Full-year and 4Q24 earnings mostly in line with expectations
as the Paris-based giant confirmed medium-term outlook.
PARIS – Accor reported full-year 2024 earnings, stating its RevPAR
increased 5.7% to €75 in 2024 (5.8% for Q4), beating analyst expectations.
Management reiterated the mid-term goal of 3% to 5% annual
net unit growth, with an expected acceleration in 2025.
RevPAR normalization is expected, with growth converging
towards the mid-term target of 3% to 4% annually. High growth regions such as
the Middle East and Southeast Asia remain focal points for expansion.
The company reaffirmed its commitment to achieving a 9% to 12%
CAGR in EBITDA from 2023 to 2027.
RevPAR breakouts
In the fourth quarter, RevPAR grew 2% in the Europe North
Africa region and 5% in the Middle East, Africa and Asia Pacific region with
China still lagging.
The global average room rate for 2024 was €113, marking a
3.8% year-over-year increase, while occupancy increased 1.2 percentage points
to 66.7%.
The Luxury & Lifestyle division posted its best performance for the year with a 10% increase in RevPAR compared with Q4 2023, driven by both prices and occupancy.
ADR in Europe and North Africa was €103 – the highest of any
region – which represents a 2.9% YOY increase. RevPAR in the region increased
3.3% to €69, while occupancy increased 0.3 percentage points to 67.3% for the
year.
The Premium, Midscale and Economy division posted
a 4% YOY increase in RevPAR, driven equally by prices and occupancy.
The Luxury & Lifestyle division posted its best performance for the year with a 10% increase in RevPAR compared with Q4 2023, driven by both prices and occupancy.
The Europe North Africa region posted a 2% YOY increase
in RevPAR with Germany outperforming France and the UK.
Southeast Asia, which accounts for 33% of the region’s
room revenue, posted double-digit RevPAR growth and occupancy was 71%, exceeding
its 2019 level.
In China, which accounts for 18% of the region’s room
revenue, the situation improved in Q4 2024, although the change in RevPAR
remained negative compared to Q4 2023.
The Americas region, which mainly reflects the
performance of Brazil (61% of the region’s room revenue), posted a 12% increase
in RevPAR compared with the fourth quarter of 2023. Brazil, whose occupancy
rate returned to its pre-crisis level in the second quarter of 2022, continued
to record a rise in occupancy and benefited from higher prices.
Growth projections
On the growth front, Accor said around 60% of its openings
in 2025 will be in the Middle East, Africa and Asia Pacific region.
At the end of 2024, Accor had a hotel portfolio of 850,285 rooms (5,682 hotels) and a pipeline of more than 233,000 rooms (1,381 hotels).
Accor also said its expects to complete a sale of its 30%
stake in AccorInvest, a former real estate branch of Accor Group, during 2026.
In 2024, Accor opened 293 hotels, corresponding to more than
50,000 rooms for net rooms growth of 3.5% in the last 12 months. At
end-December 2024, the group had a hotel portfolio of 850,285 rooms (5,682
hotels) and a pipeline of more than 233,000 rooms (1,381 hotels).
Revenue, fee, profit update
The group’s reported revenue of €5.606 billion
in 2024 was up 11% over 2023. This growth breaks down into a 5% increase for
the Premium, Midscale and Economy (PM&E) division and 19% for the Luxury and
Lifestyle division.
“Room revenue growth was driven both by business and
leisure, which proved remarkably resilient,” Accor CFO Martine Gerow said. Gerow
also said that large corporates, as a category, reported double-digit growth in
room revenue, primarily driven by demand from the tech and financial services
sectors.
Management and franchise revenue came to €1.393 billion,
up 7% compared with 2023. This change reflects RevPAR growth in the group’s
various regions and segments (+5.7% versus FY 2023).
Net profit, group share was €610 million in 2024,
compared with €633 million in 2023. Diluted earnings per share rose to €2.33
from €2.22 in 2023, thanks to a lower average number of shares outstanding
following share buybacks.
Without updating its guidance, Accor confirmed the
medium-term growth prospects it announced in 2023, including a 2025 share
buyback program totaling $459 million.