AccorHotels reveals increase in net profits despite challenging French market

AccorHotels reveals increase in net profits despite challenging French market

AccorHotels has reported financial results for 2016, revealing an 8.1 per cent increase in net profits to €266 million when compared to the previous year.

EBIT at the French hotel giant was up 4.6 per cent to €696 million, while revenue was up 0.9 per cent to €5,631 million for the year.

Sébastien Bazin, chairman, AccorHotels, said: “AccorHotels has posted an excellent performance for 2016 in a challenging environment, in particular with record levels of EBIT and numbers of hotel rooms opened.

“Thanks to the efforts made by our teams around the world, we have implemented strong operational levers, which enabled growth in earnings to outpace that in revenue.

“We have ventured out to conquer new markets and offer new services thereby consolidating our leadership position and opening up new horizons for our clients.

ADVERTISEMENT

“Carrying out our project to turn HotelInvest into a subsidiary in 2017 will give us significant headroom to seize the numerous opportunities provided by the rapid transformation of our industry.”

Accor saw record development, with 81,042 rooms in 347 hotels, opening over the past year.

Some 89 per cent of these were under management contracts - including 117 hotels and 43,481 rooms via the acquisition of Fairmont Raffles Hotels International - and franchise agreements.

In addition to the deal to purchase Fairmont Raffles Hotels International Group, Accor also completed the acquisition of 100 per cent of onefinestay, a leader in luxury serviced home rentals, and 87 per cent of John Paul, world leader in concierge services.