All through 2024, the hospitality sector proved resilient in a contrasting shopper setting, in accordance with Accor. The group’s diversification when it comes to geography and phase enabled it to put up robust exercise. In consequence, each divisions—Premium, Midscale, and Financial system (PM&E) and Luxurious and Way of life (L&L)—reported outcomes according to the outlook offered on the group’s June 2023 Investor Day.
In 2024, Accor opened 293 inns, equivalent to greater than 50,000 rooms, i.e., internet community progress of three.5 p.c in these 12 months. In December 2024, the group had a resort portfolio of 850,285 rooms (5,682 inns) and a pipeline of greater than 233,000 rooms
(1,381 inns).
Sébastien Bazin, chairman and CEO, Accor, mentioned, “Ambition, self-discipline, and excessive requirements are the three pillars which have guided Accor’s actions in 2024. They’ve as soon as once more enabled us to put up file outcomes, according to every of the aims now we have set for the group. This efficiency displays the extraordinary dedication of our groups, the power of our manufacturers and our digital instruments, the renewed confidence of our companions, and the effectivity of our group primarily based on two autonomous and complementary divisions. Because of this vigorous progress, we’ll suggest an elevated return to shareholders on the subsequent Common Assembly. On these strong foundations, and by persevering with to manage our future, we’re approaching 2025 with confidence and the ambition to as soon as once more ship wonderful outcomes.”
Fourth Quarter RevPAR
The PM&E division posted a 4 p.c improve in RevPAR in contrast with the fourth quarter of 2023, pushed equally by costs and occupancy.
- The Europe North Africa (ENA) area posted a 2 p.c improve in RevPAR in contrast with This autumn 2023, pushed by increased occupancy charges. The three fundamental international locations pursued the momentum seen within the first 9 months of the 12 months, with Germany outperforming France and the UK.
- In France, which accounts for 42 p.c of the area’s room income, the change in RevPAR in Paris was barely damaging within the fourth quarter, on account of an unfavorable foundation of comparability with the Rugby World Cup in October 2023. Nonetheless, this pattern turned optimistic once more in December 2024, due to robust worldwide demand, notably from the USA, the reopening of Notre Dame de Paris, and the post-Olympic Video games impact. In the meantime, efficiency within the provinces was much less unstable, with RevPAR stabilizing within the fourth quarter of 2024.
- In the UK, which accounts for 13 p.c of the area’s room income, each London and the provinces posted weak RevPAR progress, according to the primary three quarters of the 12 months.
- In Germany, which accounts for 13 p.c of the area’s room income, RevPAR progress was barely stronger than in France and the UK. Occupancy, 5 factors under the extent of the fourth-quarter 2019 stage, stays an necessary vector for future progress.
- The Center East, Africa, and Asia-Pacific area rebounded within the quarter, posting a 5 p.c improve in RevPAR in contrast with the fourth quarter of 2023. Two-thirds of this improve in RevPAR was pushed by costs, and one-third by occupancy charges.
- Within the Center East-Africa area, which accounts for twenty-four p.c of the area’s room income, Saudi Arabia defined the rebound in RevPAR. Certainly, within the third quarter of 2024, Saudi Arabia needed to cope with a tough foundation of comparability linked to non secular pilgrimages. This nation is benefiting from robust demand, mirrored in an occupancy price now at 70 p.c, 10 factors above the pre-crisis stage.
- Southeast Asia, which accounts for 33 p.c of the area’s room income, posted double-digit RevPAR progress, reflecting the area’s rising enchantment. Occupancy now at 71 p.c exceeds its 2019 stage.
- The Pacific, which accounts for 25 p.c of the area’s room income, resumed optimistic progress within the fourth quarter, pushed by robust demand from leisure prospects, received over by a gorgeous pricing coverage.
- In China, which accounts for 18 p.c of the area’s room income, the scenario improved in This autumn 2024, though the change in RevPAR remained damaging in comparison with This autumn 2023.
