Accor’s 1Q revenue increases by 8.9 percent

Accor’s consolidated revenue rose 8.9 percent to €1,887 million in the first three months of 2007.

According to the company, at constant scope of consolidation and exchange rates, the like-for-like increase was 7.6 percent.

“This very good start to 2007 confirms the fourth-quarter 2006 growth trend. The Group’s two businesses are benefiting from a favorable business environment, with the Services business enjoying structural growth in demand and the Hotel business lifted by an upturn in the European hospitality industry cycle,” stated the company.

Revenue from the Services business increased by 15.4 percent as reported and 14.1 percent like-for-like for the first quarter.

In the first quarter, hotel revenue rose by 9.1 percent as reported. The 7.2 percent like-for-like increase confirmed the fourth-quarter 2006 upturn in the European hospitality industry cycle. Growth was led by increases in both the average room rate and the occupancy rate.

“With 70 percent of its hotel revenue generated in Europe, Accor is very well positioned to take advantage of this upturn,” stated the company.

Accor shared that the first quarter revenue in the upscale and mid-scale segment increased 8.5 percent like-for-like, whereas in the economy Hotel segment, revenue rose by eight percent like-for-like.

At two percent, like-for-like revenue growth in the US economy hotel segment was again weighed down by unfavorable prior-year comparatives because of the additional business generated by hurricanes in early 2006. Revenue rose 1.8 percent at Motel 6 and 2.6 percent at Red Roof Inn.