Sustained activity growth helped Accor post “solid” numbers for Q3 2024, with revenue surging 12% to touch €1,434 million. While RevPAR growth is normalizing, Accor continues to benefit from its diverse portfolio across regions and segments.
The group’s sales growth was in line with its targets, driven mostly by the luxury and lifestyle brand category, sustained growth in high-potential markets and the positive impact in France of the Olympic Games, Accor Chairman and CEO Sébastien Bazin said in a statement.
During the third quarter, Accor opened 47 hotels, representing 8,000 rooms, i.e. net unit growth of 3.2% over the last 12 months. At the end of September 2024, the Group had a hotel portfolio of 838,826 rooms (5,638 hotels) and a pipeline of 231,000 rooms (1,380 hotels).
“By continuing to combine operational agility, quality of execution and financial discipline, we are convinced of our ability to consolidate the solidity of our business model over the long term and deliver significant growth in our results in 2024.”
Looking ahead, Accor expects RevPAR to grow between 4% and 5%, with net unit growth rising 3%-4%, while group EBITDA is expected to range between €1,100 million and €1,125 million.
RevPAR
The premium, midscale and economy (PM&E) division posted a 5% increase in RevPAR from Q3 2023, still primarily fueled by prices than occupancy rates.
The Europe North Africa region posted a 6% increase in RevPAR versus the third quarter of 2023. Benefitting from the Paris Olympics, France constituted 45% of room revenue for the hotels in the region. While business was strong in summer, performance in September was impacted by a steep comparison basis linked to the Rugby World Cup held in September and October 2023.
RevPAR in the Middle East and Africa region represented 20% of room revenue for hotels in the region and was affected by the timing of religious pilgrimages. The gradual opening of five hotels in Dubai had to closed due to the floods in April.
In the Americas, which mostly reflects the performance of Brazil (60% of the region’s room revenue), saw an uptick in RevPAR driven by robust demand, mostly from business customers and events in Sao Paulo.
The luxury and lifestyle division’s RevPAR improved by 7% compared to the same period in 2023, primarily driven by higher occupancy rate. Accounting for 73% of the division’s room revenue, the luxury segment reported a 5% increase in RevPAR from Q3 2023. The lifestyle division reported RevPAR growth of 14%, helped by resort hotels in Turkey and Egypt.
Revenue
The PM&E category generated revenue of €821 million, surging by 7% compared to Q3 2023.
The luxury and lifestyle division’s revenue climbed 18% to total €635 million. This increase reflects the stellar performance of this business and a scope effect linked to the acquisition of Potel & Chabot.
