Accor Experiences Q1 2025 Outcomes

Accor reported Q1 2025 outcomes.

Highlights embrace:

• Income up 9.2 p.c to €1,349 million
• RevPAR up 5 p.c versus Q1 2024
• Pipeline up 4.9 p.c during the last 12 months

Sébastien Bazin, chairman and CEO of Accor, mentioned, “Accor has as soon as once more posted dynamic progress in its enterprise this quarter, pushed by continued sturdy demand. Our diversified geographic positioning and management in probably the most promising markets, mixed with the power of our engaging and distinctive manufacturers, allow us to proceed to develop in a extra unstable geopolitical and financial atmosphere. On this context, whereas sustaining sturdy operational self-discipline, we’re pursuing our technique of improvement and worth creation and are assured in our capability to proceed enhancing our efficiency.”

In a unstable political and shopper atmosphere, the worldwide demand within the hospitality sector remained sustained through the first quarter of 2025. The diversification of the resort portfolio, when it comes to geography and segments, permits the Group to report encouraging performances, though topic to the uncertainties of the financial atmosphere.

Within the first quarter of 2025, Accor opened 45 motels similar to greater than 5,900 rooms, representing a internet unit progress of two.7 p.c during the last twelve months, which ought to speed up from the beginning of the second half of 2025. On the finish of March 2025, the Group had a resort community of 847,290 rooms (5,695 motels) and a pipeline of greater than 235,000 rooms (1,388 motels).

First-quarter 2025 RevPAR

The Premium, Midscale and Economic system (PM&E) division posted a 3.4 p.c improve in RevPAR in contrast with the primary quarter of 2024, pushed 90 p.c by costs and 10 p.c by the occupancy price.

• The Europe North Africa (ENA) area posted a 0.6 p.c improve in RevPAR in contrast with the primary quarter of 2024, pushed by greater occupancy charges. Relying on the nation, the area’s efficiency reveals contrasting traits.

• In France, which accounts for 44 p.c of the area’s resort room income, RevPAR declined barely in each Paris and the provinces within the first quarter on account of a weak month of March, affected by an unfavorable calendar impact.

• Within the United Kingdom, which accounts for 13 p.c of the area’s resort room income, each London and the provinces recorded a decline in RevPAR, which is linked to weak confidence within the nation’s financial scenario.

• In Germany, which accounts for 12 p.c of the area’s resort room income, RevPAR progress was average at first of the interval earlier than accelerating because of a extra favorable commerce honest calendar.

• The Center East, Africa and Asia-Pacific area posted a 4.6 p.c improve in RevPAR in contrast with the primary quarter of 2024. This improve in RevPAR was pushed by costs.

• Within the Center East-Africa area, which accounts for 28 p.c of the area’s resort room income, RevPAR progress was sustained, primarily pushed by costs, significantly in Saudi Arabia because of the Ramadan festivities, which occurred solely through the first quarter of 2025.

• Southeast Asia, which accounts for 32 p.c of the area’s resort room income, posted sustained RevPAR progress because of sturdy efficiency in Thailand and regardless of an unfavorable comparability base for Singapore, which hosted a number of Taylor Swift concert events in March 2024.

• The Pacific, which accounts for twenty-four p.c of the area’s resort room income, posted sluggish RevPAR progress, primarily on account of Tropical Storm Alfred, which hit the coastal space of southern Queensland, Australia, in early March 2025.

• In China, which accounts for 16 p.c of the area’s resort room income, RevPAR variation stays detrimental, with the restoration in vacationer flows showing to primarily profit abroad tourism, significantly in Southeast Asia.

• The Americas area, which primarily displays the efficiency of Brazil (62 p.c of the area’s resort room income), posted a 13.1 p.c improve in RevPAR in contrast with the primary quarter of 2024.

• Brazil continued to report sturdy RevPAR progress because of greater occupancy charges and costs, supported by a strong occasion calendar.

The Luxurious & Life-style (L&L) division posted RevPAR up 8.3 p.c in contrast with the primary quarter of 2024, pushed by costs and occupancy charges, which contributed two-thirds and one-third, respectively. All manufacturers within the Luxurious & Life-style division outperformed the PM&E division in comparable areas, demonstrating the resilience of this section.

• Luxurious, which accounts for 75 p.c of the division’s resort income, posted a 9.0 p.c improve in RevPAR in contrast with the primary quarter of 2024. Worldwide tourism flows proceed to contribute to the sturdy efficiency of the Luxurious market.

• Life-style posted a 6.3 p.c improve in RevPAR in contrast with the primary quarter of 2024. The resort motels section as soon as once more recorded a strong quarter in Turkey, Egypt, and the United Arab Emirates. Sturdy demand was mirrored specifically in a continued enchancment in occupancy charges.

