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.
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).
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.”