(Reuters) – Europe’s largest hotel group Accor reported greater than expected growth in its gross operating surplus (EBE) on Thursday, crossing the historic threshold of one billion euros for the first time, driven by solid performances across all of its markets.
The sector continues to benefit from the recovery in leisure travel after the Covid-19 pandemic and despite inflation and the resurgence of recession fears in Europe. Business travel is gradually recovering.
Furthermore, the year 2024, Accor recalls, will be rich in international events such as the Olympic Games in Paris and Euro 2024 in Germany.
On the Paris Stock Exchange, Accor shares advanced 3.6% at 08:13 GMT.
“(We had) an encouraging start to 2024 where we see both an increase in the occupancy rate and prices, which are therefore holding up, and finally a renewed confidence in our ability to generate revenue. growth and sharing it,” Chief Financial Officer Martine Gerow said on a call with reporters.
Accor, which operates in more than 110 countries, confirmed its medium-term growth outlook announced in June, including a share buyback program worth approximately 400 million euros to be launched during the year 2024.
The company also set a dividend of 1.18 euros per share.
The Middle East region continued to benefit from strong price increases thanks to leisure demand, and despite the conflict in Israel, which had very little impact on Accor’s performance in the fourth quarter, said Martine Gerow . The operator of the Ibis and Novotel brands posted a gross operating surplus up 49% to reach 1 billion euros in 2023, compared to 986 million euros expected in a survey of analysts carried out by the company. Accor’s revenue per available room (RevPAR), a key indicator of the hotel industry’s performance, jumped 23% in 2023 compared to 2022, slightly above analysts’ expectations of 22%.
(Reporting by Diana Mandiá in Gdansk; French version Stéphanie Hamel and Kate Entringer)
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