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Accor Up After Q1 Revenues Rise

Shares of Accor SA (ACRFY.PK,ACRFF.PK) rose over 2 percent in early morning trade in Paris, after the French hotel group said its first-quarter revenue grew nearly 8 percent from last year. According to the company, growth was strong in almost all markets in the quarter and trends were very positive in France, Germany and the UK, while the growth recorded outside Europe was also sound.

The only areas where performances remain uncertain are the Economy segment in France and hotels in all segments in Brazil, Accor said.

First-quarter revenue grew 7.9 percent to 1.225 billion euros from proforma revenues of 1.135 billion euros, and were up 5.6 percent at constant scope of consolidation and exchange rates, or on a LFL basis.

In HotelInvest, quarterly LFL revenue grew 4.8 percent to 1.055 billion euros. It had a portfolio of 1,350 hotels, of which 86 percent was in Europe and 94 percent in the Economy and Midscale segments.

Within the business, the only brand to record a decline was hotelF1, where revenue
fell 3.5 percent, causing the revenue of the Economy segment to edge down 0.8 percent. Increased security measures in the wake of the terror attacks earlier this year, have led to decline in school and sports trips which in turn reduced revenues of budget hotels.

HotelServices revenue rose 7.6 percent like-for-like to 290 million euros, with very strong growth across all regions.

In France, quarterly Revenue Per Available Room or RevPAR increased 3.7 percent, driven
by a net increase in activity in markets other than Paris thanks to the SIRHA trade fair in Lyon and various medical conferences in Lille and Bordeaux.

Looking ahead, Accor said it has a favorable outlook for the group. According to the company, the Iberian peninsula continues to recover at a rapid pace, and so is Australia. The Group will also pay close attention to London, where performance levels began to stabilize during the first quarter.

The stock added 2.1 percent in early trade in Paris to 49.90 euros.

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