Accor reported Q3 2024 outcomes. Whereas RevPAR progress is normalizing, the group continues to learn from its diversification by way of geography and section. The group’s two divisions—Premium, Midscale, and Economic system (PM&E) and Luxurious & Life-style (L&L)—each posted good performances. Through the third quarter of 2024, Accor opened 47 lodges, representing 8,000 rooms, i.e. internet unit progress of three.2 % over the past 12 months. On the finish of September 2024, the group had a resort portfolio of 838,826 rooms (5,638 lodges) and a pipeline of 231,000 rooms (1,380 lodges).
Highlights embody:
- Income up 12 % to €1,434 million
- RevPAR up 5.3 % versus Q3 2023
- Pipeline up 6 % versus finish of June 2024
- Confirmed RevPAR progress steering for 2024
- EBITDA now anticipated between €1,100 million and €1,125 million in 2024
Sébastien Bazin, Chairman and CEO of Accor, stated, “As soon as once more this quarter, the group posted stable gross sales progress, consistent with its targets. This good efficiency was pushed specifically by the dynamism of our Luxurious & Life-style manufacturers, sustained progress in high-potential areas, and the constructive affect in France of the Olympic Video games, for which Accor was one of many Premium companions. By persevering with to mix operational agility, high quality of execution, and monetary self-discipline, we’re satisfied of our capacity to consolidate the solidity of our enterprise mannequin over the long run and ship important progress in our ends in 2024.”
Third Quarter 2024 RevPAR
The Premium, Midscale, and Economic system (PM&E) division posted a 5 % improve in RevPAR in comparison with the third quarter of 2023, nonetheless principally pushed by costs moderately than by occupancy charges.
- The Europe North Africa (ENA) area posted a 6 % improve in RevPAR in comparison with the third quarter of 2023.
- France, representing 45 % of room income for lodges within the area, benefited from the Paris Olympic Video games. As anticipated, the occasion reported robust RevPAR progress in Paris. Within the provinces, enterprise was resilient in the course of the summer time, however September was affected by a excessive comparability foundation linked to the Rugby World Cup held in September and October 2023.
- The UK, representing 12 % of the area’s resort room income, posted barely constructive RevPAR progress consistent with earlier quarters, with comparable performances between London and the provinces.
- In Germany, representing 12 % of room income for lodges within the area, RevPAR progress was stronger than within the two international locations talked about above all through the summer time.
- The Center East, Africa, and Asia-Pacific area posted a 1 % improve in RevPAR in comparison with the third quarter of 2023, with contrasted performances by nation.
- The Southeast Asia area, representing 34 % of room income for lodges within the area, was the zone with the strongest RevPAR progress, pushed by worldwide demand, together with from China.
- The Center East, Africa area, representing 20 % of room income for lodges within the area, was negatively impacted by the timing of spiritual pilgrimages, together with the Hajj, and the delayed begin of the Umrah in Saudi Arabia. Added to that is the gradual reopening of 5 lodges in Dubai, which had been closed following the floods in April. Nonetheless, we noticed a sequential enchancment within the exercise month after month.
- Within the Pacific, representing 26 % of the area’s room income, RevPAR progress was flat, penalized by weak financial progress and low shopper confidence.
- In China, representing 21 % of the area’s room income, RevPAR change was detrimental. As in lots of industries, the market stays difficult. Though Chinese language prospects are touring overseas, benefiting Southeast Asia specifically, the home market stays penalized by the decline in consumption.
- The Americas area, which primarily displays the efficiency of Brazil (60 % of the area’s room income), recorded a rise in RevPAR as a consequence of robust demand, significantly from enterprise prospects and occasions in Sao Paulo.
The Luxurious & Life-style (L&L) division posted a 7 % improve in RevPAR in comparison with the third quarter of 2023, primarily pushed by greater occupancy fee.
- The Luxurious section, representing 73 % of the division’s room income, reported a 5 % improve in RevPAR in contrast with the third quarter of 2023. This efficiency was pushed by all manufacturers and displays the varied tendencies noticed in PM&E’s markets, however with a slight premium.
- The Life-style division reported RevPAR progress of 14 % in contrast with the third quarter of 2023, as soon as once more pushed by resort lodges, notably in Turkey and Egypt.
Group Income
For the third quarter of 2024, the group recorded income of €1,434 million, up 12 % in comparison with the third quarter of 2023. This progress breaks down as a 7 % improve for the Premium, Midscale, and Economic system division and an 18 % improve for the Luxurious & Life-style division.
