Accor increases revpar target for 2023

Accor eyes further growth as it anticipates revpar will land between 15% and 20% in 2023.

In February, Accor reported a rebound in its performance as the return of international and domestic travel saw it bounce back from the pandemic. The global hotel giant, which owns the Raffles, Fairmont and Mercure brands and a controlling stake in Ennismore, reported net profit hit €402m last year, up from €85m in 2021.

At the time it said it expected group revpar in 2023 to increase between 5% and 9% on a like-for-like basis, but the group is now anticipating 2023 revpar growth of 15% to 20% compared with 2022.

The global hotel group is now forecasting earnings before interest, tax, depreciation, and amortisation (EBITDA) to be as high as €960m for 2023 as embarks on a “new chapter of rapid, profitable growth”, while targeting 9% to 12% annualised growth in EBITDA between 2023 and 2027.

Sébastien Bazin, chairman and chief executive officer of Accor said the business had undergone “radical transformation” over the last decade.

“Now asset light, the group has expanded its brand portfolio to become the leader in luxury and lifestyle, strengthened its geographical footprint and simplified its organisation, while preserving its financial independence and the strength of its balance sheet. With its two recently created divisions - Premium, Midscale and Economy on the one hand, and Luxury & Lifestyle on the other - the group is embarking on a new chapter of rapid, profitable growth.

“We have set ambitious targets for the coming years: an EBITDA target for 2023 of between €920 and €960 million, an average annual EBITDA growth rate for 2023-2027 of between 9% and 12%, and a return to shareholders of around €3 billion. We have great talents, unique brands, owners’ confidence, efficient digital tools, the energy and the desire. It's now a question of execution."

Last year Accor opened 299 hotels, corresponding to 43,000 rooms, a net growth of 3.2%. Accor is one of the world's largest hospitality companies with more than 5,400 properties and 10,000 food and beverage venues in more than 110 countries.