In addition to IHG, Accor ($AC (+0.9%) ) also published its annual figures last week. The CEO opened and spoke about the geopolitical uncertainties and economic differences between regions, but at the same time emphasized the strong growth in international travel. He emphasized that generative AI is playing an increasingly important role in travel planning and that Accor is increasingly focusing on the use of AI to increase efficiency and improve customer relations without replacing the human factor.
Martine Gerow, Group CFO, presented the financial results for 2024 and underlined the resilience of the hospitality industry. RevPAR (revenue per room) increased by 5.7% for the full year, exceeding expectations. Room revenue growth was driven by robust demand in both business and leisure travel, with large corporate customers in particular recording double-digit growth. Net unit growth amounted to 3.5%, confirming Accor's medium-term target of 3% to 5%. Revenue amounted to 5.606 billion euros, an increase of 11% compared to the previous year. Recurring EBITDA increased by 12% to 1.120 billion euros. In addition, recurring free cash flow reached an all-time high of 614 million euros and 686 million euros were distributed to shareholders.
Regionally, the Americas recorded strong growth, particularly Brazil. Although there was a sequential improvement in China, growth remained negative. The Middle East, Africa and Turkey recorded high capacity utilization, which was 10 percentage points above the pre-crisis level. Double-digit RevPAR growth continued in Southeast Asia. Luxury properties achieved RevPAR growth of 10%, with the luxury segment performing better overall than the premium, midscale and economy (PME) segment.
In the PME segment, net unit growth amounted to 2.8%. Revenue per available room remained stable at EUR 1,200. In the luxury and lifestyle segment, 6,000 new rooms were opened, a threefold increase compared to before the pandemic. Revenue growth in this segment amounted to 19%. Group revenue amounted to 5.6 billion euros, an increase of 11%. The Group's EBITDA reached a record level of 1.120 billion euros, an increase of 12% compared to the previous year. Net profit amounted to 610 million euros, while diluted earnings per share rose by 5% to 2.33 euros. Net debt amounted to almost 2.5 billion euros at the end of 2024.
Accor maintains its policy of distributing 50% of recurring free cash flow to shareholders, which corresponds to a dividend of 1.26 euros per share - an increase of 7% compared to the previous year. The company believes it is well positioned to achieve its medium-term targets defined at the Capital Market Day.
CEO Bazin emphasized Accor's commitment to ESG (environmental, social and governance) initiatives and referred to new measurement tools such as GAIA 2.0 to reduce water consumption. Progress has also been made in the areas of gender parity and equal pay. He also praised the successful implementation of the division of the company into the PME and Luxury & Lifestyle divisions. The Accor Live Limitless loyalty program gained over 10 million new members in 2024 and will soon welcome its 100 millionth member.
A particular focus is on prioritizing revenue per room over net unit growth, resulting in higher absolute revenue and EBITDA figures. Regions with strong growth, including the Middle East, India and Asia Pacific, are a particular focus. Accor also plans to sell its stake in AccorInvest and reaffirmed its commitment to share buybacks. The Board recommended the extension of Bazin's mandate for a further three years, underlining the confidence in his strategic leadership.
The following topics were discussed in the subsequent Q&A session:
AccorInvest: Jean-Jacques Morin confirmed that the sale of AccorInvest was always part of the plan and that now was the right time as the performance of the portfolio is strong and there is a lot of interest in the market.
Targets for 2025: Martine Gerow explained that although there will not be a major event like the Olympics in 2025, there is a strong pipeline of events. January has already got off to a good start and the company is optimistic about the year.
Key Money: Gerow clarified that Accor does not see any unexpected developments in Key Money and the planned investments are in line with the strategic plan.
EBITDA growth: Bazin reiterated the target of average annual EBITDA growth of 9% to 12% between 2023 and 2027, noting that some years are better than others, but that margin improvement is essential.
Use of proceeds from AccorInvest: The majority of the proceeds from the sale of AccorInvest are to be returned to shareholders.
Climate change: Bazin explained that Accor conducts an annual risk assessment that takes climate change into account. New hotels are no longer developed in regions with water shortages or an increased risk of fire.
China: Accor continues to see China as a strategically important market and maintains close relationships with the leading Chinese hotel chains.
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