French hospitality group Accor – which owns the Ibis, Sofitel and Mercure hotel brands – has reported a strong financial performance for the first half of this year.
Group revenue rose 11%, year-on-year, to almost €2.7bn; while pre-tax earnings jumped 13% to €504m.
RevPAR (revenue per available room; a key performance metric for hotels) was up 6% in the first half of this year, and management expects better than expected RevPAR for the year as a whole.
Sébastien Bazin, Chairman and CEO of Accor, said: “Once again in this first half-year, Accor posted solid performances, in line with the medium-term outlook we presented to our investors last year. This demonstrates the strength of our model, the operational and financial discipline of our teams, and the strong momentum of the Group and its brands.
“Activity in the second quarter remained strong in all regions and for all our brands, our pace of development accelerated and our leading position in luxury and lifestyle was further strengthened by major partnerships. These performances enable us to raise our RevPAR target for 2024 and to reaffirm our confidence in the Group’s strength and ambition.
“The coming weeks will also be marked by the Paris 2024 Olympic and Paralympic Games, of which Accor is one of the partners. For this unique event, our teams, who have been mobilised for months, will be putting their expertise, their passion for hospitality and their generosity at the service of the Athletes’ Village, the Media Village and all visitors to our hotels, thereby helping to raise the profile of France throughout the world.”
During the first half of 2024, Accor opened 146 hotels, representing 24,000 rooms, representing net unit growth of 4.1% over the last 12 months.
At the end of June 2024, the Group had a hotel portfolio of 838,722 rooms (5,682 hotels) and a pipeline of 218,000 rooms (1,297 hotels).
