French hotel group AccorHotels said Thursday it had earned a record profit last year, although that was entirely due to a boost from the sale of a stake in its property unit.
The net profit of 2.2 billion euros ($2.5 billion) included 2.4 billion euros in capital gains realised from the sale of a 65 percent share in its property business AccorInvest.
Saudi Arabia’s Public Investment Fund was among a number of investors to buy an initial 55% stake in AccorInvest for $5.4 billion.
The company, which includes the Pullman, Raffles, Novotel and Mercure brands, said it was also returning to the name Accor.
The sale of the real estate stake was part of shift by the company to manage hotels rather than own them.
"Accor 2018 results reflect a profound transformation, marked foremost by the sale of our real estate division and a large number of acquisitions," chief executive Sebastien Bazin said in a statement.
The company snapped up Switzerland's Movenpick Hotels and Resorts last year to add to its portfolio.
The expansion helped boost revenue by nearly 17 percent, and even when excluding that and exchange rate changes, revenue rose by almost nine percent.
Revenue by room rose by 5.6 percent.
Accor shares fell 3.2 percent in morning trading in Paris while the blue-chip CAC 40 index was flat.For all the latest travel news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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