The world's fourth-largest hotel group said the situation in Southern Europe continued to deteriorate in the quarter but demand remained strong in its main European markets, in emerging markets and in the United States.

Accor, which owns 4,200 hotels worldwide, said it still expected its full-year 2011 earnings before interest and tax EBIT.L to rise to between 510 million and 530 million euros, up from 446 million in 2010.

Accor's fourth-quarter sales reached 1.503 billion euros, slightly below a 1.522 billion euros forecast in a Reuters poll of six analysts.

Underlying sales growth was 3.6 percent compared with 5.8 percent in the third-quarter.

Analysts worry that Accor, which makes 70 percent of its sales in Europe, is more exposed than its peers, to a region where the business climate in 2012 might be tougher.

However, there have been few signs of a slowdown in hotel demand in most European markets so far.

Accor is the fourth-largest hotel group behind the InterContinental (IHG.L), Marriott (MAR.N) and Starwood Hotels (HOT.N) chains.

Hotel revenue grew 3.7 percent in the quarter on a like-for-like basis, led by improved average room rates in the economy segment in Europe and the United States.

With operations in 90 countries and hotels ranging from the luxury Sofitel chain to the budget Ibis and Motel 6 operations, Accor has a market value of 4.7 billion euros.

Accor's shares lost 41 percent last year, underperforming the STOXX Europe 600 travel and leisure sector index .SXTP which was down 15 percent.

(Reporting by Dominique Vidalon, editing by Astrid Wendlandt)

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