Economy keeps expectations in check at Accor

PARIS (Reuters) - Accor (ACCP.PA), Europe's largest hotel group, said on Tuesday it was cautiously optimistic for 2012 amid an uncertain economic climate, as demand remained robust in its main European markets, emerging economies and the United States.

The world's fourth-largest hotel group said the situation in debt-laden southern Europe had continued to deteriorate in the fourth quarter and was not expected to improve this year.

Accor retained its goal for a higher profit in 2011, though underlying sales growth slowed in the final quarter.

The operator of 4,200 hotels worldwide said it still expected 2011 earnings before interest and tax (EBIT) to rise to between 510 million and 530 million euros ($675 million), from 446 million in 2010.

"I am optimistic but cautious in view of the economic climate," Chief Financial Officer Sophie Stabile told journalists when asked about 2012.

"We are on a decent booking trend for the coming months. At this stage we are on the same trend as in the fourth quarter, except in southern Europe," she added.

Southern Europe accounts for about 5 percent of group sales.

Analysts worry that Accor, which makes 70 percent of its sales in Europe, is more exposed than its peers to a region where the business climate might be tougher this year.

However, there have been few signs of a slowdown in hotel demand in most European markets.

Accor is the fourth-largest hotel group behind the InterContinental (IHG.L), Marriott (MAR.N) and Starwood (HOT.N) chains.

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Accor's fourth-quarter sales reached 1.5 billion euros, slightly below the 1.52 billion forecast in a Reuters poll of six analysts.

Underlying sales growth was 3.6 percent, against 5.8 percent in the third quarter. Hotel revenue grew 3.7 percent in the quarter on a like-for-like basis, led by higher average room rates in the economy segment in Europe and the United States.

France was where it experienced the fastest European growth in the fourth quarter, with like-for-like increases of 3.3 percent in the upscale/mid-scale segment and 3.9 percent in economy.

In the United States, where Accor owns the Motel 6 chain, revenue rose 4.5 percent as an improvement in prices seen in the third quarter accelerated in the fourth

In 2011, Accor opened 38,700 rooms, beating its 35,000 goal.

With operations in 90 countries and hotels ranging from the luxury Sofitel chain to the budget Ibis and Motel 6 operations, Accor has a market value of 4.7 billion euros.

Accor's shares lost 41 percent last year, underperforming the STOXX Europe 600 travel and leisure sector index .SXTP which was down 15 percent.

(Reporting by Dominique Vidalon, editing by Astrid Wendlandt and David Hulmes)