Accor upgrades EBITDA guidance, confirms outlook

PARIS – Accor followed the pack with third quarter revenues showing softness in its Premium, Midscale and Economy (PM&E) division post a ing1.1% decrease in RevPAR compared with the third quarter of 2024, while its Luxury & Lifestyle group grew RevPAR a 5.0% with two-thirds of the growth driven by prices and one-third by occupancy and rates.

Accor confirming its full-year guidance with RevPAR growth between 3% and 4% and net unit growth of around 3.5%.

Furthermore, following the implementation of additional cost-saving measures amounting to more than €20 million aimed at partially offsetting the negative impact of exchange rate variations, Accor is revising upward its recurring EBITDA growth guidance for fiscal year 2025 to between 11% and 12% (between 9% and 10% initially) at constant exchange rates.

The group's confidence in its ability to deliver on its growth outlook has also led it to launch a new tranche of share buyback for an amount of €100 million in Q4 2025.

The other big news coming out of Paris is Accor’s Board of Directors unanimously approving the start of preparatory work to evaluate a possible stock market listing for Ennismore, the lifestyle hotel and restaurant brands entity with 192 hotels and 500-plus restaurants and bars, in accordance with the agreement between Accor and the other Ennismore shareholders.

In 2024, Ennismore grew net units by 17.6% and created EBITDA of €170 million as a contribution to Accor's financial statements.

While Accor said there is no certainty that this transaction will be completed, it would enhance liquidity and flexibility to support Ennismore’s growth platform. Should it be completed, Accor would remain the controlling shareholder of Ennismore.

During the third quarter, Accor opened 77 hotels, representing 11,200 rooms, resulting in net growth of 2.5% in the network over the last 12 months. At the end of September, the group had 859,830 rooms (5,760 hotels) and a pipeline of more than 250,000 rooms (1,453 hotels).

Division performance

In the PM&E division, the Europe North Africa region posted a 4.6% decline in RevPAR compared with the third quarter of 2024. Accor said demand remained strong, with a slight increase in occupancy rates compared to last year. However, the decrease in the number of constrained days compared to the Olympic and Paralympic Games period led to a decline in average prices. RevPAR growth in September returned to positive.

The Middle East, Africa and Asia Pacific region posted a 2.7% increase in RevPAR compared with the third quarter of 2024. China's negative RevPAR continue to weigh on the region although Accor said it improved sequentially during the quarter. Excluding China, the region's RevPAR is up 5.3%, driven by prices.

The Americas region, which mainly reflects the performance of Brazil (63% of the region's room revenue), delivered a 7.1% increase in RevPAR compared with the third quarter of 2024. Brazil continued to record strong price increases driven by sustained demand from corporate guests.

Luxury, which accounts for 72% of the Luxury & Lifestyle division’s room revenue, posted a 4.3% increase in RevPAR compared with the third quarter of 2024. RevPAR growth in the segment was strong across all brands and regions, outperforming the PM&E segment in comparable areas.

Lifestyle showed a 6.9% increase in RevPAR compared with the third quarter of 2024. Despite geopolitical tensions, resort hotels continued to perform well during the quarter, particularly in Turkey, Egypt, and the United Arab Emirates.

Revenue breakdown

For the third quarter of 2025, the group recorded revenue of €1,369 million, up 0.1% at constant currency compared with the third quarter of 2024. This increase breaks down into a 1.1% decrease at constant currency for the Premium, Midscale and Economy division and a 0.2% increase at constant currency for the Luxury & Lifestyle division.

Currency effects had a negative impact of €68 million, mainly related to the Australian dollar ((8)%), the U.S. dollar ((6)%), and the Canadian dollar ((7)%).

Revenue from Reimbursed Costs (which consist of the re-invoicing of costs incurred on behalf of hotel owners) amounted to €297 million, up 2.3% at constant currency compared with the third quarter of 2024.

Management and franchise revenue came to €354 million, up 3.1% at constant currency compared with the third quarter of 2024. This variation reflects RevPAR growth in the group's various geographic areas and segments (+0.8% compared with the third quarter of 2024) and net unit growth (+2.5%).