Accor's room revenue growth for 2024 slightly beats estimates (updated)

Accor SA

20/02/2025 07:06

(Adds details, results in paragraphs 4-9)
       Feb 20 (Reuters) - Accor  ACCP.PA , Europe's largest
hotel group by portfolio, reported annual room revenue growth
slightly above market expectations on Thursday, driven by higher
prices and occupancy rates across its regions.
    The operator of Sofitel luxury hotels and budget brand Ibis
said its revenue per available room (RevPAR), a key performance
measure for the hotel industry, rose 5.7% in 2024.
    That slightly beat analysts' average estimate of a 5.2%
increase, according to a company-compiled poll.
    In the fourth quarter, RevPAR grew 2% in the Europe North
Africa region and 5% in the Middle East, Africa and Asia-Pacific
region, of which China accounts for 18%.
    While the situation improved in China in the quarter, the
year-over-year change in RevPAR remained negative.
    Domestic travel demand in China has been weak as people
tighten their purse strings amid poor macroeconomic conditions
in the world's second-largest economy and worry over wage and
job security.
    Luxury, Accor's fastest-growing business, saw its RevPAR
rise 9% from the fourth quarter in 2023.
    Accor also confirmed the medium-term growth prospects it
announced in 2023, including a 2025 share buyback programme
totalling 440 million euros ($459.01 million).
    The group's annual recurring earnings before interest,
taxes, depreciation and amortisation (EBITDA) rose 12% to 1.12
billion euros in 2024, in line with analysts estimates in a
company-compiled poll.
 
 ($1 = 0.9586 euros)

 (Reporting by Elviira Luoma and Jesus Calero; Editing by
Christopher Cushing and Savio D'Souza)
 ((Elviira.luoma@thomsonreuters.com,
jesus.calero@thomsonreuters.com))