AccorHotels, has delivered a 10.1% rise in like-for-like operating profits for 2017, helped by cost controls and strong demand in most of its’ key regions. The figures were above company guidance and broker forecasts.
The group, which owns brands including Ibis and Sofitel, said earnings before interest and taxes (EBIT) reached €492ms in 2017.
This was above a revised company’s guidance for a 2017 EBIT at the upper end of a €460-480m range, while analysts polled by Inquiry Financial for Reuters had forecast €481m. Revenues for the year were €1.937bn, representing a like-for-like growth of 7.9%.
The only region where Accor struggled was South America, notably recession-hit Brazil. However, Accor said numbers had improved in Brazil in the fourth quarter.
Over the last year CEO Sebastien Bazin, has been intent on cutting costs as well as expanding into growth markets, specifically China’s luxury hotels market. Acquisition has also been in focus, with AccorHotels buying FRHI Holdings, owner of London’s Savoy and New York’s Plaza hotels.
The group revealed that discussions about opening up the capital of its property unit AccorInvest to a group of French and international investors were in the final stages.
The company’s share price has performed strongly over the last few months rising from around 40.77 in mid-November 2017 to the current 45.45. Most brokers have Accor down as a ‘buy’ or a ‘strong buy’.