News > Business

Accor sales grow as room rates recover

By Lorraine Heller , 20-Jul-2011

Related topics: Business, Hotels

The international hotel group Accor has seen revenues grow over the first half of the year as occupancy rates rise steadily and room rates start to recover.

Accor's upscale hotels in the UK performed better than its economy hotels

Accor's upscale hotels in the UK performed better than its economy hotels

The France-based group reported a 4.4 per cent increase in revenue to €2,973m (£2,619m) in the first half of 2011, with business particularly picking up in the second quarter.

Together with the recovery in room rates and the increase in occupancy rates, revenue was also boosted by the group’s expansion in the first six months of this year, which saw it open 13,700 rooms (108 hotels) in the period.

Performance in Accor’s upscale and midscale hotels increased 5.2 per cent (6 per cent like-for-like), boosted by “brisk” activity in Paris, London and emerging markets. Revenue in the group’s economy hotels increased 5.8 per cent (6.4 per cent).

UK hotels

In the UK, second quarter like-for-like revenue growth stood at 12 per cent in the upscale and midscale segment and 5.8 per cent in the economy segment.

Business in the UK was boosted by London hotels, which reported average occupancy rates of over 90 per cent.

In addition, average room rates rose strongly in London, whereas they came under pressure from increased competition in the provinces, said Accor.

Occupancy and room rates rising

Overall, the group said that occupancy rates are “rising steadily” and the recovery in average room rates is “gradually spreading to all segments”.

“Accor maintained its dynamic expansion policy during the first half. A total of 13,700 rooms were opened in the period, 78 per cent of which under management and franchise contracts. The Group is on track to meet its full-year target of 30,000 new rooms.

“Accor is confident that this favourable momentum will carry on through 2011, with positive signs already visible concerning activity of the summer season and the early autumn.”


Mark Poynton: Pearls of Wisdom

Mark Poynton: Pearls of Wisdom

The British chef-patron of the Michelin-starred Alimentum and star of Great British Menu Mark Poynton talks about...

Interview with Glendola Leisure's Alexander Salussolia
Small Talk

Alexander Salussolia on Silk & Grain, market niches and nurturing future talent

Managing director of Glendola Leisure Alexander Salussolia joined the company in 1992 as an area manager, before...

60-Second Skill: Using #foodporn to your advantage

60-Second Skill: Using #foodporn to your advantage

Customers posting pictures of your food on social media is a trend you can't escape, but by...

Gallery: the UK’s first experiential craft brewery Drygate Brewing Co.

Gallery: the UK’s first experiential craft brewery

New Glasgow venture Drygate Brewing Co. claims to be the UK’s first experiential craft brewery, offering a...

Hospitality Openings: June 2014

Hospitality Openings: June 2014

Our latest round of up of the hottest hospitality openings includes Heston Blumenthal’s Heathrow venture The Perfectionists’ Café,...

60-Second Skill: Pouring champagne

60-Second Skill: Pouring champagne

As demonstrated at the Moet UK Sommelier of the Year competition, champagne pouring requires skills and knowledge....

Find us on Facebook

Digital Edition - Restaurant Magazine

Access to the Restaurant Magazine digital edition