The Accor Group, a prominent player in the travel and hospitality industry, experienced strong business trends in the second quarter of 2023 across its two divisions. The Group’s performance showcased resilience, with robust demand from both leisure and business guests driving an increase in occupancy rates and average room rates.
Positive Outlook and Expanded Guidance: As a result of these encouraging results, the Accor Group has raised its full-year EBITDA guidance, which was initially presented at the Capital Markets Day on June 27th, 2023. This upward revision indicates a confident outlook for the Group’s performance in the rest of the year.
Continuous Growth and Expansion: During the first half of 2023, Accor opened an impressive total of 114 hotels, representing 14,500 rooms, resulting in a net unit growth of 3.5% over the last 12 months. As of the end of June 2023, the Group’s hotel portfolio comprises a staggering 805,436 rooms across 5,487 hotels. Additionally, the Group has a pipeline of 217,000 rooms in development across 1,262 hotels.
Firmly Aligned with Growth Targets: The Accor Group remains on track to achieve its forecast of net unit growth within the network, with expectations set between 2% and 3% for the entire year 2023.
Statement from Sébastien Bazin, Chairman, and CEO: Sébastien Bazin, the visionary Chairman, and CEO of Accor, expressed satisfaction with the first-half activity growth, which demonstrated strength across all of the Group’s brands and markets. Bazin attributed these positive performances to the rigorous execution of their strategic vision, the strong appeal of their brands, and the dedication of their teams. He further emphasized that the momentum generated is expected to persist in the coming months, driven by robust demand in both leisure and business tourism. The favorable performance allows the Group to raise its 2023 guidance and continue investing in their brands, talents, and digital tools.
Financial Performance: Accor Group reported consolidated revenue of 2,402 million euros for the first half of 2023, representing an impressive 35% like-for-like (LFL) growth compared to the same period in 2022. This growth was distributed evenly, with a 34% increase in the Premium, Midscale, and Economy division and a remarkable 40% surge in the Luxury & Lifestyle division. The consolidation of Paris Society in the Luxury & Lifestyle division (Hotel Assets & Other segment) contributed positively to this growth, adding 139 million euros.
Currency Effects: While the overall growth was substantial, currency effects had a minor adverse impact of 61 million euros, mainly stemming from the Australian Dollar (+5%), the Egyptian Pound (+75%), and the Turkish Lira (+32%).
Segment-Wise Revenue Growth: The Premium, Midscale, and Economy division generated revenue of 1,418 million euros, exhibiting a strong 34% LFL growth compared to H1 2022. The Luxury & Lifestyle division’s revenue stood at 1,020 million euros, experiencing an impressive 40% LFL growth over the same period.
Regional Performance: In terms of regional performance, the Europe North Africa (ENA) region reported a 20% increase in RevPAR compared to Q2 2022, while the Middle East Asia-Pacific region experienced an impressive 37% increase in RevPAR over the same period. The Americas region maintained solid business, primarily driven by price increases, and the Luxury & Lifestyle division reported a 24% increase in RevPAR compared to Q2 2022, driven by both higher occupancy rates and prices.
Looking Ahead: Accor Group’s strong performance, steady expansion, and positive outlook position it as a leading force in the travel and hospitality industry. The Group continues to leverage its expertise, market appeal, and strategic vision to shape the future of the sector and provide exceptional experiences for travelers worldwide.
