Driven by solid demand in 2023, Accor was able to set new records in terms of operating and financial performances. All regions and segments reported strong growth and 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 with 41,000 rooms for net network growth of 2.4 percent in the last 12 months. At the end of December , 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 division grew its RevPAR 12 percent from Q4 2022, still driven more by prices than the rise in occupancy rates.
- The Europe North Africa region posted RevPAR up 8 percent relative to Q4.
- In France, which represents 43 percent 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 percent of the region's room revenue, posted solid and balanced growth in RevPAR between London and other markets.
- In Germany, 14 percent 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 and Asia-Pacific region reported a 19 percent increase in RevPAR compared with Q4 2022, benefiting from a considerable rebound in business in Asia.
- The Middle East Africa, 26 percent 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 percent 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 percent 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 percent 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 percent of room revenue for the region), reported RevPAR growth up 15 percent compared with Q4 business continued to benefit from price increases, notably supported by congresses and events which took place over the period.
Accor’s luxury and lifestyle division reported an 8 percent increase in RevPAR compared with Q4 2022, driven mainly by higher occupancy rates.
- The luxury segment, which accounts for 77 percent of the division's room revenue, posted a 10 percent 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 percent over the quarter.
Earnings
Consolidated earnings before interest, taxes, depreciation and amortization came to €1.003 billion for 2023, a record-high level, which the company credits to “strong recovery in revenue.”
The premium, midscale and economy division generated EBITDA of €750 million, up 35 percent like for like compared with 2022. The luxury and lifestyle division generated EBITDA of €354 million, up 82 percent LFL relative to 2022.
Net profit, group share, was €633 million in 2023, compared with €402 million in 2022.
Outlook
The group confirmed its medium-term growth prospects as disclosed during the Investor Day on June 27:
- Annualized RevPAR growth of between 3 percent and 4 percent (CAGR 2023-27)
- Average annual network expansion of between 3 percent and 5 percent (CAGR 2023-27)
- EBITDA growth of between 9 percent and 12 percent (CAGR 2023-27)