October 17, 2019 / 4:26 PM / a month ago

Accor narrows 2019 earnings guidance, cites China uncertainties

FILE PHOTO: The logo of French hotel operator AccorHotels is seen on a flag pole at the financial and business district of La Defense in Puteaux, near Paris, France, May 16, 2018. REUTERS/Charles Platiau/File Photo

PARIS (Reuters) - AccorHotels (ACCP.PA), Europe’s largest hotels company narrowed its full-year profit guidance even as it reported stronger third-quarter sales on Thursday, citing uncertainty on China-related issues.

The group, which runs high-end chains including Raffles and Sofitel as well as budget brands such as Ibis, said third-quarter sales rose 10.9% year on year to 1.049 billion euros ($1.17 billion).

“Europe is doing well, while Asia Pacific is experiencing a decline linked to the situation in China,” Jean-Jacques Morin, Accor’s chief financial officer told reporters.

Hong Kong has been rocked by four months of often huge and violent protests which has caused tourists numbers to fall. U.S.-China trade uncertainties also weighed on the business, Morin said.

The group said it forecast that full-year 2019 earnings before interest, taxes, debt and amortisation (EBITDA) would rise to between 820-840 million euros. That was a slightly narrower range than the previous target of 820-850 million euros.

Reporting Maya Nikolaeva, Editing by Sarah White and Jane Merriman

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below