Accor’s performance continues to exceed expectations in the face of rising interest rates.
57% RevPAR growth for Accor. First quarter revenue and RevPAR growth continue to come in stronger than anticipated. Accor reported 1Q23 earnings on Thursday with year-over-year RevPAR for the quarter up a whopping 57% and up 19% over 1Q19. It also said it expects double digit RevPAR growth for the year (10% to 20%), citing the end of China’s zero-COVID as the accelerator. Accor opened 36 hotels, for around 4,400 rooms, and has thus achieved net network growth of 2.9% in the last 12 months. At the end of 1Q, the group had a hotel portfolio of 800,321 rooms (5,444 hotels) and a pipeline of around 214,000 rooms (1,241 hotels). Accor reported 1Q23 revenue of €1,139 million, up 54% like-for-like versus 1Q22. By activity, this growth breaks down into a 71% increase for management and franchise, a 60% increase for services to owners, and a 37% increase for hotel assets and other. By division (excluding Holding & Intercos), €681 million of revenue was generated by the Premium, Midscale and Economy divisions, up 62% versus last year, and €477 million by Luxury & Lifestyle, up 52% versus 1Q22. The management and franchise business generated revenue of €268 million, up 71% versus 1Q22.