- The Americas area, which primarily displays the efficiency of Brazil (61 p.c of the area’s room income), posted a 12 p.c improve in RevPAR in contrast with the fourth quarter of 2023.
- Brazil, whose occupancy price returned to its pre-crisis stage within the second quarter of 2022, continued to file an increase in occupancy and benefited from increased costs.
The L&L division posted its finest efficiency for the 12 months with a ten p.c improve in RevPAR in contrast with This autumn 2023, pushed by each costs and occupancy.
- Luxurious, which accounts for 74 p.c of the division’s room income, posted a 9 p.c improve in RevPAR in contrast with the fourth quarter of 2023. RevPAR progress was strong throughout all manufacturers and areas, outperforming the PM&E phase in comparable areas and demonstrating the resilience of the Luxurious phase in inns.
- Way of life posted an 11 p.c improve in RevPAR in contrast with the fourth quarter of 2023. This improve was according to the momentum noticed within the first three quarters of 2024. The resort resort phase once more recorded a strong quarter in Turkey, Egypt, and the United Arab Emirates. This demonstrates the ever-growing enchantment for distinctive experiences.
Consolidated Income
The group reported income of €5,606 million in 2024, up 11 p.c from 2023. This progress breaks down right into a 5 p.c improve for the PM&E division and 19 p.c for the L&L division.
Scope results, linked primarily to the full-year impact of Potel & Chabot (takeover in October 2023) and the acquisition of Rikas (in March 2024) within the L&L division (the Lodge Belongings & Different exercise), positively contributed to €223 million.
Forex results had a damaging impression of €117 million, stemming primarily from the Turkish lira (28 p.c), the Egyptian pound (32 p.c), and the Brazilian actual (7 p.c).
PM&E Income
PM&E, which incorporates charges from Administration & Franchise (M&F), Providers to House owners, and Lodge Belongings & Different actions of the group’s PM&E manufacturers, generated income of €3,103 million, up 5 p.c versus full-year 2023. This improve displays the resort enterprise recorded over the interval.
The Administration & Franchise (M&F) income stood at €899 million, up 5 p.c versus full-year 2023, according to the rise in RevPAR over the interval (up 4.9 p.c).
Providers to House owners income, which embody Gross sales, Advertising, Distribution, and Loyalty division, in addition to shared providers and reimbursement of prices incurred on behalf of resort homeowners, totaled €1,158 million, up 8 p.c versus full-year 2023. This improve, stronger than the change in RevPAR, displays an enchancment in our distribution channel combine.
Lodge Belongings & Different income was up 1 p.c versus full-year 2023. This exercise is strongly linked to enterprise in Australia and Brazil. The disposal of Accor Trip Membership in March 2024, the gradual disposal of some leaseholds, and trade price fluctuations mitigated the strong enterprise efficiency recorded for every nation.
L&L Income
L&L, which incorporates charges from Administration & Franchise (M&F), Providers to House owners, and Lodge Belongings & Different actions of the group’s L&L manufacturers, generated income of €2,587 million, up 19 p.c versus full-year 2023. This improve additionally displays the sustained enterprise exercise recorded over the interval, in addition to the aforementioned scope results.
The Administration & Franchise (M&F) income stood at €494 million, up 11 p.c versus full-year 2023, pushed by the change in RevPAR (up 7.3 p.c), in addition to the tempo of recent resort openings and the rise in residential charges within the Way of life phase. The efficiency of Administration & Franchise is detailed within the pages hereafter.
Providers to House owners income, which embody Gross sales, Advertising, Distribution, and Loyalty division, in addition to shared providers and reimbursement of prices incurred on behalf of resort homeowners, totaled €1,479 million, up 9 p.c versus full-year 2023.
Lodge Belongings & Different income was up 66 p.c versus FY 2023. This exercise features a important scope impact linked to the full-year impression of Potel & Chabot (takeover in October 2023) and the acquisition of Rikas (in March 2024).
