Accor Group Surges Ahead with Strong Q1 Performance, Reveals Growth Strategy
ACCOR’S Q1 2024 PERFORMANCE DEMONSTRATES REVENUE GROWTH ACROSS REGIONS AND SEGMENTS, REINFORCING ITS POSITION IN THE HOSPITALITY INDUSTRY. WITH A FOCUS ON STRATEGIC DIVESTMENTS, FINANCIAL RESTRUCTURING, AND SHAREHOLDER VALUE, ACCOR REMAINS POISED FOR SUSTAINED GROWTH.
Accor, under the leadership of Sébastien Bazin, Chairman and CEO, has showcased an impressive performance in the first quarter of 2024, marking its return to the CAC 40 index. The Group’s solid performance, characterized by an 8% increase in Revenue per Available Room (RevPAR) and a notable 3.1% net unit growth, underscores its resilience and ability to navigate challenging market conditions.
Accor’s Positive Q1 Performance Across Regions
Accor’s Q1 performance reflects a robust demand for hotel services across all regions and segments. Notably, revenue increased across Africa and all other regions. This growth is a testament to the attractiveness of Accor’s brands and the trust placed by owners in the Group.
RevPAR Growth Highlights
In the Premium, Midscale & Economy (PM&E) division, RevPAR soared by 8% compared to the same period in 2023, primarily fueled by rate increases rather than occupancy rates. The Europe North Africa (ENA) region reported a 5% increase in RevPAR, with France, the United Kingdom, and Germany all contributing positively to this growth.
The Middle East, Africa, and Asia-Pacific region stood out with a remarkable 12% increase in RevPAR compared to Q1 2023. South-East Asia and the Pacific reported strong RevPAR growth.
The Americas region witnessed a 4% increase in RevPAR, with a slight decline in demand offset by higher average rates. The Luxury & Lifestyle (L&L) division reported a 7% increase in RevPAR, driven by higher occupancy rates, particularly in the Luxury segment.
Revenue Breakdown
Accor’s Q1 revenue reached €1,236 million, marking an 8% increase on a like-for-like basis compared to Q1 2023. The Premium, Midscale & Economy division contributed €690 million to this revenue, while the Luxury & Lifestyle division generated €566 million.
Within the Premium, Midscale & Economy division, Management & Franchise (M&F) revenue totaled €192 million, a 14% increase compared to Q1 2023. Meanwhile, Services to Owners revenue stood at €252 million, experiencing a slight decline of 1% due to a base effect.
The Luxury & Lifestyle division saw Management & Franchise revenue reach €102 million, up by 11% compared to Q1 2023. Services to Owners revenue of Accor amounted to €347 million, marking a 12% increase, while Hotel Assets and Other revenue surged by 13% compared to Q1 2023.
Outlook and Future Plans
Accor remains optimistic about its Q1 performaces prospects, reiterating its targets for annualized RevPAR growth between 3% and 4%, net unit growth between 3% and 5%, and M&F revenue growth between 6% and 10%. Additionally, the Group aims for a marginally positive EBITDA contribution from Services to Owners and EBITDA growth between 9% and 12%.
In line with its asset-light strategy, Accor disposed of its timeshare business, Accor Vacation Club, in Australia, New Zealand, and Indonesia. The Group also successfully issued a €600 million 7-year bond to strengthen its financial structure.
Accor completed a €400 million share buyback program, resulting in the cancellation of 3.9% of its shares. This move underscores the Accor’s commitment to enhancing shareholder value and revenue growth.
Accor’s upcoming Annual Shareholders’ Meeting on May 31st is anticipated to provide further insights into its strategic direction and future initiatives.
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