Accor's first half revenue per available room increased 6 percent year on year, while revenues grew 11 percent compared to the same time in 2023, according the company's first-half earnings report.
The France-based hospitality group reported "record" revenues of €2.7 billion for the first six months of 2024, and €393 million in operating profit, up from €351 million reported in H1 2023.
This growth represented 4 percent year-on-year revenue increase for the group's premium, midscale and economy (PM&E) division and a 22 percent increase for its luxury and lifestyle division.
Accor's systemwide RevPAR for the year's first half was €72, up 6 percent year over year. RevPAR for the PM&E division was €59, up 5.6 percent, while the luxury and lifestyle segment saw a 7.1 percent year-on-year increase to €154.
Group earnings before interest, taxes, depreciation and amortization amounted to €504 million for the first half of 2024, up 13 percent compared to the same period in 2023.
Accor CEO and chairman Sébastien Bazin said the results are "in line" with the group's medium-term outlook and, following "strong" activity in all regions throughout the second quarter, the group has raised its annual RevPAR target to between 4 percent and 5 percent growth, up from a previous estimate of between 3 percent and 4 percent year over year.
RevPAR in the second quarter saw a 4 percent year-on-year increase across the PM&E division to €64, mostly driven by prices rather than by occupancy rates, the group said. The luxury and lifestyle division, meanwhile, saw RevPAR increase 8 percent year on year to €163, largely due to higher occupancy rate.
During the first half of 2024, Accor opened 146 hotels, representing 24,000 rooms. At the end of June, the group's portfolio included 5,682 properties (838,722 rooms), with an additional 1,297 hotels in the pipeline.
Originally published by BTN Europe.