Accor sets quarterly expansion record, posts sustained revenue growth

PARIS Accor SA set a new company record in terms of expansion in the first quarter, adding about 6,600 guestrooms across 50 hotels.

Europe’s largest hotelier also posted sustained revenue growth in the quarter, up 5.8% across all segments, led by higher occupancy rates.

The record number of openings was mainly through management contracts and franchise agreements, with 44% occurring in Europe and 29% in Asia Pacific. The company will need to set another record later this year if it expects to meet its goal of opening 30,000 new guestrooms before the end of 2011.

Continuing the recovery observed in 2010, Accor delivered a robust revenue performance in the first quarter, driven by ongoing improvement in demand in most segments. First quarter revenue amounted to €1.4 million, shaped by improving RevPAR that reflects higher occupancy rates across segments. Revenue in the upscale and midscale segments rose a combined 6%, including like-for-like growth of 5.7%.

The economy segment, excluding the United States, performed well, with revenue up 7%. The increase was once again attributable to improved occupancy rates, which drove up RevPAR in most Europe countries, except Spain.

Despite the uncertainty created by recent geopolitical events in Japan, Africa and the Middle East, and by the macroeconomic environment, Accor is confident that the hotel cycle will continue to recover in 2011, mainly driven by demand, the company says.