Group income

For the primary quarter of 2025, the Group recorded income of €1,349 million, up 9.2 p.c in contrast with the primary quarter of 2024. This progress breaks down as a 1.8 p.c improve for the Premium, Midscale and Economic system division and a 17.9 p.c improve for the Luxurious & Life-style division.

Scope results, primarily linked to the full-year impact of Rikas (acquired in March 2024) within the Luxurious & Life-style division (the Resort Belongings & Different exercise), positively contributed for €28 million.

Foreign money results had a detrimental influence of €9 million, primarily because of the depreciation of the Egyptian pound ((29) p.c) and the Brazilian actual ((13) p.c), and partially offset by the strengthening of the US greenback (up 4 p.c).

Premium, Midscale & Economic system income

Premium, Midscale and Economic system, which incorporates charges from Administration & Franchise (M&F), Providers to House owners and Resort Belongings & Different of the Group’s Premium, Midscale and Economic system manufacturers, generated income of €703 million, up 1.8 p.c in contrast with the primary quarter of 2024.

The Administration & Franchise (M&F) income stood at €200 million, up 3.9 p.c in contrast with the primary quarter of 2024, barely above the RevPAR progress (up 3.4 p.c).

Providers to House owners income, which embrace Gross sales, Advertising and marketing, Distribution and Loyalty division, in addition to shared companies and reimbursement of prices incurred on behalf of resort homeowners, totaled €266 million, up 5.4 p.c in contrast with the primary quarter of 2024. This improve, stronger than the change in RevPAR, displays an enchancment in our distribution channel combine.

Resort Belongings & Different income was down 3.5 p.c in contrast with the primary quarter of 2024. This exercise is strongly linked to enterprise in Australia and Brazil. The East coast of Australia, the place many of the resort belongings are positioned, was hit by Tropical Storm Alfred in early March. The sturdy progress in RevPAR in Brazil talked about above isn’t mirrored in income on account of detrimental trade price fluctuations.

Luxurious & Life-style income

Luxurious & Life-style, which incorporates charges from Administration & Franchise (M&F), Providers to House owners and Resort Belongings & Different actions of the Group’s Luxurious & Life-style manufacturers, generated income of €668 million, up 17.9 p.c in contrast with the primary quarter of 2024.

The Administration & Franchise (M&F) income stood at €122 million, up 19.6 p.c in contrast with the primary quarter of 2024, pushed by the change in RevPAR (up 8.3 p.c), incentives charges and community progress in Life-style.

Providers to House owners income, which embrace Gross sales, Advertising and marketing, Distribution and Loyalty division, in addition to shared companies and reimbursement of prices incurred on behalf of resort homeowners, totaled €397 million, up 14.6 p.c in contrast with the primary quarter of 2024, pushed by an enchancment within the contribution of the loyalty program.

Resort Belongings & Different income was up 25.9 p.c in contrast with the primary quarter of 2024. This exercise features a important scope impact linked to the acquisition of Rikas (in March 2024) and the opening of latest eating places by Paris Society during the last twelve months.

Administration & Franchise income

Administration & Franchise (M&F) income got here to €321 million, up 9.3 p.c in contrast with the primary quarter of 2024.

The PM&E division posted M&F income up 3.9 p.c, in keeping with RevPAR progress over the interval (up 3.4 p.c). Nonetheless, there have been some distortions within the evaluation by area.

• Within the ENA area, the slight decline in M&F income primarily displays the conversion of a restricted variety of administration contracts into franchise contracts. This was anticipated within the mid-term projections supplied in June 2023, with many of the influence now anticipated in 2025. The required changes to the fee base have been recognized and are being actioned to offset the c.2 p.c M&F income influence on PM&E division.
• Within the MEA APAC area, strong income progress primarily displays the sturdy exercise and a barely favorable base impact on incentive charges in comparison with the primary quarter of 2024.
• Within the Americas area, the very strong exercise stage isn’t mirrored in income which is impacted by the detrimental trade price variance and a detrimental base impact associated to the popularity of a contract termination indemnity in Brazil within the first quarter of 2024.

The L&L division posted a 19.6 p.c improve in M&F income, supported by sturdy progress in RevPAR (up 8.3 p.c), incentives charges and community progress in Life-style.

Return to shareholders

Through the publication of its 2024 annual outcomes on February 20, 2025, Accor introduced the implementation of a €440 million share buyback program in 2025. On this context, the Group introduced on March 6, 2025, the launch of the primary tranche of this share buyback program for an quantity of €200 million.