October 18, 2018 / 4:17 PM / a month ago

AccorHotels raises earnings guidance after sales uplift

FILE PHOTO: The logo of French hotel operator AccorHotels on a flag at the financial and business district of La Defense in Puteaux, near Paris, France, May 16, 2018. REUTERS/Charles Platiau/File Photo

PARIS (Reuters) - AccorHotels (ACCP.PA), Europe’s largest hotel group, made a slight upward revision to its full-year profit guidance as it reported higher third-quarter sales.

The group, which runs high-end chains including Raffles and Sofitel as well as budget brands such as Ibis, said third-quarter sales rose 22.3 percent year on year to 1.033 billion euros ($1.2 billion).

Accor said it is now forecasting 2018 operating profit between 700 million euros and 720 million euros, up slightly from a previous target of 690-720 million euros.

“Despite contrasting conditions across our geographies, this strong operating momentum enables us to narrow our EBITDA target to the upper range of the guidance announced in July,” said Chairman and CEO Sebastien Bazin.

Europe and Asia Pacific showed the strongest increases in terms of revenue per room, the company said. France was also a strong spot, helped by this year’s Ryder Cup golf tournament held at Le Golf National near Paris.

In February AccorHotels agreed to sell 55 percent of its AccorInvest property business to sovereign and institutional investors for 4.4 billion euros, saying it would use part of the cash to fund acquisitions.

Deals this year have included Accor taking a 50 percent stake in U.S. hospitality mogul Sam Nazarian’s upmarket SBE Entertainment Group and the acquisition of Chile’s Atton Hoteles.

Reporting by Sudip Kar-Gupta; Editing by David Goodman

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