RESULTS ABOVE 2023 GUIDANCE
RESUMED ATTRACTIVE SHAREHOLDER RETURNS POLICY
CONFIDENCE IN GROWTH PROSPECTS FOR 2024
* * *
RevPAR UP 23% LFL
REVENUE UP 20% TO €5,056 MILLION
EBITDA UP 49% TO €1,003 MILLION
NET PROFIT GROUP SHARE UP 57% AT €633 MILLION
Sébastien Bazin, Chairman and Chief Executive Officer of Accor, said:
“Accor generated record-high results in 2023, with EBITDA breaking the €1 billion mark for the first time in its history. While there were numerous reasons for this success, the solid performances were above all attributable to the Group’s teams. I would like to thank them for their commitment and their know-how in an industry whose strength lies above all in the women and men on the ground daily who raise the profile of our brands with a passionate and generous sense of hospitality. Over the past year, the Group achieved growth in all segments and geographies, illustrating the strength of its asset light model, the efficiency of its organization based on the two divisions, Premium, Midscale and Economy on the one hand, and Luxury and Lifestyle on the other, the desirability of its brands, the strength of its distribution and loyalty tools, as well as its financial discipline.
While the geopolitical backdrop remains complex, 2024 is set to be rich in major international events which should continue to fuel growth and we start this new year with confidence. Accor is ideally positioned to continue its bold expansion and bring to life its vision of a pioneering, responsible hospitality industry that creates value for its shareholders and its partners.”
Driven by resolutely solid demand in 2023, Accor was able to set new records in terms of operating and financial performances. All regions and segments enjoyed strong growth after a year in 2022 marked by the post-Covid pandemic recovery. All performance indicators were in line or exceeded Group guidance in 2023.
This solid performance and the Group’s confidence in continued business growth enabled the Group to return a total of €676 million to its shareholders during the year.
In 2023, Accor opened 291 hotels, corresponding to 41,000 rooms, i.e., net network growth of 2.4% in the last 12 months. At end-December 2023, the Group had a hotel portfolio of 821,518 rooms (5,584 hotels) and a pipeline of 225,000 rooms (1,315 hotels).
Fourth quarter RevPAR
The Premium, Midscale and Economy (PM&E) division grew its RevPAR by 12% versus Q4 2022, still driven more by prices than the rise in occupancy rates.
- The Europe North Africa (ENA) region posted RevPAR up 8% relative to Q4
- In France, which represents 43% of the region’s room revenue, RevPAR growth stabilized. The Paris region has been impacted by an unfavorable calendar levelled off with major events in 2023, such as the Paris Motor Show, the SIAL food show and the SIMA Agriculture show, which did not take place during the year. The provinces continued to enjoy steady business levels.
- The United Kingdom, which represents 13% of the region’s room revenue, posted solid and balanced growth in RevPAR between London and other
- In Germany, 14% of the region’s room revenue, RevPAR continued to improve compared with previous quarters, notably thanks to Christmas markets. Nevertheless, occupancy rates still harbor strong upside potential. Indeed, they remain significantly behind pre-crisis levels.
- The Middle East, Africa & Asia-Pacific region reported a 19% increase in RevPAR compared with Q4 2022, benefiting from a considerable rebound in business in Asia.
- The Middle East Africa, 26% of room revenue in the region, continued to apply strong price increases buoyed by steady Leisure demand despite the conflict in Israel.
- South-East Asia, 29% of room revenue in the region, saw RevPAR growth comparable to the Middle East, mainly driven by prices and supported by Leisure demand.
- The Pacific, 26% of room revenue in the region, is now entering a normalization phase with more measured RevPAR growth, driven by occupancy rates in the fourth quarter.
- In China, 19% of hotel room revenue in the region, the recovery continued with marked RevPAR growth compared with Q4 Business is now slightly higher than the level seen in 2019, as was the case in the third quarter.
- The Americas region, which mainly reflects the performances of Brazil (65% of room revenue for the region), reported RevPAR growth up 15% compared with Q4 Business continued to benefit from price increases, notably supported by congresses and events which took place over the period.
The Luxury & Lifestyle (L&L) division reported an 8% increase in RevPAR compared with Q4 2022, driven mainly by higher occupancy rates.
- The Luxury segment, which accounts for 77% of the division’s room revenue, posted a 10% increase in RevPAR compared with Q4 2022. This increase was driven by the Asia-Pacific region where growth was Although occupancy rates improved clearly, they are still lagging pre-crisis levels by 5 points.
- Lifestyle RevPAR was stable compared with Q4 2022. The more rapid recovery in this segment in 2022 led to a less favorable basis of comparison, amplified by the soccer World Cup which took place in Qatar in Q4 2022. Adjusted from this event, RevPAR in the Lifestyle segment increased by 6% over the quarter.
Consolidated revenue
The Group reported revenue of €5,056 million in 2023, up 18% like-for-like (LFL) compared with 2022. This growth breaks down into a 17% increase for the Premium, Midscale and Economy (PM&E) division and 22% for the Luxury & Lifestyle division.
Scope effects, linked mainly to the full-year effect of Paris Society (acquired in 2022) and the takeover of Potel & Chabot (in October 2023) in the Luxury & Lifestyle division (the Hotel Assets & Other segment), positively contributed for €285 million.
Currency effects had a negative impact of €228 million, stemming mainly from the
Australian Dollar (-7%), the Egyptian Pound (-40%) and the Turkish Lira (-32%).
