Third quarter earnings reflected sales growth due to the impact of the Paris Olympics.
PARIS – Accor reports 3Q24 earnings with 12% year-on-year revenue growth, led by 18% growth in Luxury & Lifestyle and 7% growth in Premium, Midscale & Economy (PM&E) I was proud of that.
Accor opened 47 hotels (8,000 rooms) during the quarter. This represents a net network growth of 3.2% over the past 12 months. At the end of September 2024, the Group’s hotel portfolio consisted of 838,826 rooms (5,638 hotels) and a pipeline of 231,00 rooms (1,380 hotels). The company’s pipeline is up 6% compared to the end of Q2 ’24.
RevPAR increased 5.3% compared to Q3 2023, with the PM&E segment reporting a 5% year-over-year increase and the Luxury & Lifestyle segment reporting a 7% increase driven by occupancy.
Looking ahead, Accor said it expects full-year RevPAR growth of 4% to 5%, net unit growth of 3% to 4%, and a positive contribution to EBITDA from owner services.
Accor has also revised upward its Group EBITDA guidance, which is now expected to be between €1.125 billion and €1.125 billion.
Accor Chairman and CEO Sébastien Bazin said: “The Group once again recorded strong sales growth in line with our targets this quarter.” “This strong performance was driven in particular by the dynamism of our luxury and lifestyle brands, sustained growth in high-potential regions and the positive impact of the Olympic Games in France, where Accor was one of our premium partners. We are confident that our continued combination of operational agility, quality of execution and financial discipline will strengthen the strength of our business model over the long term and enable us to deliver significant performance growth in 2024. I’m doing it. ”
PM&E performance
Although RevPAR growth is normalizing, Accor said it continues to benefit from geographic and segment diversification.
For PM&E brands, Europe, North Africa experienced a 6% RevPAR increase compared to Q3 2023. The UK recorded slightly positive RevPAR growth in line with the previous quarter, with London and regional areas seeing similar performance. Throughout the summer, RevPAR growth in Germany was stronger than in the two countries mentioned above.
The Middle East, Africa and Asia Pacific region had contrasting country performance, with RevPAR increasing by 1% compared to Q3 2023.
Southeast Asia was the region where RevPAR saw the most growth driven by international demand, including China.
The Middle East and Africa were adversely affected by the timing of religious pilgrimages, including the Hajj, and the delay in the start of Umrah in Saudi Arabia. In addition to this, five hotels in Dubai, which were closed after the April floods, have been reopened in a phased manner. Despite this, Accor said that activity is gradually improving each month.
In the Pacific region, RevPAR growth was flat due to slower economic growth and weaker consumer confidence.
RevPAR change was negative in China, which accounts for 21% of the region’s room revenue.
The Americas region, primarily reflecting Brazil’s performance (60% of the region’s room revenue), recorded an increase in RevPAR due to strong demand, particularly from business customers and events in São Paulo.
Luxury & Lifestyle
The Luxury & Lifestyle segment increased RevPAR by 7% compared to Q3 2023, primarily due to higher occupancy rates.
The luxury segment, which represents 73% of the segment’s room revenue, reported a 5% increase in RevPAR compared to Q3 2023. This performance is driven by all brands and reflects different trends observed in the PM&E market, but at a slight premium. .
The Lifestyle segment reported a 14% increase in RevPAR compared to Q3 2023. This was once again driven by resort hotels, particularly in Türkiye and Egypt.
