During the first quarter, AccorHotels experienced its best
quarterly revenue per available room growth of the past two years, CEO
Sebastien Bazin reported. Systemwide RevPAR increased 5 percent year over year
on a like-for-like basis. Average daily rate increased 1.2 percent to €90,
while occupancy grew 2.3 percentage points to 63 percent.
"I'm very happy to report the current business year off
to a good start," Bazin said. First-quarter companywide revenue increased
7.4 percent on a like-for-like basis to €425 million.
Accor had 176,000 rooms in its pipeline as of March 31,
2017. The largest share of its pipeline is in the Asia/Pacific region, at 45
percent. The Middle East and Africa follows at 24 percent, then Europe and
South America, each at 13 percent.
Regional Performance
In France & Switzerland, ADR rose 0.2 percent year over
year to €80 and occupancy grew 2.7 percentage points to 58.9 percent. Hotel room
nights in the business segment increased 5 percent in Paris. In Europe outside
France & Switzerland, ADR increased 3.2 percent to €75, while occupancy
rose 2.6 percentage points to 64.9 percent. The depreciation of the pound
sterling fueled Accor's U.K. business, as RevPAR rose 9.2 percent, while trade
fairs in Germany bolstered 7.1 percent RevPAR growth there.
In North America, Central America and the Caribbean, ADR
rose 2.8 percent to €205 and occupancy increased 0.6 percentage points to 67.3
percent. Bazin noted that fewer foreign tourists stayed in the company's U.S.
properties during the first quarter. Accor continued to reap the benefits of
its acquisition of Fairmont, which has properties across the U.S. and Canada in
markets that are "less exposed to international customers."
In South America, RevPAR plummeted 8.9 percent year over
year on a like-for-like basis, driven by a 4.8 percent drop in ADR and a 2.4
percentage-point decrease in occupancy. Brazil's economic and political crises
and hotel oversupply continue to weigh on results in the region, as RevPAR in
Rio de Janeiro declined 32 percent year over year.
ADR in the Asia/Pacific region increased 1.8 percent to €89,
and occupancy rose 2.8 percentage points to 67.9 percent. The Middle East and
Africa region saw ADR decline 3.5 percent to €122, while occupancy increased 4
percentage points to 63.3 percent. Oil-sensitive markets Saudi Arabia, the United
Arab Emirates, Angola and Algeria negatively impacted the broader region's results.
Business Unit Changes
Accor has restructured around three business units:
HotelServices, new businesses and hotel assets. HotelServices is Accor's main
asset-light business, consisting of franchise and management fees, sales,
marketing, distribution and loyalty. New businesses encompasses Accor's recent
acquisitions. And hotel assets is comprised of HotelInvest assets and other
hotels operating under lease agreements. Accor plans to turn HotelInvest into a
subsidiary and to sell off most of the assets Accor owns.
Revenue from Accor's new businesses totaled €13
million for the quarter. Included in that figure is the revenue it gained from
Onefinestay, John Paul and Fastbooking. Accor has either closed or is on track
to close a number of acquisitions in April. The company completed its purchase
of channel manager Availpro, which will "round out the suite of products
and services offered to hotel operators," according to the company. Accor also
is tying up its acquisition of luxury rental company Travel
Keys. Finally, the company bought luxury private sales company VeryChic this
month.