Accor adjusts guidance as it sees strong demand at luxury hotels
Bottom end of EBITDA guidance raised for 2024
Luxury division revenue rose 18% in Q3
Q3 RevPAR slightly above expectations
RevPAR declines in China
Adds Chinese demand, quote, background on peers
By Marta Maciag and Nathan Vifflin
Oct 24 (Reuters) -Accor ACC.PA, Europe's largest hotel group by portfolio, on Thursday raised the bottom end of its forecast range for 2024 core profit on strong demand for its luxury hotels.
The French group, however, said China was weak, echoing other big hotel groups that are seeing declining demand there.
Accor, operator of luxury hotel group Sofitel and budget brand Ibis, now forecasts 2024 gross operating income of between 1.100 and 1.125 billion euros ($1.08 and $1.22 billion), against 1.095 and 1.125 billion euros previously anticipated.
"This good performance was driven in particular by the dynamism of our Luxury & Lifestyle brands," Accor Chairman and CEO Sebastien Bazin said in a statement.
Luxury is Accor's fastest growing division, and the group said revenue in the division rose 18% year-on-year in the third quarter, helped by its acquisition last year of Potel & Chabot high-end event catering
Its results for the July-September quarter overall were slightly above expectations, although they were dampened by weaker demand in China's domestic market.
Third quarter revenue per available room (RevPAR) came in at 5.3%, slightly beating 5.2% growth seen in a company-complied consensus, while RevPAR for China fell 9% year on year.
"Although Chinese customers are travelling abroad, benefiting Southeast Asia in particular, the domestic market remains penalized by the decline in consumption," Accor said in a statement.
Competitors InterContinental IHG.L, and Hilton HLT.N both reported slowdowns in third quarter revenue growth amid a fall in demand in China.
($1 = 0.9264 euros)
Reporting by Marta Maciag and Nathan Vifflin in Gdansk; Editing by Susan Fenton
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
