The hotel group reported good revenue growth in every country except France (down 3.9%), where demand was dampened in particular by the increase in the VAT rate on January 1.

• Gross revenue up 3.5%, excluding the currency effect, to €2.5 billion, led by expansion in emerging markets.
• Revenue up 4.7% like-for-like to €262 million, with strong gains in the Mediterranean, Middle East, Africa region (MMEA, up 7.5%), the Asia Pacific region (up 8.1%) and the Americas (up 11.6%), thanks to expansion that was 85% under management and franchise contracts.
• 4,449 new rooms opened during the quarter, 50% of which were in emerging markets and 85% of which through franchise and management contracts. (For the detailed Q1 financial report, click here.)

Sébastien Bazin, chairman and chief executive officer of Accor (pictured right),  said, “Accor’s performance continued to improve in first-quarter 2014, despite a tough French market. HotelServices confirmed its high potential and is expanding quickly in fast growing geographies, while HotelInvest consolidated its position as the leading hotel investor in Europe, benefiting in particular from strong dynamics in the United Kingdom and Germany.

“These trends should continue in the coming months. At the same time, the group is pursuing deployment of its new strategy at a fast pace”.

The group said the outlook remains favorable: “First-quarter trends remain generally robust, with rising demand in almost every country, signs of recovery in Southern Europe and firm hotel pricing power, to the exception of France, Spain and Italy. The difficulties encountered in the French market are expected to continue into the second quarter, with the VAT effect and an unfavourable vacation and holiday calendar in April and May.

“However, the group should continue to benefit from a solid trading environment in all of its other geographies.”