Strong first half results at Accor

Strong first half results at Accor

Accor has reported a 27.5 per cent rise in first-half earnings before interest and taxes to €199 million.

However, Europe’s largest hotel group said it remained “watchful” over the potential impact of a second global recession in the second half of the year.

No impact had been discerned to date, the world’s fourth-largest hotel group said.

Revenue for the period increase 4.4 per cent compared to last year, rising to €2.97 billion.

Higher occupancy rates, a gradual recovery in average room rates, and cost control lifted first-half earnings.

Accor shares have lost 31 per cent so far this year, but rose by four per cent following the release of today’s results.

With operations in 90 countries and 4,200 hotels - ranging from the luxury Sofitel chain to the budget Ibis and Motel 6 operations -Accor has a market value of €5.2 billion.

Accor opened a further 13,700 rooms during the first half of the year.

Accor split into separately listed hotel and service voucher businesses to boost growth and expand abroad last year.