By Angela Green, Content Executive, H&C News: Accor announce significant improvements in profitability and cash flow H1 2022.
The Group’s business rebounded significantly in H1 2022 after two years of major pandemic-related disruptions in the tourism and hospitality industry.
In Q2 2022, activity recovered to levels close to, if not above, the 2019 levels in almost all of our geographies.
The only laggards (Accor’s choice of word) were China, which is impacted by travel restrictions as part of its strict enforcement of a “zero-Covid” policy, and South East Asia, which is highly dependent on Chinese visitors.
This rebound reflects both the recovery of the number of business and leisure domestic guests, and border reopenings which accelerated the return of international travellers. It was accompanied by a sharp increase in prices, driven by demand and emphasized by inflation.
During first-half 2022, Accor opened 85 hotels, representing 11,700 rooms, i.e., net system growth of 1.8% in the last 12 months. At end-June 2022, the Group had a hotel portfolio of 777,945 rooms (5,300 hotels) and a pipeline of 212,000 rooms (1,215 hotels).
For 2022, the Group is confirming its forecast of net unit growth in the network of around 3.5%.
Consolidated revenue
The Group reported H1 2022 revenue of €1,725 million, up 97% like-for-like compared with H1 2021.
By activity, this growth breaks down into a 119% increase for HotelServices and 57% for Hotel Assets & Other.
To provide a comparison with RevPAR (change presented versus 2019 throughout this release), the like-for-like decline in revenue versus H1 2019 is 10%.
Changes in the consolidation scope, mainly due to the consolidation of Ennismore, and the reopening of Pullman Montparnasse contributed positively by €31 million.
Currency effects had a positive impact of €69 million, mainly due to the US dollar (9) %.
Everyday accuracy aligned to Institute of Hospitality Golf Day, in Partnership with Caterer.com