Accor reports strong rebound to pre-pandemic levels
Accor Group’s business rebounded significantly in H1 2022 after two years of major pandemic-related disruptions in the tourism and hospitality industry. In Q2 2022, activity recovered to levels close to, if not above, the 2019 levels in almost all of territories. The only laggards were China, which is impacted by travel restrictions as part of its strict enforcement of a “zero-Covid” policy, and South East Asia, which is highly dependent on Chinese visitors. This rebound reflects both the recovery of 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, driven by demand and emphasized by inflation.
During first-half 2022, Accor opened 85 hotels, representing 11,700 rooms, i.e., net system growth of 1.8% in the last 12 months. At end-June 2022, the Group had a hotel portfolio of 777,945 rooms (5,300 hotels) and a pipeline of 212,000 rooms (1,215 hotels).
Sébastien Bazin, Chairman and Chief Executive Officer of Accor, said: “Once again this quarter, Accor reported a very strong growth in business, exceeding pre-crisis levels for the first time. This marked rebound in all regions and for all of our brands. The summer will confirm these trends and the fall promises to be strong with the recovery of major seminars and conventions. Nevertheless, the Group remains attentive to the evolution of the geopolitical and economic environment. At this stage, the Group should report a strong growth in EBITDA, with a target of more than €550 million for the full-year 2022”.
For 2022, the Group is confirming its forecast of net unit growth in the network of around 3.5%.
The Group reported H1 2022 revenue of €1,725 million, up 97% like-for-like compared with H1 2021. By activity, this growth breaks down into a 119% increase for HotelServices and 57% for Hotel Assets & Other. To provide a comparison with RevPAR (change presented versus 2019 throughout this release), the like-for-like decline in revenue versus H1 2019 is 10%.
Changes in the consolidation scope, mainly due to the consolidation of Ennismore, and the reopening of Pullman Montparnasse contributed positively by €31 million.
Currency effects had a positive impact of €69 million, mainly due to the US dollar ((9)%).
HotelServices, which includes fees from Management & Franchise (M&F) and Services to Owners, reported €1,276 million in revenue, up 119% like-for-like versus H1 2021 (down 12% like-for-like versus H1 2019). This increase reflects the significant recovery seen in the first half of the year.