Sébastien Bazin, Chairman and Chief Executive Officer of Accor, said:
“Accor generated record-high results in 2023, with EBITDA breaking the €1 billion mark for the first time in its history. While there were numerous reasons for this success, the solid performances were above all attributable to the Group’s teams. I would like to thank them for their commitment and their know-how in an industry whose strength lies above all in the women and men on the ground daily who raise the profile of our brands with a passionate and generous sense of hospitality. Over the past year, the Group achieved growth in all segments and geographies, illustrating the strength of its asset light model, the efficiency of its organization based on the two divisions, Premium, Midscale and Economy on the one hand, and Luxury and Lifestyle on the other, the desirability of its brands, the strength of its distribution and loyalty tools, as well as its financial discipline.
While the geopolitical backdrop remains complex, 2024 is set to be rich in major international events which should continue to fuel growth and we start this new year with confidence. Accor is ideally positioned to continue its bold expansion and bring to life its vision of a pioneering, responsible hospitality industry that creates value for its shareholders and its partners.”
Driven by resolutely solid demand in 2023, Accor was able to set new records in terms of operating and financial performances. All regions and segments enjoyed strong growth after a year in 2022 marked by the post-Covid pandemic recovery. All performance indicators were in line or exceeded Group guidance in 2023.
This solid performance and the Group’s confidence in continued business growth enabled the Group to return a total of €676 million to its shareholders during the year.
In 2023, Accor opened 291 hotels, corresponding to 41,000 rooms, i.e., net network growth of 2.4% in the last 12 months. At end-December 2023, the Group had a hotel portfolio of 821,518 rooms (5,584 hotels) and a pipeline of 225,000 rooms (1,315 hotels).
Fourth quarter RevPAR
The Premium, Midscale and Economy (PM&E) division grew its RevPAR by 12% versus Q4 2022, still driven more by prices than the rise in occupancy rates.
- The Europe North Africa (ENA) region posted RevPAR up 8% relative to Q4
- In France, which represents 43% of the region’s room revenue, RevPAR growth stabilized. The Paris region has been impacted by an unfavorable calendar levelled off with major events in 2023, such as the Paris Motor Show, the SIAL food show and the SIMA Agriculture show, which did not take place during the The provinces continued to enjoy steady business levels.
- The United Kingdom, which represents 13% of the region’s room revenue, posted solid and balanced growth in RevPAR between London and other
- In Germany, 14% of the region’s room revenue, RevPAR continued to improve compared with previous quarters, notably thanks to Christmas Nevertheless, occupancy rates still harbor strong upside potential. Indeed, they remain significantly behind pre-crisis levels.
- The Middle East, Africa & Asia-Pacific region reported a 19% increase in RevPAR compared with Q4 2022, benefiting from a considerable rebound in business in Asia.
- The Middle East Africa, 26% of room revenue in the region, continued to apply strong price increases buoyed by steady Leisure demand despite the conflict in Israel.
- South-East Asia, 29% of room revenue in the region, saw RevPAR growth comparable to the Middle East, mainly driven by prices and supported by Leisure
- The Pacific, 26% of room revenue in the region, is now entering a normalization phase with more measured RevPAR growth, driven by occupancy rates in the fourth
- In China, 19% of hotel room revenue in the region, the recovery continued with marked RevPAR growth compared with Q4 Business is now slightly higher than the level seen in 2019, as was the case in the third quarter.
- The Americas region, which mainly reflects the performances of Brazil (65% of room revenue for the region), reported RevPAR growth up 15% compared with Q4 2022. Business continued to benefit from price increases, notably supported by congresses and events which took place over the period.
The Luxury & Lifestyle (L&L) division reported an 8% increase in RevPAR compared with Q4 2022, driven mainly by higher occupancy rates.
- The Luxury segment, which accounts for 77% of the division’s room revenue, posted a 10% increase in RevPAR compared with Q4 2022. This increase was driven by the Asia-Pacific region where growth was robust. Although occupancy rates improved clearly, they are still lagging pre-crisis levels by 5
- Lifestyle RevPAR was stable compared with Q4 2022. The more rapid recovery in this segment in 2022 led to a less favorable basis of comparison, amplified by the soccer World Cup which took place in Qatar in Q4 2022. Adjusted from this event, RevPAR in the Lifestyle segment increased by 6% over the
Consolidated revenue
The Group reported revenue of €5,056 million in 2023, up 18% like-for-like (LFL) compared with 2022. This growth breaks down into a 17% increase for the Premium, Midscale and Economy (PM&E) division and 22% for the Luxury & Lifestyle division.
Scope effects, linked mainly to the full-year effect of Paris Society (acquired in 2022) and the takeover of Potel & Chabot (in October 2023) in the Luxury & Lifestyle division (the Hotel Assets & Other segment), positively contributed for €285 million.
