For the first quarter 2024, Accor reports revenue of 1.236 billion euros ($1.324 billion), up 8 percent on a like-for-like (LFL) basis compared with the first quarter 2023. In the quarter, Accor opened 53 hotels corresponding to more than 8,000 rooms, representing a net unit growth of 3.1 percent over the last 12 months. At the end of March, the group had a hotel network of 825,313 rooms (5,613 hotels) and a pipeline of 224,000 rooms (1,297 hotels).
“In this first quarter, marked by the group’s return in CAC 40, Accor once again delivered a solid performance, increasing revenue in all regions, notably in the Middle East and Asia Pacific,” Chairman and CEO Sébastien Bazin said in a statement. “Our network growth also accelerated, reflecting the attractiveness of our brands and the trust of our owners. By continuing to combine high standards with operational flexibility, quality of execution and financial discipline, we are confident in our ability to pursue a growth path that is in line with the objectives we have set for ourselves.”
First-Quarter 2024 RevPAR
The Premium, Midscale & Economy division posted an 8 percent increase in RevPAR compared with the first quarter of 2023, still more driven by rates than by occupancy rates.
The Americas region, which mainly reflects the performance of Brazil (65 percent of room revenue for the region), posted a 4 percent increase in RevPAR compared with the first quarter of 2023. The activity, which had exceeded the occupancy recorded prior to COVID, posted a slight decline in demand. Nevertheless, this slight decline in occupancy was more than offset by higher average rates.
The Luxury & Lifestyle division reported a 7 percent increase in RevPAR compared with the first quarter of 2023, mainly driven by higher occupancy.
The Luxury segment, 77 percent of the division’s room revenue, posted a 6 percent increase in RevPAR compared with the first quarter of 2023. Being more exposed to North America than the other segments, luxury RevPAR growth is slightly more modest, reflecting a more mature market.
The lifestyle segment reported solid RevPAR growth of 10 percent compared with the first quarter of 2023. This was driven by improved occupancy at resorts in Turkey, Egypt and the UAE.
Outlook
The group confirmed its medium-term growth perspectives as disclosed during the Investor Day on June 27, 2023:
- Annualized RevPAR growth between 3 percent and 4 percent (CAGR 2023-27)
- Annualized net unit growth between 3 percent and 5 percent (CAGR 2023-27)
- M&F revenue growth between 6 percent and 10 percent (CAGR 2023-27)
- A marginally positive EBITDA contribution from Services to Owners
- EBITDA growth between 9 percent and 12 percent (CAGR 2023-27)
- Recurring free cash flow conversion in excess of 55 percent
- A return to shareholders of around €3 billion over the 2023-2027 period
In the first quarter of 2024, Accor completed a €400 million share buyback program, with an accretive effect for shareholders through the cancelation of 3.9 percent of its shares.