PARIS Growth in its core European business drove Accor s 2000 profits up 27%, and the company forecast profits would continue to grow at a double-digit pace through 2005. Full-year group profits rose to 447 million euros, or $417.4 million, beating a consensus forecast established by the JCF group. Earnings per share (EPS) also outpaced forecasts.
Analysts said that the inclusion of six extra months of Red Roof Inns, plus growth in its French, German and Dutch markets, were behind the profit rise. Most were not overly concerned about the 2001 outlook and say Europe will remain Accor s chief market for growth. Furthermore, Accor is relatively well insured against a U.S. downturn while 30% of its profits come from the United States, 80% of that comes from its economy category, and Red Roof and Motel 6 hotels have seen gains as guests “trade down” from pricier chains. (3/13/01)
SOURCE:Reuters