Accor's Hotels Got a Boost From Luxury Spending and the Olympics
Skift Take
Despite advance skepticism, the Paris Olympics provided a sugar rush for Accor's hotels. But the company may need more than Olympic-sized live tourism events to sustain its ambitions for rapid growth worldwide.
Accor raised its profit outlook after luxury hotels and the Paris Olympics helped drive growth, even as the French hospitality giant grappled with weakness in China's domestic market.
"Luxury hotels saw RevPAR [revenue per available room] growth was sustained at plus 7% with both rates and occupancy gaining," said CFO Martine Gerow, in a third-quarter call with analysts Thursday.
Accor's strategy of diversifying across geographies and price points appeared to be paying off.
The company raised its earnings guidance for the year. It now expects its annual EBITDA, a measure of profit, to be between $1.18 billion and $1.22 billion (€1.1 billion and €1.125 billion).
💎 Luxury Leads the Way Accor's Luxury & Li