AccorHotels reports 2.4% revenue growth in Q3

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. Occupancy stood at 87.9% for owned, leased and managed hotels over the quarter, average prices were up 5.3% and revenue per available room (RevPAR) increased by 5.1%. 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).