ACCOR ACCELERATES GROWTH

Accor reported revenue of €5,606 million ($6,143.3 million) in 2024, up 11 per cent from 2023. The growth indicates a 5 per cent increase for Accor’s Premium, Midscale and Economy (PM&E) division and 19 per cent for the Luxury & Lifestyle (L&L) division. The total RevPar reported (excluding taxes, across all segments) was up 5.7 per cent in 2024 compared to 2023. 

In 2024, Accor opened 293 hotels globally, corresponding to more than 50,000 rooms, resulting in a net network growth of 3.5 per cent in the last 12 months. At end-December 2024, the group had a hotel portfolio of 850,285 rooms (5,682 hotels) and a pipeline of more than 233,000 rooms (1,381 hotels).

On the back of the stellar performance, we spoke to Paul Stevens, Chief Operating Officer, Middle East, Africa and Türkiye, for Accor’s Premium, Midscale and Economy division, for regional insight.

“2024 was marked by strong performance for Accor in the region, reflecting our adaptability and growth in a dynamic market with particular potential in the UAE and Saudi Arabia. This region benefits both from strong public and private capital that supports a fast growth in tourism.

“We are focused on working with governments and local partners to support tourism and economic objectives, such as Saudi Arabia and Egypt Vision 2030 and UAE 2031’ vision,” he tells TTN.

 

“With 21 new openings and over 3,800 additional rooms, we expanded in key markets like Saudi Arabia, the UAE and Türkiye, where key openings included Novotel Riyadh Sahafa (KSA), Mövenpick Resort Antalya Tekirova (Turkiye) and Mövenpick Hotel & Apartments Ghala Muscat (Oman).

“The Handwritten Collection enriched our portfolio with the brand introduction, while milestones included ibis’s 50th anniversary and Mercure’s 1000th hotel celebrated at Mercure Dubai Deira. Strategic signings like Novotel Riyadh Al Wurud, Handwritten Collection Al Baha, Swissôtel Residences Ras El Hekma and Swissôtel Waterfront Residences at Dubai Islands, ensure we closed 2024 strong, are poised for continued success in 2025.

“Our Premium, Midscale & Economy growth strategy is seizing the opportunity to capture larger market share for our premium brands, while densifying the presence of our midscale and economy brands in Accor’s strongest markets. We are confident that we will continue to maintain our leadership position and accelerate growth. Our brands and business are well-placed to cater for the exceptional tourism growth we foresee in the region.

“What sets Accor apart as a development partner is that we think like an owner, while delivering a level of strength and capacity more powerful than what an owner can achieve independently.  Hotel owners and investors appreciate Accor’s approach to augmented hospitality as an essential way to unlock value and compress their cap rate,” says Stevens.

LUXURY & LIFESTYLE

Growth was unanimous across all segments, as Accor’s Luxury & Lifestyle (L&L) division posted its best performance for the year globally, with a 10 per cent increase in RevPAR compared with Q4 2023, driven by both prices and occupancy.

Luxury, which accounts for 74 per cent of the division's room revenue, posted a 9 per cent increase in RevPAR compared with the fourth quarter of 2023. RevPAR growth was solid across all brands and regions, outperforming the PM&E segment in comparable areas and demonstrating the resilience of the Luxury segment in hotels.

Lifestyle posted an 11 per cent increase in RevPAR compared with the fourth quarter of 2023. This increase was in line with the momentum observed in the first three quarters of 2024. The resort hotel segment again recorded a solid quarter in Turkey, Egypt and the United Arab Emirates. This demonstrates the ever-growing appeal for unique experiences.

 

ACQUISITIONS & PARTNERSHIPS

Last year, Accor, through its subsidiary Ennismore, acquired a 51 per cent stake in Rikas, a hospitality company based in Dubai, specialising in managing high-end restaurants and dining establishments. Ennismore announced the addition of Our Habitas to its global collective of lifestyle brands in the summer of 2024. Our Habitas, a brand whose mission is to create human connection, brings a new dimension to the Ennismore collective of founder-built brands.

Also last year, LVMH joined forces with Accor through a strategic investment in the Orient Express brand, the company that will operate the future hotels and trains, as well as in the entity that owns the two sailboats. The first sailboat is currently under construction at Chantiers de l’Atlantique and the two groups seek a third partner for this new activity.

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