French hospitality group AccorHotels recorded a “solid” third quarter with record occupancy levels in London during the summer, writes Katherine Price.
In the UK during the period from July 1 to September 30, 2018, revenue per available room (revpar) growth of 3.4% during the quarter reflected a good summer of trading.
Unlike in the first half of the year, revpar was up sharply in London (5.8%), and occupancy rates reached a record high of more than 90% in the third quarter. Outside London, revpar also increased, albeit at a more modest rate (1.4%).
The whole group reported a third-quarter 2018 revenue increase of 7.6% like-for-like to €1 billion (£908 million) and its full-year 2018 earnings target remains between €700 milllion-€720 million (£616 million-£633 million).
Acquisitions and disposals had a positive impact on revenue of €144 million (£127 million), an increase of 17% thanks in particular to the group’s acquisitions of Mantra, Mövenpick and Gekko.
During the period, AccorHotels opened 73 hotels, and at the end of September it hit the 1,000-hotel mark.
Sébastien Bazin, chairman and chief executive of AccorHotels, said: “AccorHotels turned in a solid performance in the third quarter, reflecting positive operating trends in the majority of our markets as well as the group’s strong growth as a result of acquisitions made since the start of the year.
“In addition to these operations, which enable us to cement our international leadership, our organic growth continued at a fast pace and our pipeline rose above the 1,000-hotel mark, underlining the strength of our brand portfolio. Despite contrasting conditions across our geographies, this strong operating momentum enables us to narrow our EBITDA target to the upper range of the guidance announced in July.”