Accor Reports Solid H1 2024 PerformanceAccor Reports Solid H1 2024 Performance Strong RevPAR Growth and Network Expansion Accor has announced strong financial results for the first half of 2024, driven by solid RevPAR growth and continued expansion. RevPAR * Premium, Midscale, and Economy (PM&E) division witnessed a 4% increase in RevPAR compared to H1 2023. * Luxury & Lifestyle division saw significant growth with a 4% RevPAR rise. Group Turnover * Group turnover rose by 11% to €2,677 million. * PM&E segment revenue grew by 4%. * Luxury & Lifestyle division recorded a 22% increase. Key Business Divisions Premium, Midscale, and Economy * Management & Franchise (M&F) revenue rose by 7%. * Services to Owners revenue increased by 3%, driven by growth in RevPAR and number of rooms. Luxury & Lifestyle * M&F revenue increased by 15%. * Services to Owners revenue grew by 9%, linked to business expansion and RevPAR growth. * Hotel Assets and Other revenue surged by 84% due to the acquisition of Potel & Chabot. Group EBITDA * Group EBITDA amounted to €504 million, up 13% compared to H1 2023. * Strong sales and operational leverage contributed to the positive performance. Network Expansion * Accor opened 146 hotels in the first half of 2024, representing a 4.1% net unit growth. * As of June 2024, the Group had a portfolio of 838,722 rooms and a pipeline of 218,000 rooms. Outlook Accor remains optimistic about its growth prospects and has increased its RevPAR target for 2024. The Group’s diversified portfolio and operational discipline will continue to drive performance.
Representative image, interior photo of Pullman Singapore Hill Street
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 publications.
Sébastien Bazin, Chairman and CEO of Accor, said: “Accor has once again delivered solid performance in this first half, 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 across all regions and across all our brands, our pace of development accelerated and our leadership in luxury and lifestyle was further strengthened by major partnerships. This performance allows us to increase our 2024 RevPAR target and confirms our confidence in the strength and ambition of the Group.
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, mobilized for months, will put their expertise, their passion for hospitality and their generosity at the service of the Athletes’ Village, the Media Village and all the visitors to our hotels, thus helping to enhance the prestige of France throughout the world.”
The Group’s diversification, both in terms of geography and segments, plays a key role for each of the two divisions. Demand remains generally robust and Accor has the exposure required to capitalise on it.
In the first half of 2024, Accor opened 146 hotels, representing 24,000 rooms, representing net unit growth of 4.1% over the past 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).
RevPAR Q2 2024
The Premium, Midscale and Economy (PM&E) division reported a 4% increase in RevPAR compared to Q2 2023, still primarily driven by prices rather than occupancy.
Group turnover
For the first half of 2024, the Group recorded a turnover of €2,677 million, an increase of 11% compared to the first half of 2023. This growth is divided into a 4% increase for the Premium, Midscale and Economy divisions and a 22% 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 €117 million.
Currency effects had a negative impact of €63 million, mainly related to the Turkish lira (-39%), the Australian dollar (-4%), the Egyptian pound (-18%) and the Argentine peso (-77%).
Premium, Midscale and Economy revenues
Premium, Midscale and Economy, including fees from Management & Franchise (M&F), Services to Owners and Hotel Assets & Other of the Group’s Premium, Midscale and Economy brands, generated revenues 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) The company’s revenue was €431 million, up 7% from the first half of 2023 and slightly ahead of RevPAR growth in the period (+6%).
Services to owners Revenue, which includes sales, marketing, distribution and loyalty activities, as well as shared services and hotel expense reimbursement, amounted to €538 million, up 3% compared to the first half of 2023. This increase, which was more moderate than the change in RevPAR, reflects a prior-year base effect, mentioned in the first-quarter revenue announcement, which included the re-invoicing of costs incurred by Accor for the provision of supporter reception services during the FIFA World Cup in Qatar.
Hotel assets and other Revenue increased by 2% compared to the first half of 2023. This segment, which is closely linked to the Australian operations, is impacted by the current weak demand for leisure activities.
Luxury & Lifestyle Income
Luxury & Lifestyle, which includes the fees of Management & Franchise (M&F), Services to Owners and Hotel Assets and Other of the Group’s Luxury & Lifestyle brands, generated revenues of €1,243 million, up 22% compared to the first half of 2023. This increase reflects the excellent performance of this business, the increase in fees related to the residential activity and a scope effect related to the acquisition of Potel & Chabot.
The Management & Franchise (M&F) The company’s revenue amounted to €242 million, up 15% compared to the first half of 2023. This increase was driven by RevPAR growth (+7%) and favorable timing of compensation related to the residential activity in the Lifestyle segment.
Services to owners Revenue, which includes sales, marketing, distribution and loyalty activities, as well as shared services and hotel expense reimbursement, amounted to €716 million, up 9% compared to the first half of 2023. This increase is linked to business growth in terms of RevPAR and number of rooms.
Hotel assets and other Sales increased by 84% compared to the first half of 2023. This activity includes a significant scope effect related to the acquisition of Potel & Chabot in October 2023.
The Management & Franchise (M&F) The company recorded revenues of €673 million, up 10% compared to the first half of 2023. This reflected the increase in RevPAR across the Group’s various regions and segments (+6% compared to 2023), boosted by residential activity in the Lifestyle segment.
Group EBITDA
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 sales, the operational leverage of the M&F activity and strict cost discipline in Services to Owners, which allowed the Group to post positive EBITDA for this part of the business, as expected.
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