Accor records strong growth in profits

Accor records strong growth in profits

Accor has said it will accelerate expansion plans after reporting a strong increase in profits for the first half of financial 2012.

The French hotel giant recorded a sharp 10.1 per cent like-for-like improvement in earnings before tax and interest, to €212 million, in particular thanks to the success of the asset management strategy.

Earnings before interest, taxes, depreciation, amortisation and rental expenses amounted to 30.7 percent of revenue, 0.4 of a percentage point more than the margin reported a year earlier.

Revenue advanced 3.6 per cent to €2.72 billion, excluding acquisitions and disposals, rising fastest in Latin America.

Accor forecast full-year earnings before interest and taxes will be between €510 million and €530 million.

Paris-based Accor also saw record expansion that added 20,700 new rooms, or 141 hotels, including through the previously reported deal with real estate group Mirvac.