Accor consolidates ‘leading position’ in luxury and lifestyle

Accor has set eyes on becoming a market leader in luxury and lifestyle after it reported a 22% increase in revenue from this sector compared to the first half of 2023.

 

The French hotel giant posted strong growth overall, with group EBITDA (earnings before interest, taxes, depreciation and amortization) at £424m for the first half of 2024, up 13% compared to this period last year.

 

Its premium, midscale and economy division reported a 4% increase in RevPAR (revenue per available room) compared to the second quarter of 2023 as a result of increased prices, while the luxury and lifestyle segment saw an 8% increase in RevPAR primarily due to higher occupancy rates.

 

The solid performance from Accor’s luxury and lifestyle division was also bolstered by its takeover of French high-end catering brand Potel & Chabot in October 2023, which is believed to have contributed £98.4m.

 

In March this year, Accor’s subsidiary Ennismore, which operates brands such as Hyde, Gleneagles and Hoxton, acquired a 51% stake in Rikas Restaurants Management, a Dubai-based hospitality company offering premium dining.

 

Last month, Accor partnered with luxury goods brand LVMH through a strategic investment in the Orient Express brand, which owns two sailboats and plans to operate future hotels and trains.

 

Sébastien Bazin, chairman and chief executive of Accor, said: “Activity in the second quarter remained strong in all regions and for all our brands, our pace of development accelerated and our leading position in luxury and lifestyle was further strengthened by major partnerships. These performances enable us to raise our RevPAR target for 2024 and to reaffirm our confidence in the group’s strength and ambition.

 

“The coming weeks will also be marked by the Paris 2024 Olympic and Paralympic Games, of which Accor is one of the partners. For this unique event, our teams, who have been mobilised for months, will be putting their expertise, their passion for hospitality and their generosity at the service of the Athletes’ Village, the Media Village and all visitors to our hotels, thereby helping to raise the profile of France throughout the world.”

 

Accor was founded in 1967 and now owns 55 brands, including Sofitel, Novotel, Raffles and Pullman.