(AOF) – For the third quarter of 2022, Accor recorded revenue of 1.15 billion euros, up 83% at constant scope and exchange rates. Revenue is up 9% on the same basis compared to the third quarter of 2019. It jumped 95% on a reported basis. The group’s RevPAR, or revenue per available room (key indicator for the sector) shows an overall increase of 14% in the third quarter of 2022 compared to the third quarter of 2019.
Sébastien Bazin, Chairman and Chief Executive Officer 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 whose activity is now restarting, all geographies are growing compared to 2019 “.
Regarding its outlook, Accor is now confident in its ability to reach the upper end of its EBITDA target of 610 and 640 million euros for the year.
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Key points
– World’s leading 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 5,300 hotels, i.e. 778,000 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, Mercure , Novotel…;
– Activity of €2.2 billion balanced worldwide and divided into two main divisions, HotelServices for hotels owned under franchise or by management (72%) and HotelAssets for those owned as well as diversification in concierge services, rental of luxury residences or digital services for hoteliers, etc.;
– Economic model based on the reduction of capital requirements by “asset light” – sale of buildings and management control, by building loyalty and optimizing 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 12-member board of directors chaired by managing director Sébastien Bazin;
– Controlled financial structure with €2.5 billion in cash compared to €2 billion in net debt at the end of June.
Challenges
– Simplification of the organization into two divisions: “Economy, Midscale & Premium Division”, hotel division bringing together the brands Ibis, Novotel, Mercure, Swissôtel, Mövenpick and Pullman / “Luxury & Lifestyle Division”, division bringing together the luxury hotel brands / and Ennismore, the Group’s Lifestyle entity;
– RESET strategy for recurring cost savings -€200m per year;
– Innovation strategy in the service of augmented hospitality ALL-Accor Live Limitless with a single platform concentrating the group’s offers, exploiting personal and commercial data to build customer loyalty;
– “Planet 21” environmental strategy of net zero carbon by 2050 for all hotels under the Accor brand: 2025 stage plan: reduction of 25.2% of internal gas emissions and 15% of scope 3 emissions, elimination of single-use plastics, audit of 1/3 of suppliers, launch of the 1
er
“green loan”, a strategy for integrating hotels into their local fabric in order to reduce the negative impact of the decline in business travel;
– Benefits of the strategic partnership with the Chinese Huazhu Hotels Group, aimed at strengthening the Ibis, Mercure and Novotel brands in China, Taiwan and Mongolia;
– Continued balance sheet reduction by sale of the head office in Paris, for €465 million;
– Acceleration of diversification in “lifestyle”, notably with Ennismore, held at 62.2%.
Challenges
– Confirmation of the rise in RevPar (indicator of hotel activity) which exceeded on the 2
n/a
semester its level of 2019;
– Strong exposure to Europe, which contributes nearly 40% of operating profit, and expectation that China and South-East Asia will catch up;
– Faced with inflation, effectiveness of the RESET plan for recurring cost savings -€200 million per year, reinforced in the fall by an energy savings plan in hotels;
– After a doubling of turnover and a return to profitability, operating and net, on 1
er
semester, 2022 objectives, raised, of a 3.5% growth of the network and a more than doubling of the gross operating surplus between 610 and 640 M€.
Out of the crisis for the cruise
The recovery is tangible in Europe. MSC Cruises, the leading European company, resumed operation of its entire fleet in June, i.e. 19 cruise ships – including 14 in the Mediterranean. Similarly, the Costa group, a subsidiary of the American cruise giant Carnival, should operate all of its liners (24 in number) by the end of the year. On the other hand, China remains on the sidelines of the general movement, due to its extremely restrictive health policy. The Cruise Lines International Association (CLIA) expects the industry to return to its 2019 record traffic of a total of 32 million cruise passengers by the end of 2023.