(Reuters) – Accor, Europe’s largest hotel group, reported operating profit on Thursday that beat market expectations and its own estimates, citing “very good” activity in December.
Boosted by demand for shorter trips, European hotel chains have seen bookings return to levels comparable to 2019, before the Covid-19 pandemic grounded international flights.
The group, which manages the high-end chains Sofitel and Pullman and low-cost brands like Ibis, posted a gross operating surplus (EBITDA, Ebitda) of 675 million euros for the year 2022, better than expected. Analysts were counting on 640.3 million euros, and Accor had anticipated EBITDA between 610 and 640 million euros.
“We are exceeding our financial and extra-financial objectives and can look to the future with serenity,” commented Sébastien Bazin, Chairman and CEO of Accor, in a press release.
Accor’s revenue per available room (RevPAR), a key indicator of hotel industry performance, rose 15% in the fourth quarter, exceeding the pre-crisis level by 2% in 2019.
For 2023, the group is targeting an increase in RevPAR between 5% and 9% compared to last year at constant scope and exchange rates.
Its regional division comprising India, Africa, Middle East and Turkey saw a 73% increase in RevPAR in the fourth quarter compared to 2019, boosted by strong demand during the FIFA World Cup in Qatar.
(Report Tristan Chabba and Anna Mackenzie in Gdansk; Lina Golovnya, editing by Kate Entringer)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
