Accor Reports 2007 Revenue Up 6.8 Percent

Accor’s consolidated revenue totaled 8,121 million euros in 2007, an increase of 6.8 percent compared with the previous year. Based on a comparable scope of consolidation and at constant exchange rates, the like-for-like increase was 6.5 percent.

The group’s expansion strategy boosted revenue for the year by 7.9 percent, while the disposals carried out under the ongoing asset right strategy and divestments of non-strategic businesses led to a 6.5 percent reduction. The currency effect for the year was a negative 1.1 percent.

Revenue for the fourth quarter of 2007 came to 2,002 million euros, up 1.9 percent over the year-earlier period. Reported growth takes into account the divestment of Red Roof Inns and the Italian Food Services business, which were removed from the scope of consolidation effective Aug. 31, 2007 and Sept. 30, 2007 respectively.

The company said its fourth quarter performance reflects sustained demand in the hotels business, with revenue up 6.9 percent like-for-like compared with increases of 6.1 percent in the third quarter and 5.2 percent in the first half. Growth was led by Europe, where all segments performed well.

Revenue in this region increased 7.9 percent like-for-like in the fourth quarter, compared to a 6.9 percent increase in worldwide hotel revenue, reflecting a significant improvement in occupancy rates and average prices. The services business also enjoyed sustained growth, with fourth quarter revenue up 11.5 percent like-for-like.

The expansion strategy lifted revenue for the quarter by 8.6 percent, while divestments (mainly of Red Roof Inns, Go Voyages and the Italian Food Services business) had a negative impact of 12.6 percent.