Accor Drops the Most in Almost Three Months After Paris Attacks
Accor, Europe’s biggest hotel operator, fell the most in almost three months after Friday’s terror attacks in the French capital.
The Paris-based owner of the Sofitel and Ibis brands dropped as much as 9.3 percent, the biggest decline since 24 August. The shares were down 5.8 per cent at about €39 at 10:07 a.m. local time, the fourth-biggest decline in the STOXX Europe 600 Index, which was little changed.
“The travel and leisure sector is fully based on trust and confidence; people only travel when they feel they are safe,” Andre Juillard, a Paris-based analyst at Kepler Cheuvreux, said in a note on Monday. “If not, international tourism in particular can be hit hard.”
About 20 per cent of Accor’s earnings before interest and tax come from Paris and the surrounding region, according to Juillard. France accounted for 31 per cent of the company’s 2014 revenue.
InterContinental Hotels Group, the owner of the Crowne Plaza and Holiday Inn chains, fell as much as 4.2 per cent to 2,405 pence in London, the lowest since 20 October.
News by Bloomberg, edited by Hospitality Ireland