Investing.com — Accor (EPA:ACCP) on Thursday reported strong results in the third quarter, beating market expectations.
Revenues for the period came in at €1,434 million, 4% ahead of consensus estimates of €1,384 million.
“This good performance was driven in particular by the dynamism of our Luxury & Lifestyle brands, sustained growth in high-potential regions and the positive impact in France of the Olympic Games, for which Accor was one of the Premium partners,” said Sébastien Bazin, chairman and chief executive at Accor in a statement.
The growth was further boosted by a small beat in RevPAR, which rose 5.3% compared to the consensus estimate of 5.2%.
Although the company raised its EBITDA guidance range for the year, the midpoint of the new range — €1,100 million to €1,125 million — aligns closely with market expectations of €1,115 million.
“The midpoint of the upgraded EBITDA guidance range is in-line with consensus, but numbers may trickle up as consensus banks the Q3 beat,” said analysts at Jefferies in a note.
Accor has shown progress on multiple fronts, including net unit growth, which posted a 3.2% growth in the third quarter. Which is comfortably within the company's full-year 2024 guidance range.
The outlook for FY24 remains unchanged, with RevPAR growth expected at 4%-5% and NUG guidance holding at 3%-4%.
Execution remains critical to Accor's equity story, and the company appears well-positioned for sustainable growth.
The third quarter's performance flags the benefits of geographic diversification, with particularly strong contributions from the Americas, where RevPAR jumped 13.2%.
However, regional results were more mixed elsewhere, with the Middle East, Africa, and Asia Pacific reporting a modest RevPAR increase of just 0.7%, below expectations.
Accor continues to target divestments to streamline operations, including its stake in AccorInvest.
The possibility of injecting another €34 million into AccorInvest could weigh on sentiment in the short term, but the ongoing progress toward disposing of the stake is part of the group's plan.
The company’s future trajectory looks promising, with the development pipeline growing to 231,000 rooms from 219,000 rooms in the year ago quarter.
Analysts at Jefferies remain positive, reaffirming their “buy” rating, as Accor’s growth, profitability, and returns continue to outshine many of its peers.
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