Accor reported "solid" numbers for the third quarter of 2024, with revenue up 12 percent to €1.43 billion, revenue per available room up 5.3 percent year over year and the pipeline up 6 percent quarter over quarter.
The company also confirmed its RevPAR growth guidance for 2024, with expected earnings before interest, taxes, depreciation and amortization to be between €1.1 billion and €1.125 billion for the remainder of the year.
Sustained activity growth
Accor's two divisions—Premium, Midscale and Economy and Luxury & Lifestyle—both posted “solid” performances, the company claimed.
During the quarter, Accor opened 47 hotels with 8,000 rooms for net unit growth of 3.2 percent over the past 12 months. At the end of September, the group had a hotel portfolio of 838,826 rooms across 5,638 hotels and a pipeline of 231,000 rooms in 1,380 hotels.
RevPAR
The Premium, Midscale and Economy division posted a 5 percent increase in RevPAR compared to the third quarter of 2023, still mostly driven by prices rather than by occupancy rates.
- The Europe and North Africa region posted a 6 percent increase in RevPAR compared to the third quarter of 2023.
- France, representing 45 percent 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.
- The United Kingdom, representing 12 percent 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.
- In Germany, representing 12 percent of room revenue for hotels in the region, RevPAR growth was stronger than in the two countries mentioned above throughout the summer.
- The Middle East, Africa & Asia-Pacific region posted a 1 percent increase in RevPAR compared to the third quarter of 2023, with contrasted performances by country.
The Southeast Asia, representing 34 percent of room revenue for hotels in the region, was the zone with the strongest RevPAR growth, driven by international demand, including from China.
The Middle East and Africa, representing 20 percent 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. In spite of this, the company reported “a sequential improvement of the activity” month over month.
In the Pacific, representing 26 percent of the region's room revenue, RevPAR growth was flat, penalized by weak economic growth and low consumer confidence.
In China, representing 21 percent 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.
- The Americas region, which mainly reflects the performance of Brazil (60 percent of the region’s room revenue), recorded an increase in RevPAR due to strong demand, particularly from business customers and events in Sao Paulo.
The Luxury & Lifestyle division posted a 7 percent increase in RevPAR compared to the third quarter of 2023, mainly driven by higher occupancy rate.
- The Luxury segment, representing 73 percent of the division's room revenue, reported a 5 percent 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.
- The Lifestyle division reported RevPAR growth of 14 percent 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 recorded revenue of €1.43 billion, up 12 percent compared to the third quarter of 2023. This growth breaks down as a 7 percent increase for the Premium, Midscale and Economy division and an 18 percent 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 percent) and the Egyptian pound (-37 percent).
AccorInvest
Since 2023, AccorInvest, which is accounted for under the equity method in the group’s consolidated statements, has initiated an asset disposal plan to be completed by 2025, aimed at optimizing its financial structure by reducing its debt and improving the profitability of its asset portfolio.
In July, AccorInvest finalized the refinancing of its bank borrowings, extending by two years the maturities due in 2025, along with a partial reimbursement.
Outlook for FY 2024
For FY 2024, Accor confirms the following guidance:
- RevPAR growth between 4 percent and 5 percent
- Net unit growth between 3 percent and 4 percent
- Positive contribution to EBITDA from services to owners
And upgrades the following guidance:
- Group EBITDA now expected between €1.1 billion and €1.12 billion (previously “between €1.09 billion and €1.12 billion”)