Accor Reviews This fall and Full-12 months 2024 Outcomes — LODGING

All through 2024, the hospitality sector proved resilient in a contrasting shopper surroundings, in accordance with Accor. The group’s diversification by way of geography and phase enabled it to submit robust exercise. In consequence, each divisions—Premium, Midscale, and Financial system (PM&E) and Luxurious and Way of life (L&L)—reported outcomes in keeping with the outlook introduced on the group’s June 2023 Investor Day.

In 2024, Accor opened 293 inns, equivalent to greater than 50,000 rooms, i.e., web community development of three.5 % in these 12 months. In December 2024, the group had a lodge portfolio of 850,285 rooms (5,682 inns) and a pipeline of greater than 233,000 rooms
(1,381 inns).

Sébastien Bazin, chairman and CEO, Accor, stated, “Ambition, self-discipline, and excessive requirements are the three pillars which have guided Accor’s actions in 2024. They’ve as soon as once more enabled us to submit report outcomes, in keeping with every of the aims we’ve got set for the group. This efficiency displays the extraordinary dedication of our groups, the energy of our manufacturers and our digital instruments, the renewed confidence of our companions, and the effectivity of our group primarily based on two autonomous and complementary divisions. Due to this vigorous development, we are going to suggest an elevated return to shareholders on the subsequent Basic Assembly. On these stable foundations, and by persevering with to regulate our future, we’re approaching 2025 with confidence and the ambition to as soon as once more ship wonderful outcomes.”

Fourth Quarter RevPAR

The PM&E division posted a 4 % enhance in RevPAR in contrast with the fourth quarter of 2023, pushed equally by costs and occupancy.

• The Europe North Africa (ENA) area posted a 2 % enhance in RevPAR in contrast with This fall 2023, pushed by greater occupancy charges. The three essential nations pursued the momentum seen within the first 9 months of the 12 months, with Germany outperforming France and the UK.
• In France, which accounts for 42 % of the area’s room income, the change in RevPAR in Paris was barely adverse within the fourth quarter, as a consequence of an unfavorable foundation of comparability with the Rugby World Cup in October 2023. Nevertheless, this development turned optimistic once more in December 2024, due to robust worldwide demand, significantly from the USA, the reopening of Notre Dame de Paris, and the post-Olympic Video games impact. In the meantime, efficiency within the provinces was much less risky, with RevPAR stabilizing within the fourth quarter of 2024.
• In the UK, which accounts for 13 % of the area’s room income, each London and the provinces posted weak RevPAR development, in keeping with the primary three quarters of the 12 months.
• In Germany, which accounts for 13 % of the area’s room income, RevPAR development was barely stronger than in France and the UK. Occupancy, 5 factors beneath the extent of the fourth-quarter 2019 degree, stays an necessary vector for future development.
• The Center East, Africa, and Asia-Pacific area rebounded within the quarter, posting a 5 % enhance in RevPAR in contrast with the fourth quarter of 2023. Two-thirds of this enhance in RevPAR was pushed by costs, and one-third by occupancy charges.
• Within the Center East-Africa area, which accounts for twenty-four % of the area’s room income, Saudi Arabia defined the rebound in RevPAR. Certainly, within the third quarter of 2024, Saudi Arabia needed to take care of a troublesome foundation of comparability linked to spiritual pilgrimages. This nation is benefiting from robust demand, mirrored in an occupancy price now at 70 %, 10 factors above the pre-crisis degree.
• Southeast Asia, which accounts for 33 % of the area’s room income, posted double-digit RevPAR development, reflecting the area’s rising attraction. Occupancy now at 71 % exceeds its 2019 degree.
• The Pacific, which accounts for 25 % of the area’s room income, resumed optimistic development within the fourth quarter, pushed by robust demand from leisure clients, gained over by a sexy pricing coverage.
• In China, which accounts for 18 % of the area’s room income, the scenario improved in This fall 2024, though the change in RevPAR remained adverse in comparison with This fall 2023.
• The Americas area, which primarily displays the efficiency of Brazil (61 % of the area’s room income), posted a 12 % enhance in RevPAR in contrast with the fourth quarter of 2023.
• Brazil, whose occupancy price returned to its pre-crisis degree within the second quarter of 2022, continued to report an increase in occupancy and benefited from greater costs.

The L&L division posted its finest efficiency for the 12 months with a ten % enhance in RevPAR in contrast with This fall 2023, pushed by each costs and occupancy.

