London outperforms UK regions for Accor
Expanding French hospitality group Accor saw first quarter revenue rise by more than a third despite turbulent trading conditions.
The figure of €987 million was up by 34.2% of 8.8% on a like for like basis on the same three months in 2018.
Business in Europe was described as resilient with revenue per available room up by 3.3% although the UK was down 0.9% and Asia-Pacific by 0.6%.
There was a “highly contrasted situation” between London and UK regional cities.
The increase in revpar in London of 5.8%, driven by “persistently strong inbound tourism”, offset the decline in business in regional markets, down 4%, “attributable to a weak corporate demand amid Brexit uncertainties”.
Consolidation as a result of acquisitions and disposals gave the group a positive impact of €176 million help by the contributions of Mantra and Movenpick.
Accor opened 71 hotels in the quarter representing 8,300 rooms. It now has a pipeline of 1,135 hotels and 200,000 rooms.
Chairman and CEO Sebastien Bazin said: “In a turbulent macroeconomic environment, the group’s first quarter revenue performance highlights the effectiveness of our transformation and the soundness of our strategy.
“Europe remained strong, while South America continued its robust recovery.
“We achieved sustained business development over the period, in line with our medium-term objectives, and continued to strengthen our pipeline, with an ever-increasing share of luxury hotels, which generate higher fees per room.
“Performing well and growing steadily stronger, the group can tackle the rest of the year with confidence.”