Accor breaks €1b EBITDA mark with record full-year results for 2023

Accor has reported €1b EBITDA for the first time in its history driven by “solid demand” in 2023.

The global hotel giant has set new financial records following strong growth in its full-year 2023 results.

Accor, which owns the Raffles, Fairmont and Mercure brands, reported EBITDA of €1,003m for the operating period ended 31 December 31 2023.

Its premium, midscale and economy portfolio generated revenue of almost €3b, up by 17% on a like-for-like basis compared to 2022, while EBITDA hit €750m, up 35%.

Meanwhile, its luxury and lifestyle hotels generated €2.2b in revenue, up 22%, and EBITDA for the portfolio was reported at €354m, up 82% compared to 2022.

Over the period, Accor opened 291 hotels, equating to 41,000 rooms. At the end of 2023, the group’s portfolio included 5,584 hotels, with a further 1,315 sites in the pipeline.

“Accor generated record-high results in 2023, with EBITDA breaking the €1 billion mark for the first time in its history,” said Sébastien Bazin, chairman and chief executive officer of Accor.

“Over the past year, the group achieved growth in all segments and geographies, illustrating the strength of its asset light model, the efficiency of its organization based on the two divisions, premium, midscale and economy on the one hand, and luxury and lifestyle on the other, the desirability of its brands, the strength of its distribution and loyalty tools, as well as its financial discipline.”

“While the geopolitical backdrop remains complex, 2024 is set to be rich in major international events which should continue to fuel growth and we start this new year with confidence. Accor is ideally positioned to continue its bold expansion and bring to life its vision of a pioneering, responsible hospitality industry that creates value for its shareholders and its partners.”

For its fourth quarter, revenue per available room (revpar) for the premium, midscale and economy division grew 12%, which the group said was driven “more by prices than the rise in occupancy rates”.

The UK, which represents 13% of room revenue in the Europe and North Africa region, posted a “solid and balanced growth in RevPar”.

Luxury and lifestyle revpar for the quarter, meanwhile, was driven by occupancy rates and saw an 8% increase.