Sébastien Bazin, Chairman and Chief Executive Officer of Accor, said:
“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. 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. Such underlying trends, combined with borders reopening give us confidence that our performance will continue to improve month after month, with prices already above 2019 level. Our brands are attractive, ideally positioned, and the augmented hospitality ecosystem we have built over the past years is attracting an increasing number of guests and owners. In the coming months, we will continue to focus our efforts on accelerating the development of our network, promoting our brands as well as attracting and retaining more and more customers.”
Accor’s business has rebounded sequentially every quarter since Q2 2021. The outbreak of the Omicron variant caused only a brief hiccup in January, and the recovery seen in February gained further momentum in March. This rebound reflects both the sustained increase in the number of business and leisure domestic guests, and border reopenings which accelerated the return of international travelers. It was accompanied by a sharp increase in prices, which are now above 2019 levels for the last 4 months in a row across the Group, driven by demand and exacerbated by inflation.
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 twelve-month period. At end-March 2022, the Group had a portfolio of 777,849 rooms (5,304 hotels) and a pipeline of about 212,000 rooms (1,212 hotels).
For 2022, the Group is confirming its forecast of net growth in the network of 3.5%.
The Group reported first-quarter 2022 revenue of €701 million, up 85% like-for-like (LFL) versus Q1 2021. By activity, this growth breaks down into a 105% increase for HotelServices and 52% for Hotel Assets & Other. To provide a comparison with the 25% decline in RevPAR (presented as the change versus FY 2019 throughout this release), the like-for-like decline in revenue versus Q1 2019 is 23%.
Changes in the scope of consolidation (acquisitions and disposals) contributed a positive
€13 million, largely due to the integration of the companies which are now part of Ennismore over 2021.
Currency effects had a positive impact of €18 million, mainly due to the US dollar (+7%).
Based on current reservation and price increase trends, RevPAR will continue to improve in the coming quarters.
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.
Net growth in the network is forecast at 3.5% for 2022, as announced with the release of the 2021 annual results, with openings expected to accelerate as of the second quarter.