Accor's full-year 2024 revenue per available room (RevPAR) increased 5.7 per cent year on year, the hospitality group said, driven in part by ¡°resilient¡± business travel demand.

"Room revenue growth was driven both by business and leisure, which proved remarkably resilient,¡± Accor CFO Martine Gerow said during a Thursday conference call. Gerow also said that large corporates, as a category, reported double-digit growth in room revenue, primarily driven by demand from the tech and financial services sectors.

However, Accor chairman and CEO S¨¦bastien Bazin conceded that ¡°it¡¯s very difficult for us to assess if a trip is done for business or leisure. It¡¯s all combined today. Data doesn¡¯t really show us the main purpose of the trip, but ¡®bleisure¡¯ is more true today than it has ever been¡±.

He added that, based on Accor¡¯s data, people tend to travel from Thursday night to Tuesday morning, working remotely from the hotel on Friday and Monday, while visiting the destination over the weekend.

The France-based hospitality group reported a 11 per cent year-on-year increase in revenue to €5.6 billion, which breaks down into a 5 per cent increase for the group¡¯s Premium, Midscale and Economy (PM&E) division and a 19 per cent increase for its Luxury & Lifestyle (L&L) division.

The global average room rate for 2024 was €113, marking a 3.8 per cent year-on-year increase, while occupancy rate increased 1.2 percentage points to 66.7 per cent. RevPar increased 5.7 per cent to €75.

The average room rate in Europe and North Africa was €103 ¨C the highest of any region ¨C which represents a 2.9 per cent year-on-year increase. RevPar in the region increased 3.3 per cent to €69, while occupancy rate increased 0.3 percentage points to 67.3 per cent for the year.

Consolidated recurring EBITDA (earnings before interest, taxes, depreciation and amortisation) came to €1.1 billion for 2024, a new record for Accor and up 12 per cent on the previous year.

Bazin said the record performance reflects ¡°the strength of our brands and our digital tools, the renewed confidence of our partners and the efficiency of our organisation based on two autonomous and complementary divisions¡± and added that ¡°we are approaching 2025 with confidence and the ambition to once again deliver excellent results¡±.

Q4 results

Systemwide RevPar for the fourth quarter of 2024 saw a 5.8 per cent increase to €77, while occupancy rate increased 1.6 percentage points to 67.2 per cent and average room rates increased 3.3 per cent to €114.

In Europe and North Africa RevPar increased 1.9 per cent to €67, driven by higher occupancy rates which increased 1.3 percentage points to 66.3 per cent. Average room rates for the region were €101, up 0.2 per cent compared to the same period in 2023.

Accor¡¯s three core markets in the region ¨C France, Germany and the UK ¨C continued to drive momentum on the fourth quarter, the company said, with RevPAR growth ¡°slightly stronger¡± in Germany than in France and the UK.

In France, which accounts for 42 per cent of the region¡¯s room revenue, the change in RevPAR in Paris was ¡°slightly negative¡± in the fourth quarter, due to ¡°an unfavourable basis of comparison¡± with the Rugby World Cup in October 2023. However, ¡°strong¡± international demand in December 2024, particularly from the US, helped to turn this around.

The PM&E division posted a 4 per cent increase in RevPAR, driven equally by prices and occupancy, while the L&L division saw a 10 per cent year-on-year increase in RevPAR for the quarter.

In 2024, Accor opened 293 hotels, corresponding to more than 50,000 rooms. As of December 2024, the group has a portfolio of 5,682 hotel (equivalent to 850,285 rooms) and a pipeline of more than 1,381 properties.