 posted a record profit for the financial year, following effective restructuring efforts and strong demand in Germany and Britain.){kind=link}
AccorHotels (EPA:AC) posted a record profit for the financial year, following effective restructuring efforts and strong demand in Germany and Britain.
The company, which is Europe’s largest hotelier, saw group pre-tax earnings rise 3.8 percent to €696 million for the year, surpassing market expectations. Strong performance across its German and British operations offset weaker demand in France, despite some signs of rejuvenation in The country.
Despite the strong numbers, investors failed to be reassured by the company’s lack of guidance for the upcoming year and the fact that it looks to be unlikely that any significant amount of the funds will go to shareholders.
The company is currently in the midst of a vast re-organisation in order to reduce costs and assist further expansion into China and the luxury hotel market. To that effect, AccorHotels have acquired FRHI Holdings, who own The Savoy Hotel in London and the legendary Plaza in New York.
The hotel group reaffirmed that it is proceeding with a planned sale of its HotelInvest property business, which are worth an estimated 6.6 billion euros ($6.9 billion), and is set to be completed by July of this year.
Whilst AccorHotels is expected to retain around 30 percent of the business, the majority sale will raise capital to fund its expansion ambitions.
Chief Executive Sebastien Bazin commented that the future sale would ultimately give the group: “significant headroom to seize numerous opportunities provided by the rapid transformation of our industry.”
Most recently, the hotel group chose to appoint former French President and 2016 candidate Nicholas Sarkozy to oversee International Strategy. Sarkozy suffered a humiliating first round defeat last year in the French presidential primaries, to new Conservative Francois Fillon. More importantly, Mr Sarkozy is currently being investigated regarding irregularities relating to his failed 2012 presidential bid – if he is found guilty he will have to serve a year in prison.
Shares in AccorHotels are currently down 2.94 percent as of 15.12PM (GMT).