AccorHotels said Thursday it has dropped plans to invest in
CEO Sebastien Bazin had said in June that the company was
looking into buying a minority stake in the airline as part of its strategy to
expand its range of services in the travel space. But in a statement with its
second-quarter earnings report Thursday, the company said it has decided
against pursuing that opportunity.
Still, the company said, "The Group remains convinced
that a strengthened partnership between hotel companies and airlines offers
significant value creation potential."
AccorHotels, which has been on a buying streak in recent
years, reported a net profit profit of 2.18 billion euros following the sale of
its stake in AccorInvest. It reported revenue of 1.46 billion euros, an 8%
Accor said revenue per available room was up 5.1%.
"The first half of 2018 saw AccorHotels continue the
deep-seated transformation of its business model, with the sale of a majority
stake in the capital of AccorInvest, the integration of Mantra in Australia and
Mantis in South Africa, and the acquisition of Gekko in France," Bazin
"The second half of the year will see Movenpick in the
Middle East, Atton in South America and SBE in the US join our network,
enabling us to consolidate our market shares and the vast array of choices we
offer our customers. The Group's strong operating performance delivered solid
results in first-half 2018 and record organic growth with the opening of 20,000
rooms over the period."