France-based hospitality giant Accor reported ‘buoyant’ demand across it business and leisure brands for the first half of 2023 after posting a net profit of €248 million for the period and revenue of €2.4 billion, up 35 per cent compared to 2022.
Across its two divisions, the luxury and lifestyle segment saw a ‘surge’ in business, generating €1.02 billion in revenue, up 40 per cent compared to H1 2022. The premium, midscale and economy segment, meanwhile, generated €1.4 billion in revenue, a year-on-year increase of 34 per cent.
Consolidated revpar (revenue per available room) continued to rise throughout the period, up 25 per cent in the year’s second quarter compared to Q2 2022 and 27 per cent higher than 2019 levels.
The luxury and lifestyle brands reported a 24 per cent increase in revpar compared with Q2 2022, driven by both higher occupancy rates and prices, while the premium, midscale and economy segment grew its revpar by 26 per cent, with growth attributed to an increase in prices rather than a rise in occupancy rates.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at €447 million for the six months to end June, more than double the figure reported in H1 2022.
Accor CEO Sébastien Bazin said the group’s half-year activity growth was “very strong across all of our brands and markets”.
“This momentum should continue for the coming months, driven by robust demand in both leisure and business tourism,” he added. “The performance enables us to raise our 2023 guidance and to continue investing in our brands, talents and digital tools.”
In Europe and North Africa the group reported a 20 per cent revpar increase relative to Q2 2022.
In France, which accounts for 45 per cent of the region's room revenue, revpar remained solid, underpinned by major business and leisure events in Paris. The group reported that social unrest at the end of June had “no significant impact” on the quarter or on summer bookings.
Meanwhile, the UK saw “balanced growth” in revpar between London and other cities. Germany saw revpar improve “significantly” in the second quarter, but nevertheless continued to lag behind the rest of Europe.
During the first half of 2023, Accor opened 114 hotels, representing 14,500 rooms. At the end of June 2023, the group’s portfolio consisted of 5,487 properties and a pipeline of 1,262 hotels.