Accor launched full-year and This fall 2023 outcomes. Pushed by demand, Accor was capable of set information when it comes to working and monetary efficiency. All areas and segments skilled development after 2022 was marked by the post-COVID pandemic restoration. All efficiency indicators have been according to or exceeded group steerage in 2023.
This efficiency and the group’s confidence in continued enterprise development enabled the group to return a complete of €676 million to its shareholders throughout the yr.
In 2023, Accor opened 291 accommodations, similar to 41,000 rooms, i.e., internet community development of two.4 p.c within the final 12 months. In end-December 2023, the group had a lodge portfolio of 821,518 rooms (5,584 accommodations) and a pipeline of 225,000 rooms (1,315 accommodations).
Sébastien Bazin, chairman and CEO of Accor, stated, “Accor generated record-high leads to 2023, with EBITDA breaking the €1 billion mark for the primary time in its historical past. Whereas there have been quite a few causes for this success, the strong performances have been above all attributable to the group’s groups. I want to thank them for his or her dedication and their know-how in an trade whose power lies above all within the ladies and men on the bottom day by day who increase the profile of our manufacturers with a passionate and beneficiant sense of hospitality. Over the previous yr, the group achieved development in all segments and geographies, illustrating the power of its asset-light mannequin, the effectivity of its group based mostly on the 2 divisions, Premium, Midscale, and Economic system on the one hand, and Luxurious and Life-style on the opposite, the desirability of its manufacturers, the power of its distribution and loyalty instruments, in addition to its monetary self-discipline.
Whereas the geopolitical backdrop stays advanced, 2024 is about to be wealthy in main worldwide occasions which ought to proceed to gas development and we begin this new yr with confidence. Accor is ideally positioned to proceed its daring enlargement and produce to life its imaginative and prescient of a pioneering, accountable hospitality trade that creates worth for its shareholders and its companions.”
Fourth Quarter RevPAR
The Premium, Midscale, and Economic system (PM&E) division grew its RevPAR by 12 p.c versus This fall 2022, nonetheless pushed extra by costs than the rise in occupancy charges.
- The Europe North Africa (ENA) area posted RevPAR up 8 p.c relative to This fall
- In France, which represents 43 p.c of the area’s room income, RevPAR development stabilized. The Paris area has been impacted by an unfavorable calendar leveled off with main occasions in 2023, such because the Paris Motor Present, the SIAL meals present, and the SIMA Agriculture present, which didn’t happen throughout the yr. The provinces continued to get pleasure from regular enterprise ranges.
- The UK, which represents 13 p.c of the area’s room income, posted strong and balanced development in RevPAR between London and different
- In Germany, 14 p.c of the area’s room income, RevPAR continued to enhance in contrast with earlier quarters by way of Christmas markets. However, occupancy charges nonetheless harbor sturdy upside potential. Certainly, they continue to be behind pre-crisis ranges.
- The Center East, Africa, and Asia-Pacific area reported a 19 p.c improve in RevPAR in contrast with This fall 2022, benefiting from a rebound in enterprise in Asia.
- The Center East Africa, 26 p.c of room income within the area, continued to use sturdy worth will increase buoyed by leisure demand regardless of the battle in Israel.
- South-East Asia, 29 p.c of room income within the area, noticed RevPAR development corresponding to the Center East, primarily pushed by costs and supported by leisure demand.
- The Pacific, 26 p.c of room income within the area, is now getting into a normalization section with extra measured RevPAR development, pushed by occupancy charges within the fourth quarter.
- In China, 19 p.c of lodge room income within the area, the restoration continued with marked RevPAR development in contrast with This fall enterprise is now barely greater than the extent seen in 2019, as was the case within the third quarter.
- The Americas area, which primarily displays the efficiency of Brazil (65 p.c of room income for the area), reported RevPAR development up 15 p.c in contrast with This fall enterprise continued to learn from worth will increase, notably supported by congresses and occasions that happened over the interval.
The Luxurious & Life-style (L&L) division reported an 8 p.c improve in RevPAR in contrast with This fall 2022, pushed primarily by greater occupancy charges.
- The Luxurious phase, which accounts for 77 p.c of the division’s room income, posted a ten p.c improve in RevPAR in contrast with This fall 2022. This improve was pushed by the Asia-Pacific area. Though occupancy charges improved clearly, they’re nonetheless lagging pre-crisis ranges by 5 factors.
- Life-style RevPAR was secure in contrast with This fall 2022. The extra fast restoration on this phase in 2022 led to a much less favorable foundation of comparability, amplified by the soccer World Cup which happened in Qatar in This fall 2022. Adjusted from this occasion, RevPAR within the Life-style phase elevated by 6 p.c over the quarter.
Consolidated Income
The group reported income of €5,056 million in 2023, up 18 p.c like-for-like (LFL) in contrast with 2022. This development breaks down right into a 17 p.c improve for the PM&E division and 22 p.c for the Luxurious & Life-style division.
Scope results, linked primarily to the full-year impact of Paris Society (acquired in 2022) and the takeover of Potel & Chabot (in October 2023) within the Luxurious & Life-style division (the Lodge Belongings & Different phase), positively contributed €285 million.
Forex results had a unfavourable affect of €228 million, stemming primarily from the Australian Greenback (down 7 p.c), the Egyptian Pound (down 40 p.c), and the Turkish Lira (down 32 p.c).
Premium, Midscale, and Economic system Income
PM&E consists of charges from Administration & Franchise (M&F), Companies to House owners, and Lodge Belongings & Different actions of the group’s PM&E manufacturers and generated income of €2,960 million, up 17 p.c LFL versus 2022. This improve displays the strong enterprise ranges recorded over the interval.
