The hospitality sector proved resilient in a “contrasting consumer environment” throughout 2024, Accor declared while reporting a 12% rise in annual profits.
The French hotel group said diversification in terms of both geography and segment enabled it to post an even stronger financial performance.
A record €1.1 billion in annual earnings [ebitda] was reported for the year, fuelled by a strong fourth quarter, as the company opened 293 hotels accounting for more than 50,000 rooms – net growth of 3.5% over the previous year.
Accor ended the year with a hotel portfolio of 850,285 rooms in 5,682 hotels and a pipeline of more than 233,000 rooms with 1,381 hotels.
The group, which includes brands ranging from Sofitel and Raffles to Tribe and Ibis, reported revenue up 11% to €5.6 billion in 2024.
The growth was broken down to a 5% increase for its Premium, Midscale and Economy (PM&E) division and 19% for the Luxury & Lifestyle division.
The PM&E division posted a 4% increase in the key metric of revenue per available room (revpar) compared with the fourth quarter of 2023, driven equally by prices and occupancy, Accor reported.
However, both London and the UK provinces posted weak revpar growth during the final three months of the year, in line with the first three quarters of 2024.
Chairman and chief executive Sebastien Bazin said: “Ambition, discipline and high standards are the three pillars that have guided Accor’s actions in 2024.
“They have once again enabled us to post record results, in line with each of the objectives we have set for the group.
“This performance reflects the extraordinary commitment of our teams, the strength of our brands and our digital tools, the renewed confidence of our partners and the efficiency of our organisation based on two autonomous and complementary divisions.
“Thanks to this vigorous growth, we will propose an increased return to shareholders at the next general meeting.
“On these solid foundations, and by continuing to control our destiny, we are approaching 2025 with confidence and the ambition to once again deliver excellent results.”