Accor's profit is up on the back of strong global growth

Accor’s pre-tax operating profit was up 18.8% year-on-year in 2011 from €446 million (US$ 590 million) to €530 million (US$701 million) while revenue increased 2.5% to €6.1 billion (US$8 billion).

In the upscale and midscale segment revenue increased by +3.4%, while revenue from economy hotels outside the United States rose 5%.

“Performance in 2011 was remarkable and demonstrates the new growth potential of Accor, of its brands and of its operations,” said Accor’s chairman and CEO, Denis Hennequin. “All of our objectives have been met or exceeded.

“The group is in excellent financial health, which enables us both to continue our growth strategy and to submit to the next annual shareholders meeting a total dividend of €1.15 (US$1.52) per share.

Earnings before interest and tax rose to 530 million euros ($702 million) from 446 million euros a year earlier. Accor also reduced net debt by about two-thirds last year while adding a record 38,700 rooms.

“Despite the uncertain economic environment, business is holding firm,” said Hennequin.  He said that the group expects to benefit this year from events including the London Olympics, European football championship in Poland and trade fairs in Germany.

Accor easily exceeded its expansion target of 35,000 new rooms in 2011, and he reiterated an aim to add a further 40,000 rooms this year. The Asia-Pacific region will represent about “45 percent of Accor’s pipeline of development” in 2012, Hennequin said.

Accor will also pursue its brand strategy in 2012, including re-branding the Ibis chain and expanding luxury divisions that include the Pullman and Sofitel brands. Accor plans to double the Pullman network by 2015, Hennequin said.