Accor Revenue Declines After French Hotel Operator Sells Assets
Stock Chart for Accor SA (AC)
Accor SA (AC), Europe’s largest hotel operator, said third-quarter revenue fell 3.1 percent because of the euro’s strength and divestments.
Sales declined to 1.44 billion euros ($2 billion) from 1.49 billion euros a year earlier, the Paris-based owner of the Sofitel and Ibis brands said in a statement today.
Accor is in the first year of a three-year reorganization that includes increasing its focus on emerging markets, reducing debt, selling some properties and cutting costs. It plans to reduce its share of leased or owned properties to 20 percent by 2016, from about 58 percent, with the rest operated under franchise or management contracts.
Accor said it opened 14,100 rooms during the first nine months. Its three-year plan foresees opening 30,000 rooms a year through 2016.
In August, the company announced the appointment of Sebastien Bazin, the former head of European investing at Accor shareholder Colony Capital LLC, as chairman and chief executive officer.
Accor sold its chain of more than 1,100 Motel 6 budget hotels in North America to Blackstone Group LP for $1.9 billion last year. The company used some of the proceeds to expand in regions including Asia.
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