Robust hotel demand in the Middle East and Asia Pacific regions saw Accor’s revenue climbing by 8% in the first quarter. The French hospitality giant’s reported revenue stood at €1,236 million ($1,324.65 million) at the end of Q1 2024.
The first quarter saw the group opening 53 hotels, representing more than 8,000 rooms and a net unit growth of 3.1% in the past 12 months. By the end of March, Accor’s total portfolio stood at 5,613 hotels totaling 825,313 rooms, with a pipeline of 1,297 hotels (224,000 rooms).
“Our network growth also accelerated, reflecting the attractiveness of our brands and the trust of our owners. By continuing to combine high standards with operational flexibility, quality of execution and financial discipline, we are confident in our ability to pursue a growth path that is in line with the objectives we have set for ourselves,” said Sébastien Bazin, Accor’s chairman and CEO.
REVPAR
Propelled mostly by rates than occupancy rates, the premium, midscale and economy division’s RevPAR was up 8% compared to the corresponding quarter in 2023.
While RevPAR in the Europe North Africa rose 5%, the Middle East, Africa and Asia Pacific posted a 12% jump. In Americas, RevPAR was up 4%.
Room revenue in the luxury and lifestyle division saw a 7% increase, driven mainly by higher occupancy. Accounting for 77% of the division’s room revenue, the luxury segment saw a 6% increase in RevPAR. With its exposure mostly in North America than the other segments, growth in luxury RevPAR was more modest reflecting a more mature market. RevPAR in the lifestyle segment grew 10%, fueled by better occupancy at resorts in Turkey, the U.A.E. and Egypt.
REVENUE
The revenue of €1,236 million breaks down into a 6% growth for the premium, midscale and economy division and a 12% growth for the luxury and lifestyle segment. Scope effects, primarily linked to the acquisition of Potel & Chabot (in October 2023) in the luxury and lifestyle division, positively contributed for €38 million ($40.72 million).
The Premium, midscale and economy segment (which includes fees from management and franchise, services to owner and hotel assets and other of the group’s premium, midscale and economy brands) generated revenue of €690 million ($739.48 million), up 6% from Q1 2023.
Luxury and lifestyle, including fees from management and franchise, services to owner and hotel assets and other of the group’s luxury and lifestyle brands, generated revenue of €566 million ($606.59 million), up 12%.
The management and franchise revenue jumped 11% to €192 million ($205.77 million), driven by a 7% increase in RevPAR and robust growth in incentive fees from management contracts.