Accor reported Q3 2024 outcomes. Whereas RevPAR progress is normalizing, the group continues to learn from its diversification by way of geography and phase. The group’s two divisions—Premium, Midscale, and Financial system (PM&E) and Luxurious & Life-style (L&L)—each posted good performances. Through the third quarter of 2024, Accor opened 47 accommodations, representing 8,000 rooms, i.e. internet unit progress of three.2 % over the past 12 months. On the finish of September 2024, the group had a lodge portfolio of 838,826 rooms (5,638 accommodations) and a pipeline of 231,000 rooms (1,380 accommodations).
Highlights embody:
- Income up 12 % to €1,434 million
- RevPAR up 5.3 % versus Q3 2023
- Pipeline up 6 % versus finish of June 2024
- Confirmed RevPAR progress steerage for 2024
- EBITDA now anticipated between €1,100 million and €1,125 million in 2024
Sébastien Bazin, Chairman and CEO of Accor, mentioned, “As soon as once more this quarter, the group posted strong gross sales progress, according to its targets. This good efficiency was pushed particularly by the dynamism of our Luxurious & Life-style manufacturers, sustained progress in high-potential areas, and the constructive affect in France of the Olympic Video games, for which Accor was one of many Premium companions. By persevering with to mix operational agility, high quality of execution, and monetary self-discipline, we’re satisfied of our means to consolidate the solidity of our enterprise mannequin over the long run and ship important progress in our leads to 2024.”
Third Quarter 2024 RevPAR
The Premium, Midscale, and Financial system (PM&E) division posted a 5 % enhance in RevPAR in comparison with the third quarter of 2023, nonetheless principally pushed by costs relatively than by occupancy charges.
- The Europe North Africa (ENA) area posted a 6 % enhance in RevPAR in comparison with the third quarter of 2023.
- France, representing 45 % of room income for accommodations within the area, benefited from the Paris Olympic Video games. As anticipated, the occasion reported robust RevPAR progress in Paris. Within the provinces, enterprise was resilient through the summer season, however September was affected by a excessive comparability foundation linked to the Rugby World Cup held in September and October 2023.
- The UK, representing 12 % of the area’s lodge room income, posted barely constructive RevPAR progress according to earlier quarters, with comparable performances between London and the provinces.
- In Germany, representing 12 % of room income for accommodations within the area, RevPAR progress was stronger than within the two nations talked about above all through the summer season.
- The Center East, Africa, and Asia-Pacific area posted a 1 % enhance in RevPAR in comparison with the third quarter of 2023, with contrasted performances by nation.
- The Southeast Asia area, representing 34 % of room income for accommodations within the area, was the zone with the strongest RevPAR progress, pushed by worldwide demand, together with from China.
- The Center East, Africa area, representing 20 % of room income for accommodations within the area, was negatively impacted by the timing of non secular pilgrimages, together with the Hajj, and the delayed begin of the Umrah in Saudi Arabia. Added to that is the gradual reopening of 5 accommodations in Dubai, which have been closed following the floods in April. Nonetheless, we noticed a sequential enchancment within the exercise month after month.
- Within the Pacific, representing 26 % of the area’s room income, RevPAR progress was flat, penalized by weak financial progress and low shopper confidence.
- In China, representing 21 % of the area’s room income, RevPAR change was unfavorable. As in lots of industries, the market stays difficult. Though Chinese language clients are touring overseas, benefiting Southeast Asia particularly, the home market stays penalized by the decline in consumption.
- The Americas area, which primarily displays the efficiency of Brazil (60 % of the area’s room income), recorded a rise in RevPAR attributable to robust demand, significantly from enterprise clients and occasions in Sao Paulo.
The Luxurious & Life-style (L&L) division posted a 7 % enhance in RevPAR in comparison with the third quarter of 2023, primarily pushed by greater occupancy fee.
- The Luxurious phase, representing 73 % of the division’s room income, reported a 5 % enhance in RevPAR in contrast with the third quarter of 2023. This efficiency was pushed by all manufacturers and displays the varied traits noticed in PM&E’s markets, however with a slight premium.
- The Life-style division reported RevPAR progress of 14 % in contrast with the third quarter of 2023, as soon as once more pushed by resort accommodations, notably in Turkey and Egypt.
Group Income
For the third quarter of 2024, the group recorded income of €1,434 million, up 12 % in comparison with the third quarter of 2023. This progress breaks down as a 7 % enhance for the Premium, Midscale, and Financial system division and an 18 % enhance for the Luxurious & Life-style division.
Scope results, primarily associated to the acquisition of Potel & Chabot (in October 2023) within the Luxurious & Life-style division (Resort Property & Different phase), contributed by €56 million.
Foreign money results had a unfavorable affect of €30 million, primarily associated to the Brazilian actual (down 13 %), the Egyptian pound (down 37 %).
