PARIS – Accor reported results for the first half of 2024 and
highlighted a 6% jump in RevPAR year-over-year, as well as net unit growth that
accelerated to 4.1% over the past 12 months.
“Once again in this first half-year, Accor posted solid
performances, in line with the medium-term outview we presented to our
investors last year,” stated Accor Chairman and CEO Sébastien Bazin. “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.”
Bazin added that activity in the second quarter remained
strong in all regions and for all Accor 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 tarobtain for 2024 and to reaffirm our confidence in the group’s
strength and ambition.”
On the earnings call, CFO Martine Gerow added that Accor
expects strong performance momentum to continue, especially in the Middle East
and Southeast Asia. She also stated Europe and North Africa should benefit from
the Paris Olympics.
During the first half of 2024, Accor opened 146 hotels,
representing 24,000 rooms for a net unit growth of 4.1% over the last 12
months. At the conclude 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).
For FY 2024, Accor is announcing the following guidance:
- RevPAR growth of between 4% and 5%
- Network unit of between 3% and 4%
- A positive contribution to EBITDA by Services to
Owners - EBITDA of between €1,095 million and €1,125
million
Net profit, Group share, amounted to €253 million for
the first half of 2024 compared to €248 million in the first half of 2023.
The improvement to €49 million in the share of net
profit of equity-investments for the first half of 2024, compared with €9
million in the first half of 2023, is mainly linked to AccorInvest, which
benefited from the stabilization of activity in Europe and the recognition of
capital gains linked to its ongoing asset disposal plan.
Group EBITDA amounted to €504 million for the first half of 2024, up 13% compared to the first half of 2023. This performance was linked to strong revenue, the operating leverage of the M&F activity and strict cost discipline in Services to Owners, enabling the Group to post positive EBITDA for this part of the business, as expected.
The Premium, Midscale and Economy (PM&E) division
posted a 4% year-over-year increase in RevPAR during the second quarter, still
mostly driven by prices rather than by occupancy rates. 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.
For the first half of 2024, Accor recorded revenue of
€2,677 million, 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.
Premium, Midscale and Economy, which includes fees from
Management & Franchise (M&F), Services to Owners and Hotel Assets &
Other of the Group’s Premium, Midscale and Economy brands, generated revenue of
€1,473 million, up 4% compared to the first half of 2023. This increase is
broadly in line with the level of activity in the first half.
The Management & Franchise (M&F) business
posted revenue of €431 million, up 7% compared to the first half of 2023 and
slightly exceeding RevPAR growth during the period (+6%).
Luxury & Lifestyle, which includes fees from Management
& Franchise (M&F), Services to Owners and Hotel Assets and Other of the
Group’s Luxury & Lifestyle brands, generated revenue of €1,243 million, up
22% compared to the first half of 2023. Accor stated this increase reflects the
excellent performance of this business, the increase of the fees linked to the
residential activity and a scope effect linked to the takeover of Potel &
Chabot.
The Management & Franchise (M&F) business
posted revenue of €242 million, up 15% compared to the first half of 2023,
driven by RevPAR growth (+7%) and the favorable timing of fees related to the
residential activity in the Lifestyle segment.
The Management & Franchise (M&F) business
recorded revenue of €673 million, up 10% compared to the first half of 2023.
This reflected the increase in RevPAR in the Group’s various regions and
segments (+6% compared to 2023), amplified by the residential activity in the
Lifestyle segment.
The Luxury & Lifestyle division generated
EBITDA of €196 million, up 13% compared to the first half of 2023.
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