Accor Says Revenue Dropped on Asset Sales, Euro’s StrengthAndrew Blackman
Accor SA, Europe’s largest hotel operator, said first-quarter revenue fell 1.2 percent because of divestments and the euro’s strength.
Sales dropped to 1.23 billion euros ($1.6 billion), the Paris-based owner of the Sofitel and Ibis brands said in a statement today, without giving a year-earlier figure. Analysts expected about 1.24 billion euros, the average of eight estimates in a Bloomberg survey.
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.
Accor said it opened 4,628 new rooms during the first three months of the year.
The euro’s appreciation against currencies including the Brazilian real and the Australian dollar knocked 16 million euros off of Accor’s revenue, according to the statement. Like-for-like sales, excluding divestments and currency fluctuations, were little changed, the company said.