PARIS Accor has raised its 2010 profit projection by about 5%, reporting fourth quarter revenue results that surpassed analyst expectations.
Like-for-like revenue growth for the quarter reached 9.4%, reflecting ongoing improvement in occupancy rates, while the recovery in average room rates continued in most countries, Accor says.
Accor now expects 2010 earnings before interest and taxes of around €440 million, an improvement on its previous year-end target of between €400 million and €420 million. Accor had earlier upped its target in November, with the release of its third quarter earnings statement.
Fourth quarter hotel sales reached €1.448 billion, a marginal improvement on analyst expectations. Performance was especially strong in Germany, where revenue spiked 15.7% in the quarter and 13.4% for the full year on a like-for-like basis. Demand in major cities like Cologne, Munich and Frankfurt helped to drive an increase in occupancy rates, while hotel room profits have continued to improve.
Accor’s full-year sales reached €5.693 billion, up 7.4% on a like-for-like basis.
