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Accor Reports Strong Q1 Revenue Growth Despite Moderate RevPAR Increase

By Donna M. Airoldi / April 19, 2019 / Contact Reporter
Business Travel News on X

Accor reported revenue of 987 million euros during the first quarter, an 8.8 percent year-over-year increase on a like-for-like basis.

The company's HotelServices sector brought in 645 million euros, accounting for 65 percent of the quarter's revenue and representing 7.3 percent growth like for like. Its "hotel assets and other" segment earned 323 million euros, up 8.9 percent like for like. The company also attributed 176 million euros to consolidation, noting contributions from Mantra and Movenpick, which Accor acquired last year.

Revenue from Accor's new businesses segment, which struggled in the third quarter of 2018, rose 37 million euros, or 10 percent, like for like year over year in the first quarter. The increase reflects acquisitions of online restaurant reservation company ResDiary and catering software company Adoria.

During the first quarter, Accor revenue per available room increased only modestly, by 1.6 percent like for like year over year. Performance was mixed across regions. Europe recorded 3.3 percent growth, and South America continued to recover, as RevPAR rose 11.2 percent, driven mainly by rate increases. China RevPAR declined 3 percent, while it dropped 2.1 percent in the North America, Central America and Caribbean region.

The company's overall occupancy rate hit 64.5 percent, up 0.4 percent like for like, and the average daily room rate rose 0.9 percent to 89 euros.

In January, the company acquired a 33.15 percent share of Polish hotel operator Orbis for 339 million euros, and Accor now owns a total of 85.84 percent of Orbis' share capital. In March, Accor launched midscale lifestyle brand Tribe, with 10 properties in the pipeline and 50 under negotiation. April saw the launch of two Raffles luxury properties in India.

Overall during the quarter, Accor opened 71 hotels, representing nearly 8,300 rooms. At the end of March, the group showed 1,135 hotels with 200,000 rooms in the pipeline, 78 percent of those rooms planned in emerging markets. Half the rooms in the pipeline are in the Asia/Pacific region.

RELATED: Accor Q4 & full-year earnings
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