A slowdown in business in major cities across the world dented Accor's 2002 sales and profits.
Its business and leisure hotel brands - Sofitel, Novotel, and Mercure - boosted turnover by 0.8% to €2.72b (£1.86b) but earnings before interest, tax, depreciation and amortisation (Ebitda) dropped by 2% to €719m (£481m), despite a strong performance in France.
Only its non-US economy brands - Ibis, Etap and Hotel Formule - bucked the trend, despite higher labour costs in France, a weak German economy and new contractual arrangements with independent operators.
Sales nudged ahead slightly to €1.1b (£751m) from €1.025b (£699.8m) in 2001, while Ebitda rose by 3% to €400m (£273m).
In the USA, both sales and Ebitda at its Red Roof Inns and Motel 6 economy chains fell by 10% to €1.2b (£819m) and €464m (£317m) respectively. Accor cut both labour and corporate expenses in the USA by €23m (£15.7m).