Growth in Europe and Asia pushes AccorHotels' like-for-like sales up 9.5%
AccorHotels, Europe’s biggest hotel group, remains upbeat about its 2018 prospects after it reported a 9.5% rise in first-quarter revenue.
The French multinational group said that the positive results were driven by strong growth in Europe and Asia.
Group RevPAR was up by 5.3%, with a 4.6% increase in Europe and 5.3% rise in the Asia-Pacific region.
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AccorHotel also said that its acquisitions of businesses including Gekko, Mantis and ResDiary helped to consolidate first-quarter revenue of EU€633mn for the period.
Sébastien Bazin, chairman and chief executive officer of AccorHotels, said: "In line with the good trends of 2017, business remained strong in the first quarter in the vast majority of regions.
“Europe and Asia, our two key markets, continue to benefit from a buoyant environment,” she added.
AccorHotels’ first-quarter results may also be attributed to the firm's expansion efforts, as the firm developed 61 hotels and nearly 10,000 rooms during the period, bringing its total pipeline to 870 hotels and 15,000 rooms.
However, the French firm did report that fluctuations in the Euro’s value, particularly against the US dollar, had a negative impact of €63mn.
Minor International edges closer to NH Hotel Group takeover with €619mn deal for HNA Group stake
Minor International in lining up the full acquisition of NH Hotel Group after purchasing an additional 25.2% stake in the Spanish company for €619mn.
Thailand-based Minor revealed its plans on Wednesday having completed a deal for the extra shareholding previously held by Chinese conglomerate HNA Group, taking its current total stake in NH Hotel Group to approximately 38%.
By moving beyond a 30% stake in the company, Minor is now eligible under Spanish law to launch a takeover bid – something it plans to do within the next few months.
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NH rejected a similar approach from rival Grupo Barcelo earlier this year however and any completion is subject to the approvals of Minor’s shareholders, the National Securities Market Commission of Spain (CNMV) and clearance by relevant anti-trust authorities.
The share purchase from HNA Group will be in two tranches of 65.85mn shares to be completed on or around 15 June and 32.94mn shares, expected to be completed in September. HNA is selling as part of a wider divestment of assets through which it hopes to complete debt repayments.
“Today we are embarking on a new era, driving investment strategy to further cement our footprint in the European hospitality industry,” said Dillip Rajakarier, CEO Minor Hotels.
“We will be able to create a network of over 540 hotels with a reach across Asia, Oceania, the Middle East, Africa and Europe, all of which are important hospitality regions around the world. The business network will allow the two companies to capitalise on our leadership positions in key growth areas, highly complementary asset and brand portfolio, technology platform and talented employees.”