• Luxurious, which accounts for 74 % of the division’s room income, posted a 9 % enhance in RevPAR in contrast with the fourth quarter of 2023. RevPAR development was stable throughout all manufacturers and areas, outperforming the PM&E phase in comparable areas and demonstrating the resilience of the Luxurious phase in inns.
• Way of life posted an 11 % enhance in RevPAR in contrast with the fourth quarter of 2023. This enhance was in keeping with the momentum noticed within the first three quarters of 2024. The resort lodge phase once more recorded a stable quarter in Turkey, Egypt, and the United Arab Emirates. This demonstrates the ever-growing attraction for distinctive experiences.

Consolidated Income

The group reported income of €5,606 million in 2024, up 11 % from 2023. This development breaks down right into a 5 % enhance for the PM&E division and 19 % for the L&L division.

Scope results, linked primarily to the full-year impact of Potel & Chabot (takeover in October 2023) and the acquisition of Rikas (in March 2024) within the L&L division (the Resort Belongings & Different exercise), positively contributed to €223 million.

Foreign money results had a adverse impression of €117 million, stemming primarily from the Turkish lira (28 %), the Egyptian pound (32 %), and the Brazilian actual (7 %).

PM&E Income

PM&E, which incorporates charges from Administration & Franchise (M&F), Companies to Homeowners, and Resort Belongings & Different actions of the group’s PM&E manufacturers, generated income of €3,103 million, up 5 % versus full-year 2023. This enhance displays the lodge enterprise recorded over the interval.

The Administration & Franchise (M&F) income stood at €899 million, up 5 % versus full-year 2023, in keeping with the rise in RevPAR over the interval (up 4.9 %).

Companies to Homeowners income, which embody Gross sales, Advertising and marketing, Distribution, and Loyalty division, in addition to shared companies and reimbursement of prices incurred on behalf of lodge house owners, totaled €1,158 million, up 8 % versus full-year 2023. This enhance, stronger than the change in RevPAR, displays an enchancment in our distribution channel combine.

Resort Belongings & Different income was up 1 % versus full-year 2023. This exercise is strongly linked to enterprise in Australia and Brazil. The disposal of Accor Trip Membership in March 2024, the gradual disposal of some leaseholds, and alternate price fluctuations mitigated the stable enterprise efficiency recorded for every nation.

L&L Income

L&L, which incorporates charges from Administration & Franchise (M&F), Companies to Homeowners, and Resort Belongings & Different actions of the group’s L&L manufacturers, generated income of €2,587 million, up 19 % versus full-year 2023. This enhance additionally displays the sustained enterprise exercise recorded over the interval, in addition to the aforementioned scope results.

The Administration & Franchise (M&F) income stood at €494 million, up 11 % versus full-year 2023, pushed by the change in RevPAR (up 7.3 %), in addition to the tempo of recent lodge openings and the rise in residential charges within the Way of life phase. The efficiency of Administration & Franchise is detailed within the pages hereafter.

Companies to Homeowners income, which embody Gross sales, Advertising and marketing, Distribution, and Loyalty division, in addition to shared companies and reimbursement of prices incurred on behalf of lodge house owners, totaled €1,479 million, up 9 % versus full-year 2023.

Resort Belongings & Different income was up 66 % versus FY 2023. This exercise features a vital scope impact linked to the full-year impression of Potel & Chabot (takeover in October 2023) and the acquisition of Rikas (in March 2024).

Administration & Franchise (M&F) Income

Administration & Franchise income got here to €1,393 million, up 7 % in contrast with 2023. This transformation displays RevPAR development within the Group’s numerous areas and segments (up 5.7 % versus full-year 2023).

Within the PM&E division, it needs to be famous that the Americas, primarily Brazil, have been affected by the autumn within the Brazilian actual which started in Could 2024.

Within the L&L division, the tip of incentive charge exemptions in some inns, notably below the Sofitel and Fairmont manufacturers, had a slight downward impression on M&F income development within the Luxurious phase.

Consolidated Recurring EBITDA

Consolidated Recurring EBITDA got here to €1,120 million for 2024, a brand new report for Accor and up 12 % versus full-year 2023. This efficiency is because of the resilience of RevPAR, portfolio development, margin enchancment within the M&F enterprise, strict price self-discipline in Companies to Homeowners, and the event of the Resort Belongings & Different enterprise (significantly within the L&L division) mixed with a lot of acquisitions (Rikas and Potel & Chabot).

PM&E Recurring EBITDA

The PM&E division generated recurring EBITDA of €809 million, up 8 % versus full-year 2023.

Administration & Franchise (M&F) reported recurring EBITDA of €655 million, up 7 % versus full-year 2023, reflecting the resilience of RevPAR, portfolio development, and management of the price base.

Companies to Homeowners Recurring EBITDA got here to €43 million in 2024, in keeping with the group’s dedication to reaching optimistic recurring EBITDA for this enterprise.

Recurring EBITDA for Resort Belongings & Different was down 3 % versus full-year 2023.

