ACCOR: THIRD-QUARTER 2024 REVENUE SUSTAINED ACTIVITY GROWTH
Revenue up 12% to €1,434m. |
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ACCOR: THIRD-QUARTER 2024 REVENUE SUSTAINED ACTIVITY GROWTH
Revenue up 12% to €1,434m. |
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2024-10-25
- REVPAR up 5.3% vs. q3 2023
- Pipeline up 6% vs. End of June 2024
- Confirmed RevPAR growth guidance for 2024
- EBITDA now expected between €1,100 million and €1,125 million in 2024Sébastien Bazin, Chairman and CEO of Accor, said:
“Once again this quarter, the Group posted solid sales growth, in line with its targets. This good performance was driven in particular by the dynamism of our Luxury & Lifestyle brands, sustained growth in high-potential regions and the positive impact in France of the Olympic Games, for which Accor was one of the Premium partners. By continuing to combine operational agility, quality of execution and financial discipline, we are convinced of our ability to consolidate the solidity of our business model over the long term and deliver significant growth in our results in 2024.”
While RevPAR growth is normalizing, the Group continues to benefit from its diversification in terms of geography and segment. The Group's two divisions, Premium, Midscale and Economy (PM&E) and Luxury & Lifestyle (L&L), both posted solid performances.
During the third quarter of 2024, Accor opened 47 hotels, representing 8,000 rooms, i.e. net unit growth of 3.2% over the last 12 months. At the end of September 2024, the Group had a hotel portfolio of 838,826 rooms (5,638 hotels) and a pipeline of 231,000 rooms (1,380 hotels).
Third quarter 2024 RevPAR
ThePremium, Midscale and Economy (PM&E)division posted a 5% increase in RevPAR compared to the third quarter of 2023, still mostly driven by prices rather than by occupancy rates.
- TheEurope North Africa(ENA) region posted a 6% increase in RevPAR compared to the third quarter of 2023.
- France, representing 45% of room revenue for hotels in the region, benefited from the Paris Olympic Games. As anticipated, the event reported strong RevPAR growth in Paris. In the provinces, business was resilient during the summer, but September was affected by a high comparison basis linked to the Rugby World Cup held in September and October 2023.
- TheUnited Kingdom, representing 12% of the region's hotel room revenue, posted slightly positive RevPAR growth in line with previous quarters, with similar performances between London and the provinces.
- InGermany, representing 12% of room revenue for hotels in the region, RevPAR growth was stronger than in the two countries mentioned above throughout the summer.
- TheMiddle East, Africa & Asia-Pacificregion posted a 1% increase in RevPAR compared to the third quarter of 2023, with contrasted performances by country.
- TheSoutheast Asia, representing 34% of room revenue for hotels in the region, was the zone with the strongest RevPAR growth, driven by international demand, including from China.
- TheMiddle East, Africa, representing 20% of room revenue for hotels in the region, was negatively impacted by the timing of religious pilgrimages, including the Hajj, and the delayed start of the Umrah in Saudi Arabia. Added to this is the gradual reopening of 5 hotels in Dubai which were closed following the floods in April. Nevertheless, we saw a sequential improvement of the activity month after month.
- In thePacific, representing 26% of the region's room revenue, RevPAR growth was flat, penalized by weak economic growth and low consumer confidence.
- InChina, representing 21% of the region's room revenue, RevPAR change was negative. As in many industries, the market remains challenging. Although Chinese customers are traveling abroad, benefiting Southeast Asia in particular, the domestic market remains penalized by the decline in consumption.
- TheAmericasregion, which mainly reflects the performance of Brazil (60% of the region’s room revenue), recorded an increase in RevPAR due to strong demand, particularly from business customers and events in Sao Paulo.
TheLuxury & Lifestyle (L&L)division posted a 7% increase in RevPAR compared to the third quarter of 2023, mainly driven by higher occupancy rate.
- TheLuxurysegment, representing 73% of the division's room revenue, reported a 5% increase in RevPAR compared with the third quarter of 2023. This performance was driven by all brands and reflects the various trends observed in PM&E's markets, but with a slight premium.
- TheLifestyledivision reported RevPAR growth of 14% compared with the third quarter of 2023, once again driven by resort hotels, notably in Turkey and Egypt.
Group revenue
For the third quarter of 2024, the Group recordedrevenueof €1,434 million, up 12% compared to the third quarter of 2023. This growth breaks down as a 7% increase for the Premium, Midscale and Economy division and an 18% increase for the Luxury & Lifestyle division.
Scope effects, mainly related to the acquisition of Potel & Chabot (in October 2023) in the Luxury & Lifestyle division (Hotel Assets & Other segment), contributed by €56 million.
Currency effects had a negative impact of €30 million, mainly related to the Brazilian real (-13%), the Egyptian pound (-37%).
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