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AccorHotels has reported net profit increased 66 per cent to €441 million for financial 2017.
The French hospitality giant saw revenue increase 17.7 per cent, to €1,937 million, for the year.
AccorHotels benefited from very strong business in the majority of its key markets, significantly increasing its operating margins and results on the back of tight cost control, the synergies resulting from its acquisition of FRHI and the careful management of digital expenses.
Sébastien Bazin, chief executive of AccorHotels, said: “AccorHotels’ earnings for 2017 mark another leap in performance, with excellent operating results and record development.
“The group continues to benefit from positive market trends with a confirmed increase in volumes.
“Against this buoyant backdrop, AccorHotels continues to pursue its dynamic trajectory, consolidate its market share and enrich its range of services for customers and partners.
“The group has never been so strong.”
Accor was able to capitalise on record development with the opening of 51,413 rooms across 301 hotels over the year.
Of these 94 per cent are operated under management and franchise contracts (including 10,000 rooms for Rixos Hotels and BHG).
The group ended 2017 with a hotel portfolio of 616,181 rooms across 4,283 hotels and a pipeline of 161,000 rooms at 874 hotels.
Some 78 per cent of these are in emerging markets and 47 per cent of which are in the Asia-Pacific region.
Accor is, however, still to complete a much-anticipated €6.6 billion transformation plan to split its business in two.
Upon joining as chief executive in 2013, Bazin split Accor into two divisions: Hotel Services, its hotel operating and franchising arm; and HotelInvest, its real estate ownership and property business.
The divestment of the latter was planned for last year but has failed to materialise.
“Discussions are ongoing with tier-one French and international investors,” Accor said today.
“They are now in their final stages.”
Source: breakingtravelnews.com