Accor reported record results in 2023, with its EBITDA exceeding the €1 billion ($1.08 billion) milestone for the first time, driven by robust demand throughout the year. The French hospitality company set new operating and financial performance records, as EBITDA reached €1,003 million ($1,084 million) in FY23, up 49% YOY.
All regions and segments witnessed robust growth following post-pandemic recovery in 2022. All its performance indicators were aligned or surpassed group guidance in 2023, Accor said in a release.
Total revenue jumped 20% to €5,056 million ($5,456.5 million), while net profit saw a considerable increase of 57% to €633 million ($684.26 million).
The impressive growth in performance highlights the strength of Accor’s asset-light model, the efficiency of its organization based on the two divisions — premium, midscale and economy and luxury and lifestyle — the popularity of its brands, financial discipline and the strength of its distribution and loyalty tools, said Sébastien Bazin, chairman and CEO of Accor.
“While the geopolitical backdrop remains complex, 2024 is set to be rich in major international events, which should continue to fuel growth, and we start this new year with confidence. Accor is ideally positioned to continue its bold expansion and bring to life its vision of a pioneering, responsible hospitality industry that creates value for its shareholders and its partners.”
Throughout 2023, the company opened 291 hotels, totaling 41,000 rooms, posting a net network growth of 2.4% in the last 12 months. By the end of December, Accor’s total portfolio comprised 5,584 hotels totaling 821,518 rooms and a pipeline of 1,315 hotels representing 225,000 rooms.
The robust business growth enabled the company to return €676 million ($730.74 million) to its shareholders during the year.
Q4 REVPAR
RevPAR of the premium, midscale and economy division grew by 12% compared to Q4 2022 and continued to be driven by prices rather than the rise in occupancy rates.
The Europe North Africa region’s RevPAR was up 8%.
In France, which accounts for 43% of the region’s room revenue, RevPAR growth stabilized. Paris was affected by an unfavorable calendar leveled off with big events in 2023, such as the Paris Motor Show, the SIAL food show and the SIMA Agriculture show, which didn’t take place during the year. The provinces continued to see steady business levels.
Representing 13% of the region’s room revenue, the U.K. saw solid and balanced growth in RevPAR.
Accounting for 14% of the region’s revenue, Germany’s RevPAR continued to increase compared to previous quarters, especially in the Christmas markets. Occupancy rates still have strong potential to improve and are significantly less than pre-pandemic levels.
The Middle East, Africa & Asia Pacific saw a 19% rise in RevPAR from Q4 2022, benefitting from a significant rebound in business across Asia.
Representing 26% of the room revenue in the region, the Middle East Africa saw price increases driven by steady leisure demand despite the war in Israel and Palestine.
South East Asia, which accounts for 29% of room revenue in the region, saw the same RevPAR growth as the Middle East, mainly boosted by prices and supported by leisure demand.
The Pacific, which accounts for 29% of room revenue in the region, is entering a normalization stage with an increasing measured RevPAR growth, buoyed by occupancy rates in Q4.
In China, which represents 19% of the region’s room revenue, recovery continued to improve. RevPAR growth, compared to Q4 business, is now marginally higher than the 2019 level, similar to the third quarter.
The Americas region, which mainly consists of performances of Brazil (65% of the region’s room revenue), saw a 15% rise in RevPAR compared to Q4 2022.
RevPAR in Accor’s luxury & lifestyle division improved by 8% relative to Q4 2022, primarily boosted by higher occupancy rates.
Accounting for 77% of the division’s room revenue, the luxury segment posted a 10% rise in RevPAR compared to Q4 2022, driven by the Asia Pacific region. Despite an improvement in occupancy, it was still lagging pre-pandemic levels by 5 points.
RevPAR of the lifestyle segment was stable. The rapid recovery of this segment in 2022 created a less favorable basis for comparison, magnified by the FIFA World Cup in Qatar in Q4 2022. Adjusted from this event, RevPAR in this segment saw a 6% rise over the quarter.