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Accor bucks trend with positive RevPAR gains, but acknowledges tough operating climate

  • David Eisen
  • 31 July 2025
  • 4 minute read
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This article was written by HotelsMag. Click here to read the original article

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Paris-based Accor posted a RevPAR increase of 4.6% in the first half of 2025 and for the full year is reaffirming its RevPAR, network and EBITDA targets, according to Sébastien Bazin, the group’s chairman and CEO. In Q2, RevPAR rose 4.1%, missing expectations of 4.7%.

“In the first half of 2025, the group once again posted strong momentum despite a complex geopolitical environment and the impact of exchange rates,” he said. “This solid performance confirms the quality of our brand portfolio and the relevance of our diversified geographic presence, and is the result of the operational and financial discipline that the group implements quarter after quarter.”

Hilton and Wyndham Hotels & Resorts previously reported negative RevPAR growth in their second quarters. (EU-based companies, like Accor and IHG Hotels & Resorts, operating on regulated markets are only mandated to report on a semi-annual basis.)

Michael Bellisario, a senior research analyst who covers hospitality for Robert W. Baird & Co, said the RevPAR differential between Accor and the likes of Hilton and Wyndham is because of U.S. exposure, which Accor has less of.

Accor maintained its full-year 2025 guidance, including RevPAR growth of 3% to 4%.

Accor’s Luxury & Lifestyle (L&L) division led the way, posting a 7% increase in RevPAR in the second quarter compared to the same time a year ago, driven by both rate and and occupancy. Brands within the division include Fairmont, Raffles and Sofitel (luxury) and Hoxton, SLS, Mama Shelter (lifestyle).

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Luxury accounts for 72% of the division’s room revenue, noted Accor, and posted a 3% increase in RevPAR compared with the second quarter of 2024. Lifestyle notched a 12% increase in RevPAR compared with the second quarter of 2024. Resort hotels continued to perform well during the quarter, particularly in Turkey, Egypt and the United Arab Emirates.

RevPAR growth in the segment was strong across all brands and regions and outperformed Accor’s Premium, Midscale and Economy (PM&E) segment in comparable areas. The division posted a 2.9% increase in RevPAR compared with the second quarter of 2024. Three-quarters of this increase in RevPAR was driven by prices and one-quarter by occupancy rates, Accor saud.

The Europe North Africa (ENA) region posted a 3.3% increase in RevPAR compared with the second quarter of 2024, driven by higher occupancy rates. The sequential improvement of 2.7% points compared to the first quarter was driven primarily by France, which accounts for 43% of the region’s room revenue. The Paris region benefited from a favorable comparison due to the pre-Olympic Games impact in June 2024 and from strong tourist traffic. The performance in the provinces was more moderate, with RevPAR returning to slightly positive growth in the second quarter of 2025.

The UK, which accounts for 11% of the region’s room revenue, struggled with both London and the provinces continuing to record a decline in RevPAR in the second quarter, which Accor said was “due to weak confidence among economic agents about the country’s situation.”

In Germany, which accounts for 12% of the region’s room revenue, the RevPAR variation was negative in the second quarter due to a highly unfavorable comparison basis in June 2024 linked to the 2024 European Football Championship.

The Middle East, Africa and Asia-Pacific region posted a 1.2% increase in RevPAR compared with the second quarter of 2024. This RevPAR growth was driven solely by prices, which offset a slight decline in occupancy rates.

In the Middle East-Africa region, which accounts for 27% of the region’s room revenue, RevPAR trends were mixed: the United Arab Emirates posted double-digit growth despite some cancellations linked to tensions in Iran. However, the timing of Ramadan and stricter entry rules for the Hajj pilgrimage had a negative impact on Saudi Arabia.

Southeast Asia, which accounts for 31% of the region’s room revenue, posted resilient RevPAR growth despite lower tourist arrivals from China due to security concerns in Thailand and the slowdown in the Indonesian economy following government budget restrictions.

The Pacific, which accounts for 24% of the region’s room revenue, posted a strong rebound in the second quarter, particularly after the impact of Tropical Storm Alfred, which affected the Queensland region of Australia in March.

In China, which accounts for 18% of the region’s room revenue, the RevPAR variation remained negative with no significant improvement in the country’s economy.

The Americas region, which mainly reflects the performance of Brazil (62% of the region’s room revenue), delivered a 1% increase in RevPAR compared with the second quarter of 2024.

Accor opened 117 hotels totaling around 15,000 rooms in the first half of the year, which accounted for YOY net-unit growth of 1.9%.

Revenue grew 5.1% in the first half 2025. Net profit for the period came in at €233 million.

Bazin said that the group will continue its shareholder return policy by launching the second tranche of its share buyback program.

Please click here to access the full original article.

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