Accor to decide by end of year on demerger

PARIS (Reuters) - Europe's largest hotel group, Accor (ACCP.PA), said it would decide by the end of the year whether to split up its two main businesses -- hotels and pre-paid services like hotel vouchers and bank cards.

The board met on Monday to review an analysis of the potential benefits of a demerger and its feasibility from a legal, social and financial standpoint, the group said.

"Once more detailed analyses have been performed ... the board will meet again in order to make a decision about the project by the end of the year," Accor said.

Accor first said in August it was might separate its prepaid services division from its hotel operation to create two listed businesses able to grow more effectively.

Accor has been struggling in the global downturn as demand for its mid-range and high-end hotels wanes. Sales in the first nine months of the year dropped 8.9 percent to 5.26 billion euros ($7.87 billion), the company said.

(Reporting by Leila Abboud; Editing by Dan Lalor)