Accor Shatters Earnings Record with Over €1 Billion EBITDA in 2023
Posted by Emily on 22nd Feb 2024
Accor has surpassed the €1 billion EBITDA threshold for the first time, propelled by robust demand. This milestone underscores a year of remarkable financial performance for the global hospitality leader known for its Raffles, Fairmont, and Mercure brands. Reporting a €1,003 million EBITDA, Accor's performance for the year ending December 31, 2023, reflects significant growth across its diversified portfolio.
Davidi Vardi, CC BY-SA 4.0, via Wikimedia Commons
The company's premium, midscale, and economy segments generated nearly €3 billion in revenue, marking a 17% increase on a like-for-like basis from 2022, with EBITDA climbing 35% to €750 million. Its luxury and lifestyle segment also saw impressive gains, with revenue reaching €2.2 billion, a 22% increase, and EBITDA soaring 82% to €354 million compared to the previous year.
Accor's strategic expansion continued with the opening of 291 hotels, adding 41,000 rooms and expanding its network by 2.4%. By the end of 2023, Accor's portfolio boasted 5,584 hotels alongside a promising pipeline of 1,315 sites.
Sébastien Bazin, Accor's Chairman and CEO, highlighted the company's unprecedented success, attributing it to growth across all segments and regions. Bazin praised Accor's asset-light model, organizational efficiency, brand desirability, robust distribution and loyalty tools, and financial discipline. Despite a complex geopolitical landscape, Accor looks forward to 2024 with optimism, poised for continued expansion and innovation in responsible hospitality.
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Bernard Spragg. NZ from Christchurch, New Zealand, CC0, via Wikimedia Commons
In the fourth quarter, the premium, midscale, and economy division's revenue per available room (RevPAR) grew by 12%, mainly driven by pricing rather than occupancy increases. The UK, representing 13% of room revenue in Europe and North Africa, exhibited balanced RevPAR growth. The luxury and lifestyle segment also enjoyed an 8% RevPAR increase thanks to rising occupancy rates.
We invite our readers to share their thoughts and comments below on Accor's historic achievement and its implications for the hospitality industry.