Accor: a return to sustainable growth

After the unprecedented collapse brought on by the pandemic

Accor has demonstrated remarkable resilience and an impressive capacity for transformation. Between 2019 and 2024 the group shifted from being an asset‑heavy hotel owner‑operator to operating as a global platform of franchise and management contracts, while at the same time increasing its exposure to the up‑market segment. The 2024 financial year completes that metamorphosis: revenue reached €5.606 billion, a rise of 39 % versus 2019 and 11 % year‑on‑year.

Post‑crisis rebound and revenue momentum

The recovery rests first on the rebound in RevPAR, now above its pre‑crisis level thanks to deliberately robust pricing in European capitals and the controlled closure of less profitable capacity. Meanwhile, the Luxury & Lifestyle division—which houses brands such as Raffles, Fairmont and Ennismore—saw its contribution soar from 23 % to almost 30 % of revenue between 2019 and 2024, powering the group’s organic growth.

The pace of openings confirms the resurgence in demand. In the first quarter of 2025 alone, 45 additional properties—representing 5,900 rooms—joined the network, lifting the global pipeline to more than 235,000 rooms, i.e. over a quarter of the rooms already in operation.

“Asset‑light” transformation and margin improvement

The pivot to a predominantly asset‑light model is the cornerstone of operational performance. By replacing capital‑intensive leases and owned real estate with franchise or management agreements, Accor has lowered its breakeven point and amplified operating leverage.

Up‑market shift and geographic diversification

A key value‑creation driver has been the portfolio’s move up‑market. Luxury and lifestyle brands have posted double‑digit average annual growth since 2021, versus mid‑single‑digit growth in the economy segment. This shift raises the average daily rate per room and strengthens loyalty through the ALL programme, which now boasts more than 105 million active members.

Geographically, the group continues to rebalance its footprint. Europe—its historical heartland—now accounts for just 46 % of rooms in operation. Asia‑Pacific and the Middle East, buoyed by the swift rebound of intra‑Asian tourism and major urban projects in the Gulf, host the bulk of the pipeline, while North America is being pursued selectively through high‑profile local franchises.

Key risks

Even with stronger fundamentals, Accor must contend with several external constraints. First, rising energy and labour costs could erode franchisees’ profitability, reducing the variable fees paid to Accor. Second, the still‑significant European concentration exposes the group to any regional economic slowdown. Finally, the ecological transition—though a source of competitive advantage (energy‑efficiency labels, property renovations)—also poses a risk of unanticipated cost overruns if regulations tighten.

Medium‑term catalysts

Among the factors likely to fuel growth, the pipeline provides visibility on the addition of profitable capacity, with a high proportion of long‑term, capital‑light contracts. Global events such as the Paris Olympic Games generate episodic but high‑margin demand in destinations—especially Paris—where Accor dominates supply. Finally, the continuation of share buy‑backs, funded by a sustainably positive free cash flow, supplies mechanical support to earnings per share without compromising financial leverage.

Conclusion

In just five years, Accor has profoundly reshaped its business model, moving from a capital‑intensive profile to a global brand platform that generates recurring cash flows. Revenue growth, margin recovery and lower leverage attest to the group’s renewed strength. The lingering discount to peers reflects less an operational lag than a footprint still viewed as cyclical and caution over cost inflation. Looking toward 2025, the combination of a substantial pipeline, a more premium brand mix and continued financial discipline should cement the sustainable growth path on which the French hotel group has embarked.

You will find a presentation file on Accor attached.

Accor 2024.pdf

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