Accor: confident in its ability to reach the upper end of its EBITDA target

( — The third quarter of 2022 confirmed the marked improvement in activity observed since the start of the year, reports the group. Accor. For the second consecutive quarter, RevPAR is above its 2019 level and now only Asia is posting a performance below its pre-crisis level. Demand from domestic and international leisure customers was very strong during the summer, leading to a significant rise in prices, and the month of September benefited from the return of business customers during major shows and fairs.

During the third quarter of 2022, Accor opened 93 hotels corresponding to 15,300 rooms, representing net network growth of +2.4% over the last 12 months. This is a marked acceleration in the pace of room openings compared to the first half of 2022. At the end of September 2022, the Group had a hotel portfolio of 789,152 rooms (5,357 hotels) and a pipeline of 212,000 rooms (1,218 hotels).
For the 2022 financial year, the Group confirms its net network growth forecast of around 3.5%.

For the third quarter of 2022, the Accor group recorded revenue of 1,149 million euros, up 83% at constant scope and exchange rates (lcc) compared to the third quarter of 2021. By activity, this increase is broken down into an increase of 84% for HotelServices and 80% for Hotel Assets & Other. For the sake of comparison with RevPAR (given as a change compared to 2019 throughout this press release), revenue is up +9% LFL compared to the third quarter of 2019.

Scope effects, mainly related to the consolidation of Ennismore and the reopening of Pullman Montparnasse, contributed positively for 14 million euros.
Currency effects had a positive impact of 60 million euros, mainly linked to the US dollar (-14%).

2022 EBITDA target

The positive impact of the marketing and sales investments made in the first half, the maintenance of strict discipline on the cost base and the strong dynamism of the activity enabled the Group, on September 28, to raise its objective of EBITDA for the 2022 financial year. It was initially announced above 550 million euros and is then expected between 610 and 640 million euros. The group is now confident in its ability to reach the top end of this EBITDA target for the year.

Sébastien Bazin, Chairman and CEO of Accor, said: “Business momentum remained very strong in this quarter, during which the Group’s RevPAR and revenue significantly exceeded 2019 levels. Asia-Pacific, where activity is now restarting, all geographic areas are growing compared to 2019. These solid performances combined with strict operational and financial discipline allow us to be confident in our ability to reach the upper range of our objective. EBITDA for the year, which should be between 610 and 640 million euros.”

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