M&F income stood at €854 million, up 27 p.c LFL versus 2022 and according to the rise in RevPAR over the interval (up 24 p.c).
Companies to House owners income, which incorporates the Gross sales, Advertising and marketing, Distribution, and Loyalty division in addition to shared providers and the reimbursement of lodge prices, got here to €1,076 million up 11 p.c LFL in contrast with 2022. This improve, which was extra measured than RevPAR development, displays the comparability foundation from the earlier yr which included the rebilling of prices incurred by Accor as a part of its reception providers for supporters throughout the soccer World Cup in Qatar.
Lodge Belongings & Different income was up 15 p.c LFL relative to 2022. This phase, carefully linked to enterprise in Australia, was impacted by a much less favorable base impact owing to the restoration in leisure tourism which materialized sooner than for the remainder of the group.
Luxurious & Life-style Income
Luxurious & Life-style consists of charges from M&F, Companies to House owners, and Lodge Belongings & Different actions of the group’s Luxurious & Life-style manufacturers and generated income of €2,175 million, up 22 p.c LFL versus 2022. This improve additionally displays enterprise ranges over the interval, as was the case for the PM&E division.
M&F income stood at €446 million, up 32 p.c LFL versus 2022, pushed by the rise in RevPAR (up 20 p.c) and a pointy acceleration in lodge incentive charges in administration contracts.
Companies to House owners income, which incorporates the Gross sales, Advertising and marketing, Distribution, and Loyalty division in addition to shared providers and the reimbursement of lodge prices, got here to €1,359 million, up 18 p.c LFL, in contrast with 2022.
Lodge Belongings & Different income was up 32 p.c LFL relative to 2022. It included a scope impact following the takeover of Paris Society in November 2022 and Potel & Chabot in October 2023.
Administration & Franchise Income
M&F income got here to €1,300 million, up 29 p.c LFL in contrast with 2022. This modification displays RevPAR development within the group’s completely different geographic areas and segments (up 23 p.c in contrast with 2022) amplified by the sharp improve in incentive charges beneath administration contracts.
Consolidated EBITDA
Consolidated EBITDA got here to €1,003 million for 2023, a record-high degree. The efficiency stemmed from the restoration in income and self-discipline in prices of Companies to House owners, enabling the group to submit marginally optimistic EBITDA for the interval as anticipated.
Premium, Midscale, and Economic system EBITDA
The PM&E division generated EBITDA of €750 million, up 35 p.c LFL in contrast with 2022.
M&F reported EBITDA of €611 million, up 23 p.c LFL in contrast with 2022, regardless of the switch of employees from the holding to the PM&E division as a part of the brand new group.
Companies to House owners EBITDA got here to €24 million in 2023, barely optimistic because of strict price management.
Lodge Belongings & Different EBITDA was down 10 p.c LFL relative to 2022. The decline within the EBITDA margin mirrored price inflation in actions in Australia after the sharp improve in room costs reported in 2022. This decline was additionally amplified by the sharp improve in income from variable-rent belongings in Brazil and Turkey with a decrease EBITDA margin owing to the character of those belongings.
Luxurious & Life-style EBITDA
The Luxurious & Life-style division generated EBITDA of €354 million, up 82 p.c LFL relative to 2022.
M&F enterprise posted EBITDA of €298 million, up 43 p.c LFL versus 2022, reflecting the advantages of the working leverage of the enterprise.
Companies to House owners EBITDA got here to €25 million in 2023, additionally barely optimistic because of strict price management.
Lodge Belongings & Different EBITDA largely mirrored the mixing of Paris Society since end-2022.
Web revenue
Web revenue group share was €633 million in 2023, in contrast with €402 million in 2022.
In 2023, the share of internet revenue of equity-accounted investments elevated to €44 million, versus €33 million in 2022, primarily pushed by AccorInvest, which loved a rebound in enterprise, significantly in Europe.
Money Movement Technology
Throughout FY 2023, group recurring free money stream improved from €373 million in 2022 to €596 million in 2023. The money conversion price subsequently got here to 59 p.c, according to the group’s goal of “greater than 55 p.c.”
The curiosity paid decreased from 2022 to 2023, benefiting from the rise in rates of interest on money investments.
Recurring expenditure, which incorporates “key cash” paid by HotelServices for improvement in addition to digital and IT investments, was barely greater than in 2022 at €218 million, given the group’s acceleration within the Luxurious & Life-style phase, according to the steerage supplied on the Investor Day on June 27, 2023.
The change in working capital, which was optimistic, displays the reimbursement of the stability of the charges by AccorInvest which had been topic of a deferral of fee within the context of the COVID-19 pandemic.
Group internet monetary debt at Dec. 31, 2023, got here to €2,074 million, versus €1,658 million at Dece. 31, 2022.
At December 31, 2023, Accor’s common price of debt was 2.5 p.c with a mean maturity of round three years, with no main repayments due earlier than 2026.
At end-December 2023, mixed with the undrawn credit score facility of €1 billion signed in 2023, Accor had a liquidity place of €2.3 billion.
Outlook
The group confirmed its medium-term development prospects as disclosed throughout the Investor Day on June 27, 2023:
- Annualized RevPAR development of between 3 p.c and 4 p.c (CAGR 2023-27)
- Common annual community enlargement of between 3 p.c and 5 p.c (CAGR 2023-27)
- M&F income development of between 6 p.c and 10 p.c (CAGR 2023-27)
- A touch optimistic EBITDA contribution from Companies to House owners
- EBITDA development of between 9 p.c and 12 p.c (CAGR 2023-27)
- Recurring free money stream conversion in extra of 55 p.c
A shareholder payout of round €3 billion over 2023-2027 together with notably a share buy-back program for an quantity of round €400 million to be launched throughout 2024.