Premium, Midscale, and Financial system Income
Premium, Midscale, and Financial system, which incorporates charges from Administration & Franchise (M&F), Companies to Homeowners and Resort Property & Different of the Group’s Premium, Midscale, and Financial system manufacturers, generated income of €821 million, up 7 % in comparison with the third quarter of 2023. This enhance is broadly according to the extent of exercise within the third quarter.
The Administration & Franchise (M&F) enterprise posted income of €238 million, up 6 % in comparison with the third quarter of 2023 and barely exceeding RevPAR progress through the interval (up 5 %).
Companies to Homeowners income, which incorporates Gross sales, Advertising and marketing, Distribution, and Loyalty actions, in addition to shared companies and the reimbursement of lodge prices, amounted to €319 million, up 14 % in comparison with the third quarter of 2023 boosted by the companies supplied to the Olympic Video games organizing committee.
Resort Property & Different income amounted to €265 million, up 1 % in comparison with the third quarter of 2023. This phase, which is carefully tied to exercise in Australia, is affected by the present weak point of leisure demand.
Luxurious & Life-style Income
Luxurious & Life-style, which incorporates charges from Administration & Franchise (M&F), Companies to Homeowners and Resort Property, and Different of the group’s Luxurious & Life-style manufacturers, generated income of €635 million, up 18 % in comparison with the third quarter of 2023. This enhance displays the efficiency of this enterprise and a scope impact linked to the acquisition of Potel & Chabot.
The Administration & Franchise (M&F) enterprise posted income of €119 million, up 10 % in comparison with the third quarter of 2023, pushed by RevPAR progress (up 7 %) and the Life-style portfolio progress.
Companies to Homeowners income, which incorporates Gross sales, Advertising and marketing, Distribution, and Loyalty actions, in addition to shared companies and the reimbursement of lodge prices, amounted to €366 million, up 7 % in comparison with the third quarter of 2023 according to the RevPAR.
Resort Property & Different income amounted to €150 million, up 70 % in comparison with the third quarter of 2023. This exercise features a important scope impact linked to the acquisition of Potel & Chabot in October 2023 and the acquisition of Rikas in March 2024.
Administration & Franchise Income
The Administration & Franchise (M&F) enterprise recorded income of €358 million, up 7 % in comparison with the third quarter of 2023. This variation displays RevPAR progress within the numerous geographical areas. The primary distortions to notice are:
- Within the PM&E division for the ENA area, income progress benefited from the receipt of some termination charges;
- Within the PM&E division for the Americas area, income progress was negatively impacted by the change fee impact linked to the Brazilian actual;
- Within the Life-style phase, income progress was boosted by robust community progress in latest months.
Outlook for Full-Yr 2024
For full-year 2024, Accor confirms the next steerage:
- RevPAR progress between 4 % and 5 %
- Internet unit progress (NUG) between 3 % and 4 %
- Constructive contribution to EBITDA from Companies to Homeowners
And upgrades the next steerage:
- Group EBITDA now anticipated between €1,100 million and €1,125 million (beforehand between €1,095 million and €1,125 million)
Occasions from July 1, 2024, to October 24, 2024
AccorInvest
Since 2023, AccorInvest, which is accounted for underneath the fairness technique within the group’s consolidated statements, has initiated an asset disposal plan to be accomplished by 2025, geared toward optimizing its monetary construction by lowering its debt and enhancing the profitability of its asset portfolio.
In July 2024, AccorInvest finalized the refinancing of its financial institution borrowings, extending by two years the maturities due in 2025, together with a partial reimbursement. To facilitate the execution of this refinancing, a capital enhance within the type of most well-liked shares was subscribed to by the corporate’s shareholders, together with Accor for €67 million.
Moreover, the shareholders are dedicated to subscribe, by March 2025, to an extra issuance of most well-liked shares for optimum quantity equal to the primary issuance, and a operate of the quantity of asset disposal plan accomplished by AccorInvest. Following the success of its bond concern in September 2024 and progress on its asset disposal program, the utmost quantity is now restricted to €34 million.
Hybrid Bond Refinancing
In August 2024, Accor efficiently accomplished the October 2019 hybrid bond refinancing transaction:
- On August 28, Accor issued perpetual hybrid bonds for an quantity of €500 million with a 4.875 % coupon. The transaction was oversubscribed 5 occasions reflecting renewed traders’ confidence within the credit score high quality and the expansion potential of the group;
- On September 5, Accor efficiently accomplished the refinancing of its October 2019 hybrid bond following the completion of the Tender Provide on a perpetual hybrid bond (4.875 % coupon) for a complete quantity of €352.3 million. Following the completion and settlement of the Tender Provide which came about on September 9, greater than 70.46 % of the preliminary mixture principal quantity of the Current Bonds have been bought by Accor.
