In this primary quarter, marked by the Group’s return in CAC 40, Accor as soon as once more delivered a stable efficiency, rising income in all areas, notably within the Middle East and Asia-Pacific. Our community development additionally accelerated, reflecting the attractiveness of our manufacturers and the belief of our house owners. By persevering with to mix excessive requirements with operational flexibility, high quality of execution and monetary self-discipline, we’re assured in our capability to pursue a development path that’s in step with the targets we have now set for ourselves. Sébastien Bazin, Chairman and CEO of Accor
The first quarter of 2024 as soon as once more demonstrates the energy of resort demand in all Accor Group areas and segments. Operating efficiency indicators (RevPAR and portfolio development) are all trending positively, and the Group has continued to handle its steadiness sheet in step with its commitments.
In the primary quarter of 2024, Accor opened 53 motels akin to over greater than 8,000 rooms, representing a web unit development of three.1% over the last12 months. At the tip of March 2024, the Group had a resort community of 825,313 rooms (5,613 motels) and a pipeline of 224,000 rooms (1,297 motels).
First-quarter 2024 RevPAR
The Premium, Midscale & Economy (PM&E) division posted an 8% enhance in RevPAR in contrast with the primary quarter of 2023, nonetheless extra pushed by charges than by occupancy charges.
- The Europe North Africa (ENA) area reported a 5% enhance in RevPAR in contrast with the primary quarter of 2023.
- In France, which represents 44% of the area’s room income, the Paris area and the provinces posted comparable RevPAR development. RevPAR development in March was significantly robust, benefiting from the next variety of occasions than in March 2023, and the absence of a serious strike in comparison with the identical interval final yr.
- The United Kingdom, 13% of the area’s room income, posted RevPAR development similar to France, with a fair steadiness between London and the provinces.
- In Germany, 13% of the area’s room income, RevPAR development was stronger than in France and the UK. This change displays a gradual enchancment, and advantages from a extra favorable base impact, because the exercise restoration within the nation was delayed as in comparison with the remainder of Europe.
- The Middle East, Africa and Asia-Pacific area reported a 12% enhance in RevPAR in contrast with the primary quarter of 2023.
- The Middle East Africa area, 26% of room income within the area, continued to publish stable RevPAR development, pushed by charges and benefiting specifically, in Saudi Arabia, from the Ramadan calendar, most of which was held within the first quarter of 2024.
- South-East Asia, 30% of room income within the area, additionally reported robust RevPAR development, pushed specifically by Singapore and Thailand.
- The Pacific, 27% of room income within the area, continued the pattern noticed within the fourth quarter of 2023, with RevPAR development pushed primarily by greater occupancy charges.
- In China, 18% of resort room income within the area, enterprise continued to get better, albeit at a measured tempo.
- The Americas area, which primarily displays the efficiency of Brazil (65% of room income for the area), posted a 4% enhance in RevPAR in contrast with the primary quarter of 2023. The exercise, which had exceeded the occupancy recorded previous to Covid, posted a slight decline in demand. Nevertheless, this slight decline in occupancy was greater than offset by greater common charges.
The Luxury & Lifestyle (L&L) division reported a 7% enhance in RevPAR in contrast with the primary quarter of 2023, primarily pushed by greater occupancy.
- The Luxury section, 77% of the division’s room income, posted a 6% enhance in RevPAR in contrast with the primary quarter of 2023. Being extra uncovered to North America than the opposite segments, Luxury RevPAR development is barely extra modest, reflecting a extra mature market.
- The Lifestyle section reported stable RevPAR development of 10% in contrast with the primary quarter of 2023. This was pushed by improved occupancy at resortsin Turkey, Egypt and the United Arab Emirates.
Group income
For the primary quarter of 2024, the Group reported income of €1,236 million, up 8% on a like-for-like foundation (LFL) in contrast with the primary quarter 2023. This enhance breaks down right into a 6% development for the Premium, Midscale and Economy division and a 12% development for the Luxury & Lifestyle division.
Scope results, primarily linked to the acquisition of Potel & Chabot (in October 2023) within the Luxury & Lifestyle division (Hotel Assets and Other section), positively contributed for €38 million.
Currency results had a detrimental affect of €37 million, primarily because of the Australian greenback (-5%) and the Turkish lira (-40%).
Premium, Midscale & Economy income
Premium, Midscale & Economy, which incorporates charges from Management & Franchise (M&F), Services to Owner and Hotel Assets & Other of the Group’s Premium, Midscale & Economy manufacturers, generated income of €690 million, up 6% LFL in contrast with the primary quarter of 2023. This enhance displays the sustained exercise reported over the interval, mitigated by a base impact in Services to Owner.
The Management & Franchise (M&F) income totaled €192 million, up 14% LFL in contrast with the primary quarter of 2023. This enhance, which was greater than the 8% rise in RevPAR over the interval, displays the robust development in incentive charges offered for in administration contracts, significantly in Asia-Pacific area. Management & Franchise efficiency by area is detailed on the next web page.
Services to Owners income, which incorporates Sales, Marketing, Distribution and Loyalty actions, in addition to shared companies and the reimbursement of resort prices, totaled €252 million, down (1)% LFL in contrast with the primary quarter of 2023. This decline displays a base impact on the identical interval final yr, which included the ultimate rebilling of prices incurred by Accor as a part of its reception companies for supporters throughout the soccer World Cup in Qatar.
