Accor posted a strong H1 performance, with revenue soaring 11% to €2,677 million ($2,903.05 million) and RevPAR up 6%. The performance aligns with the medium-term outlook Accor presented last year, Accor’s Chairman and CEO Sébastien Bazin said in a statement.
The growth was propelled by a 4% increase in the premium, midscale and economy division (compared to Q2 2023) and a 22% surge in the luxury and lifestyle division (compared to H1 2023).
Activity in the second quarter was robust across all regions and for all its brands, the France-based lodging company said. These performances help the group to raise its RevPAR target for the year, Bazin said.
Revenue generated by the premium, midscale and economy division saw a 4% rise from H1 2023 to €1,473 million ($1,597.38 million). The increase is largely in line with the activity level in the first half.
The impressive performance of the luxury and lifestyle segment, increase of fees linked to the residential activity and a scope effect linked to the takeover of Potel & Chabot saw the luxury and lifestyle segment generating revenue of €1,243 million ($1,347.96 million).
Scope effects, primarily related to the takeover of Potel & Chabot in October 2023 in the luxury and lifestyle division, contributed €117 million ($126.87 million).
Group EBITDA soared 13% from H1 2023 to €504 million ($546.55 million), driven by robust revenue, the operating leverage of the M&F activity and strict cost discipline in services to owners. The negative impacts of the Turkish lira (-39%), the Australian dollar (-4%), the Egyptian pound (-18%) and the Argentine peso (-77%) resulted in a negative impact of €63 million ($68.31 million).
In the first half of the year, Accor opened 146 hotels totaling 24,000 rooms, posting net unit growth of 4.1% over the last 12 months. By the end of June, Accor’s total portfolio included 5,682 hotels, representing 838,722 rooms, and a pipeline of 1,297 properties (totaling 218,000 rooms).
For FY 2024, Accor expects RevPAR to grow between 4% and 5%, while EBITDA is expected to range between €1,095 million ($1,187.46 million) and €1,125 million ($1,220 million). The company anticipates a positive contribution of EBITDA by services to owners.
