Breaking Travel News

Accor increases dividend as developing markets see growth

Accor increases dividend as developing markets see growth

French hotel giant Accor has confirmed it will increase its 2012 dividend by 17 per cent on the back of higher operating profits.

Robust emerging markets made up for a more difficult economic climate in Europe, seeing earnings before interest and tax reached €526 million.

The compares to company guidance of €510-530 million and exactly in line with analysts’ average estimate of €526 million.

The world’s fourth-largest player, Accor trails only InterContinental, Marriott and Starwood Hotels in terms of size.

Accor also said today it would accelerate its shift to an asset light business model - operating more hotels under contracts rather than owning them.

It said this strategy would cut net debt by €2 billion euros by 2016.

In the UK, following a number of openings during 2012, Accor now has 197 hotels including 89 ibis, 31 Novotel and 74 Mercures.

Accor also opened its first Pullman in the UK and a second MGallery.