European giant Accor reported 2Q earnings on Wednesday that revealed performance beating 2019 levels for the first time since the outbreak of the pandemic.
Chairman and CEO Sébastien Bazin stated the group should continue to report strong EBITDA growth with a target of more than €550 million (US$561 million) for the full-year 2022 after reporting just €22 million (US$22.33 million) in EBITDA growth last year. Consolidated EBITDA was €205 million (US$208.12 million) in H1 2022, versus -€120 million (US$121.82 million) in H1 2021.
However, analysts stated they were expecting between €600-700 million (US$609.13-710.65 million) EBITDA guidance for the full year and suggested that the increased costs of doing business and ongoing geopolitical concerns could be behind the disappointing forecast.
Bazin added that Accor expects robust improvements in the second half of the year driven by further rebounds in group, meetings and convention business.
Accor said revenue for the first half of 2022 increased 97% to €1.73 billion (US$1.77 billion) for the first six months of 2022, up from €545 million (US$553.29 million) a year earlier. By activity, this growth breaks down into a 119% increase for HotelServices and 57% for Hotel Assets & Other.
RevPAR, while down 11% overall in the first half against 2019, exceeded pre-pandemic levels by 1% from April through June. Accor added that the only laggards were China, which is impacted by travel restrictions, and Southeast Asia, which is highly dependent on Chinese visitors.
That said, Q2 ADR increases versus 2019 ranged from 14% in London to 11% in Paris and 7% in Sydney.
Accor also stated it expects full-year unit growth of 3.5%. During first-half 2022, Accor opened 85 hotels, representing 11,700 rooms and net system growth of 1.8% in the last 12 months. At end-June 2022, the group had a portfolio of 777,945 rooms (5,300 hotels) and a pipeline of 212,000 rooms (1,215 hotels).