Accor Revenue Declines on Asset Sales, Euro's StrengthAndrew Blackman
Accor SA, Europe’s largest hotel operator, said first-quarter revenue declined 5.5 percent because of divestments and the euro’s strength.
Sales fell to 1.14 billion euros ($1.6 billion), the Paris-based owner of the Sofitel and Ibis brands said in a statement today. Analysts expected about 1.21 billion euros, the median of six estimates in a Bloomberg survey.
Accor opened 4,449 new rooms during the first three months of the year. The company said 85 percent of the additional rooms were through franchise and management contracts.
Revenue gained 2.1 percent on a like-for-like basis, Accor said. The company said there was “very favorable demand” in all its key markets apart from France, where a sales-tax increase hurt net room rates.