Accor reports 'solid' financial performance in 2013
The France-based company, whose portfolio includes the Ibis, Sofitel, Novotel and Mercure brands in the UK, saw like-for-like revenue rise 2.7 per cent year-on-year to €5.536m in 2013, and operating profit soar 5.9 per cent to €446m. EBITDAR rose 2.6 per cent year-on-year to €1,759 million.
Accor said there was ‘robust growth’ in the key European markets last year, led by good performance in capital cities in the first six months and recovery in the regions in the second half of the year.
The group’s upscale and midscale hotels achieved like-for-like revenue growth of 2.9 per cent, with EBITDAR up one per cent to €964m. Accor said this reflected a ‘sharp rebound’ in demand in the second half of the year after a sluggish first half.
Revenue from economy hotels grew 2.4 per cent, with EBITDAR again reflecting a clear second-half upswing and ending the year at €752m.
Accor said the rebranding of 1,700 of its Ibis family hotels helped drive growth in the economy segment, while the implementation of a €100 million savings plan helped boost profits across the whole group.
“Our 2013 results were robust, our financial situation is healthy and our teams are energetically deploying the new roadmap with commitment and dedication,” said Accor chairman and chief executive officer, Sébastien Bazin.
“While the economic environment remains uncertain in a few regions, overall we are benefiting from the global recovery and the strength of our brands.”
New strategy
Accor launched a new strategy at the end of last year, splitting its business as hotel operator and brand franchisor (HotelServices) and its emerging role as hotelowner and investor (HotelInvest).
Looking to 2014, the company said it would focus on boosting the gross revenue and cash flow generation of its HotelServices business and increasing its HotelInvest performance by restructuring the least profitable lease contracts and increasing the percentage of owned hotels.
Additionally, it said it would look to redefine its digital strategy and work on strengthening its brands.
“In 2014, HotelServices is focusing its priorities on innovation, digital media and the brands. We are also beginning to deploy the HotelInvest strategy. Our teams are now organized around these two core competencies, with dedicated reporting processes and their own objectives,” said Bazin.
