* Mulls creating two separate listed companies
* H1 pretax profit falls 54 percent to 182 million eur
* Raises 2009 cost cut target to 150 million eur from 120 million
* Shares rise as much as 10.7 percent
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By James Regan
PARIS, Aug 27 (Reuters) - Europe's largest hotel group, Accor, said it may split its prepaid services division from its main hotel operations, sending its shares higher on Thursday despite a 54 percent drop in first-half profit.
The company also forecast operating profit before tax and non-recurring items would fall by around half this year, as the economic crisis hurts demand for its top-end and mid-range hotels, and raised its cost-savings target for the year.
"The transformation of the two businesses will be accelerated," Accor said, adding it would study "the merits of a separation of the business in two autonomous units with their own strategy and means of development".
Shares in Accor rose as much as 10.7 percent to 38.73 euros, making them the top gainers on the French blue-chip CAC 40 index, as analysts welcomed the chance for prepaid services to realise a valuation premium to hotels.
"The possibility of listing the entities autonomously allows a fair value to be given to the services shares without affecting their capacity to grow and the acceleration of the restructuring of the hotel unit, whose valuation will definitely benefit with time," Natixis analysts said.
Accor had a market value of 7.88 billion euros as of Wednesday. The services division could be worth 5.2 billion euros, based on 15 times estimated 2010 operating profit, Oddo Securities analyst Gilles Rascoussier said.
Accor had earlier this year dismissed splitting hotels from prepaid services, which include luncheon vouchers and prepaid bank cards, saying services was key to supporting earnings as it countered the cyclicality of its hotel business.
But Chairman and Chief Executive Gilles Pelisson told analysts on Thursday it had become clear there were very limited synergies between the two businesses and that opportunities to grow services were increasing.
He cited a joint venture agreed with MasterCard in February to provide flexible payment services, called PrePay Solutions, adding that autonomy would allow both businesses to access the financing they need to grow independently.
Pelisson plans to reveal the decision on whether to create two separate listed companies in February. Such a move could be implemented towards the end of next year.
This could create two "champions" in time to benefit from a possible economic upturn in 2010 or 2011, he said.
HOTEL DEMAND DOWN
Accor's hotel business, ranging from the budget Ibis brand to top-of-the-range Sofitel, has suffered from a drop in demand for its upscale and midscale hotels, as well as its economy hotels in the U.S., during the economic crisis.
Budget hotels outside the U.S., especially in France, have remained resilient.
UK rival InterContinental Hotels, the world's biggest hotelier, said on Aug. 11 a recovery for the industry might be two years away. Marriott International last month reported a 76 percent drop in second-quarter profit and cut its 2009 forecast.
Accor's pretax profit before non-recurring items fell 54 percent in the first six months of the year to 182 million euros ($261 million). The group forecast full-year profit of 400-450 million euros, down from 875 million last year. Accor raised its target to reduce operating costs this year to 150 million euros from 120 million.
The company added that it expected no major improvement in its hotel business in the second half of the year.
Pelisson was made chairman as well as chief executive in February, leading to the departure of previous Chairman Serge Weinberg and five other members of the board of directors, under pressure from top shareholders Eurazeo and Colony, which own a combined 30 percent of Accor. ($1=.6983 Euro) (Reporting by Marcel Michelson and James Regan; Editing by Will Waterman and Erica Billingham)