Skift Take

Accor is having a happy, "Emily in Paris" kind of year. High-spending Americans thronged Europe this summer, helping the hotel giant beat expectations for revenue and profit.

Accor issued rosier forecasts for full-year results and its 2024 outlook on Thursday on the strength of better-than-expected performance this year at the Paris-based hotel group.

The group raised its forecast for growth in revenue per available room, a key industry metric. It guided investors to expect that metric to exceed 20% year-over-year this year. It had earlier in the year guided analysts to expect a 15-20% range for the figure.

The better revenue numbers will translate into greater profitability, the company said.

The group now expects this year to produce core earnings before interest, taxes, depreciation, and amortization of between $1.007 billion (€955 million) and $1.039 billion (€985 million) — up roughly 4% from a July forecasted range of $1.01 billion to $1.05 billion.

“We’re trying to have a balanced view between obviously being on the being within [our previously stated] guidance and taking into account whatever uncertainty there is in the current political environment,” said Martine Gerow, the group’s chief financial officer.

Accor Enjoys Hotel Pricing Power

Accor runs hotels in 110 countries but has a stronghold in Western Europe. There, it benefited this year from better-than-usual bookings from American visitors. The Americans generally had a higher tolerance for robust hotel pricing than European travelers, who have been hit with higher inflation and lower economic growth in Europe. Between July and September, Accor’s revenue per available room rose by 15% year-over-year, ahead of expectations.

At the company’s premium, midscale, and economy properties, the average room rate was up 10% year-over-year, and the occupancy rate was up three points, versus the prior year, at 71%.

Corporate group bookings have been increasing in volume, and their pricing has been increasing in line with inflation, Gerow said.

The hotel operator said it produced revenue of $1.36 billion (€1.29 billion) in the quarter, up 13% year-over-year.

It said it has seen an acceleration in its hotel development pipeline across the group, but more so in its luxury and lifestyle division.

Accommodations Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.

Read the full methodology behind the Skift Travel 200.


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Tags: accor, earnings, future of lodging, hotel development, hotel earnings

Photo credit: Lobby of the Pullman London St. Pancras, part of the Accor empire. Source: Accor. Accor

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