French hotel group AccorHotels has reported a strong third quarter as revenue increased by 2.4% to €1.5bn (£1.1bn).
The group’s latest financial report for the third quarter of the year said that, on a like-for-like basis, revenue was up 3.4%. Growth was driven by “favourable” business activity in most of the group’s key markets, it said.
Revenue in northern, central and eastern Europe (NCEE) was up 4.8% on a like-for-like basis, while the Mediterranean, Middle East, Africa region (MMEA) saw growth of 10%.
Business within HotelInvest, the owner-and-investor part of the company, increased 2% like-for-like to €1.3bn (£959m), while HotelServices, the operator-and-brand franchiser arm of the company, recorded an 8.4% to €356m (£264m).
In the UK the company reported a strong improvement in business activity, up 6.3%. HotelInvest and HotelServices recorded like-for-like revenue growth of 5.6% and 10.9%, respectively. The group said this resulted from a stable demand at a very high level.
Meanwhile, activity in London stabilised during the summer, before accelerating again in September, driven in large part by the Rugby World Cup. Regional cities also recorded strong performances, with RevPAR up 8% over the quarter, on the back of higher average prices.
Sébastien Bazin, chairman and CEO at AccorHotels, said: “Third-quarter performance was in line with the trends observed since the beginning of the year, with strong business activity in most of the group’s markets, flat demand in France and a rapid deterioration in Brazil reflecting a challenging economic environment.
“AccorHotels continues to deploy its strategy, with the initial success of the digital plan and fast growth for HotelServices, and the transformation of HotelInvest.”
As a result, the group expects full-year earnings before interest, taxes, depreciation and amortisation (EBITDA) between €655m (£485m) and €675m (£500m).