Accor, which reported a good third quarter, once again raises its outlook for the end of 2023. Europe’s leading hotel group continues to expand, announcing the modernization of its hotel portfolio in early October.
This is already the second time this year. Accor has further raised its outlook for 2023, after announcing a 13% like-for-like increase in sales to €1.28 billion in Q3 2023.
Europe’s largest hotel group reports RevPAR (revenue per available room) “up 15% year-on-year despite a very high like-for-like basis”. RevPAR for the third quarter of 2022 was already up 14% on 2019.
“The underlying dynamics observed in previous quarters are continuing,” explains the group, referring to “persistently high average prices and a significantly improved occupancy rate”. Accor points out that this occupancy rate “remains slightly below 2019 levels”.
For fiscal 2023, Accor confirms its network net growth forecast of between 2% and 3%.
During the third quarter, Accor opened 73 hotels, representing around 9,200 rooms, posting net network growth of 3% over the past 12 months. At the end of September 2023, the Group has a hotel portfolio of 812,425 rooms (5,537 hotels) and a pipeline of around 219,000 rooms (1,273 hotels).
At the opening, Accor shares were down 3.5% at 28.90 euros on Friday, approaching breakeven around midday at -0.70%.
Targets revised
In tandem with these good results, Accor has revised upwards its EBITDA targets for 2023 for the second time this year, citing solid business momentum across all its markets. The operator of the Ibis and Novotel hotel chains is now forecasting EBITDA of between €955 and €985 million. This upward revision follows an earlier forecast of between 930 and 970 million euros, which had already been raised in July.
“For Accor, this is the sixth consecutive quarter of growth since the return to post-pandemic business levels,” said Chairman and CEO Sébastien Bazin.
In addition, Accor recently increased its forecast for growth in revenue per available room (RevPAR), a crucial indicator for assessing the performance of the hotel industry, for 2023. The new forecast now anticipates growth of just over 20%, marking an upward revision from the previous estimate of +15% to +20%.
“Hotel demand remained very buoyant throughout the third quarter, with RevPAR up 15% year-on-year despite a very high comparable base”, the group said. However, “the first signs of a normalization in business growth are appearing after several quarters of intense recovery”, it added.
Focus on China, Japan and India
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Featured photo : ©Accor
