The primary quarter of 2024 demonstrated the resort demand in all Accor Group areas and segments. Working efficiency indicators (RevPAR and portfolio progress) are trending positively, and the group has continued to handle its steadiness sheet in step with its commitments.
Sébastien Bazin, chairman and CEO of Accor, mentioned, “On this first quarter, marked by the group’s return in CAC 40, Accor as soon as once more delivered a strong efficiency, rising income in all areas, notably within the Center East and Asia-Pacific. Our community progress additionally accelerated, reflecting the attractiveness of our manufacturers and the belief of our homeowners. By persevering with to mix excessive requirements with operational flexibility, high quality of execution, and monetary self-discipline, we’re assured in our capacity to pursue a progress path that’s in step with the targets now we have set for ourselves.”
Within the first quarter of 2024, Accor opened 53 resorts akin to greater than 8,000 rooms, representing a internet unit progress of three.1 % over the past 12 months. On the finish of March 2024, the group had a resort community of 825,313 rooms (5,613 resorts) and a pipeline of 224,000 rooms (1,297 resorts).
First-quarter 2024 RevPAR
The Premium, Midscale & Economic system (PM&E) division posted an 8 % improve in RevPAR in contrast with the primary quarter of 2023, nonetheless extra pushed by charges than by occupancy charges.
The Europe North Africa (ENA) area reported a 5 % improve in RevPAR in contrast with the primary quarter of 2023.
In France, which represents 44 % of the area’s room income, the Paris area and the provinces posted comparable RevPAR progress. RevPAR progress in March was notably sturdy, benefiting from a better variety of occasions than in March 2023, and the absence of a strike in comparison with the identical interval final 12 months.
The UK, 13 % of the area’s room income, posted RevPAR progress akin to France, with a fair steadiness between London and the provinces.
In Germany, 13 % of the area’s room income, RevPAR progress was stronger than in France and the UK. This alteration displays an enchancment and advantages from a positive base impact, because the exercise restoration within the nation was delayed as in comparison with the remainder of Europe.
The Center East, Africa, and Asia-Pacific area reported a 12 % improve in RevPAR in contrast with the primary quarter of 2023.
The Center East Africa area has 26 % of room income continued to publish strong RevPAR progress, pushed by charges and advantages in Saudi Arabia from the Ramadan calendar, most of which was held within the first quarter of 2024.
In South-East Asia, 30 % of room income within the area, reported RevPAR progress, pushed particularly by Singapore and Thailand.
The Pacific, 27 % of room income within the area, continued the pattern noticed within the fourth quarter of 2023, with RevPAR progress pushed primarily by greater occupancy charges.
In China, 18 % of resort room income within the area, enterprise continued to recuperate, albeit at a measured tempo.
The Americas area, which primarily displays the efficiency of Brazil (65 % of room income for the area), posted a 4 % improve in RevPAR in contrast with the primary quarter of 2023. The exercise, which had exceeded the occupancy recorded earlier than COVID, posted a slight decline in demand. Nonetheless, this slight decline in occupancy was greater than offset by greater common charges.
The Luxurious & Way of life (L&L) division reported a 7 % improve in RevPAR in contrast with the primary quarter of 2023, primarily pushed by greater occupancy.
The Luxurious phase, 77 % of the division’s room income, posted a 6 % improve in RevPAR in contrast with the primary quarter of 2023. Being extra uncovered to North America than the opposite segments, Luxurious RevPAR progress is barely extra modest, reflecting a extra mature market.
The Way of life phase reported strong RevPAR progress of 10 % in contrast with the primary quarter of 2023. This was pushed by improved occupancy at resorts in Turkey, Egypt, and the United Arab Emirates.
Group income
For the primary quarter of 2024, the Group reported income of €1,236 million, up 8 % on a like-for-like foundation (LFL) in contrast with the primary quarter of 2023. This improve breaks down right into a 6 % progress for the Premium, Midscale & Economic system division and a 12 % progress for the Luxurious & Way of life division.
Scope results, primarily linked to the acquisition of Potel & Chabot (in October 2023) within the Luxurious & Way of life division (Lodge Belongings and Different phase), positively contributed to €38 million.
Foreign money results had a detrimental impression of €37 million, primarily because of the Australian greenback (down 5 %) and the Turkish lira (down 40 %).
Premium, Midscale & Economic system income
Premium, Midscale & Economic system, which incorporates charges from Administration & Franchise (M&F), Providers to Proprietor and Lodge Belongings & Different of the Group’s Premium, Midscale & Economic system manufacturers, generated income of €690 million, up 6 % LFL in contrast with the primary quarter of 2023. This improve displays the sustained exercise reported over the interval, mitigated by a base impact in Providers to Proprietor.
