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AccorHotels optimistic, maps strategy ahead

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Hotel giant forecasts its operating profit to rise this year
AccorHotels forecasts its operating profit to rise this year, despite the uncertainty in the travel and tourism market. And buoyed by the cautious optimism it feels, it is continuing its spending spree.
The hotel group is benefiting from restructuring efforts and is getting an additional boost from its recent purchase of luxury hotel group FRHI, which manages the brands Fairmont, Raffles and Swissôtel.
However, operating profit for the first half of 2016 fell 4% to €239 million, which the group blames on the terror attacks in Paris and falling revenues in recession-hit Brazil. But revenues for the period grew 2%, reflecting solid activity elsewhere in Europe.
AccorHotels now forecasts a full-year operating profit of between €670 million and €720 million, up from last year’s €665 million.
The group revealed this week that it was in exclusive talks to buy 80% of Paris-based concierge service provider John Paul for around €135 million. The move extends AccorHotels’ strategy of digital acquisitions while increasing its exposure to the luxury sector, as it and other hotel giants fight off pressure from new competitors like Airbnb.
Reuters / Market Watch

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