Administration & Franchise (M&F) Income
Administration & Franchise income got here to €1,393 million, up 7 p.c in contrast with 2023. This modification displays RevPAR progress within the Group’s varied areas and segments (up 5.7 p.c versus full-year 2023).
Within the PM&E division, it needs to be famous that the Americas, primarily Brazil, had been affected by the autumn within the Brazilian actual which started in Could 2024.
Within the L&L division, the tip of incentive price exemptions in some inns, notably below the Sofitel and Fairmont manufacturers, had a slight downward impression on M&F income progress within the Luxurious phase.
Consolidated Recurring EBITDA
Consolidated Recurring EBITDA got here to €1,120 million for 2024, a brand new file for Accor and up 12 p.c versus full-year 2023. This efficiency is because of the resilience of RevPAR, portfolio progress, margin enchancment within the M&F enterprise, strict price self-discipline in Providers to House owners, and the event of the Lodge Belongings & Different enterprise (notably within the L&L division) mixed with plenty of acquisitions (Rikas and Potel & Chabot).
PM&E Recurring EBITDA
The PM&E division generated recurring EBITDA of €809 million, up 8 p.c versus full-year 2023.
Administration & Franchise (M&F) reported recurring EBITDA of €655 million, up 7 p.c versus full-year 2023, reflecting the resilience of RevPAR, portfolio progress, and management of the associated fee base.
Providers to House owners Recurring EBITDA got here to €43 million in 2024, according to the group’s dedication to reaching optimistic recurring EBITDA for this enterprise.
Recurring EBITDA for Lodge Belongings & Different was down 3 p.c versus full-year 2023.
Luxurious & Way of life Recurring EBITDA
The L&L division generated recurring EBITDA of €427 million, up 21 p.c versus full-year 2023.
Administration & Franchise (M&F) posted recurring EBITDA of €333 million, up 12 p.c versus full-year 2023 with strong RevPAR progress, portfolio progress, and working leverage.
Recurring EBITDA for Providers to House owners amounted to €20 million in full-year 2024, additionally optimistic, according to the group’s dedication.
Recurring EBITDA for Lodge Asset & Different additionally displays the combination of Potel & Chabot since October 2023 and the acquisition of Rikas in March 2024.
Web Revenue
Web revenue, group share was €610 million in 2024, in contrast with €633 million in 2023. Diluted earnings per share rose to €2.33 from €2.22 in 2023, due to a decrease common variety of shares excellent following share buybacks.
Depreciation and amortization of €341 million in 2024, in contrast with €279 million in 2023, elevated with the full-year impression of the consolidation of Potel & Chabot, the sale-leaseback of the group’s headquarters in 2023, and the expansion of Paris Society.
The development within the share of internet revenue of equity-accounted investments to €188 million in 2024, in contrast with €44 million in 2023, is because of AccorInvest, which has maintained its exercise, independently of its asset disposal plan, and recorded capital beneficial properties on its belongings offered.
Web monetary bills of €124 million in 2024, in contrast with €100 million in 2023, have risen because of increased debt steadiness and the honest worth adjustment of some monetary belongings.
Earnings taxes, at €193 million for 2024, in contrast with €39 million in 2023, returned to a stage according to enterprise exercise. 2023 had benefited from substantial deferred tax earnings, notably in France.
Money Circulate Era
In 2024, the group’s recurring free money move improved from €596 million in 2023 to €614 million in 2024. The money conversion price subsequently stands at 55 p.c, according to the group’s goal.
Curiosity paid rises barely between 2023 and 2024 on account of a better general quantity of gross debt.
Recurring investments, which incorporates “key cash” paid by HotelServices for growth in addition to digital and IT investments, was nearly secure in contrast with 2023 at €221 million.
Change in working capital was optimistic and according to 2023, as soon as adjusted for the compensation by AccorInvest of the steadiness of charges deferred within the context of the COVID-19 pandemmic, which had a optimistic impression on 2023.
