Solid performances in line with growth targets for Accor Group in 1st half 2024

Accor's first half of 2024 showcased robust growth, with 146 new hotels and significant geographic and segment diversification enhancing its market presence and operational strength.

The article Solid performances in line with growth targets for Accor Group in 1st half 2024 first appeared in TravelDailyNews International.

The first half of 2024 confirms Accor‘s growth outlook, as presented at the Capital Markets Day on June 27, 2023 and reiterated in recent earnings and revenue releases. The Group’s diversification, both in terms of geographies and segments, plays a key role for each of the two divisions. Demand remains generally robust and Accor has the required exposure to capture it.

During the first half of 2024, Accor opened 146 hotels, representing 24,000 rooms, i.e. net unit growth of 4.1% over the last 12 months. At the end of June 2024, the Group had a hotel portfolio of 838,722 rooms (5,682 hotels) and a pipeline of 218,000 rooms (1,297 hotels).

Sébastien Bazin, Chairman and CEO of Accor, said: “Once again in this first half-year, Accor posted solid performances, in line with the medium-term outlook we presented to our investors last year. This demonstrates the strength of our model, the operational and financial discipline of our teams, and the strong momentum of the Group and its brands.

Activity in the second quarter remained strong in all regions and for all our brands, our pace of development accelerated and our leading position in luxury and lifestyle was further strengthened by major partnerships. These performances enable us to raise our RevPAR target for 2024 and to reaffirm our confidence in the Group’s strength and ambition.

The coming weeks will also be marked by the Paris 2024 Olympic and Paralympic Games, of which Accor is one of the partners. For this unique event, our teams, who have been mobilised for months, will be putting their expertise, their passion for hospitality and their generosity at the service of the Athletes’ Village, the Media Village and all visitors to our hotels, thereby helping to raise the profile of France throughout the world.”

Second quarter 2024 RevPAR

The Premium, Midscale and Economy (PM&E) division posted a 4% increase in RevPAR compared to the second quarter of 2023, still mostly driven by prices rather than by occupancy rates.

• The Europe North Africa (ENA) region posted a 1% increase in RevPAR compared to the second quarter of 2023.
  – In France, which represents 43% of the region’s room revenue, RevPAR growth was negative compared to the second quarter of 2023, solely due to the Paris region, while the provinces continued to record positive RevPAR growth. This change was anticipated and mainly reflects a high comparison base (due in particular to the presence of the Paris Air Show in June 2023).
  – The United Kingdom, representing 13% of the region’s room revenue, posted slightly positive RevPAR growth, in line with the first quarter. The provinces slightly outperformed London.
  – In Germany, representing 14% of the region’s room revenue, RevPAR growth was stronger than in France and the UK, particularly in June thanks to the European Football Championship.
• The Middle East, Africa & Asia-Pacific region posted a 7% increase in RevPAR compared to the second quarter of 2023, with a particularly solid performance in the Middle East and South-East Asia.
• The Middle East Africa region, representing 27% of the region’s room revenue, continued to post double-digit RevPAR growth, particularly in the United Arab Emirates and Saudi Arabia. This latter country’s performance was boosted by the Hajj religious pilgrimage in June.
• South-East Asia, representing 30% of the region’s room revenue, also posted double-digit RevPAR growth. Countries such as Thailand benefited from the gradual recovery of Chinese tourist flows.
• The Pacific, representing 25% of the region’s room revenue, recorded an improvement in the occupancy rate compared to the second quarter of 2023, but RevPAR growth was negative due to weak leisure demand.
• In China, representing 19% of the region’s room revenue, RevPAR growth was negative. Tourism has recovered as expected, but is not benefiting the domestic market, as Chinese customers are travelling more to South-East Asian countries.
• The Americas region, which mainly reflects the performance of Brazil (64% of the region’s room revenue), recorded RevPAR growth of 12% compared to the second quarter of 2023. Brazil benefited from a strong event calendar, particularly in Sao Paulo and Rio de Janeiro.

The Luxury & Lifestyle (L&L) division posted an 8% increase in RevPAR compared to the second quarter of 2023, mainly driven by higher occupancy rate.

• The Luxury segment, representing 76% of the division’s room revenue, posted a 6% increase in RevPAR compared to the second quarter of 2023. This performance was driven by all brands. Growth in the occupancy rate was the main factor behind this improvement.
• Lifestyle RevPAR increased by 14% compared to the second quarter of 2023, driven by prices, particularly at resorts in Turkey, Egypt and the United Arab Emirates.

Group revenue

For the first half of 2024, the Group recorded revenue of 2,677 million euros, up 11% compared to the first half of 2023. This growth breaks down as a 4% increase for the Premium, Midscale and Economy division and a 22% increase for the Luxury & Lifestyle division.

Scope effects, mainly related to the takeover of Potel & Chabot (in October 2023) in the Luxury & Lifestyle division (Hotel Assets & Other segment), contributed by 117 million euros.

Currency effects had a negative impact of 63 million euros, mainly related to the Turkish lira (-39%), the Australian dollar (-4%), the Egyptian pound (-18%) and the Argentine peso (-77%).

The article Solid performances in line with growth targets for Accor Group in 1st half 2024 first appeared in TravelDailyNews International.