(Reuters) – Accor reported on Thursday slightly greater growth than expected in its revenue per available room, helped in particular by the performance of high-potential geographic areas and the positive effect of the Paris Olympic Games.
Revenue per available room (RevPAR) – a key indicator of hotel industry performance – for the operator of the Ibis, Novotel and Sofitel chains increased by 5.3% for the period from July to the end of September, compared with a consensus provided by the group which expected 5.2%.
“These good performances are notably driven by the dynamism of our Luxury & Lifestyle brands, the continuation of sustained growth in our high-potential geographic areas and the positive effect, in France, of the Olympic Games of which Accor was one of the Premium partners,” said Sébastien Bazin, Chairman and CEO of Accor, in a press release.
Luxury is the division of Accor which is experiencing the most marked growth, with an increase in turnover of 18% year-on-year in the third quarter, linked to the takeover of the high-end event catering group Potel & Sculpin in October 2023.
France, which represents 45% of the accommodation turnover of hotels in the Europe North Africa region, also benefited from the Olympic Games which took place this summer in the French capital, which led to strong growth in RevPAR in Paris, adds the largest hotel group in Europe.
In China, the variation in Accor’s RevPAR was on the other hand negative, the group specifying the market remained difficult “as for many industries”.
Several players in the luxury sector, including LVMH and Kering, have reported in recent days results impacted by the slowdown in the Chinese economy and weak consumption in the world’s second largest economy.
“Although Chinese customers travel abroad, benefiting in particular South-East Asia, the domestic market remains penalized by the drop in consumption,” the group said in a press release.
Accor has also slightly raised the bottom of its gross operating surplus (EBE) forecast range for 2024, saying it expects between 1.100 to 1.125 billion euros, compared to 1.095 to 1.125 billion previously.
(Writing by Diana Mandiá, with Marta Maciag and Nathan Vifflin, editing by Kate Entringer)
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