Asia drives Accor Q1 2023 growth: Revenue up 54%

Mercure Kuala Lumpur Glenmarie - Malaysia

Accor, the global hospitality group, has reported a strong Q1 2023 with revenue up by 54% like-for-like (LFL) compared to Q1 2022, reaching €1,139 million.

This growth was driven by the robust rebound of the hotel industry in Asia, good price levels, and increased occupancy rates.

As a result, Accor has revised its 2023 outlook upwards, now expecting double-digit RevPAR growth compared to 2022.

Sébastien Bazin, Chairman and CEO of Accor, attributed the positive results to the company’s strong brand presence, dedicated teams, and the growing desire for travel and adventure among guests.

Accor’s first-quarter performance was notably bolstered by the lifting of the zero-COVID policy in China in late 2022.

In Q1 2023, the company opened 36 hotels, adding around 4,400 rooms and achieving a net network growth of 2.9% over the past 12 months.

As of the end of March 2023, Accor had a portfolio of 800,321 rooms across 5,444 hotels and a pipeline of around 214,000 rooms in 1,241 hotels.

Revenue growth in Q1 2023 was distributed across divisions, with a 62% LFL increase for the Premium, Midscale and Economy division and a 52% LFL increase for Luxury & Lifestyle.

Management & Franchise (M&F) revenue saw a 71% LFL growth compared to Q1 2022, while Services to Owners revenue increased by 60% LFL year on year.

The company has also made several key appointments, including Omer Acar as CEO of Raffles & Orient Express, Kamal Rhazali as Secretary General and General Counsel of the Luxury & Lifestyle division, and Martine Gerow as Group Chief Finance Officer.

Accor also announced the completion of the disposal of its remaining stake in H World Group Limited (formerly Huazhu Group Limited) for $460 million, contributing to its asset-light strategy and simplifying its balance sheet. –