France-based hotel group Accor reported ¡°solid¡± revenue gains in the year¡¯s first half despite ¡°significant¡± geopolitical headwinds and a negative impact from foreign exchange rates.

Martine Gerow, Accor¡¯s chief financial officer, told a conference call on Thursday (31 July) that business transient and group demand remained ¡°flat¡± during the second quarter, with growth largely driven by the leisure segment.

¡°What we saw in the second quarter is quite similar to what we observed in the first quarter, which is flattish [demand]¡­ This is true for business individuals and groups,¡± she said.

Total revenue between January and June rose by 2.5 per cent year-on-year to €2.7 billion as global occupancy for the year¡¯s first half improved by 0.7 percentage points to 64.7 per cent.

Accor's systemwide Q2 revenue per available room (RevPAR) increased by 4.1 per cent to €78 on a like-for-like, constant-currency basis, according to the company, with the average room rate rising by 3 per cent to €114.

The company¡¯s RevPAR in the Europe and North Africa region increased by 3.3 per cent to €79 in Q2 compared to the same period of 2024. The region¡¯s average room rate increased marginally by 0.7 per cent year-on-year to €103 and occupancy rose by 1.8 percentage points to 72.8 per cent.

Results were mixed for Accor¡¯s key European markets during the quarter. In its home country France, which accounts for 43 per cent of the region¡¯s revenue, RevPAR was ¡°strongly positive¡± in Paris, which benefitted from a favourable comparison due to the pre-Olympic Games impact in June 2024. Performance in the French regions was ¡°more moderate¡±, with RevPAR returning to ¡°slightly positive¡± growth. ?

There was continued decline in RevPAR in the UK ¨C both in London and the regions ¨C which Accor attributed to ¡°weak confidence in the country¡¯s economic situation¡±.

Germany also saw a year-on-year decline in RevPAR due to ¡°a highly unfavourable comparison basis¡± in June 2024 linked to the 2024 European Football Championship.

While the company expects ¡°softer¡± second-half revenue growth (largely due to the comparative impact of the 2024 Olympic Games in France), group chairman and CEO S¨¦bastien Bazin reconfirmed the group's full-year guidance on RevPAR growth, which is expected to increase by between three and four per cent year-on-year. EBITDA (earnings before interest, taxes, depreciation and amortisation) is also expected to increase by between nine and 10 per cent on a constant-currency basis.