Accor"s Pre-tax Operating Profit up 18% in 2011

　　Accor, Courcouronnes, France, saw its net profit in 2011 decrease to €27 million (US$35 million) from €3.6 billion (US$4.7 billion) in 2010, when the company made a large gain from the demerger with its services division Edenred.

　　However, its pre-tax operating profit was up 18.8% year-on-year from €446 million (US$ 590 million) to €530 million (US$701 million) while revenue increased 2.5% to €6.1 billion (US$8 billion). In the upscale and midscale segment revenue increased by +3.4%, while revenue from economy hotels outside the United States rose 5% but decreased 4.2% within the U.S. due to the impact of Motel 6 asset disposals and an unfavorable exchange rate.

　　“Performance in 2011 was remarkable and demonstrates the new growth potential of Accor, of its brands and of its operations,” said Denis Hennequin, Accor’s chairman and CEO. “All of our objectives have been met or exceeded. The group is in excellent financial health, which enables us both to continue our growth strategy and to submit to the next annual shareholders meeting a total dividend of €1.15 (US$1.52) per share.”

　　Following its new asset-light strategy Accor significantly reduced its net debt in 2011, to €226 million (US$299) at year-end from €730 million (US$965 million) at December 31, 2010. Funds from operations improved to €737 million (US$975 million) from €695 million (US$919 million) in 2010. The group opened 38,700 rooms in 2011, up from 25,000 in 2010. Of the total number of new rooms, 95% were opened under asset-light systems (franchise contracts, management contracts and variable-rent leases), while 47% were located in Europe and 33% in the Asia Pacific region.

　　Accor said that the trends observed in fourth quarter 2011 continued into January 2012, with RevPAR figures stable in Europe and strong revenue growth in the emerging markets and that the economy segment in Europe and the United States is continuing to benefit from rising room rates.