Accor Group on Thursday reported a “solid” second quarter with revenue per available room buoyed by “sustained” pricing strength and occupancy growth particularly in its Premium, Midscale & Economy group.
Accor’s systemwide second-quarter RevPAR was €76, up 25.3 percent year over year, while average daily rate increased 15.9 percent year over year to €112. Occupancy was 67.4 percent, up 5.2 percentage points year over year.
“Pricing momentum continues, contributing about two-thirds of overall RevPAR growth, with occupancy gains contributing about one-third,” Accor CFO Martine Gerow during the company’s earnings call, which was her first with the company. Gerow also added that occupancy gains in the second quarter were “close to 2019 levels.”
Accor CEO and chairman Sébastien Bazin highlighted the performance of the company’s Premium, Midscale & Economy group last quarter. The group reported the highest second-quarter RevPAR gains for the hotel company, up 26 percent year over year to €63.
Following Accor’s first-half 2023 results, the group has raised its full-year 2023 expectations, with systemwide RevPAR projected to reach the “high end” of 15 to 20 percent, according to the hotel company.
“We definitely see solid growth in corporate and event,” Gerow said, adding that the company is “seeing very good recovery of events.”
“Thus far, we see very sustained demand going into summer,” Gerow said. Bazin attributed said momentum should endure thanks to “robust demand” for business and leisure travel.
Additional Results
Accor reported Q2 revenue of €238 million, up 23 percent year over year.
Accor reported RevPAR gains in Asia-Pacific, a region the hotel group combined with Middle East metrics in its reporting. The region, including United Arab Emirates, Dubai, China and Australia, reported the highest Q2 RevPAR gains across all markets, up 36.6 percent year over year to €56. Accor partially attributed the gains to a “considerable rebound in business in Asia.”
As of June 30, Accor’s pipeline consisted of more than 1,000 hotels and 169,000 guest rooms in Premium, Midscale & Economy group. Accor has 245 Luxury & Lifestyle hotels in the pipeline.
The hotel group also reported first-half 2023 results, with revenue at €2.41 billion—up 39.3 percent year over year—and a net profit at €248 million in the first half of 2023, up from €32 million reported in the first half of 2022.
