Accor’s Third-Quarter 2024 Performance: Strong Growth Fueled by Strategic Diversity

Accor’s third-quarter 2024 results reflect sustained growth and adaptability across diverse markets and segments, bolstered by strategic geographic reach and an expanding Luxury & Lifestyle division. While revenue per available room (RevPAR) growth begins to stabilize, Accor’s commitment to premium experiences and strong operational fundamentals is propelling it forward. The Group recorded €1.434 billion in revenue, a 12% increase from the same quarter in 2023, with the Luxury & Lifestyle segment contributing an impressive 18% boost, underscoring its significance in Accor’s overall portfolio.

CEO’s Perspective on Accor’s Growth Momentum

Sébastien Bazin, Chairman and CEO of Accor, noted that the Group’s “solid sales growth” aligns well with its strategic goals. The strong showing is attributed to the Luxury & Lifestyle division’s growth, momentum in high-potential regions, and the positive impact of Accor’s involvement as a Premium partner in the Paris Olympic Games. By balancing agile operations, disciplined financial management, and a customer-centric approach, Bazin expressed confidence in the Group’s potential for continued long-term growth.

Expansion Highlights: New Hotels and Future Pipeline

During the third quarter, Accor added 47 hotels, representing over 8,000 rooms, marking a 3.2% year-over-year net unit growth. As of September 2024, Accor’s global portfolio encompasses 838,826 rooms across 5,638 hotels, with an additional 231,000 rooms in the pipeline. The expansion underlines Accor’s strategic approach to meeting rising global demand, particularly in high-growth regions, while strengthening its offerings in both budget and premium segments.

Division Performance: Premium, Midscale & Economy (PM&E) and Luxury & Lifestyle (L&L)

Premium, Midscale & Economy (PM&E): Accor’s PM&E division achieved a 5% year-over-year RevPAR increase, primarily through rate increases, highlighting the resilience of budget and midscale brands amid fluctuating economic conditions. Within the Europe North Africa (ENA) region, strong RevPAR growth was particularly notable in France, where the Paris Olympics fueled tourism. Although London and German markets exhibited steady growth, France led with increased bookings in Paris, which offset the cooling effect of prior-year Rugby World Cup comparables in the provinces.

In the Middle East, Africa & Asia-Pacific (MEAAP) region, PM&E performance varied. Southeast Asia, benefiting from a surge in Chinese travelers, posted the strongest RevPAR growth. In contrast, the Middle East saw a slower quarter due to adjusted pilgrimage timings and flood-related hotel closures in Dubai. Despite a challenging economic backdrop, the Pacific region showed stable performance, while in China, outbound tourism contributed to Southeast Asia’s growth, even as domestic travel lagged.

Luxury & Lifestyle (L&L): RevPAR growth in the L&L division reached 7%, largely driven by occupancy gains. The Luxury segment, comprising 73% of the division’s revenue, recorded a 5% increase in RevPAR, reflecting positive trends across markets but with a premium edge. Meanwhile, the Lifestyle segment shined with a 14% rise, spurred by demand for resort destinations in Turkey and Egypt.

Regional Trends and Market Dynamics

Americas: Brazil, contributing 60% of the Americas region’s room revenue, posted robust RevPAR growth, propelled by corporate travel and large-scale events in São Paulo.

MEAAP: The Middle East faced headwinds from Hajj and Umrah timing shifts, while Dubai’s sequential recovery improved following flood-related closures. In China, outbound travel trends supported Southeast Asia, but domestic RevPAR remained constrained by lower consumer confidence.

Impacts of Acquisitions and Currency Fluctuations

The Group’s recent acquisition of Potel & Chabot significantly bolstered the L&L division, contributing €56 million in revenue. Currency exchange variances, particularly in the Brazilian real (-13%) and Egyptian pound (-37%), reduced quarterly revenue by €30 million, highlighting ongoing challenges in navigating global financial fluctuations.

Outlook and Future Growth

Accor’s diversified portfolio and expansion initiatives position it to continue capitalizing on resilient markets and growing demand for luxury and lifestyle experiences. With targeted growth strategies across multiple regions, Accor demonstrates robust financial discipline and brand positioning that enhance its ability to weather economic headwinds while securing lasting market presence.

For the full financial report, visit Accor’s official site.