Accor hotel group’s eyes return to normal as demand rebounds

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The logo of French hotel operator AccorHotels is seen above the company’s headquarters in Issy-les-Moulineaux near Paris, France, February 17, 2021. REUTERS/Gonzalo Fuentes

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  • 2021 EBITDA returns to profit
  • Sees network growth of 3.5% in 2022
  • Sees limited impact of the Ukrainian crisis

Feb 24 (Reuters) – Europe’s largest hotel group Accor (ACCP.PA) said on Thursday it was “on track” to more normal levels of business this year after its core profits returned to lows. profits in 2021, helped by higher absorption of fixed costs.

The travel and hospitality industry is still recovering from the pandemic as European countries plan to ease COVID-19 restrictions due to a drop in coronavirus infections.

Accor, which runs upscale chains Sofitel and Pullman, as well as budget brands like Ibis, said its business started to recover in April despite the impact of the pandemic, leading to a significant recovery in business.

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The rebound came to a halt in January due to the Omicron variant outbreak, but February represented “a turning point”, the French hotelier said.

By the end of 2021, average room rates were approaching or even exceeding pre-COVID-19 levels thanks to improved demand, Accor said.

He reported an impressive recovery in the Middle East region, which benefited from the Expo 2020 World Expo in Dubai.

Deputy CEO Jean-Jacques Morin told reporters the group had seven hotels in Ukraine and about 55 in Russia when asked about the ongoing crisis.

“We will follow the situation last night but the direct impact is very limited,” Morin said.

The group posted earnings before interest, tax, depreciation and amortization (EBITDA) of 22 million euros ($24.69 million), rebounding from a loss of 391 million a year earlier.

The group’s revenue per available room (RevPAR), a key performance indicator for the hospitality industry, was down 46% in 2021 from the pre-pandemic level in 2019, reflecting the resurgence of the COVID-19 pandemic. 19.

For 2022, the group forecasts a net growth of 3.5% of its hotel network against growth of 3% last year.

Accor shares fell more than 2% to around 31 euros at 08:10 GMT while the French SBF 120 index (.SBF120) is down more than 3%.

($1 = 0.8912 euros)

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Reporting by Anait Miridzhanian; edited by Milla Nissi

Our standards: The Thomson Reuters Trust Principles.

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