Currency effects had a negative impact of €228 million, stemming mainly from the
Australian Dollar (-7%), the Egyptian Pound (-40%) and the Turkish Lira (-32%).
In € millions | 2022 | 2023 | Change (reported) | Change (LFL) (1) |
Management & Franchise | 695 | 854 | +23% | +27% |
Services To Owners | 965 | 1,076 | +11% | +11% |
Hotel Assets & Other | 970 | 1,030 | +6% | +15% |
Premium, Mid. & Eco. (2) | 2,629 | 2,960 | +13% | +17% |
Management & Franchise | 357 | 446 | +25% | +32% |
Services To Owners | 1,178 | 1,359 | +15% | +18% |
Hotel Assets & Other | 114 | 371 | +224% | +32% |
Luxury & Lifestyle | 1,649 | 2,175 | +32% | +22% |
Holding & Intercos | (54) | (79) | N/A | N/A |
TOTAL | 4,224 | 5,056 | +20% | +18% |
(1)Like-for-like = at constant scope of consolidation and exchange rates
(2) Premium, Midscale and Economy division
Premium, Midscale and Economy revenue
Premium, Midscale and Economy, which includes fees from Management & Franchise (M&F), Services to Owners and Hotel Assets & Other activities of the Group’s Premium, Midscale and Economy brands, generated revenue of €2,960 million, up 17% LFL versus 2022. This increase reflects the solid business levels recorded over the period.
Management & Franchise (M&F) revenue stood at €854 million, up 27% LFL versus 2022 and in line with the increase in RevPAR over the period (+24%). The regional performance of Management & Franchise is detailed in the pages hereafter.
Services to Owners revenue, which includes the Sales, Marketing, Distribution and Loyalty division, as well as shared services and the reimbursement of hotel costs, came to €1,076 million up 11% LFL compared with 2022. This increase, which was more measured than RevPAR growth, reflects the comparison basis from the previous year which included the rebilling of costs incurred by Accor as part of its reception services for supporters during the soccer World Cup in Qatar.
Hotel Assets & Other revenue was up 15% LFL relative to 2022. This segment, closely linked to business in Australia, was impacted by a less favorable base effect owing to the recovery in leisure tourism which materialized earlier than for the rest of the Group.
Luxury & Lifestyle revenue
Luxury & Lifestyle, which includes fees from Management & Franchise (M&F), Services to Owners and Hotel Assets & Other activities of the Group’s Luxury & Lifestyle brands, generated revenue of €2,175 million, up 22% LFL versus 2022. This increase also reflects solid business levels over the period, as was the case for the Premium, Midscale and Economy division.
Management & Franchise (M&F) revenue stood at €446 million, up 32% LFL versus 2022, driven by the increase in RevPAR (+20%) and a sharp acceleration in hotel incentive fees in management contracts. The segment performance of Management & Franchise is detailed in the pages hereafter.
Services to Owners revenue, which includes the Sales, Marketing, Distribution and Loyalty division, as well as shared services and the reimbursement of hotel costs, came to €1,359 million, up 18% LFL, compared with 2022.
Hotel Assets & Other revenue was up 32% LFL relative to 2022. It included a significant scope effect following the takeover of Paris Society in November 2022 and Potel & Chabot in October 2023.
Management & Franchise (M&F) revenue
In € millions |
2022 |
2023 |
Change (reported) |
Change (LFL) (1) |
ENA (2) | 427 | 512 | +20% | +21% |
MEA APAC (3) | 212 | 270 | +27% | +38% |
Americas | 56 | 71 | +28% | +32% |
Premium, Mid. & Eco. | 695 | 854 | +23% | +27% |
Luxury | 261 | 326 | +25% | +32% |
Lifestyle | 97 | 120 | +24% | +33% |
Luxury & Lifestyle | 357 | 446 | +25% | +32% |
TOTAL | 1,052 | 1,300 | +24% | +29% |
(1) Like-for-like = at constant scope of consolidation and exchange rates
(2) ENA = Europe North Africa
(3) MEA APAC = Middle East, Africa and Asia-Pacific
Management & Franchise revenue came to €1,300 million, up 29% LFL compared with 2022. This change reflects RevPAR growth in the Group’s different geographic regions and segments (+23% compared with 2022) amplified by the sharp increase in incentive fees under management contracts.
Consolidated EBITDA
Consolidated EBITDA came to €1,003 million for 2023, a record-high level. The performance stemmed from the strong recovery in revenue and strict discipline in costs of Services to Owners, enabling the Group to post marginally positive EBITDA for the period as expected.
In € millions |
2022 |
2023 |
Change (reported) | Change (LFL) (1) |
Management & Franchise | 513 | 611 | +19% | +23% |
Services to Owners | (60) | 24 | N/A | N/A |
Hotel Assets & Other | 140 | 115 | (18)% | (10)% |
Premium, Mid. & Eco. | 593 | 750 | +27% | +35% |
Management & Franchise | 224 | 298 | +33% | +43% |
Services to Owners | (16) | 25 | N/A | N/A |
Hotel Assets & Other | (3) | 30 | N/A | N/A |
Luxury & Lifestyle | 205 | 354 | +72% | +82% |
Holding & Intercos | (123) | (101) | N/A | N/A |
TOTAL | 675 | 1,003 | +49% | +55% |
(1) Like-for-like = at constant scope of consolidation and exchange rates
Premium, Midscale and Economy EBITDA
The Premium, Midscale and Economy division generated EBITDA of €750 million, up 35% LFL compared with 2022.
Management & Franchise (M&F) reported EBITDA of €611 million, up 23% LFL compared with 2022, despite the transfer of staff from the Holding to the PM&E division as part of the new organization.
Services to Owners EBITDA came to €24 million in 2023, slightly positive as a result
of strict cost control.
Hotel Assets & Other EBITDA was down 10% LFL relative to 2022. The decline in the EBITDA margin reflected cost inflation in activities in Australia after the sharp increase in room prices reported in 2022. This decline was also amplified by the sharp increase in revenue from variable-rent assets in Brazil and Turkey with a lower EBITDA margin owing to the nature of these assets.
Luxury & Lifestyle EBITDA
The Luxury & Lifestyle division generated EBITDA of €354 million, up 82% LFL relative to 2022.
The Management & Franchise (M&F) business posted EBITDA of €298 million, up
43% LFL versus 2022, reflecting the benefits of the operating leverage of the business.
Services to Owners EBITDA came to €25 million in 2023, also slightly positive as a result of strict cost control.
Hotel Assets & Other EBITDA mostly reflected the integration of Paris Society since end-2022.
Net profit
In € millions |
2022 |
2023 |
Revenue | 4,224 | 5,056 |
EBITDA | 675 | 1,003 |
EBITDA margin | 16% | 20% |
EBIT | 447 | 723 |
Share of net profit of equity-accounted investments | 33 | 44 |
Non-recurring items | 63 | 12 |
Operating profit | 543 | 779 |
Net profit before profit from discontinued operations | 359 | 623 |
Profit from discontinued operations | 43 | 10 |
Net profit, Group share | 402 | 633 |
Diluted net profit, Group share, per share | 1,39 | 2,22 |
Net profit, Group share was €633 million in 2023, compared with €402 million in 2022.
In 2023, the share of net profit of equity-accounted investments increased to €44 million, versus €33 million in 2022, primarily driven by AccorInvest, which enjoyed a rebound in business, particularly in Europe.
Cash flow generation
In € millions |
2022 |
2023 |
EBITDA | 675 | 1,003 |
Interest paid | -75 | -59 |
Income tax paid | -65 | -144 |
Repayment of lease liabilities | -73 | -100 |
Non-cash revenue and expenses included in EBITDA | 49 | 43 |
Funds from operations | 511 | 743 |
Recurring investments | -159 | -218 |
Change in working capital and contract assets | 20 | 71 |
Recurring free cash flow | 373 | 596 |
Cash conversion | 55% | 59% |
Net debt | 1,658 | 2,074 |
(1) Defined as recurring Free Cash Flow /EBITDA
During FY 2023, Group recurring free cash flow improved significantly, from €373 million in 2022 to €596 million in 2023. The cash conversion rate therefore came to 59%, in line with the Group objective of “higher than 55%”.
The interest paid decreased from 2022 to 2023, benefiting from the rise in interest rates on cash investments.
Recurring expenditure, which includes “key money” paid by HotelServices for development as well as digital and IT investments, was slightly higher than in 2022 at
€218 million, given the Group’s acceleration in the Luxury & Lifestyle segment, in line with the guidance provided at the Investor Day on June 27, 2023.
The change in working capital, which was significantly positive, reflects the reimbursement of the balance of the fees by AccorInvest which had been subject of a deferral of payment in the context of the Covid-19 crisis.
Group net financial debt at December 31, 2023 came to €2,074 million, versus €1,658
million at December 31, 2022.
At December 31, 2023, Accor’s average cost of debt was 2.5% with an average maturity of around three years, with no major repayments due before 2026.
At end-December 2023, combined with the undrawn credit facility of €1 billion signed in 2023, Accor had a liquidity position of €2.3 billion.
Outlook
The Group confirmed its medium-term growth prospects as disclosed during the Investor Day on June 27, 2023:
- Annualized RevPAR growth of between 3% and 4% (CAGR 2023-27)
- Average annual network expansion of between 3% and 5% (CAGR 2023-27)
- M&F revenue growth of between 6% and 10% (CAGR 2023-27)
- A marginally positive EBITDA contribution from Services to Owners
- EBITDA growth of between 9% and 12% (CAGR 2023-27)
- Recurring free cash flow conversion in excess of 55%
- A shareholder payout of around €3 billion over 2023-2027 including notably a share buy-back program for an amount of around €400 million to be launched during
Dividends
Based on the 2023 results, the dividend distribution policy implemented since 2019 (established on the basis of recurring free cash flow and a payout rate of 50%), and as recommended by the Board of Directors, Accor will submit to the approval of the Annual Shareholders’ Meeting of May 31, 2024 the payment of an ordinary dividend of €1.18 per share.
Events in 2023
Appointments following the Shareholders’ Meeting
The Accor Board of Directors decided to approve the appointment of Anne-Laure Kiechel, independent director. Ms. Kiechel will contribute her extensive knowledge of international geo-economic and financial issues.
The Board of Directors also decided to renew the terms of office of Mr. Sébastien Bazin, Chairman and Chief Executive Officer, Ms. Iris Knobloch, Vice-Chairman of the Board and Senior Independent Director, and Mr. Bruno Pavlovsky, Chairman of the Appointments and Compensation Committee.
Disposal of the remaining stake in H World Group Limited (Huazhu)
On January 18, 2023, Accor announced that it had completed the disposal of the remaining stake in H World Group Limited (previously Huazhu Group Limited) for $460m (including $162m in 2022). This transaction serves to finalize the value creation of the investment initiated in 2016. The total disposal value since 2019 amounts to
$1.2 billion, compared with an initial investment of less than $200 million. This contributes to the asset-light strategy to simplify the Group’s balance sheet. After this transaction, Accor no longer owns any stake in H World Group Limited.
Disposal of the Paris headquarters building to Valesco Group for €460 million
On June 22, 2023, in line with the announcement made on September 28, 2022, Accor announces having successfully completed the disposal of its headquarters building, “Sequana Tower”, for €460 million to the Valesco Group. This transaction was the largest office deal of the year in Continental Europe and the largest office deal in France since 2022.
The transaction structure includes a 12-year sale and leaseback agreement with an initial
annual rent of €22 million, and a subordinated loan of €100 million to the Valesco Group.
Takeover of Potel & Chabot
In October 2023, Accor acquired a 63% stake in the capital of Potel & Chabot, in addition to the 37% already owned by the Group, becoming its sole shareholder. Potel & Chabot is consolidated within the Group’s Luxury & Lifestyle division.
Hybrid bond refinancing
In October 2023, Accor successfully completed a refinancing transaction for its hybrid debt issued in January 2019:
- On October 2, 2023, Accor issued undated hybrid bonds for an amount of
€500 million with a coupon of 7.25%. The issue was four times oversubscribed, reflecting renewed investor confidence in the credit quality and growth potential of the Group;
- On October 10, 2023, Accor announced the finalization of the refinancing of its hybrid debt issued in January 2019 following the success of the buyback offer on an undated hybrid bond tranche (4.375% coupon) for an amount of €442 Pursuant to the terms and conditions of these bonds, the Group exercised its option to redeem the outstanding amounts of these bonds for an amount of €58 million.
€400 million share buyback program
On October 10, 2023 following its S&P rating upgrade to Investment Grade and the successful completion of the refinancing of its hybrid debt issued in January 2019, Accor launched a share buyback program for an amount of €400 million, consistent with the commitment it made to return €3 billion to shareholders over 2023-27. Accor announced the finalization of its share buyback program on December 20, 2023.
Signature of a new bank credit facility for €1 billion
On December 20, 2023, Accor announced it had signed an agreement with a consortium of 13 banks for a new €1 billion revolving credit facility (RCF). This new five-year credit facility has two one-year extension options, which can be exercised in 2024 and 2025, and replaces the €1.2 billion undrawn credit facility concluded in June 2018.
The calculation of the margin is based on three Group performance criteria relative to Environmental, Social and Governance (ESG).
Subsequent events
On January 30, 2024, Accor entered into an agreement with Travel + Leisure to sell Accor Vacation Club, its timeshare business in Australia, New Zealand and Indonesia on the basis of an enterprise value of AUD78 million (€48 million). The agreement also includes an exclusive franchise agreement for Travel + Leisure’s future new timeshares under the Accor brands in Asia Pacific, the Middle East, Africa and Turkey. This transaction is in line with the Group’s “Asset Light” strategy and is expected to be completed by the end of the first quarter of 2024.
Additional information
The Board of Directors met on February 21, 2024 and reviewed the financial statements ending on December 31, 2023. Regarding the approval process for the Group’s financial statements, the statutory auditors have, to date, substantially completed their audit procedures. Their report is currently being prepared. The consolidated financial statements and notes related to this press release are available on the www.group.accor.com website.