Accor Sees Hospitality Activity in April-June Above 2019 Levels

Accor, a world leading hospitality group, recently announced that its activity in the second quarter of the year recovered to levels close to, if not above, those of 2019.

The announcement follows the Group’s significant rebound in H1 2022 after two years of major Covid-related disruptions in the tourism and hospitality industry.

Accor in Q2 2022 recorded very strong activity in almost all regions and for all of its brands.

According to the Group, the rebound reflects both the recovery of 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, driven by demand and emphasized by inflation.

Accor said the only “laggards” in Q2 2022 were China, which is impacted by travel restrictions as part of its strict enforcement of a “zero-Covid” policy, and South East Asia, which is highly dependent on Chinese visitors.

First-half 2022: Revenue up 109% to €1,725m

During first-half 2022, Accor opened 85 hotels, representing 11,700 rooms, i.e., net system growth of 1.8 percent in the last 12 months. At end-June 2022, the Group had a hotel portfolio of 777,945 rooms (5,300 hotels) and a pipeline of 212,000 rooms (1,215 hotels).

The Group reported H1 2022 revenue up at of 1,725 million euros, up 97 percent like-for-like compared with H1 2021. By activity, this growth breaks down into a 119 percent increase for HotelServices and 57% for Hotel Assets & Other.

Source: Accor

For 2022, the Group is confirming its forecast of net unit growth in the network of around 3.5 percent.

“Once again this quarter, Accor reported a very strong growth in business, exceeding pre-crisis levels for the first time… The summer will confirm these trends and the fall promises to be strong with the recovery of major seminars and conventions,” Accor Chairman and Chief Executive Officer Sébastien Bazin said, adding that the Group remains attentive to the evolution of the geopolitical and economic environment.

“At this stage, the Group should report a strong growth in EBITDA, with a target of more than 550 million euros for the full-year 2022,” he added.