Accor's Q3 2023 RevPAR surges by 15 per cent
Accor's hotel demand remained robust throughout Q3 2023, with a 15 per cent increase in RevPAR compared to the prior year, despite a high comparable basis
Accor, one of the world's leading hotel groups, announced a strong performance during the third quarter of 2023, showcasing a remarkable 15 per cent increase in Revenue per Available Room (RevPAR) compared to the same period in 2022. The company also upgraded its RevPAR growth guidance for 2023 and revealed that EBITDA is expected to improve, ranging between €955 million and €985 million.
Sébastien Bazin, Chairman and Chief Executive Officer of Accor, expressed his satisfaction with the results: "The Group’s strong performance during the quarter illustrates once again the strength of business momentum in all of our markets, notably in Asia, and for the brands in our two segments: premium, midscale, and economy, on the one hand, and luxury and lifestyle, on the other. For Accor, this is the sixth consecutive quarter of growth since the return to post-pandemic business levels. These positive trends and our strict financial and operational discipline enable us, once again, to raise our RevPAR and EBITDA guidance for the year."
Accor's hotel demand remained robust throughout Q3 2023, with a 15 per cent increase in RevPAR compared to the prior year, despite a high comparable basis. It's worth noting that in Q3 2022, RevPAR had already increased by 14 per cent compared with Q3 2019. The quarter saw a continuation of the underlying dynamics observed in previous quarters, with high average prices and an improvement in the occupancy rate, although it still slightly lagged behind the levels of 2019.
All regions and segments contributed to solid operating performances, even as the first signs of a normalisation of activity growth began to materialise after several quarters of intense recovery.
In the third quarter of 2023, Accor opened 73 hotels, adding approximately 9,200 rooms, resulting in a net unit growth of 3 per cent over the past 12 months. As of the end of September 2023, the group's hotel portfolio included 812,425 rooms across 5,537 hotels, with a pipeline of approximately 219,000 rooms in 1,273 hotels. The company confirmed its forecast of net unit growth in the network between 2 per cent and 3 per cent for the year 2023.
In terms of consolidated revenue, Accor reported €1,286 million for the third quarter of 2023, representing a 13 per cent increase like-for-like (LFL) compared to Q3 2022. This growth can be broken down into a 13 per cent increase for the Premium, Midscale, and Economy Division and a 17 per cent increase for the Luxury & Lifestyle Division.
Changes in the scope of consolidation, particularly the inclusion of Paris Society in the Luxury and Lifestyle Division (Hotel Assets and Other segment), contributed positively with €85 million. However, currency effects had a negative impact of €98 million, mainly from the Australian Dollar (-11 per cent), the US dollar (-7 per cent), and the Turkish Lira (-38 per cent).
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