The Administration & Franchise (M&F) income totaled €192 million, up 14 % LFL in contrast with the primary quarter of 2023. This improve, which was greater than the 8 % rise in RevPAR over the interval, displays the sturdy progress in incentive charges supplied for in administration contracts, notably within the Asia-Pacific area. Administration & Franchise efficiency by area is detailed on the next web page.
Providers to Homeowners income, which incorporates Gross sales, Advertising and marketing, Distribution, and Loyalty actions, in addition to shared providers and the reimbursement of resort prices, totaled €252 million, down (1) % LFL in contrast with the primary quarter of 2023. This decline displays a base impact on the identical interval final 12 months, which included the ultimate rebilling of prices incurred by Accor as a part of its reception providers for supporters throughout the soccer World Cup in Qatar.
Lodge Belongings and Different income was up 9 % LFL in contrast with the primary quarter of 2023. This phase, which is strongly linked to exercise in Australia and Brazil, displays the extent of exercise recorded in these areas.
Luxurious & Way of life income
Luxurious & Way of life, which incorporates charges from Administration & Franchise (M&F), Providers to Proprietor, and Lodge Belongings & Different of the group’s Luxurious & Way of life manufacturers, generated income of €566 million, up 12 % LFL in contrast with the primary quarter of 2023. This improve additionally displays the nice exercise efficiency over the interval, in addition to the opening of latest venues at Paris Society.
Administration & Franchise (M&F) income totaled €102 million, up 11 % like-for-like in contrast with the primary quarter of 2023, pushed by a 7 % improve in RevPAR and robust progress in incentive charges from administration contracts. The efficiency of the Administration & Franchise enterprise by phase is detailed on the next web page.
Providers to Homeowners, which incorporates Gross sales, Advertising and marketing, Distribution, and Loyalty actions, in addition to shared providers and the reimbursement of resort prices, totaled €347 million, up 12 % LFL in contrast with the primary quarter of 2023.
Lodge Belongings and Different income was up 13 % LFL in contrast with the primary quarter of 2023. This alteration on a like-for-like foundation displays the opening of the Abbaye des Vaux de Cernay resort and new restaurant venues at Paris Society, whereas the reported change of 77 % features a important scope impact linked to the acquisition of Potel & Chabot in October 2023.
Administration & Franchise income
Administration & Franchise (M&F) posted income of €294 million, up 13 % LFL in contrast with the primary quarter 2023. This alteration displays RevPAR progress of 8 % LFL versus the primary quarter of 2023 amplified by the sharp rise in incentive charges supplied for resort administration contracts, notably within the Asia-Pacific and Way of life segments, and a termination payment for a breach of contract within the Premium, Midscale & Economic system phase within the Americas.
Outlook
The group confirmed its medium-term progress views as disclosed throughout the Investor Day on June 27, 2023:
- Annualized RevPAR progress between 3 % and 4 % (CAGR 2023-27)
- Annualized internet unit progress between 3 % and 5 % (CAGR 2023-27)
- M&F income progress between 6 % and 10 % (CAGR 2023-27)
- A slightly optimistic EBITDA contribution from Providers to Homeowners
- EBITDA progress between 9 % and 12 % (CAGR 2023-27)
- Recurring free money movement conversion in extra of 55 %
- A return to shareholders of round €3 billion over the 2023-2027 interval
Within the first quarter of 2024, Accor accomplished a €400 million share buyback program, with an accretive impact for shareholders by way of the cancellation of three.9 % of its shares.
Disposal of Accor Trip Membership
On January 30, 2024, Accor entered into an settlement with Journey + Leisure to promote Accor Trip Membership, its timeshare enterprise in Australia, New Zealand, and Indonesia on the premise of an enterprise worth of AUD78 million (€48 million). The settlement additionally contains an unique franchise settlement for Journey + Leisure’s future new timeshares beneath the Accor manufacturers in Asia Pacific, the Center East, Africa, and Turkey. This transaction is a part of the group’s ongoing asset-light technique and was closed on the finish of Q1 2024.
Bond difficulty
On March 4, 2024, Accor efficiently positioned a €600 million 7-year bond with a coupon of three.875 %. The transaction was greater than 4 instances oversubscribed, reflecting Accor’s sturdy credit score high quality and investor confidence in its enterprise mannequin, progress potential, and monetary construction. This transaction allows the group to make the most of enticing market circumstances and considerably prolong the common maturity of its debt.
Share buyback
On April 5, 2024, Accor introduced the completion of its €400 million share buyback program introduced on February 22, 2024.
A primary tranche of share buybacks totaling €275 million was accomplished by way of a share buy settlement signed with Jinjiang Worldwide on March 11, 2024. The transaction accounted for 7 million shares at a value per Accor share of €39.22.
The remaining €125 million of the share buyback program, launched on March 20, 2024, was accomplished on April 4, 2024, with the acquisition of two,923,228 shares at a median value of €42.93.
At completion, the group acquired 9,923,228 shares at a median value of €40.31. These shares have been canceled.
