Accor's first half revenue per available room (RevPAR) increased six per cent year on year, while revenues grew 11 per cent compared to the same time in 2023, according to an earnings report released on Thursday (25 July).
The France-based hospitality group reported ‘record’ revenues of €2.7 billion for the first six months of 2024, and €393 million in operating profit, up from €351 million reported in H1 2023.
This growth represented 4 per cent year-on-year revenue increase for the group’s premium, midscale and economy (PM&E) division and a 22 per cent increase for its luxury and lifestyle division.
Accor's systemwide RevPAR for the year’s first half was €72, up 6 per cent year over year. RevPAR for the PM&E division was €59, up 5.6 per cent, while the luxury and lifestyle segment saw a 7.1 per cent year-on-year increase to €154.
Group earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to €504 million for the first half of 2024, up 13 per cent compared to the same period in 2023.
Accor CEO and chairman Sébastien Bazin said the results are “in line” with the group’s medium-term outlook and, following “strong” activity in all regions throughout the second quarter, the group has raised its annual RevPAR target to between 4 and 5 per cent growth, up from a previous growth estimate of between 3 and 4 per cent year.
Bazin also flagged the Paris 2024 Olympic and Paralympic Games, which are due to kick-off on Friday (26 July) in Accor's largest market, and will likely impact the group's Q3 result. As a partner of the Games, Bazin said Accor's teams "have been mobilised for months" in order to support the Athletes' Village and Media Village as well as the anticipated influx of international visitors in its hotels.
RevPAR in the second quarter saw a 4 per cent year-on-year increase across the PM&E division to €64, mostly driven by prices rather than by occupancy rates, the group said. The luxury and lifestyle division, meanwhile, saw RevPAR increase 8 per cent year on year to €163, largely due to higher occupancy rate.
The Europe and North Africa region posted a 1 per cent year-on-year RevPAR increase to €76 for the second quarter. In France, which represents 43 per cent of the region’s room revenue, RevPAR growth was negative compared to the second quarter of 2023, “solely due to the Paris region, while the provinces continued to record positive RevPAR growth”, the group said.
In the UK, which represents 13 per cent of room revenue, RevPAR saw “slightly positive” growth, while Germany posted higher RevPAR growth than both the UK and France, largely due to the country’s hosting of the European Football Championship in June.
During the first half of 2024, Accor opened 146 hotels, representing 24,000 rooms. At the end of June, the group’s portfolio included 5,682 properties (838,722 rooms), with an additional 1,297 hotels in the pipeline.