Accor withstanding economic downturn
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Accor has posted its results for full-year 2008, with figures showing that the European hospitality giant has so far been able to withstand the global economic downturn with a EUR875 million (US$1.1 billion) profit before tax. The figure represents a 13.0% year-on-year rise.
Hotels revenue ended the year up 2.1% like-for-like, with growth led by economy hotels outside the United States (up 3.2% like-for-like), and the Upscale and
Midscale segments (up 2.6% like-for-like). Revenue from economy hotels in the US declined by 2.1% during the year.
Accor admitted however, that the effects of the global economic downturn had quickly spread to the hotels business, especially in the fourth quarter. In response to this Accor has moved to stem the potential impact on earnings with measures in three key areas:
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