Luxurious & Way of life Recurring EBITDA

The L&L division generated recurring EBITDA of €427 million, up 21 % versus full-year 2023.

Administration & Franchise (M&F) posted recurring EBITDA of €333 million, up 12 % versus full-year 2023 with stable RevPAR development, portfolio development, and working leverage.

Recurring EBITDA for Companies to Homeowners amounted to €20 million in full-year 2024, additionally optimistic, in keeping with the group’s dedication.

Recurring EBITDA for Resort Asset & Different additionally displays the mixing of Potel & Chabot since October 2023 and the acquisition of Rikas in March 2024.

Internet Revenue

Internet revenue, group share was €610 million in 2024, in contrast with €633 million in 2023. Diluted earnings per share rose to €2.33 from €2.22 in 2023, due to a decrease common variety of shares excellent following share buybacks.

Depreciation and amortization of €341 million in 2024, in contrast with €279 million in 2023, elevated with the full-year impression of the consolidation of Potel & Chabot, the sale-leaseback of the group’s headquarters in 2023, and the expansion of Paris Society.

The advance within the share of web revenue of equity-accounted investments to €188 million in 2024, in contrast with €44 million in 2023, is because of AccorInvest, which has maintained its exercise, independently of its asset disposal plan, and recorded capital good points on its property bought.

Internet monetary bills of €124 million in 2024, in contrast with €100 million in 2023, have risen because of greater debt stability and the truthful worth adjustment of some monetary property.

Revenue taxes, at €193 million for 2024, in contrast with €39 million in 2023, returned to a degree in keeping with enterprise exercise. 2023 had benefited from substantial deferred tax revenue, significantly in France.

Money Circulation Technology

In 2024, the group’s recurring free money move improved from €596 million in 2023 to €614 million in 2024. The money conversion price subsequently stands at 55 %, in keeping with the group’s goal.

Curiosity paid rises barely between 2023 and 2024 as a consequence of the next general quantity of gross debt.

Recurring investments, which incorporates “key cash” paid by HotelServices for improvement in addition to digital and IT investments, was just about steady in contrast with 2023 at €221 million.

Change in working capital was optimistic and in keeping with 2023, as soon as adjusted for the compensation by AccorInvest of the stability of charges deferred within the context of the COVID-19 pandemmic, which had a optimistic impression on 2023.

Group web monetary debt on Dec. 31, 2024, got here to €2,495 million, versus €2,074 million on Dec. 31, 2023.

On Dec.31, 2024, Accor’s common price of debt was 2.5 %, steady in contrast with 2023, with a mean maturity of over three years.

On the finish of December 2024, mixed with the undrawn credit score facility of €1 billion signed in 2023, Accor had a liquidity place of €2.2 billion.

Outlook

The group confirmed its medium-term development prospects as disclosed through the Investor Day on June 27, 2023:

• Annualized RevPAR development of between 3 % and 4 % (CAGR 2023-27)
• Common annual community enlargement of between 3 % and 5 % (CAGR 2023-27)
• M&F income development of between 6 % and 10 % (CAGR 2023-27)
• A optimistic Recurring EBITDA contribution from Companies to Homeowners
• Recurring EBITDA development of between 9 % and 12 % (CAGR 2023-27)
• Recurring free money move conversion in extra or equal to 55 %
• A shareholder payout of round €3 billion over 2023-2027 together with notably a share buy-back program for an quantity of €440 million in full-year 2025.

Dividends

Primarily based on the 2024 outcomes, the dividend distribution coverage carried out since 2019 (established primarily based on recurring free money move and a payout price of fifty %), and as beneficial by the Board of Administrators, Accor will undergo the approval of the Annual Shareholders’ Assembly of Could 28, 2025, the cost of an extraordinary dividend of €1.26 per share, which is 7 % above the dividend distributed in 2024.

Governance

At its assembly on February 19, 2025, the Board of Administrators as soon as once more confirmed the strategic significance of the prospects set for the Group by 2027 as a part of its Capital Market Day and the pursuit of the roadmap undertaken by the workforce to realize these aims. On this context, it unanimously determined to suggest upfront the renewal of the mandate of Sébastien Bazin on the group’s subsequent Annual Basic Assembly scheduled for Could 28, 2025, for the statutory time period of three years.

The Board additionally unanimously determined to nominate, as of the date of the subsequent Annual Basic Assembly and topic to the renewal of her time period of workplace as director, Isabelle Simon as vice-chair of the Board of Administrators and lead director, changing Iris Knobloch.

