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Accor reports robust 2013

SBazin@Crédits_Stéphane Richard - EDITED

Accor has posted strong 2013 results, with revenue, operating profit and net profit all rising.

“Our 2013 results were robust, our financial situation is healthy and our teams are energetically deploying the new roadmap with commitment and dedication,” said Accor’s Chairman and Chief Executive Officer, Sébastien Bazin (pictured).

“While the economic environment remains uncertain in a few regions, overall we are benefiting from the global recovery and the strength of our brands.

“In 2014, HotelServices is focusing its priorities on innovation, digital media and the brands. We are also beginning to deploy the HotelInvest strategy. Our teams are now organized around these two core competencies, with dedicated reporting processes and their own objectives,” he said.

Highlights in the full year report were: Revenue up 2.7% like-for-like to €5,536 million; Strong recurring free cash flow, at €248 million; Improved EBIT, up 5.3% like-for-like to €536 million; Operating profit before tax and non-recurring items up 5.9% like-for-like to €446 million; and Net profit, Group share of €126 million.

Accor said it was a “solid second-half performance, reflecting a firm recovery in the hotels business, the introduction of an effective distribution strategy and the impact of the cost-savings plan”.

Consolidated revenue amounted to €5,536 million in 2013, up 2.7% year-on-year at constant scope of consolidation and exchange rates (like-for-like) and down 2.0% as reported.

The Group reported robust growth in the key European markets during the year, led by good performances in the capital cities in the first half and a recovery in other destinations in the second. Combined with sustained demand in emerging markets, this improvement offset a still fragile situation in Southern Europe.

By segment, like-for-like growth came to 2.9% in Upscale and Midscale hotels and 2.4% in Economy hotels. The gains were led by increased demand along with higher room rates late in the year, and by the 14.7% organic growth in management and franchise fees.

Milestones for the company in 2013 included: a new strategy based on leveraging the value and strategic fit between Accor’s traditional business as hotel operator and brand franchisor (HotelServices) and its emerging role as hotel owner and investor (HotelInvest); a new Executive Committee that is representative of both businesses and of the five host regions, with an operations-driven strategic focus; Completion of the project to upgrade the ibis family brands, with the rebranding of more than 1,700 hotels; and a €100 million savings plan being deployed in 2013 and 2014, to maintain competitiveness in an environment shaped by rising operating costs and more aggressive competition in Europe. By the end of 2013, €37 million in savings had already been delivered.

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