Hotel giant AccorHotels has dropped plans for a potential stake in Air France-KLM.
In June, as part of its strategy to develop its range of services in the travel space, Accor had stated it was considering the establishment of a strategic alliance with the airline group.
Plans had included a potential acquisition of a minority stake in the capital of Air France-KLM, jointly with French and European investors.
However, given that required conditions for the acquisition of a minority stake in Air France-KLM have not been met at this stage, AccorHotels has decided not to further pursue this opportunity, the company said this morning.
“The group remains convinced that a strengthened partnership between hotel companies and airlines offers significant value creation potential,” Accor added in a statement.
Elsewhere, Accor said revenue for the first half of 2018 was up eight per cent on a like-for-like basis to €1,459 million.
EBITDA increased 4.2 per cent to €291 million.
Net profit stood at €2,179 million, but this was significantly skewed by the sale of a stake in AccorInvest.
Sébastien Bazin, chairman and chief executive of AccorHotels, said: “The first half of 2018 saw AccorHotels continue the deep-seated transformation of its business model, with the sale of a majority stake in the capital of AccorInvest, the integration of Mantra in Australia and Mantis in South Africa, and the acquisition of Gekko in France.
“The second half of the year will see Mövenpick in Middle East, Atton in South America and sbe in the US join our network, enabling us to consolidate our market shares and the vast array of choices we offer our customers.
“The group’s strong operating performance delivered solid results in first-half 2018 and record organic growth with the opening of 20,000 rooms over the period.
“Today, AccorHotels operates more than 4,500 hotels and 650,000 rooms around the world, the majority of which are located outside Europe.
“Underpinned by a reinforced pipeline, the group’s strong prospects mean it is firmly on track to achieving its medium-term targets.”
AccorHotels benefited from solid business levels in most of its key markets in the first half of 2018.
With the opening of 45,150 rooms (301 hotels) during the period, of which 19,757 through organic growth and 25,393 via the acquisitions of Mantra and Mantis, at June 30th the group had a portfolio of 652,939 rooms (4,530 hotels) and a pipeline of 167,000 rooms (959 hotels), of which 79 per cent in emerging markets.
Accor revealed a full-year 2018 EBITDA target of between €690 million and €720 million.