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Sébastien Bazin, Chairman and Chief Executive Officer of AccorHotels, said: The first half of 2018 saw AccorHotels continue the deep-seated transformation of its business model, with the sale of a majority stake in the capital of AccorInvest, the integration of Mantra in Australia and Mantis in South Africa, and the acquisition of Gekko in France. The second half of the year will see Mövenpick in Middle East, Atton in South America and sbe in the US join our network, enabling us to consolidate our market shares and the vast array of choices we offer our customers. The Group’s strong operating performance delivered solid results in first-half 2018 and record organic growth with the opening of 20,000 rooms over the period. Today, AccorHotels operates more than 4,500 hotels and 650,000 rooms around the world, the majority of which are located outside Europe. Underpinned by a reinforced pipeline, the Group’s strong prospects mean it is firmly on track to achieving its medium-term targets.

AccorHotels benefited from solid business levels in most of its key markets in the first half of 2018. With the opening of 45,150 rooms (301 hotels) during the period, of which 19,757 through organic growth and 25,393 via the acquisitions of Mantra and Mantis, at June 30, 2018 the Group had a portfolio of 652,939 rooms (4,530 hotels) and a pipeline of 167,000 rooms (959 hotels), of which 79% in emerging markets.

Strong growth in revenue

Consolidated revenue for the first half amounted to €1,459 million, up 8.0% like-for-like and 3.0% as reported compared with first-half 2017.

Reported revenue for the period reflects:

  •  Changes in the scope of consolidation (acquisitions and disposals) and the positive contribution of €42 million (+3.0%) linked to the acquisitions of VeryChic, Availpro, Mantra, Mantis, Gekko, ResDiary and Adoria.
  • Currency effects and the negative impact of €113 million (8%) primarily linked to the US dollar (-€63.2 million), the Australian dollar (-€17.6 million), the Brazilian real (-€15.3 million) and the Turkish lira (-€4.1 million).

HotelServices reported business volumes of €8.9 billion, up 10.3% at constant exchange rates, and revenue of €1,205 million, up 6.8% like-for-like thanks to healthy growth and the fast pace of development.

HotelServices Management & Franchise (M&F) revenue amounted to €433 million, a like-for-like increase of 6.8% that reflects the solid growth seen in most of the Group’s key markets.

Revenue from HotelServices M&F by region

Robust business levels drove revenue growth in Asia-Pacific (+10.0%), North America, Central America & the Caribbean (+15.9%), South America (+9.0%) and Europe (+4.2%), while the Middle East & Africa region recorded a slight decline (-0.2%), primarily attributable to the Gulf region.

HotelServices RevPAR rose by 5.1% overall, reflecting gains in all segments: Midscale (+5.4%), Economy (+5.2%) and Luxury/Upscale (+4.6%).

In Europe, M&F revenue was up 4.2% on a like-for-like basis, underpinned by a 5.4% increase in RevPAR thanks to higher average room rates.

  •  RevPAR in France rose by 5.6% on the back of strong growth in Paris (+9.5%). The capital benefited from the best occupancy rates (+3.3 points) and much higher room rates (+4.6%) as a result of an influx of foreign tourists.
  • RevPAR in the United Kingdom climbed by a moderate 1.3%, with the provinces driving growth (+2.1%). These results reflect an improvement in the second quarter, following a slight decline in RevPAR in the first three months of the year.
  • Germany recorded a 1.5% increase in RevPAR for the first half, thanks primarily to a favorable trade fair calendar in June, including in particular the International Metallurgical Trade Fair (METEC) and the World Exhibition Congress on Chemical Engineering (ACHEMA).
  • The very favorable RevPAR trends seen in Eastern Europe continued during first-half 2018, with a 6.2% gain overall.

The Asia-Pacific region performed very well, turning in growth of 5.0% in RevPAR and 10.0% in M&F revenue.

With RevPAR down a slight 0.3%, the Middle East & Africa region posted stable M&F revenue (-0.2%).

of 15.9% in M&F revenue. The region’s RevPAR (+4.8%) reflected very robust activity in Canada (+7.5%), with strong growth in both the Leisure and Business segments. Lastly, the situation continued to improve in South America, with RevPAR up 11.5% for the region. The increase was driven by business growth in Brazil, despite the strikes that paralyzed the country in May and the situation in Rio, which continued to be affected by a depressed socioeconomic environment and the overcapacity generated by the Olympic Games.

Organic development reached new record levels in the first half of 2018. Excluding acquisitions, AccorHotels opened 135 new hotels during the period, representing a total of 19,757 rooms. The future also looks very promising, thanks to a pipeline of 959 hotels and 167,000 rooms at June 30, which is a sharp increase on the end of the first quarter (157,000 rooms).

Services to Owners revenue, which includes the sales, marketing, distribution and loyalty division, as well as shared services and the repayment of hotel personnel costs, came to €773 million, versus €788 million at end-June 2017.

See more information : AccorHotels_PR_H12018Results