The Accor Group intends increasing its market share through sales initiatives and the opening of nearly 180 hotels (20,000 rooms) worldwide by the end of this year.

Reporting on this year’s half yearly interim results, the company said its EBITDA margin was 24.7 per cent, compared to 26 per cent in the first half of 2002. On a like for like basis, profit before tax declined by 22.8 per cent.

“The hotels business was particularly hard hit,” said an Accor spokesperson, “reaching a low point in April, with the combined effects of the war in Iraq, the SARS epidemic, the decline in US and Asian tourists in Europe, and social unrest in France in May and June”.

In the light of the first-half results and continuing weak business during the summer, except in the USA, where a slight upturn has been observed, the Group has set a full-year profit before tax objective of approximately 500m euros.

However, the Group says it will remain “prudent” in its investments, and that it will remain “targeted”.

John Marc Espalious, president of the board of directors, said there were a number of actions that could be taken to improve profitability of the hotel sector, notably through internet or partnerships with companies such as Air France, but also through reorganisation.

Three countries are to be the main focus of a regeneration programme: Britain, Italy and Spain. “We are witnessing the first signs of an economical reprise,” said Espalious, “and we are in a good position to take advantage of the situation.” Details: www.accor.com