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Accor SA, Europe’s largest hotel operator, dropped the most in 10 months in Paris trading after Credit Suisse Group AG downgraded the stock and said first- quarter results may fall short of the bank’s expectations.

Accor declined 4.2 percent to 25.62 euros, the biggest decline since June 11. The company may report disappointing first-quarter sales on April 17 on falling revenue per available room and weaker like-for-like profit, Credit Suisse said in an e-mailed note today. It cut Accor to underperform from outperform.

Paris-based Accor in February said it plans to widen margins and cut costs by scaling back the number of properties it owns. While the asset sales may result in a cash return, falling revpar, a measure of occupancy and rates, in France, the U.K. and the rest of Europe is likely to result in a repeat of weaker sales during the second half.

“We see an increasing risk of disappointment for Accor,” Credit Suisse said. “The asset-driven restructuring story should still drive a re-rating by 2016, with scope for a 1 billion-euro cash return, but this is insufficient to offset the increased trading risks and we downgrade to underperform.”

Accor has gained 4 percent in the last 12 months, giving the company a market value of 5.82 billion euros ($7.6 billion.)

Editors: Ross Larsen, Andrew Blackman. To contact the reporter on this story: Patrick Gower in London at To contact the editor responsible for this story: Andrew Blackman at