Accor (AC) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 revenue reached €1.313 billion, up 2.3% at constant currency, with RevPAR rising 5.1% year-over-year despite Middle East disruptions.

• Net unit growth was 3.8% LTM, with a 10.3% increase in the development pipeline and strong demand in Europe, Southeast Asia, and Brazil offsetting Middle East declines.

• Announced MoU for sale of S&D/Essendi stake for up to €975 million and launched a €450 million share buyback program, with €225 million already initiated.

• Group revenue increased 2.3% at constant currency and 3.8% at constant scope and currency; management and franchise revenue grew 8.3%.

• Strong performance across most regions, with only some GCC countries underperforming due to the Iran conflict.

Financial highlights

• Group revenue for Q1 reached €1.313 billion, up 2.3% at constant currency; reported revenue decreased 2.7% due to FX impacts, mainly from the USD, AED, and CAD.

• Management and franchise revenue up 8.3% at constant currency; Luxury & Lifestyle up 15.2%, Premium, Midscale & Economy up 4.3%.

• SMDL revenue up 6.2% at constant currency.

• Hotel assets and other revenue down 4.4% at constant currency, but up 3.3% like-for-like excluding disposals.

• Incentives accounted for 31% of management and franchise fees in Q1.

Outlook and guidance

• Management remains confident in delivering improved performance in 2026, with consensus for RevPAR (2.3%) and EBITDA (approx. 6% growth at current rates) for the full year.

• H1 EBITDA expected to be up year-over-year; SMDL margin expected to remain at 6%+ for the year.

• Too early to confirm full-year net unit growth, as most openings occur in Q4.

• Profit protection plan activated to safeguard margins.

• Growth algorithm remains intact despite ongoing Middle East conflict.