Accor pre-tax operating profit up 24.8 percent: results

27th February 2008, Comments 0 comments

Revenue on the services side rose 16.5 percent, and 7.8 on the hotels side.

   PARIS, Feraury 27, 2008 - French hotel and services group Accor on
Wednesday announced a 24.8 percent increase in its pre-tax operating profit in
2007, on an 6.8 percent increase in consolidated revenue.
   Revenue on the services side rose 16.5 percent, and 7.8 on the hotels side,
boosted in particular by the continuing upward trend in the European business.
   Accor reported a net profit, group share, up 76.2 percent to 883 million
euros (1,325 million dollars).
   In December, Accor announced it had sold 57 hotels in France and
Switzerland to a consortium of financial groups for 518 million euros (750
million dollars).
   It was part of a restructuring plan to sell 350 hotels to raise 1.9 billion
euros by 2008.
   In September it completed the sale of its US hotel chain Red Roof Inn to an
investment consortium for 1.313 billion dollars (954 million euros).
   Wednesday's report explained that this was to reduce its exposure to the US
market. "With the dollar at a historic low against the euro, currency risk is
more limited."
   North America now represented only eight percent of its operating profit,
compared with 25 percent in 2001.

AFP 

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