Accor's H1 2024 Results: Strong Revenue

Accor's performance in the first half of 2024 aligns with its growth targets, showcasing strong results. Revenue per available room (RevPAR) increased by 6% compared to the first half of 2023. Net unit growth accelerated to 4.1% over the past 12 months. Revenue grew by 11% to €2,677 million, and EBITDA rose by 13% to €504 million. Earnings per share increased by 11% to €0.90.

Sébastien Bazin, Chairman and CEO of Accor, emphasized the company's robust performance and the effectiveness of their operational and financial strategies. He highlighted the strong activity in all regions and brands, which has led to an upward revision of the RevPAR target for 2024. Bazin also noted the upcoming Paris 2024 Olympic and Paralympic Games, where Accor, as a partner, will showcase its hospitality expertise.

In the first half of 2024, Accor opened 146 hotels, adding 24,000 rooms, resulting in a net unit growth of 4.1%. By the end of June 2024, Accor's portfolio included 5,682 hotels with 838,722 rooms, and a pipeline of 1,297 hotels with 218,000 rooms.

RevPAR in the Premium, Midscale, and Economy (PM&E) division increased by 4% in the second quarter of 2024 compared to the same period in 2023. Growth was driven mainly by price increases rather than occupancy rates. In the Europe North Africa (ENA) region, RevPAR rose by 1%, with the UK and Germany showing positive growth. The Middle East, Africa, and Asia-Pacific region saw a 7% increase in RevPAR, with strong performances in the UAE and Saudi Arabia. The Americas region, led by Brazil, recorded a 12% RevPAR growth.

The Luxury & Lifestyle (L&L) division posted an 8% increase in RevPAR, driven by higher occupancy rates and price increases in lifestyle resorts, particularly in Turkey, Egypt, and the UAE.

Overall, Accor's revenue for the first half of 2024 was €2,677 million, up 11% from the first half of 2023. The Luxury & Lifestyle division saw a 22% revenue increase, partly due to the acquisition of Potel & Chabot. Despite some negative currency effects, the Group's EBITDA rose to €504 million, reflecting a 13% increase.

Accor's financial performance was also marked by a 13% increase in EBITDA in the Luxury & Lifestyle division. Net profit for the Group amounted to €253 million, slightly up from €248 million in the first half of 2023.

Looking forward, Accor aims for a RevPAR growth of 4-5% and network unit growth of 3-4% for the full year 2024. The Group remains confident in its medium-term outlook, projecting annual RevPAR growth of 3-4% and EBITDA growth of 9-12% from 2023 to 2027.

Key events in the first half of 2024 included the sale of Accor Vacation Club, a global revenue management partnership with IDeaS, a successful €600 million bond issue, and the acquisition of a 51% stake in Rikas Restaurants Management LLC. Additionally, Accor completed a €400 million share buyback program and announced a strategic partnership with LVMH for the Orient Express brand.

At the end of June 2024, Accor had a liquidity position of €1.9 billion, including a €1 billion undrawn revolving credit line. The Group's average cost of debt was 2.6% with an average maturity of 3.5 years.

Source: ACCOR