Accor Maintains Revenue Momentum in Q3

Accor Q3 2024 Revenue Surges

CEO STATEMENT

Sébastien Bazin, Chairman and CEO of Accor, said: “Once again this quarter, the Group posted solid sales growth, in line with its targets. This good performance was driven in particular by the dynamism of our Luxury & Lifestyle brands, sustained growth in high-potential regions and the positive impact of the Olympic Games in France, for which Accor was one of the Premium partners. By continuing to combine operational agility, quality of execution and financial discipline, we are convinced of our ability to consolidate the solidity of our business model over the long term and deliver significant growth in our results in 2024.”

While RevPAR growth is normalizing, the Group continues to benefit from its diversification in terms of geography and segment. The Group's two divisions, Premium, Midscale and Economy (PM&E) and Luxury & Lifestyle (L&L), posted solid performances. During the third quarter of 2024, Accor opened 47 hotels, representing 8,000 rooms, i.e. net unit growth of 3.2% over the last 12 months. At the end of September 2024, the Group had a hotel portfolio of 838,826 rooms (5,638 hotels) and a pipeline of 231,000 rooms (1,380 hotels).

 Third quarter 2024 RevPAR

The Premium, Midscale and Economy (PM&E) division posted a 5% increase in RevPAR compared to the third quarter of 2023, still mostly driven by prices rather than occupancy rates.

• The Europe North Africa (ENA) region posted a 6% increase in RevPAR compared to the third quarter of 2023.
• France, representing 45% 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% 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% 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% increase in RevPAR compared to the third quarter of 2023, with contrasted performances by country.
•  Southeast Asia, representing 34% of hotel room revenue, was the zone with the strongest RevPAR growth, driven by international demand, including from China.
• The Middle East, Africa, representing 20% 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. Nevertheless, we saw a sequential improvement in the activity month after month.
• In the Pacific, where RevPAR represents 26% of the region's room revenue, RevPAR growth was flat, penalized by weak economic growth and low consumer confidence.
• In China, representing 21% of the region's room revenue, RevPAR change was negative. As in many industries, the market remains challenging. Although Chinese customers are travelling 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% 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 (L&L) division posted a 7% increase in RevPAR compared to the third quarter of 2023, mainly due to a higher occupancy rate.

• The Luxury segment, representing 73% of the division's room revenue, reported a 5% increase in RevPAR compared with the third quarter of 2023. All brands drove this performance and reflected the various trends observed in PM&E's markets but with a slight premium.
• The Lifestyle division reported RevPAR growth of 14% 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 €1,434 million, up 12% compared to the third quarter of 2023. This growth breaks down as a 7% increase for the Premium, Midscale and Economy divisions and an 18% 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%), the Egyptian pound (-37%).