Accor CFO: US Economy Hotel Prices Stabilizing This Year

Prices in the budget hotels sector in the U.S. have started stabilizing this year, French hotels group Accor SA (AC.FR) chief financial officer Sophie Stabile said Wednesday.

"Since the beginning of January, we've seen positive signs," that prices are stabilizing in the U.S., Stabile said, speaking on a conference call on first quarter sales. The group operates Motel 6 hotels in the country.

She added that Accor's business in Japan accounts for less than 0.4% of the group's sales and that most of the company's hotels are located in areas away from the earthquake zone.

Despite uncertainty from geopolitical events in Japan, Africa and the Middle East as well as the macro-economic environment, Accor Wednesday said it is "confident that the hotel cycle will continue to recover" this year.

Accor reported a 5.8% rise in first quarter revenue of 5.8% to EUR1.35 billion as business picked up in the group's range of hotels in Western Europe.

-By Mimosa Spencer, Dow Jones Newswires; +33 1 4017 1740; mimosa.spencer@dowjones.com

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