Occasions in 2024

• Sale of Accor Trip Membership: On March 1, 2024, Accor bought to Journey + Leisure its timeshare enterprise in Australia, New Zealand, and Indonesia, Accor Trip Membership, primarily based on an enterprise worth of AUD77 million (i.e. €47 million). This settlement additionally supplies for the institution of an unique franchise contract for the long run improvement by Journey + Leisure of recent timeshare properties below Accor manufacturers in Asia-Pacific, the Center East, Africa, and Turkey. This transaction is a part of the continuation of the group’s asset-light technique and was finalized on the finish of Q1 2024.
• Accor and IDeaS enter into a world partnership: On Feb. 28, 2024, Accor introduced the conclusion of a world income administration partnership for the Accor portfolio. With the adoption of the suite of IDeaS superior RMS options, Accor continues to remodel its enterprise technique for the good thing about its inns, house owners, and managers. Accor depends on IDeaS to maintain its income administration technique by deploying applied sciences, thereby securing a aggressive benefit and strengthening worth creation throughout its world portfolio. Primarily based on strategic pillars, these new instruments allow inns to profit from dynamic pricing, income, and revenue optimization, and a clearer understanding of the aggressive panorama.
• Bond concern: On March 4, 2024, Accor positioned a €600 million seven-year bond concern with a coupon of three.875 %. The deal was greater than 4 instances oversubscribed, reflecting Accor’s robust credit score high quality and investor confidence in its enterprise mannequin, development potential, and monetary construction. This transaction allowed the group to make the most of market circumstances and prolong the typical maturity of its debt.
• Rikas takeover: On March 8, 2024, Accor, by its subsidiary Ennismore, acquired a 51 % stake in Rikas Eating places Administration LLC, a hospitality firm primarily based in Dubai, specializing in managing high-end eating places and eating institutions.
• Share buyback: On April 5, 2024, Accor introduced the completion of its €400 million share buyback program introduced on Feb. 22, 2024. An preliminary €275 million share buyback tranche was executed by a share buy settlement signed with Jinjiang Worldwide on March 11, 2024. The transaction concerned seven million shares at an Accor share value of €39.22. The remaining quantity of the share buyback program, launched on March 20, 2024, for €125 million was finalized on April 4, 2024, with the acquisition of two,923,228 shares at a mean value of €42.93. On completion of this program, the group acquired 9,923,228 shares at a mean value of €40.31. These shares have been canceled.
• Dividends: On June 7, 2024, primarily based on the 2023 outcomes and the dividend distribution coverage carried out since 2019 (primarily based on the distribution of fifty % of recurring free money move), Accor paid out an extraordinary dividend of €1.18 per share, representing a complete quantity of €286 million.
• LVMH and Accor be part of forces to steer Orient Categorical in the direction of new horizons: On June 13, 2024, LVMH joined forces with Accor by a strategic funding within the Orient Categorical model, the corporate that can function the long run inns and trains, in addition to within the entity that owns the 2 sailboats. The primary sailboat is at present below building at Chantiers de l’Atlantique and the 2 teams search a 3rd companion for this new exercise. By partnering within the renewal of this iconic model, LVMH brings its know-how to services and products, illustrated on the planet of journey by the Venice Simplon-Orient-Categorical practice and the 5 different trains additionally operated by Belmond around the globe.
• Accor and Amadeus announce a brand new collaboration: On June 5, 2024, Amadeus and Accor strengthened their strategic partnership to deploy the Amadeus central reservation system (ACRS) throughout the group’s whole lodge portfolio. Amadeus’ cloud-based know-how permits Accor to extend its revenues, optimize its distribution methods, and additional personalize its relationships with its clients.
• Our Habitas: On June 20, 2024, Ennismore introduced the addition of Our Habitas to its world collective of way of life manufacturers. Our Habitas, a model whose mission is to create human connection, brings a brand new dimension to the Ennismore collective of manufacturers. In return, Ennismore provides Our Habitas entry to its operational experience and worldwide improvement capabilities.
• AccorInvest: Since 2023, AccorInvest, which is accounted for below the fairness methodology 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 €68 million. Moreover, the shareholders are dedicated to subscribe, by March 2025, to an extra issuance of most well-liked shares for a most 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 accomplished the October 2019 hybrid bond refinancing transaction. On Aug. 28, 2024, Accor issued perpetual hybrid bonds for an quantity of €500 million with a 4.875 % coupon. The transaction was oversubscribed 5 instances reflecting renewed traders’ confidence within the credit score high quality and the expansion potential of the group. On Sept. 5, 2024, Accor accomplished the refinancing of its October 2019 hybrid bond following the completion of the Tender Provide on a perpetual hybrid bond (2.625 % coupon) for a complete quantity of €352.3 million. Following the completion and settlement of the Tender Provide which occurred on Sept. 9, 2024, greater than 70.46 % of the preliminary combination principal quantity of the Present Bonds have been bought by Accor.