Accor Tightens Belt, Still Plans Expansion

PARIS— According to its Chief Financial Officer Benjamin Cohen, Accor will spend approximately €700 million ($631.5 million) on development this year, a reduction of 24% compared with 2001. Cohen explained that the cut in spending, which was forced by the difficult economic climate, would allow the company to trim its debt to equity ratio by 1.6% to 65%. Straitened financial circumstances notwithstanding, Accor announced plans to increase its existing portfolio on the Arabian peninsula to 28 hotels, a total of more than 6,000 rooms, by 2005. According to its Regional Director of Operations and Development Christophe Landais, Accor is responding to the regions strong growth as a business and leisure destination, and will open four of the properties this year, in Bahrain, Yemen and the emirate of Abu Dhabi. SOURCE: HVS International