PARIS, Feb 21 — French hotel group AccorHotels said today it had earned a record profit last year, although that was entirely due to a boost from the sale of a stake in its property unit.
The net profit of €2.2 billion (RM10.18 billion) included €2.4 billion in capital gains realised from the sale of a 65 per cent share in AccorInvest.
The company, which includes the Pullman, Raffles, Novotel and Mercure brands, said it was also returning to the name Accor.
The sale of the real estate stake was part of shift by the company to manage hotels rather than own them.
“Accor 2018 results reflect a profound transformation, marked foremost by the sale of our real estate division and a large number of acquisitions,” chief executive Sebastien Bazin said in a statement.
The company snapped up Switzerland’s Movenpick Hotels and Resorts last year to add to its portfolio.
The expansion helped boost revenue by nearly 17 per cent, and even when excluding that and exchange rate changes, revenue rose by almost nine per cent.
Revenue by room rose by 5.6 per cent.
Accor shares fell 3.2 per cent in morning trading in Paris while the blue-chip CAC 40 index was flat. — AFP
