Accor reported Q1 2025 results.
Highlights include:
- Revenue up 9.2 percent to €1,349 million
- RevPAR up 5 percent versus Q1 2024
- Pipeline up 4.9 percent over the last 12 months
Sébastien Bazin, chairman and CEO of Accor, said, “Accor has once again posted dynamic growth in its business this quarter, driven by continued strong demand. Our diversified geographic positioning and leadership in the most promising markets, combined with the strength of our attractive and distinctive brands, enable us to continue to grow in a more volatile geopolitical and economic environment. In this context, while maintaining strong operational discipline, we are pursuing our strategy of development and value creation and are confident in our ability to continue improving our performance.”
In a volatile political and consumer environment, the global demand in the hospitality sector remained sustained during the first quarter of 2025. The diversification of the hotel portfolio, in terms of geography and segments, enables the Group to report encouraging performances, although subject to the uncertainties of the economic environment.
In the first quarter of 2025, Accor opened 45 hotels corresponding to more than 5,900 rooms, representing a net unit growth of 2.7 percent over the last twelve months, which should accelerate from the start of the second half of 2025. At the end of March 2025, the Group had a hotel network of 847,290 rooms (5,695 hotels) and a pipeline of more than 235,000 rooms (1,388 hotels).
First-quarter 2025 RevPAR
The Premium, Midscale and Economy (PM&E) division posted a 3.4 percent increase in RevPAR compared with the first quarter of 2024, driven 90 percent by prices and 10 percent by the occupancy rate.
- The Europe North Africa (ENA) region posted a 0.6 percent increase in RevPAR compared with the first quarter of 2024, driven by higher occupancy rates. Depending on the country, the region’s performance shows contrasting trends.
- In France, which accounts for 44 percent of the region’s hotel room revenue, RevPAR declined slightly in both Paris and the provinces in the first quarter due to a weak month of March, affected by an unfavorable calendar effect.
- In the United Kingdom, which accounts for 13 percent of the region’s hotel room revenue, both London and the provinces recorded a decline in RevPAR, which is linked to weak confidence in the country’s economic situation.
- In Germany, which accounts for 12 percent of the region’s hotel room revenue, RevPAR growth was moderate at the beginning of the period before accelerating thanks to a more favorable trade fair calendar.
- The Middle East, Africa and Asia-Pacific region posted a 4.6 percent increase in RevPAR compared with the first quarter of 2024. This increase in RevPAR was driven by prices.
- In the Middle East-Africa region, which accounts for 28 percent of the region’s hotel room revenue, RevPAR growth was sustained, mainly driven by prices, particularly in Saudi Arabia thanks to the Ramadan festivities, which took place entirely during the first quarter of 2025.
- Southeast Asia, which accounts for 32 percent of the region’s hotel room revenue, posted sustained RevPAR growth thanks to strong performance in Thailand and despite an unfavorable comparison base for Singapore, which hosted several Taylor Swift concerts in March 2024.
- The Pacific, which accounts for 24 percent of the region’s hotel room revenue, posted sluggish RevPAR growth, mainly due to Tropical Storm Alfred, which hit the coastal area of southern Queensland, Australia, in early March 2025.
- In China, which accounts for 16 percent of the region’s hotel room revenue, RevPAR variation remains negative, with the recovery in tourist flows appearing to mainly benefit overseas tourism, particularly in Southeast Asia.
- The Americas region, which mainly reflects the performance of Brazil (62 percent of the region’s hotel room revenue), posted a 13.1 percent increase in RevPAR compared with the first quarter of 2024.
- Brazil continued to record strong RevPAR growth thanks to higher occupancy rates and prices, supported by a solid event calendar.
The Luxury & Lifestyle (L&L) division posted RevPAR up 8.3 percent compared with the first quarter of 2024, driven by prices and occupancy rates, which contributed two-thirds and one-third, respectively. All brands in the Luxury & Lifestyle division outperformed the PM&E division in comparable areas, demonstrating the resilience of this segment.
- Luxury, which accounts for 75 percent of the division’s hotel revenue, posted a 9.0 percent increase in RevPAR compared with the first quarter of 2024. International tourism flows continue to contribute to the strong performance of the Luxury market.
- Lifestyle posted a 6.3 percent increase in RevPAR compared with the first quarter of 2024. The resort hotels segment once again recorded a solid quarter in Turkey, Egypt, and the United Arab Emirates. Strong demand was reflected in particular in a continued improvement in occupancy rates.
