(Reuters) - Accor, Europe's largest hotel group by portfolio, reported annual room revenue growth slightly above market expectations on Thursday, driven by higher prices and occupancy rates across its
Accor Reports Stronger-Than-Expected Room Revenue Growth for 2024
(Reuters) - Accor, Europe's largest hotel group by portfolio, reported annual room revenue growth slightly above market expectations on Thursday, driven by higher prices and occupancy rates across its regions.
The operator of Sofitel luxury hotels and budget brand Ibis said its revenue per available room (RevPAR), a key performance measure for the hotel industry, rose 5.7% in 2024.
That slightly beat analysts' average estimate of a 5.2% increase, according to a company-compiled poll.
In the fourth quarter, RevPAR grew 2% in the Europe North Africa region and 5% in the Middle East, Africa and Asia-Pacific region, of which China accounts for 18%.
While the situation improved in China in the quarter, the year-over-year change in RevPAR remained negative.
Domestic travel demand in China has been weak as people tighten their purse strings amid poor macroeconomic conditions in the world's second-largest economy and worry over wage and job security.
Luxury, Accor's fastest-growing business, saw its RevPAR rise 9% from the fourth quarter in 2023.
Accor also confirmed the medium-term growth prospects it announced in 2023, including a 2025 share buyback programme totalling 440 million euros ($459.01 million).
The group's annual recurring earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 12% to 1.12 billion euros in 2024, in line with analysts estimates in a company-compiled poll. ($1 = 0.9586 euros)
(Reporting by Elviira Luoma and Jesus Calero; Editing by Christopher Cushing and Savio D'Souza)
