Accor, the Paris-based hotel group, said on Wednesday it would return to breakeven before the end of the year for its sales, marketing, distribution, and loyalty activities for owners of its branded hotels.
Accor said robust sales and earnings this summer along with tight control of costs had led the group’s management to raise its full-year guidance for 2022 earnings before interest, taxes, depreciation, and amortization — a measure of profit. Management had set guidance at above $550 million, but they now expect to generate between $593 million and $622 million (€610 and €640 million).
Accor also revealed it’s engaged in exclusive talks with Valesco Group to sell its Paris head office for about $452 million (€465 million). The asset disposal would be subject to a 12-year sale and leaseback agreement. It requires approval and is slated to be done by year-end.
The sale of the headquarters building is part of the group’s effort to lighten its balance sheet. The move toward leasing rather than owning may also provide a side benefit of letting the company scale up and down in office space as needed and as workplace trends evolve.