Scope results, primarily associated to the acquisition of Potel & Chabot (in October 2023) within the Luxurious & Life-style division (Resort Property & Different section), contributed by €56 million.
Foreign money results had a detrimental affect of €30 million, primarily associated to the Brazilian actual (down 13 %), the Egyptian pound (down 37 %).
Premium, Midscale, and Economic system Income
Premium, Midscale, and Economic system, which incorporates charges from Administration & Franchise (M&F), Providers to Homeowners and Resort Property & Different of the Group’s Premium, Midscale, and Economic system manufacturers, generated income of €821 million, up 7 % in comparison with the third quarter of 2023. This improve is broadly consistent with the extent of exercise within the third quarter.
The Administration & Franchise (M&F) enterprise posted income of €238 million, up 6 % in comparison with the third quarter of 2023 and barely exceeding RevPAR progress in the course of the interval (up 5 %).
Providers to Homeowners income, which incorporates Gross sales, Advertising and marketing, Distribution, and Loyalty actions, in addition to shared providers and the reimbursement of resort prices, amounted to €319 million, up 14 % in comparison with the third quarter of 2023 boosted by the providers supplied to the Olympic Video games organizing committee.
Resort Property & Different income amounted to €265 million, up 1 % in comparison with the third quarter of 2023. This section, which is intently tied to exercise in Australia, is affected by the present weak spot of leisure demand.
Luxurious & Life-style Income
Luxurious & Life-style, which incorporates charges from Administration & Franchise (M&F), Providers to Homeowners and Resort Property, and Different of the group’s Luxurious & Life-style manufacturers, generated income of €635 million, up 18 % in comparison with the third quarter of 2023. This improve displays the efficiency of this enterprise and a scope impact linked to the acquisition of Potel & Chabot.
The Administration & Franchise (M&F) enterprise posted income of €119 million, up 10 % in comparison with the third quarter of 2023, pushed by RevPAR progress (up 7 %) and the Life-style portfolio progress.
Providers to Homeowners income, which incorporates Gross sales, Advertising and marketing, Distribution, and Loyalty actions, in addition to shared providers and the reimbursement of resort prices, amounted to €366 million, up 7 % in comparison with the third quarter of 2023 consistent with the RevPAR.
Resort Property & Different income amounted to €150 million, up 70 % in comparison with the third quarter of 2023. This exercise features a important scope impact linked to the acquisition of Potel & Chabot in October 2023 and the acquisition of Rikas in March 2024.
Administration & Franchise Income
The Administration & Franchise (M&F) enterprise recorded income of €358 million, up 7 % in comparison with the third quarter of 2023. This variation displays RevPAR progress within the varied geographical areas. The principle distortions to notice are:
- Within the PM&E division for the ENA area, income progress benefited from the receipt of some termination charges;
- Within the PM&E division for the Americas area, income progress was negatively impacted by the change fee impact linked to the Brazilian actual;
- Within the Life-style section, income progress was boosted by robust community progress in current months.
Outlook for Full-Yr 2024
For full-year 2024, Accor confirms the next steering:
- RevPAR progress between 4 % and 5 %
- Internet unit progress (NUG) between 3 % and 4 %
- Optimistic contribution to EBITDA from Providers to Homeowners
And upgrades the next steering:
- Group EBITDA now anticipated between €1,100 million and €1,125 million (beforehand between €1,095 million and €1,125 million)
Occasions from July 1, 2024, to October 24, 2024
AccorInvest
Since 2023, AccorInvest, which is accounted for underneath the fairness methodology within the group’s consolidated statements, has initiated an asset disposal plan to be accomplished by 2025, aimed toward optimizing its monetary construction by decreasing 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 improve within the type of most well-liked shares was subscribed to by the corporate’s shareholders, together with Accor for €67 million.
Moreover, the shareholders are dedicated to subscribe, by March 2025, to an extra issuance of most well-liked shares for optimum 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 difficulty 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 efficiently accomplished the October 2019 hybrid bond refinancing transaction:
- On August 28, Accor issued perpetual hybrid bonds for an quantity of €500 million with a 4.875 % coupon. The transaction was oversubscribed 5 occasions reflecting renewed traders’ confidence within the credit score high quality and the expansion potential of the group;
- On September 5, Accor efficiently accomplished the refinancing of its October 2019 hybrid bond following the completion of the Tender Supply on a perpetual hybrid bond (4.875 % coupon) for a complete quantity of €352.3 million. Following the completion and settlement of the Tender Supply which occurred on September 9, greater than 70.46 % of the preliminary combination principal quantity of the Present Bonds have been bought by Accor.