French hotel giant Accor saw revenue and profit rise in 2015 in what it described as an “outstanding performance” in a year-end trading statement.
The operator of the Novotel, Sofitel, Mercure and Pullman brands, reported revenue for the year up 2.3% to €5,581 million.
It recorded EBIT of €665 million, up 10.6% and net profit of €244 million, up 9.4%, as well as record recurring cash flow of €341 million.
Accor said it had seen strong growth in Europe and emerging markets although noted difficulties in France after the Paris terror attacks and in Brazil.
Sébastien Bazin, chairman and chief executive officer of AccorHotels, said: “AccorHotels delivered an outstanding performance in 2015: growth in revenue, a big improvement in earnings and a more robust financial position.
“The momentum driven by the strategic, operational and cultural transformation and the quality of the performance and motivation of our teams are clearly producing results in all of our businesses. AccorHotels is moving forward, driving its growth and focused on the future.
“In an extraordinarily volatile global economic context, and at a time when the hospitality industry is reinventing itself, the opportunities available are numerous and the group’s objectives for 2016 are clear: strengthen our position as the world’s leading hotel operator, and continue to significantly improve our operational and financial performance.”
Along with its year-end results Accor also announced it had taken a 30% stake in Oasis Collection, a curated marketplace for vacation rentals, and 49% in Squarebreak.
The latter is a French start-up that operates ‘hotel homes’. Both deals signify the changing hospitality sector driven by the rise in private rented accommodation offered by the likes of Airbnb.
Vivek Badrinath, deputy chief officer, marketing, digital, distribution and information systems at Accor said:
“With this investment, AccorHotels is positioning itself to better understand the expectations of guests in a sector where the stay experience and the quality of service are particularly important.
“In partnership with innovative players, AccorHotels continues to forge ahead along the path of changing and new behaviours in hospitality and travel”.
Badrinath added: “Oasis Collections allows us to explore new complementary offer to upscale hotels. We are delighted to work with young talents who share our hospitality and digital culture.”