Accor reports 1Q earnings, notches continued RevPAR increases

Driven by four consecutive months of sharp ADR increases, now above 2019 levels, Accor reported 1Q22 earnings on Thursday that included revenue of €701 million, up 85% year-over-year.

By activity, this growth breaks down into a 105% increase for HotelServices to €507 million in revenue (down 25% like-for-like versus Q1 2019) and 52% for Hotel Assets & Other.

Consolidated RevPAR more than doubled in Q1 2022 (up 108% as reported) compared with Q1 2021 but was still down 25% versus Q1 2019. Compared with the same period last year, the group was better able to optimize its pricing policy thanks to the increased visibility provided by earlier bookings. RevPAR for Accor has now increased every quarter since Q2 2021.

To provide a comparison with the 25% decline in RevPAR (presented as the change versus FY 2019 throughout this release), the YOY decline in revenue versus Q1 2019 is 23%.

Rooftop bar at the newly launched Hoxton in Barcelona. Accor has a majority stake in the Ennismore-developed brand.

Revenue in management and franchise stood at €158 million, up 106% YOY (down 33% like-for-like versus Q1 2019).

Services to owners revenue came to €349 million in the first quarter of 2022, up 104% compared with 2021. This increase reflects the pick-up in activity compared with last year.

“Accor’s performance in the first quarter of 2022 confirms the clear upturn in business across all regions and the renewed momentum in tourism, food services and entertainment,” said Accor chairman and CEO Sébastien Bazin. “These results are notably driven by our market dynamics in Europe, the Middle East and the Americas, as well as the strong demand for our luxury and lifestyle hotels, and domestic travel.”

Bazin added that the group is confident such strong performance will continue to improve month after month. Domestic demand is expected to return to levels comparable to 2019 by the end of the year. Recovery in international demand is catching up even if Asia lags.

During the first quarter of 2022, Accor opened 26 hotels, representing about 3,700 rooms, for net growth in the network of 2.5% over the 12-month period. For 2022, Accor is confirming its forecast of net growth of the network of 3.5%.