Accor has announced a new round of cost-cutting measures in preparation for what the it sees as tough times ahead.
The French hotel group, the fourth largest in the world, gave a full-year profit target slightly below forecasts. It is aiming to save some 75 million euros (US$111m) over 2009 and 2010, partly by cutting spending on marketing.“In Europe, the business customer is holding firm but the leisure is weaker,” said Gilles Pelisson, Accor Chief Executive Officer.
“2009 and 2010 could be more difficult on a macroeconomic basis,” he said.
Accor said it was targeting a full-year profit before tax of 910-930 million euros, which several analysts said was below a widely quoted market consensus of 940 million euros.
“At this stage, there is no plan for disposal of services,” Pelisson added. “But we are committed to see how the market can better reflect the value of our stock price.”
Accor posted a fall in first-half earnings before interest, taxation, depreciation, amortisation and rental costs (EBITDAR) to 1.088 billion euros, down from 1.095 billion euros last year.