Accor has increased its full-year earnings target for 2013, after revenues climbed across the group.
The European hotel giant said it now expects to generate earnings before interest and tax (EBIT) of EUR530 million (US$718) for the full-year – the top end of its previous guidance of EUR510-530m.
This upward revision follows an increase in revenues reported for 2013. Accor’s group revenues increased 2.7% on a like-for-like basis last year, to EUR5.54 billion. This included a 1.5% increase in revenue from Accor’s owned and leased hotels and a 14.7% jump in management and franchise fees.
All market segments saw steady growth, with upscale and midscale hotels experiencing a 2.9% rise in revenues, to EUR3.44bn, and revenue from economy hotels climbing 2.4% to EUR1.97m.
Accor said the “ramp-up of the MGallery brand and the reopening of newly renovated Pullman flagships” helped boost the upscale segment, while the performance of European hotels helped boost the economy sector.
“In 2013, Accor delivered a solid improvement in its business. This performance reflects the group’s strengths, including its recognised brands covering every segment of the hospitality market, a global footprint with leadership positions in the most promising growth regions and enthusiastic teams dedicated to driving the group’s development,” said Sébastien Bazin, chairman & CEO of Accor.
Last year, Accor embarked on a major restructuring strategy, splitting its business into two sections: HotelServices, for its managed and franchise hotel, and HotelInvest – a hotel owner and investor. And Bazin said that through the new strategy, he wanted to make Accor the “world’s best performing and most highly-valued hotel company”.
Accor opened a total of 170 hotels comprising 22,637 rooms in 2013, of which 85% were under management and franchise agreements. By region, 41% of the new openings were in Europe, 37% in Asia Pacific, 13% in Latin America and 9% in the Middle East and Africa.
By year-end, the group’s portfolio stood at 461,719 rooms. This makes Accor the world’s sixth biggest hotelier.