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Accor revenues rose 11% to €5.6bn (£4.8bn) in 2024, driven by increased performance in its Premium, Midscale and Lifestyle and Luxury divisions, as consolidated recurring EBITDA rose by 12% to hit a “record” €1.12bn (£960m).The group revealed a 5% increase in revenue for the Premium, Midscale and Economy (PM&E) division, while Luxury and Lifestyle division sales jumped 19%.
According to Accor, this was due to the resilience of RevPAR, which rose by 5.7%, as well as portfolio growth, margin improvement in the M&F business, strict cost discipline in Services to Owners and the development of the Hotel Assets and Other business.
Premium, Midscale and Economy, which includes fees from Management and Franchise (M&F), Services to Owners and Hotel Assets and Other activities, saw full-year revenues rise by 5% to €3.1bn (£2.7bn).
Full-year Management and Franchise (M&F) revenue for PM&E stood at €899m (£770m), up 5% against FY23, in line with the 4.9% increase in RevPAR over the period.
Meanwhile, Services to Owners revenues under this division rose by 8% to €1.15bn (£987m). Accor said this increase, stronger than the change in RevPAR, reflects an improvement in our distribution channel mix. Hotel Assets and Other revenue in PM&E rose by only 1% versus FY23.
Within Luxury and Lifestyle, which also includes fees from Management and Franchise (M&F), Services to Owners and Hotel Assets and Other activities, saw revenues rise by 19% to €2.6bn (£2.2bn), reflecting “sustained” business activity recorded over the period.
M&F revenue stood at €494m (£424m), up 11% against FY23, driven by a 7.3% rise in RevPAR, as well as the pace of new hotel openings and the increase in residential fees in the Lifestyle segment.
Services to Owners revenue under Luxury and Lifestyle totaled €1.4bn (£1.2bn), up by 9% against the prior year.
Hotel Assets and Other revenue in this division was up 66%, while Management and Franchise revenue came to €1.3bn (£1.1bn).
In 2024, Accor opened 293 hotels, equating to more than 50,000 rooms, marking a net network growth of 3.5% in the last 12 months.
At year-end, the group had a hotel portfolio of 850,285 rooms (5,682 hotels) and a pipeline of more than 233,000 rooms (1,381 hotels).
Sébastien Bazin, chairman and CEO of Accor, said: “Ambition, discipline and high standards are the three pillars that have guided Accor’s actions in 2024. They have once again enabled us to post record results, in line with each of the objectives we have set for the group.
“This performance reflects the extraordinary commitment of our teams, the strength of our brands and our digital tools, the renewed confidence of our partners and the efficiency of our organization based on two autonomous and complementary divisions. Thanks to this vigorous growth, we will propose an increased return to shareholders at the next General Meeting. On these solid foundations, and by continuing to control our destiny, we are approaching 2025 with confidence and the ambition to once again deliver excellent results.”
