French hotel group Accor SA on Wednesday announced further shake-up, including a strategic review of the Red Roof Inn chain in the U.S. and a significant expansion in emerging markets, as it unveiled a forecast- beating 54% rise in first-half profit.
The group is also increasing the planned sale of hotels and non-core assets and promised to return the cash to shareholders.
Net income at the owner of the Motel 6 and Sofitel chains improved to 241 million euros ( $310 million ), or 1.06 euros a share, from 156 million euros, or 0.72 euros a share, a year earlier.
Profit in the first six months of the year was boosted by a capital gain of 129 million euros on the sale of 68 hotels to Fonciere des Murs.
Operating profit before tax rose 36.7% to 282 million euros .
Accor reported on July 20 that first-half revenue climbed 8.4% to 3.4 billion euros, or 6% on a comparable basis.
The group confirmed it sees 2006 operating profit before tax and non-recurring items in the range of 680 million to 700 million euros for the year, a rise of more than 20% on a proforma basis.
The group confirmed it will open 200,000 new rooms at a cost of 2.5 billion euros by 2010, including 51% in the economy segment and 34% in the mid-scale segment. More than two-thirds of them will be opened under management or franchise contracts.
The expansion plan is focused on emerging markets in the Middle East , Latin America and in the ” BRICs” with Brazil , Russi , India and China representing 50% of openings.
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