Accor Full-Year Profit Rises as CEO's Hotel Revamp Pays Off
Accor, Europe’s largest hotel operator, said 2015 profit increased almost 11 per cent as an overhaul of the French company paid off and demand for accommodation rose in most of Europe.
Earnings before interest and taxes increased to €665 million from €602 million a year earlier, the Paris-based owner of the Sofitel and Ibis brands said in a statement on Thursday. That beat the average estimate of €663 million from 19 analysts in a Bloomberg survey.
"The momentum driven by the strategic, operational and cultural transformation," is "clearly producing results," Chairman and Chief Executive Officer Sebastien Bazin said in the statement. "AccorHotels is moving forward."
Since taking up his post in 2013, Bazin has made wide- ranging changes that include cutting costs, expanding in China, adding luxury properties and competing more aggressively online. In December, Accor agreed to buy the owner of the upscale Fairmont, Raffles and Swissotel brands for about $2.9 billion in shares and cash. Earlier in the year, Accor acquired hotel- reservation service Fastbooking.
Accor, which operates almost 500,000 rooms - most of which are in Europe - said revenue rose 2.3 per cent globally to €5.6 billion, driven by increases in Spain, Italy, Germany and the UK.
Business in France was hit by terrorist attacks in November, which pushed revenue in the country down 6.6 per cent in the fourth quarter, leading to a 0.5 per cent drop for the year.
In October, the company said it was targeting full-year EBIT of between €655 million and €675 million.
News by Bloomberg, edited by Hospitality Ireland