Accor (AC) H1 2024 earnings summary

Executive summary

• H1 2024 saw revenue rise 11% to €2,677M, EBITDA up 13% to €504M, and EPS up 11% to €0.90, exceeding guidance.

• RevPAR increased 6% year-over-year, with Q2 at 4.8%; net unit growth reached 4.1% LTM, driven by expansion in growth geographies.

• Strong performance across all regions and brands, with notable momentum in luxury and lifestyle segments.

• Nearly €700 million returned to shareholders via buybacks and dividends, yielding 7.9%.

• Major partnerships and asset-light strategy developments, including LVMH collaboration and sale of Accor Vacation Club.

Financial highlights

• Group revenue up 11% to €2,677M; Premium, Midscale & Economy division up 4%, Luxury & Lifestyle up 22%.

• EBITDA increased 13% to €504M; EBITDA margin stable at 19%.

• Net profit reached €253M in H1, up from €248M prior; EBIT increased to €345M.

• Recurring free cash flow at €120M, with a cash conversion rate of 24%.

• Net debt stood at €2,934M at June-end, up mainly due to shareholder returns and acquisitions.

Outlook and guidance

• FY 2024 guidance: RevPAR growth of 4–5%, net unit growth of 3–4%, EBITDA of €1,095–1,125M (+9–12% YoY), and positive Services to Owners contribution.

• Medium-term targets reaffirmed: annual RevPAR growth of 3–4%, net unit growth of 3–5%, M&F revenue growth of 6–10%, EBITDA growth of 9–12%, and €3B shareholder returns by 2027.

• Net unit growth guided at 3–4% for 2024, reflecting strong H1 and higher churn in H2.

• Services to Owners expected to remain positive; continued strong pipeline and signings.