Accor (AC) Q1 2025 TU earnings summary

Executive summary

• Group revenue rose 9.2% year-over-year to €1,349 million in Q1 2025, driven by strong demand, pricing, and diversified geographic presence.

• RevPAR increased 5.0% like-for-like, with notable growth in India, Mexico, and the Americas.

• Net unit growth reached 2.7% LTM, with pipeline up 4.9% and acceleration expected in H2 2025.

• Luxury & Lifestyle division outperformed, reflecting strong brand positioning and resilience.

• Portfolio expansion and balance sheet strengthening continued, including a €600 million senior bond issuance and €200 million share buyback tranche.

Financial highlights

• Total Q1 2025 revenue: €1,349 million, up 9.2% year-over-year; Management & Franchise revenue up 9.3% to €321 million.

• Luxury & Lifestyle segment revenue up 17.9% to €668 million; Premium, Midscale & Economy up 1.8% to €703 million.

• Like-for-like revenue growth was 8.0%, with a 2.0% perimeter effect and -0.8% currency impact.

• RevPAR systemwide up 5.0% year-over-year; occupancy rate 60.9%, average room rate €113.

• Scope effects (notably Rikas acquisition) contributed €28 million; currency effects had a €9 million negative impact.

Outlook and guidance

• Net unit growth expected to accelerate in H2 2025, with full-year NUG above 2024.

• Guidance for RevPAR growth remains at 3%-4% for the year.

• April and May bookings trending better than March, with no significant changes in demand trends.

• Visibility beyond May is limited due to short booking windows.

• Focus remains on strict cost management and delivering 2023-2027 targets.