Hotel group Accor has reported a 34.2 per cent increase in revenue for the first quarter of 2019, bringing in €987 million.
Total revenue per available room (revpar) across the group grew 1.6 per cent, with Europe remaining “resilient” with revpar up 3.3 per cent.
While revpar was only up slightly in the UK (0.9 per cent), there was a “highly contrasted situation between London and the regional cities”. In the capital, revpar grew 5.8 per cent, while regional markets fell 4 per cent due to “a weak corporate demand amid Brexit uncertainties”.
Following tensions in Catalonia in 2017, the Iberian Peninsula has recovered to see revpar grow 8.8 per cent. Eastern Europe also performed well, increasing 5.4 per cent, which Accor attributes to the introduction of a dynamic pricing policy and strong leisure demand in Budapest.
Meanwhile, Asia-Pacific revpar fell slightly by 0.6 per cent mainly driven by oversupply in major Australian cities, according to the group. The Middle East also saw a decrease (0.7 per cent), while North America was down 2.1 per cent and South America was up 11.2 per cent.
Accor’s new businesses across concierge services, luxury home rentals, private sales of luxury hotel stays and digital services for properties generated revenue of €37 million – up 10 per cent up on 2018. This was driven by the group’s acquisitions of ResDiary and Adoria.
Chairman and CEO Sebastien Bazin said: “In a turbulent macroeconomic environment, the group’s first-quarter revenue performance highlights the effectiveness of our transformation and the soundness of our strategy. Europe remained strong, while South America continued its robust recovery.
“We achieved sustained business development over the period, in line with our medium-term objectives, and continued to strengthen our pipeline, with an ever-increasing share of luxury hotels, which generate higher fees per room. Performing well and growing steadily stronger, the group can tackle the rest of the year with confidence.”
accorhotels.com