Third-quarter 2017 revenue
Third-quarter 2017 business activity was strong in the vast majority of the Group’s markets. Revenue totaled €504 million, up 6.4% at constant scope of consolidation and exchange rates, and up 7.2% as reported.
Commenting on the announcement, Sébastien Bazin, Chairman and Chief Executive Officer, said:
“AccorHotels delivered another robust performance in the third quarter. The positive operating trends observed in our key markets in the first half were confirmed, and early signs of a recovery emerged in Latin America. The Group continued its rapid development. In the course of the quarter, our hotel base crossed the symbolic mark of 600,000 rooms and our pipeline reached a record level, reflecting the increasingly strong attractiveness of our brand portfolio, which now includes Orient Express and Nextdoor, and will soon extend to Mantra, BreakFree and Peppers. This favorable trend is expected to continue until the end of the year, allowing us to reach the upper end of the target EBIT range announced in July.”
Highlights of the period
• Sustained growth in all of the Group’s markets
• Opening of 73 hotels and more than 11,000 rooms
• More than 600,000 rooms opened and a record pipeline of 178,000 rooms
• Signing of agreements for the acquisition of Gekko and Mantra Group
• Partnership with SNCF for the development of Orient Express
• Partnership with Bouygues Immobilier for the development of Nextdoor
In light of these factors and the expected continuation of the trends observed since the beginning of the year in its various markets, the Group expects to reach the upper end of the target EBIT range of between €460 million and €480 million announced in July.
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First-half 2017 revenue
- Revenue up 33.5% to €922 million (+8.3% LFL)
- EBIT up 68.0% to €226 million (+33.9% LFL)
- 23,000 rooms opened during the first-half (115 hotels)
Sébastien Bazin, Chairman and Chief Executive Officer of AccorHotels, said:
"AccorHotels' results for first-half 2017 are particularly solid. They reflect growth in our hotel business, the rapid integration of recently acquired brands, our persistently dynamic development and the ramp-up of our new businesses.
In this way, we are increasing our market share and consolidating our global leadership while profoundly transforming our business model. The separation of AccorInvest into a stand-alone legal entity has been completed. Discussions about the opening of this business to outside investors are ongoing. Our pursuit of this growth strategy enables us to aim for another year of record growth in 2017."
Significant events and strategic transactions in H1 2017
- Solid results in most of the Group's key markets, particularly with the recovery in France & Switzerland
- Development corresponding to 23,000 additional rooms (115 hotels), of which 94% under franchise agreements and management contracts (including 7,000 rooms from Rixos Hotels)
- Portfolio of 4,195 hotels (597,132 rooms) at the end of June 2017
- Pipeline of 910 hotels and 167,000 rooms, of which 81% in emerging markets and 45% in the Asia-Pacific region
AccorInvest
- Approval of the partial contribution of assets held by Accor SA in
AccorInvest at the Extraordinary General Meeting of June 30, 2017
- Transfer of the remaining assets to AccorInvest
HotelServices
- Implementation of the strategic partnership with Rixos Hotels in the international resort segment
- Consolidation of AccorHotels’ leadership in Brazil via the signature of an agreement with BHG relating to 26 hotels (approximately 4,400 rooms)
- Acquisition of 40% of Potel & Chabot, French leader in prestige event services
- Acquisition of 31% of Noctis, which specializes in events, foodservice and entertainment
New businesses
- Acquisition of TravelKeys, consolidating the Group's position as global leader in the luxury serviced home rental market with concierge services
- Acquisition of Availpro, following on from Fastbooking in 2015, creating the European leader in digital services for independent hotels
- Acquisition of VeryChic, a digital platform for the private sale of hotel rooms and apartments, cruises, stays and luxury packages
Full-year 2017 EBIT target
In light of the following factors:
- sound business in virtually all markets
- sustained development, with 23,000 rooms opened in the first half, and organic development of more than 40,000 rooms expected over the full year
- the ongoing integration of recent acquisitions, and particularly the strong synergies achieved in the luxury segment
- the ramp-up of new initiatives
The Group is forecasting 2017 EBIT of between €460 million and €480 million.
