Revpar growth for Accor hotels in UK is limited
Accor hotels reported limited revenue per available room (revpar) growth in the UK during the first three months of 2019, according to the company's financial results for the first quarter of the year.
Revpar across the country as a whole, where around 250 Accor hotels operate across 10 brands, increased by 0.9%, highlighting the sharp contrast in performance between London and the regions.
In London persistently strong inbound tourism helped revpar to grow by 5.8%, while a decline in business attributed to weak corporate demand amid Brexit uncertainties resulted in a revpar drop of 4% in the regions.
The global results for the French company saw a revpar increase of 1.6%, with like for like revenue up 8.8%. Consolidated turnover was up 34.2% to €987m (£853m).
During the first quarter, the company opened 71 hotels, representing 8,300 bedrooms. The pipeline for future openings is 1,135 properties (200,000 bedrooms). Globally, Accor has a portfolio of more than 4,600 hotels.
Sébastien Bazin, chairman and chief executive of Accor, said: "We achieved sustained business development over the period, in line with our medium-term objectives, and continued to strengthen our pipeline, with an ever-increasing share of luxury hotels, which generate higher fees per room.
"Performing well and growing steadily stronger, the Group can tackle the rest of the year with confidence."
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