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Accor SA, Europe’s largest hotel operator, said first-half profit rose 15 percent as the French company cut costs and benefited from strong demand in the Mediterranean region, Africa and the Americas.
Earnings before interest and taxes climbed to 219 million euros ($289 million) from a restated 191 million euros a year earlier, the Paris-based owner of the Sofitel and Ibis brands said in a statement today. That beat the average estimate of 209.8 million euros from 10 analysts in a Bloomberg survey. The company forecast full-year EBIT of 575 million euros to 595 million euros.
Accor in November scrapped a plan to sell properties and expand through operating more hotels, focusing instead on owning the hotels it runs. The strategic change was Accor’s first since Sebastien Bazin became chairman and chief executive officer a year ago after the company fired his predecessor.
Accor reported net income of 60 million euros, up from a restated 34 million euros a year earlier. Revenue fell 1.8 percent to 2.59 billion euros.
In May, Accor agreed to buy 97 hotels in Europe for about 900 million euros, and a month later the company issued a 900 million-euro hybrid bond to help finance acquisitions.
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