Terror attacks hit Accor profits

Accor, Europe’s largest hotel operator, said first-half profit fell 4 percent after terrorist attacks in France and economic difficulties in Brazil hurt travel in those countries.
Earnings before interest and taxes dropped to 239 million euros (US$263 million), the Paris-based owner of the Sofitel and Ibis brands said in a statement on Wednesday. That missed the average estimate of 260 million euros from four analysts in a Bloomberg survey. The company said full-year profit will be 670 million euros to 720 million euros.

“With several of our key markets, including France and Brazil, shaken by crises and violent events, the group showed remarkable resilience in the first half,” chairman and chief executive officer Sebastien Bazin said.

While profit in most of Accor’s markets rose in the first half, a 4.2 percent drop in France – where Accor has a quarter of its rooms – hurt the earnings. Revenue per available room in the country fell 2.2 percent. Revenue globally rose 2 percent to 2.6 billion euros, Accor said.

Profit at Accor’s HotelServices division, which operates and manages hotels, fell after the company spent money on expanding its online offering to compete with websites including Airbnb.