AccorHotels Has a Lot of Work to Do With Onefinestay
Photo Credit: A Onefinestay property in Los Angeles. The company recorded substantial losses again this year. Onefinestay
Skift Take
Onefinestay is a nice idea but like so many other nice ideas it isn’t a profitable one, at least not yet. AccorHotels has a lot of work to do to turn the business around and justify the millions of dollars it has already spent.
When AccorHotels bought luxury Airbnb rival Onefinestay for $168 million (£117 million) last year it promised massive geographical expansion and tenfold revenue growth over a five-year period.
This now looks mightily ambitious given the current state of the company.
Accounts recently filed at the UK’s Companies House database for Onefinestay (Lifealike Ltd) show that the business is still producing substantial losses under its new owner.
For calendar year 2016, the group's pre-tax loss loss ballooned by 65 percent to $37.3 (£28.8 million). Turnover grew by 7 percent to $22.3 million (£17.2 million).
The company once again blamed the poor performance on terrorist attacks in Europe, which “resulted in a reduction in trading in Paris and London.”
The directors said: “The group was disproportionally impacted relative to other participants in the travel industry due to the reliance on long haul leisure guests for whom travel is often discretionary and who cancelled
