Accor reports a substantial rise in summer quarter revenues, thanks to the Paris Olympics.
- The French hotel group saw a 12% increase in revenues, amounting to €1.4 billion.
- Luxury and lifestyle divisions led the growth with an 18% year-on-year rise.
- Revenue per available room grew by 5.3% compared to the previous year.
- Projected annual profits for Accor are expected to exceed €1.1 billion.
Accor, benefiting significantly from the Paris Olympics, has reported a notable 12% rise in its summer quarter revenues, reaching a total of €1.4 billion. This increase has been predominantly driven by the group’s luxury and lifestyle division, which saw an impressive 18% year-on-year increase. Such performance underscores the positive impact major events like the Olympics can have on the hospitality sector.
Critical to this performance is the enhancement in revenue per available room (RevPAR), which rose by 5.3% compared to the previous year. This metric is crucial for understanding occupancy performance and pricing power, revealing how effectively the company is filling its rooms and at what rate.
Accor’s expansion strategy also played a part, with 47 new hotels and 8,000 additional rooms introduced within the quarter. The continuous growth in infrastructure is indicative of Accor’s long-term strategy to consolidate its market position and meet growing demand across various regions.
Notably, the group’s UK operations contributed to this overall performance, with a ‘slightly positive’ growth in RevPAR, consistent with previous quarters. Both London and provincial areas demonstrated similar growth patterns, reflecting steady demand across different markets in the UK.
Sebastien Bazin, Chairman and Chief Executive, highlighted, “This good performance was driven in particular by the dynamism of our luxury and lifestyle brands, sustained growth in high-potential regions and the positive impact in France of the Olympic Games, for which Accor was one of the premium partners.” Bazin emphasised operational agility, quality execution, and financial discipline as key factors in maintaining the group’s robust business model, with expectations of significant growth in 2024.
Accor’s strategic initiatives and the Paris Olympics have driven remarkable growth in its summer revenues, demonstrating robust future prospects.
