Boosted by Fairmont Acquisition, AccorHotels Sees Stable Third Quarter
Photo Credit: In July, AccorHotels purchased the Fairmont, Raffles, and Swissotel hotel brands for $2.7 billion. The company saw a stable third quarter, but narrowed its outlook for the rest of 2017. Fairmont Raffles Hotels International
Skift Take
It’s pretty clear that AccorHotels’ purchase of the Fairmont, Raffles, and Swissotel brands was a smart one to make. Now, however, AccorHotels needs to focus on growing those brands, as well as that of onefinestay and its newest brand, Jo&Joe.
AccorHotels, the fifth largest hotel group in the world, released its third quarter earnings for 2016 and overall, the company appeared to have a fairly stable third quarter, with sales up 1.8 percent to $1.69 billion, compared to 2 percent growth in the second quarter.
However, the company did adjust its 2016 profit estimates from $735.84 million to $790.74 million to a range of $735.84 million to $757.79 million, citing continued softness in France.
During an investors call, AccorHotels CFO Jean-Jacques Morin said the third quarter was the company’s weakest for business in France primarily because of “security concerns,” including the terrorist attack that took place in Nice on July 14. Morin said fears of terrorism “massively affected leisure travel�
