Accor has recorded a “record-high level” consolidated EBITDA of €1bn (£86m), up 49% in FY23.
According to the hotel group, the performance stemmed from the strong recovery in revenue and strict discipline in costs of services to owners, enabling it to post marginally positive EBITDA for the period as expected.
For the period ending 31 December 2023, the group’s RevPAR increased 23% and revenues were also up 18% LFL to €5.05bn (£4.33bn) in 2023, compared with 2022.
This growth breaks down into a 17% increase in revenues to €3bn (£2.57bn) for the Premium, Midscale and Economy (PM&E) division and a 22% increase to €2.2bn (£1.88bn) for the Luxury and Lifestyle division.
The “solid” performance and the group’s confidence in continued business growth enabled it to return a total of €676m (£578.9m) 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).
Sébastien Bazin, chairman and chief executive officer of Accor, said: “Accor generated record-high results in 2023, with EBITDA breaking the €1bn 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 organisation 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.”
Bazin added: “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.”