Accor’s strong quarter muted by forex

PARIS – Positive performance momentum from Accor’s second quarter earnings report was muted by its comments about larger-than-expected impacts from adverse foreign exchange rates.

Accor reported a strong 9.4% EBITDA increase to €552 million ($631 million), ahead of market expectations, but added it would be adversely impacted by about €60 million based on expected exchange rates.

Accor guided for a negative impact of circa 5% from FX versus 2% consensus expectations, according to a JPMorgan analyst.

Accor CFO Martine Gerow said that business transient and group demand remained “flat” during the second quarter, with growth largely driven by the leisure segment.

Accor’s 2Q25 RevPAR growth came in below expectations at 4.1% at €78, while ADR increased 3% to €114. Luxury posted a 3% increase in RevPAR compared with the second quarter of 2024, while Lifestyle showed a 12.0% increase in RevPAR compared with the second quarter of 2024. Resort hotels continued to perform well during the quarter, particularly in Turkey, Egypt, and the United Arab Emirates.

For FY 2025, Accor net unit growth should come in around +5%. Chairman and CEO Sébastien Bazin said that they will try to expand deeper in the U.S., especially in markets with strong European demand.

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While the company expects “softer” second-half revenue growth (largely due to the comparative impact of the 2024 Olympic Games in France), it continued to guide full-year 2025 RevPAR growth at 3% to 4%.

For FY 2025, Accor said net unit growth should come in around +5%. Accor Chairman and CEO Sébastien Bazin said that moving forward they will try to expand deeper in the U.S., especially in markets with strong European demand.

Total revenue for the first half of the year came in below consensus, increasing 2.5% YOY to €2.7 billion with global occupancy improving 0.7 percentage points to 64.7%.

Net profit fell to €233 million from €253 million due to higher finance costs, while the prior period also benefited from gains from the sale of the Essendi hotel assets.

During the first half of 2025, Accor opened 117 hotels, corresponding to more than 15,000 rooms, representing net unit growth of 1.9% over the last 12 months. At the end of June 2025, the group had a hotel portfolio of 854,695 rooms (5,740 hotels) and a pipeline of more than 241,000 rooms (1,432 hotels).

“In the first half of 2025, the group once again posted strong momentum despite a complex geopolitical environment and the impact of exchange rates,” Bazin said. “This solid performance confirms the quality of our brand portfolio and the relevance of our diversified geographic presence and is the result of the operational and financial discipline that the group implements quarter after quarter.

“At constant currency, for the full year 2025, we are confirming our RevPAR, network and recurring EBITDA growth targets, in line with our June 2023 Capital Market Day medium-term prospects. We will also continue, as promised, our attractive shareholder return policy by launching the second tranche of our share buyback program.”

Accor launched the second part of its share buyback program under which it will buy €240 million of shares. Accor announced its plan to buy back up to €440 million of shares on February 20 and completed the first €200 million tranche on May 23.