Group internet monetary debt on Dec. 31, 2024, got here to €2,495 million, versus €2,074 million on Dec. 31, 2023.
On Dec.31, 2024, Accor’s common price of debt was 2.5 p.c, secure in contrast with 2023, with a median maturity of over three years.
On the finish of December 2024, mixed with the undrawn credit score facility of €1 billion signed in 2023, Accor had a liquidity place of €2.2 billion.
Outlook
The group confirmed its medium-term progress prospects as disclosed in the course of the Investor Day on June 27, 2023:
- Annualized RevPAR progress of between 3 p.c and 4 p.c (CAGR 2023-27)
- Common annual community enlargement of between 3 p.c and 5 p.c (CAGR 2023-27)
- M&F income progress of between 6 p.c and 10 p.c (CAGR 2023-27)
- A optimistic Recurring EBITDA contribution from Providers to House owners
- Recurring EBITDA progress of between 9 p.c and 12 p.c (CAGR 2023-27)
- Recurring free money move conversion in extra or equal to 55 p.c
- A shareholder payout of round €3 billion over 2023-2027 together with notably a share buy-back program for an quantity of €440 million in full-year 2025.
Dividends
Based mostly on the 2024 outcomes, the dividend distribution coverage carried out since 2019 (established primarily based on recurring free money move and a payout price of fifty p.c), and as beneficial by the Board of Administrators, Accor will undergo the approval of the Annual Shareholders’ Assembly of Could 28, 2025, the cost of an unusual dividend of €1.26 per share, which is 7 p.c above the dividend distributed in 2024.
Governance
At its assembly on February 19, 2025, the Board of Administrators as soon as once more confirmed the strategic significance of the prospects set for the Group by 2027 as a part of its Capital Market Day and the pursuit of the roadmap undertaken by the staff to attain these aims. On this context, it unanimously determined to suggest prematurely the renewal of the mandate of Sébastien Bazin on the group’s subsequent Annual Common Assembly scheduled for Could 28, 2025, for the statutory time period of three years.
The Board additionally unanimously determined to nominate, as of the date of the following Annual Common Assembly and topic to the renewal of her time period of workplace as director, Isabelle Simon as vice-chair of the Board of Administrators and lead director, changing Iris Knobloch.
Occasions in 2024
- Sale of Accor Trip Membership: On March 1, 2024, Accor offered to Journey + Leisure its timeshare enterprise in Australia, New Zealand, and Indonesia, Accor Trip Membership, primarily based on an enterprise worth of AUD77 million (i.e. €47 million). This settlement additionally supplies for the institution of an unique franchise contract for the long run growth by Journey + Leisure of recent timeshare properties below Accor manufacturers in Asia-Pacific, the Center East, Africa, and Turkey. This transaction is a part of the continuation of the group’s asset-light technique and was finalized on the finish of Q1 2024.
- Accor and IDeaS enter into a worldwide partnership: On Feb. 28, 2024, Accor introduced the conclusion of a worldwide income administration partnership for the Accor portfolio. With the adoption of the suite of IDeaS superior RMS options, Accor continues to rework its enterprise technique for the advantage of its inns, homeowners, and managers. Accor depends on IDeaS to maintain its income administration technique by deploying applied sciences, thereby securing a aggressive benefit and strengthening worth creation throughout its international portfolio. Based mostly on strategic pillars, these new instruments allow inns to learn from dynamic pricing, income, and revenue optimization, and a clearer understanding of the aggressive panorama.
- Bond subject: On March 4, 2024, Accor positioned a €600 million seven-year bond subject with a coupon of three.875 p.c. The deal was greater than 4 instances oversubscribed, reflecting Accor’s robust credit score high quality and investor confidence in its enterprise mannequin, progress potential, and monetary construction. This transaction allowed the group to reap the benefits of market circumstances and prolong the common maturity of its debt.
- Rikas takeover: On March 8, 2024, Accor, by way of its subsidiary Ennismore, acquired a 51 p.c stake in Rikas Eating places Administration LLC, a hospitality firm primarily based in Dubai, specializing in managing high-end eating places and eating institutions.
