(AOF) – Accor announces revenue for the 3rd quarter of 2023 up 13% on a comparable basis to 1.28 billion euros. The hotel group displays a RevPAR (revenue per available room) “up 15% compared to last year despite a very high comparable base”, the RevPAR for the third quarter of 2022 already being up 14% compared to 2019. “The underlying dynamics observed during previous quarters continue,” explains the group, citing “average prices still high and a clearly improving occupancy rate.”
Accor emphasizes that this occupancy rate “remains slightly lower than the 2019 level”.
During the third quarter, Accor opened 73 hotels, or approximately 9,200 rooms, showing net network growth of 3% over the last 12 months. At the end of September 2023, the Group had a hotel portfolio of 812,425 rooms (5,537 hotels) and a pipeline of approximately 219,000 rooms (1,273 hotels).
For the 2023 financial year, Accor confirms its net network growth forecast of “between 2% and 3%”. The group raises its RevPAR growth forecast; now expected to be slightly above 20%, whereas it was previously expected “at the top of the range between 15% and 20%”.
The group’s gross operating surplus is now expected between 955 million euros and 985 million euros, compared to 930 million to 970 million euros previously.
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Key points
– Leading global hotel operator, created in 1967, with more than 40% of the market (excluding France, 1/3 of the market), leader in Asia-Pacific, Middle East-Africa and Latin America;
– Hotel portfolio of 5,445 hotels, or more than 802,000 rooms in 100 countries, from luxury for 26% of revenues under the brands Fairmont, Pullman, Raffles, Sofitel, etc.) to mid-range (34%) and economy Adagio, Ibis , Mercury, Novotel…;
– Activity of €4.2 billion balanced at the global level and divided into two main divisions, HôtelServices for hotels owned by franchise or by management (76%) and HôtelAssets for those owned directly (26%) as well as diversification in concierge service, luxury residence rental or digital services for hoteliers, etc.;
– Economic model based on reducing equity requirements through “asset light” – sale of properties and management control –, through loyalty and through optimization of the model;
– Capital characterized by the presence of the Chinese hotel operators Jin Jiang and Huazhu (13% and 6.2% each), the Qatari fund QiA (11.3%) and the English Kingdom Hotels (9.21%), the founders retaining 1.43% of the capital, with a board of directors of 12 members chaired by general manager Sébastien Bazin;
– Controlled financial structure with €2.8 billion in liquidity, a return to positive free self-financing of €337 million and net debt reduced to €1.7 billion and the rating raised.
Challenges
– 2023-2027 strategy with financial objectives for each division:
– “Premium, Mid & Eco” (Ibis, Novotel, Mercure, Swissôtel, Mövenpick and Pullman hotels): annual increase of 2.5 to 3.5% for the network, from 2 to 4% for RevPar, from 4 to 7% for operating profit,
– “Luxury & Lifestyle Division”, a center for luxury and lifestyle hotel brands (Ennismore, etc.): annual growth of 8 to 3.5% for the network, 3 to 5% for RevPar, 11 to 13% for Operating profit,
– for the group: annual growth of 3 to 5% for the network, 3 to 4% for RevPar and 6 to 10% for operating profit;
– Innovation strategy, Accor wanting to be a leader in “hospitality innovation”:
– 3 objectives: stimulation of internal innovation, creation of brands and concepts (greet, JO&JOE, Le Loft, Flying Nest, Emblems), expansion of expertise (D-Edge),
– Innovation lab: marketing, digital and e-commerce, hotel transformation
– partnership logic: start-ups, large groups and more than 200 schools (e.g.: flow prediction and waste reduction in restaurants, baggage check-in in hotels, etc.);
– “Planet 21” environmental strategy of 0 carbon in 2050 for Accor hotels:
– 2025 milestone plan: reduction of 25.2% in internal gas emissions and 15% in those of suppliers,
– elimination of single-use plastics, “green loan”;
Challenges
– Evolution of RevPar, indicator of hotel activity, higher than its 2019 level;
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Strong exposure to Europe which contributes almost 40% of operating profit;
– Faced with inflation, effectiveness of the RESET plan for recurring cost savings -€200 million per year, reinforced by an energy savings plan in hotels;
– 2023 objectives raised: growth of 15 to 22% in RevPar and almost treble in gross operating surplus from €920 to €9,600 million
;
– Return of the dividend, up to €1.05, accompanied by an exceptional dividend of €0.34.
Find out more about the “hospitality and leisure” sector
Global tourism still on the rise
Over the first nine months of 2022, 700 million tourists traveled internationally, more than double (+133%) the figure recorded for the same period in 2021. This figure reached 63% of 2019 levels , which should allow the sector to reach 65% of its pre-pandemic levels in 2022. This result is due to a high level of demand and the gradual lifting of restrictions in a large number of countries. Europe is significantly supporting this rebound with the arrival of 477 million people between January and September 2022 (68% of the global total), reaching 81% of the pre-covid level. Tourism there is driven by strong intra-regional demand and travel from the United States. Some destinations saw notable increases in revenue, including Serbia, Romania, Turkey, Latvia, Portugal, Pakistan, Mexico, Morocco and France.