Accor Reports First-Quarter 2025 Results

Sébastien Bazin, Chairman and CEO of Accor, said:

« Accor has once again posted dynamic growth in its business this quarter, driven by continued strong demand. Our diversified geographic positioning and leadership in the most promising markets, combined with the strength of our attractive and distinctive brands, enable us to continue to grow in a more volatile geopolitical and economic environment. In this context, while maintaining strong operational discipline, we are pursuing our strategy of development and value creation and are confident in our ability to continue improving our performance. »

In a volatile political and consumer environment, the global demand in the hospitality sector remained sustained during the first quarter of 2025. The diversification of the hotel portfolio, in terms of geography and segments, enables the Group to report encouraging performances, although subject to the uncertainties of the economic environment.

In the first quarter of 2025, Accor opened 45 hotels corresponding to more than 5,900 rooms, representing a net unit growth of 2.7% over the last twelve months, which should accelerate from the start of the second half of 2025. At the end of March 2025, the Group had a hotel network of 847,290 rooms (5,695 hotels) and a pipeline of more than 235,000 rooms (1,388 hotels).

First-quarter 2025 RevPAR

The Premium, Midscale and Economy (PM&E) division posted a 3.4% increase in RevPAR compared with the first quarter of 2024, driven 90% by prices and 10% by the occupancy rate.

• The Europe North Africa (ENA) region posted a 0.6% increase in RevPAR compared with the first quarter of 2024, driven by higher occupancy rates. Depending on the country, the region's performance shows contrasting trends.

• In France, which accounts for 44% of the region’s hotel room revenue, RevPAR declined slightly in both Paris and the provinces in the first quarter due to a weak month of March, affected by an unfavorable calendar effect.

• In the United Kingdom, which accounts for 13% of the region’s hotel room revenue, both London and the provinces recorded a decline in RevPAR, which is linked to weak confidence in the country's economic situation.

• In Germany, which accounts for 12% of the region’s hotel room revenue, RevPAR growth was moderate at the beginning of the period before accelerating thanks to a more favorable trade fair calendar.

• The Middle East, Africa and Asia-Pacific region posted a 4.6% increase in RevPAR compared with the first quarter of 2024. This increase in RevPAR was driven by prices.

• In the Middle East-Africa region, which accounts for 28% of the region’s hotel room revenue, RevPAR growth was sustained, mainly driven by prices, particularly in Saudi Arabia thanks to the Ramadan festivities, which took place entirely during the first quarter of 2025.

• Southeast Asia, which accounts for 32% of the region’s hotel room revenue, posted sustained RevPAR growth thanks to strong performance in Thailand and despite an unfavorable comparison base for Singapore, which hosted several Taylor Swift concerts in March 2024.

• The Pacific, which accounts for 24% of the region’s hotel room revenue, posted sluggish RevPAR growth, mainly due to Tropical Storm Alfred, which hit the coastal area of southern Queensland, Australia, in early March 2025.

• In China, which accounts for 16% of the region’s hotel room revenue, RevPAR variation remains negative, with the recovery in tourist flows appearing to mainly benefit overseas tourism, particularly in Southeast Asia.

• The Americas region, which mainly reflects the performance of Brazil (62% of the region's hotel room revenue), posted a 13.1% increase in RevPAR compared with the first quarter of 2024.

• Brazil continued to record strong RevPAR growth thanks to higher occupancy rates and prices, supported by a solid event calendar.

The Luxury & Lifestyle (L&L) division posted RevPAR up 8.3% compared with the first quarter of 2024, driven by prices and occupancy rates, which contributed two-thirds and one-third, respectively. All brands in the Luxury & Lifestyle division outperformed the PM&E division in comparable areas, demonstrating the resilience of this segment.

• Luxury, which accounts for 75% of the division's hotel revenue, posted a 9.0% increase in RevPAR compared with the first quarter of 2024. International tourism flows continue to contribute to the strong performance of the Luxury market.

• Lifestyle posted a 6.3% increase in RevPAR compared with the first quarter of 2024. The resort hotels segment once again recorded a solid quarter in Turkey, Egypt, and the United Arab Emirates. Strong demand was reflected in particular in a continued improvement in occupancy rates.

Group revenue

For the first quarter of 2025, the Group recorded revenue of €1,349 million, up 9.2% compared with the first quarter of 2024. This growth breaks down as a 1.8% increase for the Premium, Midscale and Economy division and a 17.9% increase for the Luxury & Lifestyle division.

Scope effects, mainly linked to the full-year effect of Rikas (acquired in March 2024) in the Luxury & Lifestyle division (the Hotel Assets & Other activity), positively contributed for €28 million.

Currency effects had a negative impact of €9 million, mainly due to the depreciation of the Egyptian pound ((29)%) and the Brazilian real ((13)%), and partially offset by the strengthening of the US dollar (+4%). Continue reading here

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The Team

at LEADING HOTELIERS NETWORK / JOB LEAD SERVICE

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