High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/8dd6967a-9a51-11e3-8e06-00144feab7de.html#ixzz2tw9aHwA0
€100m savings plan helps to bolster Accor’s fortunes
Accor, the French hotel group, said a savings plan coupled with growth in key European markets helped it return to profit last year.
Europe’s largest hotel operator by number of rooms said operating profit reached €536m in 2013, a like-for-like rise of 5.3 per cent compared with 2012 and slightly above both its January guidance of €530m and consensus estimates of about €528m.
Net profit was €126m compared with a loss in 2012 of €599m, the company said. By late afternoon on Thursday, Accor shares closed down 0.6 per cent at €36.53. They have gained more than 22 per cent in the past six months.
The group also said that a €100m savings plan announced late last year had already produced €37m by the end of December.
Thursday’s results were the first since Sébastien Bazin, the new chairman and chief executive, announced a strategic plan in November to organise the group into two divisions – one focusing on operations and the other on property management.
Mr Bazin’s appointment – he had previously sat on the board as a representative of Colony Capital, the private equity firm that is a large Accor shareholder – followed a prolonged period of boardroom differences and management changes.
Mr Bazin described the results as “robust”. He added: “While the economic environment remains uncertain in a few regions, overall we are benefiting from the global recovery”.
The group, whose brands include Sofitel and the budget Ibis chain, said it planned to raise the dividend to €0.80 from €0.76 previously.