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Hotel giant: strength in Europe, weakness in Brazil, France

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Accor’s quarterly sales accelerate but caution voiced for France, Brazil
After releasing buoyant first-quarter sales growth last week, Europe’s biggest hotel group says that demand for rooms remains robust across most regions but that it is cautious on two countries – Brazil and France.
Accor is currently reorganising and faces several problems including a weak economic climate and rising value-added taxes in France, its home market, which generates 30% of group revenue.
The Islamist terrorist attacks in Paris in January have cut demand for budget hotels in the French capital, even as upscale hotels benefit from a decline in the euro. Security measures taken by the French government have hit school and sports trips, leading to a 0.8% fall in revenues at Accor’s F1 budget hotels.
In Brazil, the economy is slowing. Brazil represents 7% of Accor’s revenue and performance there is uncertain in all hotel segments.
Nevertheless, the group’s quarterly revenue rose 5.6% to reach €1.225 billion in the first quarter of 2015, and up 5.1% from Q4 2014. Accor sees very positive trends in Germany, the UK, Spain, Portugal and Australia, and in the mid- and upscale segments in France.
Reuters
[pictured: Accor’s Sofitel Golfe d’Ajaccio Thalassa Sea & Spa, Corsica]

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