in most of our key markets.

“We remain vigilant nonetheless, particularly in Brazil, in France for the economy segment and in London.

“The various projects underway – digital transformation, restructuring of the property portfolio and revamping of the food and beverage offering – are continuing at a rapid pace.

“With their help, we fully expect to consolidate our leadership position and strengthen our performances once again in 2015.”

UK business activity again improved strongly in the first quarter, up 6.1%, Accor said.

However, the group added: “Business activity in London stabilised during the first quarter due to a decline in leisure customers from the eurozone, primarily attributable to the euro’s depreciation against the sterling.

“Regional cities delivered solid performances, with RevPAR up 8.9% in the first quarter.”

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