Paris : French hotel group Accor tapped into recovering global demand for rooms and business travel with a doubling of core profit in the first half and forecast significant earnings growth for the full year.
Although the economic climate was uncertain, the world's fourth-largest hotel chain forecast earnings before interest and taxes (Ebit) would rise to between 370 million and 390 million euros in 2010 from 236 million (Dh1 billion) in 2009.
The guidance was above analyst expectations and, coupled with news Accor was ahead on plans to sell assets to cut debt and on cost savings, drove up its shares over 6 per cent.
Earlier this month InterContinental Hotels, the world's biggest hotelier, was upbeat after room occupancy levels rose through the first half and room rates turned positive in July, echoing strong results from rivals Marriott and Starwood in the United Sates.
Business trend
Accor Chief Executive Gilles Pelisson told a conference call that the hotel business trend for September was "rather good", notably from core business clients in Europe.
"We have less visibility over the end of the year and thus remain cautious," he added.
First-half Ebit rose 120 per cent to 154 million euros on a pro-forma basis, under which on-board catering unit Wagons-Lits and casino group Lucien Barriere have been reclassified as assets for sale, the company said.
Last month Accor, with hotels in 90 countries ranging from the luxury Sofitel chain to budget Ibis and Motel 6 operations, posted a 6.1 per cent rise in first-half sales as a recovery at its midscale and upscale hotels gathered pace.
By 0714 GMT, Accor shares gained 6.38 per cent at 25.05 euros, outperforming a 1.22 per cent in the European travel and leisure sector.
