French hotel group Accor SA (ACRFY.PK,ACRFF.PK) Tuesday reported increased profit for the first half of the year, helped by higher demand and cost savings.
Accor also announced today the acquisition of a portfolio of 13 ibis hotels in the United Kingdom for 89 million euros.
Net profit, group share, for the first half of the year increased to 60 million euros ($79.2 million) from 34 million euros last year. Prior-year results have been restated.
Earnings before Interest and Tax, or EBIT, was 219 million euros, compared with 191 million euros last year. EBIT climbed 17.6 percent on a like-for-like basis, amid strong demand in all regions except France, and benefited from cost savings.
Earnings before interest, taxes, depreciation, amortization and rental expense or EBITDAR edged up 0.4 percent to 807 million euros, and EBITDAR margin grew 0.7 percentage points to 31.1 percent.
Revenue, however, slipped 1.8 percent to 2.593 billion euros from 2.640 billion euros, but rose 2.8 percent on a like-for-like basis due to robust demand in the majority of the Group's key markets.
On a like-for-like basis, HotelInvest's revenue rose 1.6 percent to 2.286 billion euros. Revenue increased in all regions except France where it was down 1.8 percent like-for-like due to a three-point increase in the Value Added Tax rate.
In HotelServices, revenue rose 5.7 percent like-for-like to 582 million euros. The Americas showed an increase of 10.8 percent and the Mediterranean-Africa- Middle East or MMEA witnessed a 10.1 percent climb.
The company opened 92 hotels with 12,284 rooms during the period. Of these, 90 percent were under management contracts and franchise agreements, and 69 percent were outside Europe.
Sébastien Bazin, Chairman and CEO, said, "In the first-half of 2014, our planned reorganisation ensured the Group's transformation is now well underway...In the second half we will focus in particular on deploying the HotelServices strategy built around innovation, digital solutions and brands."
Accor said its business trends remained stable during the summer season, particularly in July, with Revenue Per Available Room or RevPAR increasing across all geographies except France. Further, initial indicators for August were encouraging.
The Group expects to report full-year EBIT of 575 million euros to 595 million euros, compared with adjusted EBIT of 521 million euros in 2013.
Further, the firm said separately that it acquired a portfolio of 13 ibis hotels in the United Kingdom for 89 million euros. The HotelInvest division purchased this portfolio in line with its strategy to consolidate the owned hotel base while strengthening its economy and midscale segments.
The portfolio includes 12 ibis and 1 ibis budget, representing 1,194 rooms located across the UK. The acquisition will be financed at 100 percent through debt. It will be immediately accretive to Accor's EBIT.
The stock closed in Paris at 35.99 euros on Monday.
For comments and feedback contact: editorial@rttnews.com
Business News
December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.