AccorHotels reported on Wednesday its Q4 2016 results, which included posting record profits for 2016 despite weakness in its biggest market, France.
Group earnings before interest and taxes (EBIT) rose 3.8% to €696 million (US$735 million) in 2016, beating forecasts as it also stated signs of recovery are underway in France.
The other big news coming out AccorHotels headquarters was the appointment of former French President Nicolas Sarkozy as an independent director, reflecting the company’s ambition to promote AccorHotels brands worldwide. Sarkozy succeeds Nadra Moussalem, who is resigning his board position following Colony Capital’s decision last week to sell its 4.9% shareholding.
Sarkozy will chair the International Strategy Committee whose missions and members will be further detailed at a forthcoming board meeting. “I am glad to contribute to the development and the international reach of Accorhotels, one of France’s flagship companies. The success of the group as well as the quality of its management are outstanding assets, shaping AccorHotels into one of the leading showcases of the French economic landscape,” Sarkozy said.
Sébastien Bazin, chairman & CEO of AccorHotels added, “The international expertise of Nicolas Sarkozy and his perfect knowledge of geopolitical issues are tremendous assets for the group.”
In its quarterly investor call, AccorHotels also reiterated its plan to sell a majority stake in its HotelInvest property business and fund expansion, worth €6.6 billion (US$6.9 billion), by mid-July.
Bazin said the property sale would give it “significant headroom to seize numerous opportunities provided by the rapid transformation of our industry.”
The goal, Bazin added, is to sell 430 of the 1,100 owned assets held in the HotelInvest portfolio. He added that a separate Accor Invest platform outside of AccorHotels will hold approximately €6.6 billion (US$6.9 billion) of owned hotels. AccorHotels will remain majority shareholder in the platform, but the goal is to attract institutional and other investors, to raise approximately €4 billion (US$4.2 billion) in revenue through asset sales.
Bazin also reiterated on Wednesday that the group’s wants to generate 30% of its revenue in the medium term from new businesses such as concierge service John Paul or British serviced home rental company Onefine Stay.