Accor, a world leading hospitality group, reported first-quarter 2022 revenue of 701 million euros, up 85 percent like-for-like (LFL) versus Q1 2021, according to a recent company announcement.
By activity, this growth breaks down into a 105 percent increase for hotel services and 52 percent for hotel assets & other.
To provide a comparison with the 25 percent decline in RevPAR, the like-for-like decline in revenue versus Q1 2019 is 23 percent.
Changes in the scope of consolidation (acquisitions and disposals) contributed a positive 13 million euros, largely due to the integration of the companies which are now part of Ennismore over 2021. Currency effects had a positive impact of 18 million euros, mainly due to the US dollar (+7 percent).
“Accor’s performance in the first quarter of 2022 confirms the clear upturn in business across all regions and the renewed momentum in tourism, food services and entertainment,” Sébastien Bazin, Chairman and Chief Executive Officer of Accor, said.
According to Bazin, the results are notably driven by Accor’s market dynamics in Europe, the Middle East and the Americas as well as the strong demand for the Group’s luxury and lifestyle hotels, and domestic travel.
“Such underlying trends, combined with borders reopening give us confidence that our performance will continue to improve month after month, with prices already above 2019 level. Our brands are attractive, ideally positioned, and the augmented hospitality ecosystem we have built over the past years is attracting an increasing number of guests and owners.”
Accor’s business has rebounded sequentially every quarter since Q2 2021. The outbreak of the Omicron variant caused only a brief hiccup in January, and the recovery seen in February gained further momentum in March. This rebound reflects both the sustained increase in the number of business and leisure domestic guests, and border reopenings which accelerated the return of international travelers. It was accompanied by a sharp increase in prices, which are now above 2019 levels for the last 4 months in a row across the Group, driven by demand and exacerbated by inflation.
During the first quarter of 2022, Accor opened 26 hotels, representing about 3,700 rooms, for net growth in the network of 2.5 percent over the twelve-month period. At end-March 2022, the Group had a portfolio of 777,849 rooms (5,304 hotels) and a pipeline of about 212,000 rooms (1,212 hotels).
For 2022, the Group is confirming its forecast of net growth in the network of 3.5 percent.
“In the coming months, we will continue to focus our efforts on accelerating the development of our network, promoting our brands as well as attracting and retaining more and more customers,” Bazin added.