Accor, the French owner of the Novotel and Ibis hotel chains, has announced a 26 per cent drop in earnings for 2003 – but this was less of a fall than predicted.

Accor’s profit before tax was 523m euros, which exceeded its announced target of 500m euros. Net income totalled 270m euros while funds from operations amounted to 847m euros and consolidated debt was reduced by 340m euros to 2,462m euros.

Despite the decline in sales, margins at Accor hotels and services business edged back only slightly and showed firm resistance, which the group attributed to disciplined cost control.

Accor continued its expansion plans last year, with the group opening 170 hotels and also making targeted strategic acquisitions in services.

A spokesperson for Accor said: “We enjoy a number of specific growth drivers, including a unique network of more than 2,000 hotels in Europe, a privileged position in the economy segment and the worldwide potential of the services business in human resources management.

“With these strengths, supported by the group’s training and motivational policies, as well as by the professionalism and dedication of its employees, Accor is ready for the expected recovery.” Details: www.accor.com