On these solid foundations, and by continuing to control our destiny, we are approaching 2025 with confidence and the ambition to once again deliver excellent results.”
Throughout 2024, including a very strong fourth quarter, the hospitality sector proved resilient in a contrasting consumer environment. The Group’s diversification in terms of both geography and segment enabled it to post even stronger activity. As a result, both divisions – Premium, Midscale and Economy (PM&E) and Luxury & Lifestyle (L&L) – reported results well in line with the outlook presented at the June 2023 Investor Day.
In 2024, Accor opened 293 hotels, corresponding to more than 50,000 rooms, i.e., net network growth of 3.5% in the last 12 months. At end-December 2024, the Group had a hotel portfolio of 850,285 rooms (5,682 hotels) and a pipeline of more than 233,000 rooms
(1,381 hotels).
Fourth quarter RevPAR
The Premium, Midscale and Economy (PM&E) division of Accor posted a 4% increase in RevPAR compared with the fourth quarter of 2023, driven equally by prices and occupancy.
- The Europe North Africa (ENA) region posted a 2% increase in RevPAR compared with Q4 2023, driven by higher occupancy rates. The three main countries pursued the momentum seen in the first 9 months of the year, with Germany outperforming France and the UK.
- In France, which accounts for 42% of the region’s room revenue, the change in RevPAR in Paris was slightly negative in the fourth quarter, due to an unfavorable basis of comparison with the Rugby World Cup in October 2023. However, this trend turned positive again in December 2024, thanks to strong international demand, particularly from the US, the reopening of Notre-Dame de Paris and the post-Olympic Games effect. Meanwhile, performance in the provinces was less volatile, with RevPAR stabilizing in the fourth quarter of 2024.
- In the UK, which accounts for 13% of the region’s room revenue, both London and the provinces posted weak RevPAR growth, in line with the first three quarters of the year.
- In Germany, which accounts for 13% of the region’s room revenue, RevPAR growth was slightly stronger than in France and the UK. Occupancy, 5 points below the level of the fourth-quarter 2019 level, remains an important vector for future growth.
- The Middle East, Africa and Asia-Pacific region rebounded in the quarter, posting a 5% increase in RevPAR compared with the fourth quarter of 2023. Two-thirds of this increase in RevPAR was driven by prices, and one-third by occupancy rates.
- In the Middle East-Africa region, which accounts for 24% of the region’s room revenue, Saudi Arabia explains the rebound in RevPAR. Indeed, in the third quarter of 2024, Saudi Arabia had to deal with a difficult basis of comparison linked to religious pilgrimages. This country is benefiting from strong demand, reflected in an occupancy rate now at 70%, 10 points above the pre-crisis level.
- Southeast Asia, which accounts for 33% of the region’s room revenue, posted double-digit RevPAR growth, reflecting the region’s growing appeal. Occupancy now at 71% exceeds its 2019 level.
- The Pacific, which accounts for 25% of the region’s room revenue, resumed positive growth in the fourth quarter, driven by strong demand from leisure customers, won over by an attractive pricing policy.
- In China, which accounts for 18% of the region’s room revenue, the situation improved in Q4 2024, although the change in RevPAR remained negative compared to Q4 2023.
- The Americas region, which mainly reflects the performance of Brazil (61% of the region’s room revenue), posted a 12% increase in RevPAR compared with the fourth quarter of 2023.
- Brazil, whose occupancy rate returned to its pre-crisis level in the second quarter of 2022, continued to record a rise in occupancy and benefited from higher prices.
The Luxury & Lifestyle (L&L) division posted its best performance for the year with a 10% increase in RevPAR compared with Q4 2023, driven by both prices and occupancy.
- Luxury, which accounts for 74% of the division’s room revenue, posted a 9% increase in RevPAR compared with the fourth quarter of 2023. RevPAR growth was solid across all brands and regions, outperforming the PM&E segment in comparable areas and demonstrating the resilience of the Luxury segment in hotels.
- Lifestyle posted an 11% increase in RevPAR compared with the fourth quarter of 2023. This increase was in line with the momentum observed in the first three quarters of 2024. The resort hotel segment again recorded a solid quarter in Turkey, Egypt and the United Arab Emirates. This demonstrates the ever-growing appeal for unique experiences.
Consolidated revenue
The Accor Group reported revenue of 5,606 million euros in 2024, up 11% with 2023. This growth breaks down into a 5% increase for the Premium, Midscale and Economy (PM&E) division and 19% for the Luxury & Lifestyle division. Scope effects, linked mainly to the full-year effect of Potel & Chabot (takeover in October 2023) and the acquisition of Rikas (in March 2024) in the Luxury & Lifestyle division (the Hotel Assets & Other activity), positively contributed for 223 million euros. Currency effects had a negative impact of 117 million euros, stemming mainly from the Turkish lira ((28)%), the Egyptian pound ((32)%) and the Brazilian real ((7)%). Management & Franchise revenue came to 1,393 million euros, up 7% compared with 2023. This change reflects RevPAR growth in the Accor Group’s various regions and segments (+5.7% versus FY 2023). In the PM&E division, it should be noted that the Americas, mainly Brazil, is affected by the fall in the Brazilian real which began in May 2024. In the L&L division, the end of incentive fee exemptions in some hotels, notably under Sofitel and Fairmont brands, had a slight downward impact on M&F revenue growth in the Luxury segment.
Consolidated Recurring EBITDA
Consolidated Recurring EBITDA came to 1,120 million euros for 2024, a new record for Accor and up 12% versus FY 2023. This performance is due to the resilience of RevPAR, portfolio growth, margin improvement in the M&F business, strict cost discipline in Services to Owners and the development of the Hotel Assets & Other business (particularly in the Luxury & Lifestyle division) combined with a number of acquisitions (Rikas and Potel & Chabot).
Premium, Midscale and Economy Recurring EBITDA
The Premium, Midscale and Economy division generated Recurring EBITDA of 809 million euros, up 8% versus FY 2023. Management & Franchise (M&F) reported Recurring EBITDA of 655 million euros, up 7% versus FY 2023, reflecting the resilience of RevPAR, portfolio growth and control of the cost base. Services to Owners Recurring EBITDA came to 43 million euros in 2024, in line with the Group’s commitment to achieve positive recurring EBITDA for this business. Recurring EBITDA for Hotel Assets & Other was down 3% versus FY 2023.
Luxury & Lifestyle Recurring EBITDA
The Luxury & Lifestyle division generated recurring EBITDA of 427 million euros, up 21% versus FY 2023. Management & Franchise (M&F) posted recurring EBITDA of 333 million euros, up 12% versus FY 2023 thanks to solid RevPAR growth, strong portfolio growth and operating leverage. Recurring EBITDA for Services to Owners amounted to 20 million euros in FY 2024, also positive, in line with the Accor Group’s commitment. Recurring EBITDA for Hotel Asset & Other also reflects the integration of Potel & Chabot since October 2023 and the acquisition of Rikas in March 2024.
Outlook
The Group confirmed its medium-term growth prospects as disclosed during the Investor Day on June 27, 2023:
- Annualized RevPAR growth of between 3% and 4% (CAGR 2023-27)
- Average annual network expansion of between 3% and 5% (CAGR 2023-27)
- M&F revenue growth of between 6% and 10% (CAGR 2023-27)
- A positive Recurring EBITDA contribution from Services to Owners
- Recurring EBITDA growth of between 9% and 12% (CAGR 2023-27)
- Recurring free cash flow conversion in excess or equal to 55%
- A shareholder payout of around 3 billion euros over 2023-2027 including notably a share buy-back program for an amount of 440 million euros in FY 2025.