AccorHotels Sticks To Goals For Future Earnings Growth
AccorHotels, Europe's largest hotels company, has reaffirmed its financial targets for future earnings growth helped by acquisitions and cost controls.
The business performance of Accor, whose brands include upmarket chains such as Raffles and Sofitel as well as budget brands such as Ibis, has benefited from recent acquisitions and a general pick-up in the broader French tourism sector.
Accor stuck to its target of doubling earnings before interest, tax, depreciation and amortisation (EBITDA) to the €1.2 billion level by 2022.
It also said it expected cost controls and stable capital expenditure levels to boost cash-flow and future dividends.
Accor's bullish outlook contrasts with US rival Marriott, which this month cut its fourth-quarter forecast due to weak demand in north America. Hilton also hinted at signs of a slowdown.
In October, Accor made a slight increase to previous guidance regarding its 2018 profits, with events such as this year's Ryder Cup golf tournament boosting visitor numbers to its French hotels.
Accor also said this week it would buy full control of Polish hotels company Orbis, further highlighting the company's appetite for takeovers.
"Our targets are ambitious yet achievable. AccorHotels is more agile, more profitable, and more global, with a well-balanced brand portfolio," said Accor chairman and chief executive Sebastien Bazin.
Previous acquisitions under Bazin, who took over in 2013, include London's SavoyHotel, The Plaza in New York, the Raffles Hotel in Singapore and Australian hotelgroup Mantra.