Accor has posted its 2012 results, with revenue up on the back of a significant expansion globally.
Last year, a record 38,000 rooms (85% of which under management or franchise agreements) were added to the network and that helped the company achieve growth in revenue (up 2.7% like-for-like to €5,649 million), an improvement in EBIT (3% like-for-like to €526 million) and report a profit of €80 million (before the impact of the Motel 6 disposal).
Accor’s CEO Denis Hennequin said he was pleased with the company’s performance.
“I would define the 2012 results as good,” he said. “Accor has experienced sustained growth and recorded solid results despite complex economic conditions in Europe and recession in southern European countries (Spain, Greece, Italy and Portugal).
“We have therefore played our cards well despite the economic turmoil and have benefited from brisk business in emerging markets which now account for a significant share of our results.
“For the second year running, we have expanded successfully, opening over 38,000 rooms or 266 new hotels excluding Motel 6’s contribution.
“85% of this expansion was achieved through management and franchise agreements, of which 72% were in emerging countries and 48% in the Asia Pacific region alone.
“In 2012, we crossed the symbolic milestone of 100,000 rooms in this region. Our expansion drive is therefore clearly contributing significantly to Accor’s transformation.
“This strong performance was led by both robust organic growth and an active acquisitions policy. After purchasing Citéa (Adagio Access) in 2011, we integrated two large regional networks, absorbing Mirvac in Australia and New Zealand, and Posadas in South America.
“Though all the market segments and brands contributed to this record expansion rate in 2012, Mercure and the ibis family brands were respectively responsible for opening 24% and 40% of the rooms.
“We also launched flagship establishments such as the Sofitel So Bangkok in Thailand, the Pullman Wuxi New Lake in China, the Novotel London Blackfriars in the United Kingdom, the MGallery Harbour Rocks in Australia and the ibis budget El Jadida in Morocco,” he said.
Accor has also released its ambition for 2013-2016, which includes:
-Confirmed expansion plan of 30,000 rooms per year through organic growth, with an EBIT margin above 15%;
-Extended Asset Management plan, with 800 hotels to be restructured, for a total negative impact of €2 billion on the Group’s revenue, and a €2 billion reduction in Adjusted Net Debt;
-About €30 million annual investment plan to consolidate the Group distribution systems;
-A €100 million savings plan between 2013 and 2014, to maintain the Group’s competitiveness, in an environment shaped by increasing operating costs and accrued competition in Europe; and
-A clear improvement in the Group’s economic performance by 2016-end, implying a structurally strong cash-flow generation.