- Share buyback: On April 5, 2024, Accor introduced the completion of its €400 million share buyback program introduced on Feb. 22, 2024. An preliminary €275 million share buyback tranche was executed by way of a share buy settlement signed with Jinjiang Worldwide on March 11, 2024. The transaction concerned seven million shares at an Accor share worth of €39.22. The remaining quantity of the share buyback program, launched on March 20, 2024, for €125 million was finalized on April 4, 2024, with the acquisition of two,923,228 shares at a median worth of €42.93. On completion of this program, the group acquired 9,923,228 shares at a median worth of €40.31. These shares have been canceled.
- Dividends: On June 7, 2024, primarily based on the 2023 outcomes and the dividend distribution coverage carried out since 2019 (primarily based on the distribution of fifty p.c of recurring free money move), Accor paid out an unusual dividend of €1.18 per share, representing a complete quantity of €286 million.
- LVMH and Accor be part of forces to guide Orient Specific in direction of new horizons: On June 13, 2024, LVMH joined forces with Accor by way of a strategic funding within the Orient Specific model, the corporate that can function the long run inns and trains, in addition to within the entity that owns the 2 sailboats. The primary sailboat is presently below development at Chantiers de l’Atlantique and the 2 teams search a 3rd associate for this new exercise. By partnering within the renewal of this iconic model, LVMH brings its know-how to services, illustrated on the planet of journey by the Venice Simplon-Orient-Specific practice and the 5 different trains additionally operated by Belmond all over the world.
- Accor and Amadeus announce a brand new collaboration: On June 5, 2024, Amadeus and Accor strengthened their strategic partnership to deploy the Amadeus central reservation system (ACRS) throughout the group’s complete resort portfolio. Amadeus’ cloud-based know-how allows Accor to extend its revenues, optimize its distribution methods, and additional personalize its relationships with its prospects.
- Our Habitas: On June 20, 2024, Ennismore introduced the addition of Our Habitas to its international collective of life-style manufacturers. Our Habitas, a model whose mission is to create human connection, brings a brand new dimension to the Ennismore collective of manufacturers. In return, Ennismore provides Our Habitas entry to its operational experience and worldwide growth capabilities.
- AccorInvest: Since 2023, AccorInvest, which is accounted for below the fairness methodology within the group’s consolidated statements, has initiated an asset disposal plan to be accomplished by 2025, aimed toward optimizing its monetary construction by lowering its debt and bettering the profitability of its asset portfolio. In July 2024, AccorInvest finalized the refinancing of its financial institution borrowings, extending by two years the maturities due in 2025, together with a partial reimbursement. To facilitate the execution of this refinancing, a capital improve within the type of most popular shares was subscribed to by the corporate’s shareholders, together with Accor for €68 million. Moreover, the shareholders are dedicated to subscribe, by March 2025, to a further issuance of most popular shares for a most quantity equal to the primary issuance, and a perform of the quantity of asset disposal plan accomplished by AccorInvest. Following the success of its bond subject in September 2024 and progress on its asset disposal program, the utmost quantity is now restricted to €34 million.
- Hybrid bond refinancing: In August 2024, Accor accomplished the October 2019 hybrid bond refinancing transaction. On Aug. 28, 2024, Accor issued perpetual hybrid bonds for an quantity of €500 million with a 4.875 p.c coupon. The transaction was oversubscribed 5 instances reflecting renewed buyers’ confidence within the credit score high quality and the expansion potential of the group. On Sept. 5, 2024, Accor accomplished the refinancing of its October 2019 hybrid bond following the completion of the Tender Provide on a perpetual hybrid bond (2.625 p.c coupon) for a complete quantity of €352.3 million. Following the completion and settlement of the Tender Provide which came about on Sept. 9, 2024, greater than 70.46 p.c of the preliminary mixture principal quantity of the Current Bonds have been bought by Accor.
