French hospitality giant Accor Group is evaluating the possibility of an initial public offering for the Ennismore lifestyle hotel and restaurant entity in which it is the majority shareholder, the company announced Thursday. The company also announced steady third-quarter operating results.
Accor's board "unanimously approved the start of preparatory work to evaluate a possible stock market listing for Ennismore," the company said in a statement.
Ennismore is a joint venture created in 2021 between Accor and the predecessor Ennismore luxury hotel operator. It includes 192 hotels, according to the company.
Accor is Ennismore's controlling shareholder and would remain so in the event of an IPO, the company said.
"As a key asset for the Group, we intend, if this transaction occurs, to retain control while providing it with even more resources to accelerate its development," Accor chairman and CEO Sébastien Bazin said in a statement.
Accor CFO Martine Gerow on a Thursday conference call with analysts suggested that evaluating and preparing for a potential Ennismore IPO would take at least 12 months.
Accor Q3 Metrics
Accor's third-quarter systemwide RevPAR increased 0.8 percent year over year to €78. September RevPAR increased 3 percent year over year, Gerow said.
In the Americas region—encompassing North, Central and South America and the Caribbean—RevPAR increased 7.1 percent year over year, to €43.
Q1 RevPAR in Accor's Premium, Midscale & Economy division decreased 1.1 percent year over year to €63, while it increased 5 percent in its Luxury & Lifestyle division to €164.
Third-quarter systemwide average daily rate increased 0.4 percent year over year to €110, while it increased 5.7 percent in the Americas group to €67. It decreased 1.2 percent to €89 among the PM&E group and increased 3 percent to €236 at L&L properties.
Q3 systemwide occupancy increased 0.3 percentage points year over year to 70.9 percent, while it increased 0.9 percentage points to 63.6 percent in the Americas.
Total third-quarter revenue increased 0.1 percent at constant currency year over year to nearly €1.4 billion.