​Accor Shatters Earnings Record with Over €1 Billion EBITDA in 2023

​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.

Mercure Hotel budapest 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.

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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.

Raffles Hotel. Singapore. (12756565474) 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.

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