-Results above forecasts for 2023, confidence in growth prospects for 2024
Driven by solid demand in 2023, Accor managed to set new records in terms of operational and financial performance. All regions and segments enjoyed strong growth thereafter in 2022, a year marked as a recovery year after the Covid pandemic. All performance metrics were in line with or exceeded the Group’s 2023 guidance.
This solid performance and the Group’s confidence in its continued business growth enabled it to return a total of €676 million to its shareholders during the year.
In 2023, Accor opened 291 hotels, representing 41,000 rooms, a net network growth of 2.4% over the last 12 months. At the end of December 2023, the Group had a portfolio of 821,518 rooms (5,584 hotels) and 225,000 rooms in the pipeline (1,315 hotels).
Fourth quarter RevPAR
The Premium, Midscale and Economy (PM&E) segment increased its RevPAR by 12% compared to the fourth quarter of 2022, driven more by pricing and less by occupancy growth.
- The Europe and North Africa (ENA) region grew RevPAR by 8% compared to the fourth quarter of 2022.
- In France, which accounts for 43% of room revenue for the entire region, RevPAR growth stabilized. The Paris region has been adversely impacted by an agenda of events not held in 2023 such as the Paris Motor Show, SIAL food show and SIMA Agriculture show. The provinces continued to enjoy stable business levels.
- The UK, which accounts for 13% of the region’s room revenue, saw stable and balanced growth in RevPAR between London and other cities.
- In Germany, which accounts for 14% of the region’s room revenue, RevPAR continued to improve compared to previous quarters, mainly driven by Christmas shopping. However, occupancy rates still have strong upside potential. Indeed, they remain significantly behind pre-crisis levels.
- The Middle East, Africa and Asia-Pacific region reported a 19% increase in RevPAR compared to the fourth quarter of 2022, benefiting from a significant business recovery in Asia.
- Middle East and Africa, 26% of the region’s room revenue, continued to implement strong rate increases boosted by solid demand in the Leisure segment despite the conflicts in Israel.
- Southeast Asia, 29% of the region’s room revenue, delivered RevPAR growth comparable to the Middle East, mainly driven by pricing and supported by demand in the Leisure segment.
- The Pacific, 26% of the region’s room revenue, is now entering a normalization phase with more measurable RevPAR growth, driven by occupancy rates in the fourth quarter.
- In China, 19% of the region’s room revenue, the recovery continued with remarkable RevPAR growth compared to the fourth quarter of 2022. Business activity is now slightly above the levels seen in 2019, as was the case in the third quarter.
- The Americas region, which mainly reflects Brazil’s performance (65% of the region’s room revenue), reported a 15% increase in RevPAR compared to the fourth quarter of 2022. Business activity continued to benefit from price increases, supported by conferences and events that took place during this period.
The Luxury & Lifestyle (L&L) segment reported an 8% increase in RevPAR compared to the fourth quarter of 2022, mainly due to higher occupancy rates.
The Luxury segment, which accounts for 77% of the segment’s room revenue, saw a 10% increase in RevPAR compared to the fourth quarter of 2022. This increase came from the Asia-Pacific region where growth was strong. Although occupancy rates have clearly improved, they are still 5 points below pre-crisis levels.
Lifestyle RevPAR was stable compared to the fourth quarter of 2022. The faster recovery in this segment in 2022 led to a less favourable base of comparison, boosted by the FIFA World Cup held in Qatar in the fourth quarter of 2022. Adjusted from this event, RevPAR in the Lifestyle segment grew 6% during the quarter.
Consolidated revenue
The Group recorded revenues of €5,056m. in 2023 increased by 18% in like-for-like (LFL) level compared to 2022. This growth breaks down to 17% growth for the Premium, Midscale & Economy Segment and 22% for the Luxury & Lifestyle segment.
Scope effects, mainly linked to the full-year impact of the Paris Society (acquired in 2022) and the acquisition of Potel & Chabot (in October 2023) in the Luxury & Lifestyle segment (the Hotel Assets &Other segment), contributed positively for €285 million.
The effects of exchange differences had a negative impact of €228m, mainly stemming from the Australian dollar (-7%), the Egyptian pound (-40%) and the Turkish lira (-32%).
Sébastien Bazin, Chairman & Chief Executive Officer of Accor, said: “Accor delivered record results in 2023, with EBITDA breaking the €1 billion mark. euro for the first time in its history. Although there were many reasons for this success, the good performances are due above all to the teams in the Group. I would like to thank them for their commitment and expertise in an industry whose strength lies above all in female and male employees, who raise the profile of our brands every day with a passionate and generous sense of hospitality.
Over the past year, the Group has achieved growth in all segments and regions, reflecting the strength of its asset light model, the effectiveness of its organization based on two segments, Premium, Midscale and Economy on the one hand, and Luxury and Lifestyle on the other, the desirability of its brands, the power of distribution and engagement tools, as well as his financial discipline.
While the geopolitical backdrop remains complex, 2024 is expected to be rich in major international events that should continue to fuel growth, and we start this new year with confidence. Accor is ideally positioned to continue its strong expansion and bring to life its vision of an innovative, responsible hospitality industry that creates value for its shareholders and partners.”
