Accor: Outside of Asia, Revenue at Pre-Pandemic Level

Accor in the third quarter posted record revenue per available room levels, which exceeded 2019 levels, the company announced Wednesday.

“Excluding Asia-Pacific, where activity is now recovering, all regions saw growth compared with 2019,” Accor CEO Sébastien Bazin said in a statement.

Overall, Accor’s third-quarter occupancy was 66.9 percent, down 5.6 percentage points from 2019 levels. Its average room rate was €107.90, up 23.3 percent; and its RevPAR was €72.20, up 13.9 percent.

Regional Performance

In the Americas region, which includes North, Central and South America as well as the Caribbean, Accor reported third-quarter occupancy at 62.6 percent, down 2.6 percentage points from Q3 2019. Average room rate increased 16.4 percent to €142.60, and RevPAR increased 12 percent to €89.30.

In India, Middle East, Africa and Turkey, Accor reported occupancy of 65.1 percent, up 0.5 percentage points from the third quarter of 2019. ADR increased 67 percent to €127.40, and RevPAR rose 68.3 percent to €83. This region saw the highest percentage increases, according to Accor.

Asia-Pacific saw fewer Q3 increases due to slower recovery from the pandemic. Occupancy decreased 12.3 percentage points from Q3 2019 to 60.6 percent, while ADR increased 9.6 percent to €86.50, and RevPAR decreased 8.5 percent to €52.40.

Accor reported 72.3 percent third-quarter occupancy in North Europe, down 6.7 percentage points from 2019. ADR was €109.80, up 18.9 percent, and RevPAR was €79.40, up 8.9 percent. South Europe saw similar growth, with 73.4 percent occupancy, down 2.8 percentage points, with average room rate up 25.2 percent to €103.60, and RevPAR up 11 percent to €76.

Revenue and Forecasting

Accor has structured its brands into two main divisions, effective Oct. 1. The grouping includes the “Economy, Midscale & Premium Division” with brands such as ibis, Novotel, Mercure, Swissôtel, Mövenpick and Pullman, and the Luxury & Lifestyle Division, including Accor’s luxury brands lifestyle entity, Ennismore.

The company’s third-quarter consolidated revenue increased 83 percent year over year to nearly €1.15 billion, according to Accor.

Accor projects full-year 2021 earnings before interest, taxes, depreciation, amortization and restructuring or rent costs of €610 million to €640 million.

Hotel Development

Accor returned to pace in development and room openings, including 93 new hotels in the third quarter with an additional 15,300 rooms, reporting 2.4 percent growth in the last 12 months. The latest developments expanded Accor’s portfolio to 5,357 hotels, providing more than 789,000 rooms, with a development pipeline of 1,218 hotels and 212,000 rooms.

Angelique Platas www.businesstravelnews.com