Accor delivers record performance in 2014

18-Feb-2015 - Last updated on 26-Apr-2021 at 17:43 GMT

Accor has posted its full year results for 2014, showing strong growth across its business

Accor said its dramatic restructure paid off in 2014, with net profits up 77 per cent year-on-year on the back of strong operating performance across its business.

According to the hotel group’s full-year results for 2014, like-for-like revenue rose 3.8 per cent to €5.5bn over the year, while operating profits increased by 22.1 per cent to €578m

EBIT reached record high of €602m, up from €521m in 2013, an increase of 11.7 per cent on a like-for-like basis, and net profits reached €602m.

Accor said the growth reflected ‘strong momentum’ in key markets and good operational performance from both its HotelServices and HotelInvest businesses.

Accor chief executive Sébastien Bazin said: “The in-depth transformation being carried out by Accor started to pay off in 2014, with the Group posting excellent results in both its businesses – HotelServices and HotelInvest – and strengthening its leadership position.”

UK growth

Accor said the revenue growth achieved by its HotelInvest business was driven by ‘sustained activity’ in Northern, Central and Eastern Europe (NCEE), with particularly strong demand recorded in the UK.

In order to make the most of UK demand, HotelInvest is working to strengthen its asset portfolio and has completed the sales and acquisitions of 20 UK hotels since it was formed in 2013.

The biggest deal of 2014 was the acquisition of 13 hotels in eight strategic locations previously leased from Tritax for £70m.

HotelInvest also converted its ibis budget hotels in Leicester and Derby from fixed leases to franchises, and disposed of two Novotel hotels in Nottingham and Stevenage, which have been franchised back to Accor UK. It sold the ibis Styles in St Andrews Square, Edinburgh to St James Hotel Ltd and retained the management contract.

Looking ahead, HotelInvest is building a new 310-bedroom hotel in Canary Wharf, which will open under its Novotel brand in late 2017. It has also just completed the acquisition of a site in Canning Town, where it will open a 196-room ibis hotel in 2017 as part of the Canning Town and Custom House Regeneration Programme developed by property group Bouygues UK.

Herve Deligny, chief operating officer HotelInvest, Accor UK & Ireland, said: “The HotelInvest team at Accor UK has been extremely active in its first year, completing the acquisition or sale of 20 hotels across the ibis and Novotel brands whilst retaining Accor’s presence through direct ownership, management contracts or franchises.

“The group will continue to assess the best structure for each hotel based on profitability and location.”