AccorHotels Acquisitions Produce Strong Q1 Numbers
Tuesday, April 25, 2017
AccorHotels, the France-based hotel group and owner of the Accor Vacation Club brand, is reporting strong growth from the first quarter of 2017. Boasting an incredible number of recent acquisitions, the hotelier continues to grow into one of the world’s most diverse and transformative hospitality brands.
The chain reported a growth of more than 35% during this year’s first quarter, when compared to the same period last year. The success is undoubtedly due to the brand’s major acquisitions in 2016, which included the $2.7 billion buyout of Fairmont Raffles Hotels International. In all, recent acquisitions and mergers accounted for $88 million of AccorHotels’ revenues. The brand also owns Swissotel, Onefinestay, and concierge service provider John Paul.
The first quarter also marked the continuation of AccorHotels’ newfound acquisitive business plan. The hotelier added 7,000 more rooms spread across 35 hotels in the first quarter alone, adding to its ravenous growth strategy. Since the end of last year, AccorHotels has either partnered with, purchased, or intends to purchase Banyan Tree, Travel Keys, Rixos Hotels, Potel & Chabot, VeryChic, and Availpro.
CEO Sebastien Bazin spoke to his company’s performance in the first quarter as well as the state of the hospitality industry in AccorHotels’ key markets:
“The trends observed in the first quarter in the vast majority of regions reflect a favorable environment for the hotel industry. This is particularly the case in our three main markets, France, Europe and the Asia-Pacific region. The new businesses also performed well, thanks in part to the support of AccorHotels. At the same time, the Group further entrenched its growth, its move into new businesses and its leadership in the luxury segment through numerous value-creating acquisitions, namely Rixos and BHG in hotels, and Availpro, Potel & Chabot and VeryChic in new businesses. Lastly, the process of transforming AccorInvest into a subsidiary is underway; AccorHotels is therefore perfectly in line with our 2017 objectives.”
Another factor attributed to the brand’s great growth is the rebound of travel to France following a string of recent high-profile terror attacks in Europe. With many of its properties located in Paris and throughout other French destinations, the return of high-volume travel has bolstered AccorHotels’ performance and revenues.
For more information on AccorHotels or their newly-acquired brands, visit their official site.