AccorHotels is backing away from its intention to invest in Air France-KLM saying conditions have not been met for its planned acquisition of a minority stake.
The France-based group announced its intention to invest in the airline company at the beginning of June as part of its “strategy to enrich its range of services in the travel space.”
The hotel group says now that it still sees value in a “strengthened partnership” between hotel companies and airlines, it is no longer pursuing this avenue.
The statement came as AccorHotels reported half-year results for 2018 showing an 8% increase to consolidated revenue of €1.5 billion. Net profit was reported as €2.2 billion following the sale of a stake in AccorInvest.
Revenue for new businesses acquired by the company including Gekko, ResDiary and Adoria contributed €70 million, an increase of 7% over the first half of 2017.
The company acquired hotel reservation tech specialist Gekko last October and ResDiary for restaurant reservations last April. Adoria, a contract catering tech provider, was acquired in June 2018.
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AccorHotels attributed a negative €15 million EBITDA for new businesses to Onefinestay and John Paul saying their growth was dependent on “synergies and scaling plans with AccorHotels which have not been delivered as planned.”
Going forward, however, the company expects acquisitions to contribute €50 million to EBITDA.
The company says it still sees strong potential for both serviced private homes and concierge services within the group.
Onefinestay was acquired in April 2016 for €148 million while a deal to acquire the majority of concierge and loyalty business John Paul was announced in July of the same year.