PARIS, Feb 21 (Reuters) - AccorHotels, Europe’s largest hotel company, posted an 8 percent rise in like-for-like operating profits for 2018, helped by cost controls and robust demand in most key regions including France.
The French company said it would invest 225 million euros ($255 million) to support new initiatives to boost its footprint in hospitality and entertainment services.
The programme is expected to reach breakeven in 2021 and the group expects to exceed its 2022 EBITDA (earnings before interest, tax, depreciation and amortisation) target of 1.2 billion euros that was presented last November.
AccorHotels, which runs high-end chains such as Raffles and Sofitel as well as budget brands such as Ibis, said annual EBITDA reached 712 million euros, up 8 percent on a like-for-like basis.
This was in line with a revised company guidance for 2018 core earnings coming within a 700-720 million euros range.
$1 = 0.8821 euros Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta