Accor has reported a solid first-half 2024 performance in line with its medium-term growth targets, demonstrating the strength of its model and strong momentum of the Group and its brands.
“Activity in the second quarter remained strong in all regions and for all our brands, our pace of development accelerated and our leading position in luxury and lifestyle was further strengthened by major partnerships,” said Sébastien Bazin, Chairman and CEO of Accor. “These performances enable us to raise our RevPAR target for 2024 and to reaffirm our confidence in the Group’s strength and ambition.”
Accor’s Luxury & Lifestyle (L&L) division posted an 8% increase in RevPAR compared to the second quarter of 2023, mainly driven by higher occupancy rate.
The Luxury segment alone, representing 76% of the division’s room revenue, posted a 6% rise in RevPAR compared to the second quarter of 2023. This performance was driven by all brands.
Lifestyle RevPAR increased by 14% compared to the corresponding period, driven by prices, particularly at resorts in Turkey, Egypt and the United Arab Emirates.
Accor said the Group’s diversification, both in terms of geographies and segments, plays a key role for each of the two divisions.
During the first half of 2024, Accor opened 146 hotels, representing 24,000 rooms. At the end of June 2024, the Group had a hotel portfolio of 838,722 rooms (5,682 hotels) and a pipeline of 218,000 rooms (1,297 hotels).
For the first half of 2024, the Group recorded revenue of €2,677 million, up 11% compared to the first half of 2023. This growth breaks down as a 4% increase for the Premium, Midscale and Economy division and an incredible 22% increase for the Luxury & Lifestyle division.
Luxury & Lifestyle generated revenue of €1,243 million. The 22% increase reflects the performance of this business, the increase of the fees linked to the residential activity and a scope effect linked to the takeover of Potel & Chabot.
Group EBITDA amounted to €504 million for the first half of 2024, up 13% compared to the first half of 2023.
The Luxury & Lifestyle division generated EBITDA of €196 million, also up 13%.
By comparison, the Premium, Midscale and Economy division posted EBITDA of €360 million, up 9% compared to the first half of 2023.
Net profit, Group share, amounted to €253 million for the first half of 2024 compared to €248 million in the first half of 2023.
Accor also highlighted its new alliance with LVMH and Orient Express, saying that partnership will see the ultra-luxury brand operate future hotels, trains and the two sailboats being developed by Chantiers de l’Atlantique.
“By partnering in the renewal of this iconic brand, LVMH brings its unique know-how to high-quality products and services, illustrated in the world of travel by the Venice Simplon-Orient-Express train and the five other trains also operated by Belmond around the world. These extraordinary experiences reflect the operational expertise and creativity of LVMH Hospitality Excellence in this area.”
During the second quarter, Accor and Amadeus forged a new collaboration to deploy the Amadeus central reservation system (ACRS) across the Group’s entire hotel portfolio. Amadeus’ cloud-based technology will enable Accor to increase its revenues, optimise its distribution strategies and further personalise its relationships with its customers.
In the second half of June, Accor brand Ennismore welcomed the addition of Our Habitas to its global collective of lifestyle brands. Our Habitas will bring a new dimension to the Ennismore collective of founder-built brands. In return, Ennismore will give Our Habitas, a leader in sustainable hospitality, access to its operational expertise and international development capabilities.
