Accor (AC) H1 2025 earnings summary

Executive summary

• Delivered solid growth in H1 2025 despite macroeconomic, geopolitical, and FX headwinds, supported by a diversified portfolio and strong loyalty program contributions.

• Revenue grew 2.5% to €2,745 million (5.1% at constant currency), with recurring EBITDA up 9.4% to €552 million and recurring free cash flow up 13.3% to €136 million.

• Net profit was €233 million, down from €253 million prior year due to asset sales, but up 19% when adjusted for Essendi.

• Opened 117 hotels (15,000+ rooms), achieving 1.9% net unit growth over 12 months; total portfolio at 5,740 hotels and 854,695 rooms.

• €503 million returned to shareholders via dividends and share buybacks in H1 2025.

Financial highlights

• Group revenue up 2.5% to €2,745 million (+5.1% at constant currency); recurring EBITDA up 9.4% to €552 million (+13.5% at constant currency); recurring free cash flow up 13.3% to €136 million.

• Net profit at €233 million, diluted EPS at €0.80, both down from prior year due to asset disposals.

• LTM net unit growth reached 1.9%, with pipeline up 10.7% year-over-year, expected to accelerate in H2.

• Recurring free cash flow conversion rate at 25%.

• Net debt increased to €3,096 million as of June 2025, up from €2,495 million at December 2024.

Outlook and guidance

• FY 2025 guidance: RevPAR growth of 3–4%, net unit growth around 3.5%, and recurring EBITDA growth of 9–10% at constant currency.

• Reported recurring EBITDA for FY25 expected to be negatively impacted by approximately €60 million due to FX rates.

• H2 expected to be softer due to Olympic comps and marketing spend phasing, but full-year EBITDA to be in line or slightly above prior year.

• Second tranche of €240 million share buyback to commence in H2.

• 2026–2027 growth targets reaffirmed.