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Accor narrows 2019 earnings guidance, cites China uncertainties

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PARIS (Reuters) – AccorHotels <ACCP.PA>, Europe’s largest hotels company narrowed its full-year profit guidance even as it reported stronger third-quarter sales on Thursday, citing uncertainty on China-related issues.

The group, which runs high-end chains including Raffles and Sofitel as well as budget brands such as Ibis, said third-quarter sales rose 10.9% year on year to 1.049 billion euros ($1.17 billion).

“Europe is doing well, while Asia Pacific is experiencing a decline linked to the situation in China,” Jean-Jacques Morin, Accor’s chief financial officer told reporters.

Hong Kong has been rocked by four months of often huge and violent protests which has caused tourists numbers to fall. U.S.-China trade uncertainties also weighed on the business, Morin said.

The group said it forecast that full-year 2019 earnings before interest, taxes, debt and amortisation (EBITDA) would rise to between 820-840 million euros. That was a slightly narrower range than the previous target of 820-850 million euros.

($1 = 0.8991 euros)

(Reporting Maya Nikolaeva, Editing by Sarah White and Jane Merriman)

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