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The post RevPAR up 6% in the first half compared to H1 2023: Accor appeared first on TD (Travel Daily Media) Travel Daily Media.

The first half of 2024 confirms Accor’s growth outlook, as presented at the Capital  Markets Day on June 27, 2023 and reiterated in recent earnings and revenue releases. 

Sébastien Bazin, Chairman and CEO of Accor, said: “Once again in this first half-year, Accor posted solid performances, in line with the  medium-term outlook we presented to our investors last year. This demonstrates the  strength of our model, the operational and financial discipline of our teams, and the  strong momentum of the Group and its brands.

Activity in the second quarter remained strong in all regions and for all our brands, our  pace of development accelerated and our leading position in luxury and lifestyle was  further strengthened by major partnerships. These performances enable us to raise our  RevPAR target for 2024 and to reaffirm our confidence in the Group’s strength and  ambition.

The coming weeks will also be marked by the Paris 2024 Olympic and Paralympic Games,  of which Accor is one of the partners. For this unique event, our teams, who have been  mobilised for months, will be putting their expertise, their passion for hospitality and  their generosity at the service of the Athletes’ Village, the Media Village and all visitors  to our hotels, thereby helping to raise the profile of France throughout the world.”

The Group’s diversification, both in terms of geographies and segments, plays a key role  for each of the two divisions. Demand remains generally robust and Accor has the  required exposure to capture it.

During the first half of 2024, Accor opened 146 hotels, representing 24,000 rooms, i.e.  net unit growth of 4.1% over the last 12 months. At the end of June 2024, the Group  had a hotel portfolio of 838,722 rooms (5,682 hotels) and a pipeline of 218,000 rooms  (1,297 hotels).

Second quarter 2024 RevPAR 

The Premium, Midscale and Economy (PM&E) division posted a 4% increase in  RevPAR compared to the second quarter of 2023, still mostly driven by prices rather  than by occupancy rates.

Group revenue 

For the first half of 2024, the Group recorded revenue of €2,677 million, up 11%  compared to the first half of 2023. This growth breaks down as a 4% increase for the  Premium, Midscale and Economy division and a 22% increase for the Luxury & Lifestyle  division.

Scope effects, mainly related to the takeover of Potel & Chabot (in October 2023) in the  Luxury & Lifestyle division (Hotel Assets & Other segment), contributed by €117 million.

Currency effects had a negative impact of €63 million, mainly related to the Turkish lira  (-39%), the Australian dollar (-4%), the Egyptian pound (-18%) and the Argentine peso  (-77%).

Premium, Midscale and 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 €1,473 million, up 4% compared to the first  half of 2023. This increase is broadly in line with the level of activity in the first half.

The Management & Franchise (M&F) business posted revenue of €431 million, up  7% compared to the first half of 2023 and slightly exceeding RevPAR growth during the  period (+6%).

Services to Owners revenue, which includes Sales, Marketing, Distribution and Loyalty  activities, as well as shared services and the reimbursement of hotel costs, amounted to  €538 million, up 3% compared to the first half of 2023. This increase, which was more  moderate than the change in RevPAR, reflects a base effect from the previous year,  mentioned in the first quarter revenue release, which included the re-invoicing of costs  incurred by Accor in providing supporter reception services during the soccer World Cup  in Qatar.

Hotel Assets & Other revenue was up 2% compared to the first half of 2023. This  segment, which is closely tied to activity in Australia, is affected by the current weakness  of leisure demand.

Luxury & Lifestyle revenue 

Luxury & Lifestyle, which includes fees from Management & Franchise (M&F), Services  to Owners and Hotel Assets and Other of the Group’s Luxury & Lifestyle brands,  generated revenue of €1,243 million, up 22% compared to the first half of 2023. This  increase reflects the excellent performance of this business, the increase of the fees  linked to the residential activity and a scope effect linked to the takeover of Potel &  Chabot.

The Management & Franchise (M&F) business posted revenue of €242 million, up  15% compared to the first half of 2023, driven by RevPAR growth (+7%) and the  favorable timing of fees related to the residential activity in the Lifestyle segment.

Services to Owners revenue, which includes Sales, Marketing, Distribution and Loyalty  activities, as well as shared services and the reimbursement of hotel costs, amounted to  €716 million, up 9% compared to the first half of 2023. This increase is linked to business  growth in terms of RevPAR and the number of rooms.

Hotel Assets & Other revenue was up 84% compared to the first half of 2023. This  activity includes a significant scope effect linked to the takeover of Potel & Chabot in  October 2023.

The Management & Franchise (M&F) business recorded revenue of €673 million, up  10% compared to the first half of 2023. This reflected the increase in RevPAR in the  Group’s various regions and segments (+6% compared to 2023), amplified by the  residential activity in the Lifestyle segment.

Group EBITDA 

Group EBITDA amounted to €504 million for the first half of 2024, up 13% compared  to the first half of 2023. This performance was linked to strong revenue, the operating  leverage of the M&F activity and strict cost discipline in Services to Owners, enabling the  Group to post positive EBITDA for this part of the business, as expected.

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