Accor Q2 sales in line, upscale/midscale ops offset forex impact in US UPDATE

Accor Q2 sales in line, upscale/midscale ops offset forex impact in US UPDATE

	Published : Tue, 17 Jul 2007 17:43 By : Agencies Print this Story

(updates with breakdown by segment)

PARIS (Thomson Financial) - Accor said second quarter sales were 2.13 bln eur, up 8.7 pct from 1.96 bln in the year-earlier period, a little ahead of consensus, as strong growth in upscale and midscale hotel revenues offset the weak dollar's impact on the US economy business.

On an organic basis, sales rose 4.8 pct, slowing from the 7.6 pct rise seen in the previous quarter.

According to a consensus of analysts' estimates compiled by Thomson Financial, sales in the period had been seen at 2.091 bln eur, up from a year earlier.

In a statement, Accor said trading in the first half 'confirmed the uptrend in the hotels business in Europe and saw sustained organic growth in services, in line with the group's target of 8-16 pct a year.'

By segment, upscale and midscale hotel revenues in the period were up 14 pct at 887,727 eur, but organic growth slowed to 4.0 pct after rising 8.5 pct in the first quarter.

Economy hotel revenues were 416,654 eur, up 5.9 pct or up 1.0 pct on an organic basis.

US economy hotel revenues fell 5.7 pct on a reported basis to 245,286 eur, hit by dollar weakness, but rose 1.8 pct like for like, a little behind the 2.0 pct organic growth in the first three months of 2007.

Overall, hotel sales were up 8.2 pct at 1.43 bln eur and rose 3.6 pct on an organic basis.

Services sales were up 13.9 pct at 210,783 eur, a 10.0 pct rise on an organic basis.

Sales from other businesses, including casinos, restaurants and on-board train services were up 8.0 pct at 366.655 eur, a rise of 7.2 pct on an organic basis.

Over the first half, Accor's sales rose 8.8 pct to 4.015 bln eur and climbed 6.1 pct like for like, with a negative 1.3 pct currency effect.

By region, first-half RevPAR in European midscale and upscale outlets rose 10.7 pct in euros, that in European economy outlets rose 5.5 pct and that in US economy outlets climbed 2.6 pct in dollars.

tfn.paris@thomson.com

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