The Accor Group released its third quarter revenue report today, 25th October 2024.

During the quarter, the hospitality group opened 47 hotels, representing 8,000 rooms and registering a net unit growth of 3.2 percent over the last 12 months. 

As of 30th September, Accor had a hotel portfolio of 838,826 rooms in 5,638 hotels and a pipeline of  231,000 rooms in 1,380 hotels.

Accor chair and chief executive Sébastien Bazin said of this quarter’s progress: “Once again this quarter, the Group posted solid sales growth, in line with its targets.  This good performance was driven in particular by the dynamism of our Luxury &  Lifestyle brands, sustained growth in high-potential regions and the positive impact in  France of the Olympic Games, for which Accor was one of the Premium partners. By  continuing to combine operational agility, quality of execution and financial discipline,  we are convinced of our ability to consolidate the solidity of our business model over the  long term and deliver significant growth in our results in 2024.”

Q3-2024 in a nutshell for PM&E

Accor’s Premium, Midscale and Economy (PM&E) division posted a five percent increase in  RevPAR compared to the third quarter of 2023, still mostly driven by prices rather than  by occupancy rates.

The Europe North Africa (ENA) region posted a six percent increase in RevPAR  compared to the third quarter of 2023. Of this, France represented 45 percent of total room revenues, mostly due to bookings during the Paris Olympic Games. The United Kingdom and Germany accounted for 12 percent each.

The Middle East, Africa & Asia-Pacific region posted a 1 percent increase in RevPAR  compared to the third quarter of 2023, with contrasted performances by country. Southeast Asia made up 34 percent of room revenue for hotels in the  region, becoming the zone with the strongest RevPAR growth which was driven by  international demand.

The Middle East and Africa, on the other hand, represented 20 percent of room revenue for hotels in  the region, though this was negatively impacted by the timing of religious pilgrimages,  including the Hajj, and the delayed start of the Umrah in Saudi Arabia. The Pacific accounted for 26 percent of the region’s room revenue, though RevPAR growth was flat, penalised by weak economic growth and low consumer  confidence.

China made up 21 percent of the region’s room revenue, but RevPAR change was negative. As in many industries, the market remains challenging. Although Chinese customers are traveling abroad, benefiting Southeast Asia in particular, the domestic market remains penalized by the decline in  consumption.

A look at the Luxury & Lifestyle segment

The Luxury & Lifestyle (L&L) division posted a seven percent increase in RevPAR compared to  the third quarter of 2023, mainly driven by higher occupancy rate.  

The Luxury segment covered 73 percent of the division’s room revenue, reporting a five percent increase in RevPAR compared with the third quarter of 2023. This  performance was driven by all brands and reflects the various trends observed in PM&E’s markets, but with a slight premium.  

On the other hand, the Lifestyle division reported RevPAR growth of 14 percent compared with the third quarter of 2023, once again driven by resort hotels, notably in Turkey and Egypt.