Group revenue
For the first quarter of 2025, the Group recorded revenue of €1,349 million, up 9.2 percent compared with the first quarter of 2024. This growth breaks down as a 1.8 percent increase for the Premium, Midscale and Economy division and a 17.9 percent increase for the Luxury & Lifestyle division.
Scope effects, mainly linked to the full-year effect of Rikas (acquired in March 2024) in the Luxury & Lifestyle division (the Hotel Assets & Other activity), positively contributed for €28 million.
Currency effects had a negative impact of €9 million, mainly due to the depreciation of the Egyptian pound ((29) percent) and the Brazilian real ((13) percent), and partially offset by the strengthening of the US dollar (up 4 percent).
Premium, Midscale & Economy revenue
Premium, Midscale and Economy, which includes fees from Management & Franchise (M&F), Services to Owners and Hotel Assets & Other of the Group’s Premium, Midscale and Economy brands, generated revenue of €703 million, up 1.8 percent compared with the first quarter of 2024.
The Management & Franchise (M&F) revenue stood at €200 million, up 3.9 percent compared with the first quarter of 2024, slightly above the RevPAR growth (up 3.4 percent).
Services to Owners revenue, which include Sales, Marketing, Distribution and Loyalty division, as well as shared services and reimbursement of costs incurred on behalf of hotel owners, totaled €266 million, up 5.4 percent compared with the first quarter of 2024. This increase, stronger than the change in RevPAR, reflects an improvement in our distribution channel mix.
Hotel Assets & Other revenue was down 3.5 percent compared with the first quarter of 2024. This activity is strongly linked to business in Australia and Brazil. The East coast of Australia, where most of the hotel assets are located, was hit by Tropical Storm Alfred in early March. The strong growth in RevPAR in Brazil mentioned above is not reflected in revenue due to negative exchange rate fluctuations.
Luxury & Lifestyle revenue
Luxury & Lifestyle, which includes fees from Management & Franchise (M&F), Services to Owners and Hotel Assets & Other activities of the Group’s Luxury & Lifestyle brands, generated revenue of €668 million, up 17.9 percent compared with the first quarter of 2024.
The Management & Franchise (M&F) revenue stood at €122 million, up 19.6 percent compared with the first quarter of 2024, driven by the change in RevPAR (up 8.3 percent), incentives fees and network growth in Lifestyle.
Services to Owners revenue, which include Sales, Marketing, Distribution and Loyalty division, as well as shared services and reimbursement of costs incurred on behalf of hotel owners, totaled €397 million, up 14.6 percent compared with the first quarter of 2024, driven by an improvement in the contribution of the loyalty program.
Hotel Assets & Other revenue was up 25.9 percent compared with the first quarter of 2024. This activity includes a significant scope effect linked to the acquisition of Rikas (in March 2024) and the opening of new restaurants by Paris Society over the last twelve months.
Management & Franchise revenue
Management & Franchise (M&F) revenue came to €321 million, up 9.3 percent compared with the first quarter of 2024.
The PM&E division posted M&F revenue up 3.9 percent, in line with RevPAR growth over the period (up 3.4 percent). However, there were some distortions in the analysis by region.
- In the ENA region, the slight decline in M&F revenue mainly reflects the conversion of a limited number of management contracts into franchise contracts. This was anticipated in the mid-term projections provided in June 2023, with most of the impact now expected in 2025. The required adjustments to the cost base have been identified and are being actioned to offset the c.2 percent M&F revenue impact on PM&E division.
- In the MEA APAC region, solid revenue growth mainly reflects the robust activity and a slightly favorable base effect on incentive fees compared to the first quarter of 2024.
- In the Americas region, the very solid activity level is not reflected in revenue which is impacted by the negative exchange rate variance and a negative base effect related to the recognition of a contract termination indemnity in Brazil in the first quarter of 2024.
The L&L division posted a 19.6 percent increase in M&F revenue, supported by strong growth in RevPAR (up 8.3 percent), incentives fees and network growth in Lifestyle.
Return to shareholders
During the publication of its 2024 annual results on February 20, 2025, Accor announced the implementation of a €440 million share buyback program in 2025. In this context, the Group announced on March 6, 2025, the launch of the first tranche of this share buyback program for an amount of €200 million.
