Wednesday, 22 February 2012 at 11:11, Reuters, Paris
Accor has operations in 90 countries ranging from luxury Sofitel chain to budget Ibis. (REUTERS)
Europe's largest hotel group, Accor, said it was confident a recovery in demand for hotel rooms would continue this year as it handed investors a higher-than-expected dividend on the back of forecast-beating 2011 profits.
Accor, the world's fourth-largest hotel group behind the InterContinental, Marriott and Starwood Hotels , said on Wednesday it expected robust emerging markets to underpin growth and that, despite an uncertain economic climate, business was holding up.
"The trends observered in the fourth-quarter, 2011, continued into January 2012, with RevPAR (Revenue per Available Room) figures stable in Europe and strong revenue growth in emerging markets," Chairman and CEO Denis Hennequin told a conference call with journalists.
"The economy segment in Europe and the United States is also continuing to benefit from rising room rates," he added.
Chief Financial Officer Sophie Stabile said bookings for January and February were "good".
Accor posted an 18.8 per cent rise in 2011 operating profit, above forecasts, driven by higher occupancy rates and a gradual recovery in average room rates.
Earnings before interest and tax (EBIT) reached €530 million ($703m), at the top end of the company's guidance of €510m to €530m and above analysts' average estimate of €524m.
The French company, which owns 4,200 hotels worldwide, said it would pay a dividend of 1.15 euros per share, against 0.62 euros for 2010. This beat analysts' expectations of 0.63 euros.
With operations in 90 countries ranging from the luxury Sofitel chain to budget Ibis and Motel 6 operations, Accor has a market capitalisation of €5.8bn.
The group said it was confident about its 2011-2015 asset disposal programme, having more than halved net debt to €226m at the end of 2011.
Accor shares have gained 34 per cent this year, outperforming a 9.7 per cent rise in the CAC-40 index of French blue chips and an 8 per cent increase in the STOXX Europe 600 travel and leisure sector index after a string of positive news on property disposals and relief its business was holding up despite a faltering European economy.
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