Accor overcomes ‘volatile political and consumer environment’ in first quarter

Global demand in the hospitality sector remained sustained during a “volatile political and consumer environment” in the first quarter of 2025, Accor reported.

However, London and the UK provinces recorded a decline in the key metric of revenue per available room (revpar), linked to “weak confidence” in the country’s economic situation, the French hotel giant noted.

Overall group revenue rose by 9.2% year-on-year to more than €1.3 billion with revpar up by 5%.

Accor said: “The diversification of the hotel portfolio, in terms of geography and segments, enables the group to report encouraging performances, although subject to the uncertainties of the economic environment.”

Accor plans to acquire 17 management agreements representing 3,200 rooms in a $79 million deal with Royal Holiday Group. The portfolio includes six all-inclusive resorts in Mexico as well as 11 resorts and city hotels in Mexico, Argentina, Puerto Rico and the US.

“This asset-light platform with hotels strategically located in beachfront resort destinations will allow Accor to further increase its brands presence in Americas,” the company said. “With this addition, Accor will accelerate growth in this region, particularly in Mexico and strengthen its all-inclusive resort portfolio.”

Accor is also expanding in India by entering into a partnership with  local travel conglomerate InterGlobe with a target of 300 hotels under Accor brands by 2030.

Accor and InterGlobe will also jointly invest in and become the largest shareholders in Indian budget hotel platform Treebo, which manages 800 hotels across 120 cities. Treebo will take the lead to develop the ibis and Mercure brands in India through a master license agreement. 

Accor opened 45 hotels corresponding to more than 5,900 rooms in the last quarter, representing a net unit growth of 2.7% over the last 12  months, which should accelerate from the start of the second half of 2025. 

At the end of March, the group had a hotel network of 847,290 rooms (5,695 hotels) and a pipeline of more than 235,000 rooms (1,388 hotels).

Chairman and chief executive Sebastien Bazin said: “Accor has once again posted dynamic growth in its business this quarter, driven by continued strong demand. 

“Our diversified geographic positioning and leadership in the most promising markets, combined with the strength of our attractive and distinctive brands, enable us to continue to grow in a more volatile geopolitical and economic environment. 

“In this context, while maintaining strong operational discipline, we are pursuing our strategy of development and value creation and are confident in our ability to continue improving our performance.”