Hotel Assets and Other income was up 9% LFL in contrast with the primary quarter of 2023. This section, which is strongly linked to exercise in Australia and Brazil, displays the extent of exercise recorded in these areas.
Luxury & Lifestyle income
Luxury & Lifestyle, which incorporates charges from Management & Franchise (M&F), Services to Owner and Hotel Assets & Other of the Group’s Luxury & Lifestyle manufacturers, generated income of €566 million, up 12% LFL in contrast with the primary quarter of 2023. This enhance additionally displays the nice exercise efficiency over the interval, in addition to the opening of latest venues at Paris Society.
Management & Franchise (M&F) revenuetotaled €102 million, up 11% like-for-like in contrast with the primary quarter of 2023, pushed by a 7% enhance in RevPAR and powerful development in incentive charges from administration contracts. The efficiency of the Management & Franchise enterprise by section is detailed on the next web page.
Services to Owners, which incorporates Sales, Marketing, Distribution and Loyalty actions, in addition to shared companies and the reimbursement of resort prices, totaled €347 million, up 12% LFL in contrast with the primary quarter of 2023.
Hotel Assets and Other income wasup 13% LFL in contrast with the primary quarter of 2023. This change on a like-for-like foundation displays the opening of the Abbaye des Vaux de Cernay resort and new restaurant venues at Paris Society, whereas the reported change of +77% features a important scope impact linked to the acquisition of Potel & Chabot in October 2023.
Management & Franchise income
Management & Franchise (M&F) posted revenueof €294 million, up 13% LFL in contrast with the primary quarter 2023. This change displays RevPAR development of 8% LFL vs. the primary quarter of 2023 amplified by:
- the sharp rise in incentive charges offered for in resort administration contracts, significantly within the Asia-Pacific and Lifestyle segments;
- a termination payment for a breach of contract within the Premium, Midscale & Economy section within the Americas.
Outlook
The Group confirmed its medium-term development views as disclosed throughout the Investor Day on June 27, 2023:
- Annualized RevPAR development between 3% and 4% (CAGR 2023-27)
- Annualized web unit development between 3% and 5% (CAGR 2023-27)
- M&F income development between 6% and 10% (CAGR 2023-27)
- A touch constructive EBITDA contribution from Services to Owners
- EBITDA development between 9% and 12% (CAGR 2023-27)
- Recurring free money move conversion in extra of 55%
- A return to shareholders of round €3 billion over the 2023-2027 interval
In the primary quarter of 2024, Accor accomplished a €400 million share buyback program, with an accretive impact for shareholders by the cancellation of three.9% of its shares.
Events in 2024
Disposal of Accor Vacation Club
On January 30, 2024, Accor entered into an settlement with Travel + Leisure to promote Accor Vacation Club, its timeshare enterprise in Australia, New Zealand and Indonesia on the premise of an enterprise worth of AUD78 million (€48 million). The settlement additionally consists of an unique franchise settlement for Travel + Leisure’s future new timeshares underneath the Accor manufacturers in Asia Pacific, the Middle East, Africa and Turkey. This transaction is a part of the Group’s ongoing asset-light technique and was closed on the finish of Q1 2024.
Bond concern
On March 4, 2024, Accor efficiently positioned a €600 million 7-year bond with a coupon of three.875%. The transaction was greater than 4 instances oversubscribed, reflecting Accor’s robust credit score high quality and investor confidence in its enterprise mannequin, development potential and monetary construction. This transaction permits the Group to benefit from enticing market circumstances and considerably lengthen the common maturity of its debt.
Share buyback
On April 5, 2024, Accor introduced the completion of its €400 million share buyback program introduced on February 22, 2024.
A primary tranche of share buybacks totalling €275 million was accomplished by a share buy settlement signed with Jinjiang International on March 11, 2024. The transaction accounted for 7 million shares at a value per Accor share of €39.22.
The remaining €125 million of the share buyback program, launched on March 20, 2024,
was accomplished on April 4, 2024, with the acquisition of two,923,228 shares at a common value of €42.93.
At completion, the Group acquired 9,923,228 shares at a median value of €40.31. These shares have been cancelled.
Next occasion in 2024
May 31: Annual Shareholders’ Meeting
About Accor, a world-leading hospitality group
Accor is a world main hospitality group providing experiences throughout greater than 110 nations in 5,500 properties, 10,000 meals & beverage venues, wellness services or versatile workspaces. The Group has one of many trade’s most various hospitality ecosystems, encompassing greater than 45 resort manufacturers from luxurious to economic system, in addition to Lifestyle with Ennismore. Accor is dedicated to taking constructive motion by way of enterprise ethics & integrity, accountable tourism, sustainable improvement, neighborhood outreach, and variety & inclusion. Founded in 1967, Accor SA is headquartered in France and publicly listed on Euronext Paris (ISIN code: FR0000120404) and on the OTC Market (Ticker: ACCYY) within the United States. For extra data, please go to www.group.accor.com or comply with us on X, Facebook, LinkedIn, Instagram and TikTok.
Line Crieloue
Group exterior communications – Executive Director – Corporate
+33 1 45 38 18 11
Accor