Accor says Middle East conflict hit Q2 room revenue, Dubai returns to growth (updated)

Accor SA

30/07/2026 06:57

Rewrites throughout, adds details on earnings, demand, and AI implementation
By Alexander Gudbrandsen and Ronan Corcoran
July 30 (Reuters) - French hotel group Accor ACCP.PA said on Thursday conflict in the Middle East weighed on second-quarter room revenue by hurting demand in the United Arab Emirates, although business elsewhere remained resilient and Dubai returned to growth in July.
Revenue per available room (RevPAR), a key industry metric, fell 0.2% year-on-year in the second quarter. Excluding the Middle East, RevPAR rose 4.6%, the company said.
The Middle East accounted for about 8% of Accor's room portfolio at the end of 2025. Chief Financial Officer Martine Gerow told Reuters occupancy rates in the UAE improved significantly during the quarter, with Dubai returning to year-on-year growth in July, although some hotels in the country remain closed.
Despite the regional disruption, first-half recurring EBITDA rose 6.5% at constant currency to 563 million euros ($645.48 million), supported by cost controls and growth in Accor's hotel network.
Accor said it expects full-year recurring EBITDA of 1.26 billion euros to 1.285 billion euros.
Operating profit fell to 294 million euros in the first half from 399 million euros a year earlier, while net profit dropped to 127 million euros from 258 million euros.
Earnings were weighed down by charges totalling 113 million euros, including a 44 million euro impairment related to Accor's stake in Essendi.
Gerow said exceptionally hot weather across Europe had boosted demand in some cities as travellers sought air-conditioned accommodation.
Separately, Accor said it was seeing productivity gains from artificial-intelligence tools used in areas such as order-taking and call handling.
Chief Executive Sebastien Bazin told analysts AI could help reduce hotel owners' costs by 15% to 30% over the next 12 to 18 months.

($1 = 0.8722 euros)

 (Reporting by Ronan Corcoran and Alexander Klyve Gudbrandsen in Gdansk, editing by Milla Nissi-Prussak and Matt Scuffham)
 ((Ronan.Corcoran@thomsonreuters.com;))