French hospitality giant Accor Group is evaluating the possibility of an initial public offering for the Ennismore lifestyle hotel and restaurant entity in which it is the majority shareholder, the company announced on Thursday (23 October). The company also announced steady third-quarter operating results.
Accor's board "unanimously approved the start of preparatory work to evaluate a possible stock market listing for Ennismore," the company said in a statement.
Ennismore is a joint venture created in 2021 between Accor and the predecessor Ennismore luxury hotel operator. It includes 192 hotels, according to the company.
Accor is Ennismore's controlling shareholder and would remain so in the event of an IPO, the company said.
"As a key asset for the Group, we intend, if this transaction occurs, to retain control while providing it with even more resources to accelerate its development," Accor chairman and CEO Sébastien Bazin said in a statement.
Accor CFO Martine Gerow on a Thursday conference call with analysts suggested that evaluating and preparing for a potential Ennismore IPO would take at least 12 months.
Accor Q3 metrics
Accor's third-quarter systemwide RevPAR increased 0.8 per cent year over year to €78. September RevPAR increased 3 per cent year over year, Gerow said.
In the Europe and North Africa region, RevPAR fell 4.6 per cent year over year to €78. France, which accounts for 42 per cent of the region’s room revenue, was down compared to 2024, mainly in Paris after the city hosted last summer’s Olympic Games.
In the Americas region – encompassing North, Central and South America and the Caribbean – RevPAR increased 7.1 per cent year over year to €43.
Q1 RevPAR in Accor's Premium, Midscale & Economy division decreased 1.1 per cent year over year to €63, while it increased 5 per cent in its Luxury & Lifestyle division to €164.
Third-quarter systemwide average daily rate increased 0.4 per cent year over year to €110, while it increased 5.7 per cent in the Americas group to €67. It decreased 1.2 per cent to €89 among the PM&E group and increased 3 per cent to €236 at L&L properties.
Q3 systemwide occupancy increased 0.3 percentage points year over year to 70.9 per cent, while it increased 0.8 percentage points in Europe and North Africa to 74.3 per cent. The Americas also saw occupancy rates increase 0.9 percentage points to 63.6 per cent.
Total third-quarter revenue increased 0.1 per cent at constant currency year